Financing Education Beyond High School

Applying for Financial Aid

• ALL colleges will require the Free Application for Federal Student Aid (FAFSA)

• Some schools may also request the “PROFILE” application from College Scholarship Service (CSS) to award institutional aid/scholarships

• Submit the Free Application for Federal Student Aid (FAFSA) prior to school’s deadline

• FAFSA must be submitted annually (January/February is best)

• Most aid awarded on a “first-come, first-served” basis

• To ensure maximum consideration for federal, state, and institutional aid, contact each school to ask about their:– Required application materials – Application deadlines

Application Process

• Collects family’s personal & financial information in order to determine a student’s Expected Family Contribution (EFC)

• May file FAFSA in one of two ways:

– Electronically via FAFSA on the Web (preferred method)

– Paper FAFSA

FAFSA

PIN Registration for Electronic Signature

• Web site: www.pin.ed.gov• Sign FAFSA electronically• Can request PIN before January 1, 2011• Not required, but speeds processing• May be used by students and parents throughout

aid process, including subsequent school years

PIN Registration for Electronic Signature

• Web site: www.fafsa.ed.gov– 2011-2012 FAFSA on the Web available on

January 1, 2011– FAFSA on the Web Worksheet:

• Used as “pre-application” worksheet• Questions follow order of FAFSA on the Web

FAFSA on the Web

General Student Eligibility Criteria

• Must be U.S. citizen or eligible non-citizen• Must be pursuing degree, certificate, or other

recognized credential• Must be registered with Selective Service (if

male and required)• Eligibility may be suspended or terminated due

to drug-related conviction• Must meet Satisfactory Academic Progress

requirements

Satisfactory Academic Progress (SAP)

Schools are required to have a SAP policy which monitors successful progress towards graduation:

• Qualitative (GPA) requirement• Quantitative (course completion) requirement• Maximum timeframe for each degree

FAFSA Questions – Six Steps

• Step One – Student information: name, address, SSN, marital status, citizenship status, etc.

• Step Two – Colleges to receive the FAFSA results

• Step Three – Dependency Questions

• Step Four – Parent information: name, SSN, marital status, 2010 income, assets, # in household, # in college, etc.

• Step Five – Student income and asset information

• Step Six – Signatures (PIN for student and PIN for parent) and application submission

FAFSA Questions – Six Steps

• At least 24 years old by December 31st of the award year covered by the FAFSA (born before January 1, 1988)

• Married (at the time of application)• Will be in a Master’s or PhD program in 2011-2012• On Active Duty in the U.S. Armed Forces for purposes

other than training• Is a Veteran of the U.S. Armed Forces• Has children or legal dependents other than a spouse for

whom the student provides more than half of their support in 2011-2012

FAFSA Questions: Dependency Status

• Both parents are deceased• At age 13 or older, student was in foster care or was

a dependent of the court (ward of the court)• Is an Emancipated Minor as determined by a court• Is in a Legal Guardianship (court approved)• Is an “Unaccompanied Youth” (homeless)• Determined to be “independent” by the financial aid

administrator based on unusual circumstances

FAFSA Questions: Dependency Status

Frequent FAFSA Errors

• Parent and Student Social Security Numbers

• Divorced/remarried parent information• Untaxed income (401k/403b & child

support received for all family members)• U.S. income taxes paid (not withheld)• Missing signatures (PIN)

Special Circumstances

You may request a re-evaluation of a processed FAFSA due to:

• Loss of employment• Loss of untaxed income or benefits (such

as child support, unemployment, etc.)• Separation or divorce• Unusual uninsured medical or dental

expenses

What Happens After I Submit the FAFSA?

• The FAFSA is processed by the Department of Education

• The Expected Family Contribution (EFC) is determined

• Results are sent to the student (via email) and the schools listed on the FAFSA

What is the Expected Family Contribution (EFC)?

• Calculated using the FAFSA data and a federal formula

• EFC is a measure of the family’s financial strength and what they can “reasonably be expected to contribute” towards the educational expenses in 2011-12

• Stays the same regardless of college

Cost of Attendance

• Tuition and Fees

• Room and Board (on campus or off)

• Books and Supplies

• Transportation

• Personal Expenses

Definition of Need

Cost of Attendance (COA)

(minus) Expected Family Contribution (EFC)

= Financial Need

Role of the Financial Aid Office

• Determines eligibility for financial aid• Packages (awards) financial aid• Sends an award notification* which includes:

– Programs and amount from each program for which the student is eligible

– How and when aid will be disbursed– Terms and conditions of student’s award(s)

* May be sent by letter or E-mail notification

Types of Funding

• Grants – gift aid, generally based on need

• Scholarships – gift aid, generally based on academic achievement or special talent

• Loans – must be repaid

• Work Study – employment, student earns money to help with educational expenses

The FAFSA is required for: Federal Grants

• Pell Grant ($5,550 max award 2010-11)

• Supplemental Educational Opportunity Grant (SEOG) ($4,000 max award)

• Teacher Education Assistance for College and Higher Education (TEACH) Grant ($4,000 max award)

FAFSA also required for:Work Study & most loans

• College Work Study• Perkins Loan• Stafford Loans• Some scholarships depending on the

school policy• State need-based aid

Subsidized and Unsubsidized Direct Stafford Loans

Student Borrower (no co-signer or credit history required)

• Subsidized: Must demonstrate “need”– No interest during in-school period, 3.4% in

repayment• Unsubsidized: Need is not a consideration

– Interest at 6.8% is paid by student or allowed to capitalize

• Repayment begins 6 months after graduation

Parent PLUS Loan

Parent is Borrower

• Annual loan limit: cost of attendance minus student financial aid

• Fixed interest rate of 7.9%• Repayment may begin 60 days after loan is fully

disbursed or can be deferred if requested by parent

State of Michigan Programs

• Michigan Competitive Scholarship– Based on ACT score and financial need– FAFSA filing deadline March 1, 2011– Maximum award in 2010-11 is $600– Renewable with a 2.0 college GPA and

continued financial need

www.michigan.gov/studentaid

State of Michigan Programs

• Michigan Educational Trust (MET)– Prepaid college tuition plan that locks in future tuition

rates at in-state public colleges at current prices– www.michigan.gov/studentaid or 800-MET-4-KID

• Michigan Educational Savings Program (MESP)– Investment program for college costs– www.misaves.com or 877-861-MESP

Institutional Scholarships

Contact schools to determine their application requirements

– Sometimes an application is required– May want an essay from the student– May require a FAFSA to determine “need”– May require an audition or portfolio

Avoid Being Scammed

• The scholarship is guaranteed or your money back

• You can’t get this information anywhere else• I just need your credit card or bank account

number to hold this scholarship• We’ll do all the work• The scholarship will cost some money• You’ve been selected by a ‘national foundation’ to

receive a scholarship or you’re a finalist in a contest you never entered

Next Steps - Summary

• Obtain and review admission and financial aid materials from each school being considered

• Meet all application deadlines• Complete FAFSA and any additional

application materials, such as the College Scholarship Service’s PROFILE application

• Investigate other sources of aid

College Goal Sunday

Sunday, February 13, 2011 2:00 – 4:00 p.m.

Some of the Host Sites:– Eastern Michigan University– Oakland Community College– U of M Dearborn– Baker College of Jackson– U of M Flint– Monroe Community College

http://www.MICollegeGoal.org/(Sign up for a reminder & entry for a laptop)

LAST ONE! Websites:

• www.FAFSA4caster.ed.gov – FAFSA4caster for an early introduction to the FAFSA & estimated results

• www.emich.edu/finaid - PowerPoint Presentation Financing Education Beyond High School

• www.fastweb.com – scholarship search

• www.collegeboard.com – Search & Planning

• www.studentaid.ed.gov – U.S. DOE info

• www.finaid.org/calculators/ - EFC estimator, search and planning