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Financing Education Financing Education Beyond Beyond High SchoolHigh School 2012-132012-13

Danville Schools

College Costs:

BCTC $11,160 Western $18,489 Louisville $21,726 Kentucky $22,260 Georgetown $40,480 Transylvania $39,800 Centre $45,100

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What is Financial Aid?

Financial aid is funds provided to students and families to help pay for college.

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Two Categories of Financial Aid

Merit-based

Need-based

2

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Types of Financial Aid)

Scholarships (Merit-based)

Grants (Need-based)

Loans (Need-based)

Employment opportunities (Need-based)

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Grants

Usually awarded on the basis of financial need

Money that does not have to be paid back

Must apply every year: (FAFSA)

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MERIT-BASED AIDMERIT-BASED AID

Scholarships:Money that does not have to

be paid backTest Scores: ACT/SATSpecial Skills or TalentsGPA and other factors

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Loans

Money students and parents borrow to help pay for college expenses

Money that does have to be paid back—usually after end of college

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Employment

Allows student to earn money to help pay educational costs—jobs on college campus

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Goal of Financial Aid

Primary goal is to assist students in paying for college and is achieved by:

Evaluating family’s ability to pay for educational costs

Distributing limited resources in an equitable manner

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To the extent they are able, parents have primary responsibility to pay for their dependent children’s education

Students also have a responsibility to contribute to their educational costs

Families should be evaluated in their present financial condition

Principles of Need Analysis

6

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FACTORS CONSIDERED IN NEED ANALYSISFACTORS CONSIDERED IN NEED ANALYSIS Income Asset Equity (excludes home) Family size Number of children in college

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What is Financial Need?

Cost of Attendance (COA)

– Expected Family Contribution (EFC)

= Financial Need

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Cost of Attendance

Tuition and fees Room and board Books and supplies,

transportation Study abroad costs Varies widely from college to

college

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Need Varies Based on Cost

X

Y

Z

Cost of Expected Family NeedAttendance Contribution (Variable) (Variable) (Constant)

1

2

3

EFC EFC

4

FAFSA

Free Application for Federal Student Aid

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Free Application for Federal Student Aid (FAFSA)

A standard form that collects demographic and financial information about the student and family

File electronically--filed no earlier than January 1

WWW.FAFSA.GOV

Click Here >

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FAFSA on the Web: www.fafsa.gov

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FAFSA on the WebFAFSA on the Web

Built-in edits to prevent costly errors

More timely submission of original application and any necessary corrections

Electronic

FAFSA on the Web

Website: www.fafsa.gov

2013–14 FAFSA on the Web available on January 1, 2013

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

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OLD PAPER FAFSA

FAFSA was an 8-page booklet containing:

•General instructions for completing the form;

•97 questions,

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Completing the FAFSA GENERAL NOTES

Review instructions carefully before starting Collect documents you’ll need

(tax returns, bank statements, investment summaries, etc.)

Make it a joint effort (student and parent share responsibility)

“FAFSA on the Web” is faster!

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Student Financial Aid:Personal Identification Number

To Register for a PIN (today):

www.pin.ed.gov Sign FAFSA electronically Can request PIN before Jan. 1 May be used by students and

parents, including subsequent school years

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Where Do I Go From Here? Obtain and review admission and financial

aid materials from each school to which you are applying

Meet all application deadlinesComplete FAFSA Investigate other sources of aid

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Senior Calendar (FALL)

Go online and request admission information from colleges

Meet college admission representatives at DHS or college fair

Make a college visit (Educational Opp.Form—Mrs. Hawkins)

Complete all applications ON TIME Check for scholarships

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Recommendations Give a resume, web address and

deadlines to each recommender Decide upon people you plan to

ask for recommendations (early) Keep organized! Put all application

deadlines on a calendar Do Not Procrastinate

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DHS Scholarship Search

Internet:http://www.danvilleschools.net

Scholarship binder on the counter in the counseling office

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DHS Scholarship Search

www. kheaa.com

(access information about KEES award)

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Private Scholarship SearchFree Internet scholarship search engines: FinAid on the Web: www.finaid.org College Board: www.collegeboard.com FastWeb: www.fastweb.monster.com Scholarship Resource Network Express:

www.srnexpress.com GoCollege: The Collegiate Websource:

www.gocollege.com

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Private Scholarship Search

Internet:College Board’s Scholarship

Search

www.collegeboard.com/payingFastWeb Scholarship Search

www.fastweb.com

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Private Scholarship Search Local library resources

Local businesses and civic organizations

Parents’ places of employment

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Avoid Being ScammedTo check legitimacy of scholarship search

services or individuals, for information about financial aid scams, and tips to avoid being scammed visit these Web sites:

U.S. Department of Education: www.studentaid.ed.gov/students/publications/lsa/index.html

Federal Trade Commission: www.ftc.gov/bcp/conline/publs/alerts/ouchart.htm

Better Business Bureau: www.bbb.com

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KEES GPA Amount

2.5 $ 125 2.75 $ 187 3.0 $ 250 3.25 $ 312 3.50 $ 375 3.75 $ 437 4.0 $ 500

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KEES ACT Amount

15 $ 36 18 $ 143 20 $ 214 22 $ 286 24 $ 357 28+ $ 500

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Questions/Answers? School Policy regarding

school visits? www.campustours.com

Early Decision and Early Action?

ACT/SAT help? KEES Scholarships?

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Independent Student Definition At least 24 years old by December 31 of award

year covered by the FAFSA; Graduate or professional student; Married; Has children or dependents (other than a

spouse) for whom the student provides more than half support;

Orphan or ward/dependent of the court; Veteran of U.S. Armed Forces; or Determined to be “independent” by financial aid

administrator based on unusual circumstances

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Early Action/Early Decision

Early Decision is a contract between you and the college.You agree that if the the college accepts you, you’ll withdrawall other applications and attend their early decision college. You can only apply early decision to only one college.

Early Action—you do not have to commit to attendingthe college. You just send your application in earlier,and the college sends you its decision earlier.

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Federal Pell Grant Awarded to eligible undergraduates

Actual award amount based on Cost of Attendance, Expected Family Contribution (EFC), and enrollment status

Maximum award for 2011-2012 = $5,550

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Federal Work-Study

Undergraduate or graduate students are eligible Employment may be on or off campus Eligible employers

SchoolFederal, state, or local public agencyPrivate nonprofit organizationFor-profit organization

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Federal Perkins Loan Eligible students

Undergraduate or graduate students Priority to students who show exceptional

need Loan amount varies Maximum annual loan

$4,000 undergraduate students

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Stafford Loans (Subsidized and Unsubsidized)

Subsidized Stafford: Must demonstrate “need” Unsubsidized Stafford: Need is not a consideration Base annual loan limits (combined subsidized

and unsubsidized)

$3,500 for 1st year undergraduates

$4,500 for 2nd year undergraduates

Fixed Rate interest 6.8 percent

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PLUS Loans

Loan program for parents of undergraduate students Annual loan limit: COA minus other aid

Fixed Rate interest

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Other Sources of Funds State grants, scholarships, loans, and work

programs

School need-based and non-need-based programs

Academic, athletic, and other talent-based scholarships and grants

Private business scholarships

Civic organization scholarships

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ACT/SAT

www.act.org www.collegeboard.com

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The Official SAT Question of the Day™

Get an official SAT question delivered to your email inbox for free!

http://www.collegeboard.com/apps/qotd/question

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ACT 2011-12 Test Date Deadline Sept. 10 Aug. 12 Oct. 22 Sept 16 Dec 10 Nov. 4 Feb. 11 Jan. 13 Apr.14 Mar. 9 June 9 May 4

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175 minutes / 215 Questions

Divided into 4 sectionsEnglishMathReadingScience Reasoning

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English

75 Questions—45 minutes Grammar (12) Punctuation (10) Sentence structure (18) Organization

No spelling or vocabulary

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Math

60 questions—60 minutes Pre-Algebra/ elementary (20) Intermediate Algebra (square

root, factoring, graphing (20) Geometry (area, angles,

volume) and Trigonometry (4)

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Reading

Four Reading passages of 750 words each

Fiction, social science, humanities, natural science

10 Questions 40 questions—35 minutes

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Science Reasoning

40 questions—35 minutes No formulas 6 sets of scientific

information in graphs, charts, tables,

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Hints:

Answer all questions—no penalties

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Good Luck!