General Information for Students & Parents for Financing Post High School Education

Financial AidSeniors 2015

PAYING FOR COLLEGE & VO-TECH✕ Typically students pay for their post high school education through savings they have, working their way

through school, earning scholarships (for good grades, test scores, activities), having parents help them and by applying for grants & loans. Most students have to use a combination of methods to be able to pay for their schooling at the next level.

✕ As students you have been told many times about the great benefits for those who go on to school and earn a certificate or degree. We know from statistics that on the average, the more education a student has, the better the chance of finding a job and the higher the earning power they will have in their career.

✕ One of the biggest discussion items in the conversation between students and parents regarding plans after high school now is the cost of earning a degree and what is feasible and what is not.

✕ Our goal is to help get you good information and answers to your questions as you are making decisions. A good student goal depending on your own personal timeline is to be able to set down with your folks and lay out the offers and options you have from the schools you are interested in attending sometime early in the 2nd semester. This type of discussion will help you in making your final decision of where you will go or if the decision is do I go to work or go to school.

✕ The following pages have the highlights of the Financial Aid process for you and your folks to look over. Financial Aid is simply another option for you to consider using. It is not mandatory to complete a FAFSA unless required by a specific school or program.

What is financial aid?

Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses. It may come from the Government, the State or the school you attend. One of the beliefs our country was founded upon was that everyone should have an opportunity to continue their education to the level they want and those who could not afford it could have some financial help available. Financial Aid comes in the form of scholarships, grants, loans and work study programs or employment.

RESOURCES TO HELP UNDERSTAND FINANCIAL AID

-MORE INFORMATION is available …-FREE printable FACT SHEETS are available online www.studentaid.ed.gov/pubs

-Some common myths that prevent students from applying for financial aid but shouldn’t are:

-My parents make too much money!-Only students with good grades get financial aid!-The form is too hard to fill out!

-You have to apply in order to find out what you qualify for. Until you apply you really don’t know.

RESOURCES (CONT.)Why consider completing the FAFSA and why should I

complete it online?

❑Many schools, Programs and/or Scholarships may require it or strongly recommend completing it. Filling out the FAFSA form isquick, easy, accurate and safe. Financial Need is determined by using the FAFSA data (FAFSA stands for the Free Application forFederal Student Aid) you submit to the government who in turnsends the your information to the school(s) you are looking at.

❑Make sure you use the correct website www.FAFSA.ed.gov Other websites with financial aid help may charge you.

❑Financial Aid may be your only source for continuing your education. Please consider checking it out.

❏ Again, filling out the FAFSA is not mandatory but recommended. This is why so many of the recruiters you talk to tell you to make sure you fill it out. It is a student/parent decision. Please talk to your folks about it!

RESOURCES FOR YOUR HELP

❑ I can help on some FAFSA questions as a resource but not all. Most parents will share with me how easy it is to fill out the FAFSA once their taxes are complete. It becomes as simple for them as having the tax document in front of you and checking the correct line of the tax form and input of the data to the FAFSA form. It has become so much easier too since the government has an option to check a box to automatically upload your tax return information for you. It becomes real difficult to make a mistake then on the dollar amounts.

❑ I typically tell all students my best resource and one of their best resources for

students and parents is the financial aid office and the financial aid administrator at the institution the student is seeking admittance and an award letter from. They have always been of great help to me and our students/parents in the past when questions have came up. Don’t hesitate to use them.

❑ I have also had some parents share with me that they have received help from whoever

they have do their taxes. Typically, once a parent and student have been through the process one year they have it figured out for all the years of their education and any other members of the family too.

TYPES OF FINANCIAL AID

ScholarshipsStudent Commitment of time & effort for scholarship money. Academic or Activities.

GrantsNeed based money students do not pay back.

LoansMoney borrowed now with the goal of attaining a degree & job to be able to pay back at a later date. Investing for your future. The key here is to not go so far in debt that when you get the job you seek you can afford to live and pay bills. Sometimes college loans and repayment can get out of control.

EmploymentWork either on campus/off campus to supplement a students income.

FAFSA EligibilityTo complete the FAFSA you need to …..

❖ Be a US citizen or an eligible non-citizen❖ Have valid SSN❖ Maintain satisfactory academic progress in a postsecondary

institution (SAP) (good grades as defined by the institution)❖ Show the student qualified for postsecondary education with

a HS diploma, GED or home-school setting approved by state law (this is why you can’t get financial aid for your college classes this year)

❖ Passed Ability to Benefit Test (ABT)❖ Enroll in a minimum of six hours towards degree or certificate

(not remedial work)❖ *Males must register with Selective Service at 18 years old

Some terms you must know: Cost of Attendance (COA)

•Five Primary Components:▫Tuition & Fees▫Room & Board▫Books & Supplies▫Personal Expenses▫Transportation Expenses

•Consists of Direct and Indirect costs▫Direct – owed to the institution▫Indirect – personal out-of-pocket

Expected Family Contribution (EFC)

Amount of money a family can reasonably be expected to contribute based on their income.

Stays the same regardless of schoolTwo components

-parent contribution-student contribution

Calculated using an approved federal formula from submitted FAFSA data

Financial Need

Cost of Attendance (COA)-Expected Family Contribution (EFC)_____________________= Financial Need

*When you apply at a post secondary school, you fill out an admission application, scholarship application & the FAFSA. The Institution then sends you a Financial Aid Package which lists your awards & costs.

Make sure you understand the difference between Grants, Scholarships (Gift Aid) & Loans

Scholarships

-Funds typically don’t require repayment

-Awarded on merit, skill and even financial need

-Finding scholarships takes extra effort-FASTWEB, writing essays, etc..

Grants

-Funds typically don’t require repayment

-Generally awarded on the basis of financial need

-Awarded on basis of “first come – first serve” on FAFSA.

What’s Out There ……….

•Pell Grants – Based on EFC▫Automatic with eligibility▫Range from $290 to $5,775 for 2015-2016

•FSEOG▫Supplemental grant for the neediest of students▫Based on availability

•TEACH Grant▫For those planning to teach in high-need fields▫Agreement to Serve

•Kansas Comprehensive Grant▫Determined by the KS Legislators▫Available at 4-year Colleges & Universities▫Based on availability

What’s Out There ……...

•Federal Work Study▫Federal dollars paid in exchange for part-time

employment in designated jobs

▫School comes first•Federal Direct Loans

▫Subsidized▫Unsubsidized▫Parent/Grad PLUS Loans

•Private/Alternative Loans▫Exhaust federal aid options first

New Timeline for Filing the FAFSA!

•2016-2017 FAFSA – Available January 1, 2016

•2017-2018 FAFSA – Available October 2016▫Possibly know the complete aid package as early as the FALL semester �plenty of time to make college decisions

▫Prior-prior year data helps avoid costly delays▫Especially by using the IRS Data Retrieval Tool (DRT)

Can You Help Me Fill It Out?

Can You Help Me Fill It Out?

•Recurring issues with the student demographic section:

▫Students must use their LEGAL name▫I don’t think I have a Social Security Number?▫Why does it ask my gender?�Selective service

STEPS IN FILLING OUT THE FAFSA

Completing the FAFSA

1. Get a FSA ID on the www.FAFSA.gov website now for both student & parent. (Dec.)

2. Get your taxes completed or use an estimate if they will not be finished til later. (Feb. or March)

3. Transfer information from the Tax forms to the FAFSA. (Every question lists for you what line to transfer the information from off of the Income Tax Return form) Fill out the FAFSA on-line, not the paper form. (www.fafsa.gov)

4. List the schools/institutions you want to receive the information from FAFSA & submit data.5. Watch your e-mails for a response from the Federal Government that they have received your

information. This report is called a SAR (Student Aid Report). Scan it for accuracy.6. Wait for the award letters and financial aid packages from the schools/institutions you have

applied at.7. Make your comparisons of costs and make your final decision. (April/May/June)

OTHER SOURCES OF FINANCIAL AID

-State Scholarships-Schools

-Funds offered by the school-Private Sources

-Civic organizations-Religious affiliation-Employers

KBOR Undergraduate Program

Kansas Comprehensive Grant (FY 99)

-Available to public & private 4-yr schools

-Need-based; full-time enrollment required

-Only FAFSA application required for consideration no state application required

-$16.1 million awarded to 9,412 students in FY 13

-$3,500 max./$200 min. – Private Institutions-$1,500 max./$100 min. – Public Institutions