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Financial Aid Orientation

Sponsored by Brandman University

Whidbey Island

Financial Aid: An Investment in

Yourself; what better investment

can you make?

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Mary Ellen Schief

� Senior Academic Advisor

� Financial Aid Coordinator for Brandman University (WA State) – 15+ years

� 24 years of experience

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What Aid Is Available?

� Federal Pell grants

� Federal subsidized loan program

� School subsidized loan program

� Federal unsubsidized loan program

� School unsubsidized loan program

� PLUS Loans – Parent Loan

All aid is based upon federal need analysis.

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What Forms Are Needed to

Receive a Financial Aid

Package?� Free Application for Federal Student Aid (FAFSA)

� Watch any deadlines – federal and school

� Internal forms that school may require

If applying to more than one school, ensure

you complete financial aid packets for each

school. You will also need the TITLE IV

code for each school when completing the

FAFSA.

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Financial Need

Financial Need is determined by the following formula:

Cost of Attendance

-EFC

-Federal Pell Grant Eligibility

-Aid from Other Sources

=Financial Need

Changes to 2013/2014 FAFSA

� The Website has been improved to make it easier than ever to receive help.

� New link for IRS information. - The 2013-2014 IRS Data Retrieval Tool will be available on February 3rd.

� FAFSA4caster will help you understand your options for paying for college.

� Explanation of Pell Lifetime Limit – 12 Semesters (6 years).

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What Are the Differences in

the Types of Aid Available?

� Pell Grants – Aid that is granted to qualified Undergraduate students and does not need to be repaid. Max 12 semesters/6 years.

� Subsidized Loans – Interest is deferred until 6 months after graduation or 1 month after withdrawing from school.

� Unsubsidized Loans – Interest begins upon disbursement.

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What are PLUS Loans?

• Plus Loans are PARENT Loans. These are

private loans which usually carry a higher

interest rate and different repayment conditions.

• PLUS Loans are offered when the student does

not qualify for enough aid to cover tuition

charges.

•PLUS Loans cannot be consolidated with

student loans and are subject to credit checks

and disapproval.

• Read the fine print. Be informed about your

obligations.

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How Much Money is Available

� Pell Grants – Maximum of $5550 per academic year with 0 EFC. � Academic Competitiveness Grant – rigorous secondary school program (up to

$750 freshman/$1300 sophomore)� National Smart Grant – Junior & Seniors based on major (math, science,

technology, engineering, or critical foreign language) (up to $4000)

LOANS (Subsidized + Unsub)� Freshman: $3500 + $6000 = $9500 � Sophomore: $4500 + $6000 = $10500� Junior & Senior: $5500 + $7000 = $12500� Graduates: $8500 + $12000 = $20500

Maximums� Undergraduates: $57,500� Graduates: $138,500

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What Happens If I Get Money

From Another Source?

� All aid, regardless of its source, must be claimed.

� Scholarships received after the initial calculation of aid must be claimed.

� Federal law prohibits a student from receiving more than their maximum eligibility each financial aid year.

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Does Getting an Outside Award

Count Against Me?� Most of the aid students receive at Brandman is in the form of loans. Loans must be repaid.

� Any aid received in Scholarship or Grant form does not require repayment.

Example #1 Example #2

Max Eligibility – $16,000

Grant of $3,000 No Grant

Borrow $13,000 Loans Borrow $16,000

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What Happens After I Turn in My

Financial Aid Forms?

� Your FAFSA is generally sent to your school electronically. You will need to confirm this with the financial aid department.

� You will receive a Student Aid Report (SAR) from the Government.

� The SAR will tell you if you have been chosen for verification. This process requires additional paperwork from you.

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What Happens After I Turn in My

Financial Aid Forms? #2

� The SAR also tells you your Estimated Family Contribution (EFC) number. This number is used to help calculate your need according to a Federally mandated formula.

� Your financial aid package is calculated based upon the information you have provided on the FAFSA form.

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What Happens After I Turn in My

Financial Aid Forms? #3

� You should stay in close contact with your Financial Aid Advisor to ensure you have completed all the necessary paperwork.

� An Official Award letter detailing how much you can receive in aid for the year will be printed and sent to you.

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What Happens After I Turn in My

Financial Aid Forms? #4� Your award letter will include a cover letter detailing what you need to do next.

� You will have an opportunity at this time to accept or decline funds.

� Check with your Financial Aid Advisor to determine what is the next step.

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What Does It Mean When I Am

Chosen for Verification?� The federal government randomly chooses 30% of all applicants for a process called Verification.

� They are requesting the school to verify the financial information on your FAFSA.

� You will be required to turn in signed copies of your taxes, complete a Verification Worksheet, and claim all untaxed income.

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What Is an Over Award?� An Over Award is money in which the student has received more aid than was due them. This can occur when students do not take the credits reported or have unreported aid.

� Your award will be recalculated based on the new information. Any over award is sent back to the lender. Schools are required to collect the over awards from students. You must pay your balance prior to enrolling in further classes at the institution.

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How Can I Avoid an Over

Award of Financial Aid Money?� File a revision as soon as possible if you must change the amount of units for a term. Your award must be recalculated.

� File a revision as soon as possible if you receive an award of monies not reflected on your Financial Aid package. Your award must be recalculated.

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How Can I Avoid Problems

With My Financial Aid? #1

� Communicate with your Financial Aid Advisor regularly. This person is your friend.

� Complete all forms completely, accurately, and in a timely manner.

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How Can I Avoid Problems

With My Financial Aid? #2

� Take the amount of units as stated in your Educational plan.

�Revise your units with the financial aid office.

�Keep all paperwork together in an accessible place.

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How Often Is Aid Disbursed?

� The federal government requires schools disburse loan money at least twice per academic year. Many schools disburse money on a term or semester basis.

� Pell money is paid to student accounts once per term/semester.

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Can I Take Any Course I Want

Using Financial Aid?� Financial aid students are required to take only coursework applicable to their specific degree program.

� If you are unsure if the course you are interested in applies to your degree, please see your educational advisor.

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What Happens If I Skip a

Term?� Students who wish to skip a term must complete an Exit Counseling session each time.

� Loan money cannot be disbursed if student is not in school.

� Repayment of loans begins one month after falling below half time.

Avoid an ugly situation. Find out how

it will affect your aid status before

skipping the term.

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Common Misconceptions About

Financial Aid. #1

� Students can get the same federal fixed interest rate with the schools. School loans generally have a higher interest rate than federal loans.

� You can automatically get the maximum aid each year. Aid is calculated on the previous year’s taxes. If you made more money last year than the year before, your aid will be affected.

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Common Misconceptions About

Financial Aid. #2

� It is the school’s responsibility to make sure I know the rules and regulations for financial aid. It is your responsibility to find out the rules and regulations. We can help you but you must participate fully in this process.

� I can live on my financial aid. The amount you can receive may or may not be enough to cover your tuition and living expenses. This is on a case by case basis.

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Common Misconceptions About

Financial Aid. #3

� Repayment never begins until six months after I graduate. Repayment begins when you fall below half time status. You may be required to begin repayment of your loans if you skip a term.

� My aid will be disbursed even when I am out of school for a term. Aid money cannot be disbursed when the student is not in school.

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What Is Entrance &

Exit Counseling?

• The theme behind both

Entrance and Exit Counseling:

•YOU KNOW YOU HAVE

TAKEN OUT A LOAN AND

MUST PAY IT BACK!

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What Happens After

Graduation?� After you complete your Exit Counseling, your lender will contact you regarding repayment.

� Ten years to repay total loans. No penalty for early repayment. Any payment over and above minimum goes toward principle.

� Some loans are repaid on graduated payments giving students time to establish themselves.

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Consolidation of Loans• The new Direct Loan program currently prohibits the

consolidation of loans. Check with your lender about your

options.

•Institutional Loans are different from federal loans and may

not be consolidated together.

•Even if consolidation of loans is possible students should

consult with their lenders to determine if it is in their overall

and long-term interest to consolidate after the four-year

degree. BEWARE OF THE CONSOLIDATION SOLICITATIONS!

These companies want your business and are not always working

with your best interest at heart.

Contact Information

� meschief@brandman.edu

� Direct Line: 360-257-1279

Please do not hesitate to contact me if you have questions or I can assist you in any way.

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