Understanding the Financial Aid Process

Northside College Preparatory High SchoolDecember 6, 2010

Mary Stonis & Brian DrabikOffice of Undergraduate Financial Aid

What is the purpose of need-based financial aid?

Makes education accessible to students who can’t afford it on their own

Enables student to apply to first-choice college

Students can attend college based on best fit and match, not finances

What assumptions underlie need-based financial aid?

Families contribute to the extent they are able

Unusual family circumstances are considered

Similar treatment for similar circumstances

More is expected from those with greater resources

How do I apply for financial aid?

Federal FormulaFree Application for Federal Student Aid (FAFSA)

Institutional FormulaCSS/Financial Aid Profile

At School’s DiscretionInstitutional applicationTax Returns/W-2 Forms

Non-custodial Information

Families must reapply annually

Tuition & Fees

Room & Board

Transportation

Books & Supplies

Miscellaneous Personal Expenses

Cost of Attendance (COA)

+

How is the Cost of Attendance determined?

How is EFC determined?

A need analysis formula determines the student’s Expected Family Contribution (EFC). The U.S. Department of Education calculates

financial need using a formula established by Congress called Federal Methodology.

A comparative measure of how much a family can be expected to contribute toward the cost of a student’s education for a year.

Used to determine a student’s eligibility for most federal and state assistance.

After completing the FAFSA, the EFC is shown on the Student Aid Report (SAR) and Institutional Student Information Record (ISIR).

How is eligibility for financial aid determined?

Cost of Attendance- Estimated Financial Assistance (outside resources)

-EFC (Estimated Family Contribution)__________________________________= Student’s Financial Need

How can I calculate an estimate of my EFC?

www.collegeboard.com

www.fafsa4caster.ed.gov

http://www.finaid.org/calculators/quickefc.phtml

http://www.finaid.org/calculators/finaidestimate.phtml

REMEMBER – These are just estimates until you completethe 2011-12 FAFSA in January 2011 using 2010 taxinformation.

What is the FAFSA?

The FAFSA is the Free Application for Federal Student Aid which that determines your eligibility for federal financial aid.

FAFSA uses parents’ and student’s income, assets, etc. to calculate an EFC.

You will complete the 2011-12 FAFSA for your freshman year of college. It will be available starting Jan. 1, 2011.

You must complete a new FAFSA each year that you plan on applying for financial aid.

The sooner you complete the FAFSA, the better. State and institutional funds may be limited.

What you will need to complete the FAFSA

Parents’ information Social security numbers Federal tax information Asset information PIN number for one parent as an electronic

signature Student information

Social security number Federal tax information Asset information PIN number to electronically sign

How will your eligibility be determined by the school?

The FAFSA EFC will determine your eligibility for federal and state aid.

The CSS Profile may be required by the school to determine your eligibility for institutional funds.

The CSS Profilehttps://profileonline.collegeboard.com

College Board’s College Scholarship Service (CSS) Profile is required by some college/universities and scholarship agencies. The CSS Profile determines whether or not you are eligible for private grants and scholarships from the member organizations.

CSS Profile costs $25 for the initial application and one school and $16 for each additional school. Limited fee waivers available.

Deadlines vary depending on type of application (ED, EA) and college; can range from November – April.

This is NOT a substitute for the FAFSA.

These funds may be merit-based, need-based, or non need-based.

There are two types of financial aid.

What types of financial aid will I receive?

gift aid

self-helpaid

Grants

Scholarships

Federal Work-Study

Loans

Federal and State Grant Programs

A complete FAFSA is required. Federal Pell Grant – $5,550 * Federal Supplemental Educational Opportunity

Grant (FSEOG) – $4,000 * State of Illinois Monetary Award Program

(MAP) Grant – $4,968 *

* Maximum award for 2010-11

Sourceof

Loan

Repayment~

Grace Period

Interest Rate

Loan ProgramsWhen evaluating loan options, consider…

Subsidized vs.

Unsubsidized

Federal Loan Programs

Program Type GraceRate

Perkins($5,500*)

Subsidized(need-based)

5%Fixed

9 Months

Stafford ($3,500*)

($2,000*)

Subsidized(need-based)

4.5%Fixed

6 Months

Unsubsidized 6.8% fixed

6 Months

PLUS(cost of attendance minus other aid*)

Credit-based 7.9%fixed

60 days

* Maximums for 2010-11

Federal Work-Study

Need-based employment program for students partially funded by the government*

Provides jobs on- and off-campus Students earn at least minimum wage Students are permitted to work a

flexible schedule

* FAFSA Required

Sample Aid Packages

Private #1 Private #2 Private #3 Public

COA $48,000 $50,000 $35,000 $19,000

EFC $10,000 $10,000 $10,000 $10,000

Financial Need

$38,000 $40,000 $25,000 $9,000

Merit Aid $0 $0 $10,000 $0

Need-Based Grant

$35,900 $33,300 $2,800 $1,500

Student Loan $0 $4,000 $5,500 $5,500

Work-Study $2,100 $2,700 $1,800 $1,000

Total Aid $38,000 $40,000 $20,100 $8,00

Unmet Need $0 $0 $4,900 $1,000

What are merit-based scholarships?

Award based on academic performance or leadership, extra-curricular activities

Awarded after student is admitted Procedures for being considered vary

NominationScholarship applicationAdmission application

What questions should students ask about merit and athletic awards?

Is the scholarship renewable? If so, what are the requirements for

renewal? Will the scholarship affect need-

based aid eligibility?

Outside scholarships

Can meet unmet need and/or reduce loans or work study/jobs

Cannot replace EFC in a need-based award

Things to know

Deadlines are important! Missing a deadline could impact your financial aid package.

Early Decision/Early Action Need-blind vs. need-aware

admissions May 1st: National College Response

Day

Be Aware

Financial aid consultants Scholarship programs that charge

fees Scholarship search services that

charge fees “FAFSA” sites that charge fees

Online Resources

FAFSA www.fafsa.ed.gov The College Board www.collegeboard.com U.S. Department of Education www.ed.gov SmartStudent Guide to Financial Aid www.finaid.org Scholarship websites School’s financial aid web pages