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2	Financing Your Education What is financial aid? Where does it come from? What aid is available? Who is eligible? How do I apply?
3	Agenda Definition of financial aid Definition of financial need and how it is determined Descriptions of major federal financial aid programs How to apply for financial aid, including the Free Application for Federal Student Aid (FAFSA), and how to avoid errors Descriptions of other government resources Where to look for information about private sources of aid, including how to avoid being scammed
4	What is Financial Aid? Scholarships Grants Loans Employment opportunities
5	Types of Aid Gift aid: Grants and scholarships (need-based or merit-based) Self-help aid: Loans and employment (need-based or non-need-based)
6	Goals of Financial Aid Primary goal is to assist students in paying for college and is achieved by: Evaluating family’s ability to pay educational costs Distributing limited resources in an equitable manner Providing balance of gift aid and self-help aid
7	Definition of Need Cost of attendance (COA) – Expected family contribution (EFC) = Need
8	Cost of Attendance Tuition and fees Room and board Books, supplies, transportation, and miscellaneous personal expenses, including documented costs for a personal computer Loan fees Study abroad costs Dependent care expenses Disability-related expenses Cooperative education program costs
9	Need Varies Based on Cost
10	Principles of Need Analysis To extent they are able, parents have primary responsibility to pay for dependent child’s education Students also have responsibility to contribute to educational costs Families should be evaluated in their present financial condition Family’s estimated ability to pay educational costs must be evaluated in equitable and consistent manner, recognizing that special circumstances may affect family’s ability to pay
11	Federal Methodology Federal Methodology is the formula created by Congress to determine the EFC.
12	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
13	EFC for Dependent Student Step 1: Determine available parental income Total income (taxed and untaxed) – Excludable income (e.g., child support paid) – Taxes paid (i.e., federal, state, local, Social Security) – Income protection allowance for basic living expenses (e.g., food, shelter, etc.) – Employment allowance (if eligible) = Available income (may be negative)
14	EFC for Dependent Student Step 2: Determine available parental assets Value of cash, savings, and checking accounts + Adjusted business/farm net worth (total value minus debt against business/farm) + Investment/real estate net worth (excluding home) – Education savings and asset protection allowance (determined by age of older parent) x Asset conversion rate (12%) = Parental contribution from assets
15	EFC for Dependent Student Step 3: Determine portion of available parental income and assets available for education Available income + Contribution from assets = Adjusted available income (AAI) x Assessment rate (varies) = Total parental contribution ÷ Number attending college (excluding parents) = Parental contribution for student
16	EFC for Dependent Student Step 4: Determine student contribution Total income (i.e., taxed and untaxed) – Excludable income – Taxes paid (i.e., federal, state, local, and Social Security) – Income protection allowance – Parental adjusted available income if < $0 = Student’s available income
17	EFC for Dependent Student Step 4: Determine student contribution Student’s available income x 50% assessment rate = Income contribution from student + 35% of the student’s net asset worth = Student contribution
18	EFC for Dependent Student Parental contribution from income and assets (as adjusted, if more than one household member in college) + Student contribution from available income and assets = EFC
19	EFC for Independent Student No parental contribution Independent with dependents: Student contribution similar to calculation for parent of dependent student Variable percentage of available income 12% of net assets after protection allowance Independent with no dependents: 50% of available income 35% of net assets after protection allowance
20	Federal Pell Grants Awarded to eligible undergraduates pursuing first baccalaureate degree and certain students enrolled in post-baccalaureate teacher certification or licensing programs Portable Actual award amount based on COA, EFC, and enrollment status Maximum award for 2006-07 = $4,050
21	Federal Supplemental Educational Opportunity Grants (FSEOG) Eligible students: Undergraduates pursuing first baccalaureate or professional degree Awarded first to students with “exceptional financial need” (i.e., students with lowest EFCs at that school) Priority to Federal Pell Grant recipients Annual award amounts: $100 minimum $4,000 maximum
22	Federal Work-Study (FWS) Earnings Eligible students: Undergraduate, graduate, and professional students Employment may be on or off campus Eligible employers: Schools Federal, state, or local public agencies Certain private nonprofit and for-profit organizations Schools must use portion of FWS funds for community service employment activities
23	Federal Perkins Loans Eligible students: Undergraduate, graduate, and professional students Priority to students who show “exceptional need,” as defined by school Loan amount varies Maximum annual loan amounts: $4,000—undergraduate students $6,000—graduate and professional students
24	Federal Perkins Loans Interest rate: 5% 9-month grace period Repayment period may be up to 10 years Deferment and cancellation provisions available
25	Stafford Loans Student loans available under: Federal Family Education Loan (FFEL) Program with funds provided by lenders (e.g., banks and credit unions) Federal Direct Student Loan (Direct Loan) Program with funds provided directly by federal government via participating schools School determines loan eligibility and delivers loan proceeds to students
26	Stafford Loans Subsidized: Must demonstrate “need” Unsubsidized: Not based on “need” Base annual loan limits (combined subsidized and unsubsidized): $2,625 for 1st year undergraduates $3,500 for 2nd year undergraduates $5,500 for each remaining undergraduate year $8,500 for each year of graduate/professional study
27	Stafford Loans Additional unsubsidized loan eligibility for independent undergraduate, graduate, and dependent students whose parents are unable to borrow PLUS: $4,000 per year for 1st and 2nd year undergraduates $5,000 per year for remaining years of undergraduate study $10,000 per year for graduate/professional study
28	Stafford Loans Fixed interest rate of 6.8% Loan fees based on principal amount of each loan: FFEL: Up to 2% origination fee and 1% insurance premium Direct Loan: Up to 3% loan fee
29	Stafford Loans Repayment begins after 6-month grace period Maximum repayment period between 10 and 30 years depending on repayment plan chosen Deferment and cancellation provisions available
30	PLUS Parent loan program for parents of dependent undergraduate students Annual loan limit: COA minus other aid Fixed interest rate FFEL: 8.5% Direct Loan: 7.9%
31	PLUS Loan fees based on principal amount of each loan: FFEL: Up to 3% origination fee and 1% insurance premium Direct Loan: Fixed 4% loan fee Repayment begins 60 days after loan is fully disbursed
32	General Student Eligibility Criteria Must be enrolled or accepted for enrollment in eligible program of study Must be pursuing degree, certificate, or other recognized credential Must be U.S. citizen or eligible noncitizen Must be registered with Selective Service (if male and required) May not have eligibility suspended or terminated due to being convicted of a drug-related offense
33	General Student Eligibility Criteria Must have valid Social Security Number (SSN) May not be in default on a federal student loan Must not owe an overpayment of federal grant or loan funds Must be making satisfactory academic progress (as defined by school)
34	Role of the Financial Aid Office Determines aid eligibility using federal formula Packages aid depending on availability of funds Sends award notification including: Award amount for each program for which student is eligible Disbursement methods and time frames Terms and conditions of each award
35	Application Process Submit FAFSA prior to school’s deadline Most aid awarded on “first-come, first-served” basis To ensure maximum consideration for federal, state, and institutional aid, check information from each school to determine: Required application materials Application deadlines
36	FAFSA Collects family’s personal and financial information used to calculate student’s EFC Available in English and Spanish May file FAFSA in one of two ways: Electronically via FAFSA on the Web Paper FAFSA
37	FAFSA on the Web
38	FAFSA on the Web
39	PIN Registration
40	FAFSA on the Web Worksheet 2006-07 FAFSA on the Web Worksheet—8-page booklet containing: Instructions 72 questions in 8 sections Worksheets A, B, and C
41	FOTW Worksheet: Section 1 Name State of legal residence Social Security Number Driver’s license number
42	FOTW Worksheet: Section 1 Citizenship Marital status Date of legal residence Selective Service status
43	FOTW Worksheet: Section 1 General student information: Degree type Grade level
44	FOTW Worksheet: Section 1 Receipt of first bachelor’s degree Self-help preferences Parent(s) educational background(s) Drug conviction status
45	FOTW Worksheet: Section 2 Student’s dependency status If all “No” responses, student is dependent If “Yes” to any question, student is independent
46	FOTW Worksheet: Section 3 Student’s (and spouse’s) financial data: Federal income tax return status Federal income tax return type
47	FOTW Worksheet: Section 3 Student’s (and spouse’s) financial data: If student (and spouse) filed or will file a 1040, were they eligible to file a 1040A or 1040EZ? Student providing parental information will see several parental questions on Web screens at this point
48	FOTW Worksheet: Section 3 Student’s (and spouse’s) financial data: Federal adjusted gross income (AGI) Federal income taxes paid Exemptions claimed and income earned from work
49	FOTW Worksheet: Section 4 Student household information: If student answered “No” to all the questions in Section Two, skip this section and go to Section Five If student answered “Yes” to any question in Section Two, complete this section and go to Section Six
50	FOTW Worksheet: Section 5 Financial data for parents of dependent students: Students complete this section only if they answered “No” to all questions in Section Two Answer questions as of date FAFSA is submitted
51	FOTW Worksheet: Section 5 Data for parents of dependent students: Parents’ current marital status Date of parents’ current marital status
52	FOTW Worksheet: Section 5 Financial data for parents of dependent students: Parents’ federal income tax return status and type If parents filed or will file a 1040, were they eligible to file a 1040A or a 1040EZ?
53	FOTW Worksheet: Section 5 Financial data for parents of dependent students: Parents’ adjusted gross income (AGI) Parents’ income earned from work
54	FOTW Worksheet: Section 6 Student’s (and spouse’s) financial data: Complete Worksheets A, B, and C on page 8 Worksheets A and B – untaxed income Worksheet C – income excluded from EFC calculation
55	FOTW Worksheet: Section 6 Financial data about student (and spouse) Complete worksheets on left-hand side of page
56	FOTW Worksheet: Section 6 Student’s (and spouse’s) assets and student’s veterans’ benefits: Answer questions as of date FAFSA is submitted
57	FOTW Worksheet: Section 6 Student’s (and spouse’s) asset and veteran’s benefits: Total cash, savings, and checking Net worth of real estate and investments Net worth of businesses and investment farms Veteran’s educational benefits received during award year
58	FOTW Worksheet: Section 7 Information about parents of dependent students: E-mail addresses (optional) Social Security Numbers, last names, and dates of birth
59	FOTW Worksheet: Section 7 Information about parents of dependent students: Household size Number in college
60	FOTW Worksheet: Section 7 Information about parents of dependent students: Parents’ state and date of legal residence Parents’ income tax paid and exemptions
61	FOTW Worksheet: Section 7 Financial data for parents of dependent students: Complete Worksheets A, B, and C on page 8 Worksheets A and B – untaxed income Worksheet C – income excluded from EFC calculation
62	FOTW Worksheet: Section 7 Financial data for parents of dependent students Complete items shaded in purple
63	FOTW Worksheet: Section 7 Financial data for parents of dependent students: Total cash, savings, and checking accounts Net worth of real estate and investments Net worth of businesses and investment farms
64	FOTW Worksheet: Section 8 Federal School Code for each school Housing plans for each school Enrollment status
65	CAUTION! Avoid being charged a fee to file the Free Application for Federal Student Aid Completion and processing of the FAFSA are FREE If filing via FAFSA on the Web, be sure to go directly to www.fafsa.ed.gov Contact financial aid office for help completing the FAFSA
66	ERRORS can be COSTLY! Errors on the FAFSA or supplemental forms may DELAY application processing and result in the LOSS of financial aid funds. Read the instructions and complete all forms carefully!
67	Frequent FAFSA Errors Parent and student Social Security Numbers Divorced/remarried parental information Income earned by parents/stepparents Untaxed income U.S. income taxes paid Household size Number of household members in college Real estate and investment net worth
68	FAFSA Processing Results Central Processing System (CPS) notifies student of FAFSA processing results by: Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s e-mail address was not provided SAR Acknowledgement if filed electronically via FAFSA on the Web and student’s e-mail address was not provided
69	FAFSA Processing Results CPS notifies student of FAFSA processing results by: E-mail notification containing a direct link to student’s on-line SAR if student’s e-mail was provided on paper or electronic FAFSA Student with PIN can view SAR on-line at www.fafsa.ed.gov
70	Making Corrections If necessary, corrections to FAFSA data may be made by: Using FAFSA on the Web (www.fafsa.ed.gov) if student has a PIN; Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or Submitting documentation to school’s financial aid office
71	Where Do I Go From Here? Obtain and review admissions and financial aid Web sites and materials for each school to which you are applying Meet all application deadlines Complete FAFSA and other application materials, such as College Scholarship Service’s PROFILE application, if required by school or state agency Submit all requested follow-up documents Investigate other sources of aid
72	Leveraging Educational Assistance Partnership (LEAP) Grants Federal funds matched by state funds to establish or expand state scholarship, grant, and work programs States may use unique names for LEAP grants Students apply directly to state agency or through school Award amounts may vary by state
73	Robert C. Byrd Honors Scholarship Program Federally-funded, merit-based aid program administered by states Recognizes and promotes student excellence and achievement States establish application requirements and selection criteria, and select recipients Recipients may receive up to $1,500 a year for up to 4 years of undergraduate study
74	Other Government Resources Corporation for National and Community Service (AmeriCorps) – www.americorps.gov Veteran’s benefits – www.gibill.va.gov ROTC scholarships or stipends Bureau of Indian Affairs (BIA) Grants State Divisions of Vocational Rehabilitation U.S. Department of Health and Human Services (HHS) Bureau of Health Professions – www.bhpr.hrsa.gov/dsa
75	Other Sources of Funds State grants, scholarships, loans, and work programs School need-based and non-need-based programs (e.g., academic, athletic, and other talent-based scholarships and grants) Private business scholarships (e.g., Wal-Mart, Gates Foundation, etc.) Civic organization scholarships (e.g., PTA, Elks Club, etc.)
76	Avoid Being Scammed To 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
77	Private Scholarship Search Free 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
78	Private Scholarship Search Local library resources Local businesses and civic organizations Parents’ employers
79	Florida State Grants & Scholarships The state appropriated $604 million to fund state programs in 2006-2007. Three largest state-funded programs Florida Bright Futures Scholarship Program $346.3 million Florida Student Assistance Grant (FSAG) $120.5 million Florida Resident Access Grant (FRAG) $102.6 million
80	Florida Bright Futures Scholarship Program Merit-based scholarships that reward high school graduates for high academic achievement Award amount 75% to 100% of tuition and fees. Comprised of three awards
81	Florida Academic Scholars Award pays 100% tuition and fees at one of the 11 state universities or any public community college 3.50 weighted GPA in 15 college preparatory courses (GPA not rounded) 1270 SAT or 28 ACT 75 hours community service approved by the school district
82	Florida Medallion Scholars Award (FMS) pays 75% tuition and fees at one of the 11 state universities or 100% tuition and fees at any public community college 3.00 weighted GPA in 15 college preparatory courses (GPA not rounded) 970 SAT or 20 ACT
83	Gold Seal Vocational Scholars Award (GSV) pays 75% tuition and fees at one of the 11 state universities or any public community college 3.00 weighted GPA in coursework required for high school graduation 3.50 unweighted GPA in 3 vocational courses satisfactory test scores
84	Gold Seal Vocational Scholars Award (GSV) CPT Scores: 83 Reading, 83 Sentence Skills, 72 Algebra SAT Scores: 440 Math, 440 Critical Reading ACT Scores: 17 English, 18 Reading, 19 Math
85	Florida Student Assistance Grant (FSAG) Need-based grant for students who demonstrate substantial financial need Students are required to complete the FAFSA 2006-2007 Maximum Award Amount $1,722 EFC and college’s cost of education determine amount of rewards
86	Florida Student Assistance Grant (FSAG) Institution determines application procedures, deadlines, and student eligibility Contact college financial aid counselor
87	Florida Resident Access Grant (FRAG) Provides tuition assistance to Florida undergraduates attending eligible 4-year, private, postsecondary institutions Institution determines application procedures, deadlines, and student eligibility 2006-2007 Annual Award Amount $3,000 Contact college financial aid counselor
88	First Generation Matching Grant Program Creates a need-based grant program for first generation college students who attend a public state university State universities will match state funds with private funds up to $6.5 million Student eligibility parents have not earned a bachelor’s degree need-based (FAFSA required) undergraduate, resident, full-time student
89	How to Apply for State Aid Submit Florida Financial Aid Application (FFAA) online Eligibility criteria vary by program In general must be US citizen or eligible non-citizen meet residency requirement attend a postsecondary institution in Florida be enrolled in a degree or certificate program
90	How to Apply for State Aid not owe a repayment on a federal or state grant or be in default of a federal or state loan make satisfactory academic progress
91	Visit OSFA Website at www.FloridaStudentFinancialAid.org
92	Florida Financial Aid Application One Application for All Programs
93	Important Application Deadlines March 1, 2007 FAFSA deadline If you file between March 2 and May 15, 2007, you will only be eligible for federal funds April 1, 2007 José Marti Scholarship Challenge Grant Rosewood Family Scholarship Fund Scholarship for Children/Spouses of Deceased/Disabled Veterans
94	Important Application Deadlines April 15, 2007 Robert C. Byrd Honors Scholarship Program High School Graduation Date Florida Bright Futures Scholarship Program Remember to file your Florida Financial Aid Application beginning December 1.
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96	Good Luck!