Fall 2008 Workshop See It Through 2009-10 Presented by: Pacific Lutheran University.

Fall 2008 Workshop

See It Through

2009-10Presented by:Pacific Lutheran University

What We Will Discuss Tonight!

• What is financial aid• How to get started• Deadlines• Forms – PIN, FAFSA,

Profile• What is financial need :

– Cost of attendance (COA)– The expected family

contribution (EFC)

• Categories, types, and sources of financial aid

• Special circumstances• Helpful web sites

What Is Financial Aid?

• Financial aid is the funding available to help students and families pay for postsecondary educational expenses

– Students and their families carry the primary responsibility to pay for a college education

– Families’ ability to pay is evaluated through questions on Free Application for Federal Student Aid - FAFSA

– Financial Aid is a source of help to bridge the gap between what a family is expected to pay and what the family actually CAN pay.

Financial Aid partners with Familiesto offer:

One or a Combination of:

SELF HELP

GIFT AID

• Both Admission and Financial Aid Offices have deadlines.

• Check with each college.

• ADMISSION:– Seniors should apply to

colleges in the fall.

• FINANCIAL AID:– You cannot file before

January 1.

What Questions Should You Ask Each College?

1. What deadlines apply to Admission?

2. When is the Financial Aid Priority Funding Deadline?

3. Do they require additional forms?

You may experience problems getting admitted to your college of choice

You may still receive financial aid, BUT:Some Programs may have run out of fundsYou may receive a reduced aid packageYour Offer of Financial Aid may not arrive when you need it

Always contact each College with specific questions.

Some Schools Require the

In Addition to the FAFSA

• PROFILE, the financial aid application service of the College Board

• All students are charged a $9 registration fee.

• You will be charged $16 for each college or program to which you want information sent. This covers the cost of processing and reporting your information.

• A limited number of fee waivers are granted automatically to first-time applicants based on the financial information provided on the PROFILE.

• UNIV OF PUGET SOUND • WHITMAN COLLEGE

The PROFILE Process

CSS/Financial Aid PROFILE® is the financial aid application

service of the College Board. More than 600 colleges,

universities, graduate and professional schools, and

scholarship programs use the information collected on the

PROFILE to determine eligibility for nonfederal student aid funds.

The PROFILE is a fully Web-based application system that

provides students a secure and efficient method for reporting their financial data to schools.

When Can I Begin the Financial Aid Application Process?

1. You can begin tonight by applying for your Personal Identification Number (PIN) www.pin.ed.gov

– Both student and parent must have their own PIN

– The PIN is your “electronic signature” to sign the FAFSA

– Can request PIN before January 1, 2009

– May be used by students and parents throughout aid process, including subsequent school years

– PIN may be used to sign Stafford Loan Promissory notes

Don’t Stop There!

You can also do a FAFSA “test-run” by logging onto fafsa.ed.gov and clicking on the FAFSA4caster

High school juniors can take advantage of our FAFSA4caster Web site and learn about the financial aid process, gain early awareness of aid eligibility, and much more. Link to FAFSA4caster

After January 1st,File for Financial Aid Through

Free Application for Federal Student Aid -

• The FAFSA:– A standard form that collects demographic and financial

information about the student and family

– Available in English and Spanish

– May be filed in one of two ways:

• Electronically via FAFSA on the Web

• Paper FAFSA (Supply is Limited)

FAFSA on the WEBGood reasons to file

electronically:

• Built-in edits to help prevent costly errors

• Skip-logic allows student and/or parent to skip unnecessary questions

• More timely submission of original application and any necessary corrections

• More detailed instructions and “help” for common questions

• Ability to check application status on-line

• Simplified renewal application process

What Information Do I Need to File My FAFSA?

• 2008 Income for both student and parents

• 2008 Tax obligation for student and parents

• W – 2 forms for student and parents

• Asset information for student and parents

• Social security numbers and birth dates of student and parents

• Alien registration information for student

But My Taxes Won’t be Filed In January!!

• It’s OK…..We know!

• Apply on time anyway!– Timeliness is more important than

accuracy at this stage.

• Estimate Your Income for now.– Use “best-guess” estimated figures

for 2008 Income & Taxes

• Remember to make corrections later. – You are required to make

corrections later, when your taxes are complete.

Does The Parent Have to Provide Information For the FAFSA?

….Unless the student:• Is at least 24 years old by December 31 of the award

year covered by the FAFSA (Born before January 1, 1986 for the 2009-2010 FAFSA)

• Is enrolled in a graduate or professional degree program • Is married • Is supporting legal dependents other than a spouse• Is an active member or a veteran of the U.S. Armed

Forces

Or the Student is…..

• An orphan (because both parents are deceased) • A ward or dependent of the court, or in foster

care after age 13 • A legally emancipated minor• Currently in legal guardianship as determined by

the court• Determined to be an unaccompanied youth who

is homeless or at risk of being homeless, at any time on or after July 1, 2008.

FAFSA Will Review:1. Taxable income 2. Untaxed income 3. Number in household4. Number of students in the

household attending college (not to include parents or Running Start attendance)

5. Age of older parent6. Asset Information7. Demographic Information

This information will be used to calculate the student’s “EFC”

Expected Family Contribution

• The EFC is the figure that financial aid offices use to determine the type of aid a student is eligible to receive.– Colleges use EFC to award

need-based financial aid

• The EFC is not typically the amount a family will pay for college for that year.

How Will Colleges Use My EFC?

• Each college will use the student’s EFC to determine whether the student has “Demonstrated Financial Need” for that institution.

• The formula colleges use to determine “need” is as follows:Cost Of Attendance minus Expected Family Contribution = NEED

• COA – EFC = NEED

• Direct Costs• Tuition• Room & Board

• Indirect Costs

• 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

Average Cost of Attendance

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$15,000 $25,000 $40,000

Community 4-Year State 4-Year Private

$10,000

$5,000

$10,000

$15,000

$10,000

$30,000

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

Community 4-Year State 4-Year Private

Financial Aid Goal: Help Families Meet "Need"

NEED

EFC

$40,000

$15,000

$25,00

What’s Next ?

• Once you have:

– Applied for Admission– AND

– Filed Your FAFSA

• The ball is now out of your court … for the moment.

• You will soon begin to receive Offers of Financial Aid from the institutions who received your FAFSA.

What Kind of Aid Can I Expect to see on My Offer of Aid?

• Federal Grants– Pell grant– SEOG (Supplemental

Educational Opportunity Grant)– ACG (Academic

Competitiveness Grant) 1st and 2nd year students only

– SMART Grant (3rd and 4th year students only)

– Teach Grant• State

– Need Grant– WAVE– Washington Scholars– Educational Opportunity Grant

for Transfer Students• Institutional

– Merit– Need

• Private Donors

Scholarships:Money that does not have to be paid backAwarded on the basis of merit, skill, or a unique characteristic

Grants:Money that does not have to be paid backUsually awarded on the basis of financial need

• Federal

Work Study

• Washington State Work Study

• Work Study allows students to earn money for college without affecting future financial aid.

Federal Stafford Federal Direct Federal Perkins Federal NursingFederal Parent PLUS Private Lenders Loans

•Money students and parents borrow to help pay educational expenses

•Repayment usually begins after education is finished

•Only borrow what is really needed

•Consider loans as an investment in the future

Stafford Loans (or) Direct Loans

• Federal Family Education Loan Program:– Banks Or Credit Union lenders• Direct Loans - The Federal Government provides the funds directly

• Dependent Freshmen: $3500 maximum annual loan limit Plus an additional $2000 unsubsidized– Additional for Independent: $4000 maximum

• Dependent Sophomore: $4500 maximum annual loan limitPlus an additional $2000 unsubsidized– Additional for Independent: $4000 maximum

• Dependent Junior: $5500 maximum annual loan limitPlus an additional $2000 unsubsidized– Additional for Independent: $5000 maximum

• Dependent Senior: $5500 maximum annual loan limitPlus an additional $2000 unsubsidized– Additional for Independent: $5000 maximum

Stafford/Direct Loans (Cont.)

Loans can be “subsidized” or “unsubsidized”

• Subsidized loans require “need” • The US Government pays the interest on all

subsidized loans while student is in school and during “grace period.”

• Unsubsidized loans do not require “need”• The student is responsible for any accrued interest

while attending school and during the “grace period.”

• Unsubsidized loans may apply against the EFC.

Stafford Loans (Cont.)

• Interest is currently fixed at 6.8 percent for unsubsidized loans and 6% for subsidized loans.

• 1 - 2%“Origination fees” typically charged

• Repayment begins 6 months after student ceases to be enrolled at least half-time

Perkins Loans

• Federal subsidized (need-based) loan

• Usually awarded to students with highest need.

• Loan amounts vary from school to school

• Maximum annual loan amount for undergraduate students is $4000

• Flat 5% interest upon repayment (interest does not accrue until 9 months after the student ceases to be enrolled, at least on a half time basis.)

Federal Parent PLUS Loans• Not based on “need”

– Enables families to pay their EFC if they do not have available funds

• Parents of Dependent Students (only) may borrow

• Available through FFEL & Direct Loan Programs

• Maximum loan is COA minus all other forms of aid offered to student

• Interest fixed at 8.5 %

• PLUS not guaranteed / Application required

• Denial of PLUS allows student “Independent Stafford” limits

The Federal Processor may select you for a process called

– You must provide schools with copy of your tax forms and a completed form called the Verification Worksheet.

– Schools will compare your tax forms to data reported on FAFSA.

– Your Need-Based Offered Aid is subject to change.– Aid will not disburse to student until this process is

complete.

REVIEW: WHO DOES WHAT…

1) Student applies & is admitted to college

2) Student files FAFSA

3) College Receives FAFSA

4) College Prepares & Sends an Offer of Financial Aid to student

5) Student compares offers from colleges

6) Student makes a college choice

• If you are contacted by helpful agencies who want to help you find financial aid…..for a price…..

– Please tell them

You should not have to pay for financial aid information.

• The FAFSA assesses your ability to pay from your prior year’s financial picture.

• If your situation has changed (SEE LIST) please write a letter to the college you will attend.

• The college will review your letter and let you know if you qualify for more aid.

1. Change to the number in household.

2. Change to the number in college. (Not including parents)

3. Loss of income or assets.4. Excessive medical or dental

expenses.5. Private school tuition.6. Disaster relief.

• Does a step-parent have to provide data for the FAFSA?

• In a single parent household, does the student need to provide information about the non-custodial parent?

• I don’t claim my child on my 1040 tax form. Why should I provide information for the FAFSA?

• What should I do if my circumstances change?

Remember…..• Apply to colleges now• Check with HS counselor for

scholarship applications• Apply for PIN

www.pin.ed.gov• Gather documents for

FAFSA• January 1: file FAFSA

www.fafsa.ed.gov• Ask each school if they

require additional forms.• Enjoy your adventure!

Don’t Believe the Misconceptions About

Financial Aid

• I won’t qualify for any

financial aid.

• I can’t afford a private college.

• Only students with high G.P.A.’S receive scholarships.

The Financial Aid Reality Is

•Most students will qualify for at least one form of the following programs:

• Work study•Federal Student loans •Scholarships or grants

•Financial Aid can, in some cases, make a private college experience possible….even without a 4.0 G.P.A.

• http://www.icwashington.org/

• Independent Colleges of Washington (ICW) is an association of 10 private, nonprofit colleges in the state. ICW's member institutions share a commitment to high-quality, academically rigorous learning and to an education that emphasizes critical thinking, lifelong learning, ethics, leadership, and community service.

  Member Colleges: • Gonzaga University • Heritage University • Pacific Lutheran University • Saint Martin's University • Seattle Pacific University • Seattle University • University of Puget Sound • Walla Walla University • Whitman College • Whitworth University

Scholarship Search Engines

• http://www.college-scholarships.com/free_scholarship_searches.htm