Financial aid

Financial Aid

Carolyn Guel

Interim Assistant Director

Counseling/Advising Unit

[email protected]

Financial Aid – What is it?

Financial Aid can help narrow the gap between one’s resources and one’s costs. The basic premise is that it is the family’s responsibility for the cost of education.

Financial Aid is available from the federal government, state, colleges and private sources.

Types of Aid Available

Federal Pell GrantFederal Pell Grant Federal Supplemental Educational Opportunity Grant (SEOG)Federal Supplemental Educational Opportunity Grant (SEOG) ACG / SMART Grant Cal Grant A or BCal Grant A or B State University GrantState University Grant EOP GrantEOP Grant

Federal Work StudyFederal Work Study Loans : Stafford Loans, Perkins Loans, Parent Plus Loans, Loans : Stafford Loans, Perkins Loans, Parent Plus Loans,

Alternative LoansAlternative Loans

Scholarships

Federal Pell Grant

Foundation of financial aidFirst type of need based aid that is

considered For EFCs from 0 – 4617Award range is from $5350 to $488/ay

FSEOG (Federal Supplemental Educational Opportunity Grant)

Next type of need based aid awardedLump sum is given to school to awardSJSU criteria is to award $600/ay to 0

EFC students who have filed their FAFSA by March 2nd deadline

Federal Work Study

Federal Work-Study(FWS) allows students to gain valuable work experience while they earn money to help pay for college.

Students normally request Federal Work Study on their FAFSA application when they apply for aid

One of the advantages of the Federal Work Study program is that earnings are excluded when you reapply for financial aid. Thus, FWS earnings do not affect future financial aid eligibility. However, FWS earnings are taxable.

Scholarships

Can come from many different sources Can come from many different sources (private, church groups, alumni, SJSU)(private, church groups, alumni, SJSU)

Usually based on scholastic achievement, Usually based on scholastic achievement, but it is up to individual donor on what to but it is up to individual donor on what to award scholarship foraward scholarship for

SJSU scholarships – SJSU scholarships – http://scholarships.sjsu.edu – Apply by – Apply by March 2ndMarch 2nd

Scholarships, etc

To be eligible to apply, students must have at least 12 undergraduate units completed at SJSU with a GPA of 3.0 or better. A few scholarships have a lower GPA requirement, and state the minimum criteria when applying.

Links: fastweb.com – collegeboard.com www.sjsu.edu/faso/scholarships

How to apply?

FAFSA (Free Application for Federal Student Aid)

Online at www.fafsa.ed.gov

Not www.fafsa.com - First word of FAFSA is FREE – fafsa.com charges $$

FAFSA ON THE WEB

What is asked on FAFSA?

Student’s will need to provide a SSN, an email address, a driver’s license number (if have one), and their Alien Registration Number (if not a US Citizen).

Also will need to provide prior year’s tax return information (estimates are okay)

2 sections to complete:Student sectionParent section

Online FAFSA Pages

Student Aid Report (SAR)

Once the Dept of Education has received your FAFSA data, they will return a response to the student.

If student provides an email address, SAR will be emailed.

SJSU receives FAFSA data electronically (make SJSU receives FAFSA data electronically (make sure SJSU is listed under school codes – sure SJSU is listed under school codes – 001155 – this is your authorization to allow 001155 – this is your authorization to allow SJSU to receive your information.SJSU to receive your information.

Expected Family Contribution (EFC)

FAFSA answers determines a student’s EFC.

This is what the federal government believes that the student/family could reasonably contribute toward their education. It is used to determine the type and amount of aid a student can qualify for.

Cost of Attendance

This estimate is what school determines it will cost to attend their institution. This amount includes the actual fees along with miscellaneous expenses that will vary from student to student.

For example, SJSU cost of attendance is $23,502, but registration fees for Fall 2009 are $2527 ($2013 + $514)

Financial Need

Cost of Attendance - Expected Family

Contribution Financial Need

This calculation is used by the Financial Aid Office to determine eligibility. One’s financial need will vary from college to college based on their individual cost of attendance.

Federal Loan Programs

Stafford Subsidized Loan

The federal government pays for the interest while you are in college and during the six month grace period after you graduate, leave school, or enroll in less than half-time.

Federal Stafford Loans, con’t

Stafford Unsubsidized Loan

These loans are similar to the Subsidized Federal Stafford Loans and are available to all eligible students, even those not demonstrating financial need. Unsubsidized Stafford Loans should be seen as a supplement since the borrower is responsible for paying all the interest on the loan. Current interest rate is fixed at 6.8%

Federal Parent PLUS Loans

Parents or stepparents can borrow up to the cost of attendance minus any financial aid awarded. These loans are not based on family income or assets and do require a credit check. You should still submit a FAFSA to apply.

Current interest rate is 8.5%.

Alternative/Private Loans

BEWARE!

Multiple advertisements now for “Educational” loans (Astrive, etc.)

It is not recommended to respond to an unsolicited ad from lenders about education loans. It is better to check with your school first. An unsubsidized loan will have a better rate than these loans.

Higher fees – interest rates up to 24%

Best Advice

Pay attention to deadlines – many schools award certain aid based on if deadline was met

Maintain Satisfactory Academic Progress – completion of units in a timely manner

Remember why you are here – to graduate!!

Contact us:

Financial Aid & Scholarship OfficeStudent Service Centerwww.sjsu.edu/[email protected]