Funding Your College Education Ben Beus, Director of Financial Aid.

Funding Your College EducationBen Beus, Director of Financial Aid

Tonight’s Topics

• What is: Financial Aid?Cost of Attendance (COA)?Expected Family Contribution (EFC)?Financial Need?

• Categories, Types and Sources of Financial Aid• The Free Application for Federal Student Aid (FAFSA)• Next steps• Special Circumstances• Academic Standards

What is Financial Aid?

• Funds provided to eligible students and families to “help” pay for postsecondary educational expenses

What is Cost of Attendance (COA)?

• Direct Costs: Tuition, fees, books

• Indirect Costs: Room & Board, transportation, etc.

What is Expected Family Contribution (EFC)?

• Amount family can reasonably be expected to contribute

• Stays the same regardless of college• Two components– Parent contribution– Student contribution

• Calculated using data from your FAFSA

What is Financial Need?

Cost of Attendance (COA)

– Expected Family Contribution (EFC)

= “Financial Need”

Need Varies Based on Cost

45000

25000

15000

3000 3000

42000

22000

15000

COA EFC Need(Variable) (Constant) (Variable)

4 yr

Priv

ate

4 yr

Pub

lic

2 yr

Pub

lic

Categories of Financial Aid

• Need – Based

• Non – Need – Based

Types of Financial Aid

• Scholarships• Grants• Loans• Work Study (part-time employment)

Scholarships

• Money that does not have to be paid back

• Require separate (but FREE) applications from other financial aid

• Awarded based on merit, skill or unique characteristics

ScholarshipsGrays Harbor College

http://www.ghc.edu/stars.html

• In 2011-12, awarded approx. $400,000 to more than 150 students

• Apply online January - February

Scholarshipswww.thewashboard.org

• Online tool to match you with scholarships offered across WA State

Scholarshipswww.fastweb.com

• Online tool to match you with scholarships offered nationwide

Scholarships

• Other Places to look for Scholarships:– Foundations – Community Organizations/Churches– National Organizations– Local/National Labor Unions– Colleges and Universities– Large Companies

Grants

• Money that does not have to be paid back

• Usually awarded based upon “financial need”

Student Loans

• Money students borrow to help pay college expenses

• Repayment begins after education is finished

Work Study

• Part-time employment on (or off) campus• Earn money to help pay educational costs

Sources of Financial Aid

• Federal Government: – Pell Grant– Direct Student Loan– Work Study

• Washington State:– WA State Need Grant– Opportunity Grant– Work Study

• College/University:– Grants– Work Study

FAFSA Required

Free Application for Federal Student Aid (FAFSA)

www.fafsa.gov

The FAFSA

• Collects demographic and financial information about student and family– Used to calculate EFC

• File online or using paper form– Available in English and Spanish

The FAFSA

• FAFSA opens January 1st – IRS data retrieval available January 30th

• Apply (Submit your FAFSA) by March 1st – Financial Aid Office notifies you of additional

documentation needed by the College• Submit all required documents to FA Office by

May 1st – Priority Deadline

FAFSA on the web

• Why you should file online:– Built in edits– Skip logic (skip unnecessary questions)– Option to use IRS data retrieval (Feb. 1st)– More timely submission and processing of

application– Detailed instructions and “help” for each question– Check application status online– Simplified application process in the future

FAFSA on the Web Worksheet

• Section 1: Student Information– Social Security Number– Citizenship Status– Drug Convictions– Selective Service Registration

FAFSA on the Web Worksheet

• Section 2: Dependency Status– If all “NO” responses, student is DEPENDENT– If “YES” to any question, student is INDEPENDENT

FAFSA on the Web Worksheet• Section 3: Parent Information– Demographic information– Tax, income and other financial information– Assets

• Section 4: Student Information– Tax, income and other financial information– Assets

FAFSA on the Web

• Additional Information:– Household size– Family members attending college– College and housing information– Student and Parent signatures• E-Sign using PIN

IRS Data Retrieval

FAFSA Processing Results

• Student Aid Report (SAR) Sent to student to confirm submission of FAFSA– Via email if email address provided– Via mailed paper SAR if no email provided

• Student should review SAR for accuracy– If errors found, make corrections on

www.fafsa.gov

FAFSA Processing Results• Institution Student Information Record (ISIR)

sent to colleges listed on FAFSA 10-14 days after FAFSA submission

• College Financial Aid Office reviews ISIR and may request additional documentation:– Data Sheet– Verification Worksheet– 2011 Tax Transcript from the IRS

What Happens Next?

• 4-8 weeks after submitting required documents you should get a response regarding your financial aid eligibility.

• Apply Early and Respond Quickly!

• GHC students can view their financial aid information and awards online 24/7!

www.ghc.edu/finaid

What if my Financial Circumstances Change?

• “Is my 2012 income going to be substantially less than my 2011 income?”

• Loss of employment or significant reduction in hours – Dislocated Worker• Other loss of family income or assets• Converting regular IRA into a Roth IRA by transferring

funds (converted amount gets reported as taxable income)

What if my Financial Circumstances Change?

• Complete “Change in Circumstances Form” (available Sept. 1st) and submit to Financial Aid Office

• All required documentation must be included

Apply Early!

Sample Financial Aid Award

Early Applicant Late Applicant

Cost of Attendance (COA) $ 15,000 $15,000Expected Family Contribution (EFC) (0) (0)Financial Need $ 15,000 $ 15,000Financial Aid Award

Federal Pell Grant $ 5,550 $ 5,550WA State Need Grant $ 2,682 $ 0Federal SEOG $ 600 $ 0Work Study $ 4,500 $ 0Subsidized Stafford Loan $ 1,668 $ 3,500

$ 15,000 $ 9,050

Remaining Need $ 0 $ 5,950

Award amounts WILL vary from Student to Student

How Do I Keep My Financial Aid?

• Make “Satisfactory Academic Progress”– Must earn degree within 125% of program

length– Complete/Pass all credits for which you

received financial aid– 2.0 Quarterly GPA

In Conclusion…

• Apply early (January – March)• Read and respond to correspondence from FA

Office quickly• Check your financial aid online (

www.ghc.edu/finaid)• Study hard and pass your classes – don’t be

afraid to ask for help

College Goal Sunday

• Want help filling out your FAFSA?– Place: Grays Harbor College (HUB)– Date: Sunday, January 15th

– Time: 1 – 4pm

Questions?Contact Information: The Financial Aid Office

Phone: (360) 538-4081Fax: (360) 538-4293www.ghc.edu/finaid