Monticello High School January 2015 PAYING FOR COLLEGE.

Monticello High SchoolJanuary 2015

PAYING FOR COLLEGE

Welcome!

Andrew LashuaUndergraduate Financial Aid Administrator

Student Financial ServicesUniversity of Virginia

What is Financial Aid?

The Application Process

Helpful Resources

Questions

TONIGHT’S AGENDA

WHAT IS FINANCIAL AID?

Funds made available to students & families to help pay for postsecondary educational expenses. These include:

• Scholarships/Grants – Money that does not need to be repaid

• Work Study – The student must work to earn funds

• Loans – The student or parent must pay back what was borrowed, and possibly additional interest

FINANCIAL AID

Scholarships

Grants

Work Study

Loans

College/University Scholarships

Some schools use the application for admission to determine scholarship eligibility.

Some schools have a separate application.

Some schools may require you to have a completed application for financial aid on file.

Private and Community Scholarships

Some may require you to file an application for financial

aid along with an additional application.

You may find them in unexpected places.

They may be based on need, merit, talent, athletic ability,

artistic skills, or other criteria.

SCHOLARSHIPS

institutional

state

federal

Need-based money awarded by colleges and universities.

GRANTS

LOANS

federal

student loans

Subsidized or unsubsidized

Annual maximum for first year

student is $5,500

federal parent loans

Parent borrows on behalf of student

A credit check is usually required

private student loans

The student is the borrower

A credit check is usually required

Money that has to be repaid – repayment may be deferred until after the student graduates

NEED-BASED AWARD THAT PROVIDES AN OPPORTUNITY

TO WORK AND EARN MONEY TO HELP PAY FOR EDUCATIONAL EXPENSES.

get hired

get to

work

get paid

WORK STUDY

THE APPLICATION PROCESS

1• File

the FAFSA, available now

2

• If required, file the CSS PROFILE, available now

3

• If required, file an institutional financial aid application

4• If required, submit tax documents

HOW DO STUDENTS GET FINANCIAL AID?

FAFSA ON THE WEB WWW.FAFSA.GOV

FAFSA STUDENT SECTION

StudentAid.gov

CSS PROFILE WWW.COLLEGEBOARD.ORG

The FAFSA must be submitted each academic year a student would like to be considered for financial aid.

The FAFSA is available on January 1 of each year.FAFSA on the web (faster processing, error

checks, skip logic) at www.fafsa.ed.gov

If the student is dependent, then both the student and parent must sign the FAFSA.

Federal PIN to sign electronically;

register at www.pin.ed.gov

SUBMITTING YOUR FAFSA

• Must be enrolled in (or accepted for enrollment in) an approved program of study

• Must be pursuing a degree or certificate

• Must be a U.S. citizen or eligible non-citizen

• Must have a valid Social Security number

• Must be registered with Selective Service (if male and required)

• Must be making Satisfactory Academic Progress (as defined by the school)

WHO IS ELIGIBLE TO RECEIVE FINANCIAL AID?

General student information

Student dependency questions

Student financial data

General parent information

Household information

Parent financial data

WHAT INFORMATION IS ASKED ON THE FAFSA?

Number in the householdNumber in collegeEarnings from workAdjusted Gross IncomeIncome tax paidValue of cash, savings and checkingValue of other assets and investmentsUntaxed income such as child support

received for all children

EXAMPLES OF QUESTIONS IN THE FAFSA

1) FAFSA information is submitted to the Department of Education for processing.

2) The Department of Education calculates an Expected Family Contribution (EFC).

3) Each school selected by the student will receive the information submitted as well as the calculated EFC.

WHAT HAPPENS TO THE FAFSA INFORMATION?

Your file may be selected by the US Department of Education for federal verification

Financial Aid offices are required to verify income information using either:

IRS Tax Return Transcript

www.irs.gov/Individuals/Get-Transcript

The IRS Data Retrieval Tool (DRT), which is

integrated into the online FAFSA.

VERIFICATION

• Some application requirements and deadlines will vary from school to school.

• KNOW YOUR SCHOOL’S REQUIREMENTS AND DEADLINES!

ARE THERE OTHER APPLICATION REQUIREMENTS?

HOW DO COLLEGES GIVE FINANCIAL AID?

The FAFSA and other documents are used to determine the Expected Family Contribution (EFC).

Schools use the EFC to determine eligibility for need-based financial aid and to prepare an award package

Cost of Attendance – EFC = Financial Need

DETERMINING FINANCIAL NEED

• Direct Costs• Tuition and Fees• Room and Board

• Indirect Costs• Books and Supplies• Transportation

Costs• Personal Expenses• Loan Fees• Computer Expense

Direct + Indirect Costs = Cost of Attendance

COST OF ATTENDANCE

Because Cost of Attendance varies by institution, so does financial need.

Financial aid offices attempt to meet a student’s financial need with various types

of financial aid available to them.

FINANCIAL AID PACKAGES

SAMPLE FINANCIAL AID PACKAGE

Cost of Attendance $26,000EFC - $3,200Financial Need $22,800

Federal Pell Grant $2,580Perkins Loan $3,000University Grant

$11,720Federal Subsidized Loan

$3,500Federal Work Study $2,000TOTAL AID PACKAGE

$22,800

TYPES OF FINANCIAL AID

Need Based Aid given to a student based on the amount of

demonstrated need, as determined by information within the application.

Examples include the Pell Grant, Subsidized Loans and Federal Work Study.

Non-need Based Aid given to a student not based on need. Examples include credit-based loans or regional

scholarships.Merit Based

Aid given to a student based on scholastic or talent achievement.

Examples include awards based on GPA, extracurricular activities, unique talents, and/or leadership potential.

TYPES OF FINANCIAL AID

Federal Grants (need-based) Pell Grant SEOG (Supplemental Educational Opportunity Grant)

Federal Work Study (need-based) Part-time jobs for students through eligible employers,

such as their school, or even federal, state or local public agencies

Even though this is a federal program, schools set eligibility criteria

Federal Direct Loans Subsidized Loans are need-based Unsubsidized Loans are non-need-based

FEDERAL FINANCIAL AID

Subsidized Loans Available to undergraduate students with financial need Loan is in the student’s name, guaranteed by the Federal

government through the Department of Education The government pays the interest while the student is in

school Fixed interest rate for 2014-2015 is 4.66%

Unsubsidized Loans Non-need based loan in the student’s name, guaranteed

by the Federal government through the DOE Federal Government does not pay the interest while the

student is in school Fixed interest rate for 2014-2015 is 4.66%

SUBSIDIZED VS. UNSUBSIDIZED

Year Dependent Undergraduate

First Year $5,500 – No more than $3,500 of this amount may be in subsidized loans.

Second Year $6,500 – No more than $4,500 of this amount may be in subsidized loans.

Third Year and Beyond $7,500 – No more than $5,500 of this amount may be in subsidized loans.

Maximum Total Debt $31,000 – No more than $23,000 of this amount may be in subsidized loans.

AWARD AMOUNTS FOR DIRECT LOANS

Perkins Loans (need based) Federal government pays the interest while the student

is in school Fixed interest rate of 5.0%

Direct Parent Loan for Undergraduate Students (PLUS) Credit-based educational loan in the parent’s name

guaranteed by the Federal government Fixed interest rate of 7.21% The government does not subsidize this loan Maximum amount a student can borrow is the cost of

attendance minus all other financial aid

OTHER LOANS

Alternative/Private Loans for Students available through banks or other financial institutions

Loan in the student’s nameCredit check required, student may need a credit-worthy cosigner

May borrow up to the Cost of Attendance minus other financial aid

OTHER LOANS

College Scholarship Assistance ProgramPublic & private colleges, need-based

Virginia Commonwealth AwardPublic colleges, need-based

Virginia Guaranteed Assistance ProgramPublic colleges, need-based

Virginia Tuition Assistance Grant ProgramPrivate colleges, non-need-based, separate application required. Estimated amount for 2014-2015: $3,100.

TYPES OF VA STATE FINANCIAL AID

Some colleges and universities offer their own institutional scholarships, grants, and loans.

Check out their individual school websites for deadlines and required applications.

Outside Scholarships

Know what kinds of scholarships students can apply for locally. Encourage them to pay close attention to deadlines, and to contact donors with any questions.

OTHER TYPES OF FINANCIAL AID

HELPFUL RESOURCES

Obtain and review admissions and financial aid information from each school.

Submit all applications and requested documentation by the deadlines.

Investigate other sources of aid every year.

Talk to financial aid offices if you or the student has questions or special circumstances.

HELPFUL TIPS FOR STUDENTS

Federally mandated

• All schools required to have a net price calculator

Must represent factual data• Information is for current academic year• If you used a net price calculator today, it would reflect 2014-

2015 costs and awards.Reflects cost of attendance minus grant aid

NET PRICE CALCULATOR

NET PRICE CALCULATOR

FAFSA: www.fafsa.gov (not .com)

Federal Student Aid: www.studentaid.ed.gov

CSS Profile: www.collegeboard.org

Net Price Calculator: See college’s website

WEBSITES

OTHER RESOURCES

VPEPVirginia Prepaid Education Program

VESTVirginia Education Savings Trust

Other state college savings plans

PAYMENT PLANS

paying for

college

family contribut

ion

scholarships

loansgrants

work study

USEFUL TIPS

• Pay close attention to College/University financial aid deadlines.

• Use the IRS Data Retrieval Tool!

• Take advantage of the school’s Net Price Calculator.

• Continue to look and apply for scholarship opportunities.

QUESTIONS?

THANK YOU!

Phone: (434-982-6000)Email: [email protected]

www.sfs.virginia.eduwww.facebook.com/UVaSFSwww.twitter.com/UVaSFS