Financial Aid 101 Almost everything you need to know University of - - PowerPoint PPT Presentation

Financial Aid 101

Almost everything you need to know… University of Dayton Office of Admissions & Financial Aid 1-800-UD-Pride

What is Financial Aid?

• Loans
• Scholarships
• Grants
• Any funds provided to students or parents to help pay

for postsecondary educational expenses.

Financial Aid FAFSA COA FAQ

Need-Based Aid

• It is the primary responsibility of the family and

student to pay for higher education costs. Assistance from the federal government, state government, and individual institutions may be available when those resources are not sufficient.

Financial Aid FAFSA COA FAQ

Types of Financial Aid

• Need-Based: (Covered later in this presentation)

– Gift Aid

• Federal Grants

– Pell Grant – Secondary Education Opportunity Grant (SEOG)

• State Grants

– Ohio College Opportunity Grant (OCOG)

– Institutional Grants – Other non-repayable awards – Self-help aid:

• Federal Student Loans

– Direct Loans (fixed interest rate of 3.86%) (Formerly Stafford) – Perkins Loan (fixed interest rate of 5%)

• Federal Work Study or University Funded Employment

Financial Aid FAFSA COA FAQ

Types of Financial Aid

• Other Aid: Supplemental Loans

– Federal PLUS Loan

• Parent Loan for Undergraduate Students
• Fixed interest rate of 6.41%
• Eligibility based on credit check
• If parent is credit denied, student can receive $4,000 more in

Direct Loans

– Private Student Loans

• Offered to students from most major banks
• Interest rates vary
• Generally require a credit worthy co-signer
• Sallie Mae disclaimer

Financial Aid FAFSA COA FAQ

Applying for Financial Aid

Merit Based

• Contact the colleges you

are applying for and speak to an Admissions Counselor about scholarship procedures.

• High School guidance

counselor.

• Online searches

(fastweb.com)

• Where do you work?

Need Based

• FAFSA, FAFSA, FAFSA.

Free Application for Federal Student Aid.

Financial Aid FAFSA COA FAQ

The FAFSA

Why it should be done every year by every student.

What is the FAFSA?

• The Free Application for Federal Student Aid (FAFSA)

is an application that collects demographic and financial information about the family and the student

• It may be filed electronically (easiest and fastest) and

must be completed every academic year.

• Families can start to file the FAFSA January 1 for the

upcoming school year. Check with schools for priority deadlines.

• Data collected from the FASFA is used to calculate the

Expected Family Contribution (EFC).

• The
• bligate a family or student to
• borrow. It may help with institutional awards.

Financial Aid FAFSA COA FAQ

How to file the FAFSA?

• To apply for need based aid:

– Apply for your Federal Student Aid PIN (takes a few minutes and can be done at any time) – http://www.pin.ed.gov – Parent PIN will stay the same if applying for aid for more than 1 child. Each child will have their own PIN – You use your PIN to electronically sign your FAFSA – Each year, there is a handful of families that pay to file the FAFSA (around $80)- You should – Never Pay for Financial Aid help. – FAFSA=FREE Application for Federal Student Aid – http://www.fafsa.ed.gov

Financial Aid FAFSA COA FAQ

More FAFSA stuff…

• Timeline:

– Check with each school for their deadlines and if they require additional forms to be completed – Once you have been accepted, each school will create and mail a financial aid package – Compare not only awards, but final costs of each school – Make final decision on schools by May 1 (National Deadline)

• Deadlines:

– Each school has their own deadline for filing for scholarships financial aid. – Not applying for financial aid by the deadline could change your financial aid award . If you miss the deadline, you could miss out on aid.

Financial Aid FAFSA COA FAQ

Expected Family Contribution

• EFC

– Determined by the FAFSA, it is the number calculated from all the income, tax, investment and savings information entered into the FAFSA. – Not to be confused with what is owed to a particular school after financial aid is applied. – The lower the number, the higher the need. – Determines eligibility for Pell Grants, Direct Loans (Stafford) and various other grants. – Also, used by schools to award need-based aid.

Financial Aid FAFSA COA FAQ

Register at www.ohiocollegegoalsunday.org

Hosted by the University of Dayton 300 College Park, Dayton, OH 45469

Want help filing the FAFSA?

Financial Aid FAFSA COA FAQ

FAFSA Disclaimer

• The FAFSA collects financial data from previous year
• The FAFSA is general and its not perfect
• If you have a special circumstance in which the

previous year’s financial information is not going to be the same the next year, families can complete a Special Circumstance form

• Reasons for a special circumstance include (but aren’t

limited to): loss of job, death of wage earner, medical

• r dental expenses not covered by insurance, change in

parent marital status, etc.

Financial Aid FAFSA COA FAQ

Cost of Attendance (COA)

What college will ACTUALLY cost.

What is Cost of Attendance?

• Cost of Attendance (COA)

– Cost of attending a particular school for 1 academic year – Includes tuition, fees, room & board, books, spending allowance, etc. – Amount will vary from school to school

COA

• EFC

____________ FINANCIAL NEED

Financial Aid FAFSA COA FAQ

Examples for Financial Need

Private 4 yr. Public 4 yr. 2 yr. COA $40,000 $20,000 $4,000 EFC

• $10,000
• $10,000
• $10,000

__________________________________________________________ Financial $30,000 $10,000

• $6,000 (No need)

Need Some of your financial need may be met with merit or need based, gift aid. There may still be a balance after all gift aid has been applied.

Financial Aid FAFSA COA FAQ

Net Price Calculator

Do it for every school you want to attend….

Some listed here, but not all: http://netpricecalculator.collegeboard.org/

Financial Aid FAFSA COA FAQ

Financial Aid FAQs

It’s ok if you have questions, here are a few answers…

FAQ’s

• When should I apply for financial aid?

– You should complete the FAFSA as soon as possible, after January 1. Send results to every school you’re applying to. You will not be awarded aid until you’ve been admitted. – What if my parents are divorced?

• If you’re a dependent student, the parent with whom you

lived the most with during the past 12 months would report their information on the FAFSA. If you lived with both parents equally, the parent who provided most of the financial support during the past 12 months would complete the FAFSA.

Financial Aid FAFSA COA FAQ

FAQ’s

• My parents are divorced. I live with my mom and stepfather. Does

my stepfather have to provide his income and tax information on the FAFSA? – Yes, if you are a dependent student and live with a birth parent and stepparent, the stepparent’s financial information must be reported on the FAFSA under the parental income section, even if they file taxes separately. – I actually live with my aunt and uncle, rather than my parents. Should their financial information be reported on the FAFSA?

• Generally, no—you would report your birth or adoptive

parents’ financial information. You would report on the FAFSA any cash support that you received from your aunt and uncle as untaxed income, excluding food and housing. If your aunt and uncle have legally adopted you, then you would report their information on the FAFSA.

Financial Aid FAFSA COA FAQ

FAQ’s

• Is it better to wait until after our tax returns are completed to

complete the FAFSA? – No, it is best to complete the FAFSA as soon as possible after January 1. You may use estimated financial information on the FAFSA. You want to be sure to meet the colleges’ priority deadlines (February – March usually). You can update FASFA information once you have completed your tax returns.

• Does the EFC number represent exactly what my family will have

to pay for college? – No, think of the EFC as more of an index that colleges use to determine the amount of financial aid, from federal, state and institutional sources, that you would receive if you attended that particular school.

Financial Aid FAFSA COA FAQ

FAQ’s

• What should I do if my family has unusual circumstances that the

FAFSA does not account for? – If you or your family experienced an unusual circumstance, complete the FASFA as is an then contact the financial aid

• ffice at the college you are attending or plan to attend and let

them know of your special circumstance. You will need to provide documentation.

• My parents do not believe I will qualify for any need based aid.

Why should I complete the FAFSA? – You should complete the FAFSA, regardless of income level, because all students who complete the FAFSA are eligible for at least unsubsidized federal student loans. You may also be eligible for institutional aid, even if you’re not eligible for federal or state aid. You also must complete the FAFSA in

• rder to apply for the Federal PLUS Loan.

Financial Aid FAFSA COA FAQ

Questions?

Not so scary, right?