FINANCING YOUR EDUCATION

www.studentaid.ed.go

What is Financial Aid?

Need Based Aid

Merit Based Aid

How is need determined?

Cost of Attendance
Tuition/Fees, Room/Board, Books/Supplies, Transportation, Living Expenses, Etc. Will vary from school to school.

Expected Family
Contribution is determined by a
formula created by Congress (FAFSA results). Will NOT vary.

Estimated Financial
Assistance total of all sources of
assistance (grants, scholarships, loans, FWS).

How do I apply for aid?

FREE Application for Federal Student Aid

Provides the necessary information to perform need calculation determines your EFC. Determines your eligibility for Federal, State, institutional and private aid.

Should be submitted as soon as possible after January 1st EVERY year.

What do I need to complete the FAFSA?

Parent/Student PIN
www.pin.ed.gov

2012 W2 Forms 2012 Tax Forms Other Financial Info School Codes

Helpful Hints:
Read the form carefully. Double check your answers. If you have questions, ask your Financial Aid Professional.

To electronically sign the FAFSA, you and your parent, must request a PIN from the Department of Education.

www.pin.ed.gov

Were you born before 1-1-90? Are you a grad or professional student? As of today, are you married? Do you have dependents who receive more than 50% of their support from you? Are you currently serving in the Armed Forces? Are you a veteran of the U.S. Armed Forces? Are you an orphan or ward of the court or in foster care or in legal guardianship? Are you a legally emancipated minor? Are you an unaccompanied, homeless youth?

IF YOU CANT ANSWER YES to one, or more, of these questions, you are a dependent student and must include parents financial information.

Transfer IRS tax information to your FAFSA.

1. Enter your PIN* and click Link To IRS. 2. On the IRS Web site, enter the requested information. 3. Once the IRS has validated your identification, your IRS tax information will display. You can either transfer your information from the IRS, or choose to return to FAFSA on the Web from the IRS Web site. 4. If you transfer your IRS tax information, questions that are populated with tax information will be marked with Transferred from the IRS.

Provide an email addressget a link to your SAR the next day.

Dont provide an email address get your SAR via snail mail.

Using FAFSA Corrections on the Web; By the Financial Aid Staff; or On the paper SAR.

Loss or reduction of family income. Unusual medical or dental expenses not covered by insurance. Death or illness. Other unusual circumstances.

The Department of Education randomly selects around 30-35% of FAFSA filers to participate in a mandatory quality-control process called Verification.

Watch your deadlines!

Show me the money!

FAFSA results determine eligibility. Award is based on your Expected Family Contribution (EFC). Maximum award for 20132014 is $5,550 per year.

Up to 6 years of potential eligibility.

Does not need to be repaid!!

 Awarded

to students with an EFC less than $12,000.

range from $1,000 to $2,150 per year depending upon state funding. be enrolled full-time (12 hrs). maintain a 2.50 GPA and make Satisfactory Academic Progress for renewal.

Awards

Must Must

 Must

complete the FAFSA by the Priority Deadline. Compensation is at least the current minimum wage.

There is an assumption that you have to be brilliant, or athletically talented, or gifted musically, to earn scholarships for college.

Where do I look?
Local Churches Local Businesses Military Sources College Websites Parents Employer Civic Organizations High School Counselor Local Library Resources Professional Organizations

Searching Online

Beware of financial aid scams!

Ever wonder what the people who award the scholarships want to see?

Remember, your application represents YOU!

Who is the borrower of a Federal student loan? Who is NOT the borrower? Who is responsible for repaying the loan?

The Federal government sets limits on the amount of money students may borrow to help fund their education.

Freshmen may borrow up to $5,500

($9,500 with PLUS denial).

Subsidized Stafford Loans

3.4% 6.8%

Unsubsidize d Stafford Loans It is important that you understand how interest is calculated and the fees associated with your loan. Both of these factors will impact the amount you will be required to repay.

Understand the difference between Subsidized and Unsubsidized loans.

Subsidized Student Loans Are based on financial need; government pays the interest while you are in school. Unsubsidized Student Loans Are not based on financial need; you should make interest payments while in school.

If possiblemake the interest payments on unsubsidized loans while you are in school.

The reality of loan payments!

Year in School Amt Borrowed Per Year Total Borrowed

Freshman Year
Sophomore Year Junior Year Senior Year

$5,500
$6,500 $7,500 $7,500

$5,500
$12,000 $19,500 $27,000

If you borrow $27,000 in a 6.8 percent interest rate Stafford Loan, you'll have to pay $311 every month for 120 months - 10 years.

When does repayment begin?

Student loansan investment?

Borrowing money to fund your education could be the best investment you ever make

or the WORST!

Go to Class After allyou paid for it. Only Pay for a Class One Time
Do your work and be prepared for tests. If you are struggling, GET HELP! Stick to Your Academic Plan

Take only courses that are REQUIRED for completion of your degree program. Borrow Only What You Need Learn the difference between NEED and WANT.
Use Loan Funds for Educational Expenses ONLY!!

What if I dont pay my loans back?

Default is the failure to repay a loan according to the terms of the promissory note. Be aware, there can be serious consequences for student loan defaulters. agency will take A collection
over your loans and you will incur additional fees. Your credit history will be damaged (wrecked). Your wages may be garnished. Your federal tax refunds and social security benefits will be withheld.

No problemIll just declare bankruptcy. Cant do it!

Federal student loans are rarely dischargeable in bankruptcy.

In other words

Borrow responsibly NOW

So you can live rich LATER.

Federal PLUS Loans for Parents

Borrowers are credit worthy parents of dependent undergraduate students.

TOP Reasons to GO TO CLASS!!

You earn your financial assistance as you go to class.

You can lose your eligibility to receive Federal financial assistance (Pell, Stafford Loans, etc.).

Would you borrow that much money to buy a car and then

Leave the lot without it?

Money Tip #1
You should always have a plan for spending your money.

Know where your money goes. Avoid overspending. Stay out of debt. Be ready for the unexpected. Allow for saving and investing.

Be prepared for a life of financial success!!

Money Tip #2
Understand that small purchases add up to big money.
When you look at your spending, you may see that you buy a latte every day. True, a latte only costs about $3, but if you buy one every day, that's $21 a week.

Over the course of the school year, that adds up to $1,092.

In four years, that's more than $4,368 you'll spend on coffee and steamed milk!

Money Tip #3
Understand your credit report and score.

Money Tip #4
Understand the miracle of compounding interest?
Sally begins investing $1,000 a year in a tax-deferred IRA at age 22 and stops putting money in the IRA after 10 years, at age 32. She leaves her money so it will grow through compounding until she reaches age 65. Joe begins investing $1,000 a year in a tax-deferred IRA at age 30 and continues to do so for 35 years until he reaches age 65. Sallys IRA Interest Rate Number of years of contributions Total amount contributed Value at age 65 9 percent Joes IRA 9 percent

10
$1,000 per year for 10 years ($10,000) $310,148

34
$1,000 per year for 34 years ($34,000) $215,711

Money Tip #5
Watch out for credit card debt.