Financial Aid 101Financial Aid 101Claudia WenzelDirector of Financial AssistanceJohn Carroll University

What is financial aid?

Where does it come from?

What aid is available?

Who is eligible?

How do I apply?

Types of Aid

Gift aid: Grants and scholarships (need-based or merit-based)

Self-help aid: Loans and employment (need-based or non-need-based)

Goals of Financial Aid

Primary goal is to assist students in paying for college and is achieved by:

Evaluating family’s ability to pay educational costs

Distributing limited resources in an equitable manner

Providing balance of gift aid and self-help aid

***PAST, PRESENT, FUTURE**

Definition of Need

Cost of attendance (COA)

– Expected family contribution(EFC)

= Need

COST OF ATTENDANCE

FIXED TUITION & FEES ROOM BOARD

VARIABLES BOOKS & SUPPLIES TRANSPORTATION PERSONAL

EXPENSES

Federal Methodology

Federal Methodology is the formula created by Congress to determine

the EFC

***EFC determines eligibility for state/federal programs not necessarily what a family will pay out of pocket

Calculating the EFC for a Dependant Student

Student & Parent Income Taxes Paid/Income Protection Allowance Family Asset Equity (excludes home) Family Size Number of family members in college Age of older parent Start now with Net Price Calculators

***EFC determines eligibility for state/federal programs not necessarily what a family will pay out of pocket

Need Varies Based on Cost

X

Y

Z

Cost of Expected Family NeedAttendance Contribution (Variable) (Variable) (Constant)

1

2

3

EFC EFC

Application Process

Submit FAFSA prior to school’s deadline

Most aid awarded on “first-come, first-served” basis

To ensure maximum consideration for federal, state, and institutional aid, check information from each school to determine:

Required application materials CSS Profile

Institutional Applications

Application deadlines

Collects family’s personal and financial information used to calculate student’s EFC

Available in English and Spanish

FAFSA filed electronically at www.fafsa.gov

PIN RegistrationWeb site:

www.pin.ed.govCan request PIN before

January 1Not required, but

speeds processing

Will be used by students and parents throughout aid process, including subsequent school years

Sources andTypes of Financial Aid

Federal Pell Grant Supplemental Educational Opportunity Grant (SEOG) TEACH Grant Perkins Loan Stafford Loan (Subsidized and Unsubsidized) Federal College Work-Study

State Ohio College Opportunity Grant

Institutional Aid Merit and Gift Awards

Outside Scholarships

Loan Programs

Student LoansPerkins Loan- 5%interest rate/9 month Grace

Federal Direct Stafford Loan Subsidized vs. Unsubsidized- 4.6% interest

Parent/Co-signer RequiredFederal Direct PLUS Loan-7.21% interest

Private LoansHome Equity

Private Scholarship Search

Free Internet scholarship search engines: FinAid on the Web: www.finaid.org College Board: www.collegeboard.com FastWeb: www.fastweb.monster.com Scholarship Resource Network Express:

www.srnexpress.com GoCollege: The Collegiate Websource:

www.gocollege.com

Common Errors and Myths

Families need to hire a financial aid consultant to navigate the process

FAFSA.com Independent status You will be responsible for whatever is calculated as your family contribution Reporting assets Parental data in situations of divorce and remarriage You can “negotiate” a financial aid award by pitting colleges against each other

TIPS FOR SUCCESS

Start early and ask questions Know the importance of deadlines Read everything Don’t assume you don’t qualify

Net Price Calculator (NPC)

Don’t rule out any college because of cost Involve the student

Good Luck!