types & sources OF STUDENT FINANCIAL ASSISTANCE FINANCIAL
ASSISTANCE
Slide 4
types Scholarships - dont have to be repaid.student must meet
certain criteria, complete an application and meet deadlines
Scholarships - dont have to be repaid.student must meet certain
criteria, complete an application and meet deadlines Grants dont
have to be repaid but the student must meet certain
criteria../usually need-based Grants dont have to be repaid but the
student must meet certain criteria../usually need-based Loans must
be repaid with interest and the student will have consequences for
failure to repay Loans must be repaid with interest and the student
will have consequences for failure to repay Work-Study the student
must work to earn money Work-Study the student must work to earn
money
Slide 5
Sources FEDERAL FEDERAL Pell Grant (up to $5,550 per year) Pell
Grant (up to $5,550 per year) Supplemental Educational Opportunity
Grant (average $3,000 Supplemental Educational Opportunity Grant
(average $3,000 per year) per year) Academic Competitiveness Grant
($750 for freshmen & $1300 for Academic Competitiveness Grant
($750 for freshmen & $1300 for sophomores per year) sophomores
per year) SMART Grant ($4,000 per year for juniors & seniors)
SMART Grant ($4,000 per year for juniors & seniors)
Slide 6
Federal Work-Study Federal Work-Study Perkins Loan (average
$3000 per year) Perkins Loan (average $3000 per year) Direct
(Stafford) Loans - $5,500 per year for freshmen Direct (Stafford)
Loans - $5,500 per year for freshmen (no more than $3,500 can be
subsidized) (no more than $3,500 can be subsidized) a. Subsidized
federal government pays in school interest a. Subsidized federal
government pays in school interest b. Unsubsidized student incurs
school interest b. Unsubsidized student incurs school interest
Parent Loan (PLUS) Parent Loan (PLUS)
Slide 7
STATE need based grants and scholarships STATE need based
grants and scholarships Tennessee residents should apply by Feb.
15. Tennessee residents should apply by Feb. 15. Go to
www.tn.gov/collegepays for complete listing and qualifications!
www.tn.gov/collegepays Tennessee Student Assistance Award (TSAC)
Tennessee Student Assistance Award (TSAC) Need-based grant with an
early deadline (up to $4,000) Need-based grant with an early
deadline (up to $4,000) Ned McWherter Scholars Program ($3,000 to
be matched by Ned McWherter Scholars Program ($3,000 to be matched
by college) college) Minority Teaching Fellows Program Minority
Teaching Fellows Program Dependent Childrens Scholarship Program
Dependent Childrens Scholarship Program Bureau of Vocational
Rehabilitation/Dept of Human Bureau of Vocational
Rehabilitation/Dept of Human Resources (up to an amount = to
tuition and fees of highest Resources (up to an amount = to tuition
and fees of highest cost state school) cost state school)
Slide 8
SOURCES OF AID College and Universities College and
Universities Civic clubs, employers, churches, private Civic clubs,
employers, churches, private organizations, (Boy or Girl Scouts)
organizations, (Boy or Girl Scouts) and companies (Wal-Mart,
Tylenol etc.) and companies (Wal-Mart, Tylenol etc.) Individuals
with money Individuals with money Minority Scholarships (search the
web) Minority Scholarships (search the web)
Slide 9
NEVER PAY ANYONE TO: SEARCH FOR SCHOLARSHIPS FOR YOU SEARCH FOR
SCHOLARSHIPS FOR YOU DO YOUR FAFSA FOR YOU DO YOUR FAFSA FOR YOU
WATCH OUT FOR SCAMS
Slide 10
Do I qualify? Need based state aid and the Hope scholarship
will be determined by FAFSA and will automatically be awarded to
qualifying students. Need based state aid and the Hope scholarship
will be determined by FAFSA and will automatically be awarded to
qualifying students. Merit based awards have to be applied for. Go
to www.tn.gov/collegepays and click on scholarship link to see if
you meet qualifications. Merit based awards have to be applied for.
Go to www.tn.gov/collegepays and click on scholarship link to see
if you meet qualifications.www.tn.gov/collegepays
Slide 11
What is FAFSA? FREE Application for Student Aid FREE
Application for Student Aid The FAFSA requires students and parents
to provide financial information to determine eligibility for
financial aid. Tennessee students MUST also do this annually for
the HOPE and Lottery Scholarships.*
Slide 12
When do we start? FAFSA applications for 2012 are not available
until after January 1 st. FAFSA applications for 2012 are not
available until after January 1 st. It is important to file as soon
as possible after January 1 st. It is important to file as soon as
possible after January 1 st. State grant money was gone by February
10 th last year. State grant money was gone by February 10 th last
year. We will have a FAFSA workshop here at Liberty January 14 th
from 10AM-4PM We will have a FAFSA workshop here at Liberty January
14 th from 10AM-4PM
Slide 13
Where do we start? Where do we start? Even though you can not
file your FAFSA now there are some things you can do in
preparation. Look at the copy of the FAFSA worksheet in your packet
and begin collecting required financial information for 2010. Look
at the copy of the FAFSA worksheet in your packet and begin
collecting required financial information for 2010. If you do not
already have e-mail address you need to set one up. If you do not
already have e-mail address you need to set one up. Log onto
www.pin.ed.gov. Get a PIN number for student and a parent. MAKE
SURE THE INFORMATION YOU ENTER IS CORRECT- especially SS#s write
your PIN down -you have to remember it year to year! Log onto
www.pin.ed.gov. Get a PIN number for student and a parent. MAKE
SURE THE INFORMATION YOU ENTER IS CORRECT- especially SS#s write
your PIN down -you have to remember it year to
year!www.pin.ed.gov
Slide 14
Whose Financial Info is Needed? Unless a senior can answer yes
to one of the questions in Section 2 of the FAFSA worksheet they
will have to supply parental financial information. Unless a senior
can answer yes to one of the questions in Section 2 of the FAFSA
worksheet they will have to supply parental financial information.
What if What if Divorced- use parent that student lives with most
Divorced- use parent that student lives with most
Divorced/remarried- same as above but include step- parents income.
Divorced/remarried- same as above but include step- parents income.
Live with another family member- still have to use a parents info
Live with another family member- still have to use a parents info
The senior does not have to be on the tax return of the parent
whose financials are being used. The senior does not have to be on
the tax return of the parent whose financials are being used.
Slide 15
Not sure? Ask before you file! Not sure whose income to use?
Not sure whose income to use? Not sure if student can file
independent based on questions in section 2? Not sure if student
can file independent based on questions in section 2? Not sure
about marital status because you are in the process of divorce or
recently remarried? Not sure about marital status because you are
in the process of divorce or recently remarried? Not sure about
estimating income because you have not filed taxes with new spouse?
Not sure about estimating income because you have not filed taxes
with new spouse? ASK FIRST! Errors could cause you to loose
funding!
Slide 16
FAFSA TIMELINE IN ORDER TO RECEIVE STATE AID FAFSAs NEED TO BE
COMPLETED EARLY so use estimated 2011 income based on 2010 taxes!
IN ORDER TO RECEIVE STATE AID FAFSAs NEED TO BE COMPLETED EARLY so
use estimated 2011 income based on 2010 taxes! IF There are MAJOR
changes in income from last year to this year make a best estimate.
You can make changes after this years taxes are filed. IF There are
MAJOR changes in income from last year to this year make a best
estimate. You can make changes after this years taxes are filed.
Eligibility is based on 2011 taxes. There is a process for
reporting special circumstances such as recent changes of income
that will not be reflected on taxes and unusually high medical
expenses that decrease disposable income. See Mrs. Smith if this
applies to you. Eligibility is based on 2011 taxes. There is a
process for reporting special circumstances such as recent changes
of income that will not be reflected on taxes and unusually high
medical expenses that decrease disposable income. See Mrs. Smith if
this applies to you.
Slide 17
What next? Once you have submitted FAFSA with estimated income
it needs to be updated as soon as 2011 information is available.
Once you have submitted FAFSA with estimated income it needs to be
updated as soon as 2011 information is available. New this year:
Updates must be made using the IRS Data Retrieval function in the
FAFSA application. This is not available until Feb. 1 st. New this
year: Updates must be made using the IRS Data Retrieval function in
the FAFSA application. This is not available until Feb. 1 st. This
data will be available 3 days after filing electronically and about
10 days after filing with paper form. This data will be available 3
days after filing electronically and about 10 days after filing
with paper form.
Slide 18
Next steps! Look for your SAR to be e-mailed to you. Your SAR
will include your EFC (expected family contribution). This is an
index not a price. Look for your SAR to be e-mailed to you. Your
SAR will include your EFC (expected family contribution). This is
an index not a price. Each school that you listed on your FAFSA
will send an award letter stating how much aid you will receive.
Each school that you listed on your FAFSA will send an award letter
stating how much aid you will receive. Pay close attention to what
type of aid is listed- loans have to be paid back. Pay attention to
aid that is renewable each year and what is one year only. Pay
close attention to what type of aid is listed- loans have to be
paid back. Pay attention to aid that is renewable each year and
what is one year only.
Slide 19
Review your Award Notification Letter from the colleges to
which you sent your FAFSA. Some Award Notification Letters are sent
via the web. Review your Award Notification Letter from the
colleges to which you sent your FAFSA. Some Award Notification
Letters are sent via the web. Compare each colleges award to its
direct costs (tuition, room, food). Direct Cost Award = what you
will owe. Compare each colleges award to its direct costs (tuition,
room, food). Direct Cost Award = what you will owe. (Cost of
attendance)COA- includes everything from toilet paper to text books
so do not let that number scare you. It is NOT the cost of tuition.
(Cost of attendance)COA- includes everything from toilet paper to
text books so do not let that number scare you. It is NOT the cost
of tuition.
Slide 20
Respond to your Award Notification Letter within the required
time frame. Respond to your Award Notification Letter within the
required time frame. Send any required documents as soon as
possible to the college you plan to attend. If your FAFSA is
selected for verification the college will ask you submit tax
transcripts from IRS (unless you used IRS data retrieval), W-2s or
other financial information. Send any required documents as soon as
possible to the college you plan to attend. If your FAFSA is
selected for verification the college will ask you submit tax
transcripts from IRS (unless you used IRS data retrieval), W-2s or
other financial information. Develop a relationship with the
financial aid office. DO NOT wait until the last second to respond
to requests from financial aid! Develop a relationship with the
financial aid office. DO NOT wait until the last second to respond
to requests from financial aid!
Slide 21
The FAFSA may be sent to as many as ten schools. Tennessee
residents need to list a Tennessee school on the FAFSA even if they
plan to go out of state. The FAFSA may be sent to as many as ten
schools. Tennessee residents need to list a Tennessee school on the
FAFSA even if they plan to go out of state. List the school that
you are most likely going to attend first. List the school that you
are most likely going to attend first. The first school listed will
get HOPE, PELL and other grant money. The first school listed will
get HOPE, PELL and other grant money. If you change your mind you
have to back into your FAFSA and make the other school your first
choice. If you change your mind you have to back into your FAFSA
and make the other school your first choice.
Slide 22
FAFSA TIPS Make an appointment to get taxes filed ASAP. Make an
appointment to get taxes filed ASAP. Update estimated income with
2011 information as soon as it is available Update estimated income
with 2011 information as soon as it is available If parents are
divorced use financial information for parent that you stay with
most. If parents are divorced use financial information for parent
that you stay with most. If divorced parent is remarried you must
include stepparents financial information as well. If divorced
parent is remarried you must include stepparents financial
information as well. If parent is married they need to file married
filing jointly If parent is married they need to file married
filing jointly
Slide 23
More tips As your different tax forms and income reports come
in put them in a file where they can be easily found. After you
submit your FAFSA colleges may ask you to verify the information in
it. As your different tax forms and income reports come in put them
in a file where they can be easily found. After you submit your
FAFSA colleges may ask you to verify the information in it.
Slide 24
HELPFUL WEB SITES and RESOURCES Your packets include a FAFSA
worksheet to help you prepare for filing and to help you understand
what information you will need. Please read through all materials.
Many online resources are provide to help you with the financial
aid process.
Slide 25
If you have any questions contact Suzie Smith @ 410-6457
[email protected]
