Financing your Education

Big Bend

Community College

Questions we will answer.

What is financial aid?

Where does it come from?

What aid is available?

Who is eligible?

How do I apply?

What is Financial Aid?

Scholarships

Grants

Loans

Employment opportunities

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)

General Student Eligibility Criteria

Must be enrolled or accepted for enrollment in eligible program of study

Must be pursuing degree, certificate, or other recognized credential

Must be US citizen or eligible noncitizen Must be registered with Selective Service (if

male)

General Student Eligibility Criteria cont.

Must have valid Social Security Number May not be in default on a federal student

loan Must not owe an overpayment of federal

grant or loan funds Must be making satisfactory academic

progress (as defined by school)

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

Definition of Need

Cost of attendance (COA) or Budget

minus Expected family contribution (EFC)

___________________________________= Need

Cost of Attendance

Tuition and fees Room and board Books, supplies, transportation, and miscellaneous

personal expenses Loan fees Study abroad costs Dependent care expenses Disability-related expenses Documented costs for a personal computer

Need Varies Based on Cost

1

2

3

YZ

EFC EFC

Cost of Attendance

(Variable)

Expected Family Contribution

(Constant)

Need

(Variable)

X

Principles of Need Analysis

To extent they are able, parents have primary responsibility to pay for dependent student’s education

Students also have responsibility to contribute to educational costs

Independent Student Definition

At least 24 years old by Dec. 31 of award year covered by the FAFSA

Married Has children or dependents (other than a spouse) for

whom the student provides more than half support Orphan or ward/dependent of the court Veteran of US Armed Forces Determined to be “independent” by financial aid

administrator based on unusual circumstances

Federal Pell Grants

Awarded to eligible undergrads pursuing first bachelor’s degree

Portable Maximum award for 2008-09 = $4,731 Academic Competitiveness Grant-has to be

Pell eligible and completed rigorous secondary classes

Federal Supplemental Educational Opportunity Grants (FSEOG)

Eligible students:

-Undergraduates pursuing first bachelor’s or professional degree

- Awarded first to students with “exceptional financial need” (students with lowest EFCs at that school)

-Priority to Federal Pell Grant recipients

Federal Work-Study (FWS) Earnings

Eligible students: Undergraduate, graduate, and professional students

Employment may be on or off campus

Federal Perkins Loans

Eligible students: Undergraduate, graduate, and professional students

-Priority to students who show “exceptional need” as defined by school

Maximum annual loan amounts:

- $4,000 per year undergrad students

- $6,000 grad and professional students

Stafford Loan

Student loans available under:

-Federal Family Education Loan (FFEL) program with funds provided by lenders

-Federal Direct Student Loan program with funds provided directly by federal government via participating schools

School determines loan eligibility and delivers loan proceeds to students

Stafford Loans

Subsidized: Must demonstrate “need” Unsubsidized: Not based on “need” Base annual loan limits (combined sub and unsub

- $ 5,500 for 1st year dependent undergrads

- $ 9,500 for 1st year independent undergrads

- $ 6,500 for 2nd year dependent undergrads

- $10,500 for 2nd year independent undergrads

- $ 5,500 for each remaining undergrad year

Stafford Loans

Additional unsub loan eligibility for independent undergrad, grad, and dependent students whose parent are unable to borrow PLUS:

-$4,000 per year for 1st and 2nd year

-$5,000 per year for remaining years of under-grad study

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– Application deadlines

FAFSA

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

Available in English and Spanish Electronically via FAFSA on the Web

FAFSA on the WEB

Web site: www.fafsa.ed.gov 2009-10 FAFSA on the Web available on or

after Jan. 1, 2009 Pre-application Worksheet: available early

November at high schools Questions follow order of FAFSA on the Web Apply as soon after Jan. 1 as income can be

estimated

PIN Registration

Web site: www.pin.ed.gov Can get PIN before Jan. 1, 2009 Not required, but speeds processing May be used by students and parents

throughout aid process, including subsequent school years

CAUTION!

Avoid being charged a fee to file the FREE application for Federal Student Aid

Completion and processing of the FAFSA are FREE

If filing via FAFSA on the Web, go directly to www.fafsa.ed.gov

Contact financial aid office for help completing the FAFSA

FAFSA Processing Results

Central Processing System (CPS) notifies student of FAFSA processing results by:-Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s e-mail address was not provided-SAR Information Acknowledgement if filed electronically via FAFSA on the Web

Where Do I Go From Here?

Obtain and review admissions and financial aid Web sites and materials for each school to which you are applying

Meet all application deadlines-Complete FAFSA and other application materials if required by school-Submit all requested follow-up documents

Investigate other sources of aid

Other Government Resources

Corporation for National and Community Service (AmeriCorps) www.americorps.gov

Veteran’s benefits-www.gibill.va.gov ROTC scholarships or stipends Bureau of Indian Affairs (BIA) grants State Division of Vocational Rehabilitation US Dept. of Health and Human

Services(HHS) Bureau of Health Professions-www.bhpr.hrsa.gov/dsa

Other Sources of Funds

State grants, scholarships, loans, and work programs (usually only need the FAFSA)

State Need grant and State Work Study in WA School need-based and non-need-based programs

(academic, athletic and other talent-based scholarships and grants)

Private business scholarships (Wal-Mart, Gates Foundation, etc)

Civic organization scholarships (Elks, PTA, etc)

Private Scholarship Search

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

www.srnexpress.com GoCollege: The Collegiate Websource:

www.gocollege.com

Private Scholarship Search

Local library resources Local businesses and civic organizations Parents employers High school counselor or career office

Avoid Being Scammed

To check legitimacy of scholarship search services or individual, for information about financial aid scam, and tips to avoid being scammed visit these Web sites:

US Dept. of Education: www.studentaid.ed.gov/students/publications/lsa/index.html

Federal Trade Commission: www.ftc.gov/bcp/conline/publs/alerts/ouchart.htm

Better Business Bureau: www.bbb.com

Questions?

André Guzman (509) 793-2031

Rita Delgado (509) 793-2032

José A. Esparza (509) 793-2072

BBCC Financial Aid (509) 793-2034

BBCC toll free #: (877) 745-1212

Big Bend Community College