Piecing Together… Financial Aid & You!

What will be discussed:Types of AidEligibility RequirementsCost of AttendanceApplying for Financial AidScholarshipsAdditional Information

Types of AidTypes of aid may be divided into two categories: Gift Aid, such as grants and scholarships, does

not require repayment. Scholarships generally are awarded on the basis of academic achievement or for services rendered, while grants are typically awarded based on financial need.

Self-help aid, as the name implies, is not “free money” like gift aid. It comes in the form of loans and employment programs. A loan is borrowed money that the borrower must repay with interest. Employment programs give students the opportunity to work and earn money to assist with educational expenses.

Federal Financial Aid What is Federal Financial Aid? Financial aid is a variety of federal

programs including grants, loans, and work-study.  These programs are available to assist students in funding education beyond high-school.  The funds may be used for educational expenses including tuition, fees, room, board, books, supplies, transportation, and personal expenses.   

General Eligibility Requirements

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

Must be at least half time to receive loans Must be pursuing a degree, certificate, or

other recognized credential Must be a U.S. citizen or eligible non-

citizen Must be registered with Selective Service

(if male and required)

General Eligibility Requirements (cont.)

May not have eligibility suspended or terminated due to being convicted of a drug-related offense

Must have valid Social Security Number (SSN) 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 (SAP)

Cost of Attendance(COA)

Cost of Attendance (COA) is the estimated amount it will cost for a student to attend an institution for one academic year. It includes tuition and fees, room and board, books and supplies, transportation, and personal miscellaneous expenses. Schools typically use estimates based on the average amounts spent by students. Only some of the amounts, such as tuition and fees, will actually be paid to the institution. Students and parents may obtain COA figures from different institutions to determine affordability and plan a budget. Cost of Attendance can differ greatly based on the institution the student plans on attending and where the student plans to live while attending. Financial Aid Administrators use Cost of Attendance figures in part to determine a student’s eligibility for financial aid.

Federal Pell Grant Awarded to eligible undergraduates

who have not already earned a bachelor’s degree

Actual award amount based on Estimated Family Contribution (EFC) and enrollment status

Maximum award for 2008-09 = $4,731

Federal Supplemental Educational Opportunity Grants

(FSEOG)Eligible students:

Federal Pell Grant recipients Demonstrate “exceptional financial

need” Award amounts are determined by

the institution

Academic Competitiveness Grant Program (ACG)

An eligible student may receive an Academic Competitiveness

Grant of $750 for the first academic year of study and $1,300

for the second academic year of study. To be eligible for each

academic year, a student must: Be a U.S. citizen; Be a Federal Pell Grant recipient; Be enrolled full-time in a degree program; Be enrolled in the first or second academic year

of his or her program of study at a two-year or four-year degree-granting

institution;

Academic Competitiveness Grant Program (ACG) (cont.)

Have completed a rigorous secondary school program of

study (after January 1, 2006 if a first-year student, and after

January 1, 2005 if a second-year student);

If a first-year student, not have been previously enrolled in an

undergraduate program; and, if a second-year student, have at

least a cumulative 3.0 grade point average on a 4.0 scale.

NATIONAL SMART GRANT PROGRAM (SMART)

An eligible student may receive a National SMART Grant of $4,000 for each of the third and fourth academic years of study.

Be a U.S. citizen; Be a Federal Pell Grant recipient; Be enrolled full-time in a degree program; Major in physical, life or computer science,

engineering, mathematics, technology, or a critical foreign language

Have at least a cumulative 3.0 grade point average on a 4.0 scale in the coursework required for the student’s major.

FEDERAL WORK STUDY(FWS)

Provides jobs on or off campus to eligible students.

Students may work in a college department or a community service agency.

Funds are limited.

LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP (LEAP)

Students must be Louisiana residents. Awards are based on need and the

availability of funds. Available only to eligible

undergraduates enrolled full-time at thepoint of disbursement who have an overall grade point average (GPA)of 2.0 or higher.

LA Go GrantNew state funded grantAvailable to Pell eligible first-time

freshmen who are Louisiana residents

Award amount is prorated based on enrollment. Maximum annual award is $2,000. Lifetime award amount is $10,000

FAFSA serves as the application

Stafford Loans Subsidized: Must demonstrate “need.” Need is

calculated based on the following formula: COA – EFC – Other resources = Need

Unsubsidized: Non-need based Base annual loan limits (combined subsidized

and unsubsidized amounts): $3,500 sub & $2000 unsub for 1st year undergraduates $4,500 sub & $2000 unsub for 2nd year undergraduates $5,500 sub & $2000 unsub for each remaining

undergraduate year

Stafford Loans (cont.) Additional unsubsidized loan eligibility available for

independent undergraduates and dependent students whose parents are unable to borrow a PLUS Loan based on credit: $4,000 per year for 1st and 2nd year undergraduates $5,000 per year for remaining years of

undergraduate study Aggregate Stafford loan limits:

$31,000 in combined subsidized and unsubsidized loans for dependent undergraduates

$57,500 in combined subsidized and unsubsidized loans for independent undergraduates and dependent undergraduates with parents unable to borrow a PLUS loan. A maximum of $31,000 of this amount may be subsidized.

Parent PLUS loans Low-interest loan made to parents of

undergraduate dependent students by private lenders.  An 8.5% fixed interest rate applies to all loans disbursed after July 1, 2006.   A variable rate not to exceed 9% applies to all loans disbursed before July 1, 2006.

Available to creditworthy parents regardless of financial need. A credit check will be performed by the selected lender.

Amount borrowed may be up to the cost of education as determined by the school, less any other financial aid and resources.

Loan origination fees are charged by the lender.    Repayment begins 60 days after loan is disbursed.

“TEACH” GrantsNew Program for the 2008-2009

academic year for students who are interested in becoming math and science teachers in schools serving low income families

All conditions must be met or the grant will become an unsubsidized Federal Stafford Loan

FAFSA 4casterwww.fafsa4caster.ed.gov

FAFSA4caster will: Automatically generate a Federal

Student Aid PIN for use when signing the FAFSA

Instantly calculate eligibility for federal student aid

Generate a FAFSA—a FAFSA populated with student FAFSA4caster data will be available when the student is ready to file the official FAFSA

Applying for Financial Aid The Free Application for Federal

Financial Aid (FAFSA) may be filed online at www.fafsa.ed.gov

There is a section on the website that tells you what you need to have before filing.

www.fafsa.ed.gov

The First Page

Dependency Status Questions

Parent Section

School Code

ACG eligibility certification

Signature Page

Confirmation Page

School Application Process Once your school receives the FAFSA, the

financial aid administrators will process the FAFSA and award your financial aid package. In some cases you will be required to provide additional information and/or documentation to the school. The federal processor randomly selects 30% of all FAFSA’s to be verified by the school.

It is a good idea to be familiar with the financial aid process at your school.

How much aid can I get?In general, depends on your financial

need. Financial need determined by Expected

Family Contribution (EFC) and cost of attendance (COA)

EFC comes from what you report on FAFSA

COA is tuition, fees, room and board, transportation, etc.

COA – EFC = financial need

Need Varies Based on Cost

X

Y

Z

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

1

2

3

EFC EFC

Scholarships Students should contact the school they plan

on attending to determine what scholarships are available and how to apply. This information is typically also available on the school’s website.

Search for “outside” scholarships on free online search engines such as one of the following:

Fast Web, Scholarship Central, Mach 25, Collegeboard, Scholarships.com, Scholarship Coach, Go College, Broke Scholar

The Tuition Opportunity Program for Students (TOPS) provides students attending a Louisiana public college or university an amount equal to tuition at the school attended. TOPS may not cover all fees that an institution charges. Contact the school to determine how much TOPS pays and what fees (if any) it does not cover.

Eligibility Generally, only Louisiana residents who

graduate from a Louisiana high school are eligible to apply for TOPS. To receive the award, students must meet the eligibility requirements listed on LOSFA’s website.

Application The Free Application for Federal Financial Aid

(FAFSA) also serves as the application for TOPS. TOPS is a merit based program and none of the financial information on the FAFSA is used to determine eligibility for TOPS. The application deadline is July 1.

TOPS Contact InformationWebsite: www.osfa.state.la.us Address: LOSFA P.O. Box 91202 Baton Rouge, LA 70821-

9202Phone: 1-800-259-5626 ext. 1012

CalendarAfter your junior year-Begin applying

for admission. Check with the school about admission deadlines.

Spring Semester of your senior year-File the FAFSA to apply for federal aid and/or TOPS. The FAFSA is available January 1. Remember the TOPS application deadline is July 1.

Remember that you must file a FAFSA annually.

Beware of Direct Marketing Offers of Assistance

Don’t get hooked by misleading offersThe scholarship is guaranteed or

your money back.” (No one can guarantee your scholarship before it is awarded.)

“You can’t get this information anywhere else.”(Everyone has access to the same information.)

Beware of anyone who says….

“We need your credit card information to hold your scholarship.”(You should never have to give this information to legitimate providers.)

“The scholarship requires a small fee.”(Never pay a fee to get a scholarship.)

Other Misleading Offers“You are a finalist” for an award you

never applied for.(If you did not apply, it is not a legitimate offer.)

“Come to our seminar and we’ll show you how to get more financial aid. You only have to pay a small fee.”(This is a sales pitch. Don’t pay for information that you can get elsewhere for free.)

RememberYou should never have to pay:

For information about college financial aid

To apply for federal financial aid

To receive financial aid for college

Contact information:Cathy Simoneaux

Director, Office of Scholarships and Financial Aid

E-mail: cmsimone@loyno.edu www.loyno.edu/financialaid

Tiffany D. Magee Director, Office of Financial Aid & Scholarships

E-mail: tiffany.magee@ololcollege.edu www.ololcollege.edu