Discussion Topics What is financial aid? Cost of Attendance
Expected Family Contribution Financial Need Types of Aid Filling
out the FAFSA (FREE Application for Federal Student Aid) Special
Circumstances Mikes Tips
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What is Financial Aid? Assistance to help make college more
affordable for you and your family Money designed for educational
expenses
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What Financial Aid is not
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How Refund Checks Work $25,000Cost of Attendance 20,000
Tuition/Room and Board =*$5,000Refund Check *Based off of a full
financial aid package
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Cost of Attendance(COA) Direct costs are the costs billed
directly to your student account Tuition & Fees Room &
Board Billed twice a year
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Cost of Attendance(COA) Indirect Costs: Books/Supplies
Personal/Miscellaneous Transportation
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Sample Cost of Attendance(COA) In State Outof-State Tuition
& Fees$10,280 $29,540 Room & Board$7,986 $7,986 Books &
Supplies$1,362 $1,362 Pers/Misc$2,340 $2,340 Total $21,968*
$41,228* *This is the maximum amount of financial aid you can
receive
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Costs of Attendance 2012-2013 Wayne County Community College
$9,314 Saginaw Valley State University $18,072 Wayne State
University $22,390 Michigan State University $24,670 University of
Michigan-Ann Arbor $25,848 University of Wisconsin $41,054
University of Chicago $61,390 Harvard University $62,950
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Cost of Attendance Trivia TRUE or FALSE Cost of Attendance at a
university will be the same for each incoming freshman. FALSE
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Questions????
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Expected Family Contribution (EFC) The amount a family is
expected to contribute to their childs education. Federal formula
determined by information provided on FAFSA Parent contribution +
Student contribution EFC will be the same for each school Can range
anywhere from 0-99,999
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Financial Need $22,150 Cost of Attendance 4,150EFC
=$18,000Financial Need This is what your financial aid award is
based on.
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Types of Aid Scholarships Grants Work Study Loans
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Types of Aid: Grants Free money Awarded on the basis of
financial need Must complete FAFSA to be considered for federal
funds. Pell Grant, etc. May have to complete additional
documentation for institutional funds
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Types of Aid: Scholarships Free money Awarded on basis of
skill, merit, unique talent, or financial need Have to complete
FAFSA to be considered for most scholarships The sooner you apply,
the more money is available to offer Apply! Apply! Apply!
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Types of Aid: Scholarships Use resources available online
Google www.fastweb.com www.scholarships.com www.zinch.com
www.collegetoolkit.com www.collegeboard.org
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Scholarship Scams Be wary of scholarship scams! Key signs of a
scam are: Scholarships that request an application fee Guarantees
that youll win a scholarship Everyone is eligible, there should be
some criteria Excessive hype or pressure to apply No telephone
number Asking for checking/savings account or Soc Sec No. Website:
www.finaid.org/finaid/scams.html
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Scholarship Tips Set personal goals for each week, month, etc.
Small scholarships add up! Use some of the same admissions essays
for scholarship essays Research available opportunities in your
community Companies may have scholarships available to children of
employees Apply at each school youre interested in
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Understanding your Scholarships Is there a minimum GPA I must
maintain? Are there a certain amount of credits I need to take each
semester? Is this scholarship renewable each year? What exactly
does this scholarship cover? After this scholarship is applied,
what are the remaining costs that Im responsible for?
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Scholarship Trivia TRUE or FALSE I should start applying for
scholarships before I am even accepted into a college TRUE
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Types of Aid: Loans Borrowed money Federal loans have fixed
interest rates Loans are in students name and do not affect the
parent Invest for the future, borrow wisely, only what is needed
Have to complete FAFSA to be offered most loans
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Types of Financial Aid: Loans Loan Comparison Interest Rate
Length Grace Period Forgiveness Federal Student Loan 3.4-6.8%10-25
years6-9 monthsIn certain occupations Auto Loan2.49-25%5-7
yearsNone
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Repayment Options Income Based Repayment Income Contingent
Graduated Repayment Plan Deferment Forbearance
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Student Loan Trivia TRUE or FALSE If I drop below half time
enrollment at my institution, student loans will go into repayment.
TRUE
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Types of Aid: Work Study Money that has to be earned Students
have to search and apply for job Will earn paycheck to use for
educational expenses Government pays a portion of wages Hours
capped at 20 per week
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Sources of Financial Aid FEDERAL GOVERNMENT Largest Source
Primarily awarded on need STATE GOVERNMENT Residency Requirements
State Deadlines Need and Merit Based INSTITUTIONAL PRIVATE
Businesses and Foundations
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Common Federal Aid Programs Federal Pell Grant Federal
Supplemental Educational Opportunity Grant(FSEOG) Federal Perkins
Loan Federal Work Study Subsidized and Unsubsidized Loans Parent
PLUS Loan
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Questions??
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Filling out the FAFSA: Why? The only way to determine EFC which
in turn determines your financial aid eligibility This single
application can be sent to 10 different schools Can be used for
multiple sources of aid
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Filling out the FAFSA: Who? Each student needs to fill out a
separate FAFSA Parental data can be transferred for multiple
children Parent(s) Both parents (biological, step or adoptive
parent) if married Only one parent if single, divorced, or
separated(the one the student lives with) Expect to use same parent
each year
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Filling out the FAFSA: Dependent vs. Independent Majority of
incoming students are dependent If dependent, parental info must be
provided Student may be independent if: Married 24 years of age or
older Have a dependent they provide more than 50% support for
Foster care Legal guardianship
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Filling out the FAFSA: Who is Eligible? U.S. Citizens Eligible
noncitizen Permanent U.S resident with Permanent Resident Card
Conditional permanent resident with Conditional Green Card Parents
do not need a social security number but student must have one
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Filling out the FAFSA: When? 2013-2014 Application will be
available Jan. 1 st, 2013 State deadline for scholarships is March
1 st Check with your school for their deadline, if deadline not met
you will be 2 nd priority or later Must be completed every
year
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Completing the FAFSA: How? www.fafsa.gov www.fafsa.com
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Filling out the FAFSA: How? 2012 Tax Return/2011 for estimation
Bank Statements/Asset Statements Investments, Rental Property
Disability, Child Support Department of Education PIN Student AND
one parent www.pin.ed.gov
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Potential Errors Wrong Social Security Number Number of
household members in college Divorced/remarried parental
information Rental property and investment net worth Untaxed income
Income earned by parents/stepparents Income taxes paid Household
size
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IRS Data Retrieval The IRS Data Retrieval Tool will allow FAFSA
on the Web applicants to request and retrieve their income and tax
data from the IRS Available February 2013 for the 2013-2014 cycle
Electronic tax returns are typically available in 1-2 weeks, paper
tax returns typically take 6-8 weeks
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Verification Earliest youll hear from a school is March
Additional documentation will most likely be requested so expect to
hear back from the school youre admitted to within a month 1040
forms, pay stubs, household/asset questionnaire Must respond to
each school individually If you never provide tax returns, its as
if you never filled out the FAFSA!
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Special Circumstances Change in Employment, death, marital
status, one- time significant benefit, large out-of-pocket medical
expenses, etc. Cannot report on FAFSA Send explanation to financial
aid office at each college All special circumstances will be
reviewed and a FINAL decision will be made Cannot appeal this
decision to Dept of ED
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Mikes Tips Payment Plan- bill is due soon as student starts
class Private scholarships are important. Any entity that you
frequent, see if they offer scholarships Set concrete schedule for
filling out scholarships Satisfactory Academic Progress Only borrow
whats needed Spend refund check wisely
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College Goal Sunday!!!! Free help to fill out FAFSA February 10
th 2-4pm Locations available all around MI
www.micollegegoal.org
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Maize and Blue Days Starting in Mid January Tues and Thurs from
1-7pm University of Michigan Detroit Office 3663 Woodward Ave Suite
190 (313)872-7068
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Thank you!!
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For More Information Michael Davis [email protected]
734-763-4124 University of Michigan Office of Financial Aid
www.finaid.umich.edu Federal Student Aid www.studentaid.ed.gov or
www.students.gov www.studentaid.ed.govwww.students.gov Michigan
Office of Scholarships and Grants 1-888-4-Grants or
www.michigan.gov/studentaid