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Paying for College 2007-08

TheFinancial Aid Process

The Illinois Student Assistance Commission is a non-profit state agency, committed to promoting equal access to quality postsecondary education. In addition to administering over $400 million in scholarships and grants, we have created a one-stop trusted source for college information, College Zone.

About ISAC

Financing College

“Can I afford it?”

“How much will it cost?”

“What is financial aid?”

“FAFSA, when to apply?”

“Where can I get it?”

“Who can help?”

The Power of Education

Min. wage in IL: $ 6.50 hr

= $243.75 week

= $975 month

= $11,700 yearSource: Bureau of the Census; Bureau of Labor Statistics (2006).

Ways to Pay for College

Start early…

• Financial Aid Programs

• 529 Savings & Prepaid Tuition Programs

• Employer Tuition Reimbursement Plan

• Tuition Benefits

• Tuition Payment Plans

These funds may be merit-based, need-based, or non need-based.

There are two basic types of financial aid.

Type of Financial Aid

gift aid

self-helpaid

Grants

Scholarships

Work-Study

Loans

Sources of Financial Aid

Financial aid comes from a variety of sources.

1.Federal Government

2.State Government

3.College (Institutional Aid)

4.Outside/Private Sources

Illinois Student Assistance Commission (ISAC) - www.collegezone.com

The state agency that administers state and federal grants and scholarships, college savings and

prepaid tuition programs, and educational loans

U.S. Department of Education (ED) -www.ed.gov

The federal agency that provides college funding in the form of grants, scholarships, and educational

loans

Sources of Financial AidThe ‘Must-Get-To-Know’ Financial Aid Sources

The Big ThreeFinancial Aid Programs

A complete FAFSA is required.Federal Pell Grant – $4,310 *

Federal Supplemental Educational Opportunity Grant (FSEOG) – $4,000 *

State of Illinois Monetary Award Program (MAP) Grant – $4,968 *

Total = $13,278* Maximum award for 2007-08

Monetary Award Program (MAP)* – $4,968

Silas Purnell IL Incentive for Access (IIA) Grant* – $500

Illinois Veteran Grant (IVG)**– 4 yrs

Illinois National Guard Grant (ING)** – 4 yrs

Grants for Dependents of Police, Fire, and Correctional Officers** – 4 yrs

Bonus Incentive Grant (BIG) Program** – $440

* FAFSA Required

** Program Application Required

Illinois Student Assistance CommissionState of Illinois Financial Aid Programs

Merit Recognition Scholarship (MRS) – $1,000• Not funded in 2007-08

Robert C. Byrd Honors Scholarship – $1,500

Illinois Future Teacher Corps (IFTC) Program** – $5,000/$10,000

Minority Teachers of Illinois (MTI) Scholarship Program** – $5,000

Illinois Special Education Teacher Tuition Waiver Program (SETTW)** – up to 4 yrs

Illinois Student Assistance CommissionState of Illinois Financial Aid Programs

* FAFSA Required

** Program Application Required

Federal Pell Grant* – $4,310

Federal Supplemental Education Opportunity Grant (FSEOG)* – $4,000

Federal Academic Competitiveness Grant (ACG)* – $750 1st yr, $1300 2nd yr

Federal Science & Mathematics Access to Retain Talent (SMART) Grant* – $4,000

U. S. Department of EducationFederal Financial Aid Programs

* FAFSA Required

** Program Application Required

U. S. Department of Education Federal Academic Competitiveness Grant (ACG)

• Must be a U.S. Citizen

• Be a Federal Pell Grant recipient

• Be enrolled full-time in a 2 or 4-year degree program

• Grant may be used for any educational expense, such as tuition and fees, room and board, and living expenses

* FAFSA Required

New!

U. S. Department of Education Federal Academic Competitiveness Grant (ACG) • Maximum award amount:

Up to $750 first-year students

Up to $1300 second-year students

• Have completed a rigorous (as defined by a state or local educational agency) program of study of at least:

4 years of English 3 years of Math 3 years of Science 3 years of Social Studies 1 year of a Foreign Language

New!

* FAFSA Required

Federal Science and Mathematics Access to Retain Talent (SMART) GrantMust be a U.S. Citizen

Be a Federal Pell Grant recipientMaximum award amount of $4,000 per academic year.  Be enrolled full-time at the third and fourth year academic level pursuing a major in mathematics, science (including physical, life and computer sciences) technology, engineering or critical foreign language Must maintain a 3.0 GPA for coursework required for the majorThe college certifies eligibility for the SMART grant

* FAFSA Required

New!

Federal Work-Study

Need-based employment program for undergraduate and graduate students

Provides jobs on- and off-campus

Students earn at least current minimum wage

Students are permitted to work a flexible schedule

* FAFSA Required

** Program Application Required

Federal Loan ProgramsTypes

Federal Perkins Loan - 5% fixed ,9 month grace period Federal Stafford Loans - 6.8% fixed, 6 month grace periodFederal PLUS Loan - 8.5% fixed, within 60 days after disbursement

ConsiderSubsidized vs. UnsubsidizedInterest rateGrace period

KnowBorrowers Rights & ResponsibilitiesLoan RepaymentDeferment & ForbearanceEntrance & Exit Counseling

* FAFSA Required

** Program Application Required

The earlier you start, the easier it will be to accomplish your educational goal.

Do your research to make an informed decisionProject your costsDetermine what you can affordGet started

Saving for College

NOTE: Use the interactive calculators on www.collegezone.com

• 529 Prepaid tuition plans, such as College Illinois!, allow you to prepay tuition at a locked-in price, protecting you from future tuition inflation and the uncertainty of the stock market.

• 529 College savings plans, such as Bright Start®, allow you to save money for college. You earn money over time through interest. Your savings, along with the savings of others, are invested collectively on your behalf. Earnings may fluctuate with the performance of the market.

• Both types of 529 plans have federal and state tax benefits that other types of investments do not have.

529 Plans

Institutional Aid & Private Sources• College

Financial Aid OfficeWeb SiteAcademic Department

• PrivateLocal, state and national agencies, associations and organizationsEmployers

• Trusted sources of informationISAC – www.collegezone.comMapping Your Future – www.mapping-your-future.orgU.S. Department of Education – www.ed.gov FAFSA on the Web – www.fafsa.ed.gov

How to Apply for Financial Aid

Don’t underestimate your options.

Never assume you’re too poor to attend college or too rich to receive some type of financial aid.

Don’t become overwhelmed by the price of attending college, it may not be what it seems.

How to Apply for Financial AidSubmit All Forms Required by the College

FAFSA

Institutional Forms

Other

Note: Communicate with each college to inquire about steps to a ‘complete application’.

Free Application for Federal Student Aid

www.fafsa.ed.gov

The FAFSA information is used to calculate the Expected Family Contribution (EFC) and determine the student’s eligibility for most federal and state assistance.

How to Apply for Financial AidThe Free Application for Federal Student Aid

How to Apply for Financial AidOther Things to Know About the Process

Apply early.

Information reported on the FAFSA is confidential and is used ONLY to determine financial aid eligibility.

You may be asked to submit documentation to the financial aid office for verification purposes.

Supplemental applications or forms may be required.

Keep track of DEADLINES!!!

Keep a copy of everything you submit.

Meet the deadlines!

Check college deadlines

January 1, 2008First date to submit FAFSA

No Later than August 15, 2008*MAP Grant - Continuing Student Applicants

No Later than September 30, 2008*MAP Grant - First Time Student Applicants

June 30, 2009Federal Pell Grant

* Note: This date is subject to change and is based on funding by the Illinois General Assembly. Deadlines are earlier if funds are depleted.

Dependency StatusINDEPENDENT students fit into at least one of

the categories listed below:

Born before January 1, 1985 (during the 2007-08 academic year)

Married Graduate or professional studentHave legal dependents other than a spouse, for whom you provide more that 50% of their supportOrphan or ward of the court (or were until age 18)Veteran or currently serving on active duty for other than training purposes

Note: If the student is DEPENDENT, report student and parent income and assets on the FAFSA. Not living with parents does not make the student independent.

Determining Financial Need

A need analysis formula determines the student’s Expected Family Contribution (EFC).

The U.S. Department of Education calculates financial need using a formula established by Congress called Federal Methodology.

A comparative measure of how much a family can be expected to contribute toward the cost of a student’s education for a year.

Used to determine a student’s eligibility for most federal and state assistance.

After completing the FAFSA, the EFC is shown on the Student Aid Report (SAR) and Institutional Student Information Record (ISIR).

Tuition & Fees

Room & Board

Transportation

Books & Supplies

Miscellaneous Living Expenses

Cost of Attendance (COA)

+

What are the costs?

To Determine Financial Need

To Determine Financial Need Examples

Option

AOption

B

COA EFCFinancial

Need

Financial Aid Awards

The financial aid administrators at the colleges that you are considering will ‘package’ all available financial aid options and send them to you for consideration.

What is the total cost of attendance?

What is the Expected Family Contribution?

What is your financial aid eligibility?

How is your financial need being met?

Was your financial need met?

What is the out-of-pocket cost?

Financial Aid AwardYou too should have ‘Selection Criteria’

A few points to take into account before you commit to a school:

Type of Institution

Available Financial Aid

Cost of Education vs. Earning Potential

Academic Program Ranking

Residential vs. Commuter

Other Financing Options

• Payment Plan

• Pre-Payment Discounts

• PLUS Loan

• Alternative Loans

• Military Service

Steps for Students to Remember

1. Start planning for the future

2. Complete the application process

3. Receive, revise and edit the Student Aid Report

4. Consider award letters

5. Respond to college offers

6. Advise school(s) of outside scholarships

7. Renew the FAFSA every year!

Free tools on www.collegezone.com Map of IL Colleges Interactive Calculators

IllinoisMentor

Avoid Scholarship Scams While most scholarship services are legitimate, others may be fraudulent and charge a lot of money for little information.

Please view with caution any service that requires you to pay more than a nominal fee.

Visit www.collegezone.com to access reputable scholarship search services.

Report Scholarship Scams

• Better Business Bureau

• High School Counselor

• Financial Aid Office

• Friends

Remember…

Plan ahead

Apply early

Read CAREFULLY

Meet deadlines

Keep copies

Illinois Student Assistance Commission

(800) 899-ISAC (4722) www.collegezone.comcollegezone@isac.org

U.S. Department of Education(800) 4 FED AIDwww.ed.gov

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