Calvary2college financial aid overview



calvary2college financial aid overview Funding Your College EducationThe college financial aid process has become, to many students, a very overwhelming part of the college enrollment journey. This lesson seeks the take the “fear factor” out of this part of the journey with good information students can use in their discussions with college admissions counselors and financial aid offices. What is financial aid?Answer: Financial aid is basically money given or loaned to you to help you pay for college.For you to be considered for financial aid, you must apply for it. It is not the same as applying for admission to the university. The financial aid application process usually has its own forms, deadlines, and requirements. You do not have to wait until you are admitted to apply for financial aid, but the colleges will not give you an award letter unless you are accepted. What are the sources of financial aid?The federal government (the largest source)State governmentsColleges & universitiesPrivate organizations (companies, clubs, faith-based organizations)Financial Aid Terms to Know (aka – Alphabet Soup )The Free Application for Federal Student Aid (FAFSA) This is the free online application that collects demographic and financial information about you and your family. FAFSA is used to calculate the Expected Family Contribution (EFC). FAFSA opens up January 1, 2015. Ideally, your parents should complete FAFSA no later than March 1, but the earlier the better.The IRS now allows parents to upload their tax information directly into FAFSA. The IRS Data Retrieval Tool will be available in early February. Deadlines for 2014-2015Federal DeadlineOnline applications must be submitted by midnight Central Time,?June 30, 2015.Any corrections or updates must be submitted by midnight Central Time,?September 19, 2015.State DeadlineFlorida - May 15, 2014 - date processed.College DeadlineCheck with the college(s) you are interested in attending. You may also want to ask your college about its definition of an application deadline - whether it is the date the college receives your FAFSA, or the date your FAFSA is processed.VerificationVerification is the process of confirming that information received on the FAFSA is correct. The federal government requires all colleges and universities to verify data reported by students and their parents on the FAFSA. Approximately 30% of all FAFSA’s submitted will be flagged for verification.Expected Family Contribution (EFC)The EFC is the number that is used to determine your eligibility for federal student aid. EFC can also be used by states and the colleges to determine if you qualify for need-based aid. Your EFC will be reported on your Student Aid Report (SAR). The SAR is typically emailed to the student’s email account.EFC is calculated from the results of financial information you and your family provides in the FAFSA. The EFC remains the same regardless of the college.FAST FACT: While you may not qualify for need-based federal grants, you could qualify for need-based money at your college of choice.Professional JudgmentRefers to the authority of a school’s financial aid administrator to make adjustments to the data elements on the FAFSA and to override a student’s dependency status. The school cannot change the need analysis formula itself or make direct adjusments to the EFC. Cost of Attendance (COA)Cost of attendance is the estimated amount it will cost you to go to a specific college (usually a yearly figure).COA includes the following divided into two categories:Direct Costs (what the college will bill you for)TuitionCourse/Lab FeesRoomBoard (meals)Indirect Costs (may not be charged by the college on you bill)BooksSuppliesTransportationLoan feesMiscellaneous personal expenses (cell phone bills, rent, food, clothes, etc.)COST OF ATTENDANCE (COA)EXPECTED FAMILY CONTRIBUTION (EFC)=FINANCIAL NEEDNet PriceNet price is what you will pay after grants and scholarships are subtracted from the institutions cost of attendance. You do not pay back grants and scholarships – free money!! Net Price Calculators: By federal law now, college and universities must provide a net price calculator on their financial aid websites. This will provide you with an estimated financial aid award based on your parents’ and your financial information. Be sure to do this process with your parents. You will need their tax information. This gives you an early indication of what you may need to cover in either student loans or out-of-pocket funds.Sticker Price – Grants/Scholarships (free money) = Net PriceTypes of Financial AidGrants (Gift Aid)Federal Pell Grant – amounts can change annually. For the 2014-15 award year (July 1, 2014- June 30, 2015), the maximum award will be $5,730. Federal Supplemental Educational Opportunity Grant (SEOG) – Award amounts vary from $100-$4000 a year depending on financial need, when you apply, the amount of other aid received, and the availability of funds at the college. Federal TEACH Grant – for educators enrolled in educational institutions that participate in the TEACH Grant Program.Florida Access to Better Learning and Education (ABLE) Grant Program – provides tuition assistance to Florida undergraduate students enrolled in degree programs at eligible private Florida colleges (see list on website).Florida First Generation Matching Grant – for first-generation college students with financial need.Florida Resident Access Grant (FRAG) – for those attending an eligible private, non-profit Florida college or university (e.g. Clearwater Christian College, Palm Beach Atlantic, & Southeastern University).Florida Student Assistance Grant (FSAG) – need-based aid for all Florida studentsFlorida Jose Marti Scholarship Challenge Grant – a need-based, merit scholarship for students of Hispanic origin (requires an application by April 1).For further details on all Florida Grants, visit SSFAD/home/uamain.htmScholarships (Gift Aid)Florida Bright Futures Program – see the Bright Futures website. You will complete the Florida Financial Aid Application which opens December 1. This application is used for other Florida aid programs as well. Florida Incentive Scholarship Program – for National Merit or National Achievement FinalistsFlorida Scholarship for Children and Spouses of Deceased or Disabled VeteransFederal GI Bill and Yellow Ribbon Program – available to dependent of veterans serving post 9/11. (see benefits.gibill/yellow_ribbon.asp)Other national & local scholarship programsSee Naviance Family Review list in the “Next” magazine Federal Work Study Program (Self-Help Aid)Under this program, you are eligible for campus employment that must pay you at least the federal minimum wage. However, you could earn more depending on the type of work and the skills required for the position.Federal Loans (you must pay back)Need-based LoansFederal Perkins Loan Program – the college determines your eligibility depending on financial need and the availability of funds at the college. These go fast – first come, first served.Federal Direct Subsidized Stafford Loan – the college determines the loan type and the actual loan amount a student is eligible to receive each academic year. The interest is paid by the federal government while the student is enrolled in college and for the first 6 months after college. You must demonstrate need to get this loan.Non-Need Based LoansFederal Direct Unsubsidized Stafford Loan – there is no requirement to demonstrate need for this loan. The college determines the amount you can borrow based on your cost of attendance and other financial aid received. You must pay the interest on this loan.Federal PLUS Loan – this loan is for your parents. It is very similar to the unsubsidized Stafford loan but your parent must pay the loan back. Loan Wisdom: While your college education is an appreciating investment, be smart about how much debt you are willing to go into. There are websites that show you your earning potential based on your career path and what your student loan limit should be. Estimate your salary ooh/Calculate loan paying/debtwizard/bigfuture.pay-for-college/loans/student-loan-calculatorStudent Loan Advisor – Undergraduate Studentscalculators/undergradadvisor.phtmlCurrent Student Loan InformationLoanNeed-Based?Subsidized?BorrowerInterest RateDirect Subsidized Loan ?YesYesStudent4.66% (fixed)Direct Unsubsidized LoanNoNoStudent4.66% (fixed)PerkinsYesYesStudent5.00% (fixed)Parent PLUSNoNoParent7.21% (fixed)Payment PlansIf there is still a financial “gap” to be funded after all free aid, self-help aid, and student loans have been added, you most likely will need to rely on your parents paying out of pocket by using the college’s payment plan.Recommended Websites:General Financial Aid InformationFAFSA forecaster: Letter Comparison: SAMPLE FINANCIAL AID CALCULATIONTotal Cost of Attendance for ABC University$21,120EFC$3,241Financial Need$17,879How does the student pay for what is left?Scholarship from the college$4000Need-based grant from the college$2000Florida Bright Futures FAS ($103 at 32 credits)$3296Federal Subsidized Stafford Loan$3500Federal Work Study$4000Total Financial Aid$16,796Total Unmet Need: $4324 (EFC + additional difference between Need and Financial aid) ................
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