1	FINANCIAL AID Sedan High School 2005 – 2006
2	POINTS OF EMPHASIS The “Financial Aid Officer” should be your primary source of contact APPLY AS SOON AS POSSIBLE - (Target Feb. 1 - at least by March 1) Check Deadline dates at each school
3	Musts: APPLY FOR ADMISSION! (not considered for financial aid until admitted) Complete & File FAFSA! Do Tax Returns Early READ YOUR MAIL! Keep up on Deadlines
4	Goals of Student Financial Aid Access to post-secondary education Provide choice among institutions Balance “gift” & “self-help” aid
5	F I N A N C I A L A I D TWO TYPES OF FINANCIAL AID: MERIT BASED & NEED BASED
6	MERIT BASED AID Based on something earned or on doing something! Grades, ACT scores, activities, or belonging to some organization “SCHOLARSHIPS” Most are merit based
7	NEED BASED AID Based on an evaluation of a family’s financial strength funded by Fed/State Government Data is gathered through Free Application for Federal Student Aid – “FAFSA”
8	"A “Need Analysis”" A “Need Analysis” is used to determine an Estimated Family Contribution (EFC) – based upon the data gathered through the FAFSA EFC follows student remains constant at each school
9	"EFC reduced" EFC reduced - by multiple-family members in college
10	BASIC FINANCIAL AID SCHOLARSHIPS GRANTS WORK-STUDY EDUCATION LOANS
11	SCHOLARSHIPS Scholarships help pay for college expenses and are not repaid TYPES OF SCHOLARSHIPS NEED-BASED MERIT-BASED INSTITUTIONAL PRIVATE/CORPORATE
12	GRANTS Also known as “gift aid” are based on Financial Need and are not repaid “Need Eligibility” is determined by the FAFSA(Federal Application for Federal Student Aid)
13	"GRANT TYPES" GRANT TYPES Pell Grant ($400 - $4,050/year) FSEOG ($100 - $4,000/year) (Students with “exceptional” need) State Grants Institutional Grants *85% Pell recipients - family income less than $30,00)
14	WORK-STUDY Allows you to earn money by working “on campus” You get paid for hours worked (like any job) Based on “financial need” Jobs awarded “first-come/first-served” Each school has its own application procedures Some help you find jobs - Others you must seek own employment
15	EDUCATION LOANS PERKINS LOANS -”Need-Based” borrowed directly from the college - 5% Interest rate -repayment 9 months after leaving school - Priority to “exceptional need - interest free during school - Loan amount Up to $4,000 – Lots of cancellation provisions Education - Allied Health - Law Enforcement – (Librarians/First Responders)
16	"STAFFORD LOANS - Variable interest..." STAFFORD LOANS - Variable interest rate (8.25% cap) - repayment begins 6 months after leaving school - (Some cancellation possible) *Current Rate = 5.30% Loan amount - “1st year” Up to $2,625 Subsidized: Interest-Free during school Unsubsidized: Interest accrues during school
17	"PLUS LOANS - “Parent..." PLUS LOANS - “Parent Loan” Variable interest rate (9% cap) - repayment begins with disbursement *Current Rate = 6.10% Loan amount - Up to Cost of Attendance Must Begin Repayment in 6 months
18	F A F S A FREE APPLICATION FOR FEDERAL STUDENT AID First step in federal financial aid application process Determines Aid Eligibility - Used to determine “Expected Family Contribution” (EFC)
19	Principles of Need Analysis Parents have primary responsibility to pay for their dependent student’s education - to the extent they are able Students also bear responsibility to contribute
20	"Families are evaluated in their..." Families are evaluated in their present financial condition A family’s ability to pay educational costs will be evaluated in a equitable and consistent manner
21	“Need Analysis” (Brief Summary) COA Cost of Attendance - EFC Expected Family Contribution = NEED ELIGIBILITY Based upon FAFSA data
22	Cost Of Attendance Tuition & Fees Room & Board Books/Supplies/Transportation/ Personal Expenses/Etc.
23	“Packaging” Each institution “packages” student financial aid according to “Need Eligibility” and according to that institution’s budget
24	Financial Aid Package usually consists of a combination of: “Gift Aid” Grants Scholarships “Self-Help Aid” Work - Study Loans More & More emphasis on “Self-Help” Aid
25	Packaging Simulations
26	COMPLETING THE FAFSA Gather info and create a file containing the following: *For You and Your Parents (or Spouse) driver’s license & social security #s most recent W-2(s) and Tax Returns current bank statements records of untaxed income value of investments/business
27	COMPLETING THE FAFSA General Eligibility - A Student Must: be a U.S. Citizen or national/eligible non-citizen enroll in an eligible program & school have a HS school diploma or equivalent be pursuing a degree/certificate have a valid Social Security #
28	"Student must:" Student must: be registered with Selective Service (if male between ages 18-25) not have eligibility suspended or terminated due to drug-related conviction Not be simultaneously enrolled in HS
29	COMPLETING THE FAFSA Student’s Rights/Responsibilities Accurate completion critical Review/Understand all agreements Comply with all application deadlines and documentation requirements Repay any Title IV funds received as a result of inaccurate information
30	FAFSA “NOTES” Make sure you have the FAFSA for the correct school year Seniors 2006 - Use FAFSA for July 1, 2006 – June 30, 2007 Use 2005 Income Information
31	FAFSA “NOTES” Use The: “FAFSA On The Web Worksheet” From Guidance Office OR From the FAFSA Web Site www.fafsa.ed.gov
32	FAFSA “NOTES” Double check Social Security Number and Date of Birth Answer “Drug Conviction” Question #31 Include Parent’s information unless you can answer yes to one of questions 48-54
33	FAFSA “NOTES” MAIL OR SUBMIT FAFSA “ON LINE” AS SOON AS POSSIBLE for quick processing and student aid report Mailed FAFSA will take 4-6 weeks On-Line Application = 10 - 14 days “PIN” Signature = 48 hours
34	FAFSA “ON-LINE” www.fafsa.ed.gov Upon “Submission” - Will receive an immediate “EFC” estimate AND so will colleges
35	“On-Line” Option #1: “Signature Page” With Printer – you will get a signature page to mail-in Must be signed by student & parent No Printer – You will be mailed a signature page to return
36	“On-Line” Option #2: “Electronic Signature” Sign FAFSA Electronically Using PIN Student & Parent need PIN (For “Dependent” Student) Will receive a confirmation page when transmission is successful
37	"PIN requests may be made..." PIN requests may be made at: www.pin.ed.gov
38	FAFSA “HELP” By Phone: Call 1-800-4FEDAID (433-3243) Online www.ed.gov/studentaid On-Line FAFSA: “Help” button on each page and/or click “Live Help” button to chat with customer service representative
39	FINANCIAL AID “TIPS” Complete Tax Return before completing FAFSA Don’t have to file - but need actual tax figures Compare Fin Aid for each college Out-of-pocket expenses may be similar for schools that vary greatly in costs Check “Institution Specific” awards
40	FINANCIAL AID “TIPS” STUDENT/PARENT INCOME INFO Parents = 35% income/assets used in “need analysis” Students = 50% income/assets used in “need analysis”
41	FINANCIAL AID “TIPS” New Tax Laws in effect Some tax breaks are available for college tuition costs Parents are advised to check with their Tax Preparer
42	What Happens Next? After filing the FAFSA - You will receive a SAR (Student Aid Report) Summarizes information from FAFSA Displays “Official” EFC Establishes student eligibility to receive Title IV assistance
43	"Verify all SAR information &..." Verify all SAR information & make any corrections immediately Most corrections can be made with the college of choice
44	"Colleges receive FAFSA information and..." Colleges receive FAFSA information and submit a “Financial Award Letter” to the student Your “Financial Award Letter” will indicate your financial aid packaging You may accept or deny all or any individual part of Award Letter
45	“Verification” 30% - 40% of FAFSA’s are randomly selected for “Verification” Must submit extra forms & copies of income tax returns Some Schools “Verify” 100% “Verification” Increasing
46	Dependency Overrides & Professional Judgements DEPENDENCY OVERRIDE: A student may be considered independent if he/she presents documentation of “unusual circumstances” Exceptions are made on a case-by-case basis according to institution policy Overrides at one school may not be accepted at another school
47	Dependency Overrides & Professional Judgements PROFESSIONAL JUDGEMENT: Adjustments may be made on individual FAFSA line items with documentation Adjustments are made on a case-by-case basis according to institution policy Adjustments made by one school will not automatically be accepted at another
48	Income Adjustment Examples: STUDENT MAY REQUEST INCOME ADJUSTMENTS FOR: Unusually high family medical expenses Change of family income due to employment status Loss of student benefits (Social Security/Child Support/Etc.) Change of family status (Divorce/Death)
49	R E M E M B E R FAFSA must be filed every year Renewals are e-mailed each year Keep PIN(s) in a safe and “rememberable” place
50	"Must maintain “Satisfactory Academic..." Must maintain “Satisfactory Academic Progress” to continue financial aid/scholarships complete certain #credit hours/semester maintain a minimum g.p.a Varies from school to school (some have probationary periods)
51	FINANCIAL AID “WARNINGS” Be Alert for vendors “assisting” with FAFSA Parents/Students are liable in case of mistakes made or fraud used by consultants - will have to make repayment and face possible fines & imprisonment.
52	“Warnings” (cont.) FAFSA/Scholarship assistance can be obtained FREE - through high schools/colleges/internet
53	STATE OF KANSAS SCHOLARSHIP PROGRAMS Priority Deadline - MARCH 15 Must be a Kansas Resident Enroll Full-Time in a qualified undergraduate program at a Kansas college/university ?? Skip To Slide #68 ??
54	STATE OF KANSAS SCHOLARSHIP PROGRAMS KS Comprehensive Grant KS State Scholarship KS State Teacher Service Scholarship Math & Science Teacher Service Scholarship KS Ethnic Minority Scholarship KS Nursing Service Scholarship KS Reserve Officer Training Program KS National Guard Tuition Assistance Program
55	Kansas Comprehensive Grant Grant for students attending Kansas “Private or Public” institutions Need-Based No Separate Application Needed - Requires FAFSA Mail FAFSA by March 15!!!! Funds Limited- Apply Early
56	"Awards range from $200..." Awards range from $200 - $3,000 at Private Institutions Awards range from $100 - $1,100 at Public Institutions
57	Kansas Vocational Scholarship For approved 1 & 2 year vocational programs at Comm Colleges/Tech Colleges/4-year Vocational Programs “Merit-Based” - Requires a Separate Application & “Vocational Test” Reg -Feb.10 / March 4 Test ($10) Top 250 Scores = up to $500 award
58	"Programs Requiring A Separate" Programs Requiring A Separate “State of KS Student Aid Application” $10 Processing Fee
59	Kansas State Scholarship Merit & Need-Based KS Scholars Curriculum (ACT & GPA) Up to $1,000 Priority Deadline - MAY 1 05-06 Average = 3.90 gpa/29 ACT
60	KS Teacher Service Scholarship Merit-Based Must agree to teach in designated discipline or geographical area Service Obligation Requirement One Year for each year of Scholarships Up to $5,000 Priority Deadline - MAY 1
61	KS Math & Science Teacher Service Scholarship College Juniors & Seniors Merit-Based Public & Private 4-Year KS Colleges Service Obligation Requirement Two Years for each year of Scholarships Must teach Math/Science in Kansas Up to $5,000 Priority Deadline - MAY 1
62	KS Nursing Service Scholarship Merit & (Need-Based?) Depends on funding & number of Applicants Must acquire a “Sponsor” Service Obligation Requirement One Year for each year of Scholarships Up to $3,500 (RN) & $2,500 (LPN) Priority Deadline - MAY 1
63	“Pay Back” Provisions For Teacher & Nursing Scholarships If student does not fulfill service obligation - the Scholarship Money becomes a “Loan” @ 13% Interest (interest accumulates retroactively)
64	Ks Ethnic Minority Scholarship Merit & Need-Based American Indian or Alaskan Native, African American, Asian or Pacific Islander, or Hispanic Up to $1,850 Priority Deadline - MAY 1
65	KS Reserve Officer Training Program KSU, KU, PSU, or Washburn Must be approved by University selection committee Military Service Obligation (becomes loan if service not met) Up to 70% Cost Of Attendance
66	KS National Guard Tuition Assistance Program All KS Post-Secondary Schools May be full or part-time student Must be approved by University selection committee Up to 100% of Tuition & Fees Application must originate with unit commander
67	State of Kansas Scholarships “On-Line Application” All KS Scholarship Program Applications Are Available On-Line: www.kansasregents.org/financial_aid
68	FINANCIAL AID “WEB SITES” There are numerous internet sites which provide information pertaining to Federal Fin Aid, Scholarships, Student/Parent Loans, EFC Need Estimators, Tax Assistance, etc. These are free - and easily accessible
69	www.fafsa.ed.gov Apply with the New FAFSA “On-Line” Print FAFSA off of the Web Print a Signature Page Renewal Application on the Web “Not fafsa.com” ($50-$75)
70	www.ed.gov Financial Aid for Students Federal School Codes FAFSA on the Web HOPE Scholarship Information
71	www.finaid.org Loan Information Scholarship Information Military Aid College Selection Need “Estimators” Other types of Aid available This One Is Excellent
72	www.ed.gov/thinkcollege A Great Site to Help You Decide “If College Is For You!”
73	All May Be Found On: http://usd286-sedan-ks.org High School Counselor’s Corner Financial Aid/Scholarships
74	CREDIT WARNING Loans comprise 66% of all financial aid today Avg. loan indebtedness - $19,000 1/4 Borrow $24,000 1/10 Borrow $35,00
75	Credit Cards Easily accessible to college students 83% of undergraduate students have credit cards avg. credit debt is $2,800 29% have debt of $3,000-$7,000 10% have debt over $7,000
76	"88%" 88% of Midwest students own at least 3 cards & have the greatest debt levels compared to students in other regions 12% have balances exceeding $7,000
77	Just For Fun! How long would it take to pay off a credit card with a $3,000 balance and an annual interest rate of 19.8% - if you only pay the minimum payment of $60 each month?
78	"ANSWER:" ANSWER: Almost nine (9) years! And you will pay over $3,300 in interest alone!
79	"If you would invest that..." If you would invest that same amount of money each month, rather than making monthly payments
80	After Nine Years $60/month at 8% = $9,445 $60/month at 10% = $10,500 $60/month at 10% for 18 years = $36,000
81	THAT’S ALL FOR NOW “COMING SOON” SCHOLARSHIP PRESENTATION