Financial Aid 101:A Guide to

Financial Aid and Scholarships

Charles Harper, M.Ed. Director of Financial Aid Belmont University

Applying for Financial Aid

What is financial aid?

Scholarships (Institutional, Private)

Grants (Institutional, Federal, State)

Work-study(Campus-based, Federal)

Loans (Federal, Private, Institutional)

Federal Student Aid Requirements

To be eligible, a student must be…

• A US citizen or permanent resident• A high school graduate or GED holder• Pursuing an eligible degree or certificate program• A person with a valid Social Security number• Registered for Selective Service (males only)

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These rules apply to most types of state and institutional aid and may apply to private aid.

FAFSA Free Application for Federal Student Aid

Application for federal and state aid Collects information about household income and assets, family size, and number in collegeUsed to determine eligibility for need-based aidRequired for students to receive grants, loans, the lottery scholarship, and other types of state and federal aidMay also be required for some types of institutional scholarships

FAFSA: PIN (Personal Id Number)www.pin.ed.gov

Must be obtained to file the FAFSA

Please note that both the student and the parent will require separate pin numbers in order to sign the fafsa. This means you will each have to separately apply for pin numbers using your own personal information.

Timeframe to file the FAFSA

Available on January 1Submit as soon as possible after January 1 to receive need-based grants

Watch out for FAFSA deadlines listed in scholarship applications

Can use estimated income, if needed

FAFSA Free Application for Federal Student Aid

Apply at www.fafsa.gov

College Goal SundayFree help with filing FAFSA!

Late January through mid-FebruaryDates and days of week vary by site

35 sites around Tennesseewww.tn.gov/CollegeGoalSundayWebsite has list of locations and datesPre-register online

If possibly eligible for grants:File FAFSA in early January. Don’t wait for College Goal Sunday—may be too late!

Estimating Your Income

Use 2012 tax return and final 2013 pay stubs to estimate total income & taxesWhen 2013 tax return is completed, compare with estimated info on FAFSAIf estimate was correct, make no changesIf estimate was incorrect, correct the FAFSA and resubmit it

Be sure to submit, not just save!Student and parent will sign again with their PIN numbers.

Changes in Income

Has your family lost income this year due to job loss or retirement?

Has your family had extensive out-of-pocket medical expenses? (several thousand dollars in 2013)

The financial aid office may be able to adjust the FAFSA to reflect the actual financial picture.

Special Circumstances RequestTalk with counselor about your options

Student Aid Report

Summary of the information provided on your FAFSASent approx. one week after FAFSA is filed

By email, if email address is providedBy mail, if email address is not provided

Comments section should be checked carefully, and any issues should be addressed as soon as possible

Student Aid Report

Expected Family Contribution (EFC)Ranges from 0 to 99,999Lower number = higher financial needUsed to determine your eligibility for need-based aidEFC does not correspond to particular income amount

The formula considers many factors, including income, taxes paid, household size, number in college, etc.

VerificationRequired by federal law

1-in-3 chance of being selected each time you submit your FAFSA, or correct and resubmit your FAFSA

FAFSA is checked for accuracyMust submit tax transcripts and other paperworkSubmit all required paperwork as soon as possible for best results

Process can delay receipt of aid by as much as 1 month!

Must complete verification at each school you’re considering

Easiest: Make final choice by May 1, then just complete verification at that school

How much financial aid can I get?This depends on a few factors, including

Financial NeedYour EFC from your FAFSAOther aid you’re receiving

Cost of Attendance budgetTuitionBooksRoom and BoardTravelMiscellaneousThis is the max amount of aid you can receive.

Types of Federal Aid

Federal Need-Based Grants

Do not have to be repaidMust have financial need according to FAFSAPell Grants are guaranteed for eligible studentsOther types of grants have limited funding

File FAFSA early to qualify!Some grants have academic requirements

Federal Grants

Examples: Pell

Federal grant $605-5645EFC of 0-5081 in 2013-2014 (may vary in future years)Guaranteed for eligible students

Supplemental Educational Opportunity Grant (SEOG)

Federal grantAmount varies, discretion of schoolNot guaranteed—Schools may only be able to award 10-20% of all eligible students

Federal Work-StudyReceive wages for hours workedMust have financial need according to FAFSAFunds are limited based on

Priority generally given to returning students with FWS positions in current yearSchool may require interested students to submit FAFSA and/or FWS application by certain date

Check with schools of interest to ask about application requirementsOther jobs outside FWS program are probably available on-campus

Check with school’s career center or individual departments

Types of Loans:Stafford Loan

Federal student loan which must be repaidAward Amount:

$5500-7500 per year, depending on grade levelAmount isn’t based on financial need

Repayment: Begins 6 months after graduationGenerally completed within 10 years

Types of Loans:Stafford Loan

Subsidized Stafford Loan$3500-5500 per year, depending on grade levelNo interest while in school (Interest rate: 3.86%)Must have financial needAmount is based on remaining financial need after grants, scholarships, and other resources (e.g., tuition discounts)

Unsubsidized Stafford Loan$2000 per year for dependent studentsInterest accrues while in school (Interest rate: 3.86%)Available to all students, not based on financial need

Types of Loans:Stafford Loan

Why should I consider a Stafford Loan instead of a private loan?

• Payments deferred while in school• Interest-free while in school (Subsidized)• May have lower interest rate• Does not require credit check or cosigner• Part of loan may be forgiven for public service (e.g.,

nurses, teachers)

Types of Loans:Loan Forgiveness Programs

“Grant”-Type Programs:Examples: Teach Grant (federal), TN Teaching Scholars Program, TN Rural Health ProgramAvailable to education, healthcare, and certain service industry majorsMust meet stringent service requirements or repay entire “grant” (plus backdated interest in most cases)

Stafford/Perkins Programs:Borrow Stafford or Perkins LoanBegin repaying loan as normalHave portion of loan forgiven after meeting service requirement for given number of years

Types of Loans: PLUS Loan

Federal parent loan which must be repaidAward Amount:

Depends on student eligibility and lender approvalCredit check is required

Repayment: Repaid by parents (Interest rate: 6.41%)Deferment available while student is enrolled at least half-timeCompleted within 10 years

Types of State Aid

State Scholarships and Grants

Examples: Lottery, TSAA Grant, Several loan forgiveness “grant” programsMost require online applicationDeadlines varywww.tn.gov/CollegePays/

State Need-Based Grant

TSAA (TN Student Assistance Award)$1000-4000 (depending on school type)Not guaranteed—Funds awarded until expended

File FAFSA as early to be consideredDoes not have to be repaidMust have financial need according to FAFSA

EFC of 2100 or less

Tennessee Education Lottery Scholarship Program

HOPE ScholarshipThe primary scholarship in the lottery program21 ACT OR 3.0 GPA

ACT must be taken before student begins collegeCumulative weighted GPA through end of high schoolGPA is only considered if student attended eligible high schoolHome school and ineligible high school graduates must qualify with 21 ACT

$2000 per year at 2-yr school$4000 per year at 4-yr school

Tennessee Education Lottery Scholarship Program

SupplementsGeneral Assembly Merit $1000

29 ACT AND 3.75 GPA

Aspire Supplement $1500$36,000 or less Parent AGI

Can receive one supplement at a time, not both

Tennessee Education Lottery Scholarship Program

HOPE Access Grant18 ACT AND 2.75 GPA AND$36,000 or less Parent AGINot available to homeschoolstudents$1750 for 1 year at 2-yr school$2750 for 1 year at 4-yr schoolCan qualify for full TELS award if 2.75 GPA after 24 hours

Tennessee Education Lottery Scholarship Program

Meet academic requirementsTennessee resident for 1 yearUS citizen/eligible non-citizenGraduate from Tennessee high school, homeschool, or GED

Homeschool: Must have been homeschooled for two years prior to graduation

Submit FAFSA by September 1 (by February 1 for spring enrollees)

Tennessee Education Lottery Scholarship Program

Keeping the ScholarshipMeet GPA requirements

2.75 after 24 & 48 attempted hours3.0 after 72 & 96 attempted hours

Meet enrollment requirementsEnroll in at least 1 class every fall & springDon’t change your enrollment status after the start of a semester (e.g., drop from full-time to part-time)

Stay within time limits5 years120 attempted hours

Most students will run out of hours before graduating! Be careful to take only the classes you need and to pass them the first time!!

Ned McWherter Scholars Program

$6,000 scholarship ($3000 from state, $3000 from school)Attend an eligible TN school 3.5 GPA and 29 ACT (1280 SAT)US citizen and TN residentApplication deadline: February 15Apply at www.tn.gov/CollegePays

Private Scholarships

Look for free search websitesApply, Apply, Apply!Watch for applications with essays —may have less competitionEmphasize your leadership, special skills and qualities, and contributions to your community.

Scholarship Notes

Beware of scams!! Don’t pay money to make money!Ask employer or parent’s employer about scholarships or tuition assistanceTuition discounts at public schools

State employeesChildren of state employeesChildren of K-12 public school teachersChildren of UT/TBR employees

Questions?