Finding Money for College

Edna Karr High SchoolFebruary 26, 2013

Got Questions? Cathy Simoneaux

Office of Scholarships and Financial Aid

www.loyno.edu/financialaid

BLOG: http://loynofinaid.tumblr.com/E-mail: cmsimone@loyno.edu

We Will Talk Abpit

• What is Financial Aid• Understanding College Costs• The Expected Family Contribution

(“EFC”)• What is financial need• Types of financial aid• Sources of financial aid

Who can get federal student aid?www.studentaid.ed.gov

What is Financial Aid?

Any money from outside of the family that pays postsecondary (college) expenses:

– Scholarships and grants – do NOT have to be repaid – Loans – MUST BE REPAID– Work-Study Programs

Who can get federal and state student aid?

• U.S. citizen or permanent resident• High school graduate/GED holder• Eligible degree/certificate program• Valid Social Security number• Satisfactory academic progress• Males must register with the Selective

Service on their 18th birthday

Programs for Military Veterans and their Dependents

http://www.loyno.edu/financialaid/programs-veterans-military-service

Take Time to Understand College Costs

College is expensive, but worth the cost• A sound investment in your child’s

futureMore than just tuition• Also includes room and board, books, transportation, personal expenses, etc.

Take Time to Understand College Costs

Cost of AttendanceEach schools “cost of attendance” will be different

PERSONAL

TRAVEL

BOOKS

Remember Costs

Vary by type of college– Community colleges are less expensive than four-year schools– Private colleges are more expensive than public colleges• Look at costs over a child’s entire postsecondary education– Four to six years total

Net Price CalculatorsCongress mandated that all colleges put a “Net Price” Calculator on their web sites effective October 29, 2011

• The goal is to give families an idea about what aid may be available to them

• While it is easy to calculate estimated eligibility for “need-based” aid, understand that merit and talent based scholarship awards are based on multiple factors. What you are seeing is the MEDIAN award for the prior year. Policies for awarding institutional aid can change every year with the aim to enroll a “well-rounded” student body.

http://www.loyno.edu/financialaid/net-price-calculator

Need Varies Based on Costhttp://www.loyno.edu/financialaid/system/files/COA_

Comparison.pdf

Your “Expected Family Contribution

• Amount family can reasonably be expected to contribute, but not what family will pay to the college

• The Federal “EFC” the same regardless of college the student attends

• Calculated using a formula created by Congress that looks at student and parent income.

Make Sure to “Do the Math”• Schools may not be able to offer you

enough aid to meet your costs.• Look at how you may be able to

minimize your costs and additional sources of support.

• Learn how to budget and manage your money - http://www.loyno.edu/financialaid/money-management-undergraduates

It All Begins with the “FAFSA”www.fafsa.gov

You Can Complete the FAFSA Using “Estimated Year” Income…

BUT, you have to go back and update your FAFSA once you file your tax

return--http://www.loyno.edu/financialaid/completing-fafsa

Don’t Be Scared of the FAFSA

http://www.finaid.ucsb.edu/FAFSASimplification/

http://www.loyno.edu/financialaid/completing-fafsa

http://www.youtube.com/watch?feature=player_embedded&v=c-23SMf5DyQ#t=0s

Seven Easy Steps to Completing the FAFSA- http://www.finaid.ucsb.edu/FAFSASimplification/

http://www.loyno.edu/financialaid/completing-fafsa

Types of Financial Aid

• Scholarships – merit based, do not have to be repaid

• Grants –”need-based”, do not have to be repaid

• Loans - must be repaid

• Employment - http://www.loyno.edu/financialaid/student-employment

What Impact Will the Election Have on Federal Aid Programs ?

-- No Impact of Pell

-- Probably Cuts in the Supplemental Grant and Work Study Programs

-- Interest on Direct Stafford Student Loans will rise from 3.4 to 6.8%

http://www.loyno.edu/financialaid/future-federal-student-aid-programs

First, you apply for a PIN - www.pin.ed.gov

Example: First Year student in 2012-13Maximum amounts allowed:

Federal Pell Grant: $5,550

Federal Subsidized Stafford Loan: $3,500Federal Unsubsidized Stafford Loan: $2,000

Federal Perkins Loan: $4,000 **Federal Supplemental Educational Opportunity Grant: $4,000 **Federal Work-Study: depends on funds available at school

Federal PLUS Loan (for parents): COA minus other aid received

How Much State Aid Can I Get?http://www.osfa.state.la.us/

La. “TOPS” scholarships Pays tuition at state schools or AVERAGE state tuition at private schools. ($3,636 for 2012-2013) -- will get award letter from state

La. “Go” Grants: New Program for 2007-2008. $1,000 annual award for full-time study in 2012-2013. Must be eligible for Pell Grant

• Colleges• Private Outside Sources – http://

www.loyno.edu/financialaid/outside-scholarship-programsMilitary

• Military -- http://www.loyno.edu/financialaid/military-sponsored-programs

Other Sources of Aid

Look at Costs, Financial Aid Awarded

• “College Affordability and Transparency Lists” - http://www.loyno.edu/financialaid/college-affordability-and-transparency-lists.

• “Know Who You Owe” – new initiative from the Consumer Finance Protection Bureau http://www.consumerfinance.gov/students/knowbeforeyouowe/

• http://www.loyno.edu/financialaid/your-financial-aid-package

• NEW: Financial Aid “Shopping Sheet”

NEW: Financial Aid “Shopping Sheet”

What You Should Be Doing Now

• Begin Researching Financial Aid Options• Start or Continue Saving for College• Students should be:

• Taking College Prep Courses• Participating in Extra-Curricular Activities• Developing Strong Study Skills

Concluding Thoughts

• It is never too early to start the college planning process

• The more information you have, the easier the process will be for your entire family

Any Questions?