This document provides an overview of college financial aid basics for the 2018-2019 school year. It defines key terms like cost of attendance, expected family contribution, and dependency status. It outlines the major types of financial aid including need-based grants, loans, work study, and merit-based scholarships. The document reviews the process for applying for aid including filing the FAFSA annually and understanding student aid reports versus aid offers. Tools, tips and resources for obtaining financial aid are also provided.

1. CollegeFinancial Aid Basics
2018-2019
Benjamin J. Howard-Williams, MAEd
Coordinated by Marty Johannes, MLS
Sept. 20 2017 @ Central Resource JCL
Photo by Trollness, used under a Creative Commons
Attribution-Share Alike 4.0 Internaional License

2. And you are…?
Benjamin J. Howard-Williams
Transfer & Articulation Officer
Undergraduate Curriculum & Articulation Specialist
University of Missouri-Kansas City
Bachelor of Science in Social Sciences, Emporia State University
Master of Arts in Education, University of Saint Mary
Master of Arts in Counseling, Univ. of Missouri-Kansas City (2021)
Previously…
Asst. Director of Financial Aid
University of Kansas
Student Success & Enrollment Services
Metropolitan Community College Kansas City
Johnson County Community College
2

3. Agenda
 What is “Financial Aid”?
 Basic Terms & Definitions
 Types of Financial Aid
 Applying for Aid & Filing the FAFSA
 Tools & Tips
 Q & A DISCLAIMER: This information is presented by a private citizen on
a matter of public concern as a free community resource. The
information presented is intended as a general overview and should not
be interpreted as an official document or publication of any institution of
higher education or the US Department of Education: Federal Student
Aid Office. Any errors or omissions are unintentional. No guarantee of
aid award amounts or college assistance is intended or implied.3

4. What is financial Aid?
It includes more than you’d
think.
4

5. What is Federal Student
Aid?
Federal student grants, loans, and
work study.
Requires annual filing of the Free Application for Federal
Student Aid (FAFSA) to be considered for eligibility. 5

6. What is Federal Student Aid?
Image from WikiMedia Commons Used
under a Creative Commons License
Federally funded,
Tax payer supported
Investment in our
country’s future.
All of US
investing in YOU 6

7. Non-federal Student Aid?
Institutional Grants & Scholarships
Teaching / Research Assistantships
Private Scholarships
Private Loans
--
Family Support
Student Employment
“financial aid” includes
all these sources7

8. Terms and definitions
How to speak “financial aid”.8

9. Cost of attendanceAnd the financial aid bucket
Image from The Walrus Wiki
COA = estimated total cost to attend a particular
institution. Includes…
• Tuition
• Fees
• Housing & Meals
--
• Books & Supplies
• Transportation
• Personal Expenses
Combined = size of your “bucket”
9

10. Image Source
Financial Aid is used to
fill your bucket.
Cannot overfill your
bucket by even $0.01
Cost of attendanceAnd the financial aid bucket
10

11. Terms & definitions
Grant = Free Money.
Scholarship = Free money with strings attached.
Work Study = On-campus job funded using federal or state money.
Student Loan = Aid that must be repaid when you leave college
(even if you don’t graduate).
Types of aid basics
11

12. EFC = Expected Family Contribution, calculated using the annual FAFSA filing, used to
determine your aid eligibility.
Full-Time Student = 12+ Credit hours per semester.
Half-Time Student = 6-11 Credit hours per semester.
Grace Period = Time after you graduate or fall below half-time status before you must start
repayment on your loans.
Dependent Student = Under 24 years old, unmarried, no dependents...most “traditional”
college students.
Independent Student = 24+ years old or married or graduate student or veteran, orphan...
Vocabulary
Terms & definitions
12

13. Terms and definitions
Dependent Student = Requires tax and income info from parent(s) to apply for federal aid,
even if student is not claimed on parents’ income taxes, doesn’t live at home, etc…
Independent Student = Does not require parental info to apply for federal aid.
More Info on Dependency Status:
http://studentaid.ed.gov/fafsa/filling-out/dependency
This presentation assumes dependent student status.
Dependency status cont’d
13

14. Types of financial aid
Two “flavors” of financial aid…14

15. Need-Based financial aid
Need = Cost of attendance – EFC
Students with EFCs which exceed the cost of attendance
are ineligible for need-based aid.
Includes All Federal Grants & Some Loans.
Requires Annual FAFSA Filing.
Some State & Institutional Grants.
May require additional application(s), often start with
FAFSA information.
Image from Lars Hammar via Flickr
Used under a Creative Commons License
15

16. EFC Quick Reference
AGI
1 Dependent Child
Est. EFC
2 Dependent
Children Est. EFC
3 Dependent
Children Est. EFC
4 Dependent
Children Est. EFC
$30,000 998 0 0 0
$50,000 $4,004 $3,081 $2,808 $1,934
$70,000 $8,708 $7,253 $6,131 $4,976
$90,000 $15,697 $13,961 $12,362 $10,495
$110,000 $21,756 $20,192 $18,764 $17,069
$130,000 $27,335 $25,301 $23,874 $22,175
$150,000 $33,967 $31,933 $30,035 $28,340
From Forbes Magazine 2017 Guide to College Financial Aid by Troy Onink
16

17. Merit Based Financial aid
Merit Based = Scholarships.
Based on your AWESOMEness
In academics, the arts, music,
community service, etc.
Image via Quickmeme.com
YOU’RE A SUPERSTAR
17

18. Federal student aid
Most federal aid options require need,
but not all.18

19. Federal aid eligibility
Prerequisites
1) Proof of High School Diploma or GED.
2) Aid-Eligible Program at an Accredited Institution.
(All degree programs are aid eligible; some certificate programs may be eligible.)
3) At least a half-time enrollment.
4) Guys 18-25 must register with Selective Service.
5) Satisfactory Academic Progress.
19

20. Satisfactory Academic Progress
Making SAP
Common SAP Standards
• GPA: 2.0+ Cumulative
• Time to Degree: 150%
• Completion Rate:
• K-State 75%
• KU 70%
• Rockhurst Univ. 67%
• JCCC 66%
GPA
Completion
Rate
Time to
Degree
Image source
20

21. Fall Semester, Freshman Year
6 Classes (18 credit hours)
Pass 4, Drop 1, Fail 1
Cumulative Completion Rate: 66.66%
JCCC or Rockhurst U = Eligible!
Univ. of Kansas or K-State = 
Image from CollegeDegrees 360 via Flickr
Used under a Creative Commons License
Satisfactory Academic Progress
Making SAP
21

22. Federal Pell GrantNeed based aid
Largest Federal Grant Program.
Eligibility based on “need”, determined via student’s EFC.
$5,920 Annual Max for 2018-19 with 0 EFC.
Sliding-scale, Max EFC of 5198
Split 50% per semester, up to $2,960 additional for summer.
Limited – 12 semesters of eligibility (assuming full-time enrollment)
22

23. Federal work studyNeed based aid
On-campus* job, paid 75% - 100%
via federal funds.
• Receive via a normal paycheck.
• Must find your own job.
• Must re-apply each semester and/or year.
• Limited FWS funds per institution per year.
• Income does not count against the next year’s
FAFSA filing.
*some campuses may have off-campus jobs that are FWS eligible.
From marketplace.org
Image Source 23

24. Federal Direct/Stafford loan
Need based aid – Sort of
Federally Funded - Most common loan type
 Need & Cost of Attendance Based
 6 month grace period
 Interest Rate: 4.45% (until 07.01.18)
 Origination Fee: 1.066% (until 10.01.18)
1st Year (0-29 credit hrs) 2nd Year (30-59 hrs) 3rd Year & Beyond (60+ hrs) Undergrad Lifetime Limit
Max Loan
Amount
$5,500
Max Sub. $3,500
$6,500
Max Sub. $4,500
$7,500
Max Sub. $5,500
$31,000
Max Sub. $28,00
ALL FIRST TIME FRESHMEN are eligible to borrow up to $5,500 of Federal Direct Loan aid.
The amount of your Direct Loan that is SUBSIDIZED vs. UNSUBSIDIZED will depend upon your EFC & “NEED”.
24

25. Subsidized vs unsubsidized loans
Subsidized Direct Loan:
Federal Government pays the interest while the
student is enrolled at least half-time.
Unsubsidized Direct Loan:
Interest starts to accrue immediately upon
disbursement of the loan.
Two-sides of the same loan program.
Same interest rate, same repayment terms.
From A Civil American Debate
Image Source
Federal Direct/Stafford loan
25

26. Direct Parent PLUS loan
Filling in the gap
Maximum = gap between other aid and COA
Only one parent / step-parent may apply per loan.
Cannot have an “adverse credit history”.
Interest Rate: 7% (until 07.01.18)
Origination Fee: 4.264% (until 10.01.18)
No grace period but may request deferment while
student enrolled at least half-time.
American Gothic by Grant Wood,
via Wikimedia Commons Used under a Creative Commons License
26

27. Benefits of federal loans
MANY Repayment Options
 Repay over 10 - 25 years if necessary.
 Income-sensitive options (except for Parent PLUS).
 Forbearance – pause your repayment in event of financial hardship.
 Federal Consolidation Loan – Bundle all fed loans together for repayment
(except for Parent PLUS).
 Wiped out in the event of death or permanent disability.
Not Based on Creditworthiness (Except for PLUS Loan)
Forgiveness Options: Public Service - Debt forgiven after 10 years of full-time public /
non-profit employment.
27

28. Non-federal student
aid
Including merit aid, institutional grants, and
the dreaded “private / alternative” loan28

29. Private / alternative loans
Aid of last resort
Avoid if you can:
 Variable Interest Rates.
 Always unsubsidized.
 Limited (if any) grace period.
 Limited repayment options.
 Limited consolidation options.
 Based on creditworthiness.
 Students almost always need a co-signer.
Image from I Can Has Cheezburger
Image Source
29

30. PSA: Private Student Loan warning
“If these had been federal student loans,
Mason could have had the loans discharged
or at least received some sort of financial
assistance. But since they are private loans,
he has little to no recourse”
(Ellis, 2014) – CNN Money
Image source
Read your loan terms.
Know what you’re
getting in to. 30

31. Institutional grantsNeed based aid
Availability varies widely
from institution to
institution.
Always ask if available
and, if yes, are they
renewable?
From collegescholarships.org
Image Source
31

32. ScholarshipsBecause you’re awesome
Special Interest Organization
• Faith Community / Service Organization
• Minority Status, 1st Generation Student, etc.
• Arts Organization, Sports Team
• Local Moose Lodge…
Institutional
• Offered by a particular college / university
Departmental
• Offered by your department / program
Peppy the Inspirational Cat by Peppy Jones
Used under a Creative Commons License
32

33. Image Source
Personal connections first,
then general search engines.
ScholarshipsBecause you’re awesome
33

34. Scholarships
Image from WikiMedia Commons Used
under a Creative Commons License
Pros & Cons of Merit Aid
• Different requirements
than Federal Aid.
• Renewable?
• Scholarships amounts
sometimes subtracted
from other aid awards
(reduces your “need”).
• Can Build Your
Resume/Network.
34

35. Applying for financial aid
Completing your annual FAFSA
early is always better35

36. Annual FAFSA FilingFree Application for Federal Student Aid
FAFSA.gov
DO NOT USE .com, .org, .edu, or .net
Used for ALL types of
Federal Student Aid
Must complete every year.
Image Source
36

37. Annual FAFSA FilingPrior-Prior Year or PPY Information
• PPY requires financial info from 2
years prior to start of college.
• 2016 Taxes are finalized.
No estimating income. No updates
or corrections later.
• Aligns with priority admissions
application dates.
• Earlier notice of aid offer.
More informed admissions
decisions. Image via Meme MemeGen.
37

38. Completing your FAFSA
2016 Tax Returns OR W2s
• Student & Parent(s)/Step-Parent(s)
Asset Information
• Value of any checking or savings accounts.
• Business income or assets held personally.
• Other Investments - Real estate, UGMA / UTMA accounts, stocks, bonds, certificates of
deposit. etc.
• Untaxed Income - Disability benefits, Non-education veterans benefits, child support
payments received, etc.
Don’t Include
• Primary Residence
• Retirement Accounts (IRA, Roth IRA, 401k, etc.)
Annual FAFSA Filing
38

39. Deadlines!
Federal Deadline: June 30th, 2019
Kansas Priority Deadline: May 1st, 2018
Your College’s Priority Deadline – ASK!
• Univ. of Kansas, K-State: December 1st, 2017
• University of Missouri-Kansas City: February 1st, 2018
• Johnson County Community College: March 15th, 2018
NOTE: Even if you miss a priority deadline, you can
STILL APPLY and GET AID if you file before the
federal deadline! However, many aid programs are
first-come, first-served. Applying by the priority
deadline gives you access to the best aid options.
Annual FAFSA Filing
39

40. Image Source
Annual FAFSA FilingPPY Dust is still settling
• Many schools haven’t
changed priority aid
application dates – yet.
• Earlier aid offers – and
earlier deadlines for
admissions decisions.
Stay tuned – situation
will evolve.
40

41. Student Aid Report vs Aid offer
Student Aid Report:
• Summarizes FAFSA Info
• Provides your EFC
• Lists your potential aid eligibility
Image from Robert Couse-Baker via Flickr
Used under a Creative Commons License
Annual FAFSA Filing
41

42. Aid Offer / Award / Package:
• Direct from your school.
• Based on your cost of
attendance (COA).
• Can accept or decline any
part of your award
(grants / scholarships often auto-accepted).
Can take 4+ weeks to generate.
Image from 401kcalculator.org via Flickr
Used under a Creative Commons License
Student Aid Report vs Aid offer
Annual FAFSA Filing
42

43. Tools, Tips, and
resources
Getting the most aid you qualify for.43

44. Tools: What does college cost?
College Affordability & Transparency Center: collegecost.ed.gov
College Scorecard: collegecost.ed.gov/scorecard/
• Search for any Federal-Aid Eligible College/University in the USA.
• Search for colleges/university based on size, region, cost, major, campus setting, etc.
• Quick Review of Average Annual Cost*, Graduation Rate, Salary After Attending**.
College Navigator: nces.ed.gov/collegenavigator/
• Similar info as available via College Scorecard – Compare side by side.
• In-depth data – majors, freshmen retention rate, campus crime statistics, student body
demographics, % admitted vs % enrolled, Loan Default Rate*** and more.
*Net Price = Avg. Cost after Aid Package is taken into consideration.
**Salary After Attending = Largely useless measure at any comprehensive institution with lots of majors.
***Loan Default Rate = Good indicator of how students do after they leave. 44

45. Tools: Scholarship Searches
Top Tip: RENEWABLE Scholarships are best!
45

46. Tips: Get expert help!
KS FAFSA Events
No Events
Scheduled yet
Sponsored by KASFAA
MO FAFSA Frenzy
bit.ly/MO-FAFSA-17
Sponsored by MO Dept. of Higher Ed
46

47. Tips: communication is key!
• Special Circumstances
• Taxes don’t reflect your financial reality?
• Unexpected Expenses?
• Life’s changed since 2015?
• Comparing Offers
• Multiple offers – ask top choice to match your best offer.
• Ask “what are the advantages of your aid offer?”
• Building a Relationship
• Student aid can be confusing, have an expert in your corner.
• Be honest and direct.
• Ask About Student Privacy Policies.
Image Source
47

48. Additional resources:
JCL: College Bound & Test Prep
FAFSA.gov
StudentAid.gov
Your Public Financial Aid Office
(Even if you don’t go there!)
Financial Aid Corner at JCCC
Image from http://www.jccc.edu/financialaid/
48

49. Some parting words…
It’s not a complicated as it seems.
Be honest with your aid officer
and when completing your FAFSA.
Select “professional help” carefully.
And thank you for coming!
49

50. Questions?
Benjamin Howard-Williams, MAEd
benjaminjh@gmail.com
50