2. FINANCIAL AIDFINANCIAL AID
Financial Aid-money from sources outsideFinancial Aid-money from sources outside
the familythe family
Two “pools” of financial aid moneyTwo “pools” of financial aid money
-gift aid-gift aid
-self-help-self-help
3. GIFT AIDGIFT AID
ScholarshipsScholarships- merit based- merit based
-- beware of scams and mythsbeware of scams and myths
-sources of information: guidance office,-sources of information: guidance office,
college, employer, organizations, Webcollege, employer, organizations, Web
GrantsGrants-need-based, federal and state, (Pell,-need-based, federal and state, (Pell,
SEOG, MAP)SEOG, MAP)
4. FEDERAL GRANTSFEDERAL GRANTS
-Pell max. award $5,550 for 2010-2011-Pell max. award $5,550 for 2010-2011
-SEOG max. award $4,000 (normal range-SEOG max. award $4,000 (normal range
is $500-$1,000 per student)is $500-$1,000 per student)
5. STATE GRANTSTATE GRANT
Monetary Award Program $4,968* forMonetary Award Program $4,968* for
2010-20112010-2011
*estimated cap based on State of Illinois*estimated cap based on State of Illinois
fundingfunding
6. SELF-HELPSELF-HELP
LoansLoans
-Federal Direct Loans (students) $5,550-Federal Direct Loans (students) $5,550
-Subsidized (need-based) 4.5%-next year rate-Subsidized (need-based) 4.5%-next year rate
goes to 3.4%goes to 3.4%
-Unsubsidized 6.8%-Unsubsidized 6.8%
-Perkins (need-based) 5%-Perkins (need-based) 5%
-Federal PLUS (parents) 7.9%-Federal PLUS (parents) 7.9%
All the above are direct loans through the federalAll the above are direct loans through the federal
government. Application is done online.government. Application is done online.
Private Loans (not recommended, adjustable rate)Private Loans (not recommended, adjustable rate)
WorkWork
Federal Work Study (need-based)Federal Work Study (need-based)
7. Free Application for FederalFree Application for Federal
Student AidStudent Aid
(FAFSA)(FAFSA) www.fafsa.ed.govwww.fafsa.ed.gov FREE onlineFREE online
application from the federal governmentapplication from the federal government
Both parent and student completeBoth parent and student complete
Complete after Jan.1, 2011Complete after Jan.1, 2011
Watch for college financial aid deadlinesWatch for college financial aid deadlines
Get a PINGet a PIN www.pin.ed.govwww.pin.ed.gov
Sites to avoid: fafsa.com & fafsagold.com chargeSites to avoid: fafsa.com & fafsagold.com charge
fees to complete FREE federal formfees to complete FREE federal form
8. Expected Family ContributionExpected Family Contribution
(EFC)(EFC)
Expected Family Contribution (EFC)Expected Family Contribution (EFC)
-income, assets-income, assets
-family size-family size
-age of older parent-age of older parent
-number of children in college-number of children in college
$ government says a family is expected to provide for$ government says a family is expected to provide for
education expenseseducation expenses
$ is constant number regardless of the cost of the college$ is constant number regardless of the cost of the college
9. Cost of Attendance (COA)Cost of Attendance (COA)
Cost of Attendance (COA)Cost of Attendance (COA)
-tuition-tuition
-fees-fees
-room and board-room and board
$ varies from college to college$ varies from college to college
10. NEEDNEED
COA-EFC=NeedCOA-EFC=Need
College A 25,000-5,000=20,000College A 25,000-5,000=20,000
College B 15,000-5,000=10,000College B 15,000-5,000=10,000
College C 10,000-5,000=5,000College C 10,000-5,000=5,000
Financial Aid Package-can includeFinancial Aid Package-can include
combination of federal, state, institutionalcombination of federal, state, institutional
aidaid
11. FINAL REMINDERSFINAL REMINDERS
Money is available to help pay for collegeMoney is available to help pay for college
Apply, apply, apply for scholarshipsApply, apply, apply for scholarships
Be aware of scamsBe aware of scams
Get a PIN and file the FAFSA earlyGet a PIN and file the FAFSA early
Don’t be intimidated by the processDon’t be intimidated by the process
Watch for deadlinesWatch for deadlines