1 Financial Assistance and Resource PresentationAnderson University Financial Aid Planning Office Welcome and give brief explanation of what this session will cover this evening. Let them know they may ask questions at the end.

2 Why Go to College? Your parents want you to goYour desired career requires a college degree To increase your earning potential It’s fun!! (shameless plug ) Here are a few examples of why many students choose to go to college. Note the beautiful campus!

3 Education to Income LevelOne item we mentioned that is a common reason that people choose to pursue a degree after high school is earning potential. As you can see here not only does the unemployment rate continue to drop as your educational level increases but of course so does your income! (Per U.S. Bureau of Labor and Statistics Current Population Survey 2012) SO, you can see financially the benefit is there.

4 What College Do I Choose?Student Culture Institution Size Location Learning Environment Cost Choosing the right college or university can be difficult. A few factors to consider… Give examples of why these are important, such as size for student/teacher ratio, cost, etc.

5 What Will the College Need?Application (online or hard copy) Recommendations (letters from a teacher, guidance counselor, high school administrator, or pastor) Transcript* SAT/ACT scores* FAFSA * Admission requirements for GPAs and Test Scores. A few things the college or university will probably need from you in order to review your application and determine your acceptance…Remember to talk to the admission counselor at the school you’re considering to see what their GPA and test score entrance requirements are so you know where you stand.

6 Let’s Talk about Financial AidSO, now let’s talk more specifically about ways that financial aid can make attending the college or university of your choice as affordable as possible!

7 What is…Financial Aid? Financial aid provides funds to students and families to help pay for college expenses Financial Aid ensures a consistent and equitable evaluation of a family’s financial circumstances. First of all, it’s important to understand what financial aid may consist of. Financial aid may come from a number of sources, which we will discuss, and is intended to help students/parents pay for all educational expenses. Financial aid is awarded on a consistent and equitable evaluation of families and their financial circumstances by way of a Federal application called the FAFSA, which we will talk about in detail.

8 What is…Financial Need?Financial need is the difference between educational expenses and the amount the student and family are expected to pay. Understanding the Cost of Attendance (COA). Understanding your Expected Family Contribution (EFC). NOTE: The cost of attendance is different at each school, but the EFC remains the same. A few key terms and definitions to be aware of as we go through this….Financial need = the difference between the expenses and your ability to pay. Of course everyone probably feels like if you don’t have the money to pay the bill then you have “financial need” and while that may be true the determination of need for financial aid is concluded by a formula we’ll look at next. COA stands for Cost of Attendance and is more than just direct costs, we’ll talk about that next. Lastly, EFC, Expected Family Contribution. This is an amount you will obtain for your family by completing the FAFSA. Again, we’ll come back to that soon. It’s important to note however that the EFC may not be necessarily what it sounds like. It is NOT the exact amount that you will be expected to pay for college but is better to think if as more like a “gauge” that colleges and universities may use to determine what financial aid you qualify for.

9 What Is Included In the Cost of Attendance (COA)?Tuition and Fees Books and Supplies Room and Board Miscellaneous Expenses (Transportation, Personal, etc.) Direct vs. Indirect costs? The COA is NOT your actual bill! I mentioned the COA is not just direct costs, as you can see this is also including indirect costs such as transportation, books, etc. The total COA is different at each school but is typically made up of these general categories.

10 The Equation For Determining Financial Need Is:COA – EFC = FINANCIAL NEED Sample College/University COA EFC Financial Need Technical $ 5,000 - $5,000 = $ - Public $10,000 Private $15,000 Now you can see that as the cost varies from school to school your EFC from the FAFSA will remain the same. What this means is that at a more expensive school you may actually have higher “need” and thus could potentially qualify for more grants/scholarships, lower interest rate loans, etc. This is a good example of why you should NOT rule a school out just by looking at their costs. Don’t go by sticker price, go by net price! Wait and evaluate what your out of pocket will be after all aid is applied!

11 Financial Aid IncludesGift Aid Merit Based Scholarships Grants Need Based Self-help Employment Loans Financial aid may include Gift Aid (scholarships, grants, etc. based on various things) or Self Help (things like work study and loans)

12 Please Remember Scholarships Grants Free money! Free Money!Usually based on merit Does NOT need to be repaid. Grants Free Money! Usually based on need Remember, if you see “grant” or “scholarship” that’s the free money! The good stuff! You do not have to repay these sources of aid.

13 FAFSA Now, let’s talk about the FAFSA.

14 How Do You Apply For Financial Aid?Complete and file the Free Application for Federal Student Aid (FAFSA) and any additional forms required by the school(s) you are considering. List each school you are considering on the FAFSA and meet their financial aid application deadline. Complete the FAFSA as soon as possible after October 1st of the year before you are going to attend school. In order to apply for Federal aid you must complete the annual Free App for Fed Stu Aid, also called the FAFSA. You may complete this application online and must do so annually. You may list whatever schools you are considering on the application and your FAFSA information will be sent to those schools electronically. You don’t have to have even applied or be accepted to list the school on the FAFSA. Please keep in mind you don’t want to do this before Jan1 of each year. It’s something that is good to put in your mind with the tax season. Right after you do your taxes is the best time to do the FAFSA.

15 CAUTION! Avoid being charged a fee to file the Free Application for Federal Student Aid Completion and processing of the FAFSA are FREE If filing via FAFSA on the Web, be sure to go directly to Contact financial aid office for help completing the FAFSA or call FED-AID for assistance The emphasis on this application is the word FREE, be sure you don’t pay to complete it. You want to be sure you go to the “.gov” website listed here and don’t end up on as they will CHARGE you and you will not receive anything extra. If you need help, there is a number listed here or you can also contact the financial aid office at your school for assistance.

16 Completing the FAFSA Apply, even if you think you will not qualify.Read all instructions carefully and ask questions. Keep copies of everything. Follow up with the school after completion. We encourage everyone to apply as you may be surprised. Sometimes federal aid may not be an option based on your EFC but some schools also offer need based aid that you may be losing out on if you don’t do the FAFSA. Be sure to read the instructions and take your time, some small errors could really delay the process for you. It’s also a good idea to follow up with the school a week or so after you finish it so you can ensure they received it and see if there is anything they need from you at that time.

17 FAFSA on the Web What you need to file the FAFSAStudent’s Social Security and driver’s license numbers Possibly parent’s and student’s completed Federal 1040 Income Tax Form. (You do not have to file the tax return before completing the FAFSA.) Parent’s and student’s asset information. Federal Student Aid Information Center FED-AID ( ) A few things you’ll need when you go to do the application are listed here….Note that you do not HAVE to have your taxes to complete the app. If perhaps you won’t file until later in the year and want to do the FAFSA early you may use estimated information and then just need to go back later to update your application after your taxes are completed.

18 FAFSA on the Web The student and one (1) parent must create an FSA ID and password, which allows you to sign the FAFSA electronically. The FAFSA can be filed at In order to submit the application you will need to be able to electronically sign it by adding your PIN. You will need to obtain a 4 digit pin before completing the app for the first time. A pin is needed for both the student and the parent and will be the same number you use each year. You can go online to obtain this at the site listed here or may also get there from the FAFSA home page. This can be created prior to Jan 1 if you choose.

19 FAFSA – Start Here! Here’s a screen shot of the FAFSA home page…you can see where we are showing you the “start” link as well as the “PIN” link here.

20 IRS Data Retrieval for 17-18While submitting FAFSA online, applicant may submit real-time request to the IRS for tax data to be imported IRS will authenticate taxpayer’s identity If match found, IRS sends real-time results to applicant in new window Applicant must then choose whether or not to transfer data to their FAFSA application If you’re someone who has done the FAFSA before you may recall that it can sometimes be a time consuming application. I’m pleased to inform you that there are a few features that have been recently added to try and help with the process. The largest change is the IRS Data retrieval option, which was introduced over the past few years. This will give you the opportunity to retrieve your information directly from the IRS database and import it back on to your FAFSA application.

21 IRS Data Retrieval for 17-18Participation is voluntary (but highly recommended) Reduces documents that will need to be requested by the FA Office Verification – IRS Tax transcript requests! If you file taxes electronically it will typically take a few weeks before the information is available to you for the retrieval on your FAFSA. Again, it is optional, but highly recommended. This will speed up the app process, increase accuracy and lower the likelihood of mistakes, AND could greatly reduce the amount of paperwork we may have to request from you. (Go on to explain verification and tax transcripts vs. tax returns and how data retrieval makes that easier!)

22 FAFSA Confirmation Page (EFC)This is a sample of the confirmation page at the end of the application. You can see in the red circle the EFC location (this is a fake so disgregard the #) and to the right of that some likely grant or loan options that they anticipate you may qualify for. If you see this page you know you’ve finished the app.

23 Federal Grants Now that you’ve completed the FAFSA let’s discuss some of the potential Federal aid options for you…

24 Federal Grants Federal Pell GrantFor , the EFC limit is 5234 Amount ranges up to $5,815 Limited to no more than 12 full-time semesters of the award lifetime Federal Supplemental Education Opportunity Grant (FSEOG) Amount is no more than $4,000 year Schools have limited funding Federal TEACH Grant Strict criteria The first we’ll look at are the Federal grants (remember, grant = free money). The largest is the Federal Pell Grant program….(give details). Next is the FSEOG program, which is another very high need grant but is limited in funding. Some schools receive very little or no FSEOG funds to allocate to the highest need students. If you are a Pell recipient it may be a good idea to inquire with the FA office to see if they have any FSEOG funds to offer. Last is the Federal TEACH Grant. Anyone planning to teach or be an education major? Let me “caution” you some on this grant program…

25 Federal TEACH Grant Currently provides up to $3,728 a yearMust sign an agreement to serve for at least four (4) years as full-time “highly qualified” teacher Must teach in “high-need field” Bilingual education, English language acquisition, Foreign Language, Mathematics, Reading Specialist, Science, Special Education, or another field documented as high-need by the Federal and/or State Government or Local Education Agency. While the TEACH grant sounds like a great plan initially with $3,760/yr in a “grant” there are some key things to consider if you are interested. First it requires you to agree to teach for 4 out of the first 8 years out of school in a low income school and a high need field. You must complete the ATS and counseling in order to be considered and be in an eligible major as determined by your university. You must also maintain a 3.25 overall GPA each semester to continue to receive the funds AND….if you fail to meet the requirements after graduation this grant turns into a LOAN with interest retro-active to the day you received the grant funds! Ouch! That is why we really caution you to consider carefully what that would mean before you take the funds. Maybe even waiting until you are a junior or senior to be sure that is what you want to do would be a good idea…

26 Federal Grant Programs Based on Need for Financial AidAmount Criteria Renewal Federal Pell Grant Up to $5,815* Must file FAFSA, have need for Pell Grant FSEOG $500 to $4,000* Must file FAFSA, Pell Eligible, Funds are limited Must file FAFSA, Pell Eligible, Funds are limited, Federal TEACH Grant Up to $4,000 per year complete ATS, eligible major, counseling with FA, GPA/test scores 3.25 cum GPA, complete ATS, eligible major, counseling with FA Here’s a breakdown of what we’ve gone over for Federal grants…You can see they all require the FAFSA to be filed of course and the amount may vary depending on your EFC and funding availability at the college. Note these are from the year and we don’t anticipate they will change for the coming year but they are federally controlled funds so you must keep in mind that in future years some funds, such as Pell, could be adjusted if funding is cut. * Annual Amounts

27 Self-Help Aid and Federal LoansNext, self-help and loans…

28 Federal Work Study FAFSA must be completed Must have “need”Part-time jobs on campus Part-time jobs off campus America Reads/America Counts Community Service Federal work study is a great opportunity to earn a few dollars while in school. This is flexible with your course schedule and you get an actual paycheck for the hours worked instead of the funds going directly to your student account. This can be used for whatever you may need such as books, food, laundry, etc. Eligibility is based on your FAFSA and requires you to have unmet “need”. However some schools also have campus based work programs that are not need based.

29 Federal Direct Student LoansTwo types of Direct loans Subsidized (government pays the interest while student is in school) Unsubsidized (student is responsible for interest while in school) 16-17 Federal Direct loan program rates Currently both at 3.76% for loans borrowed in 16-17* FAFSA must be completed Repayment begins 6 months after graduation 1.072% origination fee will apply *rates for new loans are subject to change annually The last option for federal funds would come in the way of Federal student loans. There are 2 types of loans the student can take out, which are not credit based and just require completion of the FAFSA and at least half-time enrollment. It is important however to note the differences in the types….the first is the Subsidized loan which accrues NO interest while enrolled. The other is the Unsub loan and the big difference is that with the unsub loans these begin to accrue interest while enrolled. Both are at a fixed 4.66% currently going into the year and repayment begins 6 months after graduation. These interest rates are based on the 10 year Treasury bill plus an “add-on” that varies by loan type and disbursement dates. Basically, these federal loans will now have a market-based rate that is set never to exceed 8.25% in the future. (NOTE: loans will not be variable rate but the rates for loans may vary by the year they are disbursed. Loan interest rates will not change after disbursement.

30 Federal PLUS Loans (Parent Loan for Undergraduate Student)Low interest Federal loan 6.31% currently (Origination fees apply of 4.288% apply) Credit based If not approved, may allow the student to borrow an additional Unsubsidized loan for up to $4000 for the year Payments begin 60 days from the first loan disbursement or you can request deferment Up to 10 years to repay There is also what’s called a Parent PLUS loan. This loan IS credit based but is still a federal loan. It is at a fixed rate of 6.41% currently but you are able to request payments are deferred until after graduation if you wish. Keep in mind though interest will accrue still and all of these loans have some origination fees associated with them that the department of ED will take out of the total amount you borrow. (1.072% for sub/unsub and 4.288% for PLUS)

31 Federal Financial Aid LoansProgram Amount Per Year Criteria Renewal Federal Direct Subsidized Loans FR - $3,500 SO - $4,500 JR/SR - $5,500 Must file FAFSA, Subsidized (Need-Based) Federal Direct Unsubsidized Loan $2,000 Must file FAFSA Unsubsidized (No Need) Must file FAFSA Federal PLUS Loan (Parent Loan for Undergraduate Students) Up to Cost of Attendance minus Financial Aid Based on credit history And here’s a breakdown of the loans we looked at. You can see the amount you may borrow in sub/unsub varies by year in school so the freshmen year the max you may borrow between the 2 is $5,500. The type you would qualify for will depend on your EFC from the FAFSA. Another loan that is less common but that I’d like to mention is the Federal Perkins loan. It is listed here but is a higher need loan aid is limited in funding, similar to FSEOG that we talked about earlier. Not all schools participate or have funding to offer so you’d have to ask them if you’re interested. It is not credit based and actually is currently at a fixed 5% rate.

32 State Scholarships and GrantsAfter you’ve looked into all the federal resources you will next want to look at SC state scholarships and grants…

33 Need Based Aid – State (Public)SC Need Based Grant Must attend a SC public college/university Must file the FAFSA which determines eligibility Determination of the amount is made by the college/university up to $2,500 per year, if full-time, $1,250 if part time Awarded on a first come, first served basis. SC Lottery Tuition Assistance Program May receive up to the cost of tuition (Spartanburg Methodist College-amount is limited to the highest in-state tuition rate at a two-year public institution) pays $100/credit hour or $1200 for full-time Must be awarded federal grants and Need-based Grants before determining eligibility. Cannot receive LIFE Scholarship & LTAP funds. State aid will vary depending on if you go to a public or private school. If you choose a public university there are a few need-based state programs which you’d need to file the FAFSA to be considered for. The amounts vary depending on the school and your unmet need. Student must have unpaid tuition and fee charges remaining after other federal and state grants have paid charges in order to use Lottery funds. Lottery funds can NOT be used for textbooks or disbursed as cash.

34 Need Based Aid – State (Private)SC Tuition Grant Must attend a SC private college/university Must file the FAFSA by June 30 which determines eligibility Must meet one of three criteria: 900 SAT/19 ACT Top 75% of high school class 2.0 high school GPA Amount for freshmen for is $3,200 (actual amount depends on the budget approved by the SC General Assembly) If you choose a private college or university there is also a need-based grant called the SC Tuition Grant. This was up to $3,000 this year and does require the FAFSA be filed by June 30 to be considered. Just a side note for reference, over 80% of AU’s FTF who filed the FAFSA from SC were eligible for this grant. So this is another good example of why even though you may not be Pell eligible there are other funds out there that do require the FAFSA and are still grant/scholarship funds.

35 Merit Based Aid – 4 Year StateScholarship1 Value/Yr GPA SAT / ACT Rank Palmetto Fellows2 $6, / 27 Top 6% Life3 $5, / 24 Top 30% Hope4 $2, 1Students can only receive 1 of the 3 South Carolina merit-based scholarships at once 2Students must meet all three criteria to receive the Palmetto Fellows Scholarship OR alternatively may have a 4.0 GPA and 1400 SAT/32 ACT 3Students must meet 2 of 3 criteria to receive the Life Scholarship 4The Hope Scholarship can only be received during the freshman year *Renewal requirements for LIFE and Palmetto Fellows are 30 hours and a 3.0 GPA In addition to the need-based state aid, SC also offers a number of merit based awards. You can see them broken down here with the smallest being the HOPE scholarship at $2,800 which you would receive if you did NOT qualify for one of the other 2 listed….(go on to list requirements for each merit award as seen above)

36 South Carolina LIFE and Palmetto Fellows EnhancementEnhanced Awards = Additional $2,500 per year for sophomore through senior. (Base Palmetto Fellows Award for Sophomore through Senior =$7,500 & Base LIFE Scholarship = $5,000) Eligible majors include: Science, Science Education, Math, Math Education, Computer/IT, Engineering, Health Care (Medicine, Dentistry, Nursing, etc.) 4 year colleges or universities ONLY To qualify beginning the Sophomore year: Students must have had at least 14 hours of math or science courses during their Freshman year (including AP courses taken during high school). Be a Palmetto Fellows majoring in one of the majors above. Additionally, you may qualify for what is called an “enhancement” which would be an $2,500 scholarship on TOP of the other merit award (LIFE or PF) if you meet the requirements….you must (explain req’s)….

37 Merit Based Aid – 2 Year StateScholarship1 Value/Yr GPA SAT / ACT Rank Palmetto Fellows2 $0 Life3 $5, n/a n/a Hope4 $0 1SC merit based aid options 2Students can only receive Palmetto Fellows at a 4 year college/university 3Students must meet 3.0 high school GPA on 4.0 scale. Awarded up to tuition/fees and $300 for books allowance. 4The Hope Scholarship can only be received at a 4 year college/university *Renewal requirements for LIFE is still 30 hours average and a 3.0 GPA In addition to the need-based state aid, SC also offers a number of merit based awards. You can see them broken down here with the smallest being the HOPE scholarship at $2,800 which you would receive if you did NOT qualify for one of the other 2 listed….(go on to list requirements for each merit award as seen above)

38 4 Year Colleges - SC Scholarships and/or GrantsPlease remember: All initial and renewal criteria must be met before scholarships/grants can be awarded. SC HOPE SC LIFE SC LIFE Enhancement SC Palmetto Fellows SC Palmetto Fellows Enhancement SC Tuition Grant Freshman $2,800 $5,000 No $6,700 $100-$3,100 Sophomore $2,500 $7,500 Junior Senior Here is a breakdown of the 4 year state award options as a reference. As you can see, it is just 1 of the 3 merit awards as an option the freshmen year but the SCTG could go on top! Also note the HOPE is not renewable the soph year so you would want to be sure that no matter which one of these awards you receive you earn at least 30 hours and a 3.0 by the end of the first year to be elig to renew or obtain your merit based scholarship! This is SO important to remember…

39 Institutional Financial Aid and Outside ScholarshipsThe next source you may obtain funding from is usually the largest source, institutional aid…and lastly we’ll discuss outside scholarship options.

40 Merit Based Aid – InstitutionalEarly Decision Scholarship Programs Academic Scholarships Qualifications vary. Determined by, but not limited to: • High School GPA • ACT Scores • SAT Scores • Interviews Athletic Scholarships Determined by coaches Talent Scholarships Theatre, music, etc. Determined by audition Note: Institutional aid is determined individually by each college or university. Institutional aid is usually based on a number of factors and could come from a number of sources. The most common will be academic scholarships based on GPA/test scores/class rank/application, etc. Some have other requirements like a deposit by a certain deadline or additional interview. You may also look at athletic or other talent based awards but be sure to let the admission office know you’re interested so you don’t miss any deadlines, applications, try outs, etc.

41 Outside Scholarships For scholarship information contact your high school, local companies, and civic organizations. Some good Internet websites: Check with your local Chamber of Commerce Here are a few outside scholarship websites that are popular. We encourage everyone to apply for as many of these outside awards as possible. It may seem small to see some at $300 or $400 when trying to cover thousands of dollars but those small awards really add up and could cover books, laptop, etc! Don’t forget local organizations and even your employer to see if there are tuition benefits there.

42 Where Can I Get More Information On Student Aid?Financial Aid Office at the school you plan to attend Federal Student Aid Information Center FED-AID ( ) Your high school counselor’s office Foundations, religious organizations, community organizations, civic groups, and parent’s employers or unions Look for College Goal South Carolina events in February Don’t forget to ask your HS guidance counselor if you have questions about scholarships in the area or that are offered by SC. Again here is the number for the folks with FAFSA AND please take special note of the College Goal South Carolina event for this year being held at the Tri County Tech Campus in Pendleton on Feb 23rd from 10am to 1pm! This is a great chance to go and complete your FAFSA with help from FA professionals from throughout the state! Don’t miss out!

43 Where Can I Get More Information On Student Aid?Mapping Your Future - SC Commission on Higher Education - SC Tuition Grant - SC Student Loan - The Smart Student Guide to Financial Aid - Internal Revenue Service - A few helpful websites for you

44 Finished! Questions? Thank you!AT this time that concludes the presentation, does anyone have any questions!? If not, thank you all so much for your time and I hope that this was informative for you. Thank you!