1 Paying for College FINANCIAL AID

2 What is financial aid? Any assistance used to help a student meet his/her college expenses. This includes: Grants, Scholarships, Paid Student Employment, and Loans Grants: Free assistance typically based on financial need Scholarships: Free assistance typically based on academic or personal merit/achievement Paid Student Employment: Funding based on the hours worked and assistance earned Loans: Funding that must be repaid, typically after college enrollment ends

3 Please do not procrastinate.Process Driven Application for financial aid is an annual process, not an event. A series of input, review, updates, and output prior to final eligibility determination. Delays may be costly and often cause students to miss priority dates. Many resources are quickly depleted or allocated. Please do not procrastinate. Financial Aid is a process and not an event. It is a marathon and not a sprint! Some resources are limited and granted first-come, first-serve. Delays are costly – be sure to READ everything you are sent! Don’t procrastinate! You will start by completing the FAFSA – if you have trouble, COME TO FAFSA Fridays. 10AM to 1PM on Fridays!

4 It all starts with the Free Application for Federal Student Aid (FAFSA)For a Fall 2017 start complete the FAFSA at Create an FSA ID Student and parent each need a unique FSA ID Do not cross s, names, or social’s You will need personal and tax information Use the IRS’s Data Retrieval Tool to automatically populate tax information Dependent Students must provide parent information

5 Important Dates October 1, 2016 March 2017 July - August 2017You can start submitting FAFSA March 2017 Some aid is 1st come, 1st served Most of those limited funds are exhausted July - August 2017 Priority Date will fall in this time (varies by school) This is last date you can submit information and be guaranteed funds will be available by tuition due date You can still apply after, but NO guarantee of funds January 1, 2015 is the first date you can begin submitting the FAFSA The FAFSA is the Free Application for Federal Student Aid – FREE, so NEVER, EVER pay someone to complete the form! SOME aid is 1st come, 1st serve: SC Need Based Grant, certain Federal grants For those limited funds, MOST are exhausted by MARCH! Again, DON’T procrastinate and APPLY EARLY! Priority Date is the last date you can submit information and be guaranteed funds are there at registration – varies by school but generally sometime in July or early August.

6 Federal Funding Principles of Need Analysis Goal of Financial AidPrimary goal is to assist students in paying for their educational investment and is achieved by: Evaluating family’s ability to pay for educational costs Distributing limited resources in an equitable manner Principles of Need Analysis To the extent they are able, parents have responsibility for paying for children’s education Student’s also have a responsibility to contribute The GOAL of financial aid is to ASSIST students in paying for college. This does not mean financial aid will cover ALL costs! Each family is expected to contribute what they can – and so are students. Parents and students have a RESPONSIBILITY to pay a fair portion for a student’s education. The family’s expected contribution is calculated at the FEDERAL level using a specific method that takes into account personal living allowances, variance in income, retirement, and more. It does NOT take into account PERSONAL DEBT. IF you have special circumstances, such as job loss, you can talk to a financial aid counselor about the situation. Each financial aid office promises to fairly distribute the aid.

7 Cost of Attendance (COA) - Expected Family Contribution (EFC)How is aid determined? Cost of Attendance (COA) Tuition & Fees Room & Board Books & Supplies Transportation Personal Expenses Other (daycare, loan fees, etc) Definition of Need Cost of Attendance (COA) - Expected Family Contribution (EFC) = Financial Need SO how is aid determined? Two acronyms: COA and EFC. EFC is that expected family contribution we just discussed. COA is the Cost of Attendance – it includes tuition, fees, housing, transportation, etc. ALL based on figures obtained from the current student population. These are averages. Again, if you have a special situation, please talk to a financial aid counselor. NEED is the difference between your COA and EFC. We cannot award aid outside of these numbers.

8 South Carolina State AidLIFE Scholarship H.S. transcript must be sent to College for evaluation. 3.0 H.S. GPA 1100 on SAT or 24 on ACT Rank in top 30% At four year institution must meet 2 At technical college only GPA Student must complete LIFE Affidavit certifying requirements other than academic. LIFE scholarship is $5000 per year for those who qualify. ($2500 fall and $2500 spring) Lottery Tuition Assistance Potentially eligible if student does not meet LIFE requirements Only available at SC Technical Colleges Pays towards tuition only $95 per credit hour up to a maximum of $1,140 per semester You MUST have your FINAL, OFFICIAL High School Transcript sent to Admissions (in some case, Financial Aid). You MUST sign the LIFE Affidavit that certifies you meet additional requirements. MUST HAVE BOTH TO FINALIZE AWARD! $5000 per YEAR – INCLUDES the $300 book stipend.

9 Private Scholarships Where to search? Check Online SourcesNEVER PAY FOR SEARCHES! Where to search? Parents’ employers Guidance Office Local Community Non-Profits Institution Financial Aid Offices Check Online Sources NEVER PAY FOR SEARCHES!! Where can you find scholarships? Everywhere! Employers (parent and student – think Chick-Fil-A, or Duke Energy at TCTC) Guidance Counselors Institutional Financial Aid office – college-specific awards Local Clubs – Rotary, DAR, Churches IF you get a private scholarship: BE SURE you have your COLLEGE ID NUMBER and NAME on ALL paperwork!

10 Federal Work Study Opportunity for part-time employment.Jobs available on or off campus Provides for monthly cash flow to student. Supplements classroom learning with work experience often related to student’s program of study. Good workers also acquire positive recommendations for future scholarship, assistantship, or employment applications. Paid like a regular job and provides monthly cash flow. Gives you the chance to build recommendations for the future. Exhaust programs like this BEFORE you apply for a loan!

11 College Savings Plans SC Prepaid Tuition PlanYou will need to contact your institution if you will be using this. Typically have to provide copy (front and back) of enrollment card to Business Office. Market Based 529’s Reach out to financial institution early to determine process and know amounts Request funds to be transferred to college of choice These are getting less common as this program has ended. IF you have this – contact your institution directly. At TCTC, we would refer you to the Business Office. TYPICALLY, you will have to provide a copy of BOTH the front and back of the enrollment card to your school.

12 Veterans’ Affairs Eligible students: Post 9/11 Assignment of Benefits: Eligible students: Complete electronic application Complete registration process Contact a VA Representative at your college. Post 9/11 Assignment of Benefits: Dropdown Post 9/11 GI Bill and Other Programs Click Post 9/11 GI Bill Click Transfer of Post-9/11 GI-Bill Benefits to Dependents (TEB) on left side Complete all steps as indicated VA funds are typically not received by tuition due date We have a Veteran’s Representative in our office you have specific questions. For Post 9/11: These benefits may be transferred from service-member to child. Chapter 35: Permanent, total disability of service-member or service-member died while on active duty. SIDE NOTE: ALL students considering Reserves or Guard. You will NOT be considered a Veteran on the FAFSA, despite your training period and getting a DD-214.

13 Student and Parent LoansNot all schools automatically package loans. If you require assistance beyond grants, scholarships and work to meet educational expenses you must complete: The FAFSA A loan request form (college website) Entrance counseling and Master Promissory Note (MPN) NOT all schools automatically package loans, but SOME DO. Again, READ everything you are sent. Sometimes you have to actively DENY or CANCEL the loan – otherwise you are LIABLE for repayment later! Typically, you must complete the FAFSA, a loan request form at the college as well as entrance counseling and a Master Promissory Note. Do your research!! FOR PLUS LOANS: Parents must complete application online at studentloans.gov AND USUALLY a separate form from the individual college!

14 Student and Parent LoansTo Borrow or Not to Borrow Incurring student or parent loan debt is just like incurring any other consumer debt. Repayment of principle and interest is expected. Repayment of student loan debt is NOT like other consumer debt. Creditor is ‘Uncle Sam.’ Has ability to garnish wages, income tax refunds, and any other federal or state payments to borrower. Many employers cannot and others will not hire persons who are delinquent or in default on federal student or parent loans. Student/Parent Loans may not be discharged in Bankruptcy. To borrow or NOT to borrow. INCURRING the debt is like incurring any other consumer debt! BUT, REPAYMENT is NOT like repaying other consumer debt!! Your creditor is Uncle Sam! Wages and tax refunds can be garnished WITHOUT a court order Many times employers can or will not hire those in default

15 Student and Parent LoansTo Borrow or Not to Borrow Be aware of all terms of the loan Federal student loan interest rates: Direct Stafford Loan Subsidized/Unsubsidized – currently 3.76% Direct Parent PLUS Loan – currently 6.31% Monitor total amount borrowed and monthly payment amounts. Payment amount rises with each additional loan PLEASE, PLEASE read it carefully – it is lengthy but it is your promise, your CONTRACT, to repay the debt. Signing it, you AGREE to EVERYTHING in that CONTRACT. If you are concerned, please come into the office for individual counseling. We can help you map an educational financing plan for your degree – and look to minimize loans or not even need them. We can also work with you to determine your repayment options.

16 How much should be borrowed?Deduct grants, scholarships and Work-Study award amounts from your educational expenses. Deduct amount you and/or parents/family will pay toward expenses. Review remaining costs and determine how much you can cut those costs. Look beyond first year expenses (Hint – never borrow more than is absolutely necessary) Review remaining costs and determine how you can cut those – borrow books, buy used books instead of new, carpool, make a budget and stick to it! Again, if you need help, we are here. Again, PLAN your education and HOW you will finance it over the whole degree! Don’t plan a semester, plan your degree.

17 When to borrow? Apply in time to meet payment deadlines.The financial aid office does not set payment dates. Generally loans are requested for the academic year (Fall/Spring) There are federal limits on amounts you can borrow. Disbursement of loans for first time borrowers delay of 30 days Receiving a loan is a process which takes time. Please make sure to follow the instructions and READ. Disbursements are the date your money is RELEASED to the school NOT YOU. For first time borrowers, there will be a delay of 30 days. Be SURE to apply in time to meet payment deadlines – this is PROCESS that takes TIME. From time of submitting the loan paperwork, it will be at least two weeks before it appears on your account and sometimes longer during peak processing.

18 Financial Education Follow us on Twitter! @AuntFAEWe are here to empower you with the information and tools to be financially literate and successful in college and beyond. We provide information and tools on the subjects of: Budgeting Credit & Credit Cards Personal Finance & Debt Management Loan Management Follow us on us at to set up an appointment Let’s Make Sense of your Dollars! Budgets can help you stay on track and cut expenses. Need help learning to budget? Go to Financial Avenue. Financial Avenue is offered through Inceptia. We are offering you access through our partnership with them. AuntFAE stands for Financial Aid Expert. We will be tweeting information on loans, debt management, financial literacy, FAFSA, TCTC information, deadlines! and more

19 What’s Next? Do your research when deciding where to go to collegeKnow your college’s login information Log in everyday to check for important information. Most schools only send communications through school If you are unsure, ask questions immediately! Most of all: READ everything! Chat with Financial Aid through our website: CHECK every day!! ALL official communication will be sent to your eTC address! Look for red flags, which must be resolved before we can finalize your aid. If you have questions on how to resolve, CALL or us. You can also find us on TWITTER - @AuntFAE Or try our CHAT feature on our website.

20 Top Five Tricks, Tips, & Traps for Financial AidDo things early, respond quickly, and check back regularly Check your s and account daily Not just for financial aid, but for all offices and information from professors Keep your grades up Be prepared for the unknown Create your own budget prior to each semester and practice money management

21 Questions?