UNDERSTANDING THE WORLD OF

FINANCIAL AID

Ellie Geiman

McDaniel College

THE KEYS TO

WHAT IS NEW !!!!!!!!!

Net Price Calculator Effective Oct. 29 2011, a federal

mandate required all colleges to post a net price calculator on their Web sites that factor in everything from living expenses and books to estimated grants for particular institutions.

Deferred Parent PLUS Loan

What does a Net Price Calculator do???? The calculator will take your personal

information such as Family income and size to give you an overview of the cost and your expected out of pocket.

Please be aware that colleges calculators may be different.– Example: a college may not show student loans– Example: a college may not show Academic

Merit scholarships

What Information do I need?? Net Price Calculator

Each college calculator will be different.1. Age

2. Marital Status (Student & Parents of Dependent Students)

3. Children

4. Family Size

5. Number of Family Members in College

6. Student & Parent Income for Dependents (or Household Income for Independents)

7. Living Status (on campus, off campus, or with parents)

8. Residency Status (in-state or out-of-state)

9. Student academic information: GPA, SAT/ACT, High School class rank

10. Bank statements, Untaxed Info such as :child support, contribution to a retirement plan

Deferred Parent PLUS Loans One of the tools to assist you in paying your

family contribution is a loan in the Parent’s name.

You now have the option to NOT make payments while your student is enrolled at least half time. Interest does accrue.

Parent PLUS loan are done at

www.studentloans.gov and it will ask if you want to defer the loan or you can contact

Department of Education after the loan is processed

Important Deadlines FAFSA MARCH 1st (Date Received)

Date used by Maryland State to award need based funds

Recommend using the Electronic PIN Signature

School DeadlineVerify with College’s Financial Aid Office

Maryland State Due March 1st RECEIVED State Draws FAFSA Info for Awards April 1st

Deposit Date May 1st Commitment to a School (Non refundable)

Time TableCurrent Seniors in High School

FAFSA Due March 1, 2013 Use 2012 Federal Tax Admission Deposit deadline May 1, 2013

Current Juniors in High SchoolFAFSA Due March 1, 2014 Use 2013 Federal Tax Admission Deposit deadline May 1, 2014

Current Sophomores in High School FAFSA Due March 1, 2015 Use 2014 Federal Tax

Admission Deposit deadline May 1, 2015

Current Freshmen in High School FAFSA Due March 1, 2016 Use 2015 Federal Tax

Admission Deposit deadline May 1, 2016

Required Forms FAFSA : All Colleges use for Need Based Funds

CSS Profile : College Board Application

Required by select colleges (Cost involved)Confirm if college requires and due date

College Institutional Form:Some college have their own form instead of the CSS Profile. Check College website or call to confirm

what form are required.

Colleges may require Tax form documentation

FAFSA On-Line www.fafsa.gov

The Federal Government would prefer all FAFSA transactions be done on-line.

Student and Parent must have a PIN number. The PIN number is an electronic signature. PIN numbers remain the same for the complete

time of a student’s education. Doing FAFSA on line is timely and accurate. The FAFSA must be done each academic year.

SOURCES OF FINANCIAL AID

FEDERAL GOVERNMENT

STATE GOVERNMENT

PRIVATE COLLEGE FUNDS

SCHOLARSHIP FOUNDATIONS

CIVIC ORGANIZATIONS

MILITARY

FEDERAL GOVERNMENT Federal Pell Grant Federal SEOG Grant Federal TEACH Grant Direct Student Loans Perkins Loan Federal Work Study Federal Direct PLUS Loan ( Parent )

TEACH GRANT

Federal Government

Must teach in high need subject areas

Must teach in schools servicing low income families

Four year teaching obligation

$4000 per year

If service is not provided in area designated the grant becomes a loan

State Funding Need Based

Educational Assistance GrantGuaranteed Access Grant

Senator & Delegate Contact your district Senator and Delegates directly

Check Maryland Web Site for other programs http://www.mhec.state.md.us/financialaid/

FEDERAL CALCULATIONS EFC: Expected Family Contribution

Formula For NeedCOST OF EDUCATION (From each College)MINUS Expected Family Contribution Student’s Federal Financial Need

Example: Cost of ABC College $30,000Expected Family Cont $

5,000Federal Need $25,000

FINANCIAL AID AWARD

Cost of College: $30,000/YearFinancial Aid:

Pell Grant ( $2,000)SEOG Grant ( $ 500)State Grant ( $2,500)Academic Schp ( $5,000)Private Grant ( $1,000)Direct Loan ( $5,500)

Total Aid $16,500

Family Owes the College $13,500

How do we cover what we owe?? Cash Payment Direct PLUS Loan (parent) 10 year College Contract Plan (over school year) Private Education Loans for Parent Private Education Loans for Student Home Equity

RESOURCES/RESEARCH Check the Internet Employee Benefits High School Guidance Office Civic Organizations ( State and Federal Level )

Scholarship Search

Find one that is FREE !!!!!!!

Build a profile: the more details about yourself that you provide, the better the Scholarships.You still have to do the application and required documentation or essay.Provide an email address that you will monitor oftenwww.finaid.org is FREE

KEY POINTS TO REMEMBER FAFSA is due March 1st before Fall

enrollment (FAFSA must be done each year) Contact colleges for their requirements Review Student Aid Report Work with High School Guidance Office

for outside scholarships Meet all deadlines

Contact Information Ellie Geiman Associate Director of Financial Aid McDaniel College 2 College Hill Westminster, MD 21157

Phone: 410-857-2235 Fax: 410-386-4608

egeiman@mcdaniel.edu