Financial Aid Presentation

Why is a work-study job different from other jobs?

(1) the hours are flexible and (2) when students apply for financial aid the following year, money earned through this program is not used to determine financial need.

What tips should you keep in mind when applying for financial aid?

-Apply early -Information reported on the FAFSA is confidential and used only to determine your financial aid eligibility -You may be selected for verification -Supplemental applications or forms may be required -Keep track of application DEADLINES! -Keep a copy of everything you submit -Reapply for financial aid every year

What is ISAC?

A mission-driven non-profit agency that administers resources to help students pay for college. ISAC gives Illinois students information and assistance to help make education after high school possible.

What is federal work-study?

A need-based financial aid program that allows eligible students to work part-time on or off-campus.

What is a grace period?

A set amount of time given by the federal government before you are required to start making payments after you graduate or separate from your institution.

Define college

An institution of higher education that awards a degree or credential after high school. These are your universities, community colleges, trade schools, and more, Colleges offer different types of degrees and certifications that vary in length. Vocational, trade, and associates degrees typically take about 2 years to complete, while bachelor's degrees take about 4 years and master's degrees take an additional 1 to 3 years beyond the bachelor's.

How do you maximize your financial aid eligibility?

Apply early and meet the deadlines. The FAFSA first becomes available on October 1st each year to high school seniors and college students who are U.S. citizens and eligible non-citizens

What is self-help aid?

Campus-based work opportunities and loans. Work-study helps students pay for educational costs such as books, supplies, and personal expenses. Federal work-study is a program that allows students to earn funds through part-time employment to help meet their financial needs and obtain work experience.

How do colleges determine financial needs?

Colleges will subtract your EFC from their COA. At each college the financial aid office will calculate your financial need by subtracting the EFC from the COA. The EFC will be the same at each college, but the COA will differ from college to college.

Who do you contact to find out more about institutional aid?

Contact the financial aid offices of the schools you are applying for admission and ask them for the school's deadline for institutional aid to ensure you do not miss out on any grants and scholarships from the school. Keep in mind that each school may have a different deadline

Explain Federal Direct Subsidized and Unsubsidized loans

Direct Subsidized and Unsubsidized Loans are offered to undergraduate students at the same interest rate. They also receive a six month grace period. This means they have six months after separating from their institution (graduation, leave of absence, dropping out, etc.) before they are required to start making payments on their student loans.

True or False: Recipients of the TEACH grant must teach full-time in designated teacher shortage areas within 4 years of completing an academic program

False

True or False: Student loans must not be repaid

False

True or False: The Monetary Award Program is one of the smallest state programs in the country.

False

True or False: The Pell Grant is available to graduate students.

False

True or False: Your COA will be the same from college to college.

False

True or False? It is the parent's responsibility to pay for college

False

What are the main two sources of financial aid?

Federal Government and State: ISAC and U.S. Department of Education (ED)

What does FSEOG stand for?

Federal Supplemental Education Opportunity Grant

How do you provide a signature for the Alternative Application?

Filing an Alternative App electronically requires a PIN for electronic signature. To obtain a PIN, all applicants must provide an email address. Questions on the Alternative App are, for the most part, the same as the ones on the FAFSA.

What are the main 4 sources that financial aid comes from?

For the Federal Government, think the U.S. Department of Education. In Illinois, for state and some federal financial aid, think of ISAC. Colleges, universities, and other higher education institutions also offer financial aid to their students. Many agencies, associations, corporations, and more award scholarships to college students. These usually have private funds.

What are the two basic types of financial aid?

Gift aid and self help aid

What is gift aid?

Grants and scholarships--basically money you don't have to pay back. Grants are usually awarded on a financial need basis or limited ability to pay for college. Scholarships may be awarded for academic achievement, athletic ability, artistic talent, background, or other attributes you may have.

What does an ISAC Corps Community Member do?

Help make college accessible and affordable for students

What are Grants for Dependents of Police, Fire and Correctional Officers?

If a correctional officer, an Illinois police or fire officer is killed or sustains injuries resulting in a permanent disability (at least 90%) in the line of duty, the officer's spouse and children may receive grant assistance toward tuition and mandatory fees. It may be used for 8 semesters or 12 quarters of undergraduate or graduate enrollment.

What does ISAC stand for?

Illinois Student Assistance Commission

What can Illinois students do that don't meet the criteria for filing for FAFSA?

Illinois students who don't meet the criteria for federal student aid can complete the Alternative Application at www.isac.org/alternativeapp.

What happens to information reported on the alternative app?

Information reported on the Alternative App will be used to calculate an Expected Family Contribution (EFC) and financial aid eligibility. Students must complete an Alternative Application for every year they plan to be in college. Just like the FAFSA, the Alternative Application allows students to list up to ten colleges and the application is completed FREE

Why should you know your interest rate?

Interest rates can be variable or fixed and can vary depending on the type of loan. Knowing your interest rate will help you know how much money you owe in the long run.

Why is completing the FAFSA important?

It determines eligibility for Federal and State Financial Aid Programs. In addition, it is also used by colleges and universities to award institutional aid. Remember that the colleges set their own priority financial aid deadlines, and these will often be earlier in the year. Again, you will want to complete your FAFSA as soon as possible after October 1st

What is the purpose of The MTI Scholarship Program?

It encourages academically talented minority students to pursue careers as teachers at nonprofit Illinois schools. It awards up to $5,000 per academic year for a maximum of 8 semesters or 12 quarters of assistance. Recipients must sign an agreement promising to start teaching within one year for each year of scholarship assistance received or it turns into a loan at a 5% interest rate.

How is your eligibility for financial aid determined?

It is determined by your and your family's financial situation, and by filing your application on time. In some instances, colleges may use additional forms.

What is the Pell Grant?

It is the largest grant program administered at the federal level. It may be used for any educational expense. Award amounts are dependent on funding approved by the Federal government and are calculated by the college.

What do I need to receive a FAFSA ID?

It requires a Social Security Number; however, parents who do not have one can still sign the FAFSA using a signature page that must be printed, signed, and mailed to the Department of Education.

What should you consider when evaluating loans?

Make sure you are aware of these four things when exploring your loan options. What is the source of your loan? Is it a federal loan or a private loan? It is important to know where the loan is coming from so you know who to contact for any questions.

How do I use the IRS data retrieval tool?

Once on the IRS website, they will enter their basic information as it appears on their latest tax return (for example: name, address, marital status, and filing status) and click submit. If the system finds the information, it will give the user the option to import that data on to the FAFSA

This loan has the highest interest loan and is a credit-based loan

PLUS loans

Do you have to pay to fill out the FAFSA?

Remember that the first word in FAFSA is FREE, do not pay to fill out this form

What is financial aid?

Specific borrowed, given, or earned money that comes from various sources to help pay for college. It is intended to make up the difference between what your family can afford to pay and what college costs.

How do I prepare for the FAFSA?

Take some time to print the FAFSA on the Web Worksheet from www.fafsa.gov. Gather all documents needed to fill out the form, using the list provided. Then, walk through the FAFSA and make notes of the questions you need help with. It's great practice, even if college is still a few years away!

What is the ING program?

The Illinois National Guard Grant is an entitlement program awarded to eligible recipients regardless of the funding level. The program can be used to pay for undergrad and graduate education at Illinois public universities or community colleges.

What is the IVG program?

The Illinois Veteran Grant is an entitlement program awarded to eligible applicants regardless of the funding level. It pays eligible tuition and mandatory fees at Illinois public colleges or community colleges. Qualified veterans may receive benefits at the undergraduate or graduate level for the equivalent of four academic years of full-time enrollment.

What is the MAP Grant?

The Monetary Award Program. It's need-based and goes toward tuition and mandatory fees for undergraduate students at approved Illinois schools. A FAFSA must be submitted for consideration. They are subject to funding and awarded on a first-come, first-serve basis.

What is the Illinois SETTW?

The Special Education Teacher Tuition Waiver exempts recipients from the payment of tuition and mandatory fees for up to four calendar years at any one of the 12 public four-year colleges in Illinois. It encourages current teachers (not certified in a special education discipline) and academically talented students to pursue careers at nonprofit Illinois public, private or parochial preschool, elementary or secondary school teachers in any area of Special Education.

What is the nation's largest source of aid?

The U.S. Department of Education

What is the difference between the financial need and the amount of financial aid offered by the college?

The difference between the Financial Need and the amount of financial aid offered by the college is often known as the "gap" which the family also will be responsible for paying out-of-pocket.

What is the U.S. Department of Education (ED)?

The federal agency that provides college funding. It's the nation's largest source of student aid.

What happens after you complete the financial aid application process?

The financial aid administrators at each college that you are considering will "package" all available aid options and send an award offer for consideration. Because each college has its own packaging policy, the types of financial aid offered to you will probably vary from college to college.

Why is it important to know what type of loans you're borrowing?

The terms and conditions for these may be different, so always know what loans you have.

What is the value of a college degree?

There are benefits that go along with the completion of any educational goals. Income increases along with education whole at the same time, unemployment rates are lower for those with education beyond high school. Basically, the higher the degree, the higher the pay and the lower the likelihood of being unemployed.

What are repayment plans?

These typically apply only to federal loans (not private loans). The federal government offers many different repayment plans that allow you to lower your monthly payments based on your income. There are also options that allow you to make smaller payments or stop your payments in the event of unforseen circumstances such as job loss, illness, disability, or other acceptable circumstances.

How does the FSEOG work?

This grant gives priority to students (in lowest EFC order) and Federal Pell Grant recipients. It is available to undergraduate students. The award amount is calculated on the basis of the student's need and availability of funds at the college. The college determines eligibility and students are notified via their financial aid award letters.

Who can receive the Iraq and Afghanistan service grant?

This grant is available to students whose parent or guardian was a member of the U.S. Armed Forces and died as a result of service performed in Iraq or Afghanistan after September 11, 2001

What is the purpose of the Teacher Education Assistance for College and Higher Education (TEACH) grant

This grant rewards undergraduates, post baccalaureate, and graduate level students who are or will be taking course work necessary to become elementary or secondary teachers; recipients must sign an Agreement to Serve saying they will teach full-time in designated teacher shortage areas for 4 years (within 8 years of completing an academic program).

What is verification?

This is a common process used by colleges and universities to confirm that the data on the FAFSA is correct. You may be asked to submit additional documentation. Provide only the information requested and be sure to submit it on time

What is the Cost of Attendance?

This is generally an estimate of expense that students may have while attending college for the year. Common expenses included in the COA are tuition, fees, living expenses (room and board), books and supplies, and transportation.

What is the first step in applying for federal and state financial aid programs?

To complete the Free Application for Federal Student Aid (FAFSA). This application, which is available to complete online (preferred method), will use income, assets, and other factors to determine the amount that you and your family are expected to contribute to your college expenses.

How does the ED determine financial need?

To determine your financial need, the U.S. Department of Education uses a formula established by Congress called Federal Methodology. This formula uses information from the FAFSA to determine the amount that you and your family are expected to contribute towards your college education, which is called the Expected Family Contribution (EFC). Because it is based on family information, your EFC will remain the same regardless of the college you attend.

How can I simplify the process of entering tax data on the FAFSA?

To simplify the process of entering tax data on the FAFSA, students and parents are able to transfer their tax data directly from the IRS using the IRS Data Retrieval Tool (DRT). Students and parents will first answer a few questions to determine if they are eligible to use the DRT. If they are, they will get the option to go to the IRS website.

What is the difference between subsidized and unsubsidized loans?

To understand the difference between Subsidized and Unsubsidized, consider this: When will interest start to accumulate? Eligibility for Direct Subsidized Loans is based on financial need. The federal government pays the interest on your behalf while you are enrolled at least part-time during grace periods and authorized periods of deferment. This means you owe exactly what you borrow at the end of 4 years in school because the government has paid your interest while you were in school.

True or False: A grant or scholarship with after graduation requirements may turn into a loan if the requirements go unfulfilled.

True

True or False: A student must apply to and accept a federal work-study position in order to receive the funds.

True

True or False: Campus-Based programs are administered directly by the financial aid office at each participating school.

True

True or False: Graduate/Professional students are only eligible for Direct Unsubsidized Loans at a higher interest rate

True

True or False: It is the student's responsibility to pay for college

True

True or False: Many agencies, associations, corporations, and more award scholarships to college students. To access these private funds, different eligibility requirements, award amounts, application forms, and deadlines apply.

True

True or False: The Grants for Dependents of Police, Fire, and Correctional Officers may be used for 8 semesters or 12 quarters of college enrollment.

True

True or False: The college determines the annual minimum or maximum amounts for Federal Work Study.

True

True or False: The most expensive schools may also end up being the most affordable as they may have more funds available to award.

True

True or False: There are limits to how much money you can borrow from federal loan programs.

True

True or False: To apply for state and federal financial aid programs, the FAFSA must be completed.

True

How do Campus Based programs differ from the Federal Pell Grant program?

Unlike the Federal Pell Grant Program, which provides funds to every eligible student, the campus-based programs provide a certain amount of funds for each participating school to administer each year.

Where do I go for additional resources on post secondary planning?

Visit the ISAC Student Portal for additional resources on scholarships, college search, money management, and college planning in general. ISAC's mission is for all Illinois students to have access to a higher education. Take advantage of the resources that are available on our website as well as those available through the Department of Education. A lot of this information is also available online. Visit www.ISAC.org.

How can I get assistance with completing the FAFSA?

When it's time to complete the FAFSA, visit studentportal.isac.org/calendar to locate a FAFSA completion workshop near your home or school. All workshops listed are open to the public for Free!

Are parents information needed on the FAFSA?

While the application is to determine student eligibility for financial aid, we will still need some parent information. Please note that most students must report parent information until the age of 24. For financial aid purposes, only biological, adoptive, or stepparents should be reporting information on the FAFSA, unless they have legally adopted the student. Legal guardians are not considered parents for the purposes of the FAFSA.

How can you complete the FAFSA?

You can complete the FAFSA on the Web at www.fafsa.gov. Filing your FAFSA electronically requires a Federal Student Aid Identification (FSA ID) that serves as an electronic signature, which can be obtained online at www.fsaid.ed.gov. Information reported on the FAFSA will be used to calculate your Expected Family Contribution (EFC) and financial aid eligibility. You must complete a FAFSA for every year you plan to be in college.

How many colleges can you list on FAFSA on the web?

You can list as many as ten colleges

How do I sign the FAFSA?

You will need to provide an electronic signature to sign the FAFSA or Alternative App and complete the application submission process. Note that students and parents must have separate FSA IDs or PINs. An email address can only be associated to one FSA ID or PIN so it is important that students and parents have an email address that will be used for a few years since you will use your FSA ID or PIN yearly and receive important financial aid information throughout the process.

Why was ISAC created?

t was created in 1957 by the Illinois General Assembly for the purpose of making college an accessible and affordable option for families.