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Quick Reference to Financial Aid
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What is EXPECTED FAMILY CONTRIBUTION or EFC? "The estimated amount a family
can contribute to college costs. The formula, established by Congress, is as
follows:
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Cost of attendance to the College(s) you have chosen
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MINUS
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Expected Family Contribution (same for any college you apply to)
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EQUALS
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Need Based Aid Eligibility (different for each school)
The Estimated Family Contribution is determined by taking into
account your family's income, some assets, and certain expenses that are
required (i.e. taxes), necessary (i.e. basic living expenses), and related to
earning income (i.e. employment-related expenses). This information is
obtained through the FAFSA form."
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There are two different types of Aid:
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>Gift Aid
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>Self-Help Aid
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Gift Aid does not have to be paid back
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TYPES OF GIFT AID
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WHAT IS IT?
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WHERE DOES IT COME FROM?
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Scholarships
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Free money available from various resources with a variety of eligibility
requirements (academics, community service, athletics, health issues, parent's
career, college major, etc.). Does not get repaid.
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colleges, businesses, organizations, clubs, parent's employers, banks,
department scores, etc.
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Federal Pell Grant
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Free money based on financial need and information taken from the FAFSA form.
Does not get repaid.
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the federal government
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Federal Supplemental Educational
Opportunity Grant (FSEOG)
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Free money based on exceptional financial need and information taken from the
FAFSA form. Does not get repaid.
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the federal government
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Self-Help Aid - this money needs to be repaid
or the student works to earn the money
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TYPES
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WHAT IS IT?
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WHERE DOES IT COME FROM?
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Work Study
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Provides part-time jobs for students with financial need, allowing them to
earn money to apply toward their education expenses. Awarded through the FAFSA
form.
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Federal Government determines eligibility through FAFSA. School assigns job.
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Stafford Loan
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Two types of Stafford Loans: 1) Subsidized Stafford Loan is need
based and the federal gov't pays the interest while you are in college.
Repayment of loan can be held off until six months after graduation. 2)
Unsubsidized Stafford Loan is NOT need based. You will be charged
interest from the time the loan is borrowed until it is paid back in full.
Repayment begins upon graduation.
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Federal Government, Banks, Loan Departments; need to file the FAFSA form.
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Plus Loan
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Not a need based loan and is for Parents to borrow to help pay for the
students college education. Parents begin repaying this loan while the student
is in school.
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Federal Government, Banks, Loan Departments; need to file the FAFSA form.
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Federal Perkins Loan
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For Exceptional Financial Need. Payments may be deferred until nine months
after graduation.
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Federal Government; need to file the FAFSA form.
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The Hope Scholarship Credit - "May be claimed by
individuals for tuition expenses incurred by students pursuing college or
graduate degrees or vocational training. These credits are reported on IRS
Form 8863. The Hope Scholarship Credit provides a maximum allowable credit of
$1,500 per student for each of the first two years of post-secondary
education. The Hope Scholarship Credit allows taxpayers a 100% credit per
eligilbe student for the forst $1000 of tuition expenses (but not room, board
or books) and a 50% credit for the second $1000 of tuition paid."
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The Lifetime Learning Credit - "May be claimed by
individuals for tuition expenses incurred by students pursuing college or
graduate degrees or vocational training. These credits are reported on IRS
Form 8863. The Lifetime Learning Credit allows a credit of 20% of qualified
tuition expenses paid by the taxpayer for any year the Hope Scholarship is not
claimed. The Lifetime Learning Credit is equal to 20% of the amount of tuition
;paid by the taxpayer and is available for the first $10,000 of tuition."
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PLAN for COLLEGE COSTS - Below is a list to help you
think about College Costs
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Tuition
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Room/Board
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Texdtbooks/Fees
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Insurance
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Gas
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Food
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Car Payment
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Campus Parking Sticker/Pass
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Toiletries and other necessities
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Travel (home to see mom and dad, etc)
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Clothes and other shopping
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Sorority/Fraternity or other Club Fees
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Furnishings
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Beware of Scholarship and Financial Aid Fraud
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The FTC cautions students to look for tell tale lines:
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>"This scholarship guaranteed or your money back."
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>"You can't get this information anywhere else."
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>"All we need is your credit card number or bank account to hold the
scholarship for you."
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>"We'll do all the work."
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>"This scholarship will cost some money."
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>"You've been selected by a 'national foundation' to receive a scholarship or
'You're a Finalist' in a scholarship competition you've never entered."
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