1. www.collegezone.com
The trusted source for college information.
The
Financial Aid
Process
Paying for College
2007-08
2. About ISAC
The Illinois Student Assistance Commission is a non-
profit state agency, committed to promoting equal access
to quality postsecondary education. In addition to
administering over $400 million in scholarships and
grants, we have created a one-stop trusted source for
college information, College Zone.
3. Financing College
“Can I afford it?”
“How much will it cost?”
“What is financial aid?”
“FAFSA, when to apply?”
“Where can I get it?”
“Who can help?”
4. The Power of Education
Min. wage in IL:
$ 6.50 hr
= $243.75 week
= $975 month
= $11,700 year
Source: Bureau of the Census; Bureau of Labor Statistics (2006).
5. Ways to Pay for College
• Financial Aid Programs
• 529 Savings & Prepaid
Tuition Programs
• Employer Tuition
Reimbursement Plan
• Tuition Benefits
• Tuition Payment Plans
Start early…
6. Type of Financial Aid
There are two basic types of financial aid.
Grants
gift aid
Scholarships
self-help Work-Study
aid
Loans
These funds may be merit-based, need-based,
or non need-based.
7. Sources of Financial Aid
Financial aid comes from a variety of
sources.
1. Federal Government
2. State Government
3. College (Institutional Aid)
4. Outside/Private Sources
8. Sources of Financial Aid
The ‘Must-Get-To-Know’ Financial Aid Sources
Illinois Student Assistance Commission
(ISAC) - www.collegezone.com
The state agency that administers state and federal
grants and scholarships, college savings and
prepaid tuition programs, and educational loans
U.S. Department of Education (ED) -
www.ed.gov
The federal agency that provides college funding in
the form of grants, scholarships, and educational
loans
9. The Big Three
Financial Aid Programs
A complete FAFSA is required.
Federal Pell Grant – $4,310 *
Federal Supplemental Educational
Opportunity Grant (FSEOG) – $4,000 *
State of Illinois Monetary Award Program
(MAP) Grant – $4,968 *
Total = $13,278
* Maximum award for 2007-08
10. Illinois Student Assistance Commission
State of Illinois Financial Aid Programs
Monetary Award Program (MAP)* – $4,968
Silas Purnell IL Incentive for Access (IIA) Grant*
– $500
Illinois Veteran Grant (IVG)**– 4 yrs
Illinois National Guard Grant (ING)** – 4 yrs
Grants for Dependents of Police, Fire, and
Correctional Officers** – 4 yrs
Bonus Incentive Grant (BIG) Program** – $440
* FAFSA Required
** Program Application Required
11. Illinois Student Assistance Commission
State of Illinois Financial Aid Programs
Merit Recognition Scholarship (MRS) – $1,000
• Not funded in 2007-08
Robert C. Byrd Honors Scholarship – $1,500
Illinois Future Teacher Corps (IFTC) Program**
– $5,000/$10,000
Minority Teachers of Illinois (MTI) Scholarship
Program** – $5,000
Illinois Special Education Teacher Tuition
Waiver Program (SETTW)** – up to 4 yrs
* FAFSA Required
** Program Application Required
12. U. S. Department of Education
Federal Financial Aid Programs
Federal Pell Grant* – $4,310
Federal Supplemental Education Opportunity
Grant (FSEOG)* – $4,000
Federal Academic Competitiveness Grant
(ACG)* – $750 1st yr, $1300 2nd yr
Federal Science & Mathematics Access to
Retain Talent (SMART) Grant* – $4,000
* FAFSA Required
** Program Application Required
13. U. S. Department of Education
Federal Academic Competitiveness Grant (ACG)
• Must be a U.S. Citizen New!
• Be a Federal Pell Grant recipient
• Be enrolled full-time in a 2 or 4-year degree
program
• Grant may be used for any educational
expense, such as tuition and fees, room and
board, and living expenses
* FAFSA Required
14. U. S. Department of Education
Federal Academic Competitiveness Grant (ACG)
• Maximum award amount:
New!
Up to $750 first-year students
Up to $1300 second-year students
• Have completed a rigorous (as defined by a state or
local educational agency) program of study of at
least:
4 years of English
3 years of Math
3 years of Science
3 years of Social Studies
1 year of a Foreign Language
* FAFSA Required
15. Federal Science and Mathematics
Access to Retain Talent (SMART) Grant
Must be a U.S. Citizen
New!
Be a Federal Pell Grant recipient
Maximum award amount of $4,000 per academic
year.
Be enrolled full-time at the third and fourth year
academic level pursuing a major in mathematics,
science (including physical, life and computer
sciences) technology, engineering or critical foreign
language
Must maintain a 3.0 GPA for coursework required for
the major
The college certifies eligibility for the SMART grant
* FAFSA Required
16. Federal Work-Study
Need-based employment program for
undergraduate and graduate students
Provides jobs on- and off-campus
Students earn at least current minimum wage
Students are permitted to work a flexible
schedule
* FAFSA Required
** Program Application Required
17. Federal Loan Programs
Types
Federal Perkins Loan - 5% fixed ,9 month grace period
Federal Stafford Loans - 6.8% fixed, 6 month grace period
Federal PLUS Loan - 8.5% fixed, within 60 days after
disbursement
Consider
Subsidized vs. Unsubsidized
Interest rate
Grace period
Know
Borrowers Rights & Responsibilities
Loan Repayment
Deferment & Forbearance * FAFSA Required
Entrance & Exit Counseling ** Program Application Required
18. Saving for College
The earlier you start, the easier it will be to accomplish
your educational goal.
Do your research to make an informed decision
Project your costs
Determine what you can afford
Get started
NOTE: Use the interactive calculators on www.collegezone.com
19. 529 Plans
• 529 Prepaid tuition plans, such as College Illinois!,
allow you to prepay tuition at a locked-in price,
protecting you from future tuition inflation and the
uncertainty of the stock market.
• 529 College savings plans, such as Bright Start®,
allow you to save money for college. You earn money
over time through interest. Your savings, along with
the savings of others, are invested collectively on
your behalf. Earnings may fluctuate with the
performance of the market.
• Both types of 529 plans have federal and state tax
benefits that other types of investments do not have.
20. Institutional Aid & Private Sources
• College
Financial Aid Office
Web Site
Academic Department
• Private
Local, state and national agencies, associations and
organizations
Employers
• Trusted sources of information
ISAC – www.collegezone.com
Mapping Your Future – www.mapping-your-future.org
U.S. Department of Education – www.ed.gov
FAFSA on the Web – www.fafsa.ed.gov
21. How to Apply for Financial Aid
Don‟t underestimate your options.
Never assume you‟re too poor to attend
college or too rich to receive some type of
financial aid.
Don‟t become overwhelmed by the price of
attending college, it may not be what it seems.
22. How to Apply for Financial Aid
Submit All Forms Required by the College
FAFSA
Institutional Forms
Other
Note: Communicate with each
college to inquire about steps to
a „complete application‟.
23. How to Apply for Financial Aid
The Free Application for Federal Student Aid
Free Application for
Federal Student Aid
www.fafsa.ed.gov
The FAFSA information is used to
calculate the Expected Family
Contribution (EFC) and determine
the student‟s eligibility for most
federal and state assistance.
24. How to Apply for Financial Aid
Other Things to Know About the Process
Apply early.
Information reported on the FAFSA is confidential and
is used ONLY to determine financial aid eligibility.
You may be asked to submit documentation to the
financial aid office for verification purposes.
Supplemental applications or forms may be required.
Keep track of DEADLINES!!!
Keep a copy of everything you submit.
25. Meet the deadlines!
Check college deadlines
January 1, 2008
First date to submit FAFSA
No Later than August 15, 2008*
MAP Grant - Continuing Student Applicants
No Later than September 30, 2008*
MAP Grant - First Time Student Applicants
June 30, 2009
Federal Pell Grant
* Note: This date is subject to change and is based on funding by the
Illinois General Assembly. Deadlines are earlier if funds are depleted.
26. Dependency Status
INDEPENDENT students fit into at least one of
the categories listed below:
Born before January 1, 1985 (during the 2007-08 academic year)
Married
Graduate or professional student
Have legal dependents other than a spouse, for whom you
provide more that 50% of their support
Orphan or ward of the court (or were until age 18)
Veteran or currently serving on active duty for other than
training purposes
Note: If the student is DEPENDENT, report student and parent
income and assets on the FAFSA. Not living with parents does
not make the student independent.
27. Determining Financial Need
A need analysis formula determines the
student‟s Expected Family Contribution
(EFC).
The U.S. Department of Education calculates financial need
using a formula established by Congress called Federal
Methodology.
A comparative measure of how much a family can be
expected to contribute toward the cost of a student‟s
education for a year.
Used to determine a student‟s eligibility for most federal and
state assistance.
After completing the FAFSA, the EFC is shown on the
Student Aid Report (SAR) and Institutional Student
Information Record (ISIR).
28. What are the costs?
Tuition & Fees
Room & Board
Transportation
Books & Supplies
Miscellaneous Living Expenses
+
Cost of Attendance (COA)
31. Financial Aid Awards
The financial aid administrators at the colleges that you
are considering will „package‟ all available financial
aid options and send them to you for consideration.
What is the total cost of attendance?
What is the Expected Family Contribution?
What is your financial aid eligibility?
How is your financial need being met?
Was your financial need met?
What is the out-of-pocket cost?
32. Financial Aid Award
You too should have ‘Selection Criteria’
A few points to take into account before
you commit to a school:
Type of Institution
Available Financial Aid
Cost of Education vs. Earning Potential
Academic Program Ranking
Residential vs. Commuter
33. Other Financing Options
Payment Plan
Pre-Payment Discounts
PLUS Loan
Alternative Loans
Military Service
34. Steps for Students to Remember
1. Start planning for the future
2. Complete the application process
3. Receive, revise and edit the
Student Aid Report
4. Consider award letters
5. Respond to college offers
6. Advise school(s) of outside
scholarships
7. Renew the FAFSA every year!
35. Free tools on www.collegezone.com
Interactive Calculators Map of IL Colleges
IllinoisMentor
36. Avoid Scholarship Scams
While most scholarship services are legitimate,
others may be fraudulent and charge a lot of
money for little information.
Please view with caution any service that
requires you to pay more than a nominal fee.
Visit www.collegezone.com
to access reputable scholarship
search services.
37. Report Scholarship Scams
Better Business Bureau
High School Counselor
Financial Aid Office
Friends
39. Questions?
Illinois Student Assistance
Commission
(800) 899-ISAC (4722)
www.collegezone.com
collegezone@isac.org
U.S. Department of Education
(800) 4 FED AID
www.ed.gov
We’re here to help...
