���Financial Aid����

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What is Financial Aid?

Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses.

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Sources of Financial Aid

Federal Government

States

College and Universities

Private Sources

Employers

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How to Apply for Financial Assistance

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FSA ID

• An FSA ID gives you access to Federal Student Aid’s online systems and serve as your legal signature.
• Both the student AND a parent need to create one.
• Will be used throughout the aid process, including subsequent years.

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• http://studentaid.gov/

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Ways to file the FAFSA

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Free Application for Federal Student Aid (FAFSA)

• Filed starting October 1 of the year prior to enrolling

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• MUST be filled to receive federal aid
• Required for some state and institutional as well

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• A standard federal form that collects demographic and financial information about student and family

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• May be filed at any time during an academic year, but no earlier than the October 1^st prior to the academic year for which the student requests aid

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FAFSA Changes

• July 1, 2023
• 2023-2024 Academic year
• FAFSA opens October 1, 2022
• Reduced to 36 questions
• Replace EFC with Student Aid Index (SAI)
• Makes it easier for families to estimate SAI

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CSS Profile

• CollegeBoard Financial reporting
• Used to determine need for institutional aid
• Uses 2 years of financial data
• Includes private assets in EFC calculation
• Fee for initial application and one college report is $25. 
• Additional reports are $16.
• Used by approx. 400 colleges and scholarship programs
• Only 3 in MD

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How is all of this �information used?

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What is the Expected Family Contribution (EFC)?

• Calculated by formula in FAFSA

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• Stays the same regardless of college

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• Amount a family can reasonably be expected to contribute per academic year of education

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High Impact Information & EFC

• Tax Info
• AGI, Taxes, Earnings
• Current Financial Info
• Cash/Savings, Investments, Business/Farm income
• Number in Household
• Number in College
• Untaxed Income

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���How do schools use this data?����

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What is Cost of Attendance (COA)?

• Direct costs
• Tuition
• Fees
• Room
• Board

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• Indirect costs
• Books
• Transportation
• Personal Expenses
• Loan Fees

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Cost of Attendance

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What is Financial Need?

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Categories of Aid

Need-based aid

Non-need-based aid

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Types of Aid

Gift Aid

Self-Help Aid

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Main Sources of Aid

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Institutional Funding

• Scholarships
• Awarded for student achievement regardless of financial need
• Universities will have separate scholarship applications for the different colleges

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• Grants
• Need based funds offered to assist in covering CoA

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State Funding

• An only be used for MD schools
• Aid is awarded on the basis of both merit and need
• FAFSA is required for some
• Prior to March 1, 2022
• For MD funding check Maryland Higher Education Commission (MHEC) www.mhec.state.md.us
• Legislative Scholarships

www.mdelect.net

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Outside Scholarships

• Scholarship search engines
• Fastweb
• Scholarships.com
• Cappex
• Scholly
• Niche
• Scholarship Monkey
• Scholarships are everywhere

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Loan Types

• Stafford Loans
• Student Loans
• Subsidized
• Unsubsidized
• PLUS Loans (Parent)

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• Private Source Loans
• Banks
• Credit Unions
• Private Loan Servicer

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What else…

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Special Circumstances

• Conditions exist that cannot be documented with the FAFSA
• Send written explanation and documentation to your college’s financial aid office
• College will review and request additional information if necessary

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Secondary school tuition

Unusual uncovered medical/dental expenses

Parent or spouse death

Extraordinary dependent care

Loss of employment

Divorce

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Financial Aid Packages

• Early Decision/Action Applicants
• Regular Decision
• Financial Aid Packages included in admit packet

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• Should include (if eligible)
• Federal Grants
• State Grants
• Institutional Need Based Grants
• Institutional Scholarships
• Federal Loan options

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Tools You Can use

• Federal Student Aid
• https://studentaid.gov

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• FAFSA4Caster
• Help to get an idea of EFC/Need
• “College Cost Worksheet”

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• Net Price Calculators (NPC)
• Every Title IV school is required to have one

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Questions?���Contact Info:�www.smcm.edu/osfa�osfa@smcm.edu�

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FAQs

• Who is included in the case of parental divorce/separation?
• How are 529s accounted for?

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