Introduction to Financial Aid

January 23, 2025

What is Financial Aid?

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Financial Aid is a broad group of funding sources that assists students in meeting the cost of attending college and can include grants, scholarships, the work-study program, and student loans.

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Types of Financial Aid

Federal Aid

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• Grants (free money)
• Federal Pell Grant
• Supplemental Educational Opportunity Grant (SEOG)
• TEACH Grant

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• Federal Work-Study
• Part-time employment opportunities for students with financial need. Funds earned are paid directly to the student for educational expenses.

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State Aid

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The Ohio Department of Higher Education

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• Ohio War Orphans Scholarship
• Ohio Safety Officers College Memorial Fund
• Ohio College Opportunity Grant

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www.ohiohighered.org

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Scholarships

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• Universities and Colleges

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• High school counselors

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• Private foundations, businesses, charitable organizations

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• Civic organizations, employers, credit unions

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• Scholarship sites

- www.fastweb.com

- www.scholarships.com

- www.collegenowgc.org

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Federal Direct Student Loans

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Subsidized Direct Loan

• Interest free during periods of at least half-time enrollment

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• Six-month grace period before repayment begins

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• Current interest rate when repayment begins is 6.53%

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• Student is the borrower and begins repaying after graduating or leaving college.

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Unsubsidized Direct Loan

• Accrues interest during periods of enrollment

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• Six-month grace period before repayment begins

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• Current interest rate is 6.53% and begins immediately

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• Student is the borrower and begins repaying after graduating or leaving college.

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Parent Loans

Parent Loan for Undergraduate Students (PLUS)

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• Parent is the borrower—not the student

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• Current Interest rate is 9.08%

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• Interest begins accruing as funds are disbursed

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• May choose to defer payments while student is in school

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• May have remaining funds (after school charges are paid) sent to the student for other educational expenses (books, supplies, transportation, etc.)

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• Credit-based, may use an endorser if initially denied

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• If parent is ineligible, student will have additional eligibility from the Unsubsidized Direct Loan

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How Do I Apply for Financial Aid?

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The Free Application for Federal Student Aid (FAFSA) at www.studentaid.gov

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This application is used for federal and state grants, federal work-study, federal student and parent loans.

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Available Now December 1

Important FAFSA Notes

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• Tax information will be loaded directly from your federal income tax return from 2023.

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• All contributors will be required to give consent for their tax information to be imported into the FAFSA.

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• Students can list up to 20 school choices to receive their FAFSA results.

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• Students whose parents are divorced, will report the income for the parent (and stepparent if remarried) who provided the majority financial support, NOT the parent that they lived with for the past twelve months unless that parent provided the majority financial support.

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Student Aid Index (SAI)

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• The Student Aid Index (SAI) is determined by the FAFSA

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• The federal methodology is applied to information reported on the FAFSA to determine this index number.

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• The SAI determines grant eligibility and financial need.

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• Financial Need is:

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Cost of Attendance

– SAI

– Other Financial Assistance (OFA)

= Financial Need

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• Financial need is used to determine student loan eligibility, parent loans, federal work study, and some scholarships.

Everyone Needs an FSA ID!

• This will serve as your legal signature on federal financial aid documents and the FAFSA.

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• Go to www.studentaid.gov.

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• Click on Create Account and review the information about what you can do with your account and what you need.

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• Click on Get Started and create your account.

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• You will need a permanent email, mobile-phone number, and social security number.

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• Create your FSA ID NOW, don’t wait.

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Application Process

Complete the FAFSA

Government Processes Application

School receives FAFSA results

School requests any additional documents needed

You submit documents

School determines awards

Financial Aid Offer!

Start

Financial Aid Offer

• Schools will likely begin sending financial aid offer letters in approximately March.

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• Will arrive either by U.S. Mail to the student’s home or email to the student’s college or university assigned email address.

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• Award notifications are sent to students, not parents.

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• Offer will include estimated costs and all types of financial aid being offered to the student for the year (at that time).

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Sample Costs

Private Four-Year University

Tuition and Fees $38,832

Room and Board $13,774

Total $52,606

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Public Four-Year University

Tuition and Fees $13,346

Room and Board $11,904

Total $25,250

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Community College

Tuition and Fees $7,916

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What if I don’t receive enough aid?

• Payment Plans
• 529 College Savings Plans
• Private Educational Loans
• Employment
• Appeal for a special circumstance such as a loss of income or job.

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REMINDERS

• Don’t pay to file the FAFSA or for scholarship info!

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• Read everything sent to you by the financial aid office.

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• Turn in requested documents in a timely manner.

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• Finalize everything by JUNE

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• Call the financial aid office if you have any questions.

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FAFSA HELP

�Saturday, January 11, 2025

12 p.m. to 4 p.m.

Simmons Hall, Room 204

Office of Student Financial Aid

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RSVP at our website uakron.edu/finaid

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