3 of 29

What is Federal Aid

Grants (does not have to be repaid)

Pell Grants
Federal Supplemental Educational Opportunity Grants
TEACH Grants
Iraq and Afghanistan Service Grants

Federal Work Study (work to earn $)
Loans (money repaid with interest)

Subsidized Direct Loans
Unsubsidized Direct Loans
PLUS Loans

4 of 29

Grants

Federal Pell Grant

Need-based to low income undergraduates
Amounts prorate according to enrollment
Maximum amount for 18-19 is $6095

Federal Supplemental Educational Opportunity Grant

Need-based to students with exceptional need
Amounts determined by school
Maximum amount may not exceed $4000 a year

5 of 29

Grants continued

TEACH Grants

Up to $4000 a year for teaching degrees
Must sign agreement to serve in a high-need field, low-income families, at least 4 academic years within 8 years of grant
Will turn to Unsub loan if above incomplete
Check with school for eligibility

Iraq and Afghanistan Service Grants

Parent/guardian died in military service performed in Iraq/Afghanistan
Check with school for eligibility

6 of 29

Federal Work Study

Provides students who show financial need with a job while they are in school
Program administered by the financial aid office
Eligibility is determined using FAFSA
Students paid directly for their work
Money can be used for education expenses
Must apply for and receive job to receive funds

7 of 29

Loans

Federal Direct Subsidized Loans (Sub Loan)

Need-based
5.05% interest rate for 18-19
Interest does not accrue while in school at least 6 hours
Up to $3500 for first year students
Can only receive sub loan and subsidy for 150% of degree (ex. 2 year degree = 3 years of sub and subsidy eligibility)

8 of 29

Loans continued

Federal Direct Unsubsidized Loans (Unsub)

Not need-based
5.05% interest rate for 18-19
Interest accrues even while in school
Amount awarded depends upon dependency status and classification (i.e. freshman, soph)

Once a borrower leaves school or ceases to be enrolled at least ½ time, they will have a 6 month period where they do not have to make payments on these loans called a Grace Period.

9 of 29

Loans continued

PLUS Loans

7.60% fixed interest rate for 18-19
Available to parents with good credit
A loan taken out in parents name on students behalf

10 of 29

Private Loans

Available through banks, credit unions, or credit card companies. These loans usually have higher interest rates, prepayment penalties, shorter grace periods, and less repayment options.
When accepting a private loan, borrowers should make sure they know the terms and conditions of their loan!

11 of 29

How to apply for Federal Aid

Free Application for Federal Student Aid (FAFSA)
Apply yearly at fafsa.gov or use the FAFSA App (no DRT)
You (and possibly a parent) will need a FSA User ID and password
Apply for a FSA ID on FAFSA website (top menu/FAFSA: Apply for Aid/Filling Out the FAFSA Form/The FSA ID)
You can begin applying for the 19-20 FAFSA October 1, 2018
Be sure to use the IRS data retrieval tool (2017 tax year)
Know your colleges priority deadlines

12 of 29

Tax Year Information

For the 2018-2019 FAFSA you will use 2016 tax information (summer 2018)
For the 2019-2020 FAFSA you will use 2017 tax information (August 2019-Summer 2020)
We highly recommend using the IRS Data Retrieval Tool (DRT)to import your tax information from the IRS onto the FAFSA if you’re able
You can’t use DRT on mobile application!
If you’re not able to use the Data Retrieval, order a tax return transcript for 2017 from www.irs.gov
Always talk to your college Financial Aid Office if you have a significant change in your income

13 of 29

Problem Areas on the FAFSA

IRS Data Retrieval Tool (DRT) can be used, but information will only show as “transferred from the IRS” for security purposes on FAFSA and SAR
Dependency status – what makes a student NOT have to report parent information
Tax filing status – be sure you file your fed taxes correctly; student filing on their own not a reason for Independent status on FAFSA
Wrong SSN/DOB/name
Married status as of date FAFSA filed, so you may have to include spouses (or step-parent) income information even if you didn’t live together in the previous year
Who is a parent on the FAFSA (bio or adoptive)

14 of 29

Things to know

Your eligibility will be determined by the college you are attending.
You may be required to turn in documentation. You will generally not be awarded aid until you have turned in any required documentation and it has been processed. This can take several weeks.
Each school has deadlines in which you must have all information processed.
Know if you are fully admitted to your college (Admissions).
Read all mail/email sent to you by your college. If you don’t understand it, ASK!

15 of 29

Types of State Aid

Academic Challenge Scholarship (Lottery)
Governor’s Distinguished Scholarship
ArFuture Grant
Arkansas Workforce Challenge
Law Enforcement Officer’ Dependents Scholarship
Military Dependents Scholarship
Apply at scholarships.adhe.edu

16 of 29

Arkansas Academic Challenge

Begin applying Oct 1, 2018
Apply by July 1, 2019
Accepted for Admission at an approved institution
Accepted program of study (Bachelor, Associate, Qualified Certificate or Nursing School Diploma)
Completed FAFSA by July 1
Graduate high school
19 on ACT or equivalent (SAT, ASSET, COMPASS, ACCUPLACER – if one of these MUST physically send to ADHE)

General Eligibility Criteria

U.S. Citizen or Lawful Permanent Resident
Arkansas resident
Attend AR institution
Satisfactory academic standing
Meet continuing eligibility requirements

17 of 29

AR Challenge

Enrollment

12 hours fall immediately following high school
15 hours every semester thereafter

Continuing Eligibility

2.5 Cumulative GPA
27 hours 1^st year
30 hours other years
Complete remediation within first 30 hours

Award Amounts

4 year Institutions

$1000 freshman
$4000 sophomore
$4000 junior
$5000 senior
120 attempted hours

2 year Intuitions

$1000 first year
$3000 second year
5 semesters

18 of 29

AR Challenge Non-Traditional

Traditional means someone entering college directly from high school and receiving the scholarship (prior slides)
If you didn’t have the ACT score when you entered college from high school, you can be eligible for Challenge your second year of school with completed college hours and a 2.5 cumulative GPA on your college transcript
As a non-traditional recipient, you can be in a minimum of 6 hours and the award prorates

19 of 29

Governor’s Distinguished Scholarship

32 on ACT OR 1410 on a single SAT AND
3.5 high school GPA OR
National Achievement Finalist OR National Merit Finalist
Begin applying Oct 1, 2018
Apply by February 1, 2019
Up to 300 awards; up to $10,000 per year
Also looks at class rank and leadership
Enrollment/Continuing eligibility like Challenge but must have a 3.5 cumulative GPA
If county has no one eligible, will award a Governor’s Scholar for $5000 per year

20 of 29

ArFuture Grant

Must be enrolled in Science, Technology, Engineering, and Math (STEM) or regional high demand areas of study
Must have lived in state for 3 years immediately preceding application OR
Graduated from AR high school
Cannot already have an Associate degree or higher
Can be enrolled full-time or part-time
Covers tuition and fees for qualifying programs, but is the last source of payment
Deadline July 1 for Fall and January 10 for Spring

21 of 29

ArFuture Grant

If receiving this Grant, student’s must:

Meet with a mentor assigned by the college once a month
Complete 15 hours of community service per semester

Student will be required to enter a written agreement with ADHE to:

Reside in Arkansas for 3 consecutive years and be employed within 6 months after receiving an associate or certification
If student fails to meet all the terms, the grant will convert into a loan to the state of AR with an interest rate determined by ADHE

22 of 29

AR Workforce Challenge

Must be enrolled in Science, Technology, Engineering, and Math (STEM) or regional high demand areas of study
Graduated from an AR high school or GED program or lived in AR the last 3 years
Must apply 30 days prior to start of program
One time scholarship of $800 per program, but it is the last source of payment
Can include non-credit programs

23 of 29

Law Enforcement Officers’ Dependent Scholarship &�Military Dependents Scholarship�

For dependents and spouses of eligible AR employees/military who were killed or permanently disabled in line of duty.

24 of 29

AR National Guard Tuition Assistance

All current National Guard Soldiers who are AR residents, complete basic training, do not already have a Bachelor degree, enrolled in undergraduate program, and not currently flagged for serious misconduct with the Guard.
Apply at ARGuard.org/Education (on left side under Financial Aid – NGTA) and must complete FAFSA and State application (YouUniversal), and let college know you applied.
Apply 30-90 days before start of each semester.

25 of 29

Notes on Applying

Watch for email notification from ADHE (YouUniversal) that the application is complete; if you have been awarded, you need to accept the award
Use a no-nonsense email address on ALL educational applications (don’t use a high school email if it will be deactivated after graduation; use an email you can access)
Check email frequently for correspondence

26 of 29

Institutional Aid

Check with your college to apply for any available scholarships.
If you’re not sure where you want to go, apply for scholarships at numerous colleges.
Watch the deadlines!
Make sure you know the amount of hours you need to enroll in each semester (if multiple scholarships know all).
Make sure you know what you need to do to keep it (if multiple scholarships know all).
Most 4 year colleges offer transfer scholarships to students transferring from 2 year colleges.
APPLY FOR SCHOLARSHIPS NOW!!!

27 of 29

Private Aid

Check with college
Check with your high school counselor
Check with your/parents organizations
Look online (be careful! Especially if they ask for payment)

You will be responsible in most cases for letting your college know about this award or scholarship

28 of 29

Other Types of Aid

WIOA (Workforce Investment Opportunities Act) – through the Workforce Office in your county
Arkansas Rehabilitation – through the Workforce Office in your county
Career Pathways – check with your college; usually single parents in certain programs
Single Parent Scholarship – www.aspsf.org
Veteran’s benefits – for Veteran or eligible dependents – www.gibill.va.gov or 1-888-823-2378

1 of 29

2 of 29