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The �Financial Aid Process

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“Making college accessible and affordable for Illinois students.” – ISAC Mission Statement

The Illinois Student Assistance Commission (ISAC) is the college access and financial aid agency in the state of Illinois that administers scholarship, grant, prepaid tuition, and student loan repayment/forgiveness programs.

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Col•lege \kä-lij\

Noun: Any institution of higher education that awards a degree or credential post-high school graduation. This includes, but is not limited to, universities, community colleges, trade schools and more.

2 years

Vocational/Trade

2 years

Associate’s Degree

4 years

Bachelor’s Degree

Bachelor’s plus 1-3 years

Master’s Degree

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Slide Content Title

Content

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Planning for College

There are lots of things to think about and many questions you need to ask.

Can I afford college?
How much will it cost?
What is financial aid?
What is a FAFSA?
When and how do I apply?
Where can I get help?

Ask questions…

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How Much Does College Cost?

Tuition & Fees	Direct Expenses
+ Room & Board	Direct or Indirect Expenses
+ Transportation	Indirect Expenses
+ Books & Supplies
+ Miscellaneous Living Expenses
= Cost of Attendance (COA)

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What is Financial Aid?

It is borrowed, given, or earned money that can be obtained from various sources to help pay for college
Financial aid makes college affordable for you
It is intended to make up the difference between what your family can afford to pay and what college costs.

If you think you can’t afford college, think again.

There’s lots of aid out there.�

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Types of Financial Aid

There are many types of financial aid

Funds may be merit-based, need-based, or non need-based

Gift Aid

Grants

Scholarships

Self-Help Aid

Work-Study

Loans

There are two basic types of financial aid: gift-aid and self-help.

Gift Aid is usually awarded in the form of grants and scholarships. It is assistance that generally does not have to be repaid.

Grants are usually awarded on the basis of a student’s financial need or limited ability to meet the costs of college.

Scholarships may be awarded to reward merit such as academic achievement, athletic ability, artistic talent, background, or other attributes you may have.

Self-Help Aid requires you to take a bit more responsibility and includes work opportunities and loans

Work-study aid helps students pay for education costs such as books, supplies, and personal expenses. Federal work-study is a program that allows students to earn funds through part-time employment to help meet their financial needs and obtain work experience. All funds awarded must be earned and students are responsible for securing a job on campus.

Student loans are financial aid that must be repaid. Most loans sponsored by the federal government are awarded based on financial need and have a low interest. Most federal loans are the student’s responsibility. There are other student loans that are not sponsored by the federal government and usually have higher fees and/or interest rates. These may require a cosigner.

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Avoid Scholarship Scams

While most scholarship services are legitimate, some may be fraudulent and could charge a lot of money for little information
View with caution any service that requires you to pay

Report Scams
Better Business Bureau	High School Counselor	Financial Aid Office	Friends
Federal Trade Commission www.ftc.gov/scholarshipscams

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Sources of Financial Aid

Financial aid comes from a variety of sources

Federal Government

State Government

College

(Institutional Aid)

Outside/ Private Sources

Financial aid comes from a variety of sources.

Federal Government - Federal financial aid programs are administered by the U.S. Department of Education.

State Government - In Illinois, state and some federal financial aid is administered by the Illinois Student Assistance Commission (ISAC).

Colleges and Universities - Colleges, universities, and other higher education institutions also offer financial aid assistance to their students. The financial aid office on campus is the best place to inquire about institutional financial aid options.

Private Sources - Many agencies, associations, corporations, and civic, religious, and philanthropic groups award scholarships to college students. To access these private funds, different eligibility requirements, award amounts, application forms, and deadlines apply. Be sure to research them early and carefully.

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Sources of Financial Aid

The “Must-Get-to-Know” financial aid sources

U.S. Department of Education’s Office of Federal Student Aid

www.StudentAid.gov

Federal agency that provides college funding in the form of grant, scholarship, work-study, and educational loan programs.

Illinois Student Assistance Commission

www.ISAC.org

Agency in the state of Illinois that administers scholarship, grant, prepaid tuition, and student loan repayment/forgiveness programs.

.

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The Big Three

Maximum award amounts for 2017-18

Total = $14,789

MAP Grant Up to $4,869

Pell Grant Up to $5,920

FSEOG Grant Up to $4,000

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Illinois Student �Assistance Commission

Grant Programs	2017-2018 Award
Monetary Award Program (MAP)	Up to $4,869 (est.)
Illinois Veteran Grant (IVG)	Tuition & Mandatory Fees
Illinois National Guard Grant (ING)	Tuition & Mandatory Fees
Grant for Dependents of Police/Fire/Correctional Officers	Tuition & Mandatory Fees

Teaching Programs		2017-2018 Award
Minority Teachers of Illinois Scholarship (MTI)		Up to $5,000
Special Education Teacher Tuition Waiver (SETTW)		No annual minimum or maximum amounts

ISAC administers financial aid programs for residents of Illinois. Learn about them to decide which ones are best for you.

The Monetary Award Program is one of the largest state programs in the country. It provides assistance to students demonstrating financial need and applies toward tuition and mandatory fees for undergraduate students at approved Illinois degree-granting institutions. A FAFSA must be submitted for consideration. Subject to appropriation of funds so they are awarded on a first-come, first-serve basis.

The IVG Program is an entitlement program awarded to eligible applicants regardless of the funding level. It pays eligible tuition and mandatory fees at Illinois public colleges or community colleges. Qualified veterans may receive benefits at the undergraduate or graduate level for the equivalent of four academic years of full-time enrollment.

The ING Program is also an entitlement program awarded to eligible recipients regardless of the funding level. It pays tuition and eligible fees at all Illinois public universities or public community colleges for undergraduate or graduate enrollment. The program can be used to pay for undergrad and graduate education.

Grants for Dependent of Police, Fire and Correctional Officers - If a correctional officer employed by the Illinois Department of Corrections in a security position or an Illinois police or fire officer is killed or sustains injuries resulting in a permanent disability (at least 90%) in the line of duty, the officer’s spouse and children may receive grant assistance toward tuition and mandatory fees. It may be used for an equivalent of 8 semesters or 12 quarters of undergraduate or graduate enrollment.

The MTI Scholarship Program encourages academically talented minority students to pursue careers as teachers at nonprofit Illinois schools. It awards up to $5,000 per academic year for a maximum of 8 semesters or 12 quarters of assistance. Recipients must sign an agreement promising to start teaching within one year for each year of scholarship assistance received.

Illinois SETTW exempts recipients from the payment of tuition and mandatory fees for up to four calendar years at any one of the 12 public four-year colleges in Illinois. It encourages current teachers (not certified in a special education discipline) and academically talented students to pursue careers at nonprofit Illinois public, private or parochial preschool, elementary or secondary school teachers in any area of Special Education.

Note that if a teaching requirement is not fulfilled for a teaching program, the funds convert to a loan with a 5% interest rate.

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U.S. Department of Education

Campus-Based Program	2017-2018 Award
Federal Supplemental Education Opportunity Grant	$100-$4,000
Federal Work-Study	Colleges determine annual minimum or maximum amounts

Federal Grant Program	2017-2018 Award
Federal Pell Grant	up to $5,920
Iraq & Afghanistan Service Grant	up to $5,419
TEACH Grant	up to $3,728;

The U.S. Department of Education is the nation’s largest source of student aid.

The Pell Grant is available to undergraduate students and is the largest grant program administered at the federal level. It may be used for any educational expense, such as tuition and fees, room and board, and living expenses. Award amounts are dependent on funding approved by the Federal government and are calculated by the college.

The Iraq and Afghanistan Service Grant is available to t students whose parent or guardian was a member of the U.S. Armed Forces and died as a result of service performed in Iraq or Afghanistan after September 11, 2001.

Teacher Education Assistance for College and Higher Education (TEACH) grants reward undergraduates, post baccalaureate, and graduate level students who are or will be taking course work necessary to become elementary or secondary teacher; recipients must sign an Agreement to Serve saying they will teach full-time in designated teacher shortage areas for 4 years (within 8 years of completing an academic program).

Campus-Based Programs are administered directly by the financial aid office at each participating school. Not all schools participate in all three programs, so check with a school's financial aid office to find out which programs they participate in. Unlike the Federal Pell Grant Program, which provides funds to every eligible student, the campus-based programs provide a certain amount of funds for each participating school to administer each year. When the money for a program is gone, no more awards can be made from that program for that year.

The FSEOG gives priority to exceptionally needy students (in lowest EFC order) and Federal Pell Grant recipients. It is available to undergraduate students. The award amount is calculated on the basis of the student's need and availability of funds at the college. The college determines eligibility and students are notified via the financial aid award letter.

Lastly, is Federal-Work Study which we will talk about in more detail next.

Remember that to apply for state and federal financial aid programs, the FAFSA must be completed.

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Federal Work-Study

It is a need-based employment program

that provides on- and off-campus jobs to students.

A completed FAFSA is required

It is a campus-based financial aid program; funds are limited and available only at participating postsecondary institutions

Priority deadlines may apply

Compensation is at least the current federal minimum wage

A student must earn these funds

Federal Work-Study is a need-based financial aid program that allows eligible students to work part-time on- or off-campus. A Work-Study job is different from other jobs for the following two reasons: (1) the hours are flexible to ensure that students have enough time to study; and (2) when students apply for financial aid the following year, money earned through this program is not used to determine financial need.

[Insert personal FWS story/anecdote, if applicable. For example…”When I was in college I worked at….”]

To be considered for Federal Work-Study you must indicate your interest on the FAFSA. We encourage that all students select “Yes” (indicating they are interested) so that at least they are considered.

Note that funds for this program are limited, so it is important to complete the FAFSA as soon as possible.

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Loan Programs

When evaluating loan options, consider the following:

Source of Loan

Subsidized vs.

Unsubsidized

Interest Rate

Repayment Options & Grace Period

Be sure to research your loan options carefully. Make sure you are aware of these four things when exploring your loan options.

Source of the loan – What is the source of your loan? Is it a federal loan or a private loan, It is important to know where the loan is coming from. Let’s say for example that your loan has not been posted to your student account or you have questions, you need to know who you should contact.

Subsidized vs. Unsubsidized – We will talk more about the differences between subsidized and unsubsidized loans, but it is important that you are aware of the type(s) of loans you borrow. The terms and conditions for these may be different, so always know what loans you have.

Interest Rate – Know your interest rate. Interest rates can be variable or fixed and can vary depending on the type of loan. Knowing your interest rate will help you know how much money you will owe in the long run.

Repayment Options & Grace Period – These typically apply only to federal loans (not private loans). The federal government offers many different repayment plans that allow you to lower your monthly payments based on your income. There are also options that allow you to make smaller payments or stop your payments in the event of unforseen circumstances such as job loss, illness, disability, or other acceptable circumstances. The grace period, on the other hand, is a set amount of time given by the federal government before you are required to start making payments after you graduate or separate from your institution.

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Subsidized v. Unsubsidized

To understand the difference between the two, consider this: When will interest begin to accrue?

Direct Subsidized Loan

Need-based
Interest is paid by the federal government:

While a student is in school at least ½ time
During grace periods
During deferment

Direct Unsubsidized Loan

Not need-based
A student is always responsible for paying the interest

To understand the difference between Subsidized and Unsubsidized, consider this: When will interest start to accrue (or accumulate)?

Eligibility for Direct Subsidized Loans is based on financial need. The federal government pays the interest on your behalf while you are enrolled at least half time and during grace periods and authorized periods of deferment. For example, if you borrow $1,000 freshman year and you stay in school full-time for four years, when you graduate you will still only owe $1,000 because the federal government would have paid the interest on your behalf.

Eligibility for Direct Unsubsidized Loans is not based on financial need, and you are responsible for paying interest at all times. You may pay this interest while in school, or you can allow it to accrue and capitalize. If you allow it to accrue, the interest will be added to your principal balance to be paid off with the rest of your loan when you stop attending on at least a half-time basis. With this loan, on the other hand, if you borrow $1,000 freshman year, when you graduate from college, you will owe more than just the initial $1,000 because interest will have accrued on your loan.

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Federal Loan Programs 2017-18

Loan	Type	Interest Rate	Grace Period
Direct Subsidized (Undergraduate)	Need-based	4.45% Fixed	6 Months
Direct Unsubsidized (Undergraduate)	Not need-based	4.45% Fixed	6 Months
Direct Unsubsidized (Graduate)	Not need-based	6% Fixed	6 Months
Direct PLUS (Parent/Graduate)	Unsubsidized Credit-based	7% Fixed	Repayment Starts Within 60 days

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Maximum Direct Loan Amounts

Year	Dependent Students	Independent Students
1^st Year	$5,500 Max. $3,500 subsidized	$9,500 Max. $3,500 subsidized
2^nd Year	$6,500 Max. $4,500 subsidized	$10,500 Max. $4,500 subsidized
3^rd Year and Beyond	$7,500 Max. $5,500 subsidized	$12,500 Max. $5,500 subsidized
Graduate or Professional	Not Applicable	$20,500 (unsubsidized only)

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How to Apply for Financial Aid

To be considered for student aid, a student must complete all forms required by a college
Communicate with each college to find out what is required for a complete application

FAFSA

Institutional Forms

Other Forms

The first step in applying for federal and state financial aid programs is to complete the Free Application for Federal Student Aid (FAFSA). This application, which is available to complete online (preferred method), will use income, assets, and other factors to determine the amount that you and your family are expected to contribute to your college expenses.

Your eligibility for financial aid will be determined by your and your family’s financial situation, and by filing your application on time. In some instances, colleges may use additional forms. The form used most often in this process (typically private colleges) is the CSS/Financial Aid PROFILE, which is administered by the College Scholarship Service (CSS), a division of the College Board organization. Be sure to communicate with each college to inquire about the steps you need to take to ensure that you submit a complete application.

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Free Application �for Federal Student Aid (FAFSA)

The FAFSA is the first step in the financial aid process. It is used to apply for state and federal financial aid programs. In addition, some colleges use it to award institutional aid. The application is available at no cost.

You can complete the FAFSA on the Web at www.fafsa.gov. Filing your FAFSA electronically requires a Federal Student Aid Identification (FSA ID) that serves as an electronic signature, which can be obtained online at www.fsaid.ed.gov. Information reported on the FAFSA will be used to calculate your Expected Family Contribution (EFC) and financial aid eligibility. You must complete a FAFSA for every year you plan to be in college.

By the way, if you file the FAFSA on the Web, you can list as many as ten colleges. This means that you can designate up to ten schools to have information sent to them.

Remember that the first word in FAFSA is FREE, do not pay to fill out this form. If you need assistance in completing your FAFSA, you can contact me or an ISAC representative by visiting www.studentportal.org/ISACorps.

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2018-19 FAFSA

As soon as possible after October 1^st(First day to submit FAFSA)

WHEN

High school seniors and college students
U.S. citizens and eligible non-citizens

WHO

Available on-line at www.fafsa.gov

HOW

Determine eligibility for federal and state aid programs
Some institutions use it to award institutional aid

WHY

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Important Dates 2018-19

October 1, 2017�(first date to submit FAFSA)

FAFSA

Dates vary by college/university �(check with each college)

College

As soon as possible after October 1, 2017

MAP Grant

June 30, 2019�(end of the academic year)

Federal Pell Grant

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Information Needed for the FAFSA

What information is needed?

Social Security Number – Be sure it is correct!
Alien Registration Number – if not a U.S. citizen.
Records of income – 2016 Federal Income Tax Return (1040, 1040A, or 1040EZ), W-2s, other records of income earned from work, business, child support paid or received, and any other untaxed income.
Information about assets – Savings, certificates of deposit, stock options, bonds, 529 plans and other college savings programs, and investment real estate, business, and farms
An FSA ID to sign electronically

Note: A student must report parental information until the age of 24 unless they meet the criteria to file as an independent student as determined by the FAFSA.

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Income to be Reported on FAFSA

Which year’s income information needs to be reported?

Academic Year Student Will Be in College	Dates a Student Can Submit a FAFSA	Year of Income Information Required
2017-2018	October 1, 2016 – June 30, 2018	2015
2018-2019	October 1, 2017 – June 30, 2019	2016
2019-2020	October 1, 2018 – June 30, 2020	2017

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IRS Data Retrieval Tool

Transferring IRS tax information onto the FAFSA is faster and more accurate

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Federal Student Aid ID (FSA ID)

The FSA ID is your electronic signature for the FAFSA

Students and parents must each have their own FSA ID
You will need your FSA ID to renew the FAFSA every year
Parents who do not have a Social Security Number cannot obtain an FSA ID but can print a signature page instead

FSA ID Requirements

Username
Password

Uppercase letters

Lowercase letters
Numbers
Special Characters

Challenge questions

You will need to create an FSA ID to electronically sign the FAFSA and complete the application submission process.

Note that students and parents must have separate IDs. An email address can only be associated to one FSA ID so it is important that students and parents have an email address that will be used for a few years since you will use your FSA ID yearly and receive important financial aid information throughout the process.

Please choose challenge questions that are easy to remember in case you forget your ID and/or password. Write them down and keep them in a safe place if needed.

The FSA ID requires a Social Security Number; however, parents who do not have one can still sign the FAFSA using a signature page that must be printed, signed, and mailed to the Department of Education.

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Expected Family Contribution (EFC)

A need analysis formula established by Congress determines a student’s Expected Family Contribution using information reported on the FAFSA.

What?	Why?	Where?
The amount a family can be expected to contribute in one academic year	Used to determine a student’s eligibility for most federal and state aid programs	Shown on the Student Aid Report (SAR)

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Financial Need

How much aid can a student receive?

Financial

Need

Expected

Family

Contribution

(EFC)

Cost

of

Attendance

(COA)

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Three Examples

$10,000

College

A

College

B

College

C

COA	EFC	Financial Need

$20,000

$35,000

$3,000

$17,000

$32,000

$7,000

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Financial Aid Awards

The financial aid administrator at the college will package all available aid and send an award offer for consideration.
Use ISAC’s Financial Aid Comparison Worksheet at: studentportal.isac.org/finaid to make an informed decision.

What is the total cost of attendance?	What is the Expected �Family Contribution?
What is a student’s financial aid eligibility?	What types of financial �aid are included?
Was financial need met?	What is the out-of-pocket cost?

After you complete the financial aid application process, the financial aid administrators at each college that you are considering will “package” all available aid options and send an award offer for consideration. Because each college has its own packaging policy, the types of financial aid offered to you will probably vary from college to college. The financial aid offer may include a combination of financial aid programs from various sources, such as grants, scholarships, work-study, and student loans. As you review the award offers, consider the cost of attendance, the EFC, your financial aid eligibility, the types of financial aid programs offered, and your anticipated out-of-pocket cost.

Ideally, you want to look for award letters that include more gift aid because this is money you typically won’t have to repay.

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Other Things to Know

Complete the FAFSA as soon as possible after October 1
Information reported on the FAFSA is confidential and only used 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 application DEADLINES!
Keep a copy of everything you submit
You must reapply every year

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The Financial Aid Process

Complete the FAFSA

Receive and review the Student Aid Report

Complete verification process (if selected)

Receive and review

award offers

Respond

to colleges/universities

Complete all pending processes

Renew FAFSA

every year

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ISAC Student Portal

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Trusted Websites

Learn what you need to know and stay up-to-date with accurate and trusted sources of information

Studentportal.isac.org

StudentAid.gov

FAFSA.gov

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ISAC College Q & A

Questions about financial aid?
Questions about getting to college?
Text with our experts!

Pick the area code closest to you and text us your name.

(217) 207-3265	(309) 306-7066
(618) 223-6450	(630) 216-4910
(708) 252-3890	(773) 453-9520
(815) 242-4630	(847) 243-6470

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Find Answers to Your Questions

Illinois Student Assistance Commission

800-899-ISAC (4722)

ISAC.org

isac.studentservices@isac.illinois.gov

U.S. Department of Education

800-4-FED-AID (800-433-3243)

StudentAid.gov

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Questions?

Thank you!

ISAC_FAP_English 08-30-17