Category Archives: Types of Financial Aid

What’s The Big Deal About The FAFSA?

The FAFSA (Free Application for Federal Student Aid) is the key you need to unlock money that will help you pay for college, vocational school or other education after high school. It’s simply a statement about a family’s financial situation, and it’s used to determine how much federal financial aid a student may be eligible to receive. You have an 85% chance of getting money for college just by completing this important form.

A new FAFSA is available October 1 each year. For high school seniors, this means yours will be ready for you to submit in October, almost a year before you begin college! You can submit your FAFSA even if you haven’t applied to any colleges yet. In fact, if you’re not sure which college you want to attend, you can request that your FAFSA information be shared with up to 10 different campuses that you may want to learn more about.

The current FAFSA is available online at fafsa.gov. If you’d like a sneak peek at the FAFSA, there are two options you may want to consider.
• The FAFSA4caster can give you a free early estimate of your eligibility for federal student aid. Visit fafsa.gov and scroll down to Early Aid Estimate.
The FAFSA on the Web (FOTW) Worksheet lists most of the questions from the FAFSA, giving you an idea of what information you’ll need to have with you when you begin to fill it out.

Please keep in mind that neither of these tools is a replacement for the real FAFSA. You’ll still need to complete the actual form online after October 1 in order to apply for financial aid.

During the 2018-2019 school year, $2.6B dollars in federal financial aid for college was left unclaimed by students who would have been qualified to receive the aid, simply because they didn’t submit a FAFSA. You’ll never know what you’re eligible for unless you submit the application.

Welcome Back to School

Back-to-school season is well underway! Before you let out a sigh of frustration because the summer flew by, decide how you’ll make this school year the best one yet. Will you be engaged in class? Will you intentionally make a new friend? Will you take on a new interest? The ball is in your court this month, so make a plan to seize the opportunities of a new school year.

To get you started on the right foot, think about joining a club or sports team. If you’re already involved in a certain activity, think about taking on a leadership role. You’ll gain communication skills and meet new people. You may also enjoy a school play or music recital. Attending different types of events like these could give you a greater appreciation for your school. Additionally, consider volunteering. Devoting some time to a cause that’s important to you is a good way to give back to your community, and you may discover a few interesting career options as you volunteer. Volunteer work can also be an asset when applying for scholarships.

Own your education this year. Challenge yourself to maintain good grades and if you’re struggling in a specific subject area, ask questions. Find resources that can help you understand difficult concepts. Conversely, if you’re excelling in a certain course that others may find tough, contemplate tutoring a few classmates. Doing this will show your concern for others and increase your own knowledge. Practice time management skills, as well. Make it a goal to turn in all assignments on time and keep the lines of communication open with your instructors. Let them know if you’ll miss a deadline.

Finally, prepare for what’s next. High school students can take FREE practice tests for the ACT and SAT to increase their scores. Free test prep material can be found at OKcollegestart.org. Seniors and college students who will need financial aid next year should complete and submit the FAFSA (Free Application for Federal Student Aid) as soon after Oct. 1 as possible. The FAFSA determines your eligibility for various types of financial aid – resources to help you cover college expenses. College students can start developing their resumes. Visit your campus Career Services department to learn about all available opportunities. And all students should apply for scholarships! Whether you’re a junior in high school or a sophomore in college, it’s never too early or too late to take advantage of these opportunities. You can find numerous scholarships at UCanGo2.org and OKcollegestart.org.

There are plenty of things to look forward to as you begin a new school year. So instead of dragging your feet on your first day of class, decide that you’ll make this school year the best yet! Welcome back and have a great year!

Grants, Loans & Work Study

By now you probably know that it’s important to submit the Free Application for Federal Student Aid, or FAFSA, but do you know what you’re actually submitting? This application allows colleges to see which types of financial aid you’re eligible to receive. Financial aid can help you cover educational expenses and comes in the form of grants, work-study and student loans.

Grants, sometimes referred to as gift aid, are need-based aid that usually don’t have to be repaid. The most common federal grant is the Pell Grant. This form of financial aid is available for undergraduate students (those who haven’t received their first bachelor’s degree). The maximum amount of Pell Grant a student can receive is $6,195 for the 2019-2020 school year. Financial aid offices will determine students’ financial need and inform them of their Pell eligibility. Another federal grant that’s available is the Federal Supplemental Educational Opportunity Grant, or FSEOG. Only students who have extreme financial need are eligible to receive this grant. Other grants require students to meet certain criteria. The TEACH (Teacher Education Assistance for College and Higher Education) Grant is an example of aid that has conditions attached to it, as it requires students to take certain courses and work specific jobs. There is also the Iraq and Afghanistan Service Grant that’s available for students who lost a parent or guardian as a result of military service in Iraq or Afghanistan after the events of 9/11. Eligible students should contact their school if they have any questions. Some states offer grants to their residents as well. Oklahoma has the Oklahoma Tuition Aid Grant, or OTAG, for eligible state residents who will be attending an Oklahoma public or private institution.

Work-study is also a type of financial aid that can help with the costs of college. Eligible students who receive this aid will have the chance to work a part-time job and earn money for educational expenses. Undergraduates and graduates with financial need are able to receive a work-study opportunity. Talk with your financial aid office to learn about potential places, on or off campus, that are hiring.

Student loans are another type of financial assistance. Different than other aid, student loans must be repaid with interest. There are various federal loans available for students. One type is the Direct Subsidized Loan for undergraduates who demonstrate financial need. The maximum amount for freshmen in the 2019-2020 school year is $5,500, with a fixed interest rate of 5.05 percent. A fixed interest rate means that the interest won’t change over time. The federal government will pay the interest on a subsidized loan while the student is enrolled in school at least half-time. In contrast, Direct Unsubsidized Loans are not based on financial need and are given to undergraduates and graduates. Students are responsible for the interest on this loan during all periods. The interest rate on an unsubsidized loan is 5.05 percent for undergraduates and 6.6 percent for graduate students. Other borrowed aid that isn’t based on financial need is the Parent PLUS Loan. This is available for parents of dependent students who need extra assistance with college expenses. In addition, parents must also be credit worthy to qualify for this type of aid. PLUS Loans have a 7.6 percent fixed interest rate. Speak with your financial aid office to learn more details.

There are a variety of resources available to help you pay for college. Not all schools offer each program, so be sure to contact your financial aid office with any questions. For more information about grants, student loans and work-study go to studentaid.ed.gov.

Summer Checklist for Incoming High School Seniors

You made it! School’s out for the summer. If you’re looking for something to do this summer, why not get a jump start on your senior year of high school? Here’s a preview of what to do as you finish up high school and prepare for college:

  • Stay on track. Review courses with your counselor to make sure you’re meeting high school graduation and entrance requirements for the schools that interest you.
  • Pick your top five. Oklahoma has 25 public colleges and universities as well as several independent and proprietary institutions. Take a few minutes to check out your options!
  • Search for scholarships. It’s never too early (or too late!) to apply for scholarships. Check out UCanGo2 and OKcollegestart to search thousands of scholarships!
  • Test again. Even if you’ve already taken the ACT or SAT, register for the fall ACT and/or SAT tests; you might boost your score! For extra help, try the free practice ACT and SAT tests on OKcollegestart.org. Find test locations and dates at ACT.org and SAT.org.
  • Create a Federal Student Aid ID. The 2020-21 FAFSA will be available on October 1, 2019. You and one of your parents will need an FSA ID to complete the FAFSA online. Be sure to keep track of these usernames and passwords. Creating FSA IDs now will save time this fall when you’re ready to file the FAFSA.
  • Prepare for college fairs. This College Fair Worksheet will help narrow down what types of schools you may be interested in attending. You’ll also find a list of questions to ask college representatives. College Fairs typically begin in September. Registration for fall fairs isn’t open yet, but you can create an account on GoToCollegeFairs.com now, allowing you to easily register when the time comes.

Check out UCanGo2’s full Senior Checklist for reminders and tasks that need to be completed during your senior year of high school.

Oklahoma’s Promise Deadline

The Oklahoma’s Promise scholarship program offers qualified Oklahoma students an opportunity to earn a scholarship for college tuition. To qualify for enrollment:

  • You must be an Oklahoma resident.
  • You must enroll for the scholarship in the 8th, 9th or 10th grade
    (at the age of 13, 14 or 15 for homeschool students.)
  • Your parent(s)’ federal adjusted gross income (AGI) must not exceed $55,000 per year.
    Special income provisions apply to legal guardians and certain adoptive parents.

High school students who have just completed 10th grade must apply for Oklahoma’s Promise before July 1, 2019 in order for their application to be considered. If students in the 8th or 9th grade miss the July 1 deadline, they’ll have the opportunity to use the 2019-2020 application this fall.

In the 2017-18 school year, 83% of Oklahoma’s Promise recipients were also eligible for federal Pell Grants, which is more ‘free money’ for college that doesn’t have to be repaid. Oklahoma’s Promise students must complete a Free Application for Federal Student Aid (FAFSA) in their senior year to verify their family income a second time and to determine their eligibility for the Pell Grant and the Oklahoma Tuition Aid Grant (OTAG). To learn more about Oklahoma’s Promise, federal financial aid and OTAG, visit:
OKPromise.org
StudentAid.ed.gov
OKcollegestart.org

Oklahoma 529 Savings Plan

May 29 is Oklahoma 529 Savings Day! The Oklahoma 529 College Savings Plan is a program that allows families to deposit funds into an interest earning savings account and use the funds to help pay for their child’s higher education expenses. It only takes a few minutes to set up an account online and users can choose from a variety of low-cost investment options. When adding to the account the funds can be electronically deposited or mailed in.

529 Savings Plan funds can be used at most accredited colleges and universities in the United States. Funds will typically cover tuition, fees, books, supplies, certain room and board expenses, and some technology equipment required for certain courses. If your student doesn’t need all the funds that go into the account, you can transfer the remaining savings to an eligible family member for their college expenses.

Saving for the future isn’t always easy, but being financially ready when your child goes to college will be well worth the investment. If you’re contemplating opening an Oklahoma 529 College Savings Plan, here are a few things to consider:
1. Contributions made to the 529 Plan grow as tax-free earnings in the account and can be deducted from your Oklahoma taxable income.
2. Regular contributions, even if they start as small amounts, add up over time. Consider making small automatic contributions or direct deposits into the account every pay period.
3. Don’t wait to start contributing to your account. Whether your child is in pre-school or high school, start saving for your higher education expenses today.
4. A 529 savings account can be a community effort. Parents, grandparents, uncles, aunts, and family friends can contribute to your child’s 529 Plan. Encourage family members to make a donation to the fund for children’s birthday and holiday gifts.

For complete information about the Oklahoma 529 College Savings Plan, visit OK4saving.org.

What’s the Difference Between a Scholarship and a Tuition Waiver?

When you fill out the Free Application for Federal Student Aid (FAFSA), you’re giving the college(s) of your choice a snapshot of your family’s current financial situation, enabling them to develop a plan for your financial aid ‘package’. That package may contain aid from one or more of these sources:
• The federal government – grants, work-study program, student loans
• The state of Oklahoma – grants and scholarships
• The institution you wish to attend – scholarships and tuition waivers
• Tribal, non-profit and private organizations – grants and scholarships

Your higher education institution may offer you a scholarship, tuition waiver, or both. You may wonder what the differences are between the two and whether you would qualify to receive them.
• A scholarship is usually ‘free money’ that doesn’t have to be paid back, and is used to pay various college expenses. It can be awarded to you by the school you plan to attend, by the state of Oklahoma, or by various private and tribal organizations. A scholarship is often awarded for above-average grades or other achievements, talents and/or community involvement.
• A tuition waiver is granted by your chosen school and reduces the amount the college charges you. The waiver will eliminate the cost of tuition for a designated number of credit hours, but it can’t be used for any other educational expense. While there can be many reasons a school might grant a waiver, here are some of the most common:
• Your family income demonstrates a high financial need.
• You’re of Native American descent.
• You’ve overcome a significant hardship.
• You were adopted, or you were a foster child.

It’s possible that you’d be able to use a scholarship and a tuition waiver simultaneously. Each college has its own policy regarding who meets the qualifications for one or the other. Call your institution’s financial aid office to see how to qualify for any scholarships and waivers they may offer.

Oklahoma’s Promise Day

Oklahoma’s Promise Day at the State Capitol is today, April 9! On Oklahoma’s Promise Day many students, faculty and supporters of Oklahoma’s Promise gather at the Capitol to show their appreciation for the Governor and legislature’s ongoing support of this program. The Oklahoma’s Promise scholarship pays tuition at Oklahoma public colleges or universities and pays a portion of tuition at Oklahoma’s private colleges and for certain programs at Oklahoma public technology centers. Approximately 17,000 college students are currently benefiting from the Oklahoma’s Promise scholarship, allowing more students to have a better chance of reaching their educational goals in our state.

If you’re an Oklahoma’s Promise student, you must complete a FAFSA (Free Application for Federal Student Aid) every year you’re in college. The information from the FAFSA will be used to determine whether or not your parent’s federal adjusted gross income (AGI) exceeds $100,000.  For any year that the income exceeds $100,000, you will not be eligible to receive the program benefits. Students must also remain in good academic standing based on the guidelines set by your institution. As the financial aid office reviews your FAFSA, they will determine your eligibility for financial aid such as  Oklahoma’s Promise,   grants, federal work-study and student loans. Submit your FAFSA as soon as possible after Oct. 1 each year and contact the financial aid office if you have questions about your Oklahoma’s Promise scholarship.  Also, take some time to celebrate today by thanking your state legislators and encouraging them to keep the promise!

To learn more about Oklahoma’s Promise and its requirements, visit okpromise.org.

We are OK Promise round logo

Finish the FAFSA this February!

The Free Application for Federal Student Aid (FAFSA) has been available since October 1, but that doesn’t mean it’s too late to apply! You can still apply to receive federal and state student aid in the form of grants, work-study and loans by submitting your FAFSA. Many students don’t apply at all and forgo FREE money for college! Below are some common reasons students miss out on financial aid.

Myth: If I’m not poor, very smart or super-talented, I won’t qualify for financial aid.

Reality: While it is true that the FAFSA is a need-based program, there are many factors other than income that go into the calculation. You never know if you qualify unless you apply. Plus, the FAFSA is used for more than just federal aid. Many universities and foundations require that you complete a FAFSA to be eligible for their scholarships.

 

Myth: I have several scholarships lined up, so I don’t need to submit a FAFSA.

Reality: College expenses include more than just tuition and fees – don’t forget about, books, room and board and transportation, among other potential costs. Submit your FAFSA to explore other funding possibilities in the event that your scholarships don’t cover all of your costs. You can always turn down aid that’s offered to you.

 

Myth: I’m going to pay my own way through college, so there’s no need to complete a FAFSA.

Reality: Paying your own way through college is a great plan, and completing the FAFSA could allow you to keep more of that money in your pocket. Applying for federal aid has become easier and can significantly reduce your financial burden. A few minutes of your time is definitely worth the potential for thousands of dollars in aid.

Complete your application for federal student aid today at FAFSA.gov!

Understanding Your Financial Aid Award Letter

Submitting your FAFSA to find out your eligibility for federal and state aid is definitely a huge step in the financial aid process, but it’s only the first step. After your FAFSA has been processed and you’ve visited with the financial aid office at your school(s) of interest, watch for an Award Letter from one or more of those institutions. The letter may be sent electronically or via the US Postal service. It’s important that you read each Award Letter carefully, for it describes the types and amounts of financial aid the college or career tech can offer to help you pay for one year of higher education.

On your award letter you will see:

  • The total Cost of Attendance (COA) – what it costs to go to that school for one year
  • Expected Family Contribution (EFC) – a number used by the school to determine how much financial aid you’re eligible to receive (most likely not the amount you’ll be expected to pay)
  • Types and amounts of aid the school can offer you; this list is often called a financial aid ‘package’.
    • Grants – gift aid that comes from federal, state and tribal governments, usually based on financial need
    • Scholarships – can be based on need, merit or your interests; awarded by colleges, state agencies, companies, foundations, tribal and private organizations
    • Federal work-study – there may be an opportunity for you to work on or off campus to earn some of your financial aid
    • Federal student loans – money that you borrow to help you pay for college; loans must be repaid, with interest
    • Federal PLUS loan – an undergraduate loan your parent(s) may qualify to borrow to help you pay for college, subject to credit history requirements; your parent(s) are expected to repay the loan

Now, do a simple calculation. Subtract all of the financial aid shown on your Award Letter from your Cost of Attendance. This will determine your estimated Net Cost. The Net Cost is the out-of-pocket amount you’ll be expected to pay. You may hear this referred to as unmet need, or ‘the gap’. It’s possible that your Net Cost could be zero if your financial aid package covers your whole Cost of Attendance (a negative amount would count as a zero).

What options are available to help you pay the Net Cost?

Remember:

  • You don’t have to accept all of the aid offered to you, especially when it comes to borrowing student loans. A monthly payment during college may be less expensive than a loan payment with added interest after you’ve completed your education.
  • Each award letter will give you a deadline to accept or decline some or all of the aid by a specified date. Always keep track of deadlines.
  • If you receive more than one Award Letter, be sure to determine what your Net Cost would be at each school. The schools will most likely have different packages to offer.