Financial Aid packages

Reading your financial aid package can be tricky. I've put together a bunch of information for you to help you understand the different types of money that will be offered to you on your financial aid award letters.

When it comes to college, there is such a thing as *FREE MONEY!* It's my favorite phrase at this time of year. Free money is money you are given by the state or federal government or school that goes toward your tuition but you do NOT have to pay it back! FREE MONEY!! The following is a list and description of the different types of free money available to you:

• Pell Grant
• Federal Government money with a maximum amount per year of $5,645. Pell is a need-based grant, which means that eligibility is based on federally determined EFC*. For example, for a full time student: EFC = $0 = $5,645 (max Pell Grant). 
• Tuition Assistance Program (TAP)
• New York state grant with a maximum per year of $5,000. TAP is a need-based grant for New York state residents only, attending a New York state school. Eligibility is based on NYS taxable income. This money is only applied to tuition.
• Federal Supplemental Educational Opportunity Grant (FSEOG)
• Federal Government money with a maximum per year of about $4,000. This grant is for low income students and eligibility is determined by each different college.
• Institutional Grants / Scholarships
• The maximum amount per year varies by each school. Can be based on need, merit, or special talent. Colleges use their own methodologies, different from federal or state formulas, to determined eligibility for grants from their endowments or budgets. Grants can range from $250 to total cost of attendance. 

*EFC = Estimated Family Contribution. This number is determined by the information inputted in your FAFSA

The following free money grants/scholarships are not as common:

• Educational Training Voucher (ETV)
• Federal government money with a maximum amount per year of $5,000. This voucher is only for students who are in foster care, were adopted from foster care after age 16 or aged out of foster care. Students apply for ETC only after deciding which college they will attend.
• TEACH Grant
• Federal government money with a maximum amount per year of $4,000. This is for students who intend to teach in a high needs subject area (math, science, special ed), at a high needs location (title 1 school). After graduating, student must teach for at least four academic years within eight calendar years. If student does not teach for required years, grant turns into unsubsidized Stafford loan.
• Outside Scholarships
• Can be funded by foundations, unions, corporations, etc. Thousands of organizations provide college scholarships. Each has own criteria, applications, and award amounts. May be renewable or for one year only.

The following is a list of loans available to students and families. Loans *must be repaid.* Your financial aid award letter will include loans as part of your package - don't let this confuse you. Loans are NOT the same as grants - they *must be repaid.* They are included in your financial aid package because the federal government allows students to take out a certain amount of money with a lower interest rate than a private bank would. More info:

• Stafford Student loan - Subsidized
• Federal government loan with a maximum borrowing amount of $3,500 for your first year of college (The max raises by $1,000 each year). This is a need-based loan, which means the amount of money you can borrow is determined by your family's financial situation. The interest rate for the 2013-14 school year is 6.8%. All loans start collecting interest once you take them out; subsidized loan means that the federal government pays the interest while you are enrolled in college. After graduation, you have a grace period of 6 months before you have to start paying back the loan cost plus interest.

• Stafford Student loan - Unsubsidized
• Same as the subsidized loan except for 2 major differences. First, the max amount of federal money you can borrow is $5,500 (Example: If you received the max for a Subsidized Stafford loan - $3,500 - you can receive no more than $2,000 for an Unsubsidized Stafford loan - totaling $5,500 in federal money. If you do not receive anything for a Subsidized Stafford loan, you can receive $5,500 for an Unsubsidized Stafford loan). Second, while both loans begin collecting interest right away, you will be responsible for the interest accumulated throughout your time in college. After your 6 month grace period following graduation, you will be paying the cost of your loan, the interest it gained over the last few years in college, and the interest it will continue to gain over time. 

• Perkins Loan
• Federal government loan with a maximum borrowing amount of $5,500. The amount received is determined on the basis of financial need. This loan has a 5% interest rate and is subsidized - the interest is paid while you are enrolled in college.  

• Parent PLUS
• This loan is only available for parents to take out. The amount can be up to the total Cost of Attendance. 

-Ms. Miller