A guide to student financial aid in Georgia 1998-99 school year [1998]

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1998-99 school year
ZELL MILLER, GOVERNOR

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Georgia Student Finance Commission
administering Georgia's Financial Aid Programs

If you are planning for education beyond high school, you should do a little research first. Find out how much it will cost to go to school, what part of that cost you and your family will be expected to pay, and what types of financial aid are available. Use the following outline to get started.
How much does it cost to attend a college or technical institute?
Educational costs can differ significantly from one school to another, depending on the type of school you select and your program of study. In general, costs are lowest at a public technical institute, higher at a community/junior college, still higher at a public four-year college, and highest at a private university.
The total cost of attending college today may range from about $4,500 per year to more than $20,000 per year. Financial aid programs have been developed to help you pay for these costs. Schools with higher costs often have more financial aid available than less expensive schools. Compare the cost and available financial aid at different schools.
But remember, selecting a school should be based not only on educational costs. Consider your career goals and educational needs in making your decision.
What do educational costs include?
The total educational costs of attending a college include: (I) tuition and fees; (2) books and supplies; (3) room; (4) board (meals); (5) transportation; and (6) personal expenses such as clothes, laundry, recreation, and medicine.
What is the family's share?
The primary responsibility for financing an education rests with the student and his or her family. The family is expected to make a maximum effort to assist the student with college expenses. Financial assistance should be viewed as supplementary to the efforts of the family.
The student also has a responsibility to contribute to his or her college expenses from sources that may include savings, summer earnings, monetary gifts from friends and relatives, or other sources. Students receiving aid are expected to use part of their summer earnings toward defraying college costs.
Who determines how much my family is expected to pay toward educational costs?
Schools, government agencies, and organizations that award financial aid determine how much a family is expected to pay toward attendance costs, using a process called need analysis.
In order to estimate your expected family contribution, you and your parents should complete the Free Application for

Federal Student Aid. This form asks for information about the income, expenses, and assets you and your family have. (Check with the college financial aid office to see if a supplemental need analysis form is also required.)

How is the family contribution determined?
The expected family contribution is based primarily on your family's income and assets. However, certain allowances are considered and subtracted from total income and assets. These allowances include amounts for a standard cost of living, for future retirement needs, and for future indebtedness.
Additionally, part of your own assets and income from: part-time or summer work is considered available for school expenses. Your contribution is added to that of your parents to obtain the expected family contribution.

What is financial aid?

Financial aid is money awarded to a student to help pay educational costs. Most financial aid is awarded according to individual need and educational costs. The federal government, the state government, and postsecondary schools provide financial aid to eligible students in the form of grants/scholarships, loans and employment.

A grant/scholarship is money awarded as financial aid

that requires no repayment. A loan is money borrowed

from a commercial lender, a governmental agency, or a

post-secondary school that must be repaid ... the

amount borrowed plus interest. Student employment can

be a job that the school has found for you on or off

campus or work that you have obtained on your own

initiative.

.

Additionally, you should investigate private aid sources such as civic groups, clubs, religious organizations, and businesses that may offer scholarships and loans.

On what basis is financial aid awarded?
Most financial aid is awarded on the basis of financial need. Total educational costs minus the expected family contribution equals need. Financial aid programs based on financial need are generally referred to as need-based programs. Awards based on other factors such as achievement in academics, sports, or music are called non-need-based programs.

How much financial aid can I receive, and when should I apply?
The total financial aid awarded to a student cannot exceed educational costs. Because of limited funds and eligibility requirements, a student's total financial need cannot always be met. For the best chance at receiving aid, apply as quickly as possible after January 1. Please see the "Financial Aid Application Checklist" on the back page of this Guide for the steps to follow.

Loan Progralns

The federal government administers two categories of loan programs to help students and parents pay for the cost of postsecondary education. Known collectively as the Federal Family Education Loan Program and the Federal Direct Student Loan Program, these programs allow students and parents to borrow money through Federal Stafford and PLUS loans.
The difference between the two loan programs is which institutions make the loans. The eligibility requirements, loan amounts, and repayment obligations remain the same. Under the Federal Family Education Loan Program, the Federal Stafford and PLUS loans are made by banks, savings and loan associations, and credit unions. These loans are guaranteed by the Georgia Higher Education Assistance Corporation. Under the Federal Direct Student Loan Program, the federal government will make the Federal Stafford and PLUS loans to students and parents.
For additional information, contact your college or the Georgia Student Finance Commission.

What is a Federal Stafford Loan?
The Federal Stafford Loan Program allows students to borrow money at a low interest rate for educational expenses. There are two types of Federal Stafford loans.
The first, the subsidized Federal Stafford loan, is based on need. If your expected family contribution is less than your educational costs, you may receive a Federal Stafford loan based on your need. The interest on the loan is subsidized, which means that the federal government will pay the interest for you while you are in school, during your grace period after you leave school or graduate, and during deferment periods.
The second type of Federal Stafford loan is unsubsidized. The amount you are eligible to receive is not based on your financial need. However, you will be responsible for paying the interest on your loan from the date the money is disbursed to you.

How much can I borrow?
The amount you may borrow is determined by the college's financial aid officer. The maximum Federal Stafford loan amounts are shown below.

Maximum Loan Amounts

Undergraduate Level- Annual Amount

Subsidized Unsubsidized

Rrst Year Second Year Third Year & Beyond

$2,625 3,500 5,500

$4,000 4,000 5,000

Undergraduate Aggregate: $23,000

GraduatelProfessional- Annual Amount

Subsidized Unsubsidized

All Levels

$8,500

$10,000

Undergraduate/Graduate Aggregate: $138,500

Loan amounts will be prorated for students enrolled in programs of less than one year in length.

How do I repay my Federal Stafford loan?

Repayment must begin no later than six months following graduation or termination of at least half-time study. You must make arrangements with your lender to make payments, including interest. The interest rate is variable with a maximum of 8.25%, adjusted annually over the life of the loan. The minimum payment is approximately $50 a month, but your actual payment may be higher. You must repay your loan within a ten-year period. Ask your lender for additional information on repayment terms and conditions.

What is a Federal PLUS Loan?

The Federal PLUS Loan Program provides loans to the

parents (or legal guardians) of dependent students.

Financial need is not an eligibility requirement, but good

credit is required. Most schools require students to apply

for a Federal Stafford loan before the parents apply for a

PLUS loan.

.

Note: A dependent student may apply for an unsubsidized Federal Stafford loan if his or her parents are unable to get a Federal PLUS loan because of their credit history.

How much can my parents borrow?
Your parents' maximum Federal PLUS loan can be an amount equal to your educational costs minus other aid. There is no aggregate limit.

How do I repay my Federal PLUS loan?
The Federal PLUS loan has a variable interest rate (9% maximum) that is adjusted annually over the life of the loan. Your parents must begin repayment 60 days after the loan is disbursed. Ask your lender for additional information on repayment terms and conditions.

For Stafford or PLUS loan applications, call the Georgia Student Finance Commission at (770) 414-3000 or (912) 757-3626 (Toll free: 1-800-776-6878). Write to us at 2082 East Exchange Place, Suite 230, Tucker, Georgia 30084, and ask about "Georgia Advantage"
loans from the Georgia Student Finance Authority.

Program
HOPE - Helping Outstanding Pupils Educationally
2 3 4

Objective

UnderGraduate/ Graduate

To provide scholarships and grants to recent high

U

school graduates and non-traditional students

attending public and approved private institutions in

Georgia.

Georgia Residency Requirement
Yes

Application Pr
Contact the school'~ office for the approp

5

6 7

8

9

10

11 Law Enforcement Personnel

To assist children of a law enforcement officer, fire

U

Dependents Grant (LEPD)

fighter, or prison guard in Georgia who has been

permanently disabled or killed in the line of duty.

12 Georgia Public Safety Memorial Grant

To assist children of Georgia public safety officers

U

who have been permanently disabled or killed in

the line of duty.

Yes

Complete the GeorgiE

Memorial Grant/LEP[

Application.

Yes

Complete the GeorgiE

Memorial Grant/LEPC

Application.

*ALL NEED-BASED FINANCIAL AID PROGRAMS ARE DESCRIBED IN THE SHADED AREAS OF THIS CHART.
NOTES: 1 Contact the financial aid office at the college, university, or technical institute you plan to attend to see if a supplemental need analysis form is requir 2 For additional information, contact the Georgia Student Finance Commission at (770) 414-3000 or (912) 757-3626 (Toll free: 1-800-776-6878). 3 If you need help finding a lender for a Federal Stafford or PLUS Loan, please contact the Georgia Student Finance Commission at (770) 414-3000 0

Prograills

ialaid ,plication.

Academic Year Maximums2
Varies

Institution Restrictions
Eligible postsecondary institutions in Georgia

Need~
Based
No

Comments2
Contact your high school guidance counselor, college financial aid administrator, or the HOPE Scholarship Program in Metro Atlanta at (770) 414-3085 or toll-free in Georgia at 1-800-546-HOPE. Funded by the Georgia Lottery for Education.

Safety Safety

$2,000 Varies

Eligible postsecondary schools
in Georgia
Public postsecondary schools
in Georgia

No

Recipients may receive up to $8,000 for four years of under-

graduate study.

No

Award covers the cost of attendance minus any other aid

received. Funded'by the Georgia Lottery for. Education.

)~776-6878.

FOR SCHOLARSHIP INFORMATION, contact your high school counselor, colleges, community and civic organizations, and private corporations. You may also contact the Georgia Student Finance Commission to request a copy of our guide to scholarship information and sources, which includes suggestions for further research into the opportunities available. Visit our web site at www.gsfc.org for the most recent updates on financial aid.

Did you know that you may be able to repay your college loans by working after you graduate? In addition to standard Stafford loans, the Georgia Student Finance Authority (GSFA) offers the Service-Cancelable Stafford Loan, a Federal Stafford loan with a service cancelation option for students enrolled in a "critical field of study." These fields of study lead to employment in occupations in which Georgia does not have enough trained professionals.
This loan has the same eligibility requirements, set by federal regulations, as all other Federal Stafford loans. Additionally, you must meet the GSFA requirements for residency, program of study, grade point average, etc.
The loan may be subsidized or unsubsidized. If you receive a subsidized Stafford loan, the federal government pays the interest on the loan for you while you are in school and during the grace period after you graduate. If your Stafford loan is unsubsidized, you are responsible for all accrued interest.
How is the loan repaid?
After graduation, you may cancel your loan by working in your field of study. For each calendar year of full-time qualifying service, you may cancel one academic year of loan assistance. One-half credit will be given for half-time employment in your field. No credit will be given for less than half-time employment or for service while you are enrolled in school and are receiving a loan with service cancelation benefits.
If you are unable to repay your loan through the service cancelation option, the loan must be repaid in cash.

The minimum monthly payment of $50 begins after your grace period has expired.

What critical fields of study are approved for service-cancelable Stafford loans?

To be eligible for a service-cancelable Stafford loan, you must be accepted for admission or enrolled in an approved program of study. Students enrolled in "pre-field" programs such as pre-pharmacy and pre-dentistry are not eligible for service-cancelable loans. The approved critical fields of study are listed below. Some fields are approved for graduate level or upper-level undergraduate studies only.

Approved Fields

Anesthesia Technology Dental Hygiene

Nursing - Master's* Nursing - Registered*

Dentistry - General Dietetics Gerontology

Occupational Therapy Optometry Pharmacy*

Health Information Technology
Laboratory Technology

Physical Therapy Physician Assistant* Radiologic Technology

Medical Technology

Respiratory Therapy*

Nurse Anesthesia Nursing - Licensed Practical*

Veterinary Medicine*

* Subject to funding availability.

How do I apply for a service-cancelable Stafford loan?
To apply for a service-cancelable Stafford loan, contact the financial aid office at the school you plan to attend.

Fillancial id pplication

o If the college's application materials did not include a financial aid application, contact the college's financial aid office

and ask for an application. Complete the application and return it to the financial aid office promptly.

o Investigate private aid sources such as civic groups, clubs, religious organizations, and businesses.

o Complete the Free Application for Federal Student Aid (FAFSA) as soon as possible after January 1. After four

to six weeks you will receive the Student Aid Report (SAR). The SAR has several parts; review all of them for accuracy.

Follow the instructions to make any corrections. Then, if the school(s) to which you are applying require you to submit

the SAR, sign the appropriate section and send it to the college's financial aid administrator. Please note: the college

may require that acopy of the student's and/or parent's federal income tax form 1040, 1040A, or 1040EZ be sent

along with the SAR. Students who received financial aid during the previous academic year may complete the Renewal

FAFSA that will be mailed to them.
o If required by your college's financial aid office, complete a supplemental form, such as the PROFILE form. Contact

your high school counselor for more details.

.

o If the college's financial aid office has determined that you will need a loan, contact the financial aid administrator about

the application procedures for the Federal Stafford loans as well as the Federal PLUS loan. Check with the Georgia

Student Finance Authority on the benefits of financing your education with "Georgia Advantage" loans.

o Contact the college's financial aid office to see if there are additional application procedures you must complete.