A guide to student financial aid in Georgia for the 2003-2004 school year [2003]

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A Guide to Student Financial
Aid in Georgia
for the 2003-2004 school year
What you need to know about money for college and how to apply for it.
1tEORGI AStudent rinance Commission
Administering Georgia's -I-IOPE Scholarship Program www.gsfc.org

Meeting Educational Costs

If you are planning for education beyond high school, you should do a little research fi rst. Find out how much it will cost to go to school, what part of that cost you and your fam ily will be expected to pay, and what types of fi nancial aid are available. Use the fo llowing 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 college, higher at a two-year community/ junior college, sti ll higher at a public four-year college or university, and highest at a private college or university.
The total cost of attending college today may range from about $4,500 per year to more than $30,000 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 fin ancial aid at different sc hoo ls .
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) tu ition and fees; (2) books and supplies ; (3) housing ; (4) board (meals); (5) transportation; and (6) personal expenses such as clothes, laundry, recreation, and medicine and health care.
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 contri bute 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 fi nancial aid determine how much a fam ily is expected to pay toward attendance costs, using a process called need analysis.
In order to estimate you r expected fam ily 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 you r fam ily have. (Check with the college financial aid offi ce to see if a supplemental need analysis form is also required .)
How is the family contribution determined?
The expected fami ly 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, the number of household members, future retirement needs, and other factors.
Additionally, part of your own assets and income from part-time or summer work is considered available for school expenses. You r 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 fin ancial 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 in iti at ive.
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 fin ancial need . Total educational costs minus the expected family contri bution 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 prog rams.
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 fun ds and eligibility req uirements , 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 fo llow.

- , Georgia Student Finance Commission Programs

State and Federal

Program
- , Georgia's HOPE Scholarsh ip Program
-, Governor's Scholarship
Federal Pell Grant
- , Leveraging Educational Assistance Partnership (LEAP) Grant Federal Supplemental Educational Opportunity Grant (SEOG)

Objective
To provide scholarships and grants to recent high school graduates and nontraditional students attending public and eligible private institutions in Georgia.
To assist students selected as Georg ia Scholars, STAR Students, valedictorians, and salutatorians.
To provide non-repayable funds to students for educati onal expenses .
To provide non-repayable funds to students for educational expenses.

Under-

Georgia

Graduate/ Residency

Graduate Requirement

u

Yes

Application Procedures
Contact the school's financial aid office for the appropri ate applicati on.

u

Yes

Contact your hig h school counselo r.

u

No

Complete th e Free App licati on fo r

Federal Student Aid.

u

Yes

Complete the Free Application for

Federal Student Aid.

To provide non-repayable funds to students fo r educational expenses.

u

No

Complete the Free Application for

Federal Student Aid.

Federal College Work-Study

To provide jobs for stud en ts who must

U/G

Program

earn part of their educational expenses.

No

Complete the Free App licati on for

Federal Student Aid.

Federal Perkin s Loan

To provide low-interest repayab le funds

U/G

to students for educational expenses .

No

Complete the Free Applicati on for

Federal Student Aid.

- , Federal Stafford Loan:

To provide low-interest repayab le funds

U/G

A Federal Fami ly Education

to studen ts for ed ucation al expenses.

Loan Program (FFELP)

No

Complete the Free Application for

Federal Student Aid and th e Federal

Stafford Master Promissory Note (MPN).

, Federal PLUS Loan :

To provide repayable fu nds to parents of

N/A

A Federal Family Education

dependent undergraduate students.

Loan Program (FFELP)

No

Complete th e Free Appl icati on for

Federal Student Aid and the Federal

PLUS Loan Application .

Federal Direct Loans: Stafford To provide low-interest repayable funds

U/G

Loan and PLUS Loan

to students and parents for educati onal

expenses.

, PROM ISE Teacher

To assist undergraduate and graduate

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Scholarships and HOPE

students majoring in education.

Teacher Scholarships

Graduate level students must concen-

G

trate in a critical shortage teaching field.

- , Georg ia Tuition Equalization

To provide non-repayable funds to

u

Grant (GTEG)

Georgia residents attending eligible

private institutions in Georgia.

- , Scholarship for Engineering

To provide service-cancelable loans to

u

Education (SEE)

engineering students .

No

Complete th e Free Appl ication for

Federal Stud ent Aid.

No

Complete either th e PROMISE

(undergraduate) or HOPE (graduate)

Yes

Teacher Scholarsh ip App lication.

Yes

Complete the Georgia Tuition

Equalization Grant App lication .

Yes

Complete the Scholarship for

Engineering Educati on (SEE)

Appl ication.

- , Georgia Service-Cancelab le

To assist students enrolled in critical

U/G

Yes

Complete the Free Application for

Loans

fields of study (e.g., Nursing, Physical

Federal Student Aid and the Federal

Therapy, Pharmacy, etc .).

Stafford Master Promissory Note (MPN).

Regents Opportunity Grant

To assist graduate and professional

G

students who need fin ancial assistance.

- , Georgia National Guard

To assist Georgi a National Guard

u

Service-Cance lable

members pursuing higher education .

Educational Loan

- , Georg ia Military Scholarships To assist Georgia students seeking a

u

military career at Georgia Military

College or North Georg ia College &

State University.

-, North Georgia College &

To assist students enrolled in the Army

u

State University ROTC Grant

ROTC program at North Georg ia College

& State University.

-, Law Enforcement Personnel

To assist ch ildren of Georgia law enforce-

u

Dependents Grant (LEPO)

ment officers, fi re fighters, prison guards,

and Georgia Public Safety

and Georgia public safety officers who

Memorial Grant

have been permanently disabled or killed

in the line of duty.

Yes

Contact the school's financial aid

administrator for an application.

Yes

Complete the Georgia National Guard

Service-Cance lable Educational Loan

Application and promissory note.

Yes

Complete th e co llege's Mi litary

Scholarship App lication. The student

must also be nominated by a Georgia

state legislator.

Yes

Complete the North Georgia

College & State University ROTC

Grant App lication.

Yes

Complete the Georgia Public Safety

Memorial Grant/LEPO Grant

Appl ication.

- , Other Georgia Student Finance Includes Robert C. Byrd Scholarships,

U/G

Commission scholarship,

Osteopathic Medical Loans, and lntellec-

grant, and loan programs

tual Capital Partnership Program (ICAPP).

Yes

Contact the Georgia Student Finance

Commission fo r the appropriate

app lication.

Financial Aid Programs

Academic Year Maximums
Varies
$1,575

Institution Restrictions
Eligible colleges, universities, and technical colleges in Georgi a

NeedBased
No

Eligible col leges and universities in Georgia

..

No

Comments
Contact your high school guidance counselor, college financial aid administrator, or the HOPE Scholarship Program in Metro Atlanta at (770) 724-9030 or toll -free in Georg ia at 1-800-546- HOPE. Funded by th e Georgi a Lottery for Education.
Recipients are selected as entering freshmen. Renewable award .

$4,000 $2,000 Varies

N/A

Ye s

Eligible col leges, universit ies,

Yes

and technical co lleges

in Georgia

N/A

Yes

Submit additional documents if requested by the school's fin ancial aid administrator (e.g., tax records). Submit additional documents if requested by th e school's fin ancial aid administrator (e.g., tax records).
Exceptional need is req uired.

Varies

N/A

Varies

N/A

Varies
Vari es
Vari es
$3,000 for undergraduate study; graduate
level awards vary.

Parti cipating FFELP colleges, universities, and techn ical co ll eges
Participating FFELP colleges, universities, and technical col leges
Participating Direct Loan colleges, universities, and
technical colleges
Eligible co lleges and universities in Georgia

$ 1,045 $3,500

Eligible private colleges and universities in Georgia
Mercer University

Yes Yes Yes * No Yes* No
No No

$2,000 -$4, 500

GS FA-approved

No

colleges, universities,

and technical co lleges

$2,500 - $5,000

Public colleges and

Yes

universities in Georgia

Varies

Eligible colleges, universities ,

No

(Provides tuition only)

and technical co lleges

in Georgia

An amount th at covers

Georgia Military College

No

the cost of tuition, fees,

or North Georgia

room/board, books,

College & State University

supplies, and uniforms.

$ 1,500

North Georgia College

No

& State University

Varies

Eligible co lleges, universities ,

No

and technical col leges

in Georgia

Contact the school's financial aid administrator.
5% interest rate. Contact the school's fin ancial aid administrator regardin g the loan amount. Variable interest rate up to 8.25%. * NOTE: Students who do not demonstrate need may qualify for an
Unsubsidized Federal Stafford Loan with in -school interest payments. Interest rate is variab le up to 9% .
Variable interest rate up to 8 .25% . * NOTE: Students who do not demonstrate need may qualify for an
Unsubsidized Direct Loan with in-school interest payments. Contact your co llege fin ancial aid administrator or the Georgia Student Finance Authority in Metro At lanta at (770) 724-9000 or toll -free in Georgia at 1-800-776-6878 . Funded by the Georgia Lottery for Education.
Recipients must be full-tim e students.
Recipients are obligated to wo rk in Georgia in an engineering field one year for each $3,000 awarded. Funded by the Georgia Lottery for Educati on.
Contact the school's financial aid administrator regarding additional requirements, application procedures, and loan amounts.
Contact the school's financial aid administrator regarding additional requirements and application procedures. Contact the Georgia Student Finance Authority at (770) 724-9230 ; Georgia Air National Guard Educational Services Offi ce at (770) 919-4766; or Georg ia Army National Guard Educational Services Office at (404) 675-5371. Recipients are obligated to serve in the Georgi a National Guard after graduation. Contact Georgi a Military College or North Georg ia College & State University for more information.
Contact North Georgia College & State University for more information.
LEPO recipients may receive up to $8,000 for four years of undergraduate study. The Public Safety Memorial Grant award covers the cost of attendance minus any oth er aid received; funded by the Georg ia Lottery for Education.

Varies

El igible co lleges and universities

No

Contact the Georgia Student Finance Comm ission at 1-800-776-6878 .

Federal Education Loan Programs

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 Loan Program, these programs allow students and parents to borrow money through Federal Stafford and PLUS loans.
The eligibility requ irements , loan amounts, and repayment obligations for the two programs are the same. Under the Federal Family Education Loan Program, the Federal Stafford and PLUS loans are made by banks, savings and loan associations, and cred it unions . In Georgia, these loans are guaranteed by the Georgia Higher Education Assistance Corporation. Under the Federal Direct Loan Program , the federal government will make the Federal Stafford and PLUS loans to students and parents through the school.
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. The interest on the loan is subsidized, wh ich means that the federal government wi ll pay the interest for you wh ile 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

Base Subsidized Additional & Unsubsidized Unsubsidized

First Year Second Year Third Year & Beyond

$2,625 3,500 5,500

$4,000 4,000 5,000

Undergraduate Aggregate: $23,000 for dependent students; $46,000 for independent students

Graduate/Professional - Annual Amount

Base Subsidized Additional & Unsubsidized Unsubsidized

All Levels

$8,500

$ 10,000

Undergraduate/Graduate Aggregate: $138,500

Loan amounts wi ll 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 w ith your lender to make payments, including interest. The current interest rate is variable with a maximum of 8 .25%, adjusted annually over the life of the loan . 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 of dependent students. Financial need is not an eligibi lity requirement, but good credit is required. Most schools requ ire 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 agg regate 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 term s and conditions.

For general financial aid information and Stafford or PLUS loan applications, call the Georgia Student Finance Commission at (770} 724-9000 in Metro Atlanta, (478} 752-1185 in Macon, or toll
free at 1-800-776-6878. Write to us at 2082 East Exchange Place, Suite 230, Tucker, Georgia 30084 to ask about "Georgia Advantage" loans from the Georgia Student Finance Authority.

Service-Cancelable Stafford Loan

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 eligibi lity requirements, set by federal regu lations, as all other Federal Stafford loans. Add itionally, 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 cred it wil l be given for less than half-time employment or for service wh ile 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.

Approved Critical Fields

Undergraduate/Health
Dental Hygiene Dietetics (Food & Nutrition) Health Information
Managemen t Laboratory Technology Medical Technology Nurse Anesthesia Nursing, Licensed Practical Nursing, Registered (Associate
Degree, Bachelor's Degree, & Diploma) Occupational Therapy Ph arm acy Physical Therapy Physician Assistant Radiologic Technology Respiratory Therapy
Graduate Health Fields
Dentistry (General) O p to met ry

Graduate Health Fields (Cont.)
Pharmacy Veterinary Medicine
Master's Degree
Dietetics (Food & Nutrition) Health Information
Management Nurse Anesthesia Nursing Physical Therapy Radiologic Technology Respiratory Therapy
Other
Agriculture Education Gerontology OHR Nursing Georgia National Guard ICAPP (Intellectual Capital
Partnership Program) LINC (Nursing)

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

Financial Aid Application Checklist

D 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. Investigate private aid sources such as civic groups, clubs, religious organizations, and businesses.
D 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 al l of them for accuracy. Follow the instructions to make any corrections . Then, if the school(s) to wh ich 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 a copy 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 .
D If required by your col lege's financial aid office, complete a supplemental form, such as the PROFILE form. Contact
your high school counselor for more details.
D If the college's financial aid office has determined that you wi ll need a loan, contact the financial aid administrator about
the application procedures for the Federal Stafford loans as well as the Federal PLU S loan. Check with the Georgia Student Finance Authority on the benefits of financing your education with a service-cancelable loan.
D Contact the college's financial aid office to see if there are additional application procedures you must complete.
H-7 (7/02)