School and package comparison - KHEAA

March 2012
By now, most high school seniors should have
completed the college application process and will
soon begin receiving financial aid award letters.
Seniors and their parents should compare those
letters to find the one that offers the best financial aid
package.
The letter will usually show the total cost of
attendance — what it costs to go to that school for
one year, including tuition, fees, room, meals, books,
supplies, transportation and personal expenses. Keep
in mind that we’re talking about a school year, which
doesn’t include summer school.
It may also show how much the student’s family is
expected to pay toward those costs, the expected
family contribution (EFC). The EFC is subtracted
from the total cost of attendance to get a student’s
financial need. The letter will then list various sources
of financial aid offered to pay for the costs not
covered by the EFC. Students can accept or reject any
or all of those proposed sources.
One consideration is how much of the financial aid
will have to be paid back after a student finishes
school, especially if the financial aid package, like
most packages, includes federal student loans.
(Continued on next page)
For help with your higher education and financial aid questions, visit www.kheaa.com
KHEAA is an EEOC employer.
Follow us on
Twitter and
Facebook!
http://bit.ly/KHEAAfacebook
The contents of this newsletter were developed under a grant from the Department of Education. However, those contents do not necessarily represent the policy of the Department
of Education, and you should not assume endorsement by the Federal Government.

(Continued from previous page)
If the package isn’t enough to pay all expenses,
students may be looking at a private education loan.
Comparison shopping is a must in that case. Visit
kheaamarketplace.com to find the best private loan
for you.
Be sure to weigh all options before deciding on a
school.
The chart below will help you compare both schools
and school packages. Use your award letters that
you receive from colleges’ financial aid offices
and the Student Aid Report (SAR) that you receive
after filling out the FAFSA to fill out this chart to
compare the schools and financial aid packages you
are considering. The sample column will give you
an idea of how to fill in the needed information.
Sometimes the most expensive schools have
scholarships that will bring them in line with others.
So don’t limit yourself; consider all your choices
and compare.
School and package comparison
Sample School A School B
Need Calculation
$3,000
800
6,200
1,800
1,200
13,000
-1,000
12,000
Tuition and Fees
Books and Supplies
Room and Board
Transportation
Personal Expenses
Total Cost of Attendance (varies from school to school)
Minus Estimated Family Contribution (remains the same)
Financial Need
Financial Aid Package
$3,000
1,500
0
500
1,700
0
2,000
3,300
0
12,000
0
Federal Pell Grant
College Access Program Grant
Kentucky Tuition Grant
Other Grants/Scholarships
Kentucky Educational Excellence Scholarship (KEES)
Work-Study
Federal Perkins Loan
Federal Stafford Loan
Other Loans
Total Financial Aid Package
Unmet Need (Financial Need minus Total Financial Aid Package)
2

Adults returning to school can find lots of help
Are you an adult thinking about returning to college or
enrolling for the first time? Or perhaps you’re thinking
about taking courses online. If you are, Kentucky has
resources that can make the transition to college an
easier one. The state also offers financial aid programs
to help you.
KHEAA publishes Adults Returning to School,
available FREE from adult education centers or
directly from KHEAA. E-mail publications@kheaa.
com, and we’ll mail you a copy. The entire book is
online at www.kheaa.com, and a copy is sent to every
public library in the state. Adults Returning to School
has information about entrance exams, financial aid
programs, student loans and Kentucky schools.
Another KHEAA book, Affording Higher Education,
lists over 5,000 student aid programs available to
Kentucky students at Kentucky colleges. Copies are
sent to all public libraries, and the book is searchable
online on www.kheaa.com. That way you can find
programs specifically for adult students.
Adults Returning
To School
2011–2012
Guide to
Higher Education
for Adult Students
Provided by the Kentucky Higher Education Assistance Authority
Adult students are eligible for most state financial
aid programs, as long as they meet the general
requirements. For full details, go to www.kheaa.
com, click on “Adult Learners,” then click on
the links to grants, scholarships and financial aid
programs.
College grants available for adult students
Adult Kentuckians who are interested in taking college
classes may be eligible for a Go Higher Grant administered
by KHEAA.
Go Higher Grants are available to adults age 24 or older who
are enrolled less than half-time at a participating Kentucky
college or university. Applicants must show financial need.
The maximum award amount is $1,000 per academic year. It
covers tuition and a book allowance of $50 per credit hour.
To be considered for a grant, students must complete a Go
Higher Grant application and the FAFSA. Grant applications
are available at www.kheaa.com. The FAFSA can be
submitted online at www.fafsa.gov. Students are encouraged
to apply as early as possible because funding is limited.
3

Federal student aid programs can help pay college costs
The federal government sponsors numerous financial aid
programs that can help students and their parents pay college
expenses. Below is a brief summary that describes some of
the more common federal grant and loan programs. Grants
generally don’t have to be repaid, but loans do.
• Federal Pell Grant. Pell Grants provide up to $5,550
per year for undergraduates with financial need.
• Federal Supplemental Educational Opportunity
Grant. These provide up to $4,000 per year for
undergraduate students who have exceptional financial
need.
• Federal Perkins Loan. These loans are for students
with exceptional financial need. Undergraduates can get
up to $5,500 per year, while graduate students can get
up to $8,000 per year.
• Federal Stafford Loan. Stafford Loans are available
to undergraduate, graduate and professional students.
The amount students may borrow varies depending
upon their year in school.
• Federal PLUS Loan. Parents of dependent
undergraduate students may qualify for PLUS Loans, depending on the parents’ credit ratings. The
amount available depends on how much other financial aid the student receives. Graduate students may
apply for PLUS Loans if they have exhausted all of their Stafford Loan eligibility.
The Free Application for Federal Student Aid (FAFSA) is used to apply for all of these programs. Families
seeking a PLUS Loan must also submit a separate application.
New booklet will help freshmen adjust to first year at college
Kentucky students headed to college in the fall have a
new resource to help them through their first year on
campus.
Surviving College, a guide to students’ first year, is now
available free from KHEAA.
A guide to GET You through your freshman year
The 36-page booklet includes the following sections:
• Majors and class schedules.
• Staying healthy and safe on campus.
• Learning styles and study tips.
• Campus life.
• Financial basics.
To order a copy of Surviving College, e-mail
publications@kheaa.com, call (800) 928-8926, ext.
6-7372 or order online at http://bit.ly/KHEAAorderform.
4

KESPT offers free activity book for children
Parents who want to get younger children thinking about college have
an excellent resource in an activity book from the Kentucky Education
Savings Plan Trust (KESPT), a college savings program administered by
KHEAA.
The activity book, called “I Can Go to College, Too,” has child-friendly
text and fun things for children to do. They can try their hands at a saving
for college maze, a word search puzzle, a connect the dots picture and
other activities.
KESPT is the state’s official college saving plan. It is managed by TIAA-
CREF Tuition Financing Inc., a leading financial services provider.
For more information about KESPT, visit www.kysaves.com or call
1.877.598.7878.
To order a copy of the activity book, go to http://bit.ly/KHEAAorderform.
Dream Out Loud Challenge reminder
Just a reminder that Kentucky students in grades K-6 have a
chance to win $1,500 toward college and $500 for their school
in the Dream Out Loud Challenge. Students are invited to
answer the question “How will I change the world after I go to
college?”
Nine winning entries will be selected by a panel of judges.
One winner will be chosen from each of three categories in
grades K-2, grades 3-4 and grades 5-6. The categories are:
• Drawing.
• Poem or essay.
• Video.
Each winning student will receive a $1,500 college savings
account, and their schools will win $500. The contest runs
through March 16. Entries must be postmarked by March 16
and received by March 23.
The challenge is sponsored by KESPT.
Visit www.kysaves.com to learn more about the challenge,
including official rules and a complete description of entry
requirements. No purchase necessary. Void where prohibited.
5

Mary Jo Young Scholarship update
(Note: An article on this scholarship was in the
February Your KHEAA College Connection. This
contains updated information.)
Kentucky high school students may qualify for a
scholarship to help pay for dual credit classes taken
at a Kentucky college or university or for Advanced
Placement (AP) courses taken through the Kentucky
Virtual High School.
The Mary Jo Young Scholarship, named for a
former member of the Board of Directors of
KHEAA, is available to Kentucky students in
grades 9 through 12. Priority is given to low-income
students. The scholarship provides up to $405 per
class toward tuition for up to two classes each
semester and up to $125 per class for textbooks.
Scholarships can only be used in the fall and spring
semesters.
A contract is a written agreement between two
or more parties in which an offer is made and
accepted. If you’re thinking about signing a
contract, make sure you understand it.
If you rent an apartment or have your own cell
phone plan, you’ve probably signed a contract. If
you’ve taken out a federal student loan, you entered
a contract when you signed your Master Promissory
Note.
The application is available on www.kheaa.com,
linked from http://www.kheaa.com/website/kheaa/
mjyoung?main=1 and the application period runs
through May 1.
Senior year planner
March
❏ Submit mid-year grades if the colleges you’ve
applied to require them.
❏ Send in any required deposits.
❏ If you’ve been accepted by more than one college
but haven’t heard from your first choice, contact
that school about a decision before you make any
nonrefundable deposits to other schools.
❏ If you’ve decided on which school to attend,
notify that college of your decision. Let any other
colleges that have accepted you know about your
decision.
Be sure you understand contracts before signing
Since a contract sets out in detail what each party
is obligated to do for the other party, you should
read each contract thoroughly and ask questions.
If one of the parties agrees to make a change in the
contract, make sure the change is in writing. Get
all your questions answered before you sign the
contract, and keep a copy after you have signed. In
some cases, it might make sense to have an attorney
look over the contract before you sign it.
Consumer protection laws let you cancel some
contracts within three days of signing. Before you
6
sign any contract, find out if you have that option.
If you don’t, your options of getting out of the
contract are limited.
If someone uses high-pressure tactics to get you to
sign a contract, consider that a warning sign that
things may not be on the up and up. When that
happens, walk away.