Counselor Training for College and Career Planning 2013 High School Counselor Workshops

Counselor Training for College and Career Planning

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Financial Aid Overview

AGENDA

•KASFAA•Financial Aid Overview

Aid Programs•FAFSA

Filing the FAFSA Dependency status

Special CircumstancesProcessing the FAFSA

Verification•Resources for Counselors and Students

Kentucky Association of Student Financial Aid Administrators

Our mission is to pledge support to professional activities and communications in all areas concerned with the administration of student educational financing programs

Upcoming EventsHigh School Workshop, 10 sitesCollege Goal Kentucky, various dates/sites statewide

College Goal KentuckyVarious Sites throughout

the state. www.kasfaa.com/collegegoalky

Postcards with Financial Aid timeline (Kim Dolan can provide more as needed

kdolan@kheslc.com)

Financial Aid Overview

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Financial Aid IncludesScholarshipsGrantsWork-StudyLoans

Sources of Financial AidFederal governmentState governmentInstitutionalPrivate sources

Federal Aid Programs

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Federal Aid Programs Aid awarded primarily on the basis of

financial need

Students must apply every year using the Free Application for Federal Student Aid (FAFSA)

Federal Pell Grant Need-based grant Available to undergraduate students who

have not received a bachelor’s or first professional degree (exception for teacher certification students)

TEACH Grant Teacher Education Assistance for

College and Higher Education Grant For undergraduate, post-baccalaureate, or graduate

students who are/will be taking course work necessary to become elementary or secondary teachers

Must attend a participating college and meet certain academic achievement requirements

Must agree to serve, for a minimum of four years (within eight years of completing academic program), as a full-time teacher in a high-need field in a school that serves low-income students or TEACH Grant reverts to student loan

Campus-Based Aid Federal Supplemental Educational

Opportunity Grant (SEOG) Federal Work-Study Federal Perkins Loan

Awarded by schools on a “first come, first served” basis within guidelines for each program

Federal Work-study Undergraduate and graduate students Need-based, part-time employment No minimum or maximum award May look at willingness to work Must pay at least federal minimum

wage The program encourages community service

work and work related to the recipient's course of study.

Federal Direct Stafford Student Loans Loan application is the FAFSA Student borrows from and repays to

federal government School facilitates loan process Annual and aggregate borrowing limits Amounts increase for subsequent years

of study, with higher amounts for graduate students.

Federal Direct Stafford Student Loans In-school deferment Six month post-enrollment grace period Low, fixed interest rates Various repayment options available to

students entering repayment

Federal Direct PLUS Loans Parents of dependent undergraduate

students may apply for the Parent PLUS loan

Graduate or professional students may apply for the Graduate PLUS loan

PLUS loans require approval based on credit.

Veterans Benefits

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Veterans BenefitsPost-9/11 GI Bill

http://www.gibill.va.gov

1-888-GIBILL-1(1-888-442-4551)

Veterans BenefitsPost-9/11 GI Bill

Individuals who serve at least 90 days of aggregate service after 9/10/01 are eligible at varying percentages for length of service.

Benefits may include: Tuition and fees (paid directly to school) Monthly housing allowance (paid to student) Books and supplies stipend (paid to student)

Benefits are payable only for approved training and education programs offered by a college or university.

Veterans BenefitsPost-9/11 GI Bill -Transferability

Allows career service members (6 years + of service) the opportunity to share their education benefits with immediate family.

Immediate family includes:

- The individual’s spouse

- The individual’s children (under 26 years of age)

- Any combination of spouse and children

Yellow Ribbon Program

Allows colleges and universities to enter a voluntarily agreement with VA to fund tuition expenses that exceed the highest public in-state undergraduate rate for individuals eligible for the GI Bill 100% payment tier.

http://www.gibill.va.gov/benefits/post_911_gibill/yellow_ribbon_program.html

STATE AID PROGRAMSKentucky

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State Aid Programs Residency requirements for eligibility

Merit and need-based aid types

May use information from the FAFSA to determine eligibility

Grant program eligibility determined upon when the FAFSA is completed

Kentucky Aid ProgramsAdministered by the

Kentucky Higher Education Assistance Authority (KHEAA)

Information and applications for Kentucky grant and scholarship programs at www.kheaa.com

KHEAA ProgramsBelow are a few popular state programs most relevant to high school students and parents:College Access Program (CAP) GrantKentucky Tuition Grant (KTG)Kentucky Educational Excellence Scholarship (KEES)Go Higher GrantKentucky Education Savings Plan TrustKentucky's Affordable Prepaid Tuition

Institutional Aid Programs

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Institutional AidDiffers from one college to

anotherContact colleges directly when

applyingApply earlySubmit polished applicationsRespond promptly to offers

Private Aid Sources

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Private Sources Foundations and professional

organizations in the student’s field of study

Local businesses and employers Community organizations and civic

groups Religious groups Ethnicity-based groups

FREE Online Scholarship Search Engineswww.kheaa.comwww.finaid.orgwww.collegeboard.comwww.fastweb.comwww.studentaid.ed.gov

Filing the FAFSA

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FAFSA on the Web

Website: www.fafsa.gov2014-15 FAFSA on the Web available on January 1, 2014

FAFSA Demo for Counselors Allows counselors to increase their own

understanding of FAFSA on the Web and to show it to students and parents before they apply

http://fafsademo.test.ed.gov When you visit the site, you will be

prompted for a user name and password User name: eddemo Password: fafsatest

Application ProcessStudent completes FAFSAFAFSA results are transmitted to the

school(s) listed on the FAFSASchool uses the EFC amount to

determine eligibility for financial aidSchool communicates eligibility to the

student through an award “package”

Expected Family Contribution (EFC) Amount a family can reasonably Amount a family can reasonably

be expected to contribute to be expected to contribute to collegecollege

EFC is calculated using data EFC is calculated using data provided on the FAFSA provided on the FAFSA

EFC remains the same from EFC remains the same from college to collegecollege to college

FAFSA Filing Deadlines Encourage families to file early:

Families encouraged to file as soon as possible after January 1st

Some types of aid are “first come, first served” and funding is limited

Likely to receive more timely award information from schools for students to make college decisions/plans

Documents needed to complete the FAFSA

The following information and documents are necessary for completing the FAFSA:

Social Security numberParents’ Social Security number Driver’s license numberAlien Registration Number if not a U.S.

citizen

Documents needed to complete the FAFSA

The following information and documents are necessary for completing the FAFSA:

Federal tax information or tax returns, including IRS W-2 information, for the year prior to the academic year for which you are applying

Income tax information for yourself and spouse, if you are married, and for your parents if you must provide parent information

Estimated tax information if tax return not yet completed

Records of untaxed income, such as child support and interest income

Using Estimated Tax Information on the FAFSA Students and/or parents who have not

completed their 2013 tax returns may submit a FAFSA using estimates

Filing FAFSA with estimated numbers allows students to file early to meet priority deadlines

Resources to assist with estimating tax data may be obtained through the IRS website www.irs.gov/formspubs/index.html

After tax returns are completed, income or tax information should be submitted on the FAFSA

IRS Data Retrieval Families are STRONGLY encouraged to use

IRS Data Retrieval process to import tax information directly from the IRS database into the FAFSA

Prompts in the tax information section of the FAFSA on the Web will guide student/parent through IRS data retrieval option

IRS Data Retrieval

If using estimated tax information to file the FAFSA early, as recommended, later corrections to submit completed tax information should be made using IRS data retrieval

Federal Student Aid PIN

Students and parents of dependent students must have PIN to complete FAFSA on the Web

Students and parents may apply for a PIN early and do not have to wait until the FAFSA is available January 1, 2014

FILING THE FAFSADependency Status

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Dependency Status:Criteria for Independent Students

At least 24 years of age on or before December 31st of the award year

Graduate or professional student Married Has children or dependents other than a

spouse for whom the student provides more than half support

Serving on active duty in the U.S. Armed Forces for other than training purposes

Veteran of the U.S. Armed Forces

Dependency Status:Criteria for Independent Students

Orphan (i.e. both parents are deceased) or is a ward/dependent of the court, or was a ward/dependent of the court until age 18

Emancipated minors or in legal guardianship as determined by a court of competent jurisdiction in the applicant's state of legal residence

Unaccompanied youth who is homeless or at risk of homelessness and is self-supporting

Dependency Override forSpecial Circumstances If the student has no contact with a parent and is

unable to provide parental data on the FAFSA, a review of special circumstance may be done

Examples of special circumstances for professional judgment may include, but are not limited to:Parent(s) are incarcerated Whereabouts of parents unknownStudent left home due to an abusive situation

Financial aid office requires documentation for such situation

Dependency Override for Special Circumstances

FAFSA on the Web filers: Answer questions regarding special circumstance and remaining student questions and sign and submit for processing

Students should contact schools listed on FAFSA for further assistance to complete their FAFSA

Definition of “parent” for parental data on FAFSA

If parents are living and in same household, answer the questions about both.

If parent is widowed or single, answer questions about that parent. If widowed parent is remarried as of the day you sign the FAFSA, answer questions about that parent and the person whom the parent married (stepparent).

Definition of “parent” for parental data on FAFSA If parents are divorced or separated, answer the

questions about the parent with whom student lived more during the past 12 months.

If student lived exactly six months with each parent, give answers about the parent who provided more financial support during the past 12 months OR during the most recent year that student received support from a parent.

If this parent is remarried, answer the questions on the FAFSA about that parent and the person whom the parent married (stepparent).

Definition of “parent” for parental data on FAFSA

The following people are not parents and should not provide FAFSA data except in cases of adoption: grandparents foster parents legal guardians older brothers or sisters uncles or aunts

FILING THE FAFSASpecial Circumstances and

Professional Judgment

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Special CircumstancesStudents should contact the school with special

circumstances such as: Dislocated Worker Change in employment status Medical expenses not covered by insurance Change in parent marital status Unusual dependent care expenses Student cannot obtain parent information

The school may use professional judgment to review extenuating circumstances for possible adjustments to FAFSA data.

FILING THE FAFSAProcessing of the Application

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FAFSA Processing Results Student will receive a Student Aid Report

(SAR)

Student should review and make any necessary changes

Verification

Verification is a process in which schools must collect information to verify accuracy of data entered on the FAFSAReasons for verification: Chosen randomly FAFSA contains estimated information Data provided on the FAFSA is inconsistent

Verification

For verification of information on FAFSA, student/parent may be asked to provide the school with : 2013 Federal tax return transcript

Transcript may be obtained by contacting IRS online at www.irs.gov or by phone 1-800-908-9946

Verification

Student/parents may also be asked to provide documentation which may include, but is not limited to: Copies of W-2 forms Verification worksheet provided by school Record of untaxed income such as child support, untaxed pensions, etc. Record of child support paid, if reported on FAFSA

Verification

HELPFUL HINT:To limit documentation required for verification purposes, families are encouraged to utilize the IRS Data Retrieval Process when completing or correcting tax information on the FAFSA.

Verification Eligibility for aid cannot be determined by the school until the verification process is completed Students should provide requested verification documentation promptly to ensure timely processing for aid determination purposes

FILING THE FAFSAErrors and Myths

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Frequent FAFSA Errors Social Security Numbers incorrect Divorced/remarried parental information

improperly reported Income earned by stepparent not included Untaxed income not included U.S. income taxes paid misreported

Frequent FAFSA Errors Household size discrepancies Number of household members in college Asset information unreported Wrong “degree seeking” type Parent/student has not signed with PIN

FAFSA Myths

“I won’t file the FAFSA since my family makes too much money so I won’t qualify for aid.”

Reality: No income cut-off to qualify for federal student aid Many factors besides income—from the size of your

family to the age of your older parent—are taken into account.

FAFSA may also be the application for funds from your state, and possibly from your school as well

Don’t assume! File the FAFSA and find out.

FAFSA Myths

“Only students with good grades and high ACT scores get financial aid.”

Reality: Most federal student aid programs do not

take a student’s grades into consideration As long as a student maintains satisfactory

academic progress, federal student aid can help a student with an average academic record

FAFSA Myths

“You have to be a minority to get financial aid.”

Reality: Funds from federal student aid programs are

awarded on the basis of financial need, not on the basis of race.

The FAFSA doesn’t even collect this kind of information about an applicant.

FAFSA Myths“The FAFSA is too hard to fill out.”

Reality: Detailed instructions provided for every

question, and the form walks you through step by step

Help available through online real-time chat and by phone

Assistance available through school financial aid offices

Free advice and Free to file!

Student Aid Resources

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Net Price Calculator

All colleges are required to provide online net price calculators

Benefits of net price calculators: Provide estimate of college costs Provide estimated financial aid packages Students can compare estimated financial

aid and expenses at multiple schools

FAFSA4casterhttps://fafsa.ed.gov/FAFSA/app/f4cForm?execution=e1s1

Early start on the financial aid process Provides early estimate of eligibility for federal aid

based on current laws and student information Helps families begin the financial planning

process for college Reduce time to file FAFSA as information will pre-

populate from FAFSA4caster when filing FAFSA on the Web

Federal Student Aid Contact Info

Federal Student Aid Information Center (FSAIC)

• Toll-free number for questions about federal student aid 1-800-4-FED-AID (1-800-433-3243)

• TTY (for the hearing impaired) 1-800-730-8913

• E-mail: fsa.customer.support@ed.gov

Federal Resource for Students

http://StudentAid.gov/Student Aid on the Web—planning for college, paying for college, and repaying student loansFunding Your Education: The Guild to Federal Student AidHow to Qualify for Financial AidTypes of Financial AidHow to Apply for Financial aidLooking for Student Aid Without Getting ScammedFact sheets on various topics

FSA for Counselors—resources to help you help yourstudents

www.fsa4counselors.ed.gov Online training and information about

live training Financial Aid Night PowerPoint

presentation and script

www.fsapubs.gov/ Federal Student Aid Publications

Ordering System

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Questions

?

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Thanks to our workshop sponsors!

Kentucky Association of Student Kentucky Association of Student Financial Aid Administrators Financial Aid Administrators

(KASFAA)(KASFAA)

Kentucky Higher Education Kentucky Higher Education Assistance Authority (KHEAA)Assistance Authority (KHEAA)

ACT, Inc.ACT, Inc.

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Thank you for attending!