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Overview
• The financial aid equation • Who gets the money?
• Types of financial aid – • Grants• Scholarships• Work• Loans
• How to apply for financial aid• Free scholarship searches
What Financial Aid Offers
• Access to funds to help pay for• 4-year public and independent colleges and
universities• Community colleges• Private career colleges
• Choice among schools • Choose the best academic, career, cultural, and
social fit rather than the least expensive program
Sources of Aid
• Federal Government– Grants, Loans and Work Study
• State Government– Cal Grant and Chafee Grant
• Institutions– Grants, Scholarships, Loans and Work Study
• Private foundations/organizations– Scholarships and Loans
Types of Aid
• Grants– Gift aid based on income and circumstances
• Scholarships/Merit Awards– Gift aid based on grades and achievement
• Loans– Aid to be repaid
• Work Study– Work to earn programs that can be used to help with
the costs
Applications
• Federal – FAFSA (Free Application for Federal Student Aid)
• State – FAFSA and GPA Verification Form
• Institutional – Various forms may include the CSS Profile.
California State Funding
• Cal Grant A Entitlement Awards – for students with a GPA of at least 3.0, family income and assets below the state ceilings, and who demonstrate financial need
• Cal Grant B Entitlement Awards – for students from disadvantaged or low income families with a GPA of at least 2.0, family income and assets below the state ceilings, and who demonstrate financial need
• Cal Grant C Awards - for students from low income families pursuing vocational programs of study
California State Funding
• In order to be eligible for the Cal Grant you must also meet the following criteria.– be a U.S. citizen or
eligible non-citizen– be a California resident – attend a California college or university in 2012-2013
California State Funding
• To apply for the Cal Grant you must:– Submit your FAFSA prior to March 2nd, 2012– Submit your GPA verification form prior to
March 2nd, 2012• Many high schools will submit the GPA
verification form on your behalf. Make sure you know how your school handles this form.
What is the FAFSA?
• FAFSA – Free Application for Federal Student Aid• www.fafsa.gov not www.fafsa.com• Used to determine how much need a family has by
looking at income, assets and family size. • Need is determined by the EFC – Expected Family
Contribution.• The FAFSA uses federal methodology to calculate each
family’s EFC.• Each school you list is electronically sent the results of the
application so they can determine your eligible aid.
What is the FAFSA?
Cost of Attendance - Expected Family Contribution
Financial Need*
*Financial Need equals
Financial Aid Eligibility
Federal Application
• 2012-13 FAFSA is not available until January 1st, 2012• File early, but no later than March 2, 2012
• Use estimated 2010 income information if taxes are not complete at time of FAFSA submission
• Student and at least one parent must complete and sign the FAFSA
• Best to complete the form electronically.
Federal Application
Before starting the FAFSA, gather:– Student driver’s license – Student Alien Registration Card– Student and Parent
Social Security cards 2010 W-2 Forms and other records of money earned 2010 federal income tax form Records of untaxed income Current bank statements Business, farm and other real estate records Records of stocks, bonds and other investments
Create a file for copies of all financial aid documents submitted
Federal Application
• Access– You can contact the Department of Education
by:• Phone: 1-800-4-FEDAID or 1-800-433-3243• Email:
federalstudentaidcustomerservice@ed.gov• Live Help (chat): available on website
Early Estimates
• FAFSA4Caster– Allows you to get an estimate if you are not
ready or able to complete the FAFSA– Saves information and imports it to your actual
FAFSA when available– Prepares you for the questions and offers
additional assistance– Available at www.fafsa.ed.gov
Net Price Calculator
• New regulations state that every US school must have a standardized calculator to give families an idea how much it will cost to attend.
• Different schools = different calculators– Some schools use a generic calculator– Some schools have broad ranges– Some schools use the lowest estimate
• Output is only as accurate as the information entered
FAFSA
Make sure you use the student’s demographic information and not parent information when setting up the FAFSA
FAFSA
• PIN serves as the electronic signature
• Both student and at least one custodial parent need PIN to sign the FAFSA electronically
• May be used to:– Check on FAFSA status– Verify and correct FAFSA data– Add additional schools to receive FAFSA data– Change home and e-mail addresses
• If you select your “four number” PIN, it is automatically activated
Apply for a PIN at:
www.pin.ed.gov
Student Information
• Use your proper name• Use student SSN
and DOB• Use student email
to ensure that the report is sent to you as the student• If male, Selective
Service is required to receive federal aid
Student Information• Smart form• You must be a US
citizen or eligible non-citizen for federal aid
• Be careful with stating what degree you will be working on
• Consider marking yes to work study
Student Information – Drug Abuse• If convicted of
drug use, possession or sale, the student is not eligible for federal student aid.
• Schools may offer a means to rehabilitate this status.
Student Information – Schools• List a California
college or university first (for Cal Grant consideration)
• It’s important that you get your FAFSA information to the right schools.
• You can select up to 10 schools & after this submission, can substitute the original schools for additional schools.
• Select housing status
Student Information - Dependency• These questions
determine if a student is independent
• Age: 18 versus 23• Claiming a student on
a tax return• Foster youth• Emancipated minors• Legal guardianship
does not include biological parents
Student Information - Dependency• If found to be a
dependent student, you must provide parent information.
• You can skip this step if you are a dependent student that should be considered a special circumstance.
• Documentation will be required.
Parent Information• Provide Information on:
– Biological or adoptive parent(s)– Stepparent (regardless of any prenuptial agreements)
• Do not provide information on:– Foster parent(s), student is automatically considered an
independent student– Legal guardian(s) or grandparent(s) or other relative(s)
unless they have legally adopted you.
Student may request a dependency override in certain circumstances, contact a Financial Aid Office for more
information
Parent Information• Use parent SSN and DOB• List your email
– Schools may use to communicate
• Legal residence– Cal Grant eligibility
• Household size– Children, parents,
anyone else supported > 50%
• Number in college– Parents in college
Parent Information Undocumented• Do not use your Federal Tax Payer ID Number as a social
security number.• When asked to provide your social security number,
enter all zeroes.• When asked if you have filed taxes for 2011, answer
“not going to file.”• You will not be able to apply for a pin number to sign
the FAFSA. You will need to print a signature page and mail it immediately.
Parent Information – Marital Status• What is your parent’s marital status as of today?• When did your parents get married or remarried?• 1213 FAFSA will allow marriage update for parent and
student. – Up to each school to approve each request
• If your custodial parent is not married, this “smart form” will ask for which parent you are completing the form.– The parent that provides more than 50% of the
support over the past 6 months will list financial information and sign with PIN.
Parent Information• You can estimate
using the income estimator if needed
• Hints on the side help you locate AGI and wages based on 1040 or W-2
Parent Information – Work Status• Is Parent a Dislocated Worker?• A person may be considered a dislocated worker if he / she:
– is receiving unemployment benefits due to being laid off or losing a job and is unlikely to return to a previous occupation;
– has been laid off or received a lay-off notice from a job; – was self-employed but is now unemployed due to economic
conditions or natural disaster; or – is a displaced homemaker.
• Note: If you answer Yes, the financial aid administrator at your college may require proof that your parent is a dislocated worker.
Parent Information
• How much did your parents pay in income tax?
– Line 55 of IRS 1040 federal tax return
• Taxes paid is not the amount withheld on the W-2 Form!!! It is:
• amount withheld plus any check sent with the tax return or/
• the amount withheld minus any refund.
Parent Information
• Enter the number of tax exemptions your parents will claim for 2010. – IRS Form 1040 – Use Line: 6d
• This does not need to match the household size (but it often does).
• The student does not need to be claimed on the tax return of the custodial parent!
Parent Information• Some untaxed income
information is found on your 1040 tax return, other items are not.
• If you answer yes to the asset question, you will provide:– Current cash balance– Investment net worth– Business net worth
Student Tax InformationThe directions to complete the student section are the same as those outlined for the parents.
Student Assets• Do not report a 529 account as a student asset. Report as a parent asset! • Any other asset in the student’s name MUST be
reported.
Signing the FAFSA• It is recommended that you sign the FAFSA
electronically with a PIN number for the student and the parent.
Scholarship Opportunities• Outside Resources• Community: Rotary, YMCA, Elks• Parent’s Employer • Web Sites: www.fastweb.com• Time spent on searches… Worthwhile?• Outside Scholarships can replace loans/work
• Tips• Be Cautious• Limit Dependency• Do your Homework• Refer to institutional resources on the web
Special Circumstances
• Contact the Financial Aid Office if: • Loss or reduction in parent or student income or
assets• Death or serious illness• Unusual medical or dental expenses not covered
by insurance• Reduction in child support, social security benefits
or other untaxed benefit• Financial responsibility for elderly grandparents• Any other unusual circumstances that affect a
family’s ability to contribute to higher education
Summary of the Financial Aid Process
• Submit all required forms, including FAFSA, by each college’s published deadlines (but no later than March 2)
• By March 2 submit a Cal Grant GPA Verification Form
• Keep a copy of all forms submitted
• Review the electronic Student Aid Report (SAR)
• Acknowledgement or the paper SAR sent to the student
• Review the California Aid Report (CAR)
• Watch for financial aid award notifications from colleges to which the student has been admitted
• Be sure to apply for financial aid this year and every year as soon as possible after January 1 to receive the best financial aid award possible
• ASK QUESTIONS!
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