All YOU NEED TO KNOW ABOUT APPLYING FOR FINANCIAL AID.
List of things the student should be aware of.
Topics We Will Discuss TonightWhat is financial aidCost of attendance (COA)Expected Family Contribution (EFC)What is financial needCategories, types, and sources of financial aidFree Application for Federal Student Aid (FAFSA)Special circumstances
What is the Expected Family Contribution (EFC)Amount family can reasonably be expected to contributeStays the same regardless of collegeTwo componentsParent contributionStudent contributionCalculated using data from a federal application form and a federal formula
What is Cost of Attendance (COA)IncludesTuition & FeesRoom & BoardBooks, supplies, transportation, and misc. personal expensesSometimes can includeLoan feesStudy abroad costsDependent care expensesVaries widely from college to college
What is Financial NeedCost of Attendance Expected Family Contribution = Financial Need
LoansMoney students and parents borrow to help pay college expenses Repayment usually begins after education is finishedOnly borrow what is really neededLook at loans as an investment in the future
Other places the student should look for financial help.
Sources of Financial AidFederal governmentStatesPrivate sourcesCivic organizations and churchesEmployers
Common Federal Aid ProgramsFederal Pell GrantTeacher Education Assistance for College and Higher Education GrantFederal Supplemental Educational Opportunity Grant
Federal Perkins LoanFederal Work-StudySubsidized and Unsubsidized LoansPLUS Loans
Federal Pell GrantAwarded amount based on EFC, COA, and enrollment status (full-time, half-time, etc.)
Generally awarded to undergraduate students only, few exceptions
Maximum award for 2011-2012 = $5,550
TEACH GrantU.S. citizenBe enrolled in course work that is necessary to begin a career in teaching or plan to complete such course work.Meet certain academic achievement requirementsSign a TEACH Grant Agreement to ServeTeach full time as a highly qualified teacher at a low income school in a high need field for 4 years after degree completion.If you do not complete the required teaching service obligation, TEACH grant funds you received will be converted to a Federal Direct Unsubsidized Stafford Loan that you must repay, with interest charged from the date of each TEACH Grant disbursement.
FSEOG (Federal Supplemental Educational Opportunity Grant)Annual award amounts vary from $100 to $4,000 a year
Students with the lowest EFCs are awarded first
Priority goes to Federal Pell Grant recipients
Federal Work Study (FWS)Provides part-time employment while you are enrolled in schoolEmployment may be on or off campusEven if you dont qualify for FWS you may still be able to have an on campus job!Inquire about jobs at your colleges Student Employment Office
Federal Perkins LoanPriority to students who show exceptional needInterest rate: 5% fixedNine month grace period, repayment may be up to 10 yearsDeferment and cancellation provisions available for qualifying employmentMaximum annual award$4,000 for undergraduate students$6,000 for graduate students
Federal Direct LoansSubsidized must demonstrate needU.S. Department of Education will pay (subsidize) the interest that accrues while in schoolUnsubsidizednot based on needmost everyone can qualify
Direct Loans Annual Loan LimitsAnnual Loan Limits (combined subsidized and unsubsidized)Classification Dependent IndependentFreshman $5,500 $9,500Sophomore $6,500 $10,500Each remaining year $7,500 $12,500Graduate/Professional N/A $20,500
Direct LoansThe interest rate on Direct loans first disbursed on or after July 1, 2012 will be 6.8%: Repayment begins after 6 month grace periodMaximum repayment period between 10 and 30 years
Plus LoansParents of dependent undergraduate studentsGraduate/Professional studentsRepayment begins immediately but can be deferred upon requestDirect interest rate: 7.9% If a parent is unable to borrow (denied) a parent PLUS loan, a student may be eligible for additional unsubsidized loan
To receive any of the previously mentioned monies they have to apply for FAFSA
Free Application for Federal Student Aid (FAFSA)A standard form that collects demographic and financial information about the student and familyMay be filed electronically or using paper formAvailable in English and Spanish
FAFSAInformation used to calculate the Expected Family Contribution or EFCThe amount of money a student and his or her family may reasonably be expected to contribute towards the cost of the students education for an academic yearColleges use EFC to award financial aid
FAFSA on the WebWebsite: www.fafsa.gov201213 FAFSA on the Web available on January 1, 2012FAFSA on the Web Worksheet:Used as pre-application worksheetQuestions follow order of FAFSA on the Web
IRS Data Retrieval While completing FOTW, applicant may submit real-time request to IRS for tax dataIRS will authenticate taxpayers identityIf match found, IRS sends real-time results to applicant in new windowApplicant chooses whether or not to transfer data to FOTWAvailable early February 2012 for 201213 processing cycleParticipation is voluntaryReduces documents requested by financial aid office
Federal Student Aid Personal Identification Number (FSA PIN)Website: www.pin.ed.govSign FAFSA electronicallyNot required, but speeds processingMay be used by students and parents throughout aid process, including subsequent school years
SOME Eligibility Questions
Where did you go to High School?
Heard this before?
I am not sure which college
List up to 10!
Does the student have to use their parents information?
What if the parents refuse?
Did Parents File Taxes?
Linking to the IRS is quick, easy and may save the student and/or parent from having to get a copy of their Tax Return Transcript.
Click OK to be taken to the IRS Website.
Name, SSN & DOB pre-populate.
You will need:Filing Status &Address exactly as it appeared on your tax return.
Dad & Mom Student***-**-2223$59,656$1,843$778Check the Transfer My Tax Information Box then Click Transfer Now
Answer the questions that were not answered by the IRS Transfer but Watch for questions that have Transferred from the IRS above them.
If Linking to the IRS is not an option or does not work, select the correct status for parents tax return then click next.
The answers to these questions would be found on the parentstax return page 1, the parents schedule C and the parents W-2.
Some answers can be found on page 1 or 2 of the parents tax return or the parents w-2. The remaining questions would come from outside sources i.e. bank statements, KS payment center, Social Security Office, etc.
Did the student file?
From the students W-2.
Some answers can be found on the students w-2. The remaining questions would come from outside sources i.e. bank statements, KS payment center, Social Security Office, etc.
Student SignAgree to TermsParent SignAgree to Terms
Approximate Aid Amounts!
Frequent FAFSA ErrorsSocial Security NumbersDivorced/remarried parental informationIncome earned by parents/stepparentsUntaxed incomeU.S. income taxes paid Household sizeNumber of household members in collegeReal estate and investment net worth
FAFSA Processing ResultsCentral Processing System (CPS) notifies student of FAFSA processing results by:Paper Student Aid Report (SAR) if paper FAFSA was filed and students e-mail address was not providedSAR Acknowledgement if filed FAFSA on the Web and students e-mail address was not provided
FAFSA Processing ResultsCPS notifies student of FAFSA processing results by:E-mail notification containing a direct link to students on-line SAR if students e-mail was provided on paper or electronic FAFSAStudent with PIN may view SAR on-line at www.fafsa.govInstitutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA submittedCollege reviews ISIRMay request additional documentation, such as proof that a sibling is enrolled in college
Making CorrectionsIf necessary, corrections to FAFSA data may be made by: Using FAFSA on the Web (www.fafsa.gov) if student has a PIN;Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); orSubmitting documentation to colleges financial aid office
Special CircumstancesCannot report on FAFSASend written explanation to financial aid office at each collegeChange in employment statusMedical expenses not covered by insuranceChange in parent marital statusUnusual dependent care expensesStudent cannot obtain parent information
Special CircumstancesWhat to do if the student does not have parents with taxes?Put in 9 0s in SSNPrint off Signature page and mail it in.Students who have split homes.Student must apply under the parent that supports them the most.
CAUTION!!!Avoid being charged a fee to file the FREE Application for Federal Student AidCompletion and processing of the FAFSA are FREEwww.fafsa.govCall UsFederal Student Aid Information Center (FSAIC): 1-800-4-FED-AID (1-800-433-3243)TTY (for the hearing impaired): 1-800-730-8913Locations without access to 800 numbers: 319-337-5665
Where do I go from here?Obtain and review admissions and financial aid Web sites and materials for each school to which you are applying.Meet all application deadlines.Complete FAFSA and other application materials. Submit all requested follow-up documents.Investigate other sources of aid.