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FINANCIAL AID OVERVIEW
COUNSELOR TRAINING FOR COLLEGE AND CAREER PLANNING
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 Events•College Goal Kentucky, various dates/sites statewide
COLLEGE GOAL KENTUCKY
Various Sites throughout the state.
https://www.facebook.com/KASFAACGK
www.kasfaa.com/collegegoalky
• Postcards with Financial Aid timeline (Kim Dolan can provide more as needed
TYPES OF FINANCIAL AID
• Scholarships• Grants• Work-Study• Loans
SOURCES OF FINANCIAL AID
• Federal government• State government• Institutional• Private sources
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)
• Maximum award usage is 600% or equivalent of 6 years
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
• Not all schools participate in this program
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.• 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 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 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 PROGRAMS
• Administered by the Kentucky Higher Education Assistance Authority (KHEAA)
• Information and applications for Kentucky grant and scholarship programs at www.kheaa.com
KHEAA PROGRAMS
Below are a few popular state programs most relevant to high school students and parents:•College Access Program (CAP) Grant•Kentucky Tuition Grant (KTG)•Kentucky Educational Excellence Scholarship (KEES)•Go Higher Grant•Kentucky Education Savings Plan Trust•Kentucky's Affordable Prepaid Tuition
INSTITUTIONAL AID
• Differs from one college to another• Contact colleges directly when applying
• Apply early• Submit polished applications• Respond promptly to offers
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 ENGINES
•www.kheaa.com•www.finaid.org•www.collegeboard.com•www.fastweb.com•www.studentaid.ed.gov
FILING THE FAFSA
FAFSA ON THE WEB
•Website: www.fafsa.gov•2014-15 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 PROCESS
• Student completes FAFSA• FAFSA results are transmitted to the school(s)
listed on the FAFSA• School uses the EFC amount to determine
eligibility for financial aid• School 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 number• Parents’ Social Security number • Driver’s license number• Alien 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 2014 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
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• 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 whether married or not.
• 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
SPECIAL CIRCUMSTANCES
Students 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.
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 : • 2014 Federal tax return transcript
• Transcript may be obtained by contacting IRS online at www.irs.gov
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
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• 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!
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: [email protected]
FEDERAL RESOURCE FOR STUDENTS
http://StudentAid.gov/
•Student Aid on the Web—planning for college, paying for college, and repaying student loans•Funding Your Education: The Guild to Federal Student Aid•How to Qualify for Financial Aid•Types of Financial Aid•How to Apply for Financial aid•Looking for Student Aid Without Getting ScammedFact sheets on various topics
FSA FOR COUNSELORS—RESOURCES TO HELP YOU HELP YOUR
STUDENTS
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
