WELCOMEFinancial Aid Night

Brenda Thomas

Financial Services Spcialist

Office of Financial Aid

Western Michigan University

TONIGHT’S AGENDA

•What is Financial aid?

•What types of aid are available?

•What makes me eligible?

•The FAFSA application process!

•What should I expect after I file for aid?

•Who do I call with questions or changes?

WHAT IS FINANCIAL AID?

Scholarships: Money that does not have to be paid back.Awarded on the basis of merit, skill, or unique characteristic

Grants:Money that does not have to be paid backUsually awarded on the basis of financial need

Loans:Money students and parents borrow to help pay college expenses. Look at as an investmentRepayment usually begins after education is finishedOnly borrow what is really needed

Employment opportunities:Allows student to earn money to help pay educational costs in the form of a paycheck or non-monetary compensation, such as room and board

FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA)A standard form that collects demographic and financial information about the student and family

Used to calculate an [EFC] Expected Family Contribution

Colleges use EFC to award financial aid

For the 2014–15 academic year, the FAFSA may be filed beginning January 1, 2014

Most colleges set FAFSA filing deadlines

FAFSA ON THE WEB

www.fafsa.gov

Access to FAFSA4caster

Parents with more than 1 college student can transfer data from original application to others

Option to use Internal Revenue Service (IRS) Data Retrieval Tool (DRT) to import tax data available early February 2014 for 2014-15

…ONE LOG-IN FOR ALL APPLICANTS

PIN WEB SITEPIN serves as electronic signature on ED documents, including electronic promissory notes.

PIN is used to gain access to ED systems, including:

Corrections on the WebNSLDSDirect Loan Origination Direct Loan ServicingLoan Consolidation

Sign FAFSA electronically

IRS DATA RETRIEVAL TOOL

Allows you to securely transfer your tax information directly to the FAFSA

You must complete and submit your 2013 federal income tax return to use this tool

If you submit the FAFSA before your taxes are filed or you use estimated data, you WILL need to go back and update the FAFSA after taxes are filed

[If you do not use the IRS Data Retrieval Tool, you will need to supply a tax transcript from the IRS]

IRS DATA RETRIEVAL TOOL

Some will be unable to use IRS DRT

Examples include:

Filed an amended tax return

No SSN was entered

Student or parent married but filed separately

Recently filed your 2013 Taxes

FREQUENT FAFSA ERRORS

Social Security Numbers

Divorced/remarried parental information

Income earned by parents/stepparents

Untaxed income

U.S. income taxes paid

Household size

Number of household members in college

Real estate and investment net worth

AM I DEPENDENT OR INDEPENDENT? Born before January 1, 1991

Enrolled in a graduate program

Married

Veteran of the U.S. Armed Forces or currently serving on Active duty in the US Armed Forces for purposes other than training

Has child(ren)/dependents for whom he/she provides more than half support

Both parents are deceased

Is/was an orphan, ward of the court or in foster care at any time since student turned age 13

Is/was an emancipated minor as determined by a court in state of legal residence

Is/was under legal guardianship until age18, as determined by a court in state of legal residence

Is/was an unaccompanied youth who was homeless or at risk of being homeless

Most high school students will not be independent but, in extraordinary circumstances, the college aid administrator can override dependency.

Contact the college aid office for help.

Beginning with the 2014-2015 FAFSA, dependent students will be required to include on the FAFSA income and other information from the dependent student’s legal parents (biological or adoptive)

regardless of the parents’ marital status or

gender, if those parents live together

Dependent Students…

DEPENDENT STUDENTS…WHICH PARENT FILES?

If the parents are bothliving and married to each other, orliving together but NOT married

answer the questions about both parents.

If the parent is widowed or single, answer the questions about that parent only.

If the parents have divorced or separated: Where does the student live the most? If exactly equal time, who provides most support?

NOT: * who claims student on taxes

* who will result in highest eligibility

If this parent has remarried as of today, answer the questions about both that parent and the person to whom the parent is married (ie... Step parent)

WHO IS NOT THE PARENTWHEN COMPLETING THE FAFSA

Grandparents

Legal Guardians

Foster Parents

Aunts/Uncles

Older Siblings

–Unless the student was legally adopted prior to age 13

FAFSA HOUSEHOLD QUESTION 73

Siblings of dependent student are included in the parents’ household if:

Parent will provide more than 50% of support for sibling during award yearORSibling would be dependent if filed FAFSA

Foster children are not in the household and

foster payments are not income

WHAT’S NEXT???

Student Aid Report

Making corrections

Completing the file

Determining need

Award Letters

FAFSA RESULTS NOTIFICATION

If FAFSA filed on line and student did not provide an e-mail address student will receive a SAR acknowledgement

If paper FAFSA or FAFSA filed on line and student provided an e-mail address, student will receive an email notification containing a direct link to the student’s SAR on line.

STUDENT AID REPORT (SAR)

The SAR summarizes the data provided on the FAFSA as well as the federal calculations.

Indicates how much Federal Pell Grant they maybe able to receive

Displays the official EFC [expected family contribution]

Only last 4 digits of parent’s SSN will display on paper and electronic SARs.

Submit to college only if requested.

MAKING CORRECTIONS ON THE WEBAvailable regardless if original application was paper or electronic.

Student’s PIN required to access.

Parents must have PIN to correct parent information.

Pop-up message will appear when student tries to correct transaction already corrected by a school.

COMPLETING THE FILE

Financial Aid Office may request

Verification worksheets with documentation

Tax transcript from the

Other……….

DETERMINING NEED:

Your School’s estimated

Cost of Attendance• Tuition and fees• Room and board• Books, personal and travel expenses

- Expected Family Contribution

= Financial Need

CALCULATING FINANCIAL NEED

[EXAMPLE BASED ON 2013-14 FIGURES]

Cost of Attendance WMU(Fall & Spring) FA Award with $0 EFC FA Award with $3600 EFC FA Award with $7000 EFCTuition and fees $10,942 $10,942 $10,942Room and Board $8,582 $8,582 $8,582 Books and supplies, Personal, Travel $3,208 $3,208 $3,208 Estimated Financial Contribution (subtract) $0 ($3,600) ($7,000) Total Financial Need $22,732 $19,132 $15,732

Potential AwardsPell $5,546 $2,000 $0 SEOG $2,000 $200 $0 WS $2,000 $2,000 $0 Perkins $2000 $0 $0 Subsidized Loan $3,500 $3,500 $3500 Unsubsidized Loan $2,000 $2,000 $2000 Total Estimated Award $17,145 $9,700 $5,500

Remaining Need Total Cost of Attendance $22,732 $22,732 $22,732Total Estimated Award (subtract) $17,145 $9,700 $ 5,500 Remaining Need $5,587 $13,032 $17,232

AWARD LETTERS

Colleges will mail/email an Award Letter to the student, stating offered financial aid

Please read important information enclosed with Award Letter

Instructions for accepting awardsHow awards will be disbursed

SPECIAL CIRCUMSTANCES

Change in employment status

Medical expenses not covered by insurance

Change in parent marital status

Unusual dependent care expenses

MICHIGAN FINANCIAL AID PROGRAMS•Deadline is March 1, 2014

•Michigan Competitive Scholarship

•Michigan Tuition Grant (private schools only)

•Tuition Incentive Program (TIP)

www.Michigan.gov/osgosg@michigan.gov

1-888-4-GRANTS (888-447-2687)

ADDITIONAL FINANCIAL AID

College ScholarshipsFreshman ScholarshipsDepartment Scholarships

Private donorsParents’ employersCommunity organizations www.fastweb.com

DON’T GET HOOKED BY MISLEADING SCHOLARSHIP OFFERS

‘College aid offers’ are everywhere

InternetMailNewspapersMagazinesTelephone

NET PRICE CALCULATOR

All schools are required to have a “Net Price Calculator” on their web sites

The Net Price Calculator allows students to calculate how much they will pay (approximately) at the school

School supplies info on cost and general gift aid for students in the family’s income rangeCost minus gift aid equals “Net Price”The family can then compare net price for the school(s) they are considering

MI COLLEGE GOAL- SUNDAY, FEBRUARY 9, 2014WWW.MICOLLEGEGOAL.ORG

STUDENTS!

Additional Resources:

www.studentaid.gov/fafsa/filling-out

www.studentaid.gov/fafsa/next-steps 

www.finaid.org

www.ed.gov

www.facebook.com/federalstudentaid

QUESTIONS?

Contact your Financial Aid Office