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What You Need to Know
2016-2017
THE FINANCIAL AID PROCESS
Questions you should be asking??
• What is Financial Aid?• How to apply for financial aid?• How is financial need
determined?• Are there other resources to
cover educational expenses?
What is Financial Aid?
What is Financial Aid?
Financial aid refers to funding intended to help students pay education expenses including tuition, fees, room, board, books and supplies.
Sources of Financial Aid
• Federal Government • State Government• College/Institutional Aid• Outside/Private Sources
Types of Financial Aid
• Scholarships• Grants• Loans• Federal Work Study
Federal Loan Programs
• Direct Subsidized Loan 4.29% (1516)
• Direct Unsubsized Loan 4.29% (1516)
• Federal Perkins Loan ended 9/30/15• Federal Plus Loan 6.84% (1516)
Note: Direct Loan annual limits are determined by student’s class level and dependency status; FR-$5,500, SO-$6,500, JR/SR-$7,500 for dependent students
Federal Work-Study
• Need-based employment program providing on and off-campus jobs to undergraduate and graduate students
• Compensation is at least the current federal minimum wage
• Student is paid by the college• The availability of funds is limited; Financial
Aid Offices may establish priority deadlines*FAFSA completion required
How to Apply for Financial Aid?
How to Apply for Financial Aid?
• FAFSA (Free Application for Federal Student Aid)—You may be asked to submit tax documentation to the financial aid office to complete the verification process
• Institutional Forms• OtherNote: Communicate with each college to inquire about
steps to complete the application process
Free Application for Federal Student Aid (FAFSA) for 2016-17
New for 2017-18 Academic Year
Completing the FAFSAWhat information is needed?
• Social Security Number: Be sure that it is correct!
• Records of income: such as income earned from work and business, child support paid or received, and any other untaxed income. If available, refer to the W-2 Forms and the Federal Income Tax Return IRS 1040, 1040A, or 1040EZ.
• Information about assets: such as savings, certificates of deposit, stock options, bonds, 529 plans and other college savings programs, and investment real estate, business, and farm.
• Driver’s license number, if the student has one.
• Alien Registration Number, if not a U.S. citizen.
• Federal School Code: Millikin University - 001724Notes:
• A student must report his or her income and assets and those of the parents (if a dependent student) or spouse (if married).
• Use income records for the year prior to the academic year for which a student is applying: for instance, if filling the 2014-2015 FAFSA, refer to 2013 tax information.
FSA ID Replaced Personal Identification Number (PIN) in May 2015•The new FSA ID is comprised of a user-selected username and password, that replaced the Federal Student Aid PIN as the process by which students, parents, and borrowers authenticate their identity to access their federal student aid information. •The FSA ID offers new functionality, including a single sign-on process for most of the Federal systems.•This change was made to eliminate the need for individuals to enter personal identifiers (Social Security number, name, and date of birth) when accessing Federal Student Aid's systems. This change is critical to comply with new security requirements and industry best practices.
Whose information goes on the FAFSA?The FAFSA should be filed under the student’s name. Financial information will be requested for the student and the parent or parents of dependent students. •If your parent is widowed or single, answer the questions about that parent•If the parent you live with is remarried, answer the questions about that parent and stepparent •If your parents are unmarried but live together, answer the questions about both parents•If your parents are divorced or separated, answer the questions about the parent you lived with over 50 percent of the time or the parent who provided more financial support during the past 12 months
Dependency StatusIndependent students fit into at least one of the following categories:•Born before January 1, 1993 •Married•Graduate or Professional student•Veteran or currently serving on active duty other than for training purposes•Have legal dependents other than a spouse, for whom more than 50% of the support is provided through June 30, 2017•Orphan, ward of the court, or in foster care when student was 13 or older •Emancipated minor or in legal guardianship as determined by a court in the state of legal residence•Unaccompanied youth who was homeless or self-supporting and at risk of being homeless*Dependent Students must report personal and parent income and assets
IRS Data Retrieval
• While completing the FAFSA online, applicant may submit real-time request to IRS for tax data
• IRS will authenticate taxpayer’s identity• If match found, IRS sends real-time
results to applicant in new window• Applicant chooses whether or not to
transfer data
IRS Data Retrieval
• Could reduce documents requested by financial aid office
• Not available to applicants with recent change in marital status
• Not available to applicants who have submitted an amended return or who file married filing separately
Common Errors
• Providing incomplete data• Not submitting required forms by
deadlines• Divorce/Remarried parent information• Untaxed income and tax deferred
pensions• Income Tax PaidReview Student Aid Report (SAR) to avoid!!
How is Financial Need Determined?
Expected Family Contribution
A need analysis formula established by Congress determines the student’s Expected Family Contribution (EFC); using information reported on the FAFSA.
What are the Costs?
Tuition & Fees (actual or direct) Room & Board (actual or direct) Transportation Books & Supplies+ Miscellaneous Cost of Attendance (COA)
To Determine Financial Need
Cost of Attendance (COA)
-Expected Family Contribution (EFC)
Financial NeedFinancial Need
Compare Apples to Apples
Actual or Direct Costs
-Financial Aid Offered by Institution
Your Out of Pocket ExpenseYour Out of Pocket Expense
Comparison Continued…
Each school will prepare a financial package to help you meet your financial need. •Never assume you can’t receive some type of financial aid because of your income level•Don’t become overwhelmed by college cost, it may not be what it seems•Consider: private vs. public, in-state vs. out-of-state, community collegeNote: More often then not, the financial aid you receive may not cover all of your educational expenses, so be prepared
Are there other resources to cover educational expenses?
Other ways to pay for college
• 529 Savings & Prepaid Tuition Programs
• Employer Tuition Benefits• Tuition Payment Plans• Private/Outside Scholarships• Veterans Benefits/Transfer of
Entitlement
Financial Aid Resources
Illinois Student Assistance Commission (ISAC) – www.collegeillinois.org (800) 899-ISAC (4722)
U.S. Department of Education (ED) -www.FederalStudentAid.ed.gov (800) 4FED AID
Steps to Remember
1. Start planning for the future2. Complete the application process early3. Review and edit the Student Aid Report
(SAR)
4. Consider award letters5. Respond to college offers6. Advise school(s) of outside scholarships7. Advise school(s) of Special Circumstances8. Renew the FAFSA every year!
