Barbara Miller AVP, Financial Aid Stevenson University

 Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses  Financial aid is intended to supplement, not replace, the financial resources of the family  The federal government believes parents have the primary responsibility to pay for the child’s education; but students also share some responsibility as well

 Scholarships – ‘gift aid’ – awarded on basis of merit, skill, talent, etc.  Grants – ‘gift aid’ – awarded usually on basis on financial need  Loans – ‘ self-help aid;’ students and parents  Employment – ‘self-help aid’

 Money students and parents borrow to help pay college expenses  Repayment usually begins after education is finished  Limited amounts to borrow  Only borrow what is really needed  Look at loans as an investment in the future

 Allows student to earn money to help pay educational costs  A paycheck for hours worked; or  Nonmonetary compensation, such as room and board  Student may opt whether or not to work or number of hours to work  Jobs on- and off-campus; Community Service  FWS and Institutional work programs

 Federal government (loans and grants) – largest source of financial aid  Institutions (Scholarships and grants/Donors, Advancement Office, Employment, Internships) – merit and/or need; use FAFSA and may have institutional application – be aware of requirements and deadlines  States (merit and need; residency requirements) – use FAFSA and/or state aid applications  Private sources (Civic organizations, places of worship, employers, etc) * You can reduce the cost by piecing together aid from all sources.

 Largest source of financial aid  Aid awarded primarily on the basis of financial need  Must apply each year using the FAFSA

 Award aid on the basis of both merit and need  Aid may be gift aid or self-help aid  Use information from the FAFSA and/or institutional applications  Deadlines and application requirements vary by institution  Check with each college or university

 Residency requirements usually apply  Award aid on the basis of both merit and need  Use information from the FAFSA and/or state aid applications  Deadlines vary by state

 Foundations, businesses, charitable organizations  Deadlines and application procedures vary widely  Begin researching private aid sources early  Deadlines and application procedures vary widely  Check with HS Guidance Office

 Research what is available in community  To what organizations and churches do student and family belong?  Application process usually occurs during spring of senior year  Small scholarships add up!

 Companies may have scholarships available to the children of employees  Companies may have educational benefits for their employees

 A form that collects demographic and financial information about the student and family  Used by every college in the country and every student applying for aid  Some colleges require additional forms  List all colleges on FAFSA  Information used to calculate the Expected Family Contribution or EFC - The amount of money a student and his/her family may reasonably be expected to contribute towards the cost of the student’s education for an academic year  Colleges use EFC to award financial aid  FAFSA is completed annually!!

Web site: FAFSA on the Web available on January 1, 2016.* (For high school students, only seniors apply) Most colleges set FAFSA filing deadlines – so whichever school has the earliest deadline – that becomes your deadline. Use estimated info if applicable *Big changes in timing starting next year!

Good reasons to file electronically:  Built-in edits to prevent costly errors  Skip-logic allows student and/or parent to skip unnecessary questions  More timely submission of original application and any necessary corrections  More detailed instructions and “help” for common questions  Ability to check application status on-line  Simplified application process in the future  Option to use IRS data retrieval to import Tax data

 While completing FAFSA, applicant may submit real- time request to IRS for tax data  IRS will authenticate taxpayer’s identity  If match is found, IRS sends real-time results to applicant in a new browser window  Applicant chooses whether to transfer data  Participation is voluntary  Reduces documents requested by Financial Aid Office  Available early February 2016 for processing cycle  Some will be unable to use IRS DRT: Filed an amended tax return No SSN was entered Student or parent married but filed separately

indexhtm  Sign FAFSA electronically  Not required, but speeds processing  May be used by students and parents throughout aid process, including subsequent school year  Only the owner should create a FSA ID  Made of username and password

Section 1: Demographic info Section 2: Student’s Dependency Status Section 3: Parent(s) Definition and Info Section 4: Data for student (and spouse) Additional Info and Signatures: Required – student and one parent College and housing info

 Social Security Numbers  Using the wrong name – legal name  Entering the wrong address – not temporary  Incorrectly listing parents’ marital status  Income earned by parents/stepparents  Untaxed income  U.S. income taxes paid  Incorrectly filing income taxes as head of household  Forgetting to round numbers  Household size – forgetting to count student  Forgetting to sign and date the FAFSA

 Central Processing System (CPS) notifies student of FAFSA results – paper/  Student with FSA ID may view SAR on-line at  Review data for accuracy and update estimated information/make corrections  College reviews ISIR data -may request additional documentation - Verification

 Direct costs  Indirect costs  Direct and indirect costs combined into cost of attendance/budget  Varies widely from college to college

 Data from FAFSA calculated to determine the amount of money the family can reasonably contribute or will be expected to pay toward education  The contribution is determined by a standard formula that assesses a family’s ability to pay  Financial aid assessment is NOT a cash flow analysis but rather an evaluation of an individual family’s economic strength  Sacrifice is assumed  Willingness to pay is not a factor  Two components ◦ Parent contribution ◦ Student contribution

Cost of Attendance – Expected Family Contribution = Financial Need* *Be aware that demonstrated need may not be met 100%; even with 0 EFC.

 Cannot report on FAFSA  Send explanation/documentation for financial aid office at each college  College will review appeal and may ask for additional information  Possible situations to warrant appeal Change in employment status Medical expenses not covered by insurance Change in parent marital status Student cannot obtain parent information

Programs are classified in the following categories:  Need-based aid programs  Legislative programs – Senatorial/Delegate  Merit-based programs  Career and Occupational programs  Unique Population programs - Senatorial and Delegate scholarships may be used at an out-of- state institution if the student’s academic program is not offered at a Maryland institution  On FAFSA, include one Maryland school – if any possibility of attending

 Combination of the different types of aid that fit your educational situation and your eligibility (paper or electronic)  Follow whatever directions are attached to your aid offer  Be aware of all deadlines for awards  Compare award notifications – Look for the best offer for your family, not just the largest amount!  Sample = Stevenson University

 ‘Do not rule out any college or university that is academically feasible early in the application process – until you know the ‘bottom line’ for costs to you.’

 Barbara L. Miller      Like us on Facebook:  Follow us on  Thanks for inviting me!  Good Luck