Topics to discuss What is financial aid? Cost of Attendance Expected Family Contribution Financial Need Sources of Financial Aid Free Application for Federal Student Aid (FAFSA) Timelines Special Circumstances

What is financial aid? Financial aid consists of funds provided to students and families to help pay for postsecondary education expenses.

fafsa Free Application for Federal Student Aid

fafsa A standard form that collects demographic and financial information about the student and family May be filed electronically or using paper form Available in English and Spanish May be filed at any time during an academic year, but no earlier than the October 1st of the prior-prior year For the 2017-2018 academic year, the FAFSA may be filed beginning October 1st, 2016 MUST FILE FAFSA EVERY YEAR

WWW.FAFSA.ED.GOV

IRS DATA RETREIVAL TOOL While completing FOTW, 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 browser window Applicant chooses whether or not to transfer data to FOTW Reduces documents requested by financial aid office Some will be unable to use IRS DRT Examples include: Filed an amended tax return No Social Security Number (SSN) was entered Student or parent married but filed separately

FEDERAL STUDENT AID ID (fsa id) www.fsaid.ed.gov Obtain an FSA ID for: Student Parent Electronically sign the FAFSA Electronically sign other federal documents (loan information etc)

Other fAFSA topics of discussion Dependency Status School selection Selective Service Parent Marital Status Household Size Making Corrections Verification

Cost of Attendance

Cost of attendance (COA) Direct Costs Tuition Fees Room Board Books (at TMC) Indirect Costs Transportation Personal Expenses Direct and indirect costs combined into cost of attendance Varies widely from college to college

Expected Family Contribution EFC

Expected family contribution (EFC) Amount family can reasonable be expected to contribute Stays the same regardless of college Two components Parent contribution Student contribution Calculated using data from the FAFSA The EFC itself CANNOT be changed by the student, parent or financial aid administrator If subsequent information on the FAFSA is changed (due to error or other circumstances), the EFC has the potential to change

What is financial need? Cost of Attendance - Expected Family Contribution = Financial Need

Types of financial aid Need based aid vs. non-need based aid Awarded on an academic year basis

categories Need-based aid Non-need based aid Federal Grants State Grants Some Scholarships Some loans Some Student Employment (work study) Loans Some Student Employment Scholarships

Types of Financial aid Scholarships Grants Loans Employment Gift Aid Self-Help Aid

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

grants Money that does not have to be paid back Gift Aid Money that does not have to be paid back Usually awarded on the basis of financial need Pell Grant Institutional Grants State Grants

Federal grant programs Federal Pell Grant Iraq and Afghanistan Service Grant (IASG) Teacher Education Assistance for College and Higher Education (TEACH) Grant Federal Supplemental Educational Opportunity Grant (FSEOG)

Only available for Kentucky residents attending a college in Kentucky Must complete the FAFSA to determine eligibility Awarded on a first-come, first served basis (bases on FAFSA Filing Date (funds usually exhausted first two months FAFSA is available) Kentucky Tuition Grant (KTG) $3,000 for the 2016-17 year Only available at private colleges College Access Program (CAP $1,900 for 2016-17 year Must be PELL (federal) Grant eligible to receive Kentucky State Grants

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

Federal loan programs William D. Ford Direct Loan Program Federal Stafford Loan Subsidized (need-based): interest does not accrue while student is in school, fixed interest rate of 4.29% for 2015-16 Unsubsidized (non need-based): interest accrues while student is in school at fixed rate of 4.29% for 2015-16 Federal PLUS Loan – 6.84% for 2015-16 Parent can borrow up to Cost of Attendance, less all other financial aid If denied, student can receive up to $4,000 more per year in Stafford unsubsidized loan funds. **Interest rates on Stafford and PLUS loans are pegged to market rates each year in June, which take effect July 1 for the upcoming award year.

Self help aid: student employment Allows student to earn money to help pay educational costs A paycheck; or Nonmonetary compensation, such as room and board Student may opt whether or not to work or number of hours to work

Special circumstances

Cannot be documented using FAFSA Send written explanation and documentation to financial aid office at each college College will review and request additional information if necessary Decisions are final and cannot be appealed to U.S. Department of Education Change in employment status Unusual medical expenses not covered by insurance Change in parent marital status Unusual dependent care expenses Student cannot obtain parental information

Financial aid process Complete FAFSA (Oct 1st) FAFSA electronically sent to schools Any documents needed by the school? Student Receives Financial Aid Package Student Accepts aid Does student/parent want to borrow loans? If so, complete required loan documents (using FSA ID) Aid disburses to students bill (usually on semester basis)