Financial Aid 2015-2016

Tonight’s Agenda: Introduction of our Guest Presenters Scholarships: Free Money CASD Foundation Angela Lynch Applying for Federal & State Aid Penn State Mont Alto, Antonia Spedden Shippensburg University, Rachel Richards Wilson College, Chris Knouse What Happens Next? SAR & EFC Financial Need and Packaging Comparing schools/financial award packages

SCHOLARSHIPS: CASD Foundation The BEST money students can use to help pay for college is FREE money! SCHOLARSHIPS: CASD Foundation

The Purpose of the FAFSA® The FAFSA® (Free Application for Federal Student Aid) is a federal form used to determine student eligibility for the following: Federal programs Pell Grants, campus-based aid and student loans State programs Pennsylvania State Grant, State Work-Study and other special programs School programs Need-based grants and scholarships

FAFSA.gov Create your FSA ID prior to completing your FAFSA *Students and parents need a FSA ID. **File the FAFSA every year the student will be enrolled in postsecondary education.

Federal Student Aid ID (FSA ID) Replaces the PIN Allows students and parents to sign the FAFSA electronically Student needs a FSA ID One parent of a dependent student needs a FSA ID Student and parent must have a unique email address Only the owner of the FSA ID should create the account

Where Can I Use My FSA ID? Electronically sign your FAFSA Import tax information from the IRS Access renewal FAFSA Make online corrections to FAFSA View or print a copy of the SAR View history of federal student aid received Complete entrance or exit counseling Electronically sign a Master Promissory Note Complete a PLUS Loan request Estimate student loan repayments using the Repayment Estimator Apply for Income-Driven Repayment plan and loan consolidation Sign agreement to serve for TEACH Grant

Benefits to Applying Online Filing the FAFSA electronically is the best way to apply. There are many benefits for online filers: Online help Built-in edits Built-in “skip logic” IRS Data Retrieval Tool (DRT) Link to the State Grant Form (SGF)

Getting Started on your FAFSA https://www.youtube.com/watch?v=r0JW6lZr210&noredirect=1 Getting Started on your FAFSA

When to Apply Students should apply beginning January 1 of their senior year. Deadlines vary from school to school; many are earlier than the May 1 deadline for the PA State Grant. Students must determine the earliest applicable deadline. Students need not be accepted for admission. Students may list up to 10 schools on the initial online FAFSA and add or delete schools later. Postsecondary schools will not see other schools listed, just their own. Families can file estimated income information and update it later using the IRS Data Retrieval Tool (DRT).

Documents Needed Applicants may need the following items to file the FAFSA: Social Security Number Driver’s license (student only; this information is optional) Federal income tax returns (1040, 1040A or 1040EZ) W-2 forms from all employers Current bank statements (checking and savings) Current business and farm records Records of any stocks, bonds & other investments, including 529 accounts Additional untaxed income tax records may be needed such as: Veterans non-education benefits, child support paid/received and workers’ compensation. Alien registration or permanent resident card (if not a U.S. citizen)

IRS Data Retrieval Tool (DRT) The IRS DRT allows students and parents to access IRS tax return information needed to complete the FAFSA. Students and parents may transfer the data directly into their FAFSA. IRS data is available for families to use: After 2 weeks of electronically filing federal tax return After 8 weeks of filing a paper federal tax return If estimated income is used to complete the FAFSA, students/parents can go back once taxes are filed and use the IRS DRT.

IRS Data Retrieval Tool

Verification The most common items are AGI, taxes paid, untaxed income, household size, and the number in college. Families that are not using the IRS DRT have a greater chance of being selected for verification. If selected, an IRS tax transcript may be required. A copy of an IRS Federal Tax return will not be acceptable. A transcript can be obtained by mail using IRS Form 4506-t (Request for Transcript of Tax Return).

Who’s my parent when I fill out the FAFSA. Visit studentaid. ed Who’s my parent when I fill out the FAFSA? Visit studentaid.ed.gov/sa/resources These people are not your parents unless they have legally adopted you.

Parental Income and Assets Allowances are made for federal, state, local, and social security taxes, working parent households, and a standard living allowance based on family size. An asset protection allowance, based on the age of the older parent, is applied against the net worth of reported parental assets. Value of primary residence, qualified retirement accounts and life insurance policies are NOT reported. No provisions for personal debt

Student Income and Assets Allowances are made for federal, state, local, and social security taxes. Income protection allowance of $6,400 for 2016 –17 is applied and the remaining amount is assessed at 50%. Dependent students must report assets in their name. Student assets are assessed at 20%.

Overview of the FAFSA Use correct Social Security Numbers www.FAFSA.gov NEVER pay to complete your FAFSA! Select correct year’s FAFSA: 2016-2017 Use correct Social Security Numbers Use previous year’s income: 2015 Be consistent with information Parents and students each have their own section

Income Questions Tips

Asset Question Tips Assets are reported as of the date the application is filed. Some families do not have their assets included in the EFC. 529 Plans are reported as parental assets. Do not report the value of retirement funds, life insurance policy or the home in which you live. Do not report the value of a family business, if it employs less than 100 full-time employees. Do not report the value of a family farm, if the family lives on the farm. Asset Value = Current Market Value – Current Debt

Other Ways to Sign the FAFSA FAFSA On the Web (FOTW) If a student or parent chooses not to sign with their FSA ID, they should print, sign and mail the signature page, as instructed. Paper FAFSA or PDF The document must be signed and mailed (a copy should be kept). Unable to get a parent signature – school counselor or FAO may sign in place of the parent(s) Parent(s) are determined physically or mentally incapable of signing Parents are not currently in the U.S. and cannot be contacted by normal means Current address of the parent(s) is unknown

Student Aid Report (SAR) Applicants will receive a SAR after the FAFSA is processed: If a completed online or paper application and a valid email address is provided, student receives an email notification to retrieve Without a valid email address, notification is received by regular mail REMEMBER: This is the document you may be required to submit with scholarship applications!

Expected Family Contribution (EFC) A number calculated based on a federal formula Remains the same no matter which school the student attends Primarily income-driven Major factors for dependent student: Parental income & assets Student income & assets Family size and number of family members in college Age of older parent

Subsidized Student Loans Funded by US Department of Education Based on “need” Accrues NO INTEREST while in school Payment plan begins 6 months after graduation (or dropping below half time or not returning)

Unsubsidized Student Loans Funded by US Department of Education NOT based on “need” – any student may qualify Interest accrues for life of loan from first disbursement Current Interest Rate: 4.29% Payment begins 6 months after graduation (or dropping below half time or not returning)

Undergraduate Loan Limits Undergraduate Loan Limits for Dependent Students: Aggregate borrowing limit is $31,000. Dependent students (excluding students whose parents cannot borrow PLUS Base student loan amount (subsidized unsubsidized) Additional unsubsidized student loan amount Freshmen $3,500 $2,000 Sophomores $4,500 Juniors, Seniors $5,500

Independent Loan Limits Independent students & dependent students whose parents cannot borrow a PLUS Loan: Aggregate borrowing limit is $57,500 for undergraduates. Aggregate borrowing limit is $138,500 for graduates. Independent student AND students whose parents cannot borrow PLUS Base student loan amount (subsidized unsubsidized) Additional unsubsidized student loan amounts Freshmen $3,500 $6,000 Sophomores $4,500 Juniors, Seniors $5,500 $7,000 Graduate or Professional $0 $20,500

Direct PLUS Loan Loans available to biological or adoptive parents of dependent students Credit check required, however, no debt-to-income check. If credit check passes, loan is approved. No annual or aggregate limit to the amount a parent may borrow. The limiting factor is cost minus financial aid received equals the amount that can be borrowed. Repayment begins once loan is fully disbursed. Parents do have the option to defer payments.

StudentLoans.gov

FAFSA Confirmation Page

PA State Grant Form (SGF) In addition to the FAFSA, first-time applicants must also complete the SGF. Three ways to access SGF: The link from FAFSA confirmation page Through Account Access at PHEAA.org (24-48 hours after completing the FAFSA) Complete a paper Status Notice if the student did not use the link on the confirmation page or provide a valid email address All three options require submission of a paper signature page.

SGF Through Account Access Create a student account in Account Access.

State Programs

State Grant Eligibility Requirements Domicile High School Graduation Academic Progress Enrollment Maximum Number of Grants Program of Study Undergraduate Enrollment Satisfactory Character Loan Default

2016-17 Filing Deadlines May 1, 2016 August 1, 2016 All renewal applicants New applicants who plan to enroll in a degree program New applicants enrolling in a college transferable programs August 1, 2016 Non-renewal applicants enrolling in: Business, Trade or Technical school Hospital School of Nursing Community College Open Admission Colleges 2-year programs that are not transferable

PHEAA State Grant Form Complete the questions on each page of the PHEAA site MUST PRINT THE FORM WHEN COMPLETE BOTH Student and Parents must SIGN and MAIL the form back to PHEAA If you do this in year one and the FAFSA continues to be filed with the same parent each year, you will NOT need to complete the State Grant Form again.

Pennsylvania PHEAA-Approved Schools 2015-16 State Grant Awards Pennsylvania PHEAA-Approved Schools Costs Maximum Awards Minimum Awards $0 - $12,000 $2,308 $500 $12,001 - $19,000 $3,692 $19,001 - $29,000 $3,970 $29,001 - $32,000 $4,340

2015-16 Out-of-State Awards Reciprocal States Type of State Minimum Awards Maximum Awards Non-Veteran Veteran Reciprocal States $500 $554 $739 Unique Programs of Study Reciprocal States Delaware Ohio West Virginia District of Columbia Massachusetts Vermont Special approval has been granted to a limited number of institutions or programs on the basis that they offer education and training in a unique field not offered in PA or a reciprocal state

Financial Need and Award Packaging

COA – EFC = Financial Need Need Analysis Need Analysis has two components: Cost of Attendance (COA) Expected Family Contribution (EFC) COA – EFC = Financial Need

Cost of Attendance Cost of Attendance (COA) includes the following: Tuition and fees Room and board Books and supplies Transportation expenses Miscellaneous personal expenses

Cost of Attendance The school has the discretion to add other expenses: Child care Special equipment purchase Adjust other costs on a case-by-case basis Costs vary greatly Compare the same costs at all schools Distinguish between: Direct costs Indirect costs

Packaging The process by which schools make financial aid awards and meet financial need Schools can set their own parameters, application processes and application deadline Can calculate their own EFC for institutional aid Types of aid in the award package: Federal and state grants Employment (Federal Work-Study and institutional employment) Institutional grants and scholarships (need and merit-based) Student loans PLUS Loans

Financial Aid Award Letter Presented by the school and typically includes: Cost of Attendance (COA) Types and amounts of financial aid offered Conditions that are placed on the awards Steps the student must take to accept the package Student’s rights and responsibilities Renewal, revision and appeal processes Policy on Satisfactory Academic Progress

School A School B School C Cost of Attendance $15,000 $25,000 $35,000 - Federal EFC $ 2,000 = Financial Need $13,000 $23,000 $33,000 Federal Pell Grant $ 3,825 PA State Grant $ 3,414 $ 3,670 $ 4,011 Federal SEOG $ 0 $ 500 $ 1,500 Institutional Grant $ 2,500 $ 8,000 Private Scholarship Federal Work-Study $ 3,000 Direct Sub Loan $ 3,500 Direct Unsub Loan Total Aid $14,739 $19,495 $ 26,336 GAP (Cost – Aid) $ 261 $ 5,505 $ 8,664 GAP (Cost – Aid)

Cost – Free Money = Actual Contribution School A School B School C Cost $15,000 $25,000 $35,000 Pell Grant $ 3,825 State Grant $ 3,414 $ 3,670 $ 4,011 Institutional Aid $ 0 $ 2,500 $ 8,000 FSEOG $ 500 $ 1,500 Private Scholarship Total Free Money $ 7,739 $ 10,995 $ 17,836 Actual Contribution $ 7,261 $ 14,005 $ 17,164

Reviewing the Financial Aid Package How much of the financial aid is gift aid, and how much is not? Which awards are based on need, and which are based on merit? Are there any conditions on the gift aid; in particular, is there a GPA requirement? Can the student expect their awards to change from year to year? Will institutional awards increase as tuition increases? Will free money convert to borrowed money as borrowing capacity increases? How many years can the funds be received?

Reviewing the Financial Aid Package What happens to their award package if the student changes their major? How many hours per week must the student work to earn their work-study award? What is the hiring process at the school for the work-study award? How much is the family expected to borrow? How will outside scholarships affect the award package? If loans are listed in the award, which amounts are subsidized or unsubsidized?  

How do I pay for college? FEDERAL & STATE MONEY FREE MONEY This is MONEY you MAY or MAY NOT have to pay back! GRANTS = FREE MONEY LOANS = PAY BACK Complete the FAFSA Federal PELL Grant Federal Supplemental Educational Opportunity Grant Federal Work Study Positions Subsidized & Unsubsidized Loans Parent PLUS Loans Complete the State Grant Form PHEAA State Grant Other funding available based on qualifying need FREE MONEY This is MONEY you DON’T have to pay back! Scholarships Grants PRIVATE SOURCES This is MONEY you WILL have to pay back with interest! Banks Credit Unions

Need HELP??? FAFSA Completion Events: Wilson College Tuesday January 19th 2016 Tuesday March 15th 2016 Individual Appointments with Ellen Petley, CASHS College Advisor Sign-up available in the CASHS lobby TONIGHT following the presentation Contact your FAO Financial aid offices are willing to help! Call to request an appointment at your school of choice.

Thank-you for coming! Our Financial Aid Experts, Private Loan Representatives, & Scholarship Guests will be available in the lobby to answer questions.