Financial Aid Navigating James Hammar Assistant Director of Admissions and Financial Aid

Agenda What has changed? What hasn’t FAFSA Details Special Circumstances Your Questions

What has changed? Starting this year, parents and students will use the prior-prior tax year data to file the FAFSA Previously, parents and students used the most-recent tax year data to file the FAFSA 2015 FEDERAL TAXES 2016 FEDERAL TAXES 2017-18 FAFSA

What has changed? This means… Everyone can file earlier. 2017-18 FAFSA will be available Oct. 1, 2016 Everyone should be able to file with actual tax data. No more estimates! And most everyone can and should use the IRS data retrieval to import tax data.

What hasn’t changed? The priority of your applications is the same College applications FAFSA CSS Profile (if required) College scholarship applications External scholarship applications Deadlines are still important and it best to apply early!

Reasons to apply early Less waiting for decisions Additional scholarships. You could miss out. Chances of admission may decrease Aid offered by colleges may decrease More time for the rest of process

Do your research Visit each campus Meet with a financial aid counselor Think about what really concerns you and ask us Use a net price calculator to get more out of your visit

Net Price Calculators Estimates your EFC based on a few questions Estimates aid from the school and government sources Compares cost and aid to provide “net price” Useful planning tool but estimates are only as good as data provided

Other tips for … Seniors Juniors Finish applications and BRAG! Visit each campus Make college and scholarships part of every conversation you have with an adult Sign up for ACT/SAT Request recommendations early Start your scholarship search now. Use seniors as a resource.

Outside Scholarships Most scholarships for high school seniors have deadlines in Jan. – April Start locally, think globally Never pay for services that “guarantee” they will find you scholarships Set realistic goals and stick to them

Other Scholarship Tips If students choose to use online scholarship searches, they should: Only use free searches Answer optional questions – this will increase number of results Set up a free email account (i.e. Gmail, Hotmail, etc.) to use exclusively for scholarship searches Never provide a social security number or credit card number

$0 25 Free Application for Federal Student Aid Universal application 99% of students file online Students must re-apply each year Determines Expected Family Contribution (EFC) Regardless of EFC, all students are awarded financial aid $0 25

Other FAFSA Tips Both the student and one parent need an FSA ID to sign the FAFSA electronically. Parents: Do not create your student’s FSA ID using your email Students: Do not create your parent’s FSA ID using your email Use the IRS Data Retrieval Tool and do not make changes to the imported information

Look up federal school codes fafsa.gov Create your FSA ID Fill Out Your FAFSA Look up federal school codes Print a Paper FAFSA

Why every student should file a FAFSA Required to participate in federal loan programs Colleges simply cannot provide a student with a complete picture of the aid available to help pay educational expenses without a FAFSA. Colleges focus resources on students who file the FAFSA because these students are perceived to be actively seeking assistance. Every school may use this information differently With financial aid, the only thing that is guaranteed is that you will get nothing if you don’t apply!

Reporting Assets on FAFSA Protected Assets Your home Retirement Accounts Value of Life Insurance Unprotected Assets Investment real estate Trust funds Money market funds Mutual funds Certificates of deposit Stocks and bonds 529 College savings plans Business value (if you employ 100+ people) Only “unprotected” assets must be reported on the FAFSA

How is financial need determined? Cost of Attendance (Variable) EFC (Constant) Financial Need How is financial need determined?

CSS / Financial Aid Profile Used to Award Institutional Aid Only Required by some private colleges and scholarships. The Profile collects and uses information about assets, liabilities, and income not reported on the FAFSA, such as non-custodial parent income. The CSS Profile is available as of Oct. 1 each year. Cost is $25 for first school report and $16 for additional reports. Students still must complete FAFSA to be considered for federal/state need-based aid

Types of Financial Aid Scholarships (merit-based) Grants (need-based) Work-study (must be earned) Student loans (must be repaid) Education Tax Credits Talk to your tax professional or go to irs.gov and search “tax benefits for education”.

Special Circumstances Do I have to file using 2015 tax data? Yes. Initially, you must use prior-prior year, but schools may adjust FAFSA data in certain situations. 2015 FEDERAL TAXES 2016 FEDERAL TAXES 2017 INCOME ESTIMATE 2017-18 FAFSA

Special Circumstances If you have a special circumstance, you should: File the FAFSA using prior-prior year tax data Contact each school to talk about their process Provide necessary documentation to each Financial Aid Office. Schools are allowed to adjust FAFSA results for: Changes in household size (divorce, death, etc.) Medical, dental or dependent care expenses not paid or reimbursed by insurance Private education expenses (K-12) Reductions in income or unemployment of a parent

Other Resources www.studentaid.ed.gov www.ohe.state.mn.us bigfuture.collegeboard.org Federal Student Aid @FAFSA