Financial Aid 101 Presentation The 2016-2017 FAFSA UCSC Financial Aid Office Student Affairs: Cultivating Engaged World Citizens

Topics for Discussion What is financial aid Cost of Attendance Expected Family Contribution What is financial need Types and sources of financial aid Free Application for Federal Student Aid (FAFSA) Special Circumstance

What is Financial Aid? Financial aid is funds provided to students and families to help pay for postsecondary educational expenses.

What is Cost of Attendance (COA) Direct/Billed costs (tuition, fees and on-campus housing) (plus) Indirect costs (books, transportation, personal expenses) Direct + Indirect costs = COA (Cost Of Attendance) Varies from college to college

What is the Expected Family Contribution (EFC) Amount family would be expected to contribute Calculated using data from the federal application (FAFSA) and the federal formula Two components Parent contribution (Assets + Income) Student contribution (Assets + Income) PC+SC=EFC (Parent Contribution + Student Contribution=Expected Family Contribution) Stays the same regardless of college costs

What is Financial Need Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need

Types of Financial Aid Scholarships Grants Money that does not have to be paid back Awarded on the basis of merit, skill, or unique characteristic Grants Usually awarded on the basis of financial need

Types of Financial Aid (Continued) Loans Repayment usually begins after education is finished Only borrow what is really needed Look at loans as an investment in the future Employment (CWS) Allows student to earn money Receives a paycheck May be on or off-campus employment

Sources of Financial Aid Federal government State you live in Institutional (University/College) Private sources (foundations, businesses, charitable organizations)

Federal Government Largest source of financial aid Aid awarded primarily on the basis of financial need Must apply every year using the Free Application for Federal Student Aid (FAFSA)

Common Federal Aid Programs Federal Supplemental Educational Opportunity Grant Federal Perkins Loan Federal Work-Study Direct/Stafford Loans PLUS Loans Federal Pell Grant Academic Competitiveness Grant National Science and Mathematics Access to Retain Talent Grant Teacher Education Assistance for College and Higher Education Grant

State Financial Aid Residency requirements (Cal Grant) Award aid on the basis of both merit and need Use information from the FAFSA Deadlines vary by state; priority deadline is March 2nd of every year. (California)

Institutional Most Universities and Colleges offer their own form of grant aid and usually includes loans. Check with specific institution/college for file completion deadline. IMPORTANT: Amount of funding varies widely from school to school

Private Sources Foundations, businesses, charitable organizations Deadlines and application procedures vary widely Begin researching private aid sources early! (recommended 2hrs/wk)

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 use paper form (paper form not recommended). Available in English and Spanish

FAFSA Information is used to calculate the Expected Family Contribution or EFC The amount of money a student and his or 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 May be filed at any time during an academic year, but no earlier than the January 1st prior to the academic year for which the student requests aid. The priority filing period is January 1 through March 2 (2016) for the 2016-2017 academic year Colleges may set FAFSA filing deadlines earlier than March 2nd. UPDATE: Beginning 2017-18 filing period will open on October 1st.

FAFSA on the Web Web site: www.fafsa.ed.gov FAFSA on the Web Worksheet: (available now) Used as “pre-application” worksheet Questions follow order of FAFSA on the Web

FAFSA on the Web 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 Will check for errors such as reporting income twice

The FSA ID is the new PIN If you haven’t logged in to fafsa.gov or StudentLoans.gov since May 10, you will need to create a FSA ID before you can log on in the future   If you already have a PIN, you can link your information to your new FSA ID by entering your PIN while registering for your FSA ID FSA ID replaced the Federal Student Aid PIN to increase security. The FSA ID is your electronic passport to federal student aid online. Students, parents, and borrowers are required to use an FSA ID, made up of a username and password, to access certain U.S. Department of Education websites. Your FSA ID is used to confirm your identity when accessing your financial aid information and electronically signing your federal student aid documents.

FSA ID Your FSA ID is used to sign legally binding documents electronically. It has the same legal status as a written signature. One parent and the student must each have one. Web site: www.fafsa.gov Don't give your FSA ID to anyone—not even to someone helping you fill out the FAFSA. Sharing your FSA ID could put you at risk of identity theft!

Information NEEDED for FOTW

FOTW Student Worksheet: Section 1-General information Name Social Security Number Driver’s license number Citizenship Marital status

FOTW Student Worksheet: Section 1-General information State and date of legal residence Selective Service registration status Drug conviction status Parent’s educational background Plans for the 2016-17 school year Self-help preferences (cws/loans)

FOTW Student Worksheet: Section 2 Students dependency status: If all “No” responses, student is dependent…nearly all of our students If “Yes” to any question, student is independent—ward of court, foster child, etc

FOTW Parent Worksheet: Section 3 Parents’ marital status (single/married/divorced/widowed) Date of parents’ marital status (date divorced/married) E-mail address (optional) Social Security Number Last name Date of Birth

FOTW Parent Worksheet: Section 3-Financial data Tax filing status and return typeTa If parents filed or will file a 1040, were they eligible to file a 1040A or 1040EZ? Did anyone in the parents’ household receive benefits from any of the federal programs listed?

FOTW Parent Worksheet: Section 3-Financial Data Dislocated worker status Adjusted Gross Income (AGI) for 2014 (Income earned from work 2014) Income tax paid for 2015 Exemptions claimed for 2015 Household size…number in college

FOTW Parent Worksheet: Section 3-Asset Data Cash, savings, and checking Net worth of investments Net worth of business and investment farms

FOTW Worksheet: Section 4 Data for Independent student (and spouse) Income and Asset Type of Veterans benefits that will be received Household size and number in college Receipt of benefits from one of the federal programs listed Dislocated worker status

FOTW Worksheet: Section 5 List up to 10 colleges to receive FAFSA data: ore than ten…re-input data after submitting first group of 10 Federal School Code for each college…found on college board or college web site Housing plans for each college

Signatures Required Format Student One parent (dependent students) Electronic using FSA ID Signature page (? Not sure if still being allowed at this time.)

Frequent FAFSA Errors Wrong Social Security Numbers Incorrect Divorced/remarried parental information Income earned by parents/stepparents Untaxed income not claimed Reporting differences in U.S. income taxes paid Household size--Number of household members in college Real estate and investment net worth discrepancy

Student Aid Report-(SAR) SAR=Information involving student aid package results Review data for accuracy Correct estimated 2016 income information when actual figures are available (after taxes filed) Assets may be corrected but not updated (report what was true at time of app)

FAFSA Processing Results CPS notifies student of FAFSA processing results by: E-mail notification containing a direct link to student’s on-line SAR if student’s e-mail was provided on paper or electronic FAFSA, otherwise will receive by mail Student with FSA ID may view SAR on-line at www.fafsa.gov

Special Circumstances Cannot report on FAFSA Send explanation to financial aid office at each college College will review special circumstances Request additional documentation Decisions are final and cannot be appealed to U.S. Department of Education

CAUTION! Avoid being charged a fee to file a FAFSA (Free Application for Federal Student Aid). Completion and processing of the FAFSA are FREE. When filing FAFSA on the Web, be sure to go directly to www.fafsa.gov Contact any college financial aid office for help completing the FAFSA.

Last Tips Apply Every Year!!! Submit application and complete file by published deadline. (The earlier, the better!...money is first come first served) Contact the Financial Aid Office of college you are applying to if you have problems or questions. Apply Every Year!!!