What You Need to Know About Financial Aid Lisa Gangwer Financial Aid Advisor Central Ohio Technical College & The Ohio State University Newark

You will be given A Lot of info in a short period of time TO BE NOTED You will be given A Lot of info in a short period of time You may not agree with all I have to say Federal Aid based on Federal LAW Please Ask Questions and feel free to contact me with questions Suggestion: Create a Financial Aid File Student needs to be involved in process

What is Financial Aid? Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses. *Parents still carry the burden upon their shoulders.

What is the FAFSA and an EFC? Standard Form that collects information about the student and parent(s) Calculates 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 (NOT what you owe) Stays the same regardless of college Calculated using a Federal Formula Colleges use EFC to award financial aid

What is Cost of Attendance (COA)? Direct costs Indirect costs Direct and indirect costs combined into cost of attendance Varies widely from college to college

What is Financial Need? – Expected Family Contribution Cost of Attendance – Expected Family Contribution = Financial Need

Need Varies Based on Cost 5

FAFSA on the Web Website: www.fafsa.gov Free Application for Federal Student Aid 2018–19 FAFSA on the Web available on October 1, 2017 FAFSA on the Web Worksheet: Used as “pre-application” worksheet Questions follow order of FAFSA on the Web

Federal Student Aid ID ***FSA ID – a username and password – has replaced the PIN Sign FAFSA electronically Used to log in to certain U.S. Dept. of Ed websites May be used by students and parents throughout aid process, including subsequent school years Apply for FSA ID today! Student and one parent MUST have their own FSA ID.

Important to NOTE Must re-apply for FAFSA every year Two Award Years will display until June, 2018 2017-2018 2018-2019* KNOW Financial Aid Priority DATES for each school. Families should be evaluated in their present financial condition. Contact the college in regards to Special Circumstances.

FAFSA Questions to Watch Watch student info vs. parent info Blue Sidebar = STUDENT Purple Sidebar = PARENT Name & SSN must match Social Security Card State of legal residence Grade Level in 2018-19 = Never Attended Selective Service Question (males 18 must register) Household Size and Number in College

Dependency Determination If all “No” responses, student is dependent must provide Parent Info If “Yes” to any question, student is independent Children, Legal Guardianship, Foster Care etc. Special Circumstances select “I am unable to provide Parental Information” Highly encourage student/parent to contact the college of choice if uncertain

Include step-parent information Regardless of any ‘agreements’ WHO Is the Parent? Biological or Adoptive Parent(s) If parents are divorced: Provide information for the parent you lived with most during the last 12 months. If you did not live with 1 parent more than the other, the parent who provided the most financial support for the last 12 months Include step-parent information Regardless of any ‘agreements’

Tax Information (2015) Recommend using IRS Data Retrieval Tool Pulls Live/real-time IRS data to the FAFSA (no longer will be able to see information transferred) MUST have an FSA ID to use Can’t use Data Retrieval Tool if: recently filed taxes (give 2 weeks if filed online) filed separately head of household and now married, amended

Asset Data for parent and student Cash, savings, and checking: as of ‘today’ Net worth of investments/Business/Farm Value Amount leftover after deducting the debt from the value of the investment Current Balance/value on day the FAFSA is submitted

Assets to Include Real estate (not home you live in), Trust funds, UGMA and UTMA, money market and mutual funds, CD’s, stocks, bonds, commodities. Education benefits or savings accounts (e.g. Coverdell, 529, and refund value of 529 prepaid tuition plans). These are assets of parent not the student Must include ALL accounts owned by parent

Assets NOT Included Home you live in Value of Life Insurance Retirement Plans: (401K, pension funds, annuities, non-education IRA’s, KEOGH plans etc.) Cash, savings, checking already reported Business has 100 or fewer employees Farm: family farm you live on and operate

School Selection Step Student may enter up to 10 colleges by entering Federal School Code or Searching on State, City or School Name The search functionality for colleges has not changed from last year. The applicant may enter up to 10 school codes or may search by state, city or school name.

Sign and Submit “Print signature page” will appear if that option is selected. “View or Print your FAFSA information If the applicant selects to Print A Signature Page the Print Signature Page button dynamically appears.

Confirmation Page Includes - Confirmation Number EFC estimate Pell Grant and Direct Loan estimates Option for parents to transfer info to an application for a sibling Rates for each college on the FAFSA Automatically emailed

NOW What? Role of the Financial Aid Office Reviews FAFSA information for accuracy May request Additional Information/Documentation Income/tax data (IRS Tax Transcript) Household Size Number in College Determine eligibility for financial aid Sends (usually by email) an Award Notification which includes: Amount of student’s financial need Aid awarded from which programs How and when aid will be disbursed Terms and conditions of student’s award School Assigned Email and/or Secured Log-in 20

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

Federal Student Aid Programs Federal Pell Grant (limited) Iraq and Afghanistan Service Grant (IASG) Federal Supplemental Educational Opportunity Grant (FSEOG) Federal Work-Study (FWS) Subsidized and Unsubsidized Federal Direct Student Loans (Direct Loans) Perkins Loan PLUS Loans

Student Loans Federal Direct Stafford Loans Student’s name only Borrowed directly from the Federal Government Subsidized based on need/Interest paid while in school Unsubsidized Not based on need/interest accrues while in school Maximum Freshman Eligibility = $5500/year No payments until 6 months after graduation Current interest rate 4.54% in 2017-18

Parent Loans Federal Direct Parent Loan (PLUS) Parent’s name only Borrowed directly from the Federal Government Requires a credit check Maximum amount = COA minus other aid (VARIES) Current Interest Rate is fixed at 7% and begins after first disbursement Option to defer repayment while student enrolled

Self-Help Aid: Work-Study Employment Allows student to earn money to help pay educational costs Earns paycheck Job on campus is able to work around class hours Say “Yes” to work-study question on FAFSA If eligible, student has option to accept it but still has to apply for job

Private Sources Foundations, businesses, charitable organizations Deadlines and application procedures vary widely Begin researching private aid sources early

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

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

Scholarships Searches FastWeb: www.fastweb.com College Board FUND FINDER www.collegeboard.org Scholarships.com www.scholarships.com For additional reputable sites go to: www.FINAID.org

Lisa Gangwer Gangwer.10@cotc.edu 740-366-9435 1-800-9NEWARK ext. 69435 Contact Information Lisa Gangwer Gangwer.10@cotc.edu 740-366-9435 1-800-9NEWARK ext. 69435