FINANCIAL AID 101 Kristen Isaksen Associate Director of Financial Aid 10/14/2018 7:40 AM FINANCIAL AID 101 Kristen Isaksen Associate Director of Financial Aid Monmouth University © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

What is Financial Aid? Financial aid is money that helps a student pay for education expenses at a postsecondary school (e.g., college, vocational school, graduate school).

Goal of Financial Aid The primary goal is to assist students in paying for college. This achieved by: Evaluating a family’s ability to pay for educational costs. Distributing limited resources in an equitable manner. Providing a balance of gift aid and self-help aid.

Federal Methodology Federal Methodology is the formula created by Congress to determine the Federal Expected Family Contribution (EFC).

Expected Family Contribution The amount a family can reasonably be expected to contribute toward the cost of the student’s education for an academic year. Stays the same regardless of college choice. Colleges use the EFC to award financial aid.

Total EFC for Dependent Students Parent’s Contribution From Income From Assets Student’s Contribution

Cost of Attendance Tuition and Fees Room and Board Books and Supplies Transportation Miscellaneous Personal Expenses Computer Study Abroad Dependent Care Expenses related to a disability

Definition of Need Cost of Attendance (COA) - Expected Family Contribution (EFC) = NEED

Financial Need Examples Cost of Attendance $15,000 - EFC $5,000 = Need $10,000 $40,000 $35,000

Net Price Calculator All institutions must have a net price calculator posted on their websites by October 29, 2011. It will help current and prospective students, families, and other consumers estimate the individual net price of an institution of higher education for a student. Based on full time, first degree/certificate-seeking undergraduate students.

General Eligibility Requirements Must be enrolled or accepted for enrollment in an eligible program of study leading to a degree, certificate, or other recognized credential. Must be U.S. citizen or eligible non-citizen.

General Eligibility Requirements Must have valid Social Security Number (SSN) www.ssa.gov Must be registered with Selective Service (if male and required) www.sss.gov

FAFSA4caster www.fafsa4caster.ed.gov

FAFSA on the Web www.fafsa.gov

Before Beginning the FAFSA

To Register for a PIN www.pin.ed.gov

FAFSA on the Web Worksheet 2011–12 FAFSA on the Web Worksheet—4-page booklet containing instructions and 24 questions in 4 sections. Currently in DRAFT status! You may need to answer more questions than those listed on the worksheet. Skip logic will remove unnecessary questions. Some questions are optional, but it is recommended that you answer all of them.

Completing the FAFSA

IRS Data Retrieval – FAFSA on the Web Applicants may submit a real-time request for IRS tax data. The IRS will authenticate the taxpayer’s identity. If a match is found, the IRS will send the results in real-time (a new window will open). Applicants may choose whether or not to transfer the data.

IRS Data Retrieval – FAFSA on the Web Available in late January 2011 for 2011–12 processing cycle (allow 3-5 days after electronic filing of taxes and 6-8 weeks for paper filing) Participation is voluntary May reduce documents requested by financial aid office Not available to applicants with a recent change in marital status May also be used to make FAFSA corrections

FAFSA and State Aid The New Jersey Higher Education Student Assistance Authority (NJHESAA) will need to collect 4 additional income items not listed on the FAFSA: Earned Income Credit (EIC) Untaxed Social Security Income Driver’s License State/Number Veteran’s Benefits (Independent Students Only)

FAFSA and State Aid At the FAFSA confirmation page, there will be a link and light bulb icon to alert you to the state specific questions. Data from the FAFSA will be transferred to HESAA and the appropriate questions will be displayed.

Process Complete Federal Income Tax Return File Free Application for Federal Student Aid (FAFSA) www.fafsa.gov Complete Institutional forms (if required) Receive Student Aid Report (SAR) Receive/Return Award Letter Provide Additional Documentation Process Student Loans

Sources of Aid Institutional Federal State Other

American Opportunity Tax Credit Part of the American Recovery and Reinvestment Act Modifies the existing Hope Tax Credit for 2009 and 2010 Maximum credit is $2500 (partially refundable) Higher income thresholds Course materials now included

Types of Financial Aid Scholarship Does not have to be repaid Awarded on the basis of merit, skill or a unique characteristic Grants Usually awarded on the basis of financial need Loans Money that is borrowed and repaid with interest Employment Student earns money to help pay educational costs Paycheck or non-monetary compensation, such as room and board

Grants and Scholarships Federal Federal Pell Grant Federal Supplemental Educational Opportunity Grant (SEOG) Teacher Education Assistance for College and Higher Education (TEACH) Grant

Iraq and Afghanistan Service Grants New, non-need-based grant for students who are not eligible for Pell grants due to their EFC and who had a parent or guardian die as a result of military service in Iraq or Afghanistan after September 11, 2001. The student must have been less than 24 years old or enrolled in college when the parent or guardian died. The amount of the grant is the same as the maximum Pell grant award. As with Pell, there is a receipt limit of 18 semesters and award amounts are adjusted like Pell grants for students who are enrolled less than full time.

Grants and Scholarships STATE New Jersey Tuition Aid Grant Garden State Scholarships Distinguished Scholars NJSTARS and NJSTARS II Educational Opportunity Fund (EOF)

More Grants and Scholarships Institutional Merit Based Need Based Private Sources Think local and global Use the Counseling Office’s Resources Internet Resources www.finaid.org www.brokescholar.com

Loans Federal Perkins Loan Federal Stafford Loans Subsidized Need based No interest accrual during school/grace/deferment periods Fixed rate of 3.4% for 11-12

Loans Federal Stafford Loans Unsubsidized Not need based Accrues interest from disbursement Fixed 6.8% interest rate Maximum award amount for first year students: $5500 with no more than $3500 in Subsidized funds

Supplemental Loans Federal Parent Loan for Undergraduate Students (PLUS) Institutional Loans New Jersey College Loans to Assist State Students (NJCLASS) Private/Alternative Loans

Employment Federal Work Study Institutional Work Programs Off-Campus Jobs

Tips BEWARE OF DEADLINES!! Read All Mail Promptly Read Instructions Carefully Maintain Copies of All Documents Do not sign your son or daughter’s name to financial aid documents Involve Your Student Consult a Financial Aid Officer

Using Financial Aid Consultants and Search Services Before spending money on a financial aid consultant, keep in mind that a financial aid administrator can perform the same services for free.

Using Financial Aid Consultants and Search Services If you decide to use the services of a consultant, keep these things in mind: Request a list of references from the consultant before hiring. Never agree to a fee based on the percentage of aid that is received. Never sign a blank form. Always review the FAFSA after it has been prepared. Keep copies of all documents for your own files. The fee should be refundable if the FAFSA is completed incorrectly. A financial aid consultant cannot guarantee financial aid.

Questions to ask a Financial Aid Administrator Are scholarship and grant awards renewable? What criteria must be met? What are the policies for work-study positions? Is a job guaranteed? Can a student borrow more than the amount on the award letter? Are any figures on the award letter estimated? What is needed to finalize the package? How are outside scholarships treated? What expenses are not reflected on a term bill?

Questions