What You Need to Know About Financial Aid

Topics We Will Discuss Tonight What is financial aid? Applying for Financial Aid Cost of Attendance (COA) Expected family contribution (EFC) Financial need Categories, types, and sources of financial aid Free Application for Federal Student Aid (FAFSA) Special circumstances

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

Applying for Financial Aid Who should apply? Every student who would like help with college cost. Do not assume you are not eligible! How do I apply? Each year, you must complete the Free Application for Federal Student Aid (FAFSA) Go to www.fafsa.gov Check out the new FAFSA app. Search “MyStudentAid” in your APP store

Applying for Financial Aid- cont. When do I apply? The FAFSA can be filed after October 1st prior to the academic year for which you are applying. It must be received by the federal processor no later than March 1st to receive the fullest consideration for State grants. Check with all the colleges you are considering for their deadlines!

What happens after I apply? Your FAFSA will be checked for completeness. If an item is blank, the form may not be processed or will be returned to you. The FAFSA will take approximately 3 days to process. After the FAFSA is processed, you will receive a Student Aid Report (SAR), which is a report of your answers to the FAFSA questions and an expected family contribution (EFC).

What is Expected Family Contribution (EFC)? Amount family can reasonably be expected to contribute Calculated using data from the federal application form and a federal formula This figure is calculated by a formula that looks at income, number of family members, number in college, and assets in some cases. Two components Parent contribution Student contribution *** This stays the same regardless of the college ***

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

Cost of Attendance (COA): Direct costs: Tuition, Fees, Room/Board, Books/ Supplies Indirect costs: Transportation, Personal *** This varies widely from college to college *** https://collegescorecard.ed.gov/

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

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

Self-Help Aid Loans: Money students and parents borrow to help pay college expenses Repayment usually begins after education is finished Only borrow what is really needed Look at loans as an investment in the future Work – Study Employment: Allows student to earn money for educational costs Student may opt out on whether or not to work or the number of hours to work

Sources of Financial Aid Federal government States Colleges and universities Private sources Civic organizations and churches Employers

Federal Student Aid Programs Federal Pell Grant – largest federal need based grant program. EFC less than 5486; Maximum award $6,095 (EFC of 0) – these are FY 2018 figures Federal Supplemental Educational Opportunity Grant (FSEOG) – must be Pell eligible. Maximum award $4,000 Teacher Education Assistance for College and Higher Education (TEACH) Grant – for students who intend to teach full-time in high-need subject areas for at least four years at school that serve students from low-income families. Maximum award $4,000. Guaranteed Access Grant – Maximum award $11,600 Federal Work-Study – part-time job on campus Federal Direct Loans – Subsidized and Unsubsidized Federal Plus Loans – parent loan, based on credit worthiness

Maryland State Scholarships Residency requirements usually apply Award aid on the basis of both merit and need Use information from the FAFSA and/ or state aid applications Maryland Community College Promise Scholarships (MACC) Maryland Higher Education Commission Maryland Deadline: March 1st (each year) http://www.mdgo4it.mhec.Maryland.gov

Legislative Scholarships (Senatorial and Delegate) Maryland State Scholarships Legislative Scholarships (Senatorial and Delegate) All students may apply: High school seniors Undergraduate students Graduate students Career or technical school students May be used for: Full-time or part-time enrollment Maryland residents only Mostly Maryland institutions (may be used out of state in rare circumstances)

Maryland State Scholarships Senatorial Scholarship: $400 and up annually Delegate Scholarship: $100 and up annually File FAFSA by March 1st. Demonstrate financial need. Some awards are renewable for an additional three years. Contact Senator for application and renewal procedures. Note: Senators have the option to award; some do not select recipients but put their funds into other programs administered by MHEC. Contact Delegate for application procedure. Must apply each year for an award; they are not renewable. FAFSA may not be required. Note: Delegates have the option to award; some do not select recipients but put their funds into other programs administered by MHEC.

Civic Organizations and Churches Private Sources, Civic Organizations and Churches Foundations, businesses, charitable organizations Deadlines and application procedures vary widely Begin researching private aid sources early Research what is available in the community To what organizations and churches do student and family belong? Application process usually occurs during spring of senior year Small scholarships add up!!!

Can your pocket afford the Lets Talk Numbers Can your pocket afford the out of pocket expense? ** 2018/2019 figures: Based on EFC of 1501, including meal plans, not including additional fees. WWCC does not include room & board.

Any questions so far?? Now let’s talk about the FAFSA

Free Application for Federal Student Aid (FAFSA) A standard form that collects demographic and financial information about the student and family Information is used to calculate the expected family contribution (EFC) Colleges use EFC to award financial aid

2019-2020 FAFSA available October 1, 2018 FAFSA on the Web www.fafsa.gov 2019-2020 FAFSA available October 1, 2018

New to the FAFSA 2019-2020… There is an App!!! Search “MyStudentAid” in your App store App is user-friendly as it is customized based on user IRS DRT available Same data protections as completing the FAFSA on the web

Prior to completing the FAFSA Creating a FSA ID & Password Prior to completing the FAFSA Sign FAFSA & other FSA documents electronically https://fsaid.ed.gov or from within FAFSA website FSA ID for student; FSA ID for parent ( can not have the same email address) Only the owner should create a FSA ID

General Information needed to Successfully complete the FAFSA Social Security Number Citizenship status Marital Status Drug Convictions Selective Service Registration Level of Parents’ school completion

FAFSA and Income Information As of the 2017/2018 FAFSA, students and parents are required to report income information from the “Prior-Prior Year.” So for the 2019/2020 FAFSA students and parents will be using 2017 income information.

IRS Data Retrieval Tool While completing FAFSA, applicant may submit real-time request to IRS for tax data IRS will authenticate taxpayer’s identity. If match found, IRS sends real-time results to applicant within the FAFSA Participation is voluntary Reduces errors & documents requested by financial aid office Some will be ineligible to use IRS DRT: * Examples include but are not limited to: - Filed an amended tax return - No Social Security Number was entered - Parent married but filed separately

Student Dependency Status FAFSA asks 13 dependency questions to determine dependency status for federal student aid (not IRS) purposes: If “No” to all the questions, student is dependent If “Yes” to any question, student is independent

Who is your parent?

Frequent FAFSA Errors Incorrect Social Security Numbers Divorced/ remarried parental information Income earned by parents / stepparents Household size Number of household members in college Real estate and investment net worth Use a street address, instead of P.O. Box Include a MARYLAND school on FAFSA

Student Aid Report Review data for accuracy and correct any errors Students with FSA ID may view SAR online at www.fafsa.gov Update estimated tax information when actual figures become available If necessary, corrections to FAFSA data may be made by: Using FAFSA on the Web Updating paper SAR ( SAR Information Acknowledgement cannot be used to make corrections) ; or Submitting documentation to college’s financial aid office

Verification There are a lot of changes in the verification policy at ALL schools Here is what you need to know: Verification is not a bad thing; it does not mean the student is not eligible Department of Education customized verification per applicant Possible documentation you will need for school: 2017 Tax Transcript (not tax return) for student & parent(s) 2017 W2’s from all employers for student and parent(s) High school completion status Identity / Statement of Educational Purpose *Check with each school to determine what documents are needed to comply with their verification policy.

Special Circumstances Change in income Change in employment status Unusual medical expenses not covered by insurance Change in parent marital status Unusual dependent care expenses Student cannot obtain parental information

What to do next Obtain and review admissions and financial aid Web sites and materials for each school to which you are applying. Meet all application deadlines. - Complete FAFSA and other application materials. Submit all requested follow-up documents. Investigate other sources of aid.

Financial Aid Office Deborah E. Jenkins Director of Financial Aid djenkins@worwic.edu Ellen Soulis Financial Aid Scholarship Coordinator esoulis@worwic.edu Financial Aid Office Katie Abreu Financial Aid Compliance Coordinator kabreu@worwic.edu Kristin Williams Financial Aid Analyst kwilliams@worwic.edu Esther Dabipi Financial Aid Loan Coordinator edabipi@worwic.edu Stephen Sullivan Financial Aid Grant Coordinator ssullivan@worwic.edu Katie Rosas Financial Aid Specialist krosas@worwic.edu 410-334-2800 ext. 2905 www.worwic.edu/finaid http://www.worwic.edu/ExternalLink.aspx?Key=FBFA