Financing a College Education The College Goal Sunday program was created by the Indiana Student Financial Aid Association with funding from Lilly Endowment, Inc., and with supplemental support from the Lumina Foundation for Education. College Goal Kentucky 2015

What is Financial Aid? Scholarships Grants Loans Employment Opportunities

Sources of Financial Aid Private Institutional State Federal

Types of Financial Aid Merit-Based Need-Based

Merit-Based Financial Aid

Private Scholarships Free Scholarship Searches High School Counselors Student and Parent Employers Organizations to which you or your family members belong Paying for help? Beware!

Institutional Aid Apply for admission to the college of your choice Ask for scholarship applications from the admissions office Ask if a separate financial aid application is required Ask for scholarship information from departments specific to your major Consider R.O.T.C.

Additional Requirements for Some Schools: CSS/Financial Aid Profile Many colleges (mostly private out of state) and scholarship organizations use the data on CSS/Financial Aid Profile to assist in awarding nonfederal aid. Visit profileonline.collegeboard.com to find out if your school or scholarship of interest requires this form. Students are charged $25 for initial application and one college or program report; additional reports are $16.

Kentucky Educational Excellence Scholarship (KEES) After high school graduation, KEES becomes available for use at a Kentucky college or university Students pursuing a degree in a program of study not offered in Kentucky may be able to use their KEES out- of-state through the Academic Common Market – Does not apply to colleges in Indiana, Ohio, and Illinois Award renewable for up to 8 semesters within 5 years of high school graduation Administered by Kentucky Higher Education Assistance Authority (KHEAA) –

Kentucky Educational Excellence Scholarship (KEES) Merit scholarship funded by net KY lottery proceeds KY high school students earn KEES awards for each yearly GPA of 2.5 or better Cumulative GPA maximum is $2,000 Students with at least one GPA award can earn bonus awards: ACT scores of 15 or better earn up to $500 SAT scores of 710 or better earn up to $500 Free/reduced lunch students earn $200-$300 for each qualifying AP and/or IB exam score

Need-Based Financial Aid

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

Cost of Attendance Always includes: Tuition, Room and Board Books and supplies, transportation, and miscellaneous personal expenses Loan fees May include: Study abroad costs Dependent or elder care expenses Expenses associated with a disability Expenses for cooperative education program

Need Varies Based on Cost

State Programs College Access Program Grant (CAP) Available to students at public and private colleges in Kentucky Award amount currently $1,900 per year KY Tuition Grant (KTG) Available to students at Kentucky’s private colleges. Award amount currently $2,930 per year

Federal Aid Programs Federal Pell Grant TEACH Grant Campus-Based Programs – Federal Perkins Loan – Federal Work-Study (FWS) – Federal Supplemental Educational Opportunity Grant (SEOG)

Federal Loan Programs William D. Ford Direct Loan Program – Federal Stafford Loan Subsidized (need-based): interest does not accrue while student is in school, current fixed interest rate of 4.66% Unsubsidized (non need-based): interest accrues while student is in school at current fixed rate of 4.66% (Grad Unsub 6.21%) – Federal PLUS Loan – 7.21% Parent can borrow up to Cost of Attendance – All Financial Aid If denied, student can receive up to $4,000 more per year in Stafford unsubsidized loan funds – Rates are based on loans disbursed between 7/1/14 and June 6/30/15. New rates will be announced by July 1, 2015.

Priority Application Deadline As soon as possible on or after January 1, 2014 – Receipt date for completed Free Application for Federal Student Aid (FAFSA) in Kentucky To ensure maximum consideration for Kentucky state aid programs Schools may have unique priority deadlines for institutional funds

Free Application for Federal Student Aid (FAFSA ) – Family’s personal and financial information required to perform need analysis is collected on the FAFSA. – Can use estimated 2014 income and tax information, if necessary – Filing options Electronically through FAFSA on the Web: Sophisticated on-line edits and skip logic so that errors are less likely to be made On-line help is available for each question Paper version may be requested if online submission is not an option (not recommended)

Getting Ready Before starting the FAFSA, gather: – Student driver’s license – Student Alien Registration Card – Student and Parent Social Security cards 2014 W-2 Forms and other records of money earned* 2014 federal income tax return* Records of untaxed income Current bank statements Business, farm, and other real estate records Records of stocks, bonds, and other investments * Can estimate this information if not available at time of initial FASFA submission.

Federal PIN PIN (Personal Identification Number) serves as the electronic signature on ED documents Both student and at least one custodial parent need PIN to sign the FAFSA electronically May be used to: – Check on FAFSA status – Verify and correct FAFSA data – Add additional schools to receive FAFSA data – Change home and addresses Apply for student and parent PINs at

Do NOT go to a “.org” or “.com” website Start A New FAFSA for  Initial FAFSA Entry Login for  Renewal Application Entry  FAFSA Corrections  Providing Signatures  Continuing a Saved FAFSA  Viewing Transaction History

Basic Student Information Name, Social Security and Date of Birth Notice “Help and Hints” follows along every page to help ensure accuracy.

“Get Started” page – As an entering freshman for Fall 2015 be sure you are filing the FAFSA PIN Status

Introduction Page

Student Demographic Information Opportunity to check Name, DOB, SS# Address, Phone #, Address Marital Status – As Of Today Driver’s License Information Notice the “Save” Option

Student Demographic Information Citizenship Selective Service Degree Status - Most High School Seniors will answer: High School Diploma Never attended college / 1st yr. 1 st Bachelors Degree Bachelors degree not earned by July 1, 2014 Work Study Highest Grade completed by parents

The Foster Care Question Congress has asked FAFSA to help identify students who have been in foster care Help and Hints will offer guidance in answering this question Answer will not impact eligibility for federal or state aid Student answering “yes” will be provided with information about additional benefits they may qualify for

High School Question Student enters the name, city and state of the high school they attended Student selects Confirm to retrieve the results

Error Icon Identifies Errors An error icon will appear with a pop-up box indicating the nature of the error. A RED X will also display to the left of the field where the information needs to be corrected.

School Selection Step Student may enter up to 10 colleges by entering Federal School Code or Searching on State, City or School Name

School Selection Summary Student will select the housing plan for each school listed Student may choose to change the positioning of any school on the list (will display only if the student selects more than one school)

Dependency Determination 13 questions determine a student’s dependency status

Dependency Results Most High School students will have to provide parental information based on the way they answer the Dependency questions. If the student moves forward without providing the parental information they will most likely have to provide some additional documentation of circumstance to the college or university.

Parent Demographic Information Notice the slight change in the color of the web layout Dark Blue refers to the student Light Purple refers to the parent Similar Demographic Questions will be asked Name, Social Security and Date of Birth Parents will also be asked about their Household Size and the Number of individuals going to college

Parent Financial Information Remember you are answering questions about the previous year’s tax information If you have not completed your 2014 taxes you are allowed to use your best estimates. Additional instruction is provided if you are estimating income.

Parent Financial Information 37 Type of tax return AGI and work income What is a dislocated worker?

Parent Financial Information 38 Taxes Paid Number of exemptions “Help and Hints” can be a useful tool to answer: Additional Financial Information Untaxed Income

Parent Financial Information Cont. 39 Some parents of dependent students will be presented with asset questions “Help and Hints” can be a useful tool in answering these questions

Student Financial Information Notice the slight change in the color goes back to dark blue to indicate you are now answering questions about the student Student financial questions will be nearly identical to those of the parent Students may also estimate income and tax information for 2014 if taxes haven’t been filed yet

The IRS Data Retrieval is scheduled to be available on February 1, Electronically filed tax return information will be available from the IRS in 2 weeks, data from paper tax returns will be available in 8 weeks. Also available in Corrections If the parent or student 2014 tax return has already been completed

IRS Data Retrieval Once the applicant has successfully authenticated, tax data will be presented and the applicant will have the option to “Transfer” the tax information to the FAFSA

Sign & Submit The best way to sign the FAFSA is by using your PIN Both student and parent need to provide a PIN for electronic signature Note: Submitting the FAFSA without signatures will cause a delay

Confirmation Page Includes – Confirmation Number Data Release Number (DRN) EFC estimate Pell Grant and Direct Loan estimates Option for parents to transfer info to an application for a sibling Statistics for each college on the FAFSA

Verification Application selected by federal government or by school Confirms accuracy of information reported on FAFSA

If selected, what will you need? Verification Worksheet (will be provided to you) IRS Data Retrieval 2014 U.S. income Tax Transcript Follow the directions provided by the school you plan to attend Common documents requested are:

Role of the Financial Aid Office Determines eligibility for financial aid Packages aid Sends award notification

Special Circumstances Contact the Financial Aid Office if there are circumstances which affect a family’s ability to pay for college such as: – Loss or reduction in parent or student income or assets – Death or serious illness – Natural disasters affecting parent income or assets – Unusual medical or dental expenses not covered by insurance – Reduction in child support or other untaxed benefits – Financial responsibility for elderly grandparents – Tuition expenses at elementary or secondary schools – Unusually high child care costs Or any other unusual circumstances that affect a family’s ability to contribute to higher education

Evaluating Aid Packages Biggest is not always best; unmet need must be considered Are cost estimates realistic? Direct vs. Indirect Grant/Loan balance What are the terms and conditions of aid offered? Type of aid offered in view of student’s career objectives and work expectations

Summary of the Financial Aid Process Submit all required forms, including the FAFSA, by each college’s published deadlines Keep a copy of all forms submitted Review the electronic Student Aid Report (SAR) Acknowledgement or the paper SAR sent to the student Watch for financial aid award notifications from colleges to which the student has been admitted Be sure to apply for financial aid this year and every year as soon as possible after January 1 to receive the best financial aid award possible ASK QUESTIONS!

Questions and Answers Good luck with your educational goals!