What Happens Next? Financial Aid 101 Mila Tappan, FAME Outreach Representative October 10, 2008

Agenda What happens after the FAFSA is submitted? Making corrections Role of the central processor Role of the financial aid office Verification process Comparing award letters

What Happens After the FAFSA is Submitted? Student applicant will receive an with a link to view the status of the FAFSA Must log in to view the results Check for comments on student aid report (SAR) Verify social security number Print SAR and review carefully Make note of data release number (DRN)

After the FAFSA, cont. Review school information to be sure the correct schools are represented School will not receive the information unless they are listed #1 reason why schools don’t get the data is because they aren’t listed Colleges receive FAFSA data electronically

Making Corrections Corrections to FAFSA may be made by: –Using FAFSA on the Web –Updating paper SAR –Submitting documentation to school’s financial aid office If FAFSA was submitted using estimated income, must be updated as soon as possible

Important Reminder Tentative Award –be sure to complete all requirements –understand that tentative award based on original information If family filed or plans to file a tax extension: –contact the financial aid office for instructions –pay attention to all correspondence and be sure to submit documents on time and complete

Verification Process that “verifies” FAFSA information Dept. of Ed. randomly selects students FAO may verify a student even if not selected Documents requested may include: federal tax forms, W-2 forms, verification worksheet (school will provide) Financial aid award will not be finalized until this process is complete Respond quickly to all requests

Review information provided on FAFSA Determine financial aid eligibility and calculate award Send award notification Help families find ways to pay the bill Role of the Financial Aid Office

Comparing Financial Aid Awards Look at the various types of aid and total by the award type: –Grants and Scholarships (don’t have to be repaid) –Need Based Federal Loans (Perkins & Subsidized Stafford) –Other Loans –Federal Work Study or other Work Programs

Comparing Financial Aid Awards, cont. Look at direct costs –Tuition, Fees, Room and Board –The information should either be on the Award Letter or in the insert – if not check the school’s website Understand assumptions being made by the school –Enrollment status (full time vs. part time) –Housing (on campus, off campus or living at home)

Compare grants vs. loan –How much of the direct costs are covered by grant? Some financial aid awards will cover the entire bill –But if 80% is loan, it may not be as good as it seems Comparing Financial Aid Awards, cont.

Comparing Award Letters, cont. Very important to understand how aid is awarded (evenly split between semesters, what other steps are required?) Need to know the conditions of the award (annual application, minimum GPA to continue receiving, etc…) Understand the implications of income changes for need-based aid from one year to the next

Comparing Financial Aid Awards, cont. Some financial aid awards will not cover the entire bill –Ask the financial aid office what alternatives they recommend to make up the difference Consider cost to earn degree Are there loan forgiveness options?

Example of an Award

Filling in the Pieces Be sure to read the materials that accompany the Award Letter – will provide many more details If other loans are listed on the Award Letter, learn more about them: –Interest rate/fees –Deferment options –Credit based –Maximum/minimum amounts Contact school to discuss remaining options

Questions to Ask…. Are the scholarships renewable? If scholarships are renewable, what is the criteria? What happens if the student receives outside scholarships, for example, from graduation? Will the financial aid award stay the same from year to year?

Things to Keep in Mind Many schools will ask you to accept or reject aid…. I recommend that aid is not rejected unless the student is absolutely sure they don’t want the aid: –may not be able to get it back once rejected. –can always return loans during the year, even if already processed If circumstances have changed from what is on the FAFSA, the student should contact school to discuss appeal.

Special Circumstances If your family has experienced significant changes to its financial situation that are not reflected on the FAFSA, you should contact the financial aid office. Examples: Unemployment Divorce or separation High medical bills One-time income or benefit Parent(s) attending college

Important Reminders Read through all of the paperwork Understand the next steps and deadlines for those next steps Contact the Financial Aid Office with any questions or concerns – they are there to help! Don’t wait until the last minute!

Questions?