FINANCIAL AID 101 Kristen Isaksen Associate Director of Financial Aid Monmouth University

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

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

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.

Parent’s Contribution From Income From Assets Student’s Contribution From Income From Assets

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

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

Cost of Attendance$28,000 - EFC$15,000 = Need$13,000 Cost of Attendance$55,000 - EFC$15,000 = Need$40,000

All institutions are required to post a net price calculator on their website. It helps 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.

Have a high school diploma or equivalent. 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.

Must have valid Social Security Number (SSN) Must be registered with Selective Service (if male and required)

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.

Allow approximately 2 weeks after electronic filing of taxes and 4-6 weeks for paper filing to ensure the data is available Will reduce documents requested by financial aid office-provided data is not changed. Not available to applicants with a recent change in marital status. May also be used to make FAFSA corrections.

The IRS Data Retrieval does not fill in all of the income questions. Please review the income section of the FAFSA before submitting!

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-especially the driver’s license question.

Changes due to the Supreme Court overruling the Defense of Marriage Act Parent(s) now referred to as Parent 1/Parent 2 Refers to father/mother/stepparent Legal parents biological and/or adoptive Gender no longer a consideration

New marital status for legal parent(s) Never married Unmarried and both parents living together Married or remarried Divorced or separated Widowed

New question Tax Filing Status Single Head of Household Married, filing jointly Married, filing separately Qualifying widow(er) Don’t know

The New Jersey Higher Education Student Assistance Authority (NJHESAA) collects 4 additional items not listed on the FAFSA. Use the “Optional Features-Start your state application” on the FAFSA confirmation page. FAFSA data will be transferred to HESAA and the appropriate questions will be displayed. Make sure to disable your pop-up blockers!

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)

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

Institutional Merit Need Federal State Other

American Opportunity Tax Credit Lifetime Learning Tax Credit Tuition and Fees Deduction Student Loan Interest Deduction

Scholarship Does not have to be repaid Awarded on the basis of merit, skill or a unique characteristic Grants Does not have to be repaid 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

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

STATE New Jersey Tuition Aid Grant (TAG) NJSTARS and NJSTARS II Educational Opportunity Fund (EOF)

Private Sources Think local and global Use the Counseling Office’s Resources Internet Resources

Need based No interest accrual during in-school and grace periods (9 months) 5% fixed interest rate during repayment Limited funding Maximum is $5,500 per year, will vary by school

Federal Direct Loans Subsidized Need based No interest accrual during in-school or deferment periods Fixed rate of 3.86% for Market-based fixed rate Adjusted annually Based on the 10 year Treasury note plus a margin

Federal Direct Loans Unsubsidized Not need based Accrues interest from disbursement Fixed 3.86% interest rate for Maximum award amount for first year students: $5500 with no more than $3500 in Subsidized funds

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

Federal Work Study Institutional Work Programs Off-Campus Jobs

Not a loan Enrollment fee Make tuition payments in monthly installments Fit payments into your monthly budget Various payment options

BEWARE OF DEADLINES!! Read all mail promptly Read instructions carefully, review before submitting anything! 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

Before spending money on a financial aid consultant, keep in mind that a financial aid administrator can perform the same services for free.

Are scholarship and grant awards renewable? What criteria must be met? What are the policies for work-study positions? Is a job guaranteed? 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? Can financial aid be used to pay for books? Are there any banking options on campus?