Financial Aid Presentation NCASFAA/ NCSEAA 1 Financial Aid for College

Financial Aid Presentation NCASFAA/ NCSEAA 2 Scope of this Workshop What is financial aid College costs Determination of eligibility Financial aid programs How to apply for financial aid (FAFSA) and next steps

Grants Scholarships Loans Employment Grants Scholarships Loans Employment Financial Aid Presentation NCASFAA/ NCSEAA 3 Types of Student Financial Aid

Financial Aid Presentation NCASFAA/ NCSEAA 4 Student Financial Aid Merit-based – academics – talent – athletic – others Need-based – financial considerations

Financial Aid Presentation NCASFAA/ NCSEAA 5 Sources of Financial Aid Federal Government State Programs Institutional funds Outside agencies

Financial Aid Presentation NCASFAA/ NCSEAA 6 Need-based Aid Principles Family is responsible for costs to the extent of its ability to pay college costs Provides access and choice, but full costs and need are not always met Aid is based on a “snapshot” of the family situation, not a video…..

Financial Aid Presentation NCASFAA/ NCSEAA 7 Basic Formula for Aid Cost of Attendance (varies widely) Expected Family Contribution Eligibility for Need-Based Funds - =

Financial Aid Presentation NCASFAA/ NCSEAA 8 Direct College Costs Tuition Required fees Room & Meal Plan if residence student Books and Supplies

Financial Aid Presentation NCASFAA/ NCSEAA 9 Indirect College Costs Transportation Miscellaneous personal expenses, including documented costs for a personal computer Loan fees Room & Meals if living off campus

Cost of Attendance Examples North Carolina Averages 2 Year Public4 Year Public4 Year Private $ 11,860$16,643$35,967 National Averages 2 Year Public4 Year Public4 Year Private $15,286$21,447$33,973 NC averages calculated by NCSEAA for academic year. National averages from College Board Financial Aid Presentation NCASFAA/ NCSEAA 10

Cost Saving Ideas Tuition - compare Room and Meals - conserve Books and Supplies – shop around Transportation – be creative Personal expenses - budget Most importantly, finish on time Financial Aid Presentation NCASFAA/ NCSEAA 11

What is the Expected Family Contribution (EFC)? Amount family can reasonably be expected to contribute Stays the same regardless of college Two components – Parent contribution from income & assets – Student contribution from income & assets Calculated using data from a federal application form and a federal formula Financial Aid Presentation NCASFAA/ NCSEAA 12

Examples of Financial Need 3 different students at 3 different schools: COA9,000 15,000 30,000 -EFC2,000 18,000 6,500 Need7,000 (3,000) 23,500 Financial Aid Office helps with need-based aid towards need amount and non need-based aid toward remaining costs Financial Aid Presentation NCASFAA/ NCSEAA 13

Financial Aid Presentation NCASFAA/ NCSEAA 14 Federal Aid Programs Federal Pell Grant Federal Supplemental Educational Opportunity Grant Federal Work-Study Ford Federal Direct Loan Federal Perkins Loan Federal TEACH Grant (loan)

Financial Aid Presentation NCASFAA/ NCSEAA 15 North Carolina Aid Programs (partial listing) NC Community College Grant UNC Need-Based Grant NC Education Lottery Scholarship NC Need-Based Scholarship Forgivable Education Loan for Service (NC FELS) NC REACH

Financial Aid Presentation NCASFAA/ NCSEAA 16 Institutional and Outside Aid Institutional Aid Grants & Scholarships Loan Programs Student Employment Outside Agencies Local Organizations Churches Civic Groups Parents’ Employers Veterans Administration

Scholarship Sources Internet searches: – – – – High school counselor College website Financial Aid Presentation NCASFAA/ NCSEAA 17

Financial Aid Presentation NCASFAA/ NCSEAA 18 What about Federal Loans? Federal Direct Subsidized and Unsubsidized Loans – 3.4% for subsidized for – 6.8% for unsubsidized Federal Perkins Loans—5% Federal Direct PLUS Loans – 7.9% – Parents of dependent students – Graduate or professional students

Financial Aid Presentation NCASFAA/ NCSEAA 19 Is that all there is? Private alternative loans for students or parents – Last resort--Always apply for federal loans first! College payment plans American Opportunity Credit, Lifetime Learning Credit, Tuition & Fees Deduction, Student Loan Interest Deduction

Financial Aid Presentation NCASFAA/ NCSEAA 20 Applying for Financial Aid Meet earliest deadline of colleges in which you are interested Complete all questions accurately Estimate if necessary to meet early deadlines Don’t wait until you are admitted to file the FAFSA Keep a FA Folder of all documents for your records

Financial Aid Presentation NCASFAA/ NCSEAA 21 Applying for Federal Financial Aid Free Application for Federal Student Aid (FAFSA) – File the FAFSA at % of forms are filed online! Can download worksheet if needed – Can obtain paper form: FED-AID ( ) – Complete FAFSA after January 1, 2013 for the academic year – Results available online in approx. 48 hours and then sent to the colleges you list on the FAFSA

What is a PIN? What is a Personal Identification Number (PIN)? – Issued to an individual and is a “signature” for Federal Student Aid purposes – Faster than using paper signature – PIN will expire if not used for 18 consecutive months – Parent’s PIN may be used for multiple children – Each student must have own PIN – Obtain PIN from Financial Aid Presentation NCASFAA/ NCSEAA 22

Starts in late February 2013 Available within 2-3 weeks of electronic tax filing Available within 8 weeks for paper tax filers Available to those who have filed taxes and now are: Completing the FAFSA Correcting their FAFSA (updating with IRS data) Does not apply to Married but file taxes separately Married, but file taxes Head of Household Marital status changed after 12/31/12 Those filing amended or foreign tax returns IRS Data Retrieval Tool (within FAFSA) IRS Data Retrieval Tool (within FAFSA)

To use the Tool, must have: A valid Social Security Number and Filed a 2012 federal tax return The exact street address used on the tax return! Filtering question on FAFSA helps determine if you can use IRS Data Retrieval Process meets verification requirements Secure and FAST option Students (and parents) not using the “Tool” and selected for verification: In most cases, must submit an IRS Tax Return Transcript rather than a Tax Return IRS Data Retrieval Tool

Financial Aid Presentation NCASFAA/ NCSEAA 25 Applying for Financial Aid Other forms ??? – Institutional application – College Scholarship Service PROFILE – State applications – Outside scholarship applications

Dependency Students are independent if: – 24 years old or older – Orphan, foster child/ward of the State – Have children or other dependents for whom they provide more than 50% support – Were legally emancipated or have a legal guardian as established by a court of law before turning 18 – Married – Veteran or on active duty – Graduate students – Homeless or at risk of homelessness Students not meeting one of the above must include parental information for full aid consideration. Financial Aid Presentation NCASFAA/ NCSEAA 26

Parents living and married to each other Parent widowed or single Parents divorced or separated—answer questions for parent with whom student lived more during past 12 months – If student lived with each parent exactly the same amount of time, answer for the parent who provided more financial support during the past 12 months or during the most recent year that the student actually received support from a parent If parent remarried, answer about that parent and the person whom parent married (stepparent) Who Are Considered Parents on the FAFSA? Who Are Considered Parents on the FAFSA? 27

Foster parents Legal guardians who have not adopted the student Relatives, such as grandparents, who have not adopted the student Stepparents who have not adopted the student and the natural parent in the household is deceased. Must use remaining biological/adoptive parent, if any. Who Are NOT Considered Parents on the FAFSA? Who Are NOT Considered Parents on the FAFSA? 28

Dependent Student Special Circumstance If parents refuse to complete FAFSA: Talk to financial aid office about exact circumstances. Student may be allowed to submit the FAFSA without parental information. Some students may only be eligible for an UNSUBSIDIZED Loan. Financial Aid Presentation NCASFAA/ NCSEAA 29

Before Beginning a FAFSA Gather the documents you need—tax returns, bank statements, SSNs, college list Print a FAFSA on the Web Worksheet if desired (optional) Apply for a PIN now for student and parent Financial Aid Presentation NCASFAA/ NCSEAA 30

FAFSA on the Web’s Homepage

Student Section (one screen) Financial Aid Presentation NCASFAA/ NCSEAA 32

Parent Section (one screen) Financial Aid Presentation NCASFAA/ NCSEAA 33

Message for Applicants Who Indicate They “Will File” Their Taxes

IRS Data Retrieval Tool Filtering Question Financial Aid Presentation NCASFAA/ NCSEAA 35

After completing the FAFSA, student and parent (if dependent) must sign by: – Entering PIN Both student and one parent should each have PINs OR – Print signature page, sign and mail to address provided within 7 days Financial Aid Presentation NCASFAA/ NCSEAA 36 Signing the FAFSA

Sign the Application and Submit by clicking “Submit My FAFSA Now” The Sign & Submit page includes the signature process for the student

Save Your Confirmation Page Next steps EFC estimate Pell Grant & Direct Loan estimates

Financial Aid Presentation NCASFAA/ NCSEAA 39 Need Help? FAFSA Day 2013 Saturday, February 23, 2013 – Any time between 9 a.m. and noon in most locations Get FREE help completing your FAFSA from college financial aid officers. Visit CFNC.org/fafsaday or call toll-free at CFNC (2362) to: – Learn more – Find closest location – Register for FAFSA Day Sponsored by: – College Foundation of North Carolina – North Carolina Association of Student Financial Aid Administrators, and – State Employees Credit Union

What happens after I file the FAFSA? 1.Complete verification if required. 2.Respond to any questions from the campus aid office. 3.Receive financial aid notification. 4.Reply if asked to aid offers (and admission). 5.Complete promissory note if borrowing money. 6.Notify campus of outside scholarships. Financial Aid Presentation NCASFAA/ NCSEAA 40

Financial Aid Presentation NCASFAA/ NCSEAA 41 Verification School may be required to request additional documentation for VERIFICATION of information – Most common items: – Requirement to go back and use IRS Data Retrieval Tool or provide IRS Tax Return Transcript – Listing of number in household and in college – Untaxed Income – only if reportable on the FAFSA – Confirmation of SNAP benefits or child support paid

Student Responsibility Review initial Student Aid Report for accuracy and correct any errors, or contact school if unsure Find out if your school requires other application materials such as CSS Profile Respond promptly to school’s request for information Read thoroughly award package, and take follow up steps, if required Financial Aid Presentation NCASFAA/ NCSEAA 42

Other Eligibility Criteria Men over 18 must register with Selective Service if not selected on FAFSA Student must be a U.S. citizen or eligible non- citizen Student must not have a drug conviction while receiving federal aid Students must make Satisfactory Academic Progress to continue receiving aid Financial Aid Presentation NCASFAA/ NCSEAA 43

Financial Aid Presentation NCASFAA/ NCSEAA 44 Special Circumstances Eligibility is based on the federal rules using prior year income, and assets at time FAFSA is filed Contact school’s Financial Aid Office to discuss changes or issues such as: – Change in employment status – Unusually high medical expenses – Inability to get parent information College will request additional documentation and make a decision about how to handle Decisions made at each school are final

Financial Aid Presentation NCASFAA/ NCSEAA 45 Offers to help get aid are everywhere: In the mail Over the Internet In newspapers In magazines Over the phone

Financial Aid Presentation NCASFAA/ NCSEAA 46 How do you identify offers that should be avoided? Organizations that offer to locate more aid and then charge you a fee Anyone who charges you a fee: for information about financial aid to complete the FAFSA to apply/receive a scholarship Organizations that guarantee you will get a scholarship or aid.

Financial Aid Presentation NCASFAA/ NCSEAA 47 Where can you find truly free information about financial aid? Contact College Foundation of North Carolina at CFNC.org or toll free at CFNC – Service of the State of North Carolina Talk to the college financial aid administrator Ask your high school counselor Visit the local library Apply for federal financial aid at FAFSA.gov (notice it is not FAFSA.com!)

Financial Aid Presentation NCASFAA/ NCSEAA 48 Additional Information College Foundation of North Carolina – Federal Department of Education – Student Financial Aid for North Carolinians – The Smart Student Guide to Financial Aid –

Learn Good Financial Habits Financial Literacy Information – Financial Aid Presentation NCASFAA/ NCSEAA 49

Summary Aid available from multiple sources Get your taxes done before March, if possible! Pay attention to all deadlines – More important now than ever – School and scholarship deadlines Use to complete, sign and submit application. Financial Aid Presentation NCASFAA/ NCSEAA 50

Questions? Financial Aid Office or website of prospective college is always your best source. SCC Financial Aid Office (828) Melody Lawrence (828) Financial Aid Presentation NCASFAA/ NCSEAA 51