2008 Counselor Workshop

Presenters

OASFAA Disclaimer ▼ The Ohio Association of Student Financial Aid Administrators (OASFAA) is a non-profit organization and provides the following information as a free service to access staff and high school counselors. Access staff and high school counselors have permission to copy and distribute these materials to their students and families. Charges may not be assessed for the material or for the information presented. Permission must be granted for other use of this information or these materials. Contact the Outreach Chairperson listed on the OASFAA web site or

Agenda ▼ Financial Aid Basics ▼ Applying for Financial Aid ▼ Changes to FAFSA and Need Analysis ▼ Federal Aid Programs ▼ State Aid Programs ▼ Resources

Financial Aid Money from a source other than the family to assist with the cost of attending college

Cost of Attendance ▼ Direct costs ▼ Indirect costs ▼ COA varies widely from college to college

Expected Family Contribution (EFC) ▼ Amount family can reasonably be expected to contribute ▼ Stays the same regardless of college ▼ Two components –Parent contribution –Student contribution ▼ Calculated using FAFSA data and a formula specified in law

Financial Need Cost of Attendance (COA) – Expected Family Contribution (EFC) =Financial Need

Need Comparison Higher Cost institution Mid Cost Institution Lower Cost Institution Cost of Attendance$40,000$25,000$13,000 - EFC$8,000 = Need/Eligibility$32,000$17,000$5,000 The Federal EFC is the same at each institution.

Categories of Aid ▼ Need-based aid ▼ Non need-based aid

Types of Aid ▼ Grants ▼ Scholarships ▼ Loans ▼ Employment

Sources of Aid ▼ Federal government ▼ States ▼ Colleges ▼ Private sources

FAFSA4caster ▼ What is the FAFSA4caster? –Provides an estimated Expected Family Contribution (EFC) –Calculate eligibility for federal aid, including grants –Reduce time to complete the Free Application for Federal Student Aid (FAFSA) –Access FAFSA4caster at

Who should use the FAFSA4caster? Students who want to get an early start on the application process ▼ Any student considering their financial options to help pay for a postsecondary education –High school juniors –Parents of younger students –Non-traditional students (adult learners)

Applying for Financial Aid

FAFSA Completion Resources ▼ ▼ FAFSA Tips Brochure ▼ FAFSA on the Web Tips Card ▼ College Goal Sunday

FAFSA ▼ Is produced by the U.S. Department of Education ▼ Collects family’s personal and financial information used to calculate student’s EFC ▼ Available in English and Spanish ▼ Available in three formats: –Electronic (FAFSA on the Web or FOTW) –PDF (available at –Paper

FAFSA on the Web ▼ Web site: ▼ FAFSA on the Web available on January 1, 2009 ▼ FAFSA on the Web Worksheet: –Used as “pre-application” worksheet –Questions follow order of FAFSA on the Web

FAFSA on the Web ▼ Built-in edits to help prevent costly errors ▼ Skip-logic allows student and/or parent to skip unnecessary questions ▼ More timely submission of original application and any necessary corrections ▼ More detailed instructions and “help” for common questions ▼ Ability to check application status on-line ▼ Simplified renewal application process

PIN Registration ▼ Web site: ▼ Can request PIN before January 1, 2009 ▼ Not required, but speeds processing ▼ May be used by students and parents throughout aid process, including subsequent school years

FAFSA ▼ FAFSA on the Web Worksheet –Instructions –8 pages –93 questions in 5 sections ▼ Paper FAFSA –Instructions – 4 pages –Application – 6 pages –Pantone Colors –Parents: Purple Pantone 263 –Students: Green Pantone 390C

FAFSA Changes Worksheets A, B, and C Effective for ▼ Excludes the following from Worksheet A and B –Earned Income Credit –Additional Child Tax credits –Welfare payments –Untaxed Social Security Benefits –Special Fuel Tax Credit –Excluded foreign income

FAFSA Changes Worksheets A, B, and C Effective for ▼ Eliminates foreign income exclusions and credit for federal tax on special fuels from Worksheet B ▼ Worksheet questions will become individual data elements and each data element will be listed on the ISIR

FAFSA Changes ▼ Worksheet A deleted ▼ Worksheet B now titled “Untaxed Income” – Q 46 for student and Q 94 for parent ▼ Worksheet C now titled “Additional Financial Information” – Q47 for student and Q95 for parent

FAFSA Changes ▼ Veterans Benefits Effective for ▼ Provides educational assistance to individuals who have served on active duty on or after 9/11/2001 ▼ Veterans questions have been changed to determine the type of veterans education benefits a student receives

FAFSA Changes ▼ Changes to Dependency Status Criteria Effective for ▼ Adds to Independent Student Definition –Emancipated Minors –Legal Guardianship ▼ Adds question for emancipated minors and a question for individuals under legal guardianship ▼ Both require a determination from a court in the student’s state of legal residence

FAFSA Changes ▼ Changes to Dependency Status Criteria (cont.) Effective for ▼ Adds to Independent Student Definition –Individuals in foster care after the age of 13 ▼ Changes criteria for dependents/wards of the court to be considered independent. Must now be age 13 or older. ▼ Question about orphans and dependents/ward of the court updated to include foster care ▼ Added criteria for age 13 or older

FAFSA Changes ▼ Changes to Dependency Status Criteria (cont.) Effective for ▼ Adds to Independent Student Definition –Homeless Unaccompanied Youths –Youths at Risk of Homelessness

FAFSA Changes ▼ Changes to Dependency Status Criteria (cont.) Effective for ▼ Adds questions for students that meet the homeless unaccompanied youth criteria established in the McKinney-Vento Homelessness Act and the Runaway and Homeless Youth Act ▼ Students should have a determination from a homeless liaison, HUD emergency shelter, runaway or homeless center, or transitional living program

FAFSA Changes Effective for ▼ Created the Teacher Education Assistance for College and Higher Education (TEACH) Grant ▼ New question added to provide colleges with information on students that are interested in the TEACH Grant ▼ Students who indicate an interest in the TEACH Grant receive a detailed FACT sheet with their Student Aid Report

FAFSA Changes ▼ Qualified Education Benefits (529 Plans) Effective for ▼ Qualified Education Benefit (529 Plan) owned by the student is an asset of the parent ▼ Distributions from 529 Plans are excluded from other financial assistance

FAFSA Changes Federal Means Tested Benefits Effective for ▼ Increases time for federal means tested benefits to 24 months ▼ Impacts Simplified Needs Test and auto-zero EFC ▼ Questions for independent student and parents updated to account for two years instead of one

FAFSA Changes ▼ Dislocated Worker Effective for ▼ Adds Dislocated Worker in addition to type of tax return and federal means tested benefits test for SNT/Auto Zero EFC ▼ Questions for independent student and parents added

▼ CCRAA Changes - –Updates Income Protection Allowances –Increases Automatic Zero EFC income parameter to $30,000 –Dislocated worker becomes an eligibility criteria for Simplified Needs Test (SNT) and Automatic Zero EFC Applicant qualifies for SNT or Automatic Zero EFC, as appropriate, if parent of a dependent student, or an independent student - –Answers “Yes” to Dislocated Worker question, and –Meets SNT and/or Auto Zero income thresholds Need Analysis Changes

Frequent FAFSA Errors ▼ Parent and student Social Security Numbers ▼ Divorced/remarried parental information ▼ Income earned by parents/stepparents ▼ Untaxed income ▼ U.S. income taxes paid ▼ Household size ▼ Number of household members in college ▼ Real estate and investment net worth

FAFSA Processing Results Central Processing System (CPS) notifies student of FAFSA processing results by: ▼ Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s address was not provided ▼ SAR Acknowledgement if filed electronically via FAFSA on the Web and student’s address was not provided

FAFSA Processing Results ▼ CPS notifies student of FAFSA processing results by: – notification containing a direct link to student’s on-line SAR if student’s was provided on paper or electronic FAFSA ▼ Student with PIN can view SAR on-line at

Making Corrections If necessary, corrections to FAFSA data may be made by: ▼ Using FAFSA on the Web ( if student has a PIN; ▼ Updating paper SAR (SAR Acknowledgement cannot be used to make corrections); or ▼ Submitting documentation to school’s financial aid office

Verification ▼ Selected by the Central Processing System (CPS) or the Institution ▼ Keep copies of 2008 Tax documents ▼ If selected, completion is required before aid can be disbursed ▼ Verification materials are sent to the financial aid office, not federal processor

Special Circumstances ▼ Can’t include on FAFSA ▼ Contact each college student has applied to ▼ Each college will: –Request documentation –Review situation on case by case basis –Decisions final and cannot be appealed to U.S. Department of Education

Special Circumstances ▼ Examples Reported to the Financial Aid Office –Parent loss of income –Marital Status changing from married/remarried to one parent –Medical not covered by insurance –Property loss not covered by insurance –Unusual debt or one-time income –Tuition expenses at an elementary or secondary school –Parent in college

Special Circumstances ▼ Dependent students having difficulty obtaining parental information –May submit incomplete FOTW –FOTW provides examples of acceptable and unacceptable special circumstances –Students should contact financial aid office at their college –Students must document their special circumstance

FSApubs ▼ FSAPubs is the one-stop source for ordering all of Federal Student Aid’s free publications. ▼ ▼

FSApubs ▼ Paper FAFSAs will not be available for order in bulk. ▼ The FAFSA on the Web Worksheet will still be available for bulk order by schools. ▼ Students will be able to obtain up to 3 paper FAFSAs by calling the Federal Student Aid Information Center at FED-AID ( ) or by visiting

Federal Financial Aid Programs

▼ Federal Pell Grant –need-based as determined by the Free Application for Federal Student Aid (FAFSA) –EFC less than 4042 –Maximum award for is $4731, –Maximum award for has not yet been finalized

Academic Competitiveness Grant (ACG) –$750 to first year students ($1,300 to second year students) Federal Pell Grant recipient for same award year First or second year student in: A two or four year degree program; or A one or two year certificate program offered at a two or four-year degree-granting institution

ACG Rigorous Program Options ▼ Completion of a rigorous secondary school program –Coursework designated by the Secretary – Ohio Honors Diploma – Successful completion of any secondary school program for a student who completes at least two courses with a minimum passing test score on the exams in those courses

How Students Apply for ACG: ▼ Submit FAFSA on the web ▼ Submit Paper FAFSA ▼ Self identify to financial aid office at college

SMART (National Science and Math Access to Retain Talent) Grant Awarded to students in specific majors in the areas of Science, Math and Language Studies Students must have a college GPA of 3.0 A federal grant awarded to third and fourth year college students. Must be Pell eligible, full-time, and a US Citizen Eligibility is certified by the school. The maximum award is $4,000 per year.

Federal TEACH Grant –provides grants of up to $4,000 per year to students who intend to teach in a public or private elementary or secondary school that serves students from low-income families. –Maximum of $16,000 for undergraduate and post-baccalaureate students – $8,000 for graduate students or current or former teachers or retirees

Federal TEACH Grant ▼ Must file the FAFSA –Question on the FAFSA asks if the student plans to become a teacher –US Citizen or eligible non-citizen –Pro-rated for less than full-time –Must have scored above the 75 th percentile on 1 battery of an admissions test –or- have and maintain a 3.25 GPA

Federal TEACH Grant ▼ Must be repaid as a Direct unsubsidized Loan if student does not teach – –For at least four years within eight years of completing program, as a Highly Qualified Teacher At a Title I school In a specified subject area

Federal Loans ▼ Federal Stafford/PLUS and William D. Ford Direct Stafford/ PLUS Loan are basically the same program. With the Direct loan, the funds are drawn down by the school directly from the federal government, thus the name. The FFEL Stafford loan, the funds are secured by a bank or lender through a guarantee agency and sent to the school for the student. The school selects the federal program in which they wish to participate. ▼ Schools in the FFEL Stafford Loan Program and PLUS program may use a Preferred Lender List Many schools have a preferred lender list. These lists are established with the borrower’s best interest in mind. Schools take time to review borrower benefits for the student and parent. But, it is import to stress that students have a right to borrow from any lender they choose.

Federal Loans ▼ Federal Stafford/Federal Direct Loan A federal loan program with two types of awards— 1. Subsidized Need based. Interest is fixed at 5.6% for all new loans disbursed after July 1, Interest is subsidized while the student is in school during deferment. 2. Unsubsidized Not based on financial need. Interest is fixed at 6.8% for all new loans disbursed after July 1, Interest accrues from time of disbursement of the funds.

Federal Loans Class YearBase AmountAdditional Unsubsidized Amount Total Available to Borrow Freshman$3,500$2,000$5,500 Sophomore$4,500$2,000$6,500 Junior$5,500$2,000$7,500 Senior$5,500$2,000$7,500 Independent Students and Dependent Students whose parents have been denied the PLUS Loan are eligible for additional Unsubsidized Stafford Loans ($4,000 as freshman and sophomores and $5,000 as juniors and seniors)

Federal Loans ▼ 0.5% Origination Fee for Stafford Loans effective July 1, 2009 (deducted from the borrowers disbursement). ▼ The origination fee will drop by a 0.5% each successive July 1, until it is phased out entirely on July 1, ▼ 1% default fee (deducted from the borrowers disbursement).

Federal Loans ▼ PLUS Loans –Loans to parents of dependent students. –Loan limits are up to the cost of education less any financial aid received per academic year. – The interest rate is 8.5% for FFEL and 7.9% for Direct (program is selected by school) – Repayment begins within 60 days of full disbursement, but payments may be deferred while the student is in school. –3% Origination Fee for PLUS Loans (deducted from the borrower’s disbursement). –1% default fee (deducted from the borrower’s disbursement).

Federal Loans Are Available ▼ The U.S. Department of Education is ensuring students and their families will continue to have uninterrupted and timely access to Federal student loans by taking steps to maintain stability in student lending through both the Federal Family Education Loan Program (FFELP) and Direct Loan Program.

Federal Financial Aid Programs ▼ Campus-Based Programs –Federal Supplemental Educational Opportunity Grant (SEOG) –Federal Work-Study –Federal Perkins Loan

State Financial Aid Programs

State Updates ▼ Soon after taking office, Governor Strickland announced that he wants an additional 230,000 Ohioans enrolled in college within 10 years, and he wants improved graduation rates. ▼ As one of his first steps toward making college more accessible and affordable, state supported schools of higher education agreed to freeze tuition with a $1 billion incentive from the state. The tuition freeze continues for the academic year. ▼ Chancellor Fingerhut has introduced a 10 year Strategic Plan for Higher Education. The plan promises to raise the overall educational attainment of the state of Ohio and builds upon the principles put forth last year in creating the University System of Ohio. –The Strategic Plan is available online at:

State Updates Full Phase in of Ohio College Opportunity Grant (OCOG) in — ▼ Based on the family’s Expected Family Contribution (EFC) as determined by the FAFSA. The maximum EFC for OCOG eligibility is 2190 and the family income limit is $75,000. –Part-time students are eligible. ▼ The maximum awards for are $2496—2 yr & 4 yr public schools; $ yr private schools; $3996- proprietary schools. ▼ The deadline to apply for OCOG is October 1.

State Updates Ohio Student Choice Grant ▼ For Ohio residents who attend an Ohio private, non-profit college for the first time after ▼ Must be enrolled in a Bachelor’s degree program ▼ $660 in ▼ Is not likely to be available in

State Updates ▼ Ohio’s College Access Information Hotline : I-ATTAIN ▼ Ohio College Access Portal ▼ –Primary target: low-income, first generation students in grades 8-10

State Updates ▼ The Ohio GI Promise – – VETS-OH-1 ▼ Ohio Teachers Corp ▼ A qualifying teacher is: ▼ A first-year teacher defined as first day of teaching falling on or after July 1, 2008 ▼ Appropriately licensed and assigned to teach in the subject area of foreign language, science or mathematics ▼ Under contract to teach in a hard-to-staff school and commits to continue to do so for a minimum of five (5) years –

Resources

studentaid.ed.gov

Are You Getting the Message?

college.gov

College Goal Sunday ▼ Sunday, February 8, 20092:00pm ▼ Locations throughout Ohio ▼ College Goal Sunday offers the opportunity to have expert help completing the Free Application for Federal Student Aid (FAFSA). ▼ Financial aid professionals from Ohio colleges & universities will be available walk you and your family through the financial aid process. ▼ College Goal Sunday is brought to you by the Ohio Association of Student Financial Aid Administrators (OASFAA). ▼ Need Information for College Goal Sunday? Call Ohio’s College Access Information Hotline or

▼ Thank you for attending the 2008 Counselor Workshops!