What You Need To Know About Financial Aid Presented by Suzanne Hanlon, Financial Aid Officer from the University of Connecticut’s Office of Student Financial Aid Services Ellington High School November 24, 2015

Topics to Discuss Topics Cost of Attendance (COA) Expected Family Contribution (EFC) To Financial Need Types of Financial Aid Discuss Free Application for Federal Student Aid (FAFSA) Post – Application Processes

TuitionFees Room and Board (students living on campus) Direct Costs BooksTransportation Miscellaneous Indirect Costs What is Cost of Attendance (COA)?

What is the Expected Family Contribution (EFC)? The measure of a family’s financial strength as it relates towards subsidizing an education for one year Determines the types and amounts of aid that students are eligible to receive Calculated based on the information provided on the FAFSA

What is Financial Need? $ Cost of Attendance (COA) Expected Family Contribution (EFC) Expected Family Contribution (EFC) $ Financial Need $ Financial Need

“Need” Differs Based on Cost Cost of Attendance (variable) Expected Family Contributions (constant) $24,000 Need (variable) EFC$7,000 $33,000 $17,000 − = $40,000 $8,000 $1,000 EFC$7,000

Types of Financial Aid ScholarshipsGrantsLoansEmployment

Scholarships  Local businesses and civic organizations  State Department of Education  School Counselor  Places of Employment  Internet  College or University Academic Athletic Departmental

Federal Grants Pell Grant TEACH Federal Supplemental Education Opportunity Grant (FSEOG)

Federal Loans Perkins Loan Direct Subsidized Stafford Loans Direct Unsubsidized Stafford Loans Parent Plus Loan

Federal Work Study Institutional Labor Student Employment

Financing Alternatives Monthly Payment Plans Alternative/Private Loans Strongly consider Federal loans first

THE FINANCIAL AID APPLICATION PROCESS 13

How Do I Apply? Application Used primarily by private colleges Institutional Applications Check school publications and websites FAFSA – The Free Application for Federal Student Aid Required for Most Aid

Who is Eligible for Federal Aid ? Must be enrolled or accepted in eligible program of study Must be pursuing degree, certificate, or other recognized credential Must be a U.S citizen or eligible non-citizen Eligibility may be suspended due to drug- related conviction Must have a valid Social Security Number (SSN) Must continue to make Satisfactory Academic Progress (SAP) Must not be in default on a federal student loan Must not owe an overpayment of federal grant or loan funds Males must be registered with Selective Service

 Web site: fafsa.ed.gov  Click the FSA ID icon to apply  Sign FAFSA electronically  May be used by students and parents throughout aid process, including subsequent school years FAFSAs and signing Federal Direct Loan Master Promissory Notes (MPN) 16 Obtain Federal Student Aid ID (FSA ID) for Student & Parent Tip: Get student AND parent FSA ID (1 each) now!

FAFSA: General Information Section Student Demographic Information Citizenship InformationDrug Conviction StatusType of Degree Grade Level for the school year Parental Educational Background Dependency Status What is a Parent Definition Household Information

Tips for Student/Parent Income Information Section OK to estimate and correct later using the IRS Data Retrieval Tool (DRT) Tax Filing Status and type of return AGI not always the same as income earned from work on W-2 form Income from work – include Self Employment Federal Income Tax –liability may not match W2

Tips for Asset/Investment Information Section

Tips for Asset/Investment Information Section Continued Cash, savings, checking account balances Net worth of rental/investment properties Educational benefit/savings accounts (529) Net worth of family business if over 100 employees Net worth of investment farm Include :

How the IRS Data Retrieval Works Data Retrieval Tool Imports Tax Information directly from IRS to FAFSA Data Retrieval Tool is available early February for the processing cycle Student and parent choose whether or not to transfer data to the online FAFSA Data Retrieval Tool is not available for all filing statuses Data Retrieval is available to use two to three weeks after parent or student tax returns have been processed by the IRS. If tax information is requested by the Financial Aid Office, you may also obtain “IRS Tax Return Transcript” on IRS web site.

Additional Tips for Income Information Section Untaxed Income Include Annual IRA/pension contributions Workman’s Compensation Untaxed Disability Untaxed IRA Distributions/Pension/Interest Child Support Received Do Not Include Unemployment Compensation Untaxed Social Security Benefits SSI, IRA Rollovers Other Such Specified Income Scholarship Amounts Received

Additional Tips Federal School Codes needed for each college Can enter up to 10 school codes – FAFSA information is sent to each school listed Housing Plans On/Off Campus or Living with Parent For Dependent Students Both Parent and Student must sign with separate FSA ID each time the application is submitted

For aid applications beginning for the award year Available Fall 2016 Use tax information from two years ago Enables more users to use the IRS DRT 2015 tax information will be used for and for

What To Do After You File Your FAFSA 31

32 What’s Next? Student submits completed FAFSA Federal processor determines Expected Family Contribution (EFC) Federal processor sends Student Aid Report (SAR), which includes your EFC and comments for review Using your EFC, your prospective college determines your financial need Prospective college sends student a financial aid award

What’s Next? Continued…..

Tips for Making Informed Financial Aid Decisions Never Decline Aid You Do Not Understand Do your research Contact you school’s Financial Aid Office Consider Federal Loans before Private Loans If necessary, research for private loan lenders Consider the Long-Term Cost of Borrowing – Great resourcewww.finaid.org Student Loan Repayment Calculators

Federal Student Aid  US Dept. of Education  Free Application for Federal Student Aid (FAFSA)  FAFSA Information  FAFSA4Caster: Online Eligibility Estimator  FED-AID ( )  TTY: College Goal Sunday:  January Resources

QUESTIONS??? 36