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What You Need to Know About Financial Aid. Topics We Will Discuss Tonight O What is financial aid? O Cost of attendance (COA) O Expected family contribution.

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Presentation on theme: "What You Need to Know About Financial Aid. Topics We Will Discuss Tonight O What is financial aid? O Cost of attendance (COA) O Expected family contribution."— Presentation transcript:

1 What You Need to Know About Financial Aid

2 Topics We Will Discuss Tonight O What is financial aid? O Cost of attendance (COA) O Expected family contribution (EFC) O Financial need O Categories, types, and sources of financial aid O Free Application for Federal Student Aid (FAFSA) O Special circumstances

3 What is Financial Aid? Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses

4 What is Cost of Attendance (COA)? Includes: O Tuition & Fees O Room & Board O Books, supplies, transportation, and misc. personal expenses Sometimes can include O Loan fees O Study abroad costs O Dependent care expenses COA Varies widely from college to college

5 What is Expected Family Contribution (EFC)? O Amount family can reasonably be expected to contribute O Stays the same regardless of college O Two components O Parent contribution O Student contribution O Calculated using data from a federal application form and a federal formula

6 What is Financial Need? Cost of Attendance – Expected Family Contribution = Financial Need

7 Need Varies Based on Cost

8 Categories of Financial Aid O Need-based aid O Non-need-based aid

9 Types of Financial Aid Scholarships Grants Loans Employment Gift Aid Self-Help Aid

10 Gift Aid: Scholarships/Grants O Money that does not have to be paid back O Awarded on the basis of merit, skill, or unique characteristic O Usually awarded on the basis of financial need

11 Self-Help Aid: Loans O Money students and parents borrow to help pay college expenses O Repayment usually begins after education is finished O Only borrow what is really needed O Look at loans as an investment in the future

12 Self-Help Aid: Work-Study Employment O Allows student to earn money to help pay educational costs O A paycheck; or O Nonmonetary compensation, such as room and board O Student may opt the number of hours to work

13 Sources of Financial Aid O Federal government O States O Colleges and universities O Private sources O Civic organizations and churches O Employers

14 Federal Government O Largest source of financial aid O Aid awarded primarily on the basis of financial need O Must apply each year using the FAFSA

15 States O Residency requirements usually apply O Award aid on the basis of both merit and need O Use information from the FAFSA and/or state aid applications O Deadlines vary by state O Check paper FAFSA or FAFSA on the Web site

16 State of Kansas Scholarships and Grants O Kansas Comprehensive Grant O Kansas State Scholarship O Kansas Ethnic Minority Scholarship O Career Technical Workforce Grant (formerly the Kansas Vocational Scholarship) O Kansas Career Work Study Program O Military Service Scholarship (FY 08)

17 State of Kansas Scholarships and Grants O Fee Waiver Programs O Dependents & Spouses of Deceased Public Safety Officers, and Military Personnel O Former Prisoners of War O ROTC Tuition Waiver O Kansas Teacher Service Scholarship O Kansas Nursing Service Scholarship O National Guard Educational Assistance Program

18 Private Sources O Foundations, businesses, charitable organizations O Deadlines and application procedures vary widely O Begin researching private aid sources early

19 Civic Organizations and Churches O Research what is available in community O To what organizations and churches do student and family belong? O Application process usually occurs during spring of senior year O Small scholarships add up!

20 Employers O Companies may have scholarships available to the children of employees O Companies may have educational benefits for their employees

21 Federal Student Aid Programs O Federal Pell Grant O Teacher Education Assistance for College and Higher Education (TEACH) Grant O Federal Supplemental Educational Opportunity Grant (FSEOG) O Federal Perkins Loan O Federal Work-Study (FWS) O Subsidized and Unsubsidized Federal Direct Student Loans (Direct Loans) O PLUS Loans

22 Federal Pell Grant O Awarded amount based on EFC, COA, and enrollment status (full-time, half-time, etc.) O Generally awarded to undergraduate students only, few exceptions O Maximum award for 2014-2015 = $5,730

23 TEACH Grant O U.S. citizen O Be enrolled in course work that is necessary to begin a career in teaching or plan to complete such course work. O Meet certain academic achievement requirements O Sign a TEACH Grant Agreement to Serve O Teach full time as a highly qualified teacher at a low income school in a high need field for 4 years after degree completion. O If you do not complete the required teaching service obligation, TEACH grant funds you received will be converted to a Federal Direct Unsubsidized Stafford Loan that you must repay, with interest charged from the date of each TEACH Grant disbursement.

24 FSEOG (Federal Supplemental Educational Opportunity Grant) O Annual award amounts vary between school from $100 to $4,000 a year O Students with the lowest EFC’s must be awarded first O Priority goes to Federal Pell Grant recipients

25 Federal Work Study (FWS) O Provides part-time employment while students are enrolled O Employment may be on or off campus O Even if you don’t qualify for FWS you may still be able to have an on campus job! O Inquire about jobs at your college’s Student Employment Office

26 Federal Perkins Loan O Priority to students who show exceptional need O Interest rate: 5% fixed O Nine month grace period, repayment may be up to 10 years O Deferment and cancellation provisions available for qualifying employment O Maximum annual award O $4,000 for undergraduate students O $6,000 for graduate students

27 Federal Direct Loans O Subsidized O must demonstrate need O U.S. Department of Education will pay (subsidize) the interest that accrues while in school O Unsubsidized O not based on need O most everyone can qualify

28 Direct Loans – Annual Loan Limits O Annual Loan Limits (combined subsidized and unsubsidized) Classification Dependent Independent Freshman $5,500 $9,500 Sophomore $6,500 $10,500 Each remaining year $7,500 $12,500 Graduate/Professional N/A $20,500

29 Direct Loans O The current interest rate on 2014-15 Undergraduate Direct loans (subsidized and unsubsidized) first disbursed on or after July 1, 2014 is 4.66%. Each year the interest rate will change based on the market. O Repayment begins after 6 month grace period O Maximum repayment period between 10 and 30 years

30 Plus Loans O Parents of dependent undergraduate students O Graduate/Professional students O Repayment begins immediately but can be deferred upon request O 2014-15 Direct interest rate: 7.21% (will change annually based on the market) O If a parent is unable to borrow (denied) a parent PLUS loan, a student may be eligible for additional unsubsidized loan

31 Free Application for Federal Student Aid (FAFSA) O A standard form that collects demographic and financial information about the student and family O May be filed electronically or using paper form O Available in English and Spanish

32 FAFSA O Information used to calculate the expected family contribution (EFC) O Amount of money a student and his or her family may reasonably be expected to contribute towards the cost of the student’s education for an academic year O Colleges use EFC to award financial aid

33 FAFSA O May be filed at any time during an academic year, but no earlier than the January 1 st prior to the academic year for which the student requests aid O For the 2015–16 academic year, the FAFSA may be filed beginning January 1, 2015 O Most colleges set FAFSA filing deadlines

34 FAFSA on the Web O Website: www.fafsa.govwww.fafsa.gov O 2015–16 FAFSA on the Web available on January 1, 2015 O FAFSA on the Web Worksheet: O Used as “pre-application” worksheet O Questions follow order of FAFSA on the Web

35 Why use FAFSA on the Web? O Built-in edits to prevent costly errors O Skip-logic allows student and/or parent to skip unnecessary questions O Option to use Internal Revenue Service (IRS) Data Retrieval Tool to import tax data O More timely submission of original application and any necessary corrections O More detailed instructions and “help” for common questions O Ability to check application status online O Simplified application process in the future

36 IRS Data Retrieval Tool O While completing FOTW, applicant may submit real-time request to IRS for tax data O IRS will authenticate taxpayer’s identity O If match found, IRS sends real-time results to applicant in new browser window O Applicant chooses whether or not to transfer data to FOTW

37 IRS Data Retrieval Tool O Available early February 2015 for 2015–16 processing cycle O Participation is voluntary O Reduces documents requested by financial aid office

38 IRS Data Retrieval Tool Some will be unable to use IRS DRT. Examples include: O Filed an amended tax return O No SSN was entered O Student or parent married but filed separately

39 Federal Student Aid Personal Identification Number (FSA PIN) O Website: www.pin.ed.govwww.pin.ed.gov O Sign FAFSA electronically O Not required, but speeds processing O May be used by students and parents throughout aid process, including subsequent school years

40 FAFSA PIN Changes O FSA is adopting the best practice of using a username and password instead of personal information O The FSA ID O Requires users to enter less info (2 fields instead of 4) O Provides more secure access to user’s information O Links to PIN information during registration O Offers self – service capability (name change) 4/25/15. O The FSA ID (username and password) will replace PIN for students, parents and borrowers accessing FSA systems starting on 4/25/15.

41 FAFSA PIN Changes O What happens for new user? O Registration requests same required information as PIN O New users will be directed to the registration page to create an FSA ID (username and password) similar to today’s PIN creation page O What happens if I have a PIN already? O During account creation, user will be asked for their PIN. O As long as the PIN information matches their other information, the account will be linked to the FSA ID account O Will the changes affect a user’s ability to access previous FAFSA submissions? O If the user links their PIN, they will have access to previous FAFSA submissions

42 FAFSA on the Web Worksheet 2015–16 FAFSA on the Web Worksheet contains: O Instructions O Questions that gather basic information on student and parent, if applicable

43 Login: (Student’s Info) First Name Last Name SSN Date of Birth

44 44

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

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

47 FAFSA Processing Results O CPS notifies student of FAFSA processing results by: O Email notification containing a direct link to student’s online SAR if student’s email was provided on paper or electronic FAFSA O Student with PIN may view SAR online at www.fafsa.gov www.fafsa.gov

48 FAFSA Processing Results O Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA is submitted O Most schools won’t begin processing aid for 2015-16 until late March or April O College reviews ISIR O May request additional documentation

49 Student Aid Report O Review data for accuracy and correct any errors O Update estimated tax information when actual figures become available

50 Making Corrections O Using FAFSA on the Web (www.fafsa.gov) if student has a PIN;www.fafsa.gov O Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or O Submitting documentation to college’s financial aid office

51 Special Circumstances O Cannot be documented using FAFSA O Send written explanation and documentation to financial aid office at each college O College will review and request additional information if necessary O Decisions are final and cannot be appealed to U.S. Department of Education

52 Special Circumstances O Change in employment status O Unusual medical expenses not covered by insurance O Change in parent marital status O Unusual dependent care expenses O Student cannot obtain parental information

53 CAUTION!!! O Avoid being charged a fee to file the FREE Application for Federal Student Aid O Completion and processing of the FAFSA are FREE O www.fafsa.gov www.fafsa.gov

54 Where do I go from here? O Obtain and review admissions and financial aid Web sites and materials for each school to which you are applying. O Meet all application deadlines. O Complete FAFSA and other application materials. Submit all requested follow-up documents. O Investigate other sources of aid.

55 College Goal Sunday February 22, 2015 2:00 – 4:00 pm Visit www.CollegeGoal.orgwww.CollegeGoal.org for more information 55

56 Questions?


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