1. What You Need To Know About Financial Aid www.mtmc.edu

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

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

4. What is Cost of Attendance (COA) Direct costs ( Tuition, Fees, On-Campus Room & Board ) Indirect costs ( Transportation, Personal, Off-Campus Room & Board ) Direct and indirect costs combined into cost of attendance Varies widely from college to college

5. What is the Expected Family Contribution (EFC) Measure of family’s financial strength Calculated using FAFSA data and a federal formula Two components Parent contribution Parent contribution Student contribution Student contribution Stays the same regardless of college

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

7. Types of Financial Aid ScholarshipsGrantsLoansEmployment Gift Aid Self-Help Aid

8. Gift Aid: Scholarships Money that does not have to be paid back Awarded on the basis of merit, skill, or a unique characteristic

9. Gift Aid: Grants Money that does not have to be paid back Usually awarded on the basis of financial need

10. Self-Help Aid: Loans Money students and parents borrow to help pay educational expenses – must be paid back Repayment usually begins after education is finished Only borrow what is really needed Look at loans as an investment in the future

11. Self-Help Aid: Employment Allows student to earn money to help pay educational costs Receive a paycheck

12. Sources of Financial Aid Federal government States Private sources Civic organizations and churches EmployersColleges

13. States Offer both merit-based and need-based aid Usually have residency requirements May have service requirements Deadlines vary by state SD Opportunity Scholarship SD Opportunity Scholarship Dakota Corps Scholarship Dakota Corps Scholarship Jump Start Scholarship Jump Start Scholarship SD Need-Based Grant SD Need-Based Grant

14. Federal Government Largest source of financial aid Aid awarded primarily on the basis of financial need Must apply every year using the Free Application for Federal Student Aid (FAFSA)

15. Common Federal Aid Programs Federal Pell Grant Iraq and Afghanistan Service Grant (IASG) Teacher Education Assistance for College and Higher Education Grant (TEACH) Federal Supplemental Educational Opportunity Grant (FSEOG) Federal Work-Study Federal Direct Loans (Subsidized & Unsubsidized) Federal Direct PLUS Loans

16. Federal Pell Grant Awarded to eligible undergraduates pursuing first baccalaureate degree Portable Maximum award for 2015-16 = $5,775 Actual award based on student’s COA, EFC and enrollment status

17. TEACH Grant Available to students who plan to teach in a high-need field at a low-income school district High Need Fields: High Need Fields: Bilingual Education/English Language Acquisition Foreign Language Mathematics Reading Specialist Science Special Education Provides up to $4,000 per year but due to Sequestration it was reduced to $3,728 Requires repayment as a Direct Unsubsidized loan if specified teaching requirement is not met

18. TEACH Grant continued Teaching Service Requirement is four years (within 8 years) of full-time teaching Must teach in a Title I (low income) elementary or secondary school as a “Highly Qualified Teacher” Institution has the option to participate in TEACH Grant Program More information and list of participating institutions available at http://studentaid.ed.gov/types/grants-scholarships/teach

19. Iraq and Afghanistan Service Grant (IASG) Your parent or guardian was a member of the U.S. armed forces and died as a result of military service performed in Iraq or Afghanistan after the events of 9/11, and You were under 24 years old or enrolled in college at least part-time at the time of your parent’s or guardian’s death. Grant award is equal to the amount of a maximum Pell Grant for the award year – but, due to Sequestration is now reduced by 6.8%.

20. Campus-Based Programs Federal Supplemental Educational Opportunity Grant (FSEOG) Federal Work-Study

21. Federal Supplemental Educational Opportunity Grant (FSEOG) Eligible Students Undergraduates pursuing first bachelor’s or professional degree. Undergraduates pursuing first bachelor’s or professional degree. Awarded first to students with exceptional financial need (i.e., students with the lowest EFC’s at that school) Awarded first to students with exceptional financial need (i.e., students with the lowest EFC’s at that school) Priority to Federal Pell Grant recipients Priority to Federal Pell Grant recipients Annual Award Amounts $100 minimum $100 minimum $4,000 maximum $4,000 maximum

22. Federal Work-Study (FWS) Eligible Students Undergraduate or graduate students Undergraduate or graduate students Eligible employers, on- or off- campus School School Federal, state, or local public agency Federal, state, or local public agency Private non-profit organization Private non-profit organization For-profit organization For-profit organization Schools must use portion of FWS funds for community service employment activities

23. Federal Direct Loan Largest source of low interest loans administered by Department of Education Available to students enrolled at least half-time Funds provided directly by federal government School determines loan eligibility & delivers proceeds to students

24. Federal Direct Loan Subsidized: Must demonstrate “need” Unsubsidized: Need is not considered Base annual loan limits (combined subsidized & unsubsidized): $3,500 1 st year undergraduates $3,500 1 st year undergraduates $4,500 2 nd year undergraduates $4,500 2 nd year undergraduates $5,500 each remaining undergraduate year $5,500 each remaining undergraduate year $20,500 (all unsubsidized) for each year of graduate / professional study $20,500 (all unsubsidized) for each year of graduate / professional study

25. Federal Direct Loan Additional Unsubsidized Direct Loan eligibility For dependent undergraduate students: $2,000 per year For independent undergraduate, & dependent undergraduate students whose parents are unable to borrow PLUS: For independent undergraduate, & dependent undergraduate students whose parents are unable to borrow PLUS: $6,000 per year for first & second years of undergraduate study $7,000 per year for remaining years of undergraduate study

26. Federal Direct Loan Cost of Borrowing Fixed interest rate of 4.29% ( undergraduate Subsidized and Unsubsidized Direct Loan as of July 1, 2015 ); 5.84% ( graduate / professional students Unsubsidized Direct Loan as of July 1, 2015) Fees: 1.068% 6-month grace period Maximum repayment period between 10 & 30 years Deferments & cancellations available

27. Federal Direct PLUS Loan Parents of dependent students Graduate and Professional students Annual limit: cost of attendance less all other aid Fixed interest rate of 6.84% 4.272% origination fee Repayment begins 60 days after final disbursement Deferment available for any period undergraduate student is enrolled at least ½ time

28. Other Government Resources Corporation for National and Community Service (AmeriCorps) – www.americorps.gov www.americorps.gov Veterans Benefits – www.benefits.va.gov www.benefits.va.gov ROTC Scholarships or stipends Bureau of Indian Affairs (BIA) Grants – www.bie.edu www.bie.edu State Divisions of Vocational Rehabilitation US Dept. of Health & Human Services (HHS) – www.nhsc.hrsa.gov

29. Free Application for Federal Student Aid (FAFSA) A standard form that collects demographic and financial information about the student and family May be filed electronically or using paper form Available in English and Spanish Available in English and Spanish Information used to calculate the Expected Family Contribution or EFC Colleges use EFC to award financial aid

30. FAFSA continued 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 For the 2016-17 academic year, the FAFSA may be filed beginning January 1, 2016 Colleges may set FAFSA filing deadlines

31. FAFSA on the Web Web site: www.fafsa.gov 2016-17 FAFSA on the Web available on January 1, 2016 FAFSA on the Web Worksheet: Used as “pre-application” worksheet Questions follow order of FAFSA on the Web

32. FAFSA on the Web Good reasons to file electronically: Built-in edits to 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 application process in the future Option to use IRS data retrieval to import tax data

33. IRS Data Retrieval While completing FOTW, applicant may submit real-time request to IRS for tax data IRS will authenticate taxpayer’s identity If match found, IRS sends real-time results to applicant in new window Applicant chooses whether or not to transfer data to FOTW Available early February 2016 for 2016-17 processing cycle Participation is voluntary

34. IRS Data Retrieval Process Accessibility 1 – 2 Weeks if filed taxes electronically 1 – 2 Weeks if filed taxes electronically 6 – 8 Weeks if filed by paper 6 – 8 Weeks if filed by paper Data provided through retrieval process is acceptable documentation, if not changed May reduce documents requested by financial aid office

35. IRS Data Retrieval Tool Some will be unable to use IRS DRT Examples include: Filed an amended tax return Filed an amended tax return No SSN was entered No SSN was entered Student or parent married but filed separately Student or parent married but filed separately Any student or parent who indicates they have not filed a tax return or will not file a tax return Any student or parent who indicates they have not filed a tax return or will not file a tax return

36. FSA ID Web site: https://fsaid.ed.gov https://fsaid.ed.gov Replaces the PIN Sign FAFSA electronically Can request FSA ID before January 1, 2016 Not required, but speeds processing May be used by students and parents throughout aid process, including subsequent school years

37. Signatures Required Student Student One parent (dependent students) One parent (dependent students)Format Electronic using PIN Electronic using PIN Signature page Signature page Paper FAFSA Paper FAFSA

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

39. FAFSA Processing Results Central Processing System (CPS) notifies student of FAFSA results, called the Student Aid Report (SAR), by: Paper (SAR) if paper FAFSA was filed and student’s e-mail address was not provided SAR Acknowledgement if filed FAFSA online and student’s e-mail address was not provided

40. FAFSA Processing Results CPS notifies student of FAFSA processing results by: E-mail notification with a direct link to student’s online SAR if student’s e-mail was provided on paper or electronic FAFSA Student with FSA ID may view SAR online at www.fafsa.gov

41. FAFSA Processing Results Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 3 to 5 days after FAFSA submitted electronically College reviews ISIR May request additional documentation May request additional documentation

42. Student Aid Report Review data for accuracy and correct any errors Update estimated information when actual figures are available using the IRS Data Retrieval process

43. Making Corrections If necessary, corrections to FAFSA data may be made by: Using FAFSA on the Web (www.fafsa.gov) if student has an FSA ID; Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or Submitting documentation to college’s financial aid office

44. Special Circumstances Cannot report or be documented on FAFSA Send explanation to financial aid office at each college College will review special circumstances Request additional documentation Request additional documentation Decisions are final and cannot be appealed to U.S. Department of Education Decisions are final and cannot be appealed to U.S. Department of Education

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

46. New for 2017-18 Switch to using tax information from “prior-prior year” instead of previous year 2017-18 FAFSA will use 2015 tax info. Switch to an Oct. 1 st start date instead of Jan. 1 st 2017-18 FAFSA will be available for completion on Oct. 1, 2016 If you plan to attend college from You can submit the FAFSA from Using tax information from July 1, 2015 – June 30, 2016January 1, 2015 – June 30, 20162014 July 1, 2016 – June 30, 2017January 1, 2016 – June 30, 20172015 July 1, 2017 – June 30, 2018October 1, 2016 – June 30, 20182015 July 1, 2018 – June 30, 2019October 1, 2017 – June 30, 20192016

47. CAUTION! Avoid being charged a fee to file the FAFSA Processes of completing & processing FAFSA are FREE Processes of completing & processing FAFSA are FREE If filing FAFSA on the Web, make sure you go directly to: www.fafsa.gov If filing FAFSA on the Web, make sure you go directly to: www.fafsa.gov www.fafsa.gov Contact the financial aid office for help completing the FAFSA Contact the financial aid office for help completing the FAFSA