1. Welcome to FINANCIAL AID 101 Materials provided by: SDASFAA
Welcome to FINANCIAL AID Materials provided by: SDASFAA NASFAA (South Dakota (National Association of AND Association of Student Financial Student Financial Aid Aid Administrators) Administrators)

2. What is Cost of Attendance (COA)?
Direct costs Indirect costs
Together, these make up the Cost of Attendance
Varies widely from college to college

3. What is Expected Family Contribution (EFC)?
Amount family can “reasonably” be expected to contribute (think of it as an eligibility indicator)
Stays the same regardless of college
Two components
Parent contribution
Student contribution
Calculated using data from a federal application form and a federal formula

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

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

6. Types of Financial Aid Scholarships Grants Gift Aid Loans Employment
Self-Help Aid
Gift Aid: Scholarships
-Money that does not have to be paid back
-Awarded on the basis of merit, skill, or unique characteristic
Gift Aid: Grants
-Usually awarded on the basis of financial need
Self-Help Aid: Loans
-Money students and parents borrow to help pay college expenses
-Repayment usually begins after education is finished
-Only borrow what is really needed
-Look at loans as an investment in the future
Self-Help Aid: Work-Study Employment
-Allows student to earn money to help pay educational costs
A paycheck; or
Nonmonetary compensation, such as room and board
-Student may opt whether or not to work or number of hours to work

7. Private Sources Colleges and Universities
Scholarships from foundations, businesses, charitable organizations, churches
Student and Parent Employers
Deadlines and application procedures vary widely
Begin researching private aid sources early
Research what is available in community
To what organizations and churches do student and family belong?
Application process usually occurs during spring of senior year
Small scholarships add up!
Companies may have scholarships available to the children of employees
Companies may have educational benefits for their employees

8. State Aid
SD Opportunity Scholarship
Dakota Corps Scholarship
Build Dakota Scholarship
Jump Start Scholarship
Need Based Scholarship

9. Federal Government Resources
Corporation for National & Community Service (AmeriCorps)
Veteran’s benefits
ROTC Scholarships or stipends
Bureau of Indian Affairs (BIA) Grants
State Divisions of Vocational Rehabilitation
US Dept of Health & Human Services (HHS)

10. Federal Student Aid Programs
Federal Pell Grant
Iraq and Afghanistan Service Grant (IASG)
Teacher Education Assistance for College and Higher Education (TEACH) Grant
Federal Supplemental Educational Opportunity Grant (FSEOG)
Federal Work-Study (FWS)
Subsidized and Unsubsidized Federal Direct Student Loans (Direct Loans)
Federal Perkins Loan ( final year)
Federal PLUS Loans
Largest source of financial aid
Aid awarded primarily on the basis of financial need

11. Free Application for Federal Student Aid (FAFSA)
A standard form that collects demographic and financial information about the student and family
Website:
Most colleges set FAFSA filing priority deadlines
Must apply each year using the FAFSA
Reasons to file electronically:
Built-in edits to prevent costly errors
Skip-logic allows student and/or parent to skip unnecessary questions
Option to use Internal Revenue Service (IRS) Data Retrieval Tool to import tax data
Faster processing of original application and any corrections
Detailed instructions and “help” for common questions
Ability to check application status online
Simplified process for subsequent FAFSA’s

13. Federal Student Aid ID https://fsaid.ed.gov Replaced the PIN
Sign FAFSA electronically
Not required, but speeds processing
May be used by students and parents throughout aid process, including subsequent school year
Only the owner should create a FSA ID

14. New for 2017-18 Switch to an Oct. 1 start date instead of Jan. 1
FAFSA became available on Oct. 1, 2016
Switch to using tax information from “prior-prior year” instead of previous year
FAFSA will use 2015 tax info

15. IRS Data Retrieval Tool
While completing FAFSA, applicant may submit real-time request to IRS for tax data
IRS will authenticate taxpayer’s identity in new browser window
If match found, IRS presents real-time results
Reduces documents requested by financial aid office

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

18. Making Corrections
Students should only correct information that was reported incorrectly when he or she completed the FAFSA.
If necessary, corrections to FAFSA data may be made by:
Going to if student has an FSA ID; OR
Submitting documentation to college’s financial aid office

19. Verification
If a student is selected for most kinds of verification, they must do ONE of the following
Make a correction to the FAFSA and use IRS Data Retrieval for both student and parent
Request Tax Return Transcripts
Four ways to order a Tax Return Transcript
Submitting request online:
Phone:
In person at local IRS Office
Obtain form online and mail to the IRS
Students can be selected for verification by: ED or college
Items to be verified will vary
Financial Aid Offices will no longer be able to accept a copy of the filed income tax return

20. Special Circumstances
Cannot be documented using FAFSA
Send written explanation and documentation to financial aid office at each college
College will review and request additional information if necessary
Examples:
Change in employment status
Unusual medical expenses not covered by insurance
Change in parent marital status

21. Find me later:
Becky Pribyl at Northern State University’s Financial Aid Office
Phone:
Phone:
Fax: