1. 2017 WVASFAA Spring Conference
Financial Aid Basics
2017 WVASFAA Spring Conference
Danielle M. Duvall
Shepherd University

2. Application Process Free Application for Federal Student Aid (FAFSA)
College Applications
Scholarship Applications
Loan Applications

3. 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, by phone, or by using a paper form
Available in English and Spanish
May be filed at any time during an academic year, but no earlier than October 1st prior to the academic year for which the student requests aid
FAFSA on the Web Worksheet is available

4. FAFSA on the Web Log-in using FSA ID
Replaced Federal PIN in 2015
Both student and parent (if dependent student) must have their own FSA ID to sign FAFSA
Good reasons to file electronically
Built-in edits to prevent costly errors
Skip-logic allows students and/or parent to skip unnecessary questions
Option to use Internal Revenue Service’s Data Retrieval Tool

5. IRS Data Retrieval Tool
Only available if using FAFSA on the web; applicant may submit real-time request to IRS for tax data
IRS will authenticate taxpayer’s identity
IRS sends real-time results to applicant in new browser window
Applicant then chooses whether or not to transfer data to FAFSA
Some will not be able to use Data Retrieval Tool
Amended Tax Returns
Married, Filing Separate Tax Returns
Problem with Social Security Number

6. IRS Data Retrieval Tool is Currently Unavailable
IRS and ED statements about the IRS Data Retrieval Tool:
March 10, 2017
The IRS Data Retrieval Tool on fafsa.gov and StudentLoans.gov is currently unavailable. We are working to resolve the issue as quickly as possible. However, at this time, the IRS anticipates the online data tool will be unavailable for several weeks.
March 30, 2017
To protect sensitive taxpayer data, the IRS and FSA announced today the Data Retrieval Tool on fafsa.gov and StudentLoans.gov will be unavailable until extra security protections can be added. While we are working to resolve these issues as quickly as possible, students and families should plan for the tool to be offline until the start of the next FAFSA season.

7. Verification
Approximately a third of all financial aid applicants are selected for a review called verification
Institutions must collect documentation to verify
Identity
Household Size
Taxable & Untaxable Income
Student’s file will remain incomplete and no federal or state aid will be awarded until the verification process is finalized
May result in a correction being made to student’s FAFSA by institution
New in
If the student is selected for verification and did not file a tax return, they must submit a Letter of Non-filing obtainable from the IRS

8. Dependency Override
Financial aid administrators have the authority to make a dependent student independent in certain cases. Some examples include but are not limited to:
Parental abuse
Parental abandonment
The institution will:
Request documentation
Review each situation on a case by case basis
Professional judgment decisions are final and cannot be appealed
Student must present evidence of situation from a third party with knowledge of the family situation
Teacher
Social Worker
Member of Clergy
Court
Law Enforcement

9. Special Circumstances
A special circumstance appeal may be submitted to the institution if the student or student’s family has experienced an unusual circumstance that cannot be reported on the FAFSA. Some examples include:
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
The institution will:
Request documentation
Review each situation on a case by case basis
Professional judgment decisions are final and cannot be appealed

10. Financial Need
COA
EFC
Need

11. Expected Family Contribution
The EFC is a measure of how much the student and his or her family can be expected to contribute to the cost of the student’s education for the year.
Remains the same regardless of institution
Calculated using data from the FAFSA along with a federal formula
Made up of two major components
Parent Contribution
Student Contribution

12. Cost of Attendance Can vary widely from one institution to another
An estimate of a student’s educational expenses for a period of enrollment.
Can vary widely from one institution to another
Direct and indirect costs combine to create total Cost of Attendance
Direct Costs
Tuition & Fees
Room & Board (on campus)
Indirect Costs
Books & Supplies
Transportation
Personal Expenses
Room & Meals (off campus)

13. Sources of Financial Aid
Federal
State
Institutional
Private

14. Types of Financial Aid Gift Aid Self-Help Aid
Financial aid is funding provided to students and families to help pay for postsecondary educational expenses.
Gift Aid
Scholarships
Grants
Self-Help Aid
Employment
Loans

15. Scholarships PROMISE Institutional Scholarships Private Scholarships
Merit-based scholarship for West Virginia residents
Annual awards of up to $4,750
Application and FAFSA due March 1st for first-time applicants
Must have a 3.0 GPA in core classes and overall
Renewable at 2.75 GPA for Freshmen and 3.0 GPA for Sophomores and above who complete 30 credits per academic year
Institutional Scholarships
Usually evaluated based on High School GPA and admissions test scores evaluated with admissions application
Departmental waivers/scholarships based on merit
Athletic scholarships
Private Scholarships
Based on merit, skill, or unique characteristic
Apply for with individual organizations and companies

16. Grants Federal Pell Grant West Virginia Higher Education Grant
Awarded to eligible undergraduate students pursuing a first baccalaureate degree
Actual award amount based on EFC and enrollment status
Maximum award for is $5,815
Maximum award for is $5,920
West Virginia Higher Education Grant
Need-based grant for West Virginia residents
Must file FAFSA by April 15 (May 1st for )
Must have 2.0 GPA and complete 24 hours each academic year
Award is $2,700 for EFC up to $5,234 and $2,300 for EFC from $5,235 to $10,000

17. Employment Federal Work Study Student Employment FAFSA required
Funding is limited so many schools will impose FAFSA deadlines
Student must demonstrate financial need
Student Employment
Many institutions offer a non-Federal Work Study option for students who don’t qualify for Federal Work Study but could still benefit from a student friendly job to help cover educational and personal expenses
May or may not be included in award package

18. Federal Loans Federal Direct Subsidized and Unsubsidized Loans
Six month grace period once student graduates or falls below half-time enrollment
Subsidized does not accrue interest while student is enrolled at least half-time; unsubsidized does
Undergraduate: 3.76% Fixed (May change July 1, 2017)
Graduate: 5.31% Fixed (May change July 1, 2017)
Must complete Entrance Counseling and sign MPN
Year In School
Annual Eligibility – Dependent
Annual Eligibility - Independent
Freshman
$3,500 sub/$2,000 unsub
$3,500 sub/$6,000 unsub
Sophomore
$4,500 sub/$2,000 unsub
$4,500 sub/$6,000 unsub
Junior
$5,500 sub/$2,000 unsub
$5,500 sub/$7,000 unsub
Senior+
Undergraduate Aggregate Limit:
$31,000 ($23,000 sub)
$57,500 ($23,000 sub)
Graduate Student
Not Eligible
$20,500 unsub
Graduate Aggregate Limit:
N/A
$138,500 unsub

19. Federal Loans – continued
Direct Parent PLUS Loan
Parent may apply at
Subject to credit check
May borrow up to full cost of attendance
If parent is denied credit and does not seek endorser additional unsubsidized loan eligibility available for student
$4,000 for Freshmen & Sophomores
$5,000 for Juniors & Seniors+
Current interest rate is 6.31% fixed
May change July 1, 2017

20. Private Loans
Students may apply for non-federal educational loans through private banks and lenders
Some lenders have parent loan options
Private loans are subject to credit check
Many require a cosigner
Students should maximize their federal loan options before seeking a private loan

21. Financial Aid Counselor
Questions?!
Danielle M. Duvall
Financial Aid Counselor
Shepherd University