1. Financial Aid 101 Presentation The 2016-2017 FAFSA
UCSC Financial Aid Office
Student Affairs: Cultivating Engaged World Citizens

2. Topics for Discussion What is financial aid Cost of Attendance
Expected Family Contribution
What is financial need
Types and sources of financial aid
Free Application for Federal Student Aid (FAFSA)
Special Circumstance

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

4. What is Cost of Attendance (COA)
Direct/Billed costs (tuition, fees and on-campus housing) (plus)
Indirect costs (books, transportation, personal expenses)
Direct + Indirect costs = COA (Cost Of Attendance)
Varies from college to college

5. What is the Expected Family Contribution (EFC)
Amount family would be expected to contribute
Calculated using data from the federal application (FAFSA) and the federal formula
Two components
Parent contribution (Assets + Income)
Student contribution (Assets + Income)
PC+SC=EFC (Parent Contribution + Student Contribution=Expected Family Contribution)
Stays the same regardless of college costs

6. What is Financial Need
Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need

7. Types of Financial Aid Scholarships Grants
Money that does not have to be paid back
Awarded on the basis of merit, skill, or unique characteristic
Grants
Usually awarded on the basis of financial need

8. Types of Financial Aid (Continued)
Loans
Repayment usually begins after education is finished
Only borrow what is really needed
Look at loans as an investment in the future
Employment (CWS)
Allows student to earn money
Receives a paycheck
May be on or off-campus employment

9. Sources of Financial Aid
Federal government
State you live in
Institutional (University/College)
Private sources (foundations, businesses, charitable organizations)

10. 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)

11. Common Federal Aid Programs
Federal Supplemental Educational Opportunity Grant
Federal Perkins Loan
Federal Work-Study
Direct/Stafford Loans
PLUS Loans
Federal Pell Grant
Academic Competitiveness Grant
National Science and Mathematics Access to Retain Talent Grant
Teacher Education Assistance for College and Higher Education Grant

12. State Financial Aid Residency requirements (Cal Grant)
Award aid on the basis of both merit and need
Use information from the FAFSA
Deadlines vary by state; priority deadline is March 2nd of every year. (California)

13. Institutional
Most Universities and Colleges offer their own form of grant aid and usually includes loans.
Check with specific institution/college for file completion deadline.
IMPORTANT: Amount of funding varies widely from school to school

14. Private Sources Foundations, businesses, charitable organizations
Deadlines and application procedures vary widely
Begin researching private aid sources early! (recommended 2hrs/wk)

15. 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 use paper form (paper form not recommended).
Available in English and Spanish

16. FAFSA
Information is used to calculate the Expected Family Contribution or EFC
The 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
Colleges use EFC to award financial aid

17. FAFSA
May be filed at any time during an academic year, but no earlier than the January 1st prior to the academic year for which the student requests aid.
The priority filing period is January 1 through March 2 (2016) for the academic year
Colleges may set FAFSA filing deadlines earlier than March 2nd.
UPDATE: Beginning filing period will open on October 1st.

18. FAFSA on the Web Web site: www.fafsa.ed.gov
FAFSA on the Web Worksheet: (available now)
Used as “pre-application” worksheet
Questions follow order of FAFSA on the Web

19. 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
Will check for errors such as reporting income twice

20. The FSA ID is the new PIN
If you haven’t logged in to fafsa.gov or StudentLoans.gov since May 10, you will need to create a FSA ID before you can log on in the future
If you already have a PIN, you can link your information to your new FSA ID by entering your PIN while registering for your FSA ID
FSA ID replaced the Federal Student Aid PIN to increase security.
The FSA ID is your electronic passport to federal student aid online.
Students, parents, and borrowers are required to use an FSA ID, made up of a username and password, to access certain U.S. Department of Education websites.
Your FSA ID is used to confirm your identity when accessing your financial aid information and electronically signing your federal student aid documents.

21. FSA ID
Your FSA ID is used to sign legally binding documents electronically. It has the same legal status as a written signature.
One parent and the student must each have one.
Web site:
Don't give your FSA ID to anyone—not even to someone helping you fill out the FAFSA. Sharing your FSA ID could put you at risk of identity theft!

22. Information NEEDED for FOTW

23. FOTW Student Worksheet: Section 1-General information
Name
Social Security Number
Driver’s license number
Citizenship
Marital status

24. FOTW Student Worksheet: Section 1-General information
State and date of legal residence
Selective Service registration status
Drug conviction status
Parent’s educational background
Plans for the school year
Self-help preferences (cws/loans)

25. FOTW Student Worksheet: Section 2
Students dependency status:
If all “No” responses, student is dependent…nearly all of our students
If “Yes” to any question, student is independent—ward of court, foster child, etc

26. FOTW Parent Worksheet: Section 3
Parents’ marital status (single/married/divorced/widowed)
Date of parents’ marital status (date divorced/married)
address (optional)
Social Security Number
Last name
Date of Birth

27. FOTW Parent Worksheet: Section 3-Financial data
Tax filing status and return typeTa
If parents filed or will file a 1040, were they eligible to file a 1040A or 1040EZ?
Did anyone in the parents’ household receive benefits from any of the federal programs listed?

28. FOTW Parent Worksheet: Section 3-Financial Data
Dislocated worker status
Adjusted Gross Income (AGI) for 2014 (Income earned from work 2014)
Income tax paid for 2015
Exemptions claimed for 2015
Household size…number in college

29. FOTW Parent Worksheet: Section 3-Asset Data
Cash, savings, and checking
Net worth of investments
Net worth of business and investment farms

30. FOTW Worksheet: Section 4
Data for Independent student (and spouse)
Income and Asset
Type of Veterans benefits that will be received
Household size and number in college
Receipt of benefits from one of the federal programs listed
Dislocated worker status

31. FOTW Worksheet: Section 5
List up to 10 colleges to receive FAFSA data: ore than ten…re-input data after submitting first group of 10
Federal School Code for each college…found on college board or college web site
Housing plans for each college

32. Signatures Required Format Student One parent (dependent students)
Electronic using FSA ID
Signature page (? Not sure if still being allowed at this time.)

33. Frequent FAFSA Errors Wrong Social Security Numbers
Incorrect Divorced/remarried parental information
Income earned by parents/stepparents
Untaxed income not claimed
Reporting differences in U.S. income taxes paid
Household size--Number of household members in college
Real estate and investment net worth discrepancy

34. Student Aid Report-(SAR)
SAR=Information involving student aid package results
Review data for accuracy
Correct estimated 2016 income information when actual figures are available (after taxes filed)
Assets may be corrected but not updated (report what was true at time of app)

35. FAFSA Processing Results
CPS notifies student of FAFSA processing results by:
notification containing a direct link to student’s on-line SAR if student’s was provided on paper or electronic FAFSA, otherwise will receive by mail
Student with FSA ID may view SAR on-line at

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

37. CAUTION!
Avoid being charged a fee to file a FAFSA (Free Application for Federal Student Aid).
Completion and processing of the FAFSA are FREE.
When filing FAFSA on the Web, be sure to go directly to
Contact any college financial aid office for help completing the FAFSA.

38. Last Tips Apply Every Year!!!
Submit application and complete file by published deadline. (The earlier, the better!...money is first come first served)
Contact the Financial Aid Office of college you are applying to if you have problems or questions.
Apply Every Year!!!