1. Navigating Financial Aid
Grand Rapids High School
November 13, 2017

2. Money used to help you pay for college
Financial Aid
Money used to help you pay for college
Aid dollars come from: federal/state
governments, colleges, and private organizations
Philosophy of Financial Aid
It is the parent’s/student’s responsibility to pay for higher education expenses to the extent that they are able.
The FREE Application for Federal Student Aid (FAFSA) is the tool that measures your family’s ability to pay for higher education expenses.
First of all, what exactly is financial aid? Financial aid is simply the money that is made available to help you pay for college. It’s there to help make college more affordable. In fact, the majority of people wouldn’t be able to afford going to college if they didn’t receive financial aid.
The federal government sets aside a large amount of money each year specifically to help students pay for college. You can also get financial aid from your state, from your college, and from other organizations.

3. The FAFSA The tool used to measure a family’s ability to pay
It’s FREE!
Online ( FAFSA submission began October 1, 2017
Based on 2016 income since this is the most recent tax data you will have at this time.
Used to determine both Federal AND State financial aid eligibility, Blandin Grant, and sometimes institutional/tribal/other private party aid.
END RESULT OF THE FAFSA IS THE EXPECTED FAMILY CONTRIBUTION - EFC.
The tool used to measure a family’s ability to pay
You must fill out and submit the FAFSA to receive federal student aid. By submitting it, you apply for federal aid such as Pell grants, SEOG grants, Perkins loans, and Stafford loans. It may also make you eligible for some forms of state aid, and colleges sometimes use the information to award their own institutional aid.
You want to submit the FAFSA as soon as possible after January 1st of your senior year of high school. Some types of aid such as grants are limited in funds, so applying early helps ensure you get all of the aid for which you may be eligible. In a moment we’ll discuss the information you need to accurately complete the FAFSA.
You can complete a paper FAFSA and mail it in the envelope provided, or use FAFSA on the Web at Using the online version provides several advantages:
Instant Access to Help – If you have questions, you can quickly find the answer right there.
Built-in Error Checking – The online version can prevent you from entering costly errors that you would have to fix later.
Skip Non-Required Questions – Based on your situation, some questions may not be required. The online version allows you to quickly skip over them.
Faster Processing Time – Completing it online and signing it electronically can speed up the process by as much as a couple of weeks.
Easier to Check Status – If you complete the online version, you can later go online and quickly check its status.
Easier Renewal Process – Once you complete it online, it is easy to also complete your Renewal FAFSA for each following year.

4. Which parent(s) do I use?
Unmarried or married legal parents who live together (regardless of gender) must both be included on the FAFSA.
If the legal parent you live with is currently separated/divorced/single, then only that parent’s information is listed on the FAFSA (unless still living together). If parent you live with is now remarried, then both parent and step-parent incomes are listed.
If parent is currently separated/divorced, and you lived equally between both parents, then provide information on the parent who provided more financial support during the past 12 months (health insurance, food, clothing, etc.)
Grandparents, foster parents, other relatives and/or legal guardians are NOT considered parents unless they have legally adopted the student.

5. What information does the FAFSA ask for?
(Gather data)
Parent Income (AGI, wages)
Student Income
Untaxed Income (child support received, etc.)
Income Exclusions (child support paid out, etc.)
Cash, Saving, Checking account balances
Net Worth of Investments (stocks, mutual funds, hunting land, cabin, etc.)
- Do not include family owned businesses with 100 or less employees
Family Size
Number Attending College
Dislocated worker, TANF, WIC, Reduced lunch, SSI, Food Stamps
Interested in work-study?
Selective Service Registration
College choices
The FAFSA is free of charge. Avoid offers that ask you to pay to complete it, or to pay for help completing it. Also avoid offers that “guarantee” you financial aid. The FAFSA on the Web site contains plenty of help if you need it, and community-based organizations as well as financial aid offices often provide help for free.
When completing the FAFSA, take note of the questions asking if you are interested in student loans and work-study. Indicating you are interested in these types of aid does not obligate you to accept them or ensure they will be offered to you. However, if you don’t indicate you are interested in these forms of aid, colleges may not offer them to you!
The FAFSA also allows you to enter up to six colleges in which you may be interested. Each college you list automatically receives the information from your FAFSA that they would need to determine the types and amounts of aid to offer you.

6. The FSA ID (Federal Student Aid ID)
Used as an electronic signature for both student and parent
Create your FSA ID BEFORE completing the FAFSA
Username, password, and challenge questions are created by the student and parent separately
WRITE THESE DOWN on the cards handed out, take a picture with your phone, etc. and store in a safe place!
IMPORTANT: Separate addresses for parent and student must be used that you can log in to and access for authentication. Do NOT use your high school address!
Authentication occurs via or text messaging with a six digit code
Password expires after 18 months.
The FSA ID replaced the FAFSA PIN in May of Those of you who may already have a PIN from previous FAFSA applications will now be required to create an FSA ID to replace your old PIN number. The FSA ID allows students access to multiple federal student aid sites including the FAFSA on the web, studentloans.gov, and others. All students and parents of dependent students are required to sign their FAFSA application with the new FSA ID. It’s important to know that you will be required to use separate addresses when creating your FSA ID’s. A parent and child, or two parents, cannot use the same address. Also, although the username will never change, the password will expire every 18 months.

7. FAFSA.GOV

8. FAFSA SCREEN EXAMPLE

9. IRS will hide/mask income information for security reasons.
IRS data retrieval
This process pulls in data from your 2016 tax return and places it in the correct spots on your FAFSA.
IRS will hide/mask income information for security reasons.
DO NOT change the data you import! 9 9

12. Student Aid Report (SAR)
Sent to you electronically after FAFSA is processed.
Contains your Expected Family Contribution (EFC) and potential Pell Grant and loan amounts.
THIS IS NOT YOUR AWARD LETTER. The college/unverisity you applied to will award the aid and notify you of your eligibility.
Info is sent automatically to colleges you listed on the FAFSA.
Verify information is correct and make necessary corrections if needed.
After your submitted FAFSA is processed, the Department of Education sends you a Student Aid Report (SAR). If you provided a valid address, you receive an notification within a few days that provides online access to your SAR. You can then use your Department of Education PIN to access your SAR online at FAFSA on the Web ( If you didn’t provide a valid address, you’ll receive a paper SAR after a few weeks.
The SAR includes all of the information you provided on the FAFSA as well as your Expected Family Contribution (EFC). The information in your SAR is automatically provided to the colleges you listed on the FAFSA. As described earlier, the EFC is used by colleges to determine the types and amounts of aid to offer you.
Review your SAR to verify all information is accurate. Submit any necessary corrections either online or on your paper SAR.

13. Verification Many FAFSA applications are selected
for verification (30% or more). This is a
quality assurance process for the
government.
If selected for verification, you are NOT in trouble! Your family must complete verification paperwork sent by Financial Aid Office (usually worksheets to fill out, sign, and return) AND provide proof of tax filing by:
Completing the IRS data transfer by making a correction to your FAFSA
submitting a paper IRS tax return transcript
If a parent non-filer, requesting a “Verification of non-filing statement” from the IRS (using form 4506-T) and 2016 W-2 forms (if any)

14. COSTS
What costs will you have when going to college?

15. COST OF ATTENDANCE TRAVEL ROOM/BOARD PERSONAL BOOKS TUITION/FEES
Each school’s COA will vary based on housing choice and includes:
TRAVEL
ROOM/BOARD
PERSONAL
BOOKS
TUITION/FEES
Emphasize that financial aid uses MINIMAL AVERAGE COSTS (double room, average meal plan, etc….) If student chooses more expensive options some schools may offer additional assistance. See info on financial literacy

16. Cost of Attendance (for one year)
Financial Need is determined based on school costs
and the results of your FAFSA. Financial need will vary based
on the school you choose (Harvard vs. Community College).
Many (but not all) types of aid are based on financial need
Grants
Subsidized Loans
Federal/State Work-Study Programs
Here is how it is calculated:
Cost of Attendance (for one year)
- Expected Family Contribution (FAFSA EFC)
= Financial Need
As already mentioned, many types of aid, like Pell and SEOG grants, and subsidized Stafford loans, are need-based. This means that they’re awarded to students who demonstrate the most financial need.
In basic terms, financial need is the amount of aid you need to pay for college. So, how do colleges calculate your financial need?

17. The Financial Aid Office
Reviews FAFSA and determines a student’s eligibility for financial aid based on FAFSA results
Packages and offers financial aid to students
based on eligibility
attempts to meet financial need
Sends an award letter/notification which details:
Cost of attendance
Types and amount of financial aid
Conditions of the award (certain credit load, GPA, etc.)
How to apply for loans and work study
Disbursement procedure
NOTE: Students must be admitted in an “aid eligible” degree, diploma, or certificate program before an award letter can be processed.

18. Three Types of Aid Gift money Earned money Borrowed money
There are three basic types of financial aid.
The first is gift money. Gift money is money that you don’t have to pay back. It’s money that is given to you for free.
The second type is earned money. You can perform certain jobs to earn money specifically to pay for college.
The third type is borrowed money. You can take out loans designed to help you pay for college.
Now, we’ll talk in more detail about each of these types.
Borrowed money

19. Gift Money
Grants
Based on financial need
From government and colleges
Federal Pell Grant (up to $5920)
Federal SEOG Grant
Federal TEACH Grant
Minnesota State Grant
Other/Institutional/Tribal Grants
Blandin Foundation Education Grant (March 1st deadline)
If attending ICC –
There are two types of gift money: grants and scholarships.
Grants are sums of money that are awarded usually based on financial need. We’ll talk more about how financial need is determined a little later on in this presentation.
The federal government offers two kinds of grants: the Pell grant and the Supplemental Educational Opportunity Grant (SEOG). Like most grants, these are awarded based on your financial need.
Scholarships can be awarded for a number of reasons. Some are awarded based on merit, or on something a student has done. For example, students can get scholarships because of their academic achievement, involvement in sports or music, or other organizations or activities they might participate in. Students can also compete for scholarships in essay-writing or other contests. You can also get scholarships just for applying to them, as some are awarded based on where you live or by the companies your parents work for. There are a lot of different scholarships out there.
Remember that both grants and scholarships are free money. You don’t have to pay them back. This is the best type of financial aid to receive.

20. Gift Money Scholarships Based on various criteria
From colleges and other organizations
Itasca Community College Foundation Scholarship Due March 1st
Grand Rapids Community Foundation Scholarship Due March 15th
MN Indian Scholarship
Tribal Scholarships/Grants
High School Counselor is best resource for local scholarships.
Don’t let money slip away! Apply!
There are two types of gift money: grants and scholarships.
Grants are sums of money that are awarded usually based on financial need. We’ll talk more about how financial need is determined a little later on in this presentation.
The federal government offers two kinds of grants: the Pell grant and the Supplemental Educational Opportunity Grant (SEOG). Like most grants, these are awarded based on your financial need.
Scholarships can be awarded for a number of reasons. Some are awarded based on merit, or on something a student has done. For example, students can get scholarships because of their academic achievement, involvement in sports or music, or other organizations or activities they might participate in. Students can also compete for scholarships in essay-writing or other contests. You can also get scholarships just for applying to them, as some are awarded based on where you live or by the companies your parents work for. There are a lot of different scholarships out there.
Remember that both grants and scholarships are free money. You don’t have to pay them back. This is the best type of financial aid to receive.

21. Earned Money Work-Study (Student Employment) Programs
Students work part time, usually on-campus
Earnings are paid as hours are worked
Money earned helps pay for educational expenses
ICC students earn $10.50 per hour
Examples of jobs (cafeteria, maintenance, security, clerical, athletics, tutoring, cashier, etc.)
The Federal Work-Study program provides jobs to students who have financial need. Earnings can be used to help cover college expenses. Students work part time, usually on campus, and sometimes these jobs relate directly to their major.
Work-Study jobs are a lot like other part-time jobs. Students work a set schedule and get a paycheck based on the hours they work. Work-Study jobs are only available to students who qualify for them based on financial need.
Remember that to get money from Work-Study, you have to work at a job and earn it. Some students choose to get part-time jobs on their own instead of taking a Work-Study job.

22. Borrowed Money - Federal Loans
Every family should file a FAFSA. Regardless of income, every student qualifies for a Federal Direct loan, if they meet the basic eligibility requirements.
Benefits of a Federal Direct Student Loan (Subsidized or Unsubsidized):
You don’t have to repay until you leave school or drop below 6 credits
Lower interest rates/fees (currently 4.45% fixed with 1.066% loan fees) than private loans or credit cards
Credit record is not needed
Co-signer is not required
Deferment and flexible payment options
Federal PLUS loan is available for parent borrower (7% fixed with 4.264% loan fees) 22

23. Review of Application Steps
Create FSA ID and complete FAFSA at
Complete MN State Grant Questionnaire (link on FAFSA submission confirmation page)
Complete School’s Financial Aid Application (if applicable)
Review Student Aid Report (SAR) and make corrections if needed
Apply for scholarships
Complete verification process (if required)
Review your award letter and billing statement to determine if loan funding is needed
Complete loan applications/apply for work-study
Attend class and maintain satisfactory academic progress
Reminders:
Apply for financial aid each year
Use the IRS Data Retrieval Tool
Check priority dates and deadlines
Do not share your FSA ID
Report outside scholarships you receive to the Financial Aid Office

24. Professional Judgment
Examples such as:
Loss of income in 2017 or 2018 compared to 2016 data reported on FAFSA
Social Security/child support benefits ending
Significant medical expenses
Separation/divorce/death
Private tuition expenses
Settlements
One time income (not typical)
Non-discretionary circumstances
- Contact the Financial Aid Administrator
**Aid Administrator may be able to make adjustments to certain data items on your
FAFSA that MAY increase your eligibility for need-based aid.

25. Questions?