1. FINANCIAL AID 101 Kristen Isaksen Associate Director of Financial Aid
10/14/2018 7:40 AM
FINANCIAL AID 101
Kristen Isaksen
Associate Director of Financial Aid
Monmouth University
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2. What is Financial Aid?
Financial aid is money that helps a student pay for education expenses at a postsecondary school (e.g., college, vocational school, graduate school).

3. Goal of Financial Aid
The primary goal is to assist students in paying for college. This achieved by:
Evaluating a family’s ability to pay for educational costs.
Distributing limited resources in an equitable manner.
Providing a balance of gift aid and self-help aid.

4. Federal Methodology Federal Methodology
is the formula created by Congress
to determine the Federal Expected
Family Contribution (EFC).

5. Expected Family Contribution
The amount a family can reasonably be expected to contribute toward the cost of the student’s education for an academic year.
Stays the same regardless of college choice.
Colleges use the EFC to award financial aid.

6. Total EFC for Dependent Students
Parent’s Contribution
From Income
From Assets
Student’s Contribution

7. Cost of Attendance Tuition and Fees Room and Board Books and Supplies
Transportation
Miscellaneous Personal Expenses
Computer
Study Abroad
Dependent Care
Expenses related to a disability

8. Definition of Need Cost of Attendance (COA)
- Expected Family Contribution (EFC)
= NEED

9. Financial Need Examples
Cost of Attendance
$15,000
- EFC
$5,000
= Need
$10,000
$40,000
$35,000

10. Net Price Calculator
All institutions must have a net price calculator posted on their websites by October 29, 2011.
It will help current and prospective students, families, and other consumers estimate the individual net price of an institution of higher education for a student.
Based on full time, first degree/certificate-seeking undergraduate students.

11. General Eligibility Requirements
Must be enrolled or accepted for enrollment in an eligible program of study leading to a degree, certificate, or other recognized credential.
Must be U.S. citizen or eligible non-citizen.

12. General Eligibility Requirements
Must have valid Social Security Number (SSN)
Must be registered with Selective Service (if male and required)

13. FAFSA4caster www.fafsa4caster.ed.gov

14. FAFSA on the Web

15. Before Beginning the FAFSA

16. To Register for a PIN

17. FAFSA on the Web Worksheet
2011–12 FAFSA on the Web Worksheet—4-page booklet containing instructions and 24 questions in 4 sections. Currently in DRAFT status!
You may need to answer more questions than those listed on the worksheet.
Skip logic will remove unnecessary questions.
Some questions are optional, but it is recommended that you answer all of them.

18. Completing the FAFSA

19. IRS Data Retrieval – FAFSA on the Web
Applicants may submit a real-time request for IRS tax data.
The IRS will authenticate the taxpayer’s identity.
If a match is found, the IRS will send the results in real-time (a new window will open).
Applicants may choose whether or not to transfer the data.

20. IRS Data Retrieval – FAFSA on the Web
Available in late January 2011 for 2011–12 processing cycle (allow 3-5 days after electronic filing of taxes and 6-8 weeks for paper filing)
Participation is voluntary
May reduce documents requested by financial aid office
Not available to applicants with a recent change in marital status
May also be used to make FAFSA corrections

21. FAFSA and State Aid
The New Jersey Higher Education Student Assistance Authority (NJHESAA) will need to collect 4 additional income items not listed on the FAFSA:
Earned Income Credit (EIC)
Untaxed Social Security Income
Driver’s License State/Number
Veteran’s Benefits (Independent Students Only)

22. FAFSA and State Aid
At the FAFSA confirmation page, there will be a link and light bulb icon to alert you to the state specific questions.
Data from the FAFSA will be transferred to HESAA and the appropriate questions will be displayed.

24. Process Complete Federal Income Tax Return
File Free Application for Federal Student Aid (FAFSA)
Complete Institutional forms (if required)
Receive Student Aid Report (SAR)
Receive/Return Award Letter
Provide Additional Documentation
Process Student Loans

25. Sources of Aid
Institutional
Federal
State
Other

26. American Opportunity Tax Credit
Part of the American Recovery and Reinvestment Act
Modifies the existing Hope Tax Credit for 2009 and 2010
Maximum credit is $2500 (partially refundable)
Higher income thresholds
Course materials now included

27. Types of Financial Aid Scholarship Does not have to be repaid
Awarded on the basis of merit, skill or a unique characteristic
Grants
Usually awarded on the basis of financial need
Loans
Money that is borrowed and repaid with interest
Employment
Student earns money to help pay educational costs
Paycheck or non-monetary compensation, such as room and board

28. Grants and Scholarships
Federal
Federal Pell Grant
Federal Supplemental Educational Opportunity Grant (SEOG)
Teacher Education Assistance for College and Higher Education (TEACH) Grant

29. Iraq and Afghanistan Service Grants
New, non-need-based grant for students who are not eligible for Pell grants due to their EFC and who had a parent or guardian die as a result of military service in Iraq or Afghanistan after September 11, The student must have been less than 24 years old or enrolled in college when the parent or guardian died. The amount of the grant is the same as the maximum Pell grant award. As with Pell, there is a receipt limit of 18 semesters and award amounts are adjusted like Pell grants for students who are enrolled less than full time.

30. Grants and Scholarships
STATE
New Jersey Tuition Aid Grant
Garden State Scholarships
Distinguished Scholars
NJSTARS and NJSTARS II
Educational Opportunity Fund (EOF)

31. More Grants and Scholarships
Institutional
Merit Based
Need Based
Private Sources
Think local and global
Use the Counseling Office’s Resources
Internet Resources

32. Loans Federal Perkins Loan Federal Stafford Loans Subsidized
Need based
No interest accrual during school/grace/deferment periods
Fixed rate of 3.4% for 11-12

33. Loans Federal Stafford Loans
Unsubsidized
Not need based
Accrues interest from disbursement
Fixed 6.8% interest rate
Maximum award amount for first year students:
$5500 with no more than $3500 in Subsidized funds

34. Supplemental Loans
Federal Parent Loan for Undergraduate Students (PLUS)
Institutional Loans
New Jersey College Loans to Assist State Students (NJCLASS)
Private/Alternative Loans

35. Employment Federal Work Study Institutional Work Programs
Off-Campus Jobs

36. Tips BEWARE OF DEADLINES!! Read All Mail Promptly
Read Instructions Carefully
Maintain Copies of All Documents
Do not sign your son or daughter’s name to financial aid documents
Involve Your Student
Consult a Financial Aid Officer

37. Using Financial Aid Consultants and Search Services
Before spending money on a financial aid consultant, keep in mind that a financial aid administrator can perform the same services for free.

38. Using Financial Aid Consultants and Search Services
If you decide to use the services of a consultant, keep these things in mind:
Request a list of references from the consultant before hiring.
Never agree to a fee based on the percentage of aid that is received.
Never sign a blank form.
Always review the FAFSA after it has been prepared.
Keep copies of all documents for your own files.
The fee should be refundable if the FAFSA is completed incorrectly.
A financial aid consultant cannot guarantee financial aid.

39. Questions to ask a Financial Aid Administrator
Are scholarship and grant awards renewable? What criteria must be met?
What are the policies for work-study positions? Is a job guaranteed?
Can a student borrow more than the amount on the award letter?
Are any figures on the award letter estimated? What is needed to finalize the package?
How are outside scholarships treated?
What expenses are not reflected on a term bill?

40. Questions