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FAFSA Fundamentals 2018 – 2019 UCanGo2 is an initiative designed to provide information about planning, preparing and paying for college. Free workbooks.

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Presentation on theme: "FAFSA Fundamentals 2018 – 2019 UCanGo2 is an initiative designed to provide information about planning, preparing and paying for college. Free workbooks."— Presentation transcript:

1 FAFSA Fundamentals 2018 – 2019 UCanGo2 is an initiative designed to provide information about planning, preparing and paying for college. Free workbooks and flyers are provided to students and parents and can be downloaded directly from our college access website, UCanGo2.org.

2 Financial Aid Money used to help pay college expenses
Grants, work-study, student loans, scholarships Almost every student is eligible for some type of financial aid Students must apply every year Financial aid can help with various educational costs such as tuition, fees, books, room and board, and transportation. Your aid can also assist with expenses like daycare and purchasing a computer.

3 Cost of Attendance (COA)
Estimate of total educational expenses for a specific enrollment period May be different at each school Includes average Tuition Fees Books and supplies Room and board Transportation Miscellaneous expenses When the Financial Aid office begins to determine your aid eligibility, they will assign you a cost of attendance. The Cost of Attendance, or COA, is an estimate of the educational expenses for a particular school. The COA includes average expenses such as tuition, fees, books and living costs. The COA will probably be different at each school you’ve selected to receive your FAFSA results.

4 Expected Family Contribution (EFC)
Calculated from information provided on FAFSA Includes income, assets and family size Comprised of two components Parent contribution Student contribution Same amount at every college The Expected Family Contribution, or EFC, is a number calculated from your FAFSA information. Financial Aid offices use the EFC to determine a student’s eligibility for federal and state aid programs. Your EFC will remain the same no matter which school you attend.

5 Financial Need Cost of Attendance – Expected Family Contribution
Cost of Attendance varies at each institution Expected Family Contribution is determined by FAFSA and will be the same at every school Financial Need is calculated by the Financial Aid Office Financial need is determined by your school’s Financial Aid office. They subtract your EFC and any Other Aid (such as an outside scholarship) from your school’s COA. The difference is your Financial Need. Financial aid is awarded based on this calculation.

6 Financial Need OCAP University’s Cost of Attendance: $20,000
Student’s Expected Family Contribution: $5,000 $20,000 (COA) – $5, (EFC) $15,000 (Need) This student may receive up to $15,000 in need-based aid This student may receive no more than $20,000 in total financial aid In this example, the student may receive up to $15,000 in need-based aid and no more than $20,000 in non-need based aid. Need-based aid includes grants, work-study, and subsidized student loans. Unsubsidized student loans are non-need based aid.

7 Award Letter Sent electronically or through mail
Outlines financial aid eligibility Read carefully! Accept or decline aid by specified deadlines Be sure to review your financial aid award letters carefully. Pay close attention to any deadlines for accepting or declining financial aid. Schools contact students in a variety of ways. Be sure you check your college issued account and watch for mail to arrive from the school’s you’ve been accepted to.

8 Federal Financial Aid Federal Pell Grant
$6,095 annual maximum for Federal Supplemental Educational Opportunity Grant (FSEOG) Up to $4,000 annual maximum Teacher Education Assistance for College & Higher Education Grant (TEACH) Iraq & Afghanistan Service Grant Amounts vary The next few slides will cover the federal financial aid programs. The programs listed, including dollar amounts and interest rates, are subject to change as federal budgets are finalized. Please keep in mind that each student’s eligibility will also vary, depending on their family’s size, income, and assets. The Pell Grant and Federal Supplemental Educational Opportunity Grant are need-based grant programs for undergraduate students without a bachelor’s degree. The TEACH Grant has some very specific requirements that recipients must fulfill; it becomes a loan if you do not end up teaching in a required field and/or school. Students are encourage to research this program carefully before accepting. Students who have lost a parent after 9/11/2001 in either Iraq or Afghanistan should notify the Financial Aid office at the school they plan to attend. You apply for all programs by completing the FAFSA. Not all schools participate in these programs.

9 Federal Financial Aid Federal Work-Study (FWS)
Allows student to earn money while working On-campus or community employment opportunities Gain work experience while in college The programs listed, including dollar amounts and interest rates, are subject to change as federal budgets are finalized. Please keep in mind that each student’s eligibility will also vary, depending on their family’s size, income, and assets. Federal Work-Study is a program based on a student’s financial need; it allows students to work part-time on- or off-campus. Not all schools participate in this program.

10 Federal Financial Aid Federal Subsidized Student Loan
Based on financial need $3,500 per year maximum for freshmen Government pays interest while student is enrolled at least half-time 4.45% fixed interest rate during Federal Unsubsidized Student Loan Additional loans available to students who qualify Interest begins to accrue after first disbursement The programs listed, including dollar amounts and interest rates, are subject to change as federal budgets are finalized. Please keep in mind that each student’s eligibility will also vary, depending on their family’s size, income, and assets. Subsidized Federal loans are low interest loans offered by the government; they are awarded based on financial need and the interest is subsidized by the government while the student is enrolled at least half-time. Unsubsidized Federal loans are non-need based; the government does not pay the interest on these loans. If ineligible for a subsidized loan, the student may be eligible for an unsubsidized loan. Borrowers can pay the interest on the unsubsidized loan, or wait until they graduate or are no longer enrolled in at least half-time. Interest will begin to accrue on the unsubsidized loan after the first disbursement has been made and the student is responsible for all interest on this type of loan. All loans must be paid back, so borrow only what you need for school. The interest rate for both loans will be released in July 2018.

11 Federal Financial Aid Parent Loan for Undergraduate Students (PLUS)
Parent of dependent students Parent borrower must be credit-worthy Interest begins to accrue after first disbursement 7% fixed interest rate during The programs listed, including dollar amounts and interest rates, are subject to change as federal budgets are finalized. Please keep in mind that each student’s eligibility will also vary, depending on their family’s size, income, and assets. Parents of dependent students can apply for the PLUS loan to supplement their child’s financial aid award. To qualify, the parent must be credit-worthy. Repayment begins shortly after disbursement. To be considered for this loan, the student must complete a FAFSA application. There are PLUS loans available for independent students as well; if you fall into this category, you may wish to visit with your financial aid officer for additional information. PLUS loans require a separate application by the parent borrower found online at

12 Institutional Scholarships
Specific to the college Application may or may not be included in admissions application Find scholarship page on college’s website Watch carefully for scholarship deadline Institutional scholarships exist for returning students also, not just freshmen Institutions offer scholarships to students attending their college, and many are specifically for incoming freshmen. Applications may be part of the admissions application or it may be a separate application. Be sure to watch for scholarship deadlines as they may be early in the student’s senior year of high school. It’s never too early or too late to apply for scholarships! Students are encouraged to apply for institutional scholarships as they continue through college as well.

13 Apply for Financial Aid
FAFSA Free Application for Federal Student Aid Complete as soon as possible after October 1 One application for most types of federal and state financial aid The FAFSA is every student’s first step in applying for financial aid. By completing the FAFSA, you’ll be applying for most types of federal and state financial aid. Families should take note of the new FAFSA start date and complete this form shortly after October 1.

14 FAFSA Chart July 1, 2018 – June 30, 2019 2018 – 19
IF YOU PLAN TO ATTEND COLLEGE FROM YOU WILL SUBMIT THIS FAFSA YOU CAN SUBMIT THE FAFSA FROM USING INCOME & TAX INFORMATION FROM July 1, 2018 – June 30, 2019 2018 – 19 October 1, 2017 – June 30, 2019 2016 July 1, 2019 – June 30, 2020 2019 – 20 October 1, 2018 – June 30, 2020 2017 Students and parents will use prior-prior year tax information to complete the FAFSA. Review the chart to see which FAFSA to submit, when to submit it, and what tax information to use.

15 FAFSA.gov Always use FAFSA.gov Never pay to file the FAFSA
Here’s a screen shot of the FAFSA.gov home page where you start completing the FAFSA application online. Remember to use FAFSA.gov. You should never pay to complete the FAFSA. FAFSA4caster offers families a glimpse at their potential financial aid eligibility.

16 File FAFSA Online Faster processing time
Save and return to application Help and Hints provided Built-in error catcher means fewer delays Electronically sign using your FSA ID Online is the easiest and most efficient way to complete the FAFSA. The online process provides Help and Hints boxes to assist you with questions, and includes built-in edits to help prevent errors. If you file online, next year you’ll be able to complete a renewal FAFSA with some answers already pre-populated with your information. The FSA ID will be used as your electronic signature for the online FAFSA. Student and parent (or spouse) will need one.

17 FSA ID Federal Student Aid ID Username and password
Student and parent must each create their own FSA IDs will be used every year Electronically sign FAFSA Complete student loan paperwork Login to U.S. Department of Education websites FSA ID password expires every 18 months The FSA ID allows you to sign your FAFSA electronically. It also can be used to sign student loan applications and access financial aid information. Parents without SSNs will not be able to get an FSA ID. They’ll have to print a signature page and mail it to Federal Student Aid (FSA) to complete the application. This option is presented at the end of the FAFSA.

18 Using Your FSA ID FAFSA.gov NSLDS.ed.gov StudentLoans.gov
Electronically sign your (or your child’s) FAFSA Import tax information from IRS NSLDS.ed.gov View history of federal student aid Look up loan servicer contact information StudentLoans.gov Complete entrance and exit counseling Electronically sign Master Promissory Note Access Repayment Estimator TEACH-ATS.ed.gov Sign TEACH Grant Agreement to Serve The FSA ID may be used on any of these websites to view various types of information about financial aid or student loans.

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20 Creating an FSA ID Visit FAFSA.gov
Create your FSA IDs before beginning FAFSA Allow 7 – 10 minutes to set up each FSA ID There are several ways to access the FSA ID information: FAFSA.gov StudentAid.ed.gov/fsaid FSAID.ed.gov Students and parents should plan to create their FSA ID prior to starting the FAFSA application.

21 Creating an FSA ID Choose an e-mail account you can access easily
Don’t use a school issued account If username is already taken, choose another Don’t use your name or date of birth in password Select Show Text to see what you’re typing The next few slides offer screen shots for FSA ID creation, explaining in detail what is needed to complete this process. Be sure to use an address you’ll have access to after high school. Don’t use your high school or college issued address since you may eventually lose access to the account. By selecting Show Text, families can see the passwords they’re typing in to assure accuracy.

22 Creating an FSA ID Enter personal information
Social Security Number Date of Birth First Name Middle Initial Last Name Be sure you’ve entered information accurately It’s very important that all information is entered correctly when creating your FSA ID.

23 Personal information will be matched with eight government agencies
FSA ID Information Match Personal information will be matched with eight government agencies Social Security Administration Department of Defense Department of Justice Homeland Security Internal Revenue Service Selective Service Veterans Affairs National Student Loan Data System (NSLDS) When completing a FAFSA and setting up the FSA ID, all student and parent names, SSNs and dates of birth are matched with eight government agencies.

24 Creating an FSA ID Review address, date of birth, username and password Add mailing address and phone numbers Receive secure code via text message or to reset password, retrieve username, or unlock account Applicants are asked to review information previously provided. An address and a phone number are required. Families may also request to view this information in Spanish.

25 Creating an FSA ID Challenge questions allow you to unlock account or reset username and password Select two questions from dropdown menu Create two questions and answers Significant date is optional Challenge questions are included to ensure security. The significant date challenge question is optional. This date may be used for verification if you call the FAFSA Processing Center.

26 Creating an FSA ID E-mail account provided must be verified
Receive with a secure code Subject line: Important: Your FSA ID Validation – Action Required Enter the secure code on this screen Applicants must open their account in a new window to access the Secure Code sent to them. This code is then entered into their FSA ID screen to complete the process.

27 Creating an FSA ID Phone number must be verified
Receive text message with a secure code Enter the secure code on this screen Applicants must open the text message they receive to access the Secure Code sent to them. This code is then entered into their FSA ID screen to complete the process.

28 Using your FSA ID Students can complete, sign and submit a new FAFSA immediately Information matches take 1 – 3 days Cannot make FAFSA corrections or sign student loan paperwork until information matches are complete Students may go ahead and complete, sign and submit their FAFSA application with the FSA ID. If there is a problem verifying the information provided when creating the FSA ID, the student and/or parent will be notified and the FAFSA will not be processed until the situation has been cleared.

29 FAFSA Process After you’ve completed the FSA ID process, you’re ready to complete the FAFSA itself. The next slides outline each step of the process.

30 Financial Information
FAFSA Sections Login Student Demographics School Selection Dependency Status Parent Demographics Financial Information Sign & Submit Confirmation Each section of the FAFSA requires specific information about the student and the parent(s), such as demographic and financial data.

31 FAFSA Login As you begin, you’ll be asked to log in to your FAFSA with the FSA ID. Only the student’s FSA ID will allow someone to access their FAFSA application.

32 FAFSA Login Students must read and decline or accept the disclaimer.
If students decline, they must submit a paper application.

33 FAFSA 2018 – 2019 You must create a “Save Key” in case you don’t complete the FAFSA all at once. When you log out and come back into a FAFSA that hasn’t been submitted, you must enter this “Save Key” to access the information you already filled in.

34 Look at the new application!

35 Special Circumstances
Highly recommended you speak to college’s Financial Aid Office School procedures will vary If you state you’re unable to provide parental information, read this page carefully to make sure you’re eligible to qualify. The school you plan to attend will require documentation to back up your statements.

36 Special Circumstances
Students that do not have a special circumstance but are unable to provide parental information typically qualify for only an unsubsidized student loan If students are unable to provide parental information, but do not have a legitimate circumstance as deemed by the financial aid office, they may be limited on the type(s) of financial assistance they’re eligible to receive.

37 Special Circumstances
Change in income Change in employment status Unusual medical expenses not covered by insurance Changes in parent marital status Unusual dependent care expenses Unable to obtain parent information This is a list of some additional special circumstances that you or your parent may be facing. Speak with your financial aid officer if you have any specific questions.

38 Who is the Parent? Legal parent Not a legal parent Biological parent
Adoptive parent Person the state has determined to be a student’s parent Not a legal parent Grandparent Foster parent Legal guardian Older sibling Aunt or uncle Families should read this information carefully when determining who should be considered the ‘parent’ on their FAFSA. A person is NOT a legal parent unless they have legally adopted the student.

39 Reporting Parent Information
Parents are legally separated or divorced List parent you lived with most during last 12 months Lived with both parents equally: List parent who provided most financial support in last 12 months Divorced parent is remarried List parent and step-parent Parents are unmarried, but living together List information for both parents As you indicate your parents’ marital status, review these tips regarding whose financial information to include on the FAFSA. If both legal parents live together, but aren’t married, they must report BOTH incomes on the FAFSA.

40 Parent Demographics Parent first initial and last name as shown on Social Security card Name and date of birth will be verified with Social Security Administration Parent(s) must provide the first initial of their full first name and date of birth as shown on their Social Security card. If parent(s) is undocumented or not a U.S. citizen, they may enter zeros for the Social Security number. On this slide, we’re featuring legal parents who are Married. The applicant will provide information about the Father/Stepfather and Mother/Stepmother.

41 Included in household size
Defining the Household Included in household size Student Student’s parent(s) listed on FAFSA Other children supported by parent(s) Other people supported by parent(s) Review the Help and Hints box to determine your Household Size. This slide provides instructions on who may be counted in the Household Size.

42 Parent Income Use 2017 tax information Select tax filing status
Already completed Will file Not going to file If Already completed, enter tax figures manually or Link to IRS If parents choose to do so, they may download their tax information directly into the FAFSA via the IRA Data Retrieval Tool.

43 IRS Data Retrieval Tool
IRS sends tax data directly to FAFSA Voluntary, but strongly recommended Reduces documents requested by financial aid office and speeds up awarding process Due to increased security measures, transferred data will not show on screen Financial aid office must make any changes to transferred data Using the IRS Data Retrieval Tool simplifies the FAFSA process for students now and when they begin college. Electronically filed tax information will be available 3 weeks after the return has been accepted by the IRS (only applies to late filers since using 2016 tax information).

44 Parent Income Adjusted gross income Income earned from work
Federal benefits programs If you choose to manually enter your tax information, the FAFSA questions will include the tax return’s line number to locate the answers.

45 Parent Income Education credits Child support paid Combat pay
Untaxed income Child support received Housing, food, living allowances Tax exempt interest Payments to tax-deferred pension and retirement savings plans Veterans non-education benefits This page requires information on any untaxed income or parental assets.

46 Student Income Type of tax return filed Income earned Taxes paid
Students can indicate if they’ve filed their taxes, if they will file, or if they won’t file at all. Students also have to option to use the IRS Data Retrieval Tool to download their tax information from the IRS. Even if you aren’t required to file a tax return because you didn’t make much money last year, you are required to report your income on the FAFSA. The Help and Hints suggestion box on the right side will provide the corresponding line numbers on the return for each question.

47 Sign & Submit Review answers Make changes before submitting
Student and parent enter FSA IDs to electronically sign Click Submit My FAFSA Now Click ‘View or Print Your FAFSA Information’ to review all of your answers for accuracy before the FAFSA is submitted. Student and parent will enter their FSA ID information to electronically sign their FAFSA application. Don’t forget to hit ‘Submit My FAFSA Now’ when you’re done. Parents without SSNs will not be able to get an FSA ID. They’ll need to print a signature page and mail it to Federal Student Aid (FSA) to complete the application.

48 Confirmation Page Estimated Family Contribution (EFC) is provided
See early estimate of financial aid eligibility After you hit ‘Submit My FAFSA Now’ you’ll receive a Confirmation Page. You will see an estimate of your eligibility for the Pell Grant and Federal student loans. You will also see an estimate of your Expected Family Contribution, or EFC. Please keep in mind this is an estimate. Financial Aid offices make the final determination and notification of eligibility.

49 After the FAFSA The FAFSA is just the first step in paying for college. The next several slides will outline what to expect after you’ve submitted your FAFSA online.

50 After FAFSA Submission
Receive notification when FAFSA is processed FAFSA information is sent to school(s) listed School(s) use FAFSA information to determine financial aid eligibility School(s) will contact you if they need more information or when they have determined what your financial aid award is Contact your school(s) with questions about your financial aid award Schools contact students in a variety of ways. Be sure you check your college issued account and watch for mail to arrive from the school’s you’ve been accepted to.

51 Student Aid Report (SAR)
10/01/2016 10/10/2016 Summarizes FAFSA information Available after FAFSA is processed Review for accuracy School(s) on FAFSA also receive a summary A Student Aid Report (SAR) is a summary of the information you provided on the FAFSA. It will be sent to you electronically or via paper, depending on how you filed your FAFSA application. Review the SAR for any errors.

52 Making Corrections Corrections to the FAFSA may be made by
Accessing your FAFSA online at FAFSA.gov Updating items on paper SAR and mailing to Federal Student Aid (FSA) Submitting documentation to the college’s financial aid office Corrections to income information must be made through a financial aid office Corrections to your FAFSA information can be made a number of ways. All changes made will be forwarded to the school(s) you’ve chosen to receive your FAFSA results.

53 Questions ?


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