1. Finding Money for College
Basics of Financial Aid and the FAFSA
Presented by Augustana University

2. Types and Sources of Financial Aid
Types of Financial Aid
Grants
Scholarships
Work-study
Loans
Sources of Aid
Colleges and Universities
State
Private sources
Employers
Federal Government
Financial aid is money for education expenses for college or career school.
Grants do not have to be repaid (they are often called “gift aid”).
Work-study is money earned by the student at a job (often on campus) that helps the student pay his or her education expenses. This money does not have to be repaid and is not taken into account in assessing a student’s eligibility for financial aid the following year.
Loans have to be repaid with interest.
Scholarships are funds that do not have to be repaid. Scholarships are usually based on academic merit but can be based on a student’s interests, hobbies, religion, ethnicity, and/or financial need.
Colleges and Universities – awarded based on need and merit
Aid can be gift or self help
State = SDOS and Dakota Corps
Private = HS Counselor!
Federal Government – GI BILL or Voc Rehab

3. SD State Aid - SDOS Attend postsecondary school in SD
$6,500 over 4 years:
$1,300 for years 1, 2 & 3
$2,600 for year 4
SD Resident with 3.0 GPA
ACT of 24 or higher and completed the Regent Scholar curriculum, with no grade below a C or ACT of 28 or higher.
High School and College certify the eligibility
Must maintain a 3.0 GPA
Must complete 30 credits every year
Application available at the HS or at
Due to the college by September 1st

4. SD State Aid – Dakota Corps
Full tuition at participating SD schools
SD HS graduate with a 2.8 GPA and minimum ACT score of 27.
VERY competitive; limited number of recipients
Agree to stay and work in SD in a critical need area:
HS Math, Science or career/technical teacher
K-12 Special Education
Nursing
Accounting
Information Technology
Engineering
Deadline is February 1st
Application available at

5. SD State Aid – Additional Options
Jump Start:
Available to students who graduate from a SD public school in three years or less.
Attend a SD college, university or technical school
Non-SD-State-Funded option:
Build Dakota: Full tuition, fees, books and supplies at a SD technical institute. Must live and work in SD, in their approved field, for three years following graduation
More information at

6. How is my federal aid determined?
Financial need determined by Expected Family Contribution (EFC) and cost of attendance (COA)
EFC comes from what you report on FAFSA®
indication of ability to pay
stays the same at each school
COA is made up of tuition, fees, room and meals, transportation, and personal expenses
Varies school to school
COA – EFC = financial need
EFC is determined by a formula that takes into account information such as the student’s and parents’ income and (often) their assets, how many people are in the family household, and how many of those people are in college. For a full explanation of the EFC formula, go to StudentAid.gov/resources#efc.
EFC is an indication of eligibility
Cost of attendance is the basis for determining student aid eligibility
Cost of attendance is determined by the school and may include:
Tuition and fees
Books, supplies, transportation, personal, miscellaneous
Room and board
Dependent care
Study-abroad expenses
Disability expenses
Employment expenses for co-op study
Loan fees
Financial need is determined by subtracting the EFC from the COA. Because COA differs from school to school, a student’s financial need will also differ from school to school.
Parents – APA
Student = Assets = 20% / Ernings = up to $6200 protected then 50%
Mostly the EFC is income and household size/number in college

7. What Federal Aid is Available?
Availability of Federal Aid is determined by need
Maximum amounts for a dependent 1st year student:
Direct Subsidized and Unsubsidized Loans: $5,500 total
Direct PLUS Loan (parent is the borrower):
COA minus other aid received = maximum eligibility
Approval based on credit
This slide lists the most commonly known federal student aid programs. Information about the others is available at the URL shown on the slide.
The maximum awards listed on this slide are just that: maximum awards. There is no guarantee that any single student will receive the maximum award from any program.
Not all schools participate in all of these programs.
The student must have a significant level of financial need in order to receive maximum grant awards.
Students should be aware that Federal Work-Study funds may run out, so it is important to apply as early as possible.
(Note that the Direct PLUS Loan is also available to graduate and professional students, but this example is for an incoming freshman, so we’ve only mentioned that the parent can get a PLUS.)
You may wish to hand out the document “Do You Need Money for College?” (available at the URL on the slide) to your attendees to provide them a high-level understanding of federal student aid.

8. What Federal Aid is Available?
Federal Pell Grant: $0 - $6,195 based on EFC of and below.
SEOG (if eligible for Pell Grant): $100 - $4,000
Federal Work-Study: depends on funds available at school
Federal TEACH Grant : up to $3,752
This slide lists the most commonly known federal student aid programs. Information about the others is available at the URL shown on the slide.
The maximum awards listed on this slide are just that: maximum awards. There is no guarantee that any single student will receive the maximum award from any program.
Not all schools participate in all of these programs.
The student must have a significant level of financial need in order to receive maximum grant awards.
Students should be aware that Federal Work-Study funds may run out, so it is important to apply as early as possible.
(Note that the Direct PLUS Loan is also available to graduate and professional students, but this example is for an incoming freshman, so we’ve only mentioned that the parent can get a PLUS.)
You may wish to hand out the document “Do You Need Money for College?” (available at the URL on the slide) to your attendees to provide them a high-level understanding of federal student aid.

9. How do I start the FAFSA? https://fsaid.ed.gov
The student and one parent need an FSA ID
Must have a unique address for each FSA ID
Sign FAFSA electronically
Will be used by students and parents throughout aid process, including subsequent school year
Used for all FSA websites
FSA pointers
Unique address
Set up your own FSA ID

10. How do I complete the FAFSA?
Fill out your FAFSA at fafsa.gov.
Apply on or after October 1
State deadlines are at fafsa.gov.
School deadlines are listed on schools’ websites.
Import tax information directly from the IRS
Need help? Each question has a help menu that opens up when you click on that field. Live Chat and calling FED-AID are also options.
Don’t forget: watch for the confirmation page that says your FAFSA has been submitted. THEN log out.
The FAFSA is available online (in English or Spanish) October 1 of each year.
fafsa.gov provides help screens and live chat with a customer service representative (during business hours). Additionally, the FED-AID hotline can guide the student through the FAFSA. Operators speak English and Spanish.
Students need to understand that they have not finished with the FAFSA until they have submitted it and have a confirmation page on the screen.
Paper FAFSAs can take as much as 2.5 weeks longer to process than the online FAFSA.
USE THE IRS DATA RETREVIAL OPTION!

11. Common FAFSA Questions
Do I have to use parent information on the FAFSA?
In general, yes, unless one of the following apply:
24 years of age
Graduate student
Veteran
Married
Have a child or other dependent
Orphan or ward of the court or in foster care
Certifiably homeless

12. Common FAFSA Questions
Who is the “Parent?”
Biological or Adoptive parent
Legal Guardians and grandparents are not considered “parents” on FAFSA
Divorced/separated: if living together, include both parent incomes. If not living together, use parent with whom student lives with most
Step-parent information must be included in remarriages
Page page 6&10 = definition
Step Four (Parent): Complete this step if you (the student) answered “No” to all questions in Step Three. Answer all the questions in Step Four even if you do not live with your legal parents (biological, adoptive, or as determined by the state [for example, if the parent is listed on the birth certificate]). Grandparents, foster parents, legal guardians, widowed stepparents, aunts, uncles, and siblings are not considered parents on this form unless they have legally adopted you. If your legal parents are married to each other, or are not married to each other and live together, answer the questions about both of them. If your parent was never married or is remarried, divorced, separated or widowed, see StudentAid.gov/fafsa-parent and/or Notes page 10 for additional instructions.

13. Common FAFSA Questions
What asset information is reported?
Value of primary home not included
Value of retirement plans not included
Farm value not included if live on farm and materially participate in farming
Small business value not included if 100 or fewer full-time employees
College savings plans are included as a parent asset.
Net worth means the current value, as of today, of investments, businesses, and/or investment farms, minus debts related to those same investments, businesses, and/or investment farms. When calculating net worth, use 0 for investments or properties with a negative value.
Investments include real estate (do not include the home in which you live), rental property (includes a unit within a family home that has its own entrance, kitchen, and bath rented to someone other than a family member), trust funds, UGMA and UTMA accounts, money market funds, mutual funds, certificates of deposit, stocks, stock options, bonds, other securities, installment and land sale contracts (including mortgages held), commodities, etc.
Investments also include qualified educational benefits or education savings accounts (e.g., Coverdell savings accounts, 529 college savings plans and the refund value of 529 prepaid tuition plans). For a student who does not report parental information, the accounts owned by the student (and/or the student’s spouse) are reported as student investments in question 42. For a student who must report parental information, the accounts are reported as parental investments in question 91, including all accounts owned by the student and all accounts owned by the parents for any member of the household.
Money received, or paid on your behalf, also includes distributions to you (the student beneficiary) from a 529 plan that is owned by someone other than you or your parents (such as your grandparents, aunts, uncles, and non-custodial parents). You must include these distribution amounts in question 45j.
Investments do not include the home you live in, the value of life insurance, retirement plans (401[k] plans, pension funds, annuities, noneducation IRAs, Keogh plans, etc.) or cash, savings and checking accounts already reported in questions 41 and 90.
Investments also do not include UGMA and UTMA accounts for which you are the custodian, but not the owner.
Investment value means the current balance or market value of these investments as of today. Investment debt means only those debts that are related to the investments.
Business and/or investment farm value includes the market value of land, buildings, machinery, equipment, inventory, etc. Business and/or investment farm debt means only those debts for which the business or investment farm was used as collateral.
Business value does not include the value of a small business if your family owns and controls more than 50 percent of the business and the business has 100 or fewer full-time or full-time equivalent employees. For small business value, your family includes (1) persons directly related to you, such as a parent, sister or cousin, or (2) persons who are or were related to you by marriage, such as a spouse, stepparent or sister-in-law.
Investment farm value does not include the value of a family farm that you (your spouse and/or your parents) live on and operate.

14. Frequent FAFSA Errors Social Security Numbers
Divorced/remarried parental information
Income earned by parents/stepparents
Untaxed income
Federal income taxes paid
Household size
Number of household members in college
Real estate and investment net worth

15. Special Circumstances
Change in employment status
Unusual medical expenses not covered by insurance
Change in parent marital status
Unusual dependent care expenses
Student cannot obtain parental information

16. What Happens Next
School will receive an electronic copy of your FAFSA 3-5 days from submission.
School will reach out with any additional information they may need from the family.
Financial aid awards will be mailed to the student with information on what steps will be needed to secure the award.

17. Where can I get more info?
StudentAid.gov
Info about aid programs
Links to free scholarship and college searches
FED-AID
Help with FAFSA

18. Outside Scholarship s Prioritize local & regional scholarships
Places of employment, church, clubs and volunteer work
Sioux Falls Area Community Foundation
Utilize resources of high school counselor
Watch due dates
National Scholarship Searches
scholarships.com
fastweb.com

19. Augustana University financial.aid@augie.edu 605.274.5216
Questions?
Augustana University