1. 1 Education Beyond High School FINANCIAL AID NIGHT Sharon Eaton Assistant Director of Financial Aid UNH Manchester

2. 2 Agenda 1. Re$pon$ible U 2. Goal of financial aid 3. Types of financial aid applications 4. How financial aid awards are determined 5. Description of the major federal financial aid programs 6. Financial aid calendar/resources

3. Re$pon$ible U Reaching your Educational Goals While Winning with Money College is an investment in your future, but don’t forget to evaluate from a financial standpoint College is an investment in your future, but don’t forget to evaluate from a financial standpoint Income Potential Income Potential Cost Cost Resources and Financial Aid Resources and Financial Aid Don’t forget to budget! Don’t forget to budget! 3

4. 4 Goal of Financial Aid Primary goal is to assist students in paying for college and is achieved by: Primary goal is to assist students in paying for college and is achieved by: Evaluating family’s ability to pay for educational costs Evaluating family’s ability to pay for educational costs Distributing limited resources in an equitable manner Distributing limited resources in an equitable manner Providing a balance of gift aid and self-help aid Providing a balance of gift aid and self-help aid

5. 5 Types of Financial Aid Gift aid: Grants and scholarships Gift aid: Grants and scholarships Self-help aid: Loans and employment Self-help aid: Loans and employment

6. 6 Federal Institutional State Private/local Primary Sources of Financial Aid

7. 7 Applications That May Be Required FAFSA Form FAFSA Form CSS Profile CSS Profile Institutional Forms Institutional Forms To ensure maximum consideration for federal, state, and institutional aid, check information from each school to determine required application materials and application deadlines

8. 8 Overview of the FAFSA

9. 9 Free Application for Federal Student Aid (FAFSA) Collects family’s personal and financial information used to calculate the student’s EFC Collects family’s personal and financial information used to calculate the student’s EFC May be filed electronically at www.fafsa.gov or using paper form that can be printed from the website May be filed electronically at www.fafsa.gov or using paper form that can be printed from the website www.fafsa.gov Forms are available in English and Spanish Forms are available in English and Spanish

10. 10 FAFSA Information is used to calculate the Expected Family Contribution or EFC Information is used to calculate the Expected Family Contribution or EFC The EFC is 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 the academic year The EFC is 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 the academic year Colleges use the EFC to award financial aid Colleges use the EFC to award financial aid

11. 11 CAUTION! Avoid being charged a fee to file the FAFSA Avoid being charged a fee to file the FAFSA Processes of completing and processing the FAFSA are FREE Processes of completing and processing the FAFSA are FREE If filing FAFSA on the Web, make sure you go directly to: www.fafsa.gov If filing FAFSA on the Web, make sure you go directly to: www.fafsa.gov Contact the financial aid office if you need help in completing the FAFSA Contact the financial aid office if you need help in completing the FAFSA

12. 12 The FAFSA may be filed at any time during the academic year, but no earlier than the January 1 st prior to the academic year for which the student will be attending. The FAFSA may be filed at any time during the academic year, but no earlier than the January 1 st prior to the academic year for which the student will be attending. For the 2015-2016 academic year, the FAFSA may be filed beginning January 1, 2015. For the 2015-2016 academic year, the FAFSA may be filed beginning January 1, 2015. Colleges often set their own FAFSA filing deadlines. Be sure to check the FAFSA deadline for the institutions which you may be considering. It is important to meet institutional or priority deadlines in order to be considered for all types of aid available. Colleges often set their own FAFSA filing deadlines. Be sure to check the FAFSA deadline for the institutions which you may be considering. It is important to meet institutional or priority deadlines in order to be considered for all types of aid available. Timing is important!

13. 13 Ready to file? Information you will need: Driver’s license Driver’s license Social Security card Social Security card Permanent Residency card Permanent Residency card Student & parent 2014 tax returns (or prior year tax return) Student & parent 2014 tax returns (or prior year tax return) 2014 W-2 forms 2014 W-2 forms Untaxed income records (such as social security, non- education veteran benefits, or state assistance records) Untaxed income records (such as social security, non- education veteran benefits, or state assistance records) Child support (paid or received) for the tax year Child support (paid or received) for the tax year Bank statements Bank statements 1099 forms documenting interest earned for 2014 1099 forms documenting interest earned for 2014 Investment records Investment records

14. 14 FAFSA on the Web: www.fafsa.gov

15. FAFSA on the Web www.fafsa.gov Available on January 1, 2015 Available on January 1, 2015 2015-2016 FAFSA on the Web Worksheet— Used as “pre-application” worksheet Used as “pre-application” worksheet Questions follow order of FAFSA on the web Questions follow order of FAFSA on the web

16. 16 Section 1: Student information General student information: Name Name Social Security number Social Security number Citizenship Citizenship Marital status Marital status Selective Service Registration Selective Service Registration Drug Conviction Status Drug Conviction Status Parents’ educational background Parents’ educational background High School attended High School attended

17. 17 Section 2: Student’s dependency status Student’s dependency status: If all “No” responses, student is dependent If all “No” responses, student is dependent Parental information is requested Parental information is requested If “Yes” to any question, student is independent If “Yes” to any question, student is independent

18. Parental Information The big question, who is considered a parent? Parents are defined by their relationship to the student and whether they live in the household. Parents are defined by their relationship to the student and whether they live in the household. Marital status Marital status 18

19. 19 Section 3: Parental information Data for parents of dependent students: Name, Social security number, DOB, marital status Name, Social security number, DOB, marital status Dislocated worker status Dislocated worker status Tax filing status and type of return filed Tax filing status and type of return filed Adjusted Gross Income (AGI) for 2014 Adjusted Gross Income (AGI) for 2014 Income earned from work Income earned from work Untaxed income Untaxed income Federal benefits received by anyone in the parents’ household (Free/Reduced Lunch, SSI, SNAP/WIC, etc) Federal benefits received by anyone in the parents’ household (Free/Reduced Lunch, SSI, SNAP/WIC, etc)

20. 20 Section 3: Parental Assets Applicants may be asked about specific assets and investments information which may include: Cash, savings, and checking Cash, savings, and checking Net worth of investments Net worth of investments Includes stocks, bonds, mutual funds, trust funds, real estate, and 529 savings plans owned by the parent Includes stocks, bonds, mutual funds, trust funds, real estate, and 529 savings plans owned by the parent Do not include value of the home you live in, retirement funds, or life insurance, family-owned farm or business Do not include value of the home you live in, retirement funds, or life insurance, family-owned farm or business Net worth of personal business and investment farms Net worth of personal business and investment farms Net worth of investments = total current market value

21. 21 Section 4: Student finances Financial data for student (and spouse): Dislocated worker status Dislocated worker status Tax filing status and type of return filed Tax filing status and type of return filed Adjusted Gross Income (AGI) for 2014 Adjusted Gross Income (AGI) for 2014 Income earned from work Income earned from work Untaxed income Untaxed income Additional financial information (including savings & investments) Additional financial information (including savings & investments)

22. Additional information needed List up to 10 colleges to receive FAFSA data: Federal School Code for each college Federal School Code for each college Housing plans for each college Housing plans for each college

23. 23 Signatures Student signature is required, including one parent signature if student is dependent Student signature is required, including one parent signature if student is dependent Three options - Can provide signature electronically with PIN, print and mail signature page from FAFSA on the web, or sign paper application to be mailed Three options - Can provide signature electronically with PIN, print and mail signature page from FAFSA on the web, or sign paper application to be mailed When completing FAFSA, be sure to remember to save your progress as you go and then click the submit button When completing FAFSA, be sure to remember to save your progress as you go and then click the submit button Your application is not submitted until you receive a confirmation number Your application is not submitted until you receive a confirmation number

24. Student Financial Aid Personal Identification Number (SFA PIN) Web site: www.pin.ed.gov Web site: www.pin.ed.gov Sign FAFSA electronically Sign FAFSA electronically Can request PIN before January 1, 2015 Can request PIN before January 1, 2015 Not required, but speeds processing Not required, but speeds processing Student and parent require separate PINs Student and parent require separate PINs May be used by students and parents throughout aid process, including subsequent school years May be used by students and parents throughout aid process, including subsequent school years

25. 25 Avoid ERRORS! Errors made in completing the FAFSA and/or supplemental forms may delay application processing and result in the loss of financial aid funds. Please complete all forms carefully!

26. 26 Frequent FAFSA Errors Social Security numbers Social Security numbers Divorced/remarried parent information Divorced/remarried parent information Income earned by parents/stepparents Income earned by parents/stepparents Untaxed income Untaxed income U.S. income taxes paid U.S. income taxes paid Household size Household size Number in postsecondary education Number in postsecondary education Real estate and investment net worth Real estate and investment net worth

27. 27 FAFSA Processing Results CPS notifies the student of the FAFSA’s processing results by: CPS notifies the student of the FAFSA’s processing results by: E-mail notification containing a direct link to student’s SAR online if student’s e-mail provided on paper FAFSA or FAFSA on the Web E-mail notification containing a direct link to student’s SAR online if student’s e-mail provided on paper FAFSA or FAFSA on the Web Paper Student Aid Report (SAR) if paper FAFSA filed and student’s e-mail address was not provided Paper Student Aid Report (SAR) if paper FAFSA filed and student’s e-mail address was not provided SAR Acknowledgement if filed via FAFSA on the Web and student’s e-mail address was not provided SAR Acknowledgement if filed via FAFSA on the Web and student’s e-mail address was not provided If student has a PIN, can view SAR online at www.fafsa.ed.gov/studentaccess.htm If student has a PIN, can view SAR online at www.fafsa.ed.gov/studentaccess.htm

28. 28 Corrections If necessary, corrections to FAFSA data may be made by: Using FAFSA on the Web (www.fafsa.gov) if student has a PIN; Using FAFSA on the Web (www.fafsa.gov) if student has a PIN; Updating paper SAR or Updating paper SAR or Submitting documentation to college’s financial aid office Submitting documentation to college’s financial aid office SAR Acknowledgement cannot be used to make corrections

29. 29 CSS Profile Form and Institutional Applications

30. 30 To Register for the CSS Profile: Online Registration – $25 initial application – $16 reporting fee per school – Waivers during registration – $25 non-custodial parent form

31. 31 Institutional Application Required by some schools to better assess students’ and parents’ ability to pay for college Required by some schools to better assess students’ and parents’ ability to pay for college Typically, the institutional application is provided as part of the admissions application Typically, the institutional application is provided as part of the admissions application

32. 32 Role of the Financial Aid Office Verifies information provided by students and parents Verifies information provided by students and parents Determines eligibility for financial aid Determines eligibility for financial aid Packages aid Packages aid Sends an award letter which may include: Sends an award letter which may include: Student’s cost of attendance Student’s cost of attendance Student’s EFC Student’s EFC Amount of student’s financial need Amount of student’s financial need Programs and amount from each program for which the student is eligible Programs and amount from each program for which the student is eligible How and when aid will be disbursed How and when aid will be disbursed Terms and conditions of student’s award Terms and conditions of student’s award

33. 33 To the extent they are able, parents have primary responsibility to pay for their dependent children’s education Students also have a responsibility to contribute to their educational costs Families should be evaluated in their present financial condition A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect its ability to pay Principles of Need Analysis

34. 34 Definition of Need Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need * * Need refers to a student’s maximum eligibility for financial aid

35. 35 Cost of Attendance Costs can be considered direct or indirect costs Tuition and fees Tuition and fees Room and board Room and board Books and supplies, equipment, transportation, and miscellaneous personal expenses Books and supplies, equipment, transportation, and miscellaneous personal expenses Loan fees Loan fees Study abroad costs Study abroad costs Dependent care expenses Dependent care expenses Expenses related to a disability Expenses related to a disability Expenses for cooperative education program Expenses for cooperative education program

36. 36 Financial Aid 101 Filling the “Cost of College Bucket” Gift Aid = Pell Grant, Institutional Grant, Outside Scholarship Self-Help Aid = Work Study, Federal Loan GAP = unmet need Expected Family Contribution (EFC) From past, present and future income EFC + GAP = Family Share

37. 37 Cost of Attendance20,000 Estimated Family Contribution- 6,000 Eligibility for Financial Aid14,000 Financial Aid Package - University Grant 5,000 - Presidential Scholarship 2,000 - Federal Student Loan3,500 - Federal Work Study 1,000 Total Award 11,500 Determining the Financial Aid Package Eligibility 14,000 Financial Aid - 11,500 Gap = 2,500 GAP 2,500 +EFC 6,000 = Total Family Share8,500

38. 38 Types of Aid Institutional Aid Institutional Aid Scholarships and grants from the college or university Scholarships and grants from the college or university Federal Grant Programs Federal Grant Programs − Federal Pell Grant − Federal Supplemental Educational Opportunity Grant (FSEOG) Federal Work-Study Federal Work-Study Campus-based program that provides employment for undergraduate and graduate students Campus-based program that provides employment for undergraduate and graduate students Federal Perkins Loan Federal Perkins Loan 5% interest rate, nine-month grace period, 10-year repayment 5% interest rate, nine-month grace period, 10-year repayment Direct/Stafford Loans Direct/Stafford Loans School determines eligibility and delivers loan proceeds to the student. 4.66% fixed interest rate, 10-20 year repayment period, deferment provisions available School determines eligibility and delivers loan proceeds to the student. 4.66% fixed interest rate, 10-20 year repayment period, deferment provisions available PLUS Loans PLUS Loans Separate application process at www.studentloans.gov, 7.21% fixed rate Separate application process at www.studentloans.gov, 7.21% fixed ratewww.studentloans.gov

39. 39 Costs of Borrowing Direct Loans Fixed interest rate – currently 4.66% for subsidized loans and unsubsidized loans Fixed interest rate – currently 4.66% for subsidized loans and unsubsidized loans Loan fees based on principal amount of each loan: Loan fees based on principal amount of each loan: 1% origination fee (varies depending on date the loan disburses) 1% origination fee (varies depending on date the loan disburses)

40. 40 Other Sources of Funds State grants, scholarships, loans and work programs State grants, scholarships, loans and work programs School need-based and non-need based programs School need-based and non-need based programs Academic, athletic, and other talent-based scholarships and grants Academic, athletic, and other talent-based scholarships and grants Private business scholarships Private business scholarships Parents’ and students’ places of employment Parents’ and students’ places of employment Civic organization scholarships Civic organization scholarships High school guidance office High school guidance office

41. 41 Avoid Being Scammed! For information about financial aid scams and tips to avoid being scammed check: For information about financial aid scams and tips to avoid being scammed check: Department of Education’s web site at: www.ed.gov/prog_info/SFA/LSA Department of Education’s web site at: www.ed.gov/prog_info/SFA/LSA Federal Trade Commission’s web site at: www.ftc.gov/bcp/conline/publs/alerts/ouchart.htm Federal Trade Commission’s web site at: www.ftc.gov/bcp/conline/publs/alerts/ouchart.htm To check the legitimacy of scholarship search organizations or individuals check Better Business Bureau’s web site at: To check the legitimacy of scholarship search organizations or individuals check Better Business Bureau’s web site at: http://search.bbb.org/search.html http://search.bbb.org/search.html

42. 42 Financial Aid Calendar January (or earlier for CSS Profile) Complete Financial aid forms Remember, better to estimate than wait for the correct information and miss deadlines To estimate, use your last paycheck, w-2s, or last year’s tax return as a guide. February Many school financial aid deadlines Late February–March Schools may call you with questions March-April Admissions notification and financial aid award letters mailed

43. 43 Financial Aid Calendar April Compare award letters from different schools May DECISION DEADLINE on May 1 st Notify each school of your decision Pay deposits (tuition, room and board, etc.) July Receive bill for the Fall semester

44. 44 Questions? Presented by: Sharon Eaton Assistant Director of Financial Aid UNH Manchester Tel: (603) 641-4189