1. PRESENTED BY: VIRGINIA TECH HIGH SCHOOL NIGHT

2. TOPICS Financial Aid 101 Types of Aid Available Application Process Effect of Outside Aid Special Circumstances

3. FINANCIAL AID 101 DEFINITION OF NEED Cost of Attendance (COA) - Expected Family Contribution (EFC) Financial Need

4. TRAVEL OTHER ROOM/BOARD TUITION/FEES BOOKS PERSONAL Each school’s COA will be Different COST OF ATTENDANCE

5. EXPECTED FAMILY CONTRIBUTION (EFC) Amount family can “reasonably” be expected to contribute Two Components Parent contribution Student contribution Calculated using FAFSA data Stays the same regardless of college

6. CLARIFICATIONS Cost of Attendance Estimate of all possible expenses Direct and indirect costs Not the college/university bill Expected Family Contribution Not what you must pay/contribute Figure used to determine aid eligibility

7. WHAT IS FINANCIAL AID? Cost of Attendance Family’s Contribution

8. WHERE DOES IT COME FROM? Federal Government State Government College/University Private Sources

9. TYPES OF FINANCIAL AID Scholarships Grants Employment Loans

10. SCHOLARSHIPS Money that does not have to be paid back Based on merit, skill, or a unique characteristic Some require financial need

11. SCHOLARSHIPS Sources Civic Organizations Churches Employers Schools Free on-line web searches www.finaid.org http://apps.collegeboard.org/cbsearch_ss/welcome.jsp

12. GRANTS Money that does not have to be paid back Typically based on financial need Funded by: Federal funds State funds College/University funds

13. GRANTS – FEDERAL Pell Grant Supplemental Educational Opportunity Grant (FSEOG) Teacher Education Assistance for College and Higher Education (TEACH) Grant Not all schools participate Not all programs at a school qualify

14. GRANTS - STATE Virginia Guaranteed Assistance Program (VGAP) Commonwealth Award Virginia Tuition Assistance Grant (TAG) Private schools only Virginia Transfer Grant

15. EMPLOYMENT – WORK STUDY Must work to earn aid On and off-campus jobs Payment Method varies: Paycheck Credit to account Room and board 15

16. LOANS Money borrowed for educational purposes Must be repaid Borrower - Student or Parent Repayment begins: Student After graduation After enrollment drops below full or half-time Parent Sixty days after disbursement May request deferment while the student is in school Interest will accrue

17. FEDERAL LOANS – STUDENT Federal Perkins Interest deferred while enrolled at least ½ time 9 month grace period prior to repayment Interest at repayment - fixed 5% Federal Subsidized Stafford Interest deferred while enrolled at least ½ time 6 month grace period prior to repayment Interest at repayment - fixed 6.8% Federal Unsubsidized Stafford Interest accrues from disbursement 6 month grace period prior to repayment Interest – fixed 6.8% 17

18. FEDERAL LOANS - PARENT Federal Parent PLUS One parent is the borrower Option to defer repayment 7.9% Fixed interest rate On-line application Credit check required 18

19. APPLICATION PROCESS Know all college deadlines Request a PIN (personal ID number) Complete the Free Application for Federal Student Aid (FAFSA) Complete any other required applications Submit any requested documents

20. PIN www.pin.ed.gov Electronic FAFSA signature Electronic signature for master promissory note  Student – unique to the student  Parent – unique to the parent, may be used with multiple children in college May request any time

21. FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA) www.fafsa.gov 2012-2013 application available January 1 st Collects demographic & financial data Free application Used to calculate the EFC Meet all deadlines File with estimated tax figures File prior to admissions offers

24. GENERAL STUDENT CRITERIA  U.S. citizen or eligible non-citizen  Registered with Selective Service (if male and required)  Valid social security number (SSN)  Eligibility not terminated due to drug-related conviction  Enrolled or accepted into an eligible degree/certificate program

25. FAFSA ON THE WEB NAVIGATION

26. SCHOOL INFORMATION Can search for code if needed

27. DEPENDENCY Assume that student is dependent Assumption may be wrong if: Both of student’s parents are deceased Student was placed in foster care at age 13 or older Student is a ward of the court Student has a legal guardian

28. PARENT INFORMATION The student’s biological parent(s) or adoptive parent(s) should be reported on FAFSA Grandparents, legal guardians, etc. should not provide FAFSA information Divorce/Separation Who did the student live with the most in the past 12 months? If neither parent, which parent provided the most financial support (ex. health insurance)? 28

29. PARENT MARITAL STATUS Marital status as of the day the FAFSA is complete

30. HOUSEHOLD SIZE

31. Student Parent(s) Dependents Others who live with you and your parents are providing more than half their support and will continue to provide more than half their support from July 1, 2012 – June 30, 2013

32. FEDERAL MEANS TESTED BENEFITS Supplement Security Income (SSI) Food Stamps – may be required to verify amounts received in 2010 or 2011 Free or Reduced Lunch Temporary Assistance for Needy Families (TANF) Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)

33. DISLOCATED WORKER Considered dislocated if: Lost job Laid off or have received a lay-off notice Self-employed but unemployed due to economic conditions or natural disaster Dislocated homemaker Not a dislocated worker if you quit your job – even if you receive unemployment benefits

34. EARNINGS & ASSET INFORMATION STUDENT PARENT INCOME OTHER FINANCIAL INFORMATION ASSETS

35. TAX INFORMATION What income tax return did you parent’s file or will file for 2011? IRS 1040 IRS 1040A or 1040 EZ Foreign tax return Tax return with Puerto Rico, another U.S. territory or a freely associated state Are you eligible to file a 1040 EZ?

36. Tax Information Have your parents completed a 2011 IRS income tax return or other income tax return? Already filed Will file Will not file

37. IRS DATA RETRIEVAL Electronic transfer of data from IRS database to FAFSA Available to most parents and students IRS Data Retrieval available Feb 1, 2012 Approximately 2 weeks after filing electronically Approximately 6-8 weeks after submitting tax return by mail

38. IRS DATA RETRIEVAL To be eligible you must have: Valid SSN Have filed 2011 federal tax return Have an unchanged marital status since Dec 31, 2011 Not eligible if: Tax filing status is Married Filing Separately If indicated ‘Married’ on the FAFSA Tax filing status is Head of Household If indicated ‘Married’ on FAFSA Filed an amended tax return Filed a Puerto Rican or foreign tax return

39. IRS DATA RETRIEVAL– FILTER QUESTIONS

40. IRS DATA RETRIEVAL Accessable through FASFA corrections link File FAFSA early to meet deadlines Submit corrections once information is available PIN is required If filing status is ‘already filed” on FAFSA – link to IRS site will be available

41. UNTAXED INCOME Tax deferred payments to pension and savings plans IRA deductions, SEP, SIMPLE and Keogh Child support received Untaxed portions of pensions Housing, food, and other living allowances

42. ADDITIONAL FINANCIAL INFORMATION Educational Credits Child support paid (documentation may be required) Taxable portion of scholarships and grants Combat pay or special combat pay only if included in your adjusted gross income

43. Check all items that apply Will prompt for amounts on selected items

44. ASSETS Report net values Net = current value minus debt Investments include  Trust funds  Real estate  CDs, stock, money market accounts  Coverdell savings account  529 college plans Investments do not include Primary home Retirement accounts Life insurance plans

45. ASSETS – BUSINESS OR FARM Value includes: Land Buildings Equipment Inventory Debt includes: Debt for which the business/farm was used as collateral

46. ASSETS – BUSINESS OR FARM Do not include: Value of family farm that you live on and operate Value of small business that you own, control, and has fewer than 100 full-time or full-time equivalent employees

47. Asset Threshold Asset information is not required if amounts are less than threshold Threshold amount is different for everyone If unsure, provide asset information

48. SIGNATURES STUDENT SIGNATURE PARENT SIGNATURE

49. CONFIRMATION PAGE

50. ERRORS CAN BE COSTLY Errors on the FAFSA or other forms may DELAY application processing and result in LOSS of financial aid funds. Read the instructions and complete the form carefully!

51. FREQUENT FAFSA ERRORS Incorrect social security number Incorrect parent marital status Incorrect supporting parent information Asset reporting errors Missing FAFSA signature(s) 51

52. ROLE OF THE FINANCIAL AID OFFICE Requests additional information, if needed Determines aid eligibility Awards aid depending on fund availability Sends award notification (electronic or paper) including: Award amount for each eligible program Disbursement methods and time frames Terms and conditions of each award

53. VERIFICATION Schools may request: Verification of tax information If information was estimated or data retrieval was not used If data retrieval was used but information was changed Must submit tax transcript or use data retrieval option Verification of household size/number in college Verification of Child Support paid Verification of receipt of food stamps (SNAP) Documentation of dependency questions Other information needed to clarify FAFSA data

54. IMPACT OF OUTSIDE AID Notify school of all outside scholarships May cause changes in other aid Need based aid (grants, scholarships, work study, Federal Perkins and subsidized Stafford loans) cannot exceed unmet need Total financial aid cannot exceed cost of attendance

55. EXAMPLE COA = $24,000 W E C F S GRANTS L O A N S

56. Dear Financial Aid Office: I will be receiving the following awards: Civic Scholarship$2000 Band Boosters Scholarship$1000 Church Scholarship $3000 Sincerely, Student

57. COA = $24,000 W E C F S GRANTS L O A N S S S S

58. COA = $24,000 W E C F S GRANTSS LOANS S S School is required to send a revised award notification

59. CHANGE IN CIRCUMSTANCES Loss or significant reduction in income Loss of child support Divorced/Separation after FAFSA filed Unusually high medical expenses Appeal options and process differs at each school

60. WHAT NOW? Review Admissions and Financial Aid web sites and materials for each school Check for Social Media options Know and meet all deadlines Complete FAFSA and other application materials File FAFSA with estimated tax information File FAFSA prior to knowing admissions offer Submit all required follow-up documents Investigate other sources of aid

61. SUMMARY Start early Know deadlines and submit all forms promptly Make copies of everything Follow-up – normal processing time is 4-6 weeks If you don’t know ask!

62. QUESTIONS