1. 2008 Counselor Workshop

2. OASFAA Disclaimer ▼ The Ohio Association of Student Financial Aid Administrators (OASFAA) is a non-profit organization and provides the following information as a free service to access staff and high school counselors. Access staff and high school counselors have permission to copy and distribute these materials to their students and families. Charges may not be assessed for the material or for the information presented. Permission must be granted for other use of this information or these materials. Contact the Outreach Chairperson listed on the OASFAA web site or e-mail:outreach@oasfaa.org

3. Agenda ▼ Financial Aid Basics ▼ Applying for Financial Aid ▼ Federal Aid Programs ▼ State Aid Programs

5. Financial Aid Money from a source other than the family to assist with the cost of attending college

6. Cost of Attendance ▼ Direct costs ▼ Indirect costs ▼ COA varies widely from college to college

7. Expected Family Contribution (EFC) ▼ Amount family can reasonably be expected to contribute ▼ Stays the same regardless of college ▼ Two components –Parent contribution –Student contribution ▼ Calculated using FAFSA data and a formula specified in law

8. Financial Need Cost of Attendance (COA) – Expected Family Contribution (EFC) =Financial Need

9. Need Comparison Higher Cost institution Mid Cost Institution Lower Cost Institution Cost of Attendance$40,000$25,000$13,000 - EFC$8,000 = Need/Eligibility$32,000$17,000$5,000 The Federal EFC is the same at each institution.

10. Categories of Aid ▼ Need-based aid ▼ Non need-based aid

11. Types of Aid ▼ Grants ▼ Scholarships ▼ Loans ▼ Employment

12. Sources of Aid ▼ Federal government ▼ States ▼ Colleges ▼ Private sources

13. FAFSA4caster ▼ What is the FAFSA4caster? –Provides an estimated Expected Family Contribution (EFC) –Calculate eligibility for federal aid, including grants –Reduce time to complete the Free Application for Federal Student Aid (FAFSA) –Access FAFSA4caster at www.FederalStudentAid.ed.gov www.FederalStudentAid.ed.gov

14. Who should use the FAFSA4caster? Students who want to get an early start on the application process ▼ Any student considering their financial options to help pay for a postsecondary education –High school juniors –Parents of younger students –Non-traditional students (adult learners)

15. Applying for Financial Aid

16. FAFSA Completion Resources ▼ www.fafsa.ed.gov www.fafsa.ed.gov ▼ FAFSA Tips Brochure ▼ FAFSA on the Web Tips Card ▼ College Goal Sunday

17. FAFSA ▼ Is produced by the U.S. Department of Education ▼ Collects family’s personal and financial information used to calculate student’s EFC ▼ Available in English and Spanish ▼ Available in three formats: –Paper –PDF (available at www.federalstudentaid.ed.gov)www.federalstudentaid.ed.gov –Electronic (FAFSA on the Web or FOTW)

18. FAFSA on the Web ▼ Web site: www.fafsa.ed.gov ▼ 2009-10 FAFSA on the Web available on January 1, 2009 ▼ FAFSA on the Web Worksheet: –Used as “pre-application” worksheet –Questions follow order of FAFSA on the Web

19. FAFSA on the Web ▼ Built-in edits to help prevent costly errors ▼ Skip-logic allows student and/or parent to skip unnecessary questions ▼ More timely submission of original application and any necessary corrections ▼ More detailed instructions and “help” for common questions ▼ Ability to check application status on-line ▼ Simplified renewal application process

20. PIN Registration ▼ Web site: www.pin.ed.gov ▼ Can request PIN before January 1, 2009 ▼ Not required, but speeds processing ▼ May be used by students and parents throughout aid process, including subsequent school years

21. FAFSA on the Web Worksheet 2009-10 FAFSA on the Web Worksheet— 8-page booklet containing: ▼ Instructions ▼ 93 questions in 5 sections ▼ Worksheet A eliminated ▼ Remaining questions from Worksheets B and C incorporated into parental information and student finances sections

22. 2009-10 FAFSA Changes ▼ Worksheet A has been eliminated ▼ Worksheets B and C have been incorporated into the finance sections of the FAFSA ▼ Dislocated Worker question added ▼ 529 Plans are to be reported as a parental asset regardless of who owns them ▼ New question added to provide colleges with information on students that are interested in the TEACH Grant

23. 2009-10 FAFSA Changes ▼ Veterans questions now ask the type of veterans education benefits a student receives ▼ Federal Means Tested Benefits questions for independent student and parents updated to account for two years instead of one

24. 2009-10 FAFSA Changes ▼ Changes to Dependency Status Criteria –Adds question for emancipated minors and a question for individuals under legal guardianship –Question about orphans and dependents/ward of the court updated to include foster care –Adds questions for students that meet the homeless unaccompanied youth criteria

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

26. FAFSA Processing Results Central Processing System (CPS) notifies student of FAFSA processing results by: ▼ Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s e-mail address was not provided ▼ SAR Acknowledgement if filed electronically via FAFSA on the Web and student’s e-mail address was not provided

27. FAFSA Processing Results ▼ CPS notifies student of FAFSA processing results by: –E-mail notification containing a direct link to student’s on-line SAR if student’s e-mail was provided on paper or electronic FAFSA ▼ Student with PIN can view SAR on-line at www.fafsa.ed.gov

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

29. Verification ▼ Selected by the Central Processing System (CPS) or the Institution ▼ Keep copies of 2008 Tax documents ▼ If selected, completion is required before aid can be disbursed ▼ Verification materials are sent to the financial aid office, not federal processor

30. Special Circumstances ▼ Can’t include on FAFSA ▼ Contact each college ▼ College will: –Request documentation –Review situation on case by case basis –Decisions final and cannot be appealed to U.S. Department of Education

31. Special Circumstances ▼ Dependent students having difficulty obtaining parental information –May submit incomplete FOTW –FOTW provides examples of acceptable and unacceptable special circumstances –Students should contact financial aid office at their college –Students must document their special circumstance

32. Special Circumstances ▼ Examples Reported to the Financial Aid Office –Medical not covered by insurance –Parent loss of income –Property loss not covered by insurance –Unusual debt or one-time income –Tuition expenses at an elementary or secondary school –Parent in college

33. FSApubs ▼ FSAPubs is the one-stop source for ordering all of Federal Student Aid’s free publications. ▼ www.fsapubs.org www.fsapubs.org ▼ 1-800-394-7084

34. FSApubs ▼ Paper FAFSAs will not be available for order in bulk. ▼ The FAFSA on the Web Worksheet will still be available for bulk order by schools. ▼ Students will be able to obtain up to 3 paper FAFSAs by calling the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243) or by visiting www.edpubs.org.

35. Federal Financial Aid Programs

36. ▼ Federal Pell Grant –need-based as determined by the Free Application for Federal Student Aid (FAFSA) –Maximum award for 2008-09 is $4731, –Maximum award for 2009-10 has not yet been finalized

37. ACG Award Amounts ▼ Academic Competitiveness Grant (ACG) –$750 for first year students –$1,300 for second year students

38. ACG Eligibility Criteria ▼ Federal Pell Grant recipient for same award year ▼ First or second year student in: –A two or four year degree program; or –A one or two year certificate program offered at a two or four-year degree-granting institution ▼ Completion of a rigorous secondary school program

39. ACG Eligibility Criteria: First Year Students ▼ Not previously enrolled as a degree seeking student in an undergraduate program while enrolled in high school and below the age of compulsory attendance ▼ Completed secondary program of study after January 1, 2006

40. ACG Eligibility Criteria: Second Year Students ▼ Completed secondary program of study after January 1, 2005 ▼ Has at least a 3.0 GPA in an eligible program at end of first year of college

41. ACG Rigorous Program Options ▼ Coursework designated by the Secretary –4 years of English –3 years of mathematics (Algebra I and higher) –3 years of science (biology, chemistry, physics) –3 years of social studies –1 year of a foreign language

42. ACG Rigorous Program Options ▼ Ohio Honors Diploma ▼ Successful completion of any secondary school program for a student who completes at least two courses with a minimum passing test score on the exams in those courses –Score of at least 3 for Advanced Placement –Score of at least 4 for International Baccalaureate

43. Documenting Completion of Rigorous Programs for ACG ▼ Colleges required to collect and retain documentation that a student meets at least one of the options ▼ Colleges may document the program option that is the most efficient for them –Students may qualify under more than one definition of rigorous program

44. How Students Apply for ACG: FAFSA on the Web ▼ Submit FAFSA on the web ▼ If data indicates possible eligibility, the student will be prompted to answer questions

45. How Students Apply for ACG: Self Identification Self identify to financial aid office at college ▼ In person or in writing ▼ Will need to submit documentation

46. ACG: What Counselors Can Do ▼ Encourage students to take rigorous courses ▼ Provide documentation of completion of rigorous program –In a timely manner –To students or directly to colleges ▼ Tell students about the program

47. GPA for Second Year ACG ▼ For second academic year, student must have a cumulative GPA of at least a 3.0 from first year ▼ GPA only checked once, at end of first year

48. SMART (National Science and Math Access to Retain Talent) Grant Awarded to students in specific majors in the areas of Science, Math and Language Studies Students must have a college GPA of 3.0 A federal grant awarded to third and fourth year college students. Must be Pell eligible, full-time, and a US Citizen Eligibility is certified by the school. The maximum award is $4,000 per year.

49. Federal TEACH Grant –provides grants of up to $4,000 per year to students who intend to teach in a public or private elementary or secondary school that serves students from low-income families. –Maximum of $16,000 for undergraduate and post-baccalaureate students – $8,000 for graduate students or current or former teachers or retirees

50. Federal TEACH Grant ▼ Must file the FAFSA –Question on the FAFSA asks if the student plans to become a teacher –US Citizen or eligible non-citizen –Pro-rated for less than full-time –Must have scored above the 75 th percentile on 1 battery of an admissions test –or- have and maintain a 3.25 GPA

51. Federal TEACH Grant ▼ Must be repaid as a Direct unsubsidized Loan if student does not teach – –For at least four years within eight years of completing program, as a Highly Qualified Teacher At a Title I school In a specified subject area

52. Federal Loans ▼ Federal Stafford/PLUS and William D. Ford Direct Stafford/ PLUS Loan are basically the same program. With the Direct loan, the funds are drawn down by the school directly from the federal government, thus the name. The FFEL Stafford loan, the funds are secured by a bank or lender through a guarantee agency and sent to the school for the student. The school selects the federal program in which they wish to participate. ▼ Schools in the FFEL Stafford Loan Program and PLUS program may use a Preferred Lender List Many schools have a preferred lender list. These lists are established with the borrower’s best interest in mind. Schools take time to review borrower benefits for the student and parent. But, it is import to stress that students have a right to borrow from any lender they choose.

53. Federal Loans ▼ Federal Stafford/Federal Direct Loan A federal loan program with two types of awards— 1. Subsidized Need based. Interest is fixed at 5.6% for all new loans disbursed after July 1, 2009. Interest is subsidized while the student is in school during deferment. 2. Unsubsidized Not based on financial need. Interest is fixed at 6.8% for all new loans disbursed after July 1, 2006. Interest accrues from time of disbursement of the funds.

54. Federal Loans Class YearBase AmountAdditional Unsubsidized Amount Total Available to Borrow Freshman$3,500$2,000$5,500 Sophomore$4,500$2,000$6,500 Junior$5,500$2,000$7,500 Senior$5,500$2,000$7,500 Independent Students and Dependent Students whose parents have been denied the PLUS Loan are eligible for additional Unsubsidized Stafford Loans ($4,000 as freshman and sophomores and $5,000 as juniors and seniors)

55. Federal Loans ▼ PLUS Loans (Parent Loan for Undergraduate Students) –Loans to parents of dependent students. –Loan limits are up to the cost of education less any financial aid received per academic year. – The interest rate is 8.5% for FFEL and 7.9% for Direct (program is selected by school) – Repayment begins within 60 days of full disbursement, but payments may be deferred while the student is in school.

56. Federal Financial Aid Programs ▼ Campus-Based Programs –Federal Supplemental Educational Opportunity Grant (SEOG) –Federal Work-Study –Federal Perkins Loan

57. State Financial Aid Programs

58. State Updates ▼ Soon after taking office, Governor Strickland announced that he wants an additional 230,000 Ohioans enrolled in college within 10 years, and he wants improved graduation rates. ▼ As one of his first steps toward making college more accessible and affordable, state supported schools of higher education agreed to freeze tuition with a $1 billion incentive from the state. The tuition freeze continues for the 2008-09 academic year. ▼ Chancellor Fingerhut has introduced a 10 year Strategic Plan for Higher Education. The plan promises to raise the overall educational attainment of the state of Ohio and builds upon the principles put forth last year in creating the University System of Ohio. –The Strategic Plan is available online at: http://universitysystem.ohio.gov/http://universitysystem.ohio.gov/

59. State Updates Ohio College Opportunity Grant (OCOG)— ▼ Based on the family’s Expected Family Contribution (EFC) as determined by the FAFSA. The maximum EFC for OCOG eligibility is 2190 and the family income limit is $75,000. –Part-time students are eligible. ▼ The maximum awards for 2008-09 are $2496—2 yr & 4 yr public schools; $4992-4 yr private schools; $3996-proprietary schools. ▼ The deadline to apply for OCOG is October 1. ▼ OIG is completely phased out for the 2009-10 year

60. State Updates Ohio Student Choice Grant ▼ For Ohio residents who attend an Ohio private, non-profit college for the first time after 1984. ▼ $660 in 2008-09 ▼ May not be available in 2009-10

61. State Updates ▼ Ohio’s College Access Information Hotline : 1-877-428-8246 1-877-I-ATTAIN ▼ www.OhioCAP.org Ohio College Access Portal www.OhioCAP.org ▼ www.KnowHow2GoOhio.org www.KnowHow2GoOhio.org –Primary target: low-income, first generation students in grades 8-10

62. State Updates ▼ The Ohio GI Promise –http://universitysystem.ohio.gov/http://universitysystem.ohio.gov/ –1-877- VETS-OH-1 ▼ Ohio Teachers Corp ▼ A qualifying teacher is: ▼ A first-year teacher defined as first day of teaching falling on or after July 1, 2008 ▼ Appropriately licensed and assigned to teach in the subject area of foreign language, science or mathematics ▼ Under contract to teach in a hard-to-staff school and commits to continue to do so for a minimum of five (5) years –http://regents.ohio.gov/sgs/otc/

63. Resources

64. www.fsa4counselors.ed.gov

65. OASFAA

66. Are You Getting the Message?

67. College.gov

68. College Goal Sunday ▼ Sunday, February 8, 20092:00pm ▼ Locations throughout Ohio ▼ College Goal Sunday offers the opportunity to have expert help completing the Free Application for Federal Student Aid (FAFSA). ▼ Financial aid professionals from Ohio colleges & universities will be available walk you and your family through the financial aid process. ▼ College Goal Sunday is brought to you by the Ohio Association of Student Financial Aid Administrators (OASFAA). ▼ Need Information for College Goal Sunday? Call Ohio’s College Access Information Hotline 1-877-428-8246 or www.ohiocollegegoalsunday.org