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What You Need to Know About Financial Aid. TOPICS WE WILL DISCUSS  What is financial aid?  Cost of attendance (COA)  Expected family contribution (EFC)

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Presentation on theme: "What You Need to Know About Financial Aid. TOPICS WE WILL DISCUSS  What is financial aid?  Cost of attendance (COA)  Expected family contribution (EFC)"— Presentation transcript:

1 What You Need to Know About Financial Aid

2 TOPICS WE WILL DISCUSS  What is financial aid?  Cost of attendance (COA)  Expected family contribution (EFC)  Financial need  Categories, types, and sources of financial aid  Free Application for Federal Student Aid (FAFSA)  Special circumstances

3 WHAT IS FINANCIAL AID? Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses

4 COST OF ATTENDANCE(COA)? Includes:  Tuition & Fees  Room & Board  Books, supplies, transportation, and misc. personal expenses COA Varies widely from college to college

5 WHAT IS 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 data from a federal application form and a federal formula

6 WHAT IS FINANCIAL NEED? Cost of Attendance – Expected Family Contribution = Financial Need

7 TYPES OF FINANCIAL AID Scholarships Grants Loans Employment Gift Aid Self-Help Aid

8 GIFT AID: SCHOLARSHIPS/GRANTS  Money that does not have to be paid back  Awarded on the basis of merit, skill, or unique characteristic  Usually awarded on the basis of financial need

9 SELF-HELP AID: LOANS  Money students and parents BORROWED to help pay college expenses  Repayment usually begins after education is finished  Only borrow what is really needed  Look at loans as an investment in the future

10 SELF-HELP AID: WORK-STUDY EMPLOYMENT  Allows student to earn money to help pay educational costs  A paycheck; or  Nonmonetary compensation, such as room and board  Student may opt the number of hours to work

11 SOURCES OF FINANCIAL AID  Federal government  States  Colleges and universities  Private sources  Civic organizations and churches  Employers

12 STATE OF KANSAS SCHOLARSHIPS AND GRANTS  Kansas Comprehensive Grant  Kansas State Scholarship  Kansas Ethnic Minority Scholarship  Career Technical Workforce Grant (formerly the Kansas Vocational Scholarship)  Kansas Career Work Study Program  Military Service Scholarship (FY 08)  KBOR Website: https://sfa.kansasregents.org/finaid/login.jsp

13 FEDERAL GOVERNMENT  Largest source of financial aid  Aid awarded primarily on the basis of financial need  Must apply each year using the FAFSA

14 FEDERAL STUDENT AID PROGRAMS  Federal Pell Grant  Federal Supplemental Educational Opportunity Grant (FSEOG)  Federal Perkins Loan  Federal Work-Study (FWS)  Subsidized and Unsubsidized Federal Direct Student Loans (Direct Loans)  PLUS Loans

15 FEDERAL PELL GRANT  Awarded amount based on EFC and enrollment status  Generally awarded to undergraduate students only  Maximum award for 2014-2015 = $5,730

16 FSEOG (FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT)  Annual award amounts vary between school from $100 to $4,000 a year  Students with the lowest EFC’s must be awarded first  Priority goes to Federal Pell Grant recipients

17 FEDERAL WORK STUDY (FWS)  Provides part-time employment while students are enrolled  Employment may be on or off campus  Even if you don’t qualify for FWS you may still be able to have an on campus job!  Inquire about jobs at your college’s Student Employment Office

18 FEDERAL PERKINS LOAN  Priority to students who show exceptional need  Interest rate: 5% fixed  Nine month grace period, repayment may be up to 10 years  Deferment and cancellation provisions available for qualifying employment  Maximum annual award  $4,000 for undergraduate students  $6,000 for graduate students

19 FEDERAL DIRECT LOANS  Subsidized  must demonstrate need  U.S. Department of Education will pay (subsidize) the interest that accrues while in school  Unsubsidized  not based on need  most everyone can qualify

20 DIRECT LOANS – ANNUAL LOAN LIMITS  Annual Loan Limits (combined subsidized and unsubsidized) Classification Dependent Independent Freshman $5,500 $9,500 Sophomore $6,500 $10,500 Each remaining year $7,500 $12,500 Graduate/Professional N/A$20,500

21 DIRECT LOANS  The current interest rate on 2014-15 Undergraduate Direct loans (subsidized and unsubsidized) first disbursed on or after July 1, 2014 is 4.66%. Each year the interest rate will change based on the market.  Repayment begins after 6 month grace period  Maximum repayment period between 10 and 30 years

22 PLUS LOANS  Parents of dependent undergraduate students  Graduate/Professional students  Repayment begins immediately upon full disbursement but can be deferred upon request  2014-15 Direct interest rate: 7.21% (will change annually based on the market)  If a parent is unable to borrow (denied) a parent PLUS loan, a student may be eligible for additional unsubsidized loan

23 FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA)  A standard form that collects demographic and financial information about the student and family  May be filed electronically or using paper form  Available in English and Spanish

24 FAFSA  Information used to calculate the expected family contribution (EFC)  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 an academic year  Colleges use EFC to award financial aid

25 FAFSA  May be filed at any time during an academic year, but no earlier than the January 1 st prior to the academic year for which the student requests aid  For the 2015–16 academic year, the FAFSA may be filed beginning January 1, 2015  Most colleges set FAFSA filing deadlines

26 FAFSA ON THE WEB  Website: www.fafsa.govwww.fafsa.gov  2015–16 FAFSA on the Web available on January 1, 2015  FAFSA on the Web Worksheet:  Used as “pre-application” worksheet  Questions follow order of FAFSA on the Web

27 IRS DATA RETRIEVAL TOOL  While completing the FAFSA, applicant may submit real-time request to IRS for tax data  IRS will authenticate taxpayer’s identity  If match found, IRS sends real-time results to applicant in new browser window  Applicant chooses whether or not to transfer data to FAFSA

28 IRS DATA RETRIEVAL TOOL  Available early February 2015 for 2015–16 processing cycle  Participation is voluntary  Reduces documents requested by financial aid office

29 IRS DATA RETRIEVAL TOOL Some will be unable to use IRS Data Retrieval Tool. Examples include:  Filed an amended tax return  No SSN was entered  Student or parent married but filed separately

30 FEDERAL STUDENT AID PERSONAL IDENTIFICATION NUMBER (FSA PIN)  Website: www.pin.ed.govwww.pin.ed.gov  Sign FAFSA electronically  May be used by students and parents throughout aid process, including subsequent school years

31 FAFSA PIN CHANGES  FSA is adopting the best practice of using a username and password instead of personal information  The FSA ID  Requires users to enter less info (2 fields instead of 4)  Provides more secure access to user’s information  Links to PIN information during registration  Offers self – service capability (name change) 4/25/15.  The FSA ID (username and password) will replace PIN for students, parents and borrowers accessing FSA systems starting on 4/25/15.

32 FAFSA PIN CHANGES  What happens for new user?  Registration requests same required information as PIN  New users will be directed to the registration page to create an FSA ID (username and password) similar to today’s PIN creation page  What happens if I have a PIN already?  During account creation, user will be asked for their PIN.  As long as the PIN information matches their other information, the account will be linked to the FSA ID account  Will the changes affect a user’s ability to access previous FAFSA submissions?  If the user links their PIN, they will have access to previous FAFSA submissions

33 Login: (Student’s Info) First Name Last Name SSN Date of Birth

34 34

35 FREQUENT FAFSA ERRORS  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

36 WHAT HAPPENS NEXT…  The Department of Education will notify the student that the FAFSA has been received.  24-48 hours after the FAFSA is complete, the schools listed should receive the information.  The school will notify the student once their award packet is available. Most schools do not start processing until March/April for the next school year.

37 MAKING CORRECTIONS  Using FAFSA on the Web (www.fafsa.gov) if student has a PIN;www.fafsa.gov  Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or  Submitting documentation to college’s financial aid office

38 SPECIAL CIRCUMSTANCES RELATED TO PROFESSIONAL JUDGMENT  Cannot be documented using FAFSA  Send written explanation and documentation to financial aid office at each college  College will review and request additional information if necessary  Decisions are final and cannot be appealed to U.S. Department of Education

39 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

40 CAUTION!!!  Avoid being charged a fee to file the FREE Application for Federal Student Aid  Completion and processing of the FAFSA are FREE  www.fafsa.gov www.fafsa.gov

41 WHERE DO I GO FROM HERE?  Obtain and review admissions and financial aid Web sites and materials for each school to which you are applying.  Meet all application deadlines.  Complete FAFSA and other application materials. Submit all requested follow-up documents.  Investigate other sources of aid.

42 QUESTIONS?


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