1. Learning About Financial Aid Sally Foster Financial Aid Night November 18, 2015

2. Topics for Today College Costs Types of Financial Aid All About the FAFSA What Happens Next?

3. Direct Cost Tuition and Fees Registration, Technology, and Course Fees Expenses paid directly to the college Room & Board If living in college owned dormitories or buildings

4. Indirect Cost Books and Supplies New, Used, Rented or Online Expenses accrued during the school year Transportation Commuting Expense Room & Board Off Campus or At Home (usually estimated allowance) Personal Expenses Toiletries, Personal Money

5. Cost of Attendance Example U-M Dearborn’s cost of attendance is $17,732* Average tuition for 15 credits for two semesters is $11,600 (including mandatory fees) Allowance for books and supplies is $1,300 *Freshman/sophomore at home budget for 2015-2016

6. What is Financial Aid? Financial aid is any source of funds available to assist students in meeting the cost of a college education beyond the resources of a family.

7. What is the Expected Family Contribution (EFC)? Calculation using FAFSA data and a federal formula Measures family financial strength based on student and parent income, student and parent assets, household size, number in college, and age of parent Stays the same regardless of college Two components  Parent contribution (income and assets)  Student contribution (income and assets) EFC represents that family financial strength—the higher the EFC, the lower the financial need

8. What is Financial Need?

9. $27,000 - $10,000 = $17,000

10. Types of Financial Aid Need-based funds: no repayment GRANTS SCHOLARSHIP S Merit or performance based funds: no repayment WORK STUDY Need-based campus jobs--earnings go toward personal expenses LOANS Fixed low-interest Rate money that must be repaid

11. Sources of Financial Aid State of Michigan

12. Sources of Financial Aid State GovernmentFederal Government

13. Sources of Financial Aid Federal GovernmentState Government College/Universities

14. Sources of Financial Aid Federal Government College/Universities State Government Private Organizations/Foundations

15. Sources of Financial Aid Federal Government NEED-BASED Federal Pell Grant (from $602-$5775) Federal SEOG (ranges from college to college) Federal Work Study (ranges from college to college) Federal Direct Subsidized Loan (maximums) o $3,500 for Freshmen o $4,500 for Sophomores o $5,500 for Juniors o $5,500 for Seniors

16. Sources of Financial Aid Federal Government NON NEED-BASED Federal Direct Unsubsidized Loan o Dependent student $2,000, but can be as high as $7,500-if replacing Subsidized Loan Federal Direct PLUS o Credit-based, but can cover entire cost of attendance and budget

17. Sources of Financial Aid State of Michigan Michigan Competitive Scholarship (up to $676) o Demonstrate Financial Need o Eligible ACT Score (24 composite of higher) o Deadline is March 1 st (date FAFSA is received by Federal Student Aid Processor) NEED-BASED

18. Sources of Financial Aid State of Michigan Michigan Tuition Grant Program o Demonstrate Financial Need o Must attend Michigan independent college o Estimated grant maximum of $1,830 o Deadline is March 1 st (date FAFSA is received by Federal Student Aid Processor) NEED-BASED

19. Sources of Financial Aid College and University Grants Colleges and universities award need-based grants. Be careful of deadlines (usually March 1 st or before) Complete document requests as quickly as possible Other factors that are considered: EFC (Expected Family Contribution) Other resources of aid Timely completion of required documents

20. Sources of Financial Aid College and University Scholarships College and university scholarships are usually awarded on the basis of merit (academic, athletic, musical talent) Many scholarships are for more than one year (will usually need to meet certain requirements for renewal) Check with Admissions Office or research online

21. Sources of Financial Aid Private Scholarships Private scholarships can be a valuable resource for students to help meet educational costs. Many students apply, but few are selected. Students can begin planning for scholarships as early as their freshman or sophomore year in high school Many private scholarships can be divided into two groups: You are like us, we want to help you. You want to be like us, we want to help you.

22. Sources of Financial Aid Private Scholarships Grades, standardized test scores, and class rank. Grades are more than GPA—the classes that you take matter too. Take a rigorous academic courses. Many programs look at the breadth and depth of accomplishments—not just a large number of activities in a senior year. There is often an emphasis on leadership and initiative—not just membership

23. All About The FAFSA Free Application for Federal Student Aid (FAFSA) www.fafsa.gov Federal Student Aid ID www.fsaid.ed.gov Student Loans www.studentloans.gov

24. FSA ID: Do This Now

25. All About The 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 2016–17 academic year, the FAFSA may be filed beginning January 1, 2016 Most colleges set FAFSA filing deadlines

26. All About The FAFSA Login and create password Student Demographics School Selection Dependency Status Parent Demographics Financial Information Sign, Submit & Confirmation What to Expect... Seven Steps No need to be confused

27. Student Demographics

28. School Selection

29. Dependency Status

31. Parent Demographics

32. The parental residence will determine the state of residence of the student.

33. Parental Financial Information If eligible, you should use the IRS Data Retrieval Tool (DRT)

34. Using the IRS Data Retrieval (DRT) Enter basic information, submit, if correct, press transfer.

35. Financial Information

36. Additional Financial Information

37. Financial Information: Reporting Assets

38. Student Information Very much like the parental section Student information is usually less complicated than parent information Student Information

39. Next Step: Sign and Submit Both the student and one parent must sign the FAFSA. The signature indicates that the information is correct and applicants are aware that there are penalties for intentionally false information and agree to submit additional information if requested by the financial aid office. The FAFSA can be signed using the FSA ID (preferred) or by printing a signature page.

40. Steps in Submission

41. Confirmation Congratulations! You have completed the FAFSA. You will have an EFC (Expected Family Contribution) and know if you may have eligibility for federal programs like Pell Grant and Direct Loans. The colleges that you authorized to receive your FAFSA will send an award offer to you once you are admitted and have a complete financial aid file.

42. All About The FAFSA Frequent FAFSA Errors Social Security Numbers Divorced/remarried/living together and not married 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

43. What Happens Next? Initial calculation by Federal Student Aid Processing Center providing the EFC Student Aid Report (SAR) sent by email within less than one week for official results to student FAFSA information released to universities which the student has requested the application be sent and can list up to ten colleges and universities Reviews for federal requirements Most common: documentation of citizenship status, selective service registration, final high school transcript Verification documentation for such items as income, household information, SNAP (food stamps), child support paid or received Financial Aid Award Offers sent to students for review and acceptance (by postal mail or email)

44. What Happens Next? Making Corrections Using FAFSA on the Web at fafsa.gov (preferred and faster) Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or Submitting documentation to the financial aid office at the college (may be required for verification)

45. Special Circumstances Students and their families apply for consideration for special circumstances through your Financial Aid Office using their Special Circumstances Appeal Form Documentation is required Appeal must reflect a significant loss of income as well as a special circumstance Appeal must be completed at each college to be considered

46. Special Circumstances Change in employment status Termination or separation, change from full-time to part- time, reduction in salary High medical expenses not covered by insurance and paid out of pocket Divorce or separation Death of parent or spouse Loss of untaxed income or taxable benefits Child Support, worker compensation

47. Your New Best Friend Seven Easy Steps to the FAFSA

48. Thank You Any Questions?