1. What You Need to Know 2016-2017 THE FINANCIAL AID PROCESS

2. Questions you should be asking?? What is Financial Aid? How to apply for financial aid? How is financial need determined? Are there other resources to cover educational expenses?

3. What is Financial Aid?

4. Financial aid refers to funding intended to help students pay education expenses including tuition, fees, room, board, books and supplies.

5. Sources of Financial Aid Federal Government State Government College/Institutional Aid Outside/Private Sources

6. Types of Financial Aid Scholarships Grants Loans Federal Work Study

7. Federal Loan Programs Direct Subsidized Loan 4.29% (1516) Direct Unsubsized Loan 4.29% (1516) Federal Perkins Loan ended 9/30/15 Federal Plus Loan 6.84% (1516) Note: Direct Loan annual limits are determined by student’s class level and dependency status; FR-$5,500, SO-$6,500, JR/SR-$7,500 for dependent students

8. Federal Work-Study Need-based employment program providing on and off-campus jobs to undergraduate and graduate students Compensation is at least the current federal minimum wage Student is paid by the college The availability of funds is limited; Financial Aid Offices may establish priority deadlines *FAFSA completion required

9. How to Apply for Financial Aid?

10. FAFSA (Free Application for Federal Student Aid)— You may be asked to submit tax documentation to the financial aid office to complete the verification process Institutional Forms Other Note: Communicate with each college to inquire about steps to complete the application process

11. Free Application for Federal Student Aid (FAFSA) for 2016-17 January 1 (First date to submit FAFSA) and as close to this date as possible Must be renewed every year WHEN Available to H.S. seniors, college students, returning adults U.S. citizens and eligible non-citizens WHO Available on-line at www.fafsa.gov Or paper and pdf forms are available HOW Determines eligibility for federal and state financial aid programs Used by colleges and universities to award institutional aid WHY

12. New for 2017-18 Academic Year October 1, 2016 (First date to submit FAFSA) Must be renewed every year When? File on 2015 tax year How? To allow families to use IRS Data Retrieval Tool to ensure accuracy and ease of filing the FAFSA Why?

13. Completing the FAFSA What information is needed? Social Security Number : Be sure that it is correct! Records of income : such as income earned from work and business, child support paid or received, and any other untaxed income. If available, refer to the W-2 Forms and the Federal Income Tax Return IRS 1040, 1040A, or 1040EZ. Information about assets : such as savings, certificates of deposit, stock options, bonds, 529 plans and other college savings programs, and investment real estate, business, and farm. Driver’s license number, if the student has one. Alien Registration Number, if not a U.S. citizen. Federal School Code: Millikin University - 001724 Notes: A student must report his or her income and assets and those of the parents (if a dependent student) or spouse (if married). Use income records for the year prior to the academic year for which a student is applying: for instance, if filling the 2014- 2015 FAFSA, refer to 2013 tax information.

14. FSA ID Replaced Personal Identification Number (PIN) in May 2015 The new FSA ID is comprised of a user-selected username and password, that replaced the Federal Student Aid PIN as the process by which students, parents, and borrowers authenticate their identity to access their federal student aid information. The FSA ID offers new functionality, including a single sign-on process for most of the Federal systems. This change was made to eliminate the need for individuals to enter personal identifiers (Social Security number, name, and date of birth) when accessing Federal Student Aid's systems. This change is critical to comply with new security requirements and industry best practices.

15. Whose information goes on the FAFSA? The FAFSA should be filed under the student’s name. Financial information will be requested for the student and the parent or parents of dependent students. If your parent is widowed or single, answer the questions about that parent If the parent you live with is remarried, answer the questions about that parent and stepparent If your parents are unmarried but live together, answer the questions about both parents If your parents are divorced or separated, answer the questions about the parent you lived with over 50 percent of the time or the parent who provided more financial support during the past 12 months

16. Dependency Status Independent students fit into at least one of the following categories: Born before January 1, 1993 Married Graduate or Professional student Veteran or currently serving on active duty other than for training purposes Have legal dependents other than a spouse, for whom more than 50% of the support is provided through June 30, 2017 Orphan, ward of the court, or in foster care when student was 13 or older Emancipated minor or in legal guardianship as determined by a court in the state of legal residence Unaccompanied youth who was homeless or self-supporting and at risk of being homeless *Dependent Students must report personal and parent income and assets

17. IRS Data Retrieval While completing the FAFSA online, 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 window Applicant chooses whether or not to transfer data

18. IRS Data Retrieval Could reduce documents requested by financial aid office Not available to applicants with recent change in marital status Not available to applicants who have submitted an amended return or who file married filing separately

19. Common Errors Providing incomplete data Not submitting required forms by deadlines Divorce/Remarried parent information Untaxed income and tax deferred pensions Income Tax Paid Review Student Aid Report (SAR) to avoid!!

20. How is Financial Need Determined?

21. Expected Family Contribution A need analysis formula established by Congress determines the student’s Expected Family Contribution (EFC); using information reported on the FAFSA.

22. What are the Costs? Tuition & Fees (actual or direct) Room & Board (actual or direct) Transportation Books & Supplies + Miscellaneous Cost of Attendance (COA)

23. To Determine Financial Need Cost of Attendance (COA) -Expected Family Contribution (EFC) Financial Need

24. Compare Apples to Apples Actual or Direct Costs -Financial Aid Offered by Institution Your Out of Pocket Expense

25. Comparison Continued… Each school will prepare a financial package to help you meet your financial need. Never assume you can’t receive some type of financial aid because of your income level Don’t become overwhelmed by college cost, it may not be what it seems Consider: private vs. public, in-state vs. out-of-state, community college Note: More often then not, the financial aid you receive may not cover all of your educational expenses, so be prepared

26. Are there other resources to cover educational expenses?

27. Other ways to pay for college 529 Savings & Prepaid Tuition Programs Employer Tuition Benefits Tuition Payment Plans Private/Outside Scholarships Veterans Benefits/Transfer of Entitlement

28. Financial Aid Resources Illinois Student Assistance Commission (ISAC) – www.collegeillinois.org (800) 899-ISAC (4722) U.S. Department of Education (ED) - www.FederalStudentAid.ed.gov (800) 4FED AID

29. Steps to Remember 1.Start planning for the future 2.Complete the application process early 3.Review and edit the Student Aid Report (SAR) 4.Consider award letters 5.Respond to college offers 6.Advise school(s) of outside scholarships 7.Advise school(s) of Special Circumstances 8.Renew the FAFSA every year!

30. QUESTIONS?? Website: www.millikin.edu/cost-aid e-mail: StudentFinancialServices@millikin.edu phone: 217-424-6317StudentFinancialServices@millikin.edu