1. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Taking A Closer Look at the Various Types of Aid and the Financial Aid Process Funding Your Education Wisely

2. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Discussion Topics Financial Aid Overview  Types and sources of aid  Federal and state programs  Other aid options FAFSA Terminology (DC, COA, EFC and Need) FAFSA Sections  Online process and benefits  Key elements of the various sections Next Steps 2

3. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Financial Aid Overview TITLE SLIDE BLUE

4. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Goals of Financial Aid Primary goal is to assist students in paying for college and is achieved by:  Evaluating family’s ability to pay educational costs  Distributing limited resources in an equitable manner  Providing balance of gift aid and self-help aid

5. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Sources of Aid Federal Government State Government College/University Private Donors

6. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Types of Aid Gift Aid:  Grants  Scholarships (need-based or merit-based) Self-help Aid:  Employment  Loans

7. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Federal Title IV Programs Grants  Pell Grant (Max: $5,775)  Supplemental Educational Opportunity Grant (SEOG) (Max: $4,000)  TEACH Grant ($4,000) Work-Study  Earn money to use for educational expenses  College/University determines eligibility  Income doesn’t count against you on next FAFSA

8. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Remember Loans MUST Be Repaid! Federal Title IV Programs Direct Loan (4.29%, 1.068% fee)  Subsidized  Unsubsidized Parent Loan for Undergraduate Students (PLUS) (6.84%, 4.272% fee) 8 (Interest Rate for loans disbursed on or after 7/1/15, Loan Fees for loans disbursed between 10/1/15 – 9/30/16)

9. ISMCollegePlanning.org Trusted Advice for Smarter Choices! State of Indiana Programs Frank O’Bannon Grant Program  Higher Education Award  Freedom of Choice Award 21st Century Scholars Program For additional information on grants available visit in.gov/che in.gov/che March 10th

10. ISMCollegePlanning.org Trusted Advice for Smarter Choices! State of Indiana Credit Completion Students must complete 30 credit hours each year to maintain eligibility for:  21 st Century Scholar Awards  Frank O’Bannon “On-Time” awards (maximum eligibility) If student completes between 24 to 29 credit hours may be eligible for “full-time” awards

11. ISMCollegePlanning.org Trusted Advice for Smarter Choices! State of Indiana Resource Web portal where students and colleges can view and update information pertaining to state financial aid awards.  Access to Indiana residents who have filed a FAFSA (access typically starts in February)  Monitor edit notifications.  View State grant amounts  Change school choice State of Indiana Deadlines : March 10, 2016 (eligibility) ~ May 15, 2016 (edits)

12. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Other Sources of Funds Colleges & Universities  Need Based versus Merit Based Local & Community  Private Businesses, Community Foundation, Civic Organizations, Church Groups, School Counselor, Place of Employment FREE National Search Sites 12 Outside scholarships must be reported to the Financial Aid Office at the college so that they may be included in the student’s Financial Aid package.

13. ISMCollegePlanning.org Trusted Advice for Smarter Choices! FAFSA Terminology

14. ISMCollegePlanning.org Trusted Advice for Smarter Choices! The Importance of the FAFSA Free Application for Federal Student Aid (FAFSA) Currently the the Most Important form when applying for Financial Aid Basis for determining eligibility for:  Federal Funds (Grants, Scholarships, Loans and Work Study)  State of Indiana (Grants and Scholarships)  Potential Institutional Funds (Need-Based) Determines EFC 14

15. ISMCollegePlanning.org Trusted Advice for Smarter Choices! What is EFC? EFC = Expected Family Contribution. Two components:  Parent contribution  Student contribution Calculated using data from the FAFSA and a federal formula. Amount family can reasonably be expected to contribute to the student’s education. Stays the same regardless of college. 15

16. ISMCollegePlanning.org Trusted Advice for Smarter Choices! DC versus COA Direct Costs – What the student pays directly to the institution (Tuition, fees, and possibly room & board) Cost of Attendance – Includes direct costs above plus federal required estimates for books/supplies, transportation, living expenses, etc. Direct CostsCost of Attendance Tuition10,500Tuition10,500 Room & Board9,700Room & Board9,700 Total Direct Costs20,200Books & Supplies*1,200 Transportation*1,000 Living Expenses*2,000 * Denotes Estimate Total COA24,400

17. ISMCollegePlanning.org Trusted Advice for Smarter Choices! What is Need? Need = Cost of Attendance – EFC. Need could be different at each school Cost of Attendance - EFC = Need 4 Year Private 4 Year Public 2 Year Public EFC Need EFC

18. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Need Examples Cost of Attendance - EFC = Need 40K 18K 10K 5K 35K 13K 5K 40K 18K 10K 30K 8K 5K 10K

19. ISMCollegePlanning.org Trusted Advice for Smarter Choices! FAFSA

20. ISMCollegePlanning.org Trusted Advice for Smarter Choices! FAFSA.gov

21. ISMCollegePlanning.org Trusted Advice for Smarter Choices! FAFSA on the Web Good reasons to file electronically:  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

22. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Application Process Submit FAFSA prior to the college or state deadline, whichever comes first.  State of Indiana: Received on or before March 10 th  Institutional: Check with each school Some institutions require students to complete additional application requirements, such as:  College Scholarship Service (CSS) Profile Form  An institutional financial aid application

23. ISMCollegePlanning.org Trusted Advice for Smarter Choices! FSA ID Confirms your identity Serves as your electronic signature Who needs a FSA ID?  Student  Parent of Dependent Student FAFSA.gov - click on

24. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Login Login with either:  Student FSA ID  Student Name, SSN & DOB NOTE: Login is always STUDENT information

25. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Getting Started

26. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Save Key

27. ISMCollegePlanning.org Trusted Advice for Smarter Choices!

28. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Skip Logic Example:  If No to driver’s license  If Yes to driver’s license then opens box to provide info

29. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Student Eligibility Main Questions to consider:  Citizenship – must be U.S. citizen or eligible non-citizen  Selective Service (male only)  Grade level for upcoming college year

30. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Student Eligibility Main Questions to consider:  Degree you are pursuing for the upcoming college year  Will you have your first bachelor’s degree by July 1 st

31. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Indiana school must be listed in your top 6 schools

32. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Dependent vs. Independent Dependency questions – If all answers are “No” then parent info required  Born before January 1, 1993  Married  Serving on active duty or veteran of US Armed Forces  Dependents that you support  Court determined you are emancipated minor or under legal guardianship  Since turning 13 – in foster care, orphan/ward of the court or parents are deceased  Designated as homeless or self- supporting and at risk of being homeless  Graduate/Professional program student

33. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Who is considered a parent?  Biological or adoptive parent Whose parent information is included on the FAFSA? Marital StatusWhose information needs provided Married or unmarried and living together Both Parents Divorced, separated or never married The parent the student lived with more during the past 12 months. If that time is even then provide information for the parent that provided more financial support for the past 12 months. Remarried after widowed or divorced Parent and step-parent WidowedSingle parent Parent Information

34. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Parent Demographics Key elements:  Marital status & date  SSN, DOB, Name – federal data matches  Number in Household  Student, parent(s), other dependents  Number in College  Parents excluded on student’s FAFSA

35. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Tax completion options:  Will File – Use if you have not completed taxes  Use previous year’s tax return to estimate numbers  Allows you to meet filing deadlines  Correct FAFSA once taxes are filed  Already Completed – Use once taxes filed  Potentially use IRS Data Retrieval Tool  Best option for families and colleges  Not required to file Financial Information – Filing Status

36. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Financial Information Main data elements:  Filing status (Single, married filing joint, married filing separate, head of household and qualifying widower)  Will be cross referenced with marital status  Adjusted Gross Income (AGI)  Income Tax Amount (NOT taxes withheld)  Exemptions  Parent Income  Separate parent 1 & parent 2 income if both parents are working

37. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Two Sections  Additional Financial Information  Child support paid  Taxable earnings from work-study  Grant and scholarship aid reported to IRS  Untaxed Income  Payments to tax deferred pensions or retirement accounts  Child support received  Untaxed portions of IRA or pension distributions  Housing, food, living allowances  Money received or paid on your behalf (Student section only) Additional Financial Information

38. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Asset Information

39. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Asset Information

40. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Student logged in with FSA ID  Agree to statement  Select “Sign” Sign & Submit Page

41. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Parent Signature  Select Parent  Agree to statement  Enter FSA ID or create one  Select “Sign”

42. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Key Elements: Confirmation Number Option to transfer parent info if multiple students Next Steps Confirmation Page

43. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Confirmation Page Continued

44. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Next Steps TITLE SLIDE BLUE

45. ISMCollegePlanning.org Trusted Advice for Smarter Choices! FAFSA Processing Results Student Aid Report (SAR)  Print from fafsa.govfafsa.gov  Identifies any issues you need to address Make Corrections  Update tax information once you file taxes  Correct any errors Note: Student and parent must sign the FAFSA when submitting corrections!

46. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Special Circumstances If a special circumstance occurs make sure you talk with the Financial Aid Office at the college/university you plan to attend. Special Circumstances may include:  Change in employment status  Medical expenses not covered by insurance  Change in parent marital status  Unusual dependent care expenses  Student cannot obtain parent information

47. ISMCollegePlanning.org Trusted Advice for Smarter Choices! College Goal Sunday February 21 st, 2016 2:00 PM www.collegegoalsunday.org

48. ISMCollegePlanning.org Trusted Advice for Smarter Choices! www.ISMCollegePlanning.org 48 Resources  FSA ID creation steps  FAFSA Checklist  IRS DRT steps  After the FAFSA Checklist

49. ISMCollegePlanning.org Trusted Advice for Smarter Choices! ISM on Social Media Facebook  www.fb.com/ISMCollegePlanning Twitter  @ISM_CollegePlan Others  Instagram – www.Instagram.com/ISMCollegePlanning  Pinterest - www.Pinterest.com/ISMCollegePlan 49

50. ISMCollegePlanning.org Trusted Advice for Smarter Choices! Outreach@ISMCollegePlanning.org 317-954-0867 TITLE SLIDE BLUE