1. FINANCIAL AID 101 Kristen Isaksen Associate Director of Financial Aid Monmouth University

2.  Financial aid is money that helps a student pay for education expenses at a postsecondary school (e.g., college, vocational school, graduate school). What is Financial Aid?

3. Goal of Financial Aid  The primary goal is to assist students in paying for college. This achieved by: – Evaluating a family’s ability to pay for educational costs. – Distributing limited resources in an equitable manner. – Providing a balance of gift aid and self-help aid.

4. Federal Methodology is the formula created by Congress to determine the Federal Expected Family Contribution (EFC).

5. Expected Family Contribution  The amount a family can reasonably be expected to contribute toward the cost of the student’s education for an academic year.  Stays the same regardless of college choice.  Colleges use the EFC to award financial aid.

6. Total EFC for Dependent Students  Parent’s Contribution – From Income – From Assets  Student’s Contribution – From Income – From Assets

7. Cost of Attendance  Tuition and Fees  Room and Board  Books and Supplies  Transportation  Miscellaneous Personal Expenses  Computer  Study Abroad  Dependent Care  Expenses related to a disability

8. Definition of Need Cost of Attendance (COA) - Expected Family Contribution (EFC) = NEED

9. Financial Need Examples Cost of Attendance$30,000 - EFC$15,000 = Need$15,000 Cost of Attendance$55,000 - EFC$15,000 = Need$40,000

10. Net Price Calculator  All institutions have a net price calculator on their website. – Generally found on the financial aid page. – Complete for each institution in which you are interested. – Provide income information. – Provides you with an estimate of the aid you are eligible for and the net price at that specific institution.

11. FAFSA4caster www.fafsa.gov

12. FAFSA4caster

13. FAFSA on the Web www.fafsa.gov

14.  Replaces the PIN – FAFSA on the Web and other federal sites  Creates a single sign-on process – User selected username and password  Eliminates entering SSN, name and date of birth  Existing user will be able to link the PIN information to the FSA ID Accessing the FAFSA-FSA ID

15. FAFSA on the Web

16. About the FAFSA 2016-17  File on or after January 1 – Check for individual college deadlines  Must be filed each year for each student in college  Use 2015 income – Estimate to ensure submission before any college deadlines

17. About the FAFSA 2017-18  Switch to Prior-Prior-Year format  Use 2015 income  File as early as October 1, 2016  Estimating income no longer needed for the majority of students

18. General Eligibility Requirements  Have a high school diploma or equivalent.  Must be enrolled or accepted for enrollment in an eligible program of study leading to a degree, certificate, or other recognized credential.  Must be U.S. citizen or eligible non- citizen.

19. General Eligibility Requirements  Must have valid Social Security Number (SSN) – www.ssa.gov  Must be registered with Selective Service (if male and required) – www.sss.gov

20. IRS Data Retrieval – FAFSA on the Web  Applicants may submit a real-time request for IRS tax data.  The IRS will authenticate the taxpayer’s identity.  If a match is found, the IRS will send the results in real-time (a new window will open).  Applicants may choose whether or not to transfer the data.

21. IRS Data Retrieval – FAFSA on the Web  Allow approximately 2-3 weeks after electronic filing of taxes and 4-6 weeks for paper filing to ensure the data is available  Will reduce documents requested by financial aid office-provided data is not changed.  Not available to applicants with a recent change in marital status.  May also be used to make FAFSA corrections.

22. IRS Data Retrieval – FAFSA on the Web  The IRS Data Retrieval does not fill in all of the income questions. Please review the income section of the FAFSA before submitting!

23. FAFSA on the Web Worksheet  You may need to answer more questions than those listed on the worksheet.  Skip logic will remove unnecessary questions.  Some questions are optional, but it is recommended that you answer all of them- especially the driver’s license question.

24. Completing the FAFSA

25. FAFSA Confirmation Page

26. FAFSA and State Aid  The New Jersey Higher Education Student Assistance Authority (NJHESAA) collects several additional items not specifically requested on the FAFSA.  Use the “Optional Features-Start your state application” on the FAFSA confirmation page.  FAFSA data will be transferred to HESAA and the appropriate questions will be displayed. – Make sure to disable your pop-up blockers!

27. FAFSA and State Aid  Earned Income Credit (EIC)  Untaxed & Taxable Social Security Income  Unemployment Compensation  Driver’s License State/Number (student only)  SSN, last name, first initial (parents only)  Other items are only for independent students.

28. Process  File Free Application for Federal Student Aid (FAFSA) – www.fafsa.gov  Complete Federal Income Tax Return  Complete Institutional forms (if required)  Receive Student Aid Report (SAR)  Receive/Return Award Letter  Provide Additional Documentation  Process Student Loans

29. Sources of Aid  Institutional – Merit – Need  Federal  State  Other

30. Tax Credits  American Opportunity Tax Credit  Lifetime Learning Tax Credit  Tuition and Fees Deduction  Student Loan Interest Deduction

31. Types of Financial Aid  Scholarship – Does not have to be repaid – Awarded on the basis of merit, skill or a unique characteristic  Grants – Does not have to be repaid – Usually awarded on the basis of financial need  Loans – Money that is borrowed and repaid with interest  Employment – Student earns money to help pay educational costs – Paycheck or non-monetary compensation, such as room and board

32. Grants and Scholarships  Federal – Federal Pell Grant – Federal Supplemental Educational Opportunity Grant (SEOG) – Teacher Education Assistance for College and Higher Education (TEACH) Grant – Iraq and Afghanistan Service Grants

33. Grants and Scholarships  STATE – New Jersey Tuition Aid Grant (TAG) – NJSTARS and NJSTARS II – Educational Opportunity Fund (EOF) www.njgrants.org

34. More Grants and Scholarships  Private Sources – Think local and global – Use the Counseling Office’s Resources – Internet Resources  www.fastweb.com

35. Federal Direct Loans Subsidized – Need based – No interest accrual during in- school, grace or deferment periods – Fixed rate of 4.29% for 15-16  Market-based fixed rate  Adjusted annually  Based on the 10 year Treasury note plus a margin

36. Federal Direct Loans Unsubsidized – Not need based – Accrues interest from disbursement – Fixed 4.29% interest rate for 15-16  Maximum award amount for first year students: – $5500 with no more than $3500 in Subsidized funds

37. Supplemental Loans  Institutional Loans  Federal Parent Loan for Undergraduate Students (PLUS)  New Jersey College Loans to Assist State Students (NJCLASS)  Private/Alternative Loans

38. Employment  Federal Work Study  Institutional Work Programs  Off-Campus Jobs

39. Tuition Payment Plans  Not a loan – Enrollment fee  Make tuition payments in monthly installments  Fit payments into your monthly budget  Various payment options

40. Tips  BEWARE OF DEADLINES!!  READ all mail/email promptly  READ instructions carefully, review before submitting anything!  Maintain copies of all documents  Do not sign your son or daughter’s name/FSA ID to financial aid documents  Involve your student  Consult a financial aid officer

41. Using Financial Aid Consultants and Search Services  Before spending money on a financial aid consultant, keep in mind that a financial aid administrator can perform the same services for free.

42. Questions to ask a Financial Aid Administrator  Are scholarship and grant awards renewable? What criteria must be met?  What are the policies for work-study positions? Is a job guaranteed?  How are outside scholarships treated?  What expenses are not reflected on a term bill? Can financial aid be used to pay for books?  Are there any banking options on campus?

43. Questions