Financial Aid 101 Jill Haley Independent College Counselor To Do List Jan 1 2013- Fill out the FAFSA

Financial Aid 101Financial Aid 101

Jill HaleyIndependent College Counselor

To Do List

Jan 1 2013-Fill out the FAFSA

AgendaAgenda

Overview of Financial Aid

FAFSA Basics

Financial Aid ToolsCal Grants

Will not discuss specific financial questions related to assets on the FAFSA

2

HandoutsHandoutsFAFSA on the Web worksheet-

2013-14

Financial Aid Shopping Sheet

List of resources

College Admissions Newsletter

3

What is Financial Aid?What is Financial Aid?Money to pay for college Grants- free money that you don’t have to pay back. Usually federal or state moniesScholarships- free money- private or corporate Work-study- paid jobs at collegeLoans- must pay back. Available to students and/or parents

4

Who can get student aid?Who can get student aid?

U.S. citizen or permanent residentHigh school graduate/GED holderValid Social Security numberMales registered for Selective

Service- No history of drug-related offenses

(student)

5

Need-Based/Merit Based Need-Based/Merit Based AidAidNeed based aid is financial support

given to students whose families cannot afford the total cost of college. Usually in the form of grants, scholarships and loans.

Merit based aid is aid given to students because of exceptional talent, high GPA or athletic ability. Usually in the form of scholarships.

6

3 Important Terms3 Important Terms

FAFSA- document used to determine

financial aid eligibility

COA- cost of attending specific colleges

EFC- estimated family contribution- the amount of money the family is expected to contribute

7

FAFSAFAFSA

FAFSA- Free Application for Federal Student Aid- www.fafsa.gov.

Be careful of fraudulent sites that ask for money.

www.FAFSA.ed.gov is free!

Good News- FAFSA getting more user- friendly

8

FAFSAFAFSADocument that is filled out using financial

information from parent(s) and student.Used to apply for federal, state grants,

work-study and loans. Used by most colleges to determine

financial aid both need- based and merit.

9

FAFSA On The Web FAFSA On The Web WorksheetWorksheet

FILL OUT AHEAD OF TIME

SAVES TIME WHEN FILING

10

FAFSA and CollegeFAFSA and College

FAFSA information is sent to each college’s financial aid office that you select on the form

Can only list 10 colleges- make sure a CA college is in top 3

Once you receive your Student Aid Report (SAR) form back an go in and update list with other colleges

11

Philosophy of Financial AidPhilosophy of Financial Aid

Students and their families have the primary responsibility to pay for postsecondary education expenses if they can.

.

EFC is the measure of a family’s financial strength as determined by the information on the FAFSA

EFC is used to determine the student and parent ability to contribute towards the student’s cost of attendance at college(s)

Expected Family Contribution (EFC)

Cost of Attendance (COA)

Note: Costs vary from institution to institution

Standard Costs Optional Costs

Tuition and feesTransportation

Room and board Study-abroad

Books and Supplies Disability-related services

Calculating EligibilityFor Need-Based Aid

How do I apply for student aid?How do I apply for student aid?

• File the FAFSA on or after Jan.1 but as early as possible to meet all deadlines.

• Based on income form January 1, 2012-December 31, 2012

17

How do I apply for student aid?How do I apply for student aid?

2. Use FAFSA on the Web Worksheet to get ready.

• Get worksheet at www.studentaid.ed.gov/worksheet

• Find a checklist of documents you need at www.studentaid.ed.gov/pubs (“What Information Do I Need When I Fill Out the FAFSA?”).

• Fill out worksheet to prepare your answers.

18

How do I apply for federal student aid?How do I apply for federal student aid?

1. Get a PIN at www.pin.ed.gov• Parents and students will both need a PIN • This is your electronic signature

19

FAFSA on the WebFAFSA on the Web

Reasons to file electronically:

Faster processing

Built-in edits prevent costly errors

Skip logic allows student and/or parent to avoid unnecessary questions

Use Internal Revenue Service (IRS) data retrieval

Can have sent to 10 colleges (paper app only 4)

Watch for response by e-mail, from FederalStudentAidFAFSA@cpsemail.ed.gov

Double-check your information online at www.fafsa.gov (use your PIN to log onCorrect any mistakes and update any information as necessary

21

FAFSA information is sent to each FAFSA information is sent to each financial aid office of the colleges you financial aid office of the colleges you indicate on the FAFSA.indicate on the FAFSA.

Watch for e-mails or letters from the schools you are considering

• Give the schools any additional information they ask for

• Meet all deadlines or you could miss out on aid!

22

What Happens Next?What Happens Next?

After you receive your acceptance at a college you will receive a financial aid award letter.

Once you decide which school to attend, keep in touch with the financial aid office to find out when and how you will get your aid.

23

Great ToolsGreat ToolsFinancial Aid Shopping Sheet

FAFSA4caster

College Net Price Calculator

24

Financial Aid Shopping Financial Aid Shopping SheetSheetThe Shopping Sheet will

standardize award letters, making it easier to comparison shop and provide students with key information.

Goal is to provide transparency in the total cost of attendance to families

25

EFC Remains the SameEFC Remains the SameStudent A- CSU Chico

COA- $24,444 – EFC- $14,000=$10,000 eligibility for aid

Student A- Santa Clara UniversityCOA= $55,830-EFC-$14,000=

$41,830 Eligibility

26

How much student aid can I get?How much student aid can I get?For early estimate, use FAFSA4caster:

Go to www.fafsa4caster.ed.gov

Enter financial information and get an estimate of your EFC.

27

Net Price CalculatorNet Price CalculatorAlso can use each Net Price

Calculator.

Each college is required to post.

Estimate of what your net price will be at each college.

28

FAFSA TipsFAFSA Tips

Student Demographics- both Student Demographics- both student student andand parents must fill out parents must fill out financial informationfinancial information

Check for:Name matches student social security cardTransposed numbersIncorrect data on numeric fields

Tip: Use the Help & Hints section on each page.

Simple mistakes can delay determining

eligibility for aid

30

Dependency DeterminationDependency Determination

“No” to all questions:

makes the student “dependent”24 and under considered a dependentMust submit parent information

Parent InformationParent InformationParent(s) must answer demographic and financial information to determine ability to contribute to student’s education expenses

If married- both parents finances are reported

Divorced or SeparatedDivorced or SeparatedProvide parent’s information for the

parent(s) with whom the student lived with most during the last 12 months

If the student spent equal time with both parents, use the information for the parent who provided the greatest amount of financial support for the student

Remarried ParentRemarried Parent

Provide information about the parent and stepparent regardless of:

◦ Agreement of “nonsupport”◦ Prenuptial agreement◦ Divorce decree designating tax filing exemptions

Note: parent claiming the student on the tax return need not

be the parent required to provide data on the FAFSA

Parent InformationParent Information Do not provide parent information forFoster parent(s)

◦Student is automatically considered an independent student

Grandparents, other relatives or legal guardian(s)

◦Colleges may use professional judgment to allow the student to file as an independent student

Parent InformationParent Information For upcoming yearHousehold Size: Parent provides more than 50% financial support

Number in College: Student enrolled at

least half-time

IRS Date TransferIRS Date Transfer

IRS Data TransferTransfer information directly from the IRS

◦ Requires PIN

◦ Available January 31st

◦ After filing tax return

Special CircumstancesSpecial Circumstances

If students and families have unusual circumstances, contact the financial aid office at the college they plan to attend; the office will advise them on how to proceed.

CAL GrantsCAL GrantsOnly for California colleges- must

fill out FAFSA and GPA verification form.

Submit the FAFSA by March 2nd

School will submit GPA verification if student turned in their Senior Contract

39

CAL GrantsCAL Grants

Provides tuition and college fee assistance at 2 and 4 year colleges.

Can only be used at California Colleges

Have GPA requirementsCal Grants are Free money!!!

40

Questions?Questions?

41

• Need help? Use call 1-800-4-FED-AID for FAFSA.

• Don’t forget to save or print confirmation page.

Who can get other kinds of financial aid?Who can get other kinds of financial aid?

Colleges, and private scholarships have their own eligibility criteria.

Be sure you know what you need to do to qualify.

42

CSS ProfileCSS ProfileSome colleges may require an additional

form besides the FAFSA

The CSS Profile- ask information of both parents regardless of marital status.

43

LoansLoansMoney students and parents borrow to help

pay college expenses

Repayment usually begins after education is finished

Only borrow what is really needed

Most student financial aid packages have some loans

LoansLoansMust fill out FAFSA for most loans

Students should access subsidized loans first. Have lower fixed interest rates( 3.4%) and offer flexible repayment options

Parents can take out PLUS loans (7.9%).

45

SummarySummary

Before Jan 1, 2013◦Apply for a PIN number for FAFSA◦Gather all information needed for FAFSA (FAFSA

worksheet)◦Narrow down college choices- ◦Check to see if a CSS Profile is needed

46

SummarySummaryAfter January 1, 2013

◦Complete FAFSA◦Review your FAFSA information (SAR Report) for

accuracy when it is available◦Revise income information once tax results are in

47

SummarySummaryAdd or delete colleges to your FAFSARespond to all inquiries from college financial aid

officesOnce admitted to a college you will receive a

financial aid offer. Read and compare carefully.Respond to all deadlines (usually May 1st)Contact the college you will be attending to earn

about additional scholarship opportunities

48

Thanks for comingThanks for coming

49

Contact information:

Jill Haley

Advantage College Consulting

www.getyouintocollege.com

Phone: (530) 470-9103• e-mail:jllncca@gmail.com