View
29
Download
0
Category
Tags:
Preview:
DESCRIPTION
What You Need to Know about Financial Aid. Topics We Will Discuss Tonight. What is financial aid Cost of attendance (COA) Expected Family Contribution (EFC) What is financial need Categories, types, and sources of financial aid Free Application for Federal Student Aid (FAFSA) - PowerPoint PPT Presentation
Citation preview
National Association of Student Financial Aid Administrators
© NASFAA 2011
What You Need to Know
about Financial Aid
Slide 2 © NASFAA 2011
Topics We Will Discuss Tonight
• What is financial aid• Cost of attendance (COA)• Expected Family Contribution (EFC)• What is financial need• Categories, types, and sources of financial aid• Free Application for Federal Student Aid
(FAFSA)• Special circumstances
Slide 3 © NASFAA 2011
What is Cost of Attendance (COA)
• Direct costs
• Indirect costs
• Direct and indirect costs combined into cost of attendance
• Varies widely from college to college
Slide 4 © NASFAA 2011
Budget Components (2011-2012)
Budget Resident• Tuition 7434• Room/Board 8272• Transportation 1117• Personal 1500• Books/Supplies 500
18,823
Budget Non-Resident• Tuition 13297• Room/Board 8272• Transportation
1117• Personal
1500• Books/Supplies
500
24,686
Slide 5 © NASFAA 2011
Comparison Cost of Schools
NorthwestCost of Attendance 18,823EFC - 6,800
Gross Need 12,023
University XCost of Attendance 23,000EFC - 6,800
Gross Need 16,200
University YCost of Attendance 28,500EFC - 6,800
Gross Need 21,700
Slide 6 © NASFAA 2011
What is the Expected Family Contribution (EFC)
• Amount family can reasonably be expected to contribute
• Stays the same regardless of college• Two components
– Parent contribution– Student contribution
• Calculated using data from a federal application form and a federal formula
Slide 7 © NASFAA 2011
What is Financial Need
Cost of Attendance
– Expected Family Contribution
= Financial Need
Slide 8 © NASFAA 2011
Types of Financial Aid
• Scholarships
• Grants
• Loans
• Employment
Slide 9 © NASFAA 2011
Common Federal Aid Programs
• Federal Pell Grant
• Teacher Education Assistance for College and Higher Education Grant
• Federal Supplemental Educational Opportunity Grant
• Federal Perkins Loan
• Federal Work-Study
• Subsidized and Unsubsidized Loans
• PLUS Loans
Slide 10 © NASFAA 2011
FAFSA on the Web
• Website: www.fafsa.gov• 2012–13 FAFSA on the Web available on
January 1, 2012• FAFSA on the Web Worksheet:
– Used as “pre-application” worksheet– Questions follow order of FAFSA on the Web
Slide 11 © NASFAA 2011
FAFSA on the Web
Good reasons to file electronically:• Built-in edits to prevent costly errors• Skip logic allows student and/or parent to
skip unnecessary questions• Option to use Internal Revenue Service
(IRS) data retrieval
Slide 12 © NASFAA 2011
IRS Data Retrieval
• While completing FOTW, 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 to FOTW
Slide 13 © NASFAA 2011
Federal Student Aid Personal Identification Number (FSA PIN)• Website: www.pin.ed.gov
• Sign FAFSA electronically
• Not required, but speeds processing
• May be used by students and parents throughout aid process, including subsequent school years
Slide 14 © NASFAA 2011
FAFSA on the Web Worksheet
2012–13 FAFSA on the Web Worksheet—4-page booklet containing:
• Instructions
• 22 questions in 4 sections
Slide 15 © NASFAA 2011
FOTW Worksheet
• General student information
• Student’s dependency status
• Information about the parents of dependent students
• Information about the student (and spouse)
Slide 16 © NASFAA 2011
Signatures
• Required– Student– One parent (dependent students)
• Format– Electronic using PIN– Signature page– Paper FAFSA
Slide 17 © NASFAA 2011
Frequent FAFSA Errors
• Social Security Numbers• Divorced/remarried 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
Slide 18 © NASFAA 2011
FAFSA Processing Results
• Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA submitted
• College reviews ISIR– May request additional documentation, such
as proof that a sibling is enrolled in college
Slide 19 © NASFAA 2011
Verification and Request for IRS Tax Return Transcript• Student must submit IRS Tax Return Transcript
(self, spouse, or parents) when:– Applicant or parent did not use IRS Data Retrieval
Process (initial or correction)– Information included on FAFSA via IRS Data Retrieval
Process is subsequently changed– Married applicant and spouse file taxes separately– Parents of a dependent student file taxes separately– Marital status of applicant or parent changes after end
of tax year on Dec. 31, 2011– Applicant, spouse or parent file an amended tax return
Slide 20 © NASFAA 2011
Awarding Process
18,823- 2,958 EFC
15,865 Need- 2,600 Pell
13,265- 1,500 Tower
Scholar11,765
- 1,000 MO Access10,765
10,765- 1,000 Perkins Loan 9,765- 3,500 Sub. Loan
6,265- 2,400 Work Study
3,865- 2,000 Unsub. Loan
1,865+(2,958)=4,823 Plus EFC
Slide 21 © NASFAA 2011
Award Letter
Slide 22 © NASFAA 2011
Making Corrections
If necessary, corrections to FAFSA data may be made by: • Using FAFSA on the Web (www.fafsa.gov) if
student has a PIN;• Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or• Submitting documentation to college’s financial aid office
Slide 23 © NASFAA 2011
Special Circumstances
• Change in employment status
• Medical expenses not covered by insurance
• Change in parent marital status
• Unusual dependent care expenses
• Student cannot obtain parent information
Recommended