Embed Size (px)
Citation preview
2014-2015Financial Aid Workshop
Financial aid programsHow and when to apply
Filing the FAFSAHelpful resources
Questions and answers
Financial Aid Application Time
After January 1st Senior Year in High SchoolYou can file based on estimated income
• Federal Aid: www.fafsa.gov
• NYS Aid: www.hesc.ny.gov
• www.collegeboard.org Note: Links are provided as a general information resource for the use of visitors to the web site. The links provided are maintained by their respective organizations and they are solely responsible for their content. Hofstra does not favor one link over the other, nor does Hofstra endorse or profit, in whole or in part, from any products or services offered or promoted by any of the web sites whose links appear.
What is Financial Aid?
Financial Aid
Federal Work-study
Grants Scholarshi
psLoans
Types of Gift Aid• Institutional, federal, state and private grants and
scholarships:
• Federal Grantso Pell Grant, SEOG Grant and TEACH Grants
• New York State Grantso Tuition Assistance Programo And other grants & scholarships
Where to Look for Gift Aid
• College/University• Government
o Federal o State
• High school• Library• Newspaper• Associations• Religious organizations
Scholarship Search Sites
Fastweb.com
Scholarships.com
Collegeboard.com
Finaid.org
Note: Links are provided as a general information resource for the use of visitors to the web site. The links provided are maintained by their respective organizations and they are solely responsible for their content. Hofstra does not favor one link over the other, nor does Hofstra endorse or profit, in whole or in part, from any products or services offered or promoted by any of the web sites whose links appear.
What to Ask• College scholarships/grants
o Application vs automatic awards
o Application deadlines
o Awarded by Admission, Financial Aid, Athletic department, Alumni office, major department
o Renewable vs one-time award
o Any limits
o Or renewal criteria
o What happens if the student changes major
Federal Pell Grant
• Used as the foundation of the financial aid package
• Must demonstrate exceptional financial need
• Awarded to eligible undergraduates pursuing a 1st baccalaureate or professional degree
• The actual award amount is based on a sliding scale based on the enrollment status, and EFC
• $5,645 maximum annual award for 2013-2014
Federal Supplemental Educational Opportunity
Grant (FSEOG)• Undergraduate students pursuing a 1st
baccalaureate or professional degree
• Awarded first to students with exceptional need
• First- come, first- served
• Priority given to Federal Pell Grant recipients
• Federal maximum $4,000 year
Federal TEACH Grant• Up to $3,712 per year
• Not need-based
• Students who intend to teach in a high need field in a public or private elementary or secondary school that serves students from low-income families
• May not qualify until junior/senior year
• Service- work obligation is required or the grant converts into an Unsubsidized Stafford Loan
N.Y.S. Tuition Assistance Program(TAP)
• Full-time undergraduate students
• NY state residents only attending a college located in NY state
• File the FAFSA, a link is provided at the end to hesc.ny.gov
• Dependent undergraduates: $500-$5,000
• Independent undergraduates: $500-$3,025
• Based on NYS Net taxable plus untaxed state pension income o Up to $80,000 for dependents or married students with
dependents o Up to $40,000 for married students without dependents o Up to $10,000 for independent individuals
Federal Work Study (FWS)
• Need-based
o Most jobs worked on campus
o Students earn wages o Based on student
scheduleo Earnings do not count
against next FAFSAo Build resume
Loans• Federal Education Loans
o Subsidized & Unsubsidized Stafford Loan- student loan
o Perkins Loan- student loano Federal Parent Plus Loan- parent loan
• Other Loanso Alternative/Personal Student Loano Home Equity Loan
Federal Stafford Loans• Subsidized (2013-2014)
o Need- basedo 3.86% interest, does not accrue while in college
• Unsubsidizedo Non- need basedo 3.86% interest, accrues while in college
• Annual borrowing limit is based on the year in college determined by the number of credits earned
• 1.072% loan fee
• Repayment begins when the student graduates, falls below half-time or withdraws
UG Dependent Student Annual Stafford Limits
Year in College Gross Annual Loan2nd Additional
Unsub if Denied PLUS
1st
2nd
3rd & beyond
$5,500 (max sub $3,500)
$6,500 (max sub $4,500)
$7,500 (max sub $5,500)
$4,000
$4,000
$5,000
UG Independent Annual Stafford Limits
Year in College Gross Annual Amount
1st
2nd
3rd & beyond
$9,500 (max sub portion $3,500)
$10,500 (max sub portion $4,500)
$12,500 (max sub portion $5,500)
Federal Perkins Loan• Part of campus-based program; first- come, first- served
• Must demonstrate exceptional financial need
• The borrowing limit is determined annually based on funds available - federal maximum $5,500 undergraduate
• 5% fixed interest rate
• No loan fee
• Repayment begins 9 months after graduation, drop below ½ -time or withdraws
Federal Parent Loanfor Undergraduate Students (PLUS)
• Borrowers are parents of dependent undergraduate students
• Eligible parent borrowers are either of two biological parents or a step-parent with whom the student lives
• Non- need based but the FAFSA is required to be filed
• Credit check- may apply with endorser
• Annual limit is the cost of attendance minus other aid received, no aggregate limit
• Repayment begins 60 days after the 2nd half of the loan is disbursed in the spring semester (after the third disbursement for trimester schools), however it may be deferred until after graduation
• 6.41% fixed interest rate
• 4.288% loan fee
Private- Alternative Loans• Annual borrowing limit is COA minus other aid
• May impose minimum student age 18 at application
• Credit worthy cosigner does not have to be a parent
• Rates and terms vary greatly by lender and program of study- variable and fixed interest rates
• May require payment while in college
• May have aggregates which may include federal loans in aggregates
• www.Finaid.org/loans/privatestudentloans.phtmlNote: Links are provided as a general information resource for the use of visitors to the web site. The links provided are maintained by their respective organizations and they are solely responsible for their content. Hofstra does not favor one link over the other, nor does Hofstra endorse or profit, in whole or in part, from any products or services offered or promoted by any of the web sites whose links appear.
Filing the Free Application for Federal
Student Aid (FAFSA)
2014-2015
Why file the FAFSA?• It’s free!
• It determines eligibility for federal grants, loans & work study
• Some states including New York require it as the first part of an application process for financial aid from that state
• Some colleges and private organizations require it for consideration of scholarships and grants
Should I hire a consultant to help me file the
FAFSA?• We do not recommend paying a fee when
you can get the help you need right from the source for free
• Specialized FAFSA representatives are available to assist you step-by-step through the application at 1-800-4-FEDAID (1-800-433-3243) or click the “Live Help” button to chat with a FAFSA representative
What is the difference between www.fafsa.gov and
www.fafsa.com ?
• www.fafsa.gov is the official federal Department of Education website for the filing the FAFSA
• www.fafsa.com is a private company which provides an advisory service and charges a fee
Step 1
Apply for a federal Personal Identification Number (PIN) at www.pin.ed.gov
• A PIN is required for both the student applicant and one parent (if the student is dependent)
• The PIN allows you to complete the FAFSA and sign it electronically
• You will use the same PIN numbers to file the FAFSA every year
• Keep your PIN in a secure place
• For assistance, call 1-800-4-FEDAID (1-800-433-3243)
Step 2After January 1, collect the documents needed to apply for both the student and parent(s)oAll sources of 2013 taxed and untaxed
income such as income tax returns, W2 forms, benefit statements, etc.
oAsset information such as your most recent bank statements, investments, stocks, bonds, mutual funds, etc.
o Social Security numberso Student driver’s license (if applicable)oAlien registration number (if applicable)
FAFSA FAQQ. What are some common mistakes
people make completing the FAFSA to avoid?
• Not asking for help, call 1-800-4-FEDAID• File the correct FAFSA for the correct aid
year • Do not use nicknames• Use correct Social Security numbers• Do not list parent income under the student• Make sure both student & parent signatures
go through
Step 3Print a 2014-2015 “FAFSA on the Web Worksheet”
• The worksheet is used as a helpful tool to organize your information and cut down on the time you need to complete the FAFSA online
• Do not mail the web worksheet to FAFSA or to colleges
• For step-by-step assistance completing the worksheet and the FAFSA online,
call 1-800-4-FEDAID (1-800-433-3243)
What is Selective Service?• Registration requirement for young men which
preserves America’s ability to provide manpower in an emergency to the U.S. Armed Forces
• Almost all men ages 18 through 25 must register
• Since this is a federal requirement, it is required for qualified male students to apply for federal aid
• www.sss.gov
Note: Links are provided as a general information resource for the use of visitors to the web site. The links provided are maintained by their respective organizations and they are solely responsible for their content. Hofstra does not favor one link over the other, nor does Hofstra endorse or profit, in whole or in part, from any products or services offered or promoted by any of the web sites whose links appear.
Principles of Need Analysis• Paying for college is a partnership
• Equitable and consistent formula
• Based on dependency status
• Parent contribution + student contribution = EFC (Expected Family Contribution)
• Snapshot of the current financial condition, allowing for consideration of loss of income special circumstances such as unemployment, disability, separation/divorce or death of a parent, excessive medical/dental expenses paid out of pocket, etc.
o Dependent students must file the FAFSA with the parent with whom they’ve lived the last 12 months, regardless of who claimed the student on their taxes
o If the parent is re-married, the step-parent’s information must be reported
Who is a parent on the FAFSA?
Who is a parent when filing the FAFSA?• Biological or step-parent married to the parent
the student lives with or an adoptive parent• NEW for 2014-2015: If the parents are living in
the same household, report information for both parents even if separated/divorced/same gender marriage
Who is not a parent when filing the FAFSA?• Grandparents, foster parents, legal guardians,
aunts and uncles are not parents for filing the FAFSA unless they legally adopted the student before the student turned 13
Automatically Independent 2014-2015• Were you born before January 1, 1991?• As of today, are you married?• At the beginning of the 2014-2015 school year, will you be working on a master’s or
doctorate program?• Are you currently serving on active duty in the U.S. Armed Forces for purposes other than
training?• Are you a veteran of the U.S. Armed Forces?• Do you have children who will receive more than ½ their support from you between July
1, 2014 and June 30, 2015?• Do you have dependents (other than your children or spouse) who live with you and who
receive more than ½ their support from you, now and through June 30, 2015?• At any time since you turned age 13, were both your parents deceased, were you in
foster care or were you a dependent or ward of the court?• As determined by a court in your state of legal residence, are you or were you an
emancipated minor or were you or are you in a legal guardianship?• At any time on or after July 1, 2013, did your high school or school district homeless
liaison determine that you were an unaccompanied youth who was homeless?• At any time on or after July 1, 2013, did the director of an emergency shelter or
transitional housing program funded by the U.S. Dept. of Housing and Urban Development determine that you were an unaccompanied youth who was homeless?
• At any time on or after July 1, 2013, did the director of a runaway or homeless youth basic center or transitional living program determine that you were an unaccompanied youth who was homeless or were self-supporting and at risk of being homeless?
FAFSA FAQQ. My parents are separated or divorced and living
apart, whose information do I put on the FAFSA?
A. You report the information for the parent you lived with the most the past 12 months regardless of who claims you on their income tax return. If you did not live with one parent more than the other, report the information for the parent who provided the most financial support. If parents are separated/divorced but still living in the same household, report information for both parents.
FAFSA FAQ
Q. Do parents have to be legally separated to file the FAFSA as separated?
A. No. Colleges may ask for proof of separate residences such as a copy of a lease and utility bills.
FAFSA FAQ
Q. My step- parent is not responsible for supporting me, why do I have to report his/her information on the FAFSA?
A. It is required by federal financial aid regulations. If the parent you reside with is re-married, you must report your step- parent’s information on the FAFSA.
.
FAFSA FAQ
Q. My parents do not have Social Security numbers, how do I complete that area the FAFSA?
A. Enter “0” in all spaces asking for their Social Security numbers.
FAFSA FAQ
Q. We have not yet completed our 2013 federal income tax returns, how do we complete the FAFSA?
A. Check the box indicating you have not yet filed and enter estimated income . Once your tax returns have been filed, you can return to the FAFSA to correct the information.
FAFSA FAQ
Q. The FAFSA requires us to report the “net worth” of our investments, what does that mean?
A. Net worth is the current value of all your investments required to be reported on the FAFSA minus debt (only subtract debt from properties other than your primary residence like a vacation home or rental property).
FAFSA FAQQ. What kind of investments are included
on the FAFSA?
A. Real estate (do not include the home you live in unless a portion of it is rented out, you must report the rented portion), trust funds, UGMA and UTMA accounts, money market funds, mutual funds, certificates of deposit, stocks, stock options, bonds, other securities, installment and land sale contracts (including mortgages held), commodities, etc., qualified educational benefits or education savings accounts (e.g. Coverdell savings accounts, 529 college savings plans and the refund value of 529 prepaid tuition plans).
FAFSA FAQQ. How are 529 plans reported on the
FAFSA?
A. 529 plans are reported under the “owner” as an investment not the beneficiary. If the parent is the owner, it is reported under the parent investment question. If the parent has more than one 529 plan for various members of the family including siblings of the student, the total value of all plans must be reported under the parent.
FAFSA FAQQ. Besides the home we live in, are
there any other investments we do not include?
A. Do not include the value of life insurance, retirement plans (401[k] plans, pension funds, annuities, non-education IRA’s, Keogh plans, etc.), UGMA and UTMA accounts for which you are the custodian but not the owner, or cash, savings and checking accounts which were already reported in the FAFSA.
FAFSA FAQQ. How do I find out the Federal college
codes of the schools I want to apply to?
A. There is a search online when you are completing the FAFSA, ask the colleges directly or call the FAFSA toll free number at 1-800-4-FED-AID (1-800-433-3243).
Hofstra’s Federal school code is 002732.
FAFSA FAQQ. I can only send the FAFSA to 10
colleges online, what if I need to send the FAFSA to more?
A. You can change the codes by going back into the FAFSA online or call 1-800-4-FED-AID (1-800-433-3243)and do it over the phone. By doing this, you are actually removing some of the previous schools listed and therefore future changes to the FAFSA will only be sent to the 10 schools most recently listed on the FAFSA.
FAFSA FAQ
Q. I am interested in living on campus but not sure. Which answer should I indicate on the FAFSA?
A. If you are interested in living on campus, you should indicate on campus. If you need to change the status later to with parent or off campus, you should inform each Financial Aid Office directly.
FAFSA FAQ
Q. What is the difference between the “with parent” and “off campus” housing status?
A. With parent means the student will be commuting from their parent(s) or other relative’s home. Off campus means the student will be commuting from his/her own home or apartment.
FAFSA FAQ
Q. There is no place to indicate special circumstances such as loss of income on the FAFSA. Can I request a re-evaluation?
A. Yes. Most colleges have a special form for this.
FAFSA FAQ
Q. What if I have to make corrections to my FAFSA after I file it?
A. Return to www.fafsa.gov and make the corrections online.
FAFSA FAQQ. How do I apply for the Tuition Assistance
Program (TAP)?
A. There will be a link for New York State residents to apply for TAP at the end of the FAFSA. If you miss the link, wait approximately 3-5 days then go directly to the TAP web site to apply at www.hesc.ny.gov .
For step-by-step assistance call 1-888-NYSHESC (1-888-697-4372).
What happens next?• Upon receipt of the FAFSA, a financial aid
package will be calculated by the college(s) and sent to you (if accepted for admission)
• Further details regarding loan application processes will be provided within the aid package
• Accept or decline the aid offered to you and return the response to the aid office asap but no later than May 1
Verification?• If selected by the FAFSA processor or by the
college
o Submit signed 2013 income documentation
o Request copies of 2013 federal “Tax Return Transcripts” in advance 1-800-908-9946 or www.IRS.gov
o Don’t miss out!
o Additional aid may be offered upon completion of verification
o Aid may be adjusted based on corrections
Typical Undergraduate Financial Aid Process Summary
Fall Semester Senior Year In High School
After January 1 Late Feb.- March April- May
Inquire about scholarship/grant application processes at college(s)
File the FAFSAwww.fafsa.gov1-800-433-3243
Many Colleges/Universities begin to send out financial aid packages
Accept/decline financial aid no later than May 1 the National Reply Date(sooner if required by the college(s)
Males must register for Selective Service upon reaching the age of 18www.sss.gov
Apply for state aid
N.Y.S: link following the FAFSA www.hesc.ny.gov 1-888-697-4372
Complete verification if required, request student and parent federal tax return transcripts from the IRS 1-800-908-9946
Student completes federal Stafford Loan Entrance Counseling & Master Promissory Note in Maywww.studentloans.gov1-800-557-7394
Student and one parent apply for federal PINwww.pin.ed.gov1-800-433-3243
Submit forms (if required): Perkins Promissory Note, proof of citizenship status, selective service registration, etc.
Parent completes federal Parent PLUS Loan Application Request & Master Promissory Notein May 1-800-557-7394www.studentloans.gov
If required by college, file the CSS/Financial Aid PROFILE after October 1(fee required)www.collegeboard.com305-829-9793(not required by Hofstra)
Student and cosigner completes alternative loan application if participating in Maywww.finaid.org/loans/privatestudentloans.phtml
Note: Links are provided as a general information resource for the use of visitors to the web site. The links provided are maintained by their respective organizations and they are solely responsible for their content. Hofstra does not favor one link over the other, nor does Hofstra endorse or profit, in whole or in part, from any products or services offered or promoted by any of the web sites whose links appear.
Helpful Links for Financial Aid Resources:
Federal www.studentaid.gov
NY State www.hesc.ny.gov
General www.finaid.org
Note: Links are provided as a general information resource for the use of visitors to the web site. The links provided are maintained by their respective organizations and they are solely responsible for their content. Hofstra does not favor one link over the other, nor does Hofstra endorse or profit, in whole or in part, from any products or services offered or promoted by any of the web sites whose links appear.
Questions?
