College Financial Aid Night

Agenda Financial aid timeline

What is financial aid

College costs

Determination of eligibility

Need-based programs

Alternatives

How to complete a FAFSA

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Financial Aid Timeline

Net price calculator list: http://www.usnews.com/education/best-colleges/features/net-price-calculator

Types of Student Financial Aid

Grants

Scholarships

Loans

Employment

Student Financial Aid

Merit-based* academics talent athletic others

Need-based financial considerations

*Average merit aid granted at over 600 colleges and universities: http://thechoice.blogs.nytimes.com/2012/07/23/merit-aid-chart/

Basic Formula for Aid

Cost of Attendance (varies widely)

Expected Family Contribution

Eligibility for Need-Based Funds

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=

Direct College Costs Tuition

Required fees

Room

Meals

Books and Supplies

Indirect College Costs Transportation Miscellaneous personal expenses,

including documented costs for a personal computer

Loan fees

What is an EFC?EFC---Expected Family ContributionEFC is the end result after submitting a

FAFSAParent Contribution: Uses parent income

and assets (after protecting some assets and income for basic living expenses)

Student Contribution: Uses student income and assets (after protecting some assets and income of $6,130)

Determination of EFC

Parents’ contribution

+ Student’s contribution

= Expected Family Contribution

Resource to review: FAFSA Forecaster www.fafsa.gov

Applying for Federal Financial Aid

Free Application for Federal Student Aid (FAFSA) Download the FAFSA on the Web Worksheet via

www.fafsa.gov to prepare your form99.99% of forms are filed online!Sign with a Personal Identification Number (PIN)

Can obtain paper form: 800-4-FED-AID (1-800-433-3243)

Complete FAFSA at www.fafsa.gov after January 1, 2014 for the next academic year

Results available online in 48 hours and to the institutions you list on the FAFSA

Other forms:

Institutional application – ex. YU

CSS (College Scholarship Service) PROFILE – ex. UMich, Brandeis, Case

Outside scholarship applications

Applying for Financial Aid

Applying for Financial Aid Meet earliest deadline of colleges in which

you are interested – ex. YU, Brandeis 2/1, OSU 2/15

Complete all questions accurately

Estimate if necessary to meet early deadlines

Don’t wait until you are admitted to file the FAFSA

Keep a photocopy of all documents for your records

Applying for Financial AidDownload a financial aid deadline

organizer!

http://collegeadmissionbook.com/worksheets

Need Help?College Goal Sunday 2014

• Sunday, February 9, 2014– Starts at 2PM – Get FREE help completing your FAFSA from college

financial aid officers. • Visit http://www.ohiocollegegoalsunday.org to:

– Learn more– Find closest location– Register

Other options:

College Now Cleveland’s walk-in resource center Level 3 of Tower City Center

Hours: Monday – Friday: 10 a.m. – 5 p.m.

Potential Institutional Adjustments to EFC for

Institutional Funds Minimum contribution from students to

their educational costs (summer earnings) Use home equity in determination of net

assets Make adjustments for medical/dental

expenses Make adjustments in the

losses/depreciation claimed for business/farm operations

Special Circumstances Significant change in your family…

Unemployment of a parent

Death in the family

Change in parents’ marital status

Medical expenses not covered by insurance

Student cannot obtain parent information

Notify the financial aid office at your college of any special circumstances. Be prepared to provide documentation of any change, including the financial impact of the change.

Sources of Financial Aid

Federal Government

State Programs

Institutional funds

Outside agencies

Federal Aid Programs

Federal Pell Grant

Federal Supplemental Educational Opportunity Grant

Federal Work-Study

Federal Perkins Loan

Ford Federal Direct Loan

Federal TEACH Grant (loan)

What about Federal Loans?

Federal Direct Subsidized and Unsubsidized Loans 3.86% for unsubsidized and subsidized loans

Federal Perkins Loans—5%

Federal Direct PLUS Loans – 6.41% Parents of dependent students

Graduate or professional students

Ohio Aid Programs (partial listing)

Choose Ohio First Scholarship (for STEM)

Nurse Education Assistance Loan

Program

Ohio College Opportunity Grant

Institutional and Outside Aid

Institutional AidGrants & ScholarshipsLoan ProgramsStudent Employment

Outside AgenciesLocal organizationsCivic GroupsParents’ employersJFSA: http://www.jfsa-cleveland.org/financialaid.asp Hebrew Free Loan Association of Cleveland: http://www.hflaclev.org/

Is that all there is? Private alternative loans for students or

parents Last resort--Always apply for federal loans first!

College payment plans

Outside scholarships – see guidance manual!

Tax credits – American Opportunity &

Lifetime Learning

Tax Credits - American Opportunity

Tax Credit

• Available for the first four years of college to assist with tuition, fees and required books.

• Up to $2500 tax credit –reduces amount of taxes owed; up to 40% refunded when no income tax due.─ 100% of first $2,000 expenses and 25% of the next

$2,000. • Examples:

─ Tuition of $8000 paid in 2013-- May claim $2500 on the tax return completed for 2013 (filed in 2014).

─ Tuition of $1,200--May claim the full $1,200─ Tuition of $3,000--May claim $2,250 (all of the first

$2000, and 25% of the remaining tuition…which is $250).

Tax Credits - Lifetime Learning Available for all years Can claim for remaining undergraduate

years and graduate study as well as professional development classes.

Can claim credit for 20% of tuition & fees, up to maximum of $2,000.

Income restrictions on who can claim Lifetime and American Opportunity Tax Credits ….. Consult with your tax advisor!

IRS Deductions and Credits for 2013

Families with adjusted gross incomes up to

$80,000 (single filers) & $160,000 (joint filers) can claim tax credits.

Certain taxpayers will qualify to take a tax deduction for tuition and fees of up to $4,000 (even if they don’t itemize).

Cannot claim American Opportunity or Lifetime Learning Credit in the same year as deduction for same student.

Don’t miss out on the tax credits or deductions! Talk to your tax preparer or do your research.

Less expensive options to consider:

Low-cost pathways: Many universities have partnerships that allow students to

start their degree at a less-expensive community college and finish it on a main university campus. Some Ohio options:

Less expensive options to consider:

Plan for summer classes! Ex. Can transfer 10 credits/summer to YU. Many CSU

courses are pre-approved.

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Additional Information Federal Department of Education

http://studentaid.gov/

Ohio Association of Student Financial Aid Administrators http://www.oasfaa.org

Ohio Means Success http://www.ohiomeanssuccess.org

The SmartStudent Guide to Financial Aid www.finaid.org

Collegeboard: Big Futurehttps://bigfuture.collegeboard.org/pay-for-college

A Closer Look at the FAFSA

Breaking news!

http://www.insidehighered.com/news/2013/10/28/colleges-use-fafsa-information-reject-students-and-potentially-lower-financial-aid

What is a PIN?

What is a Personal Identification Number (PIN)? Issued to an individual and is a “signature” for

Federal Student Aid purposes Faster than using paper signature PIN will expire if not used for 18 consecutive

months Parent’s PIN may be used for multiple children Each student must have own PIN Obtain PIN from www.pin.ed.gov

FAFSA on the Web Worksheet

Complete the Worksheet to help you complete the FAFSA on the Web

Questions on the Web are presented in a different order than the questions on the paper FAFSA

The questions on the Worksheet are ordered as they appear online

Worksheet is available in PDF form www.fafsa.gov

Message for Applicants Who Indicate They “Will File”

Their Taxes

• Available (early Feb.) to those who have filed taxes and are:

• Completing the FAFSA• Correcting their FAFSA (updating with IRS

data)

• Does not apply to• Married but are filing separately• Marital status changed after 12/31/13• Those filing amended or foreign tax returns

IRS Data Retrieval Tool (within FAFSA)

• To use the Tool, must have: • A valid Social Security Number and• Filed a 2013 federal tax return• The exact street address used on the tax return!

• Filtering question on FAFSA helps determine if you can use

• IRS Data Retrieval Process meets verification requirements

• Secure and FAST option

IRS Data Retrieval Tool (within FAFSA)

IRS Data Retrieval ToolFiltering Question

Financial Aid Presentation NCASFAA/ NCSEAA

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DependencyStudents are independent if: 24 years old or older Orphan, foster child/ward of the State Have children for whom they provide more than 50%

support Have a legal guardian Married Veteran or on active duty Graduate students Legally emancipated Homeless or at risk of homelessness

Students not meeting one of the above must include parental information for full aid consideration.

• Parents living and married to each other• Parent widowed or single • Parents divorced or separated—answer questions for parent

with whom student lived more during past 12 months

– If student lived with each parent exactly the same amount

of time, answer for the parent who provided more

financial support during the past 12 months or during the

most recent year that the student actually received

support from a parent• If parent remarried, answer about that parent and the

person whom parent married (stepparent)

Who are considered parents on the FAFSA?

Signing the FAFSA After completing the FAFSA, student and

parent must sign by:

Entering PIN Both student and one parent should each have PINs

OR

Print signature page, sign and mail to address provided within 7 days

Sign the Application and Submitby clicking “Submit My FAFSA

Now”

The Sign & Submit page includes the signature process for the student

Confirmation Page

• Next steps

• EFC estimate

• Pell Grant & Direct Loan estimates

What happens after I file the FAFSA?

1. Complete verification if required.2. Respond to any questions from the

campus aid office.3. Receive financial aid notification.4. Reply to offers of aid (and admission).5. Complete promissory note if borrowing

money.6. Notify campus of outside scholarships.

Questions?