Diane Cantonwine Office of Student Financial Aid Miami
University Middletown
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Topics We Will Discuss: What is financial aid? Cost of
Attendance (COA) Expected Family Contribution (EFC) What is
financial need? Categories, types and sources of financial aid The
Free Application for Federal Student Aid (FAFSA) A general
financial aid timeline What if you have special circumstances?
There are resources available
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What is Financial Aid? Financial aid are the funds provided to
students and families to help pay for postsecondary educational
expenses. Can come from various sources: oColleges or Universities
oFederal Government oState Government oCivic Organizations and
Churches oEmployers oPrivate Sources
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What is a Cost of Attendance? Commonly abbreviated at COA
Includes: Direct Costs Billed by or paid directly to the college,
such as tuition and on- campus housing Indirect Costs Necessary
expenses, such as transportation and personal care items, that are
not paid to the college.
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Cost of Attendance (continued) COA Tuition and Fees Room and
Board Books and Supplies Miscellaneous Living Expenses
Transportation We combine the Direct and Indirect costs to form the
Cost of Attendance, or student budget.
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Cost of Attendance (continued) Cost of Attendance varies widely
among different types of college. Residency (in-state vs. out of
state) Enrollment Status (full-time vs. part-time) Campus (main
campus vs. regional campus) Living arrangements (on-campus vs.
off-campus) It is important to compare the COA at each university
alongside the students aid package. Remember that the COA is not
necessarily what you are going to be billed, but it does represent
the maximum amount of aid a student can receive.
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What is the Expected Family Contribution (EFC)? Amount a family
can reasonably be expected to contribute, but not what the family
will necessarily pay to the college EFC is the same regardless of
what college or university the student attends Two components
combined to form EFC: Parent contribution Student contribution
Calculated using data from a federal application form and a federal
formula - FAFSA Range of an EFC is $0 - $99,999
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2010-2011 EFC Calculation A few of the things included to
calculate the EFC: Familys Taxable Income Familys Untaxed Income
The Number of People in your Household The Number of Students in
College Child Support Paid or Child Support Received Family Assets*
*Examples of what is NOT included in Assets: Value of your Primary
Home Value of Life Insurance Official Retirement Plans (pension
funds, annuities, non-education IRAs, Keogh plans, etc.) Value of
Small Business that the family owns more than 50% of but has 100 or
fewer employees
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Income vs. EFC Family Income LevelEstimated EFC Range Below
$20,000$0&$800 $20,000 - $40,000$900&$3,400 $40,000 -
60,000$4,100&$7,650 $60,000 - 80,000$8,950&$12,850 $80,000
- 100,000$12,000&$16,850 Above $100,000$17,800&up to
$99,999 Estimates are from
http://www.ed.gov/pubs/collegecosts/
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The difference between the cost of attendance and the expected
family contribution Your financial need is used to determine how
much aid you may receive A college may not be able to offer enough
aid to meet your demonstrated financial need, however it is our
GOAL! What is Financial Need? COAEFC Financial Need
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Financial Need Comparison Private 4 Year College or University
Public 4 Year College or University Public 2 Year College or
University Cost of Attendance (COA)$41,930$29,064$10,506 - Expected
Family Contribution (EFC)$12,000 Financial Need$29,930$17,064$0 The
Expected Family Contribution (EFC) is the same at every
institution, need changes.
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Categories of Financial Aid NEED-BASED Awarded on the basis of
financial need, as calculated using a form such as the FAFSA NON
NEED-BASED Awarded on the basis of a students ability, talent or
unique characteristics, such as academic achievements, athletic
ability, musical talent, or ethnic heritage
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Grants Grants (typically need-based) are funds that do not have
to be re-paid by the student. They are often based on the students
financial need and may not have a minimum Grade Point Average (GPA)
for renewal. A Few Examples: Federal Pell Grant Maximum of
$5,550/year for 2010-2011 Supplemental Education Opportunity Grant
(SEOG) Federal TEACH Grant Maximum of $4,000/year
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Scholarships Scholarships (need-based OR non-need-based) are
also funds that do not have to be re-paid by the student. They are
usually awarded on academic criteria and there is often a minimum
GPA required for renewal. Some scholarships are renewable, some are
not.
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Loans Loans are funds that students or parents borrow to pay
for college costs. Repayment typically begins after the students
education is finished. Look at loans as an investment in the
students education and their future! TIP: Only borrow what you
need!
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Types of Loans All FAFSA filers may receive a Federal Direct
Stafford Student Loan with no credit check or co-signer For
dependent students: loan amounts are limited to $5,500 for
freshmen, $6,500 for sophomores, $7,500 for juniors and seniors.
Independent students are eligible for an additional amount of
$4,000 or $5,000. Repayment will begin 6 months after graduation
(or when enrollment falls below time)
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Types of Loans (continued) Subsidized Federal Student Loans
(fixed rate) The interest is paid by the government while the
student is in school. Examples: Federal Perkins Loan, Federal
Direct Subsidized Stafford Loan. Unsubsidized Federal Student Loans
(fixed rate) The interest accrues on the loan while the student is
in school. Example: Federal Direct Unsubsidized Stafford Loan
Depending on financial need, a student may be offered a combination
of subsidized and unsubsidized federal loans.
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Types of Loans (continued) PLUS Loans (fixed interest rate)
Federal loan taken out by the parent of a dependent student
Repayment begins 60 days after full disbursement of loan (typically
Spring). Provisions allow for in school deferment that mimics that
of the Federal Stafford/Direct Loan programs. Approval is based on
the parents credit history If the parent is denied a PLUS loan, the
student is eligible for additional unsubsidized loan funds $4,000
if student is a freshman or sophomore $5,000 if student is a junior
or senior
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Types of Loans (continued) Private Education Loans (variable
interest rate) Loan taken out by the student from a private
bank/credit union Typically requires a co-signer Payment usually
deferred until after graduation Sometimes interest only payments
are required Approval is based on student and/or co-signers credit
history Amount can not exceed COA minus all other aid
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Employment Federal Work-Study The school pays a percentage of a
students wage and the government pays the rest Earnings are
typically not directly applied to a students bill, instead, the
student receives regular paychecks throughout the year Work-Study
Benefits: Increases employment opportunities Federal Work-Study
wages are excluded from the EFC calculation on the following years
FAFSA
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The FREE Application for Federal Student Aid (FAFSA) The FAFSA
is the standard form that collects demographic and financial
information about the student and family available in English and
Spanish Why file electronically at www.FAFSA.gov? Built-in edits to
prevent costly errors Skip-logic allows you to skip unnecessary
questions Option to use Internal Revenue Service (IRS) data share
More timely submission of application and/or corrections More
detailed instructions and help for common questions Ability to
check application status on-line
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Basic FAFSA Eligibility have a high school diploma or G.E.D. be
enrolled or accepted for enrollment as a regular student working
toward a degree or certificate in an eligible program be a U.S.
citizen or eligible noncitizeneligible noncitizen U.S. national
(includes natives of American Samoa or Swains Island) U.S.
permanent resident with an 1-151, I-551 or I 551C Have an I-94 from
U.S. Citizenship and Immigration Services showing: Refugee, Asylum
Granted, Cuban-Haitian Entrant, Status Pending, Conditional
Entrant, or Parolee. have a valid Social Security Number register
with the Selective Service (if required)
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Dependency Status Questions for the 2011-2012 FAFSA Application
Were you born before January 1, 1988 As of today, are you married?
At the beginning of the 2011-2012 school year, will you be working
on a masters or doctorate program (such as an MA, MBA, MD, JD, PhD,
EdD, or graduate certificate, etc.)? 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 half of their support from you
between July 1, 2011, and June 30, 2012?
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Dependency Questions (Continued) Do you have dependents (other
than your children or spouse) who live with you and who receive
more than half of their support from you, now and through June 30,
2012? At anytime 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? Are you, or were you an emancipated minor as
determined by a court in your state of legal residence at the time
you received the determination? Are you, or were you in legal
guardianship as determined by a court in your state of legal
residence at the time you received the determination?
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Dependency Questions (Continued) At any time on or after July
1, 2010, 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, 2009, did the director of an emergency
shelter or transitional housing program funded by the U.S.
Department of Housing and Urban Development determine that you were
an unaccompanied youth who was homeless? At any time on or after
July 1, 2009, 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?
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'FAFSA on the Web' (FOTW) Website: www.FAFSA.gov All
application options will be accessible with one log in: Starting a
FAFSA Continue a FAFSA Corrections Adding a School Code Signing the
FAFSA Status Check View SAR
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FAFSA Details: May be filed at any time during an academic
year, but no earlier than January 1 st prior to the academic year
for which the student requests aid January 1, 2011 for the
2011/2012 academic year College may have their own priority
deadlines Not meeting a colleges priority deadline may severely
impact the amount of financial aid a student receives TIP: The IRS
data share option may not be available to you in time to meet a
schools priority deadline. Note: File the FAFSA even before you
hear about your admission decision.
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What is Needed to File ? Step 1: Register for a PIN (both
parent and student) at www.PIN.ed.gov Step 2: Collect needed
documents and information for student and parent(s): Social
Security Numbers Prior Year Federal Income Tax Return (if
applicable) All Prior Year W2s Records of untaxed income (i.e.,
payments to tax-deferred pension and savings plans, veterans
non-education benefits, child support received for all children,
etc) Asset Information
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FAFSA Steps (continued) Step 3: Use the FOTW Worksheet Print
from www.FAFSA.govwww.FAFSA.gov This step is optional, but USEFUL!
Step 4: Be aware of deadlines Deadlines differ by school and they
are typically not negotiable. The 2011-2012 FAFSA on the Web
Worksheet is included in your red folder.
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More FAFSA Details: Once you submit the FAFSA it computes your
Expected Family Contribution (EFC) and provides you with an
electronic Student Aid Report (SAR). This information is also sent
to your chosen school(s). You control what school(s) receives your
FAFSA results. TIP: Filing the FAFSA should be FREE! Be careful
that you are not paying someone to complete it for you. Use
resources like a schools financial aid office or your guidance
counselor instead.
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CSS Profile The financial aid application used by some (mostly
private) schools to determine eligibility for the universitys
financial aid Almost 600 schools, organizations, and scholarship
programs use the CSS Profile COST: $25 initial registration fee
(includes one school or scholarship program) and $16 for each
additional school or scholarship program A limited number of fee
waivers are granted automatically to first-year, first-time citizen
or eligible non-citizen applicants from low-income families, based
on the financial information provided on the PROFILE.
www.collegeboard.com/profile
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Frequently Asked Questions What if my parents are divorced? Use
the parent with whom the student lived with the most in the last 12
months. If you did not live with one parent more than the other,
give answers about the parent who provided more financial support
during the past 12 months, or during the most recent year that you
actually received support from a parent. Do I include the income of
my stepparent? Yes, if the stepparent is married to the parent who
is required to provide information on the FAFSA. If the student
provides his/her own support, do I have to list parental income?
Yes, until the student is 24 years old or meets the limited
exceptions listed on the FAFSA worksheet.
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What is a Special Circumstance? Special Circumstance Examples:
Change in employment status Medical bills not covered by insurance
Change in parent marital status Student cannot obtain information
from parents due to incarceration, abusive situation and/or no
relationship with parents You cannot report this type of situation
on the FAFSA? Instead, speak to the financial aid office at each
college. The college will review your situation and request
additional documentation if appropriate
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Fill out FAFSA with correct school codes Receive financial aid
offer from school Accept or decline aid as desired Sign loan
promissory notes, entrance counseling, etc Register for your
courses Aid is applied towards your bill May 1 or later About 1
week before class Aid in excess of billed amount is sent to you in
a refund check After January 1st Dont forget to re-apply for aid
next year! Summer March/April for 4 year schools.
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Helpful Contacts/Resources General Financial Aid www.finaid.org
FAFSA on the Web www.FAFSA.gov - Access real-time, private, online
chat with a customer service representative Useful Links
www.muohio.edu/finaid If you have additional questions call the
school financial aid office, or 1-800-4-FEDAID
