Email Fin Aid PDF

8/3/2019 Email Fin Aid PDF

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Financial Aid 101

The AAA Student Lending Program

Presented by: Shelley Honeycutt

Hosted by: Cathleen Dionne


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WELCOME

How to Contact Us

[email protected]

www.AAA.com/FinancialAid

1-888-422-2536

Presented by:

Shelley Honeycutt

&

Hosted by:

Cathleen Dionne


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Financial Aid Overview Types of Financial Aid Prepare to Apply How to Apply Financial Aid Process Cost Cutting Ideas Questions & Answers

Agenda


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FINANCIAL AID OVERVIEW

Financial Aid 101


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Who Should Apply for Financial Aid?

EVERY student will get access to $5,500 in a

Federal Stafford loan by filling the FAFSA at

a minimum- regardless of income!

EVERY FAMILY


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What is Financial Aid?

FINANCIAL AID is a combination of Grants,

Scholarships, Employment, and Loan that

help fund a college education.

Funds Come From:

Federal | State | Institutional | Other

Sources


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Who Can Get Aid?

Eligibility:

You Must: Be a Citizen or Eligible non-citizen of the US Have a High School Diploma, GED, or Show ATB Be Enrolled at Least Half-Time Register with Selective Service (18-25) Maintain Satisfactory Academic Progress (SAP)

as determined by your school


8/53Financial Aid

InstitutionalFormSome

Colleges

FAFSAAll Colleges

CSSPROFILE500 Private

Colleges

Financial Aid 101


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Up to 3 Forms Needed!

1. FAFSA Free Application for Federal Student Aid

Required by ALL Colleges Gateway to Federal, State, & Institutional Aid FREE to File2. CSS PROLFILE

Required by 500 Private Colleges Gateway to Institutional Aid

NOT FREE to File at www.CollegeBoard.com $25/ $16

3. Institutional Form

May be Required by Some Colleges Free to File


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Gateway to Aid!

File the FAFSA

Online File on or after Jan. 1st File by School Deadlines All HS SeniorsFAFSA HELP:

FAFSA Line by Line@ AAA.com/Register

Note:FAFSA should be filed each year!

www.FAFSA.ed.gov


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Gateway to Aid for Private Colleges!

File the CSS PROFILE

Online File by College Deadline! Can be Oct 15th List of 500 College

PROFILEonline.CollegeBoard.com

Note: If you have

significant Incomechanges ask the FAO ifyou should update yourCSS PROFILE


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Financial Aid Timeline

FundJune-Aug

AcceptMay

AwardLe/ers

March-April

ReceiveAcceptanceJan-March

FileFAFSAJan-March

FilePROFILEOct-Feb


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TYPES OF FINANCIAL AID

Financial Aid 101


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Types of Aid?

Gift Aid

Scholarships Grants Awards

Self-Help Aid

Work-Study Federal Loans State Loans Private Loans Institutional Loans


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Types of Aid- Grants & Scholarships

Grants/Awards

Need Based Mostly Does Not Get Repaid Funds from- Colleges,

Federal, & State Sources

Scholarships

Based on Various Criteria Does Not Get Repaid Funds from- Colleges,

Federal & State Sources


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Types of Aid- Pell & SEOG

Federal Pell Grant

Based on Need

Awarded up to $5,550 Estimated on FAFSA Does Not Get Repaid

Federal SupplementalOpportunity Grant

Based on Exceptional Need Priority to Pell Grant

Awards $100-$4,000


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Types of Aid- Self-Help Aid

Federal Work-Study Program

Provides part-time employment while enrolled in college Helps pay for everyday expenses Available to Full-Time & Part-Time Students Based on Financial Need


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Types of Aid- Loans

Federal Loans

Perkins Loan (must be awarded)

Stafford Loan PLUS Loan for Parents GradPLUS Loan for Graduate & Professional Students

Private Loans

Institutional Loan (must be awarded) Lender Specific Loan


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PREPARE TO APPLY

Financial Aid 101


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Prepare to Apply- 4 Steps

1. Create a Financial Aid file2. Apply for a Federal PIN ID at www.PIN.ed.gov3. Print FAFSA Worksheet at www.FAFSA.ed.gov4. Research Financial Aid Deadlines

RI- March 1st

MA, ME, NH, NY- May 1

st

CT- Feb15th, VT- No State Deadline Check each colleges Deadline also!

ALWAYS ABIDE BY THE EARLIEST DEADLINE


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Create a Financial Aid File Step 1

What goes into a Financial Aid File?

1. PIN IDs2. FAFSA Output3. Loan Paper Work4. Copy of Borrower Benefits offered

at time of Loan5. Communication from the College6. Award Letters


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Federal PIN ID Step 2

Apply for PIN IDs for eachStudent and Parents

Sign FAFSA Sign Federal Loans Access your Federal

Grant & Loan

Information Online

www.PIN.ed.gov


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Print FAFSA Step 3

Print Paper FAFSA

Print Follow Directions Fill Out Completely Makes Online

Application quick andeasy

Note:FAFSA should be

filed each year!

www.FAFSA.ed.gov


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Research Deadlines Step 4

CSS PROFILE Deadlines

Visit CollegeBoard.com and review list of Colleges requiring thePROFILE.

Visit Financial Aid Website at each college you are applying todetermine their deadline

Mark your calendar to file PROFLIE BEFORE the deadline

FAFSA Deadlines

Mark you Calendar for your State Deadline Visit Financial Aid Website at each college you are applying to

determine their deadline Mark your calendar to file FAFSA BEFORE the deadlineInstitutional Deadlines

Visit Financial Aid Website at each college you are applying todetermine their deadline

Mark your calendar to file Form BEFORE the deadline


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HOW TO APPLY

Financial Aid 101


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FAFSA = Free Application for Federal Student Aid. Itis the Federal form you MUST file to receive financialaid at any College (including most Study Abroad)

FAFSA is also Gateway to State financial aid like theMass State Grant & RI Grant

Determines your Estimated Family Contribution (EFC) Colleges use this data to create your students

Financial Aid Award Letter

What is the FAFSA?


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Language is direct toStudent

Not recommended forStudent to fill out forms

Qs about ParentsIncome, Assets, &Demographic information

Use Parental email inplace of Student email

Divorced or Separated usefinancial information ofParent lived with most in

last 12 months Remarried you will need to

report Step-Parentsinformation

Does NOT matter whoclaims student

Directions on where to pullinformation from on RIGHT

side of webpage. Example:

AGI on line 37 of 1040.

How to Apply- What is Asked?


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How to Apply- New FAFSA

File the FAFSA

EZ FAFSA 2012-13

File Online or Paper

File on or after Jan. 1st File by School Deadlines Your College may require

Additional Forms:

CSS PROFILE Institutional Form

Note:FAFSA should be filed each year!

www.FAFSA.ed.gov


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EFC = Expect Family ContributionAmount Family can reasonably contribute Stays the same regardless of College Two Components Calculated using data from FAFSA form

and a Federal Formula (FM)

How to Apply- EFC Defined


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EFC = Expect Family Contribution

Whats Included in Calculation?

Parents prior year income 2011 Students prior year income 2011Value of Parents assetsValue of Students assets Number in Household Number in CollegeAge of Older Parent

How to Apply- EFC Components


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How to Apply- What is Included?

NOT Included

Home live in Value of Life

Insurance

Retirement Plans:Pension Funds, 401K,

403b, Annuities, Non-

Education IRAs,

Keogh Plans, etc

Included

Other Real-estate Trust Funds UGMA & UTMA Accounts Money Market Mutual Funds not in a

retirement Plan

CDs, Stocks, Stock Options,Bonds, and other Investments

529 Plan- Use current valueunder Parental Asset

Commodities, etc


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How to Apply- Special Circumstances

Contact College Directly About:

Substantial Income Changes NOT reported on FAFSA Send Written Explanation to FAO College will review Special Circumstances

May request Additional Documentation Decisions are final and cannot be appealed to US

Department of Education


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How to Apply- FAFSA Output

ExpectedFamily

Contribu


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FINANCIAL AID PROCESS

Financial Aid 101


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The Financial Aid Process

What happens after I file my FAFSA?

1. Department of Education receives data2. FAFSA data will be sent to each school

you listed on the FAFSA3. Schools will use FAFSA data to create

Financial Aid Award Letters4. Financial Aid Award Letters will be sentout in spring via mail, email, or online


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How is EFC used:

The EFC is used to calculateyour Financial Need

Total Cost of Attendance Minus EFC Equals Financial Need

The Financial Aid Process- EFC

CostofAGendanceCOA

-ExpectedFamilyContribu


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CostofAttendanceCOA:

Tuition&Fees Room&Boa

rd

Books&Supplies

Tr

ansportation

PersonalExpenses

On&OffCampus

Calculations

Miscellaneous

Usuallyexpressedasayearly

figure

The Financial Aid Process- COA


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Financial Aid Award

Award Letters will be sent inthe Spring typically via mail,email, or online portal

Compare Awards Accept, Deny, or Appeal

Awards by May 1st

Can Extend Deadlines sometimes

The Financial Aid Process-Award Letters


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FUNDING COLLEGE TUITION

Financial Aid 101


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Funding College Tuition

Core Funding Principals

1. Past Income-Savings, college funds, and other investments.Always consult your financial advisor to ensure you will not using

investments which carry penalties or tax implications.

2. Present Income-Tuition Payment Plans or cash downpayments.

3. Future Income-Federal loans, Institutional loans, and Privateloans.4. Tax Deductions & Credits-Use any tax deductions or credits

each year! Publication 970 at www.IRS.gov.


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Federal Perkins Loan

Borrower: Student Fixed Rate 5% 10 year term Repayment begins 9 months

after graduation, drop out, or

below time Annual Maximum

$4,000 Undergraduate$6,000 Graduate

NO CREDIT CHECK


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Federal Stafford Loan

Borrower: Student Fixed Rate

Unsubsidized 6.8% Subsidized 3.4%

10 year term Federal Fees

Repayment begins 6 monthsafter graduation, drop out, or

below time

NO CREDIT CHECK


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School Year DependentStudent 2011-12

IndependentStudents 2011-12

Year 1 $5,500 (up to $3,500can be subsidized) $9,500 (up to $3,500 canbe subsidized)Year 2 $6,500 (up to $4,500

can be subsidized $10,500 (up to $4,500can be subsidized)Year 3 $7,500 (up to $5,500

can be subsidized) $12,500 (up to $5,500can be subsidized)Year 4 $7,500 (up to $5,500

can be subsidized)$12,500 (up to $5,500can be subsidized)

Graduate $20,500 (up to $8,500can be subsidized)


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Federal PLUS Loan

Borrower: Parent, LegalGuardian, or Graduate student

Fixed Rate 7.9% 10 year term Federal Fees 4% Repayment begins 60 day after

last disbursement Loan payment can be deferred

until 6 months after student

Graduates

CREDIT CHECK REQUIRED


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Qualifying for Federal PLUS Loan

NO Bankruptcy in last 5 years No more than 180 days late on primary

mortgage or Medical bills No 90 days late on other Debt No Default on Student Loans

If Denied for PLUS Loan

Second Look Endorser Can Add to Federal Stafford Loan

$4,000 for 1 & 2 year students $5,000 for 3, 4 & 5 year students


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Amount Borrowed Monthly Payment

$10,000 $120.80*

$15,000 $181.20*

$20,000 $241.60*

$25,000 $302.00*

PLUSLoanMonthlyPayments


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COST CUTTING IDEAS

Financial Aid 101


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Cost Cutting Ideas

u Directly Reduce Tuition Bill In-state, Regional, Sibling,

Reciprocity and Legacy discounts-www.NEBHE.org

u Reduce Long-Term Cost AP & CLEP Exams

u Room & Board Options Commuter, off-campus, RA and

cheaper meal plansu Books & Supplies Options

Used or online dealsu Tax Credits uu Scholarship Searching u


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Cost Cutting Ideas

Tax Credits & Deductions: Publication 970

American Opportunity Credit Could reduce Federalincome tax by $2,500 for tuition, fees and related

expenses Lifetime Learning Tax Credit- Possible tax credit of

20% of the first $10,000 paid for qualified tuition

and related expenses

Tuition & Fees Deductions- May reduce incomesubject to tax by up to $4,000

Student Loan Interest Deduction- May be able todeduct up to $2,400 in interest paid yearly


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Additional Resources

Resources Online

College Searches Scholarships College Tours Podcasts Webinars Loans Newsletter Tax Deductions Seminar Dates And much more

Seminars


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Register forEVENTS

Seminars

FinancialAid101

ThursdayJanuary5,20127:00-8:30pm

AAARocklandBranch900HinghamSt

Rockland,MA02370

FinancialAid101

ThursdayJanuary12,20127:00-8:30pm

AAAWorcesterBranch25MountainStEastWorcester,MA01606

www.AAA.com/register

OR

1-888-422-2536


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www.AAA.com/FinancialAid

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Email Fin Aid PDF