FINANCIAL AID 101: HOW DO WE PAY FOR COLLEGE? Presented by:
Midwestern State University Financial Aid Office
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Money from a source other than the family to assist with the
cost of attending college, which includes: Scholarships Grants
Loans Employment Tuition Exemptions What is Financial Aid?
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FAFSA Institutional Financial Aid Application Admissions
Application Scholarship Application TASFA for Texas residents who
do not meet eligibility to file FAFSA ?? Numerous
Applications??
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COMMON FINANCIAL AID TERMS FAFSA Free Application for Federal
Student Aid SAR Student Aid Report EFC Expected Family Contribution
COA - Cost Of Attendance = cost of education, or budget, per
academic year Title IV School Code MSU is 003592; other school
codes available from your counselor or the FAFSA online search
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What is the FAFSA? THE application for federal aid A standard
form that collects demographic and financial information about the
student and family Information used to calculate the Expected
Family Contribution or EFC Students must complete FAFSA for each
school year Colleges may set FAFSA filing deadlines
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FAFSA on the Web Website: www.fafsa.govwww.fafsa.gov 201314
FAFSA on the Web available NOW FAFSA on the Web Worksheet: Used as
optional pre-application checklist Questions follow order of FAFSA
on the Web Signature page needed OR Electronic Signature Option
w/PIN
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Warning Signs of Financial Aid Fraud *NEVER pay a fee to
complete or process the FAFSA IT IS FREE!! * If filing FAFSA on the
Web, go to www.fafsa.gov (NOT.com!)www.fafsa.gov * Contact any
Financial Aid Office if you need help completing the FAFSA * Avoid
organizations that say they can help locate more aid and then
charge YOU a fee!!!
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PIN Registration Website: www.pin.ed.govwww.pin.ed.gov Not
required, but speeds processing May be used by students and parents
throughout aid process, including subsequent school years Ability
to retrieve PIN immediately or via email
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IRS Data Retrieval Tool Students completing a 201314 FAFSA are
STRONGLY ENCOURAGED to utilize IRS Data Retrieval Tool beginning
ON/AFTER February 25, 2013! Student/parent will transfer 2012
income tax return onto the 2013-14 FAFSA while completing the
application. Must allow 5-7 business days after you/parent
electronically file your tax return (but not before February 25)
before you will be able to download tax return information onto the
2013-14 FAFSA application. If you/parent file a paper tax return,
you must allow up to 30 business days before you will be able to
download tax return information onto the 2013-14 FAFSA
application.
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IRS Data Retrieval Tool Students NOT using the IRS DRT will
most likely be selected for verification and, if selected,
student/parent MUST submit an IRS TAX RETURN TRANSCRIPT to the MSU
Financial Aid Office. NOTE: copies of signed tax returns will no
longer be accepted. To request an IRS Tax Return Transcript,
you/parent will be required to provide the following information: *
Social Security Number or IRS individual taxpayer identification
number) *Date of birth *Street Address and Zip Code To request a
free copy of your/parent IRS Tax Return Transcript:
www.irs.gov
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Frequent FAFSA Errors *Social Security Numbers are not correct
*Divorced/remarried parental information *Income earned by
parents/stepparents is inaccurate *Untaxed income *U.S. income
taxes paid *Household size *Number of household members in college
*Real estate and investment net worth
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Tips for the FAFSA Apply EARLY in the Spring, around 1 st of
February of each year, if possible Know your schools priority
deadline date; MSU = March 1 st for Fall/Spring File Tax returns
early remember, we encourage you to use the IRS Data Retrieval Tool
to download your tax information onto the FAFSA; otherwise, you may
be selected for verification.
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Professional Judgment Varies from college to college
Documentation By authority of the financial aid administrator
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FAFSA Processing Results Central Processing System (CPS)
notifies student of FAFSA processing results, such as summarized
FAFSA information and students EFC, via a Student Aid Report (SAR):
E-mail notification containing a direct link to students on-line
SAR if students e-mail was provided on paper or electronic FAFSA
SAR Acknowledgment if filed FAFSA on the Web and students e-mail
address was not provided Paper SAR if paper FAFSA was filed and
students e-mail address was not provided Student with PIN may view
SAR on-line at www.fafsa.gov
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What is the Expected Family Contribution (EFC)? *The amount of
money a student and his/her family may reasonably be expected to
contribute toward the cost of education for an academic year *Stays
the same regardless of college you choose, but is calculated with
new information each new year you file the FAFSA *Calculated using
data from the FAFSA and a pre-set federal formula
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What is Cost Of Attendance (COA)? Direct costs tuition, fees,
books, room & board Indirect costs transportation, personal
care, child care, loan fees Direct and indirect costs combine into
cost of attendance, or budget Varies widely from college to
college
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MSUs Cost of Attendance Annual Estimate 2012-2013 Off Campus /
In Dorm: Tuition and Fees $7,632 Books and Supplies 1,200 Room
& Board 7,088 Transportation 1,872 Personal/Miscellaneous 1,598
TOTAL $19,390 With Parent: Tuition and Fees $7,632 Books and
Supplies 1,200 Room & Board 3,157 Transportation 1,872
Personal/Miscellaneous 919 TOTAL $14,780
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Cost of Attendance Estimates Two-Year College$13,294 Private
University$51,610
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Definition of Need Cost of Attendance (COA) - Expected Family
Contribution (EFC) ________________________________ = Financial
Need
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General Eligibility Requirements *Be enrolled as a regular
student in a degree or certificate program *Not be simultaneously
enrolled in an elementary or secondary school while enrolled in
postsecondary school *Provide a valid social security number *Be
registered with Selective Service *Maintain satisfactory academic
progress *US citizen, national, permanent resident or eligible
non-citizen *Have a high school diploma or its equivalent
(CONTD)
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General Eligibility Requirements (continued) Have a high school
diploma or its equivalent, or home school credential * Recognized
equivalent includes: - GED certificate - Certificate recognized by
the state as an equivalent to a diploma - Academic transcript
showing successful completion of at least a 2-year program fully
acceptable toward a bachelors degree - Documentation that the
student excelled in high school (ie; Doogie Howser syndrome)
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Undocumented Students HB 1403 (SB 1528) This law permits some
non-citizens to be classified as Texas residents for financial aid
and admission purposes. May receive In-state tuition Texas
Financial Aid (some programs)
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Undocumented Students HB 1403/SB 1528 Eligibility Criteria Live
in Texas the 36 months leading up to high school graduation or the
completion of a GED; and Lived in Texas the 12 months prior to
enrollment; and If they are not currently US citizens or Permanent
Residents, completed an affidavit indicating their intent to apply
for Permanent Resident status as soon as they are eligible to do
so. Must register with selective service (males only) Application
Submit a Texas Application for State Financial Aid (TASFA) and
submit to the financial aid office at the institution for
processing www.collegefortexans.com
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Scholarships Academic Talent Athletic Community Groups Free
Money!!!! Does not have to be repaid
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Scholarship Search Engines Always use free searches such as:
www.finaid.org www.collegeboard.com www.fastweb.com
www.gocollege.com www.FederalStudentAid.ed.gov
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Notify the Financial Aid Office of Scholarships Received You
must advise the Financial Aid Office of any scholarships/benefits
you may receive in 2013-14; otherwise, adjustments may be necessary
to your award(s) if the Financial Aid Office is made aware of any
scholarship(s) or additional benefits you will receive AFTER your
award(s) are determined. MSUs Additional Benefits/Expenses form
must be completed and returned to the MSU Financial Aid Office
(available at http://finaid.mwsu.edu/financial-aid-forms.asp)
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Grants and Workstudy Federal Grants Workstudy State Grants
Institutional Grants Free Money!!!! Does not have to be repaid
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Federal Grants (Based on Expected Family Contribution(EFC))
Pell Grant = 2012-13 ranges from $602 - $5550 per year for a
full-time student. 2013-14 Pell ranges are not known yet. Pell
amounts will be reduced for less-than-full-time students. SEOG =
Schools receive limited amount of money; funds exhausted early.
Must be Pell-eligible to receive SEOG funds.
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Federal/State Workstudy Need based work program Typically pays
minimum wage, but wage varies at college/university Student allowed
to work up to 20hrs/week Typically on-campus jobs Can exclude this
income on following years financial aid application Apply early!!
Jobs go fast!
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State Grants TEXAS Grant ( Toward Excellence, Access &
Success ) Need-Based Award Texas Resident Completed the Recommended
or Distinguished Achievement Program in high school Have an EFC of
4000 or less Enroll at least three-quarter-time in an undergraduate
or certificate program within 16 months of HS graduation Not been
convicted of a felony or crime involving a controlled substance
Availability of Funds
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TEXAS Grant (continued) In addition to the basic eligibility
requirements, students must meet requirements in at least 2 of the
following 4 areas for priority consideration: * Advanced Academic
Program 12 hours of college credit (dual credit or AP credit),
complete the Distinguished Achievement Program (DAP), or complete
the International Baccalaureate Program (IB). * TSI Readiness Meet
the TEXAS Success Initiatives (TSI) assessment thresholds or
qualify for an exemption. * Class Standing Graduate in the top 1/3
of the HS graduating class or have a B average. * Advanced Math
Complete at least one math course beyond Algebra II.
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Encourages students who graduate in the top 10% of high school
class to attend Texas public universities Texas Resident Must
enroll full-time Complete Recommended or Distinguished Achievement
Program in high school Award is $2000 per year (Fall award ONLY)
Must submit FAFSA or TASFA and have a valid SAR on file at the
university by March 15, 2013 (FAFSA or TASFA submitted after March
15 will be awarded on a first-come, first-served basis until
available funds have been spent) Top 10% Scholarship (sponsored by
Coordinating Board)
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MSUs Mustangs Guarantee Program Beginning freshman student OR
new Transfer student Pell Grant eligible student who is a Texas
Resident Must submit FAFSA and have a completed financial aid file
(including all verification documents) on/before May 31 (for Fall
semester) or December 15 (for Spring semester) Familys combined AGI
is $50,000 or less Covers remaining balance of tuition &
mandatory fees (for 15 credit hours or more) that are not paid by
other grants, scholarships, exemptions, benefits or waivers
Maintain a minimum of 15 credit hours through 12 th class day for
each Fall and Spring semester Complete at least 12 hours AND
maintain a cumulative grade point average of 2.5 at end of EACH
fall and spring semester. Available up to 4 academic years
(excluding summer terms)
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Student Loans Federal Loans State Loans Alternative/Private
Loans Must Be Repaid!!!!
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What is a Student Loan? Money students and/or parents borrow to
help pay educational expenses Repayment usually begins after
education is finished Look at loans as an investment in the future.
Research shows that obtaining a higher education can increase what
an individual earns over a lifetime. Student loans are the top
source of financial aid
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Federal Direct Loans Subsidized Unsubsidized Need-based Not
need-based Interest: Fixed 6.8% Student responsible for all
interest that accrues (subject to change on July 1, 2013) Repayment
begins 6 months after graduation or dropping below half-time
enrollment For Direct loans, the lender is the Department of
Education Interest: Fixed 3.4% for loans disbursed after July 1,
2012 Government pays while enrolled at least half time (subject to
change on July 1, 2013)
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Annual Loan Limits $3,500 Freshman $4,500 Sophomore $5,500
Junior and Senior All students can request an additional $2000
Unsubsidized Stafford loan annually
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Federal Direct Parent (PLUS) Loans Loan in Parents Name/SSN
Based on parents credit-worthiness Current Fixed Interest Rate =
7.9% Payments begin 60 days after 2 nd disbursement The parent,
upon his or her request, can defer payments on a PLUS loan if the
student is enrolled at least half time.
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STATE & ALTERNATIVE/PRIVATE Student Loans STATE Texas
B-On-Time Loan College Access Loan ALTERNATIVE/PRIVATE
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Texas B-On-Time (BOT) Loan A STATE loan which provides eligible
Texas students with no-interest loans: Need established by filing
FAFSA Texas Resident Completed the Recommended or Distinguished
Achievement Program in high school Enroll full-time Availability of
funds is determined by the Texas Higher Education Coordinating
Board Eligible for annual renewal, pending availability of funds
Loan forgiveness provisions are available (CONTD)
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BOT Loan Forgiveness Requirements: If student graduates on time
with a 3.0 GPA or higher, the B-On-Time loan will be forgiven The
BOT loan has a 15-year repayment period or a minimum monthly
payment of $75.00 and a 0% interest rate. To Graduate on-time a
student must Finish a 4 year degree in 4 years Finish a 5 year
degree in 5 years Finish a 2 year degree in 2 years, OR Finish a
degree with no more than 6 semester hours beyond what is required
for his/her major
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College Access Loan (CAL) A STATE loan available to Texas
students NOT Need-Based Loan but FAFSA must be filed Texas Resident
Enroll at least half-time Student must have a credit-worthy
co-signor Fixed interest rate is determined by the Texas Higher
Education Coordinating Board; currently, 5.25% Availability of
funds is determined by the Texas Higher Education Coordinating
Board
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Alternative/ Private Loan Private consumer loans Provided
without consideration of financial need Usually a last option after
other more economical sources are exhausted Credit checks are
required Variable interest rate usually VERY HIGH!
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Tuition Exemptions/Waivers * An exemption allows an individual
to enroll in a Texas public institution while paying a reduced
amount of tuition and fees example Valedictorian tuition exemption,
Foster Care exemption, etc. * The State of Texas has authorized
more than 30 exemption programs * Exemptions have different
eligibility requirements * For a complete listing and eligibility
requirements, see www.collegefortexans.com
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Award Notification Process Award notifications usually contain
Types and amounts of aid offered How and when aid will be disbursed
Terms and conditions of offer Students should Accept or decline (if
required) Sign and return (if required) Complete student loan
process (if necessary)
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Evaluating Aid Packages *Biggest is not always best compare to
cost of attendance for each school *Renewable vs non-renewable
scholarships *Terms and conditions of offered loan(s) *Balance work
with academic responsibilities *Types of aid offered Grants Loans
Work-Study
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SHOPPING SHEET Designed to help standardize the way students
costs and types of aid are communicated to students And provides
students/parents with information regarding graduation rates,
default rates and median borrowing rates at the college/university.
MSU will provide the Shopping Sheet to students beginning in the
2013-14 award year.
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Family Educational Rights and Privacy Act (FERPA) The students
rights under FERPA transfer from the students parents to the
student when the student attends a postsecondary institution. A
student must provide written consent before an education agency or
school may disclose personally identifiable information from the
students education records. MSUs Release of Information form:
http://finaid.mwsu.edu/pdf/fao_55.pdf
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MSUs Short-Term Payment Plans Installment Contract Emergency
Tuition/Fee Loan Administered by the MSU Business Office (visit
www.mwsu.edu/busoffice/)
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MSUs Book Loan Available to students whose financial aid refund
check is less than $600 - OR - the student is not receiving
financial aid but needs additional assistance with purchasing
books. Administered by the MSU Bookstore and is available at
http://finaid.mwsu.edu/bookvoucher.asp
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Add/Drop Classes Prior to Official Enrollment date (12 th class
day) = adjustment may be made to financial aid awards After
Official Enrollment date = no adjustment made to financial aid
awards but affects Satisfactory Academic Progress (SAP)
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Monitoring Satisfactory Academic Progress (SAP) NOTE: At MSU,
Financial Aid Warning/Suspension differs from Academic
Probation/Warning/Suspension To retain eligibility, financial aid
recipients must show academic progress in your program of study.
The following will be monitored at the end of every semester: 1.
Cumulative Grade Point Average (GPA) 2. Maximum Time Frame for
Program of Study 3. Successful Credit Hour Completion Rate MSUs
current SAP rules are available at
http://finaid.mwsu.edu/sap.asp
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Monitoring Satisfactory Academic Progress (SAP) In addition to
maintaining SAP standards, students who receive certain
grants/scholarships may be required to maintain standards specific
to those grants/scholarships. For example: TPEG Grant and GOLD
Scholarships: - requires 69% completion rate - 2.00 semester grade
point average, if undergraduate - 3.00 semester grade point
average, if graduate Academic Scholarship requirements vary by
program; be sure you are aware of the requirements required to keep
your scholarship.
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Helpful Web sites www.mwsu.eduwww.mwsu.edu Midwestern State
University http://finaid.mwsu.eduhttp://finaid.mwsu.edu MSU
Financial Aid Office www.college.govwww.college.gov - US Department
of Education website to assist students with plans to attend
college www.CollegeForTexans.comwww.CollegeForTexans.com
state-specific information about higher education, financial aid
www.studentaid.ed.govwww.studentaid.ed.gov - federal site regarding
student financial aid
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Page 1 contains important instructions. Please read
carefully.
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Section 1 General student information: Name Social Security
Number Citizenship Marital status Selective Service registration
status Drug conviction status Parents educational background
Section 2 Students dependency status: If all No responses, student
is dependent If Yes to any question, student is independent
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Section 3 Data for PARENTS of dependent students: Dislocated
worker status Financial data for parents of dependent students: Tax
filing status Adjusted Gross Income (AGI) for 2012 Income earned
from work Receipt of benefits from certain federal means- tested
programs Additional financial information Untaxed income
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Section 4 Financial data for STUDENT (and spouse) Tax filing
status Adjusted Gross Income (AGI) for 2012 Income earned from work
Dislocated worker status Receipt of benefits from certain federal
means- tested programs Additional financial information Untaxed
income
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Evaluations Please take time to complete an evaluation We will
use your comments and suggestions to improve future training and
our outreach efforts THANK YOU!
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Contact Information: Midwestern State University Financial Aid
Office 3410 Taft Blvd. Wichita Falls, TX 76308 (940) 397-4214
(office) (940) 397-4852 (fax) http://finaid.mwsu.edu/ Email:
[email protected]