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Financial Aid 101Financial Aid 101
Jill HaleyIndependent College Counselor
To Do List
Jan 1 2013-Fill out the FAFSA
AgendaAgenda
Overview of Financial Aid
FAFSA Basics
Financial Aid ToolsCal Grants
Will not discuss specific financial questions related to assets on the FAFSA
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HandoutsHandoutsFAFSA on the Web worksheet-
2013-14
Financial Aid Shopping Sheet
List of resources
College Admissions Newsletter
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What is Financial Aid?What is Financial Aid?Money to pay for college Grants- free money that you don’t have to pay back. Usually federal or state moniesScholarships- free money- private or corporate Work-study- paid jobs at collegeLoans- must pay back. Available to students and/or parents
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Who can get student aid?Who can get student aid?
U.S. citizen or permanent residentHigh school graduate/GED holderValid Social Security numberMales registered for Selective
Service- No history of drug-related offenses
(student)
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Need-Based/Merit Based Need-Based/Merit Based AidAidNeed based aid is financial support
given to students whose families cannot afford the total cost of college. Usually in the form of grants, scholarships and loans.
Merit based aid is aid given to students because of exceptional talent, high GPA or athletic ability. Usually in the form of scholarships.
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3 Important Terms3 Important Terms
FAFSA- document used to determine
financial aid eligibility
COA- cost of attending specific colleges
EFC- estimated family contribution- the amount of money the family is expected to contribute
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FAFSAFAFSA
FAFSA- Free Application for Federal Student Aid- www.fafsa.gov.
Be careful of fraudulent sites that ask for money.
www.FAFSA.ed.gov is free!
Good News- FAFSA getting more user- friendly
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FAFSAFAFSADocument that is filled out using financial
information from parent(s) and student.Used to apply for federal, state grants,
work-study and loans. Used by most colleges to determine
financial aid both need- based and merit.
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FAFSA On The Web FAFSA On The Web WorksheetWorksheet
FILL OUT AHEAD OF TIME
SAVES TIME WHEN FILING
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FAFSA and CollegeFAFSA and College
FAFSA information is sent to each college’s financial aid office that you select on the form
Can only list 10 colleges- make sure a CA college is in top 3
Once you receive your Student Aid Report (SAR) form back an go in and update list with other colleges
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Philosophy of Financial AidPhilosophy of Financial Aid
Students and their families have the primary responsibility to pay for postsecondary education expenses if they can.
.
EFC is the measure of a family’s financial strength as determined by the information on the FAFSA
EFC is used to determine the student and parent ability to contribute towards the student’s cost of attendance at college(s)
Expected Family Contribution (EFC)
Cost of Attendance (COA)
Note: Costs vary from institution to institution
Standard Costs Optional Costs
Tuition and feesTransportation
Room and board Study-abroad
Books and Supplies Disability-related services
Calculating EligibilityFor Need-Based Aid
How do I apply for student aid?How do I apply for student aid?
• File the FAFSA on or after Jan.1 but as early as possible to meet all deadlines.
• Based on income form January 1, 2012-December 31, 2012
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How do I apply for student aid?How do I apply for student aid?
2. Use FAFSA on the Web Worksheet to get ready.
• Get worksheet at www.studentaid.ed.gov/worksheet
• Find a checklist of documents you need at www.studentaid.ed.gov/pubs (“What Information Do I Need When I Fill Out the FAFSA?”).
• Fill out worksheet to prepare your answers.
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How do I apply for federal student aid?How do I apply for federal student aid?
1. Get a PIN at www.pin.ed.gov• Parents and students will both need a PIN • This is your electronic signature
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FAFSA on the WebFAFSA on the Web
Reasons to file electronically:
Faster processing
Built-in edits prevent costly errors
Skip logic allows student and/or parent to avoid unnecessary questions
Use Internal Revenue Service (IRS) data retrieval
Can have sent to 10 colleges (paper app only 4)
Watch for response by e-mail, from [email protected]
Double-check your information online at www.fafsa.gov (use your PIN to log onCorrect any mistakes and update any information as necessary
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FAFSA information is sent to each FAFSA information is sent to each financial aid office of the colleges you financial aid office of the colleges you indicate on the FAFSA.indicate on the FAFSA.
Watch for e-mails or letters from the schools you are considering
• Give the schools any additional information they ask for
• Meet all deadlines or you could miss out on aid!
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What Happens Next?What Happens Next?
After you receive your acceptance at a college you will receive a financial aid award letter.
Once you decide which school to attend, keep in touch with the financial aid office to find out when and how you will get your aid.
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Great ToolsGreat ToolsFinancial Aid Shopping Sheet
FAFSA4caster
College Net Price Calculator
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Financial Aid Shopping Financial Aid Shopping SheetSheetThe Shopping Sheet will
standardize award letters, making it easier to comparison shop and provide students with key information.
Goal is to provide transparency in the total cost of attendance to families
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EFC Remains the SameEFC Remains the SameStudent A- CSU Chico
COA- $24,444 – EFC- $14,000=$10,000 eligibility for aid
Student A- Santa Clara UniversityCOA= $55,830-EFC-$14,000=
$41,830 Eligibility
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How much student aid can I get?How much student aid can I get?For early estimate, use FAFSA4caster:
Go to www.fafsa4caster.ed.gov
Enter financial information and get an estimate of your EFC.
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Net Price CalculatorNet Price CalculatorAlso can use each Net Price
Calculator.
Each college is required to post.
Estimate of what your net price will be at each college.
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FAFSA TipsFAFSA Tips
Student Demographics- both Student Demographics- both student student andand parents must fill out parents must fill out financial informationfinancial information
Check for:Name matches student social security cardTransposed numbersIncorrect data on numeric fields
Tip: Use the Help & Hints section on each page.
Simple mistakes can delay determining
eligibility for aid
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Dependency DeterminationDependency Determination
“No” to all questions:
makes the student “dependent”24 and under considered a dependentMust submit parent information
Parent InformationParent InformationParent(s) must answer demographic and financial information to determine ability to contribute to student’s education expenses
If married- both parents finances are reported
Divorced or SeparatedDivorced or SeparatedProvide parent’s information for the
parent(s) with whom the student lived with most during the last 12 months
If the student spent equal time with both parents, use the information for the parent who provided the greatest amount of financial support for the student
Remarried ParentRemarried Parent
Provide information about the parent and stepparent regardless of:
◦ Agreement of “nonsupport”◦ Prenuptial agreement◦ Divorce decree designating tax filing exemptions
Note: parent claiming the student on the tax return need not
be the parent required to provide data on the FAFSA
Parent InformationParent Information Do not provide parent information forFoster parent(s)
◦Student is automatically considered an independent student
Grandparents, other relatives or legal guardian(s)
◦Colleges may use professional judgment to allow the student to file as an independent student
Parent InformationParent Information For upcoming yearHousehold Size: Parent provides more than 50% financial support
Number in College: Student enrolled at
least half-time
IRS Date TransferIRS Date Transfer
IRS Data TransferTransfer information directly from the IRS
◦ Requires PIN
◦ Available January 31st
◦ After filing tax return
Special CircumstancesSpecial Circumstances
If students and families have unusual circumstances, contact the financial aid office at the college they plan to attend; the office will advise them on how to proceed.
CAL GrantsCAL GrantsOnly for California colleges- must
fill out FAFSA and GPA verification form.
Submit the FAFSA by March 2nd
School will submit GPA verification if student turned in their Senior Contract
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CAL GrantsCAL Grants
Provides tuition and college fee assistance at 2 and 4 year colleges.
Can only be used at California Colleges
Have GPA requirementsCal Grants are Free money!!!
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Questions?Questions?
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• Need help? Use call 1-800-4-FED-AID for FAFSA.
• Don’t forget to save or print confirmation page.
Who can get other kinds of financial aid?Who can get other kinds of financial aid?
Colleges, and private scholarships have their own eligibility criteria.
Be sure you know what you need to do to qualify.
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CSS ProfileCSS ProfileSome colleges may require an additional
form besides the FAFSA
The CSS Profile- ask information of both parents regardless of marital status.
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LoansLoansMoney students and parents borrow to help
pay college expenses
Repayment usually begins after education is finished
Only borrow what is really needed
Most student financial aid packages have some loans
LoansLoansMust fill out FAFSA for most loans
Students should access subsidized loans first. Have lower fixed interest rates( 3.4%) and offer flexible repayment options
Parents can take out PLUS loans (7.9%).
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SummarySummary
Before Jan 1, 2013◦Apply for a PIN number for FAFSA◦Gather all information needed for FAFSA (FAFSA
worksheet)◦Narrow down college choices- ◦Check to see if a CSS Profile is needed
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SummarySummaryAfter January 1, 2013
◦Complete FAFSA◦Review your FAFSA information (SAR Report) for
accuracy when it is available◦Revise income information once tax results are in
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SummarySummaryAdd or delete colleges to your FAFSARespond to all inquiries from college financial aid
officesOnce admitted to a college you will receive a
financial aid offer. Read and compare carefully.Respond to all deadlines (usually May 1st)Contact the college you will be attending to earn
about additional scholarship opportunities
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Thanks for comingThanks for coming
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Contact information:
Jill Haley
Advantage College Consulting
www.getyouintocollege.com
Phone: (530) 470-9103• e-mail:[email protected]
