FINANCIAL AID NIGHT

2014 – 2015

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Applying for Aid is a Process

• Finding out how much it “costs” to go to a certain college is a process, not an event.

• It will be toward the end of your senior year when you know exactly what it will “cost” you to attend a particular college(s).

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Senior Year College Process

Apply for admission and merit-based scholarships for all colleges you likeFile the 2014-15 FAFSA by March 10Apply for private, outside scholarshipsFinancial Aid Notification Letters come from colleges,

likely between March 15-April 15Compare your aid offers Make final college decision by May 1 Return all required forms to your chosen college

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Sources of Aid

•Colleges

•State of Indiana

•Federal government

•Schools, churches, clubs, businesses, foundations, parents’ employers, etc.

Types of Aid

•Scholarships - “gift-aid” based on student’s merit

•Grants - “gift-aid” based on financial need

•Student Loans - student repays after graduation •Work-study - campus job

Financial Aid “Package”

• Ultimately, you may have a financial aid “package” that is comprised of many different types of financial aid from several sources.

• Tonight we’ll discuss how to apply for all types of aid from all sources.

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Applying for Admission is the key!

Student must be accepted for admission by the college(s) before any formal offer of scholarship or financial aid is made.

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APPLY FOR MERIT-BASED SCHOLARSHIPS FROM COLLEGES

• These may be based on academics, talents, athletics, or affiliations.

• Follow the steps and deadlines dictated by each college.

• Colleges decide criteria and amounts.

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APPLY FOR PRIVATE SCHOLARSHIPS

• Good info from Guidance Office about these!

• Private scholarships can be funded by community groups, churches, foundations, parents’ employers, business, etc.

• Don’t pay a person or service to do this for you!

• Popular online search tool is www.fastweb.com

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WHAT IS THE FAFSA?

• The Free Application for Federal Student Aid (FAFSA) is a standard form that collects demographic and financial information about the student and family.

• It is the primary application used by colleges to distribute federal, state and college financial aid in the form of grants, loans, and work-study -- NOT just for FEDERAL aid!

• Some colleges may ask you for a supplemental financial aid application, in addition to the FAFSA.

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www.fafsa.gov• Beware of www.fafsa.COM --- They will charge a fee!

Official FAFSA is free.

• File the 2014-15 FAFSA -- NOT 2013-14 (it is for last year)

• Filing by March 10 is a MUST for Indiana residents

• You can direct your FAFSA to multiple colleges at once by listing their code.

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BEFORE YOU BEGIN:

Parent and student PINs may be created at PIN site prior to

starting the FAFSA - recommended

PINs for FAFSA• Student AND one parent must each create a PIN at www.pin.ed.gov

• PIN serves as a “signature” for the online FAFSA; may submit without, but FAFSA will not be fully processed until “signed” with PINs.

• PIN will be needed to change/correct FAFSA; both PINs (student + parent) must be applied each time FAFSA is updated

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“Help” link opens a list of topics to help answer most FAQs. “Help” boxes also found throughout the FAFSA. We will

cover major issues tonight!

GET ORGANIZED BEFORE YOU START!

• Make a “FAFSA folder” before you begin

• Record Student and Parent PINs, passwords

• Later add copies of submission confirmation page, etc., and note corrections you may later make to your original FAFSA

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FAFSA can be done in stages• Student can begin FAFSA and enter all demographic

information; parents can complete their pages at another time

• Each page is saved when completed

• FAFSA can be reopened and continue to be completed prior to submission

• FAFSA can be corrected after submission

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Begin here for initial FAFSA

Access your FAFSA here after first time, whether submitted or just saved. Must

know PIN.

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File the 2014-15 FAFSA

Watch carefully if “Student“ or “Parent” info is needed on each screen.

Help and Hints - lists question numbers and offers detailed explanation.

The system automatically saves the application at the end of each step.

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Most questions

have detailed

help as you go along.

FAFSA will be saved after each click of

“next”

Must correct obvious errors

before going to next page

Dependency Status

• Include parent information on the FAFSA, unless you can officially answer “yes” to one of the questions defining your Dependency Status

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PARENT INFORMATION

• Who is considered a parent? “Parent” refers to a biological or adoptive parent. Grandparents, foster parents, legal guardians, older siblings, and uncles or aunts are not considered parents on this form unless they legally adopted you.

• In case of divorce or separation give information about the parent you live with the most. If your divorced or widowed parent has remarried, your FAFSA household is your custodial parent + stepparent and all who live there and receive support.

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PARENT INFORMATION cont.New Regulation Effective 2014-15

• In the case where legal parents (biological and/or adoptive) are not married to each other and live together, select “Unmarried and both parents living together” and provide information about both of them regardless of their gender. Do not include any person who is not married to your parent and who is not a legal or biological parent.

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Review to determine who should be counted in parents’ household and who should be counted as a college

student

PARENT INFORMATION

• HOUSEHOLD SIZE: When answering “How many people are in your parents’ household?” -- count all siblings who are under 24 years if they live with your parents (or they are away at college) and get at least ½ of their support from your parents. “Support” includes all costs of living in the world. Free shelter is automatically ½ of support. Also include other people if they live in your parents’ home and meet these criteria.

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Income/Financial Section of FAFSA

• Best to complete 2013 taxes as soon as documents available.

• Best to file taxes electronically.

• Best to complete FAFSA after taxes are filed.

• However, OK TO ESTIMATE tax information to meet the March 10 deadline.

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IRS Data Retrieval for Tax info • Beginning late February

• Allows transfer of IRS data into FAFSA.

• May use to initially provide tax info , OR….

• Update later as a “correction” if estimated tax info used when filing FAFSA initially

• May be used for BOTH student AND parent tax information

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Indicate if taxes are “already

completed” or “Will file”

Try to use the IRS Data

Retrieval Tool if

conditions allow.

Otherwise, put tax info in manually and correct later using IRS Data

Retrieval.

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First screen in IRS Data Retrieval Tool will ask you to fill in

filling status and address (must be

exactly as shown on tax return.

If a match is found, it displays the

actual tax numbers.

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1) Check here

2) Then here

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Successful IRS D/R will show messages

on FAFSA

Do NOT change any information that says “Transferred

from the IRS”

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“Disagree” will be the default. Must change to “Agree” to continue.

Student and one parent will “sign” with PIN.

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Short-cut to second child’s

FAFSA

Initial EFC index

displays here.

Colleges will use to calculate

aid.

FAFSA is not officially

submitted until you see Confirmation

page

How much aid did I receive?

• Aid notification does not come from the FAFSA processor.

• Each college listed on your FAFSA will notify you about your financial aid in the spring, as long as you have been admitted

• Aid types and amounts can be different from each college

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FAFSA can be sent to as many as 10 colleges; colleges will offer specific

aid; not the FAFSA processor

VERIFICATION OF FAFSA

• Some FAFSAs are selected for review in a process called “verification.”

• College must collect copies of certain documents before disbursing aid. Must follow college’s instructions to comply.

• Using IRS Data Retrieval assists you in complying with requests for verification of your FAFSA.

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SPECIAL CIRCUMSTANCES

• There is no way to explain special things on the FAFSA. Unusual circumstances must be discussed with a financial aid officer at the college(s) the student is considering.

• Examples include: – Recent job loss– Death of parent in prior or current year– Recent divorce or separation of parents– Large medical bills

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Direct Costs vs. Cost of Attendance

Direct Costs• These are costs that are

billed by the university.

• May include tuition, student fees, room, and meal plan.

• Understand each colleges direct costs and how they may be paid.

“Cost of Attendance”• This is a “budget” figure

against which financial aid eligibility is calculated. Includes direct costs plus allowances for other educational expenses such as books, transportation and personal expenses.

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What is EFC?

• EFC is an index number used by the federal and Indiana government, and colleges to calculate financial aid eligibility.

• EFC is not a dollar amount that you owe. It is an index used to calculate and ration aid.

• “Cost of Attendance” – EFC = NEED

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Cost ($) - EFC = “Need”

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Federal Pell Grant

• Needy students may be offered a Federal Pell Grant – gift aid which is not repaid.

• Amount is often same at different colleges, although prorated for part-time enrollment.

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State of Indiana Grants• FAFSA will load into State’s system – Division of Student

Financial Aid for the Indiana Commission on Higher Education.

• FAFSA must be received by March 10 ! No exceptions!

• 21st Century Scholars is one of the state’s aid programs; also Frank O’Bannon Higher Education (public colleges) and Freedom of Choice Award (private colleges).

• Amounts vary by college and diploma type.

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• http://www.in.gov/sfa

• Create an eStudent Account to view your state aid record

• FAFSA errors (“edits”) must be corrected by May 15 or eligibility is forfeited

State of Indiana Grants, cont.

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Create an “eStudent” account to view your

status for state grants

Federal Direct Stafford Loan

• Annual eligibility, up to maximum of $5,500 will be listed on colleges’ aid offers

• All FAFSA filers are eligible for this loan

• Loan in student’s name

• Student repays loan after college

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Subsidized vs. Unsubsidized Loan Amounts

• Subsidized portions do not accrue interest during college. Maximum subsidized is $3,500.

• Unsubsidized portions accrue interest during college. Current fixed rate is 3.86%.

• Sub vs. Unsub amounts may vary by college

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How will you pay your balance?

• Understand how much you will owe the college after all financial aid has been subtracted

• Understand the ways you may elect to pay that balance: by the semester, monthly installments, Federal Parent PLUS Loan, additional private loan for student?

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Federal PLUS Loan

• One way that parents may pay the part not covered by aid offered to the student.

• May see this offered by college as aid.

• Follow set-up instructions from your college

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www.studentloans.gov

• Go to studentloans.gov for more information about both federal student/parent loans.

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Senior Year Checklist

Apply for admission and merit-based scholarships for all colleges you likeFile the 2014-15 FAFSA before March 10Apply for private, outside scholarships Financial Aid Notification Letters come from colleges,

likely between March 15-April 15Compare your aid offers Make final college decision by May 1 Return all required forms to your chosen college

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College Goal Sunday• Financial Aid Counselors will be available to

assist with question while you file the FAFSA.

• February 23rd

• www.collegegoalsunday.org

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There is no such thing as a silly question when it comes to

understanding your financial aid!

ASK UNTIL YOU UNDERSTAND

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