OFFICE OF STUDENT FINANCIAL AID

105 SCHMITZ HALLBOX 355880

Phone: 206-543-6101Fax: 206-685-1338

Email: osfa@uw.edu

2015-2016What you need to know about Financial Aid

What is financial aid? Cost of attendance (COA) Expected Family Contribution (EFC) What is financial need Categories, types, and sources of financial aid Applying for financial aid - Free Application for

Federal Student Aid (FAFSA) Special circumstances Release of Information

What is Financial Aid?

Financial aid is funding provided to students and families to help pay for postsecondary educational expenses

General Eligibility Requirements

Must be enrolled/accepted in an eligible program of study

Must be pursuing a degree, certificate, or other recognized credential

Must be a U.S. citizen or eligible non-citizen Must be registered with Selective Service (if

male) over age 18 Must have a valid Social Security Number

What is Cost of attendance (COA)?

Direct costs Indirect costs Direct and indirect costs combined into

cost of attendance Varies widely from college to college

The Cost of Attendance(per year – 2015/2016)

Community College $17,4994 Year Public $27,0964 Year Private $56,481Trade/Career (varies)

Costs are estimates based on resident status, full time enrollment, not living with family.

What’s included: tuition, books, room & board, transportation, and personal expenses.

What is the Expected Family Contribution (EFC)?

Amount family can reasonably be expected to contribute

Stays the same regardless of college Two components

-Parent contribution-Student contribution

Calculated using data from a federal application form and a federal formula

What is Financial Need?

Cost of Attendance-Estimated Family Contribution

Financial Need

Direct Cost: Tuition, Housing (depending on school), Misc. student fees

Indirect Cost: Books/Supplies, Personal, and Transportation

Categories of Financial Aid

Need based

Non-need based

Types of Financial Aid (Sources of Money - Federal, State, and Institutional Money

Awarded to Students Based on Financial Need)

Grants

Work Study

Loans

Scholarships

Grants (Money that does not have to be paid back; usually awarded on the basis of financial

need)

Federal Grants- PELL- SEOG

State Grants- State Need Grant (depends on state

residency)

Institutional Grants- depends on school attending

Work Study (or Student Employment)

Allows student to earn money to help pay educational costs (Work study is a financial aid program based on financial need – while student employment is not based on financial need. Check with school attending)

Loans

Money students and parents borrow to help pay college expenses

Repayment usually begins after education is completed

Only borrow what is really needed

Look at loans as an investment in the future

Stafford Loans

Student is the borrower

Interest rate 4.29% (July 1, 2015 – June 30, 2016)

Loan origination fee 1.073% (July 1, 2015 – Sept. 30, 2015) and 1.068% (October 1, 2015 – June 30, 2016)

Repayment begins 6 months after student drops below ½ time, leaves school or graduates

Deferment – a period in which repayment of the principal balance is postponed https://studentloans.gov

Sign promissory note online at https://studentloans.gov Entrance counseling for first-time borrowers https://studentloans.gov

Subsidized vs. UnsubsidizedStafford Loan

Subsidized Loan-Need based-Interest paid by government while student

attending school ½ time or more

Unsubsidized Loan-Non-need based-Government does not pay interest-Students have option of paying interest

while attending school or have it added to the principal

PLUS - Parent Loan for Undergraduate Students

Non-need based

Interest rate 6.84% (July 1, 2015 – June 30, 2016)

Loan origination fee 4.292% (July 1, 2015 – Sept. 30, 2015) and 4.272% (October 1, 2015 – June 30, 2016)

Repayment options: - Begins 60 days after the final loan disbursement for the period of

enrollment for which you borrowed- Make interest payments and defer principal until after the student

is no longer enrolled, with 6 month grace period

Complete PLUS Request Process at https://studentloans.gov, then credit check will occur

Funds electronically transferred to the student’s account unless parent indicates otherwise

PLUS Denial

If the PLUS loan is denied (due to adverse credit) by the Loan Origination Center (LOC), the student may be eligible for additional Unsubsidized Stafford Loan

- Additional amount will depend upon a student’s grade level and unmet cost of attendance

Scholarships

Begin process at least one academic year prior to need. Applications are generally requested 2-3 months before deadline. Why are they looking for funding – to pay tuition, travel or study abroad, or public service project?

What kinds of sources are available:

Need-Based Scholarships

Merit-Based Scholarships

Local Scholarships

National Scholarships

Scholarship Applications

Scholarships are self-search—check with HS Counselor, Library and college search services (www.fastweb.org or theWashBoard.org).

Don’t pay for scholarship searches!

Some schools also require scholarship applications.

Scholarships

Timeline:

Plan ahead and meet with mentors during Summer and Autumn Quarters, keeping in mind that deadlines generally occur during

Winter Quarter and interviews in the Spring.

Free online scholarship resources

fastWeb www.fastweb.com

theWashBoard www.theWashBoard.org

College Board www.collegeboard.com

College NET www.collegenet.com/about/index.html

Applying for Aid

All schools use the Free Application for Federal Student Aid (www.fafsa.ed.gov)

Some schools use the CSS Profile form (fee attached).

Some schools use their own forms.(**Please contact the Financial Aid Office at the schools of interest for additional information)

FAFSA Application

May be filed at any time during an academic year, but no earlier than the January 1st prior to the academic year for which the student requests aid

For the 2016-2017 academic year, the FAFSA may be filed beginning January 1, 2016

Please check with each individual school for FAFSA priority filing deadline dates

File online at: www.fafsa.ed.gov• If you and/or your parent do not know your PIN,

you can get help at www.pin.ed.gov

FAFSA on the Web

Good reasons to file electronically: Built-in edits to prevent costly errors Skip logic allows student and/or parent to skip

unnecessary questions More timely submission of original application and

any necessary corrections More detailed instructions and “help” for common

questions Ability to check application status on-line Simplified application process in the future

IRS Data Retrieval Tool

While completing the FAFSA on-line, applicant may submit real-time request to IRS for tax data

IRS will authenticate taxpayer’s identity If match found, IRS sends real-time results to applicant

in new window Applicant chooses whether or not to transfer data to

FAFSA on-line Available February 1, 2016 for 2016-17 processing

cycle Participation is voluntary and could reduce documents

requested by a financial aid office

What happens after you apply?

The federal processor will send the information electronically to the schools you specify on the FAFSA

Receive a Student Aid Report (SAR) Review the SAR Respond to any requests for additional

information Each college determines your eligibility Each college will send an award

letter/notice to you

Award Process

Award letters for freshmen typically sent in February, March and April

Award letter will list type and amount of aid student will receive

Most likely a paper letter but could be electronic also

Award may be preliminary pending additional information

May need to sign and return to reserve award

Comparing Award Letters

Each school offers the student an award letter—types and amounts of aid

Compare total cost (not just tuition) Compare tuition Compare borrowing level and project over

4 years Ask if scholarship can be renewed.

The Husky Promise(University of Washington)

Guarantees that full tuition will be covered by grant or scholarship support if you are a low or lower middle-income student.

[Other colleges/universities may offer a similar program – please check individually]

Husky Promise (continued)

Be a Washington State Resident. Meet current eligibility criteria for either the

Pell Grant or State Need Grant programs. Submit the Free Application for Federal

Student Aid (FAFSA) by the UW’s priority filing date of February 28 for the following academic year.

Enroll full-time. Be pursuing a first bachelor’s degree. Maintain satisfactory academic progress while

at the University.

Revisions to Eligibility

Cannot be reported on the FAFSA, but written explanations must be sent to each college/university

Financial Aid Offices can review changes in parent & student income

Financial Aid Offices can review unusual expenses for the student and parent

Unemployment, job layoffs, high medical expenses are typical but not the only adjustments we make

Dependent Student

Under the age of 24—requires parents information unless married, or have your own children, or are a veteran or on active duty, or an orphan, or in graduate school.

Additional items may change dependency status: emancipated minor; legal guardianship; homeless; emergency shelter or transitional housing (please review FAFSA instructions).

If your parent is either single or widowed, answer the questions about that parent only

Dependent Student (continued)

If your parent of record for the FAFSA has remarried, step-parent information is required for the application.

If your parents are divorced or separated, answer the questions about the parent you lived with more during the past 12 months.

What if you can’t get parent information?

Tax Credits

The American Opportunity Tax Credit (up to $2,500 for four years) is available for all students attending at least part-time, with a head of household income of less than $90,000 or a married-filing jointly income of up to $180,000. As much as 40% ($1000) can be received as a refund.

The Lifetime Learning Credit (up to $2,000) is available for any student or parent paying qualified education expenses, but cannot be taken at the same time as the American Opportunity Tax Credit. There is no minimum enrollment requirement.

1098-T forms list all tuition and related fees, scholarships, fellowships, and grants. Colleges/universities will have these documents available by the end of January.

Additional information on Tax Benefits for Education can be found at http://www.irs.gov/pub/irs-pdf/p970.pdf

Release of Information

Remember, a student’s financial aid record and account is their private information. In accordance with U.S. privacy laws, University offices cannot give out information to parents or any 3rd party without the student’s written permission – even if they are paying tuition for the student. Please check with each school to find out their individual process.

References

Internal Revenue Service (2015, November 1). Publication 970: Tax benefits for education. Retrieved from http://www.irs.gov/pub/irs-pdf/p970.pdf.

National Association of Student Financial Aid (2015, November 1). About financial aid. Retrieved from http://www.nasfaa.org/about_financial_aid.

University of Washington (2015). Office of Student Financial Aid.