WHAT YOU NEED TO WHAT YOU NEED TO KNOW ABOUT KNOW ABOUT
FINANCIAL AID FOR FINANCIAL AID FOR 2011-20122011-2012
National Association of Student Financial Aid Administrators
&Slippery Rock University of Pennsylvania
Present…
What is Financial Aid, and Where Does it Come From?
What is It? Financial aid is funds provided to students and families to help pay for postsecondary educational expenses
What Are the Sources?Federal, State, Schools/Institutions, Private Organizations and Agencies
What Are the Types?Gift Aid (Scholarships, both need & non-need, & Grants) and Self-Help Aid (Loans & Work-Study Employment)
Application Process
Submit FAFSA prior to school’s deadline
Most aid awarded on “first-come, first-served” basis
To ensure maximum consideration for federal, state, and institutional aid, check information from each school to determine: Required application materials at each
FAFSA always. However, scholarship forms?, institutional aid applications? CSS Profile form?
Application deadlines
FREE Application for Federal Student Aid
(FAFSA)
Collects family’s personal and financial information used to calculate student’s Expected Family Contribution
Available in English and Spanish
File FAFSA electronically via FAFSA on the Web (www.fafsa.gov)
If you want to file on paper, you must request a paper FAFSA from the federal processor at 1-800-4FED-AID (1-800-433-3243)
NEW! Option to upload tax return information from IRS beginning in January 2011!
IRS Data Retrieval Tool
While completing FAFSA on the web, applicant may submit real-time request to IRS for tax data; participation is totally voluntary may reduce the number of supporting documents
requested of you by the financial aid office.
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 the web
FAFSA on the Web (FOTW)
Web site: www.fafsa.gov 2011-12 FAFSA on the Web available
on January 1, 2011 FAFSA on the Web Worksheet:
Used as “pre-application” worksheet Questions follow order of FAFSA on the Web
Frequent FAFSA Errors
Failure to sign FAFSA!!! Failure to indicate an interest in loans or
work Incorrect Social Security Numbers Divorced/remarried parental information Income earned by parents/stepparents Untaxed income U.S. income taxes paid Household size Number of household members in college Real estate and investment net worth
FAFSA Processing Results
CPS notifies student of FAFSA processing results by:
E-mail notification containing a direct link to student’s on-line SAR if student’s e-mail was provided on paper or electronic FAFSA
Student with PIN may view SAR on-line at www.fafsa.gov
Review results for accuracy; update any “estimated” info with “actual” once available
Do not let more than two weeks go by without checking on the status of your FAFSA (possibly 3 if filing on paper)
CAUTION!
Avoid being charged a fee to file the Free Application for Federal Student Aid Completion and processing of the FAFSA are
FREE If filing via FAFSA on the Web, be sure to go
directly to www.fafsa.gov (also, www.fafsa.ed.gov)
Contact financial aid office for help completing the FAFSA
ERRORS can be COSTLY!
Errors on the FAFSA or supplemental forms may DELAY application processing and result in the LOSS of financial aid funds.
Read the instructions and complete all forms/screens carefully!
Role of the Financial Aid Office
Determines aid eligibility using federal formula
Packages aid depending on availability of funds
Sends award notification including: Award amount for each program for which
student is eligible Disbursement methods and time frames Terms and conditions of each award
Cost of Attendance
Direct costs, such as tuition & fees (and billable room and meals if living on campus)
Indirect costs, such as off-campus housing and food, books, and other educationally-related non-billable charges. May also include such things as transportation, and miscellaneous personal expenses (including documented costs for a personal computer), loan fees, study abroad costs, dependent care expenses, disability-related expenses.
Varies widely from college to college
Expected Family Contribution (EFC)
The amount the family is expected to contribute toward educational costs for the year based on the information reported on the FAFSA. Takes into consideration: Base year (2010) income (student and parent)
Assets (student and parent)
Household Size Number of children in household in college
“Need” Varies Based on “COA”
X
Y
Z
Cost of Expected Family NeedAttendance Contribution (Variable) (Variable) (Constant)
1
2
3
EFC EFC
X
Y
Z
Cost of Expected Family NeedAttendance Contribution (Variable) (Variable) (Constant)
1
2
3
EFC EFC
Independent Student Definition for 2011-12
Born before January 1, 1988;
Graduate or professional student;
Married;
Has children or dependents (other than a spouse) for whom the student provides more than half support;
Orphan or ward/dependent of the court;
Veteran of U.S. Armed Forces or on active duty;
Specific circumstances related to legal guardianship, foster care, emancipated minor, and homelessness; and
Determined to be “independent” by financial aid administrator based on exceptional unusual circumstances
Review FAFSA for specific information regarding many of the options above
GIFT AIDGrants Federal
Pell Grant FSEOG TEACH
State Chafee ETG Grant
Institutional Private
ScholarshipsScholarships Federal
Byrd Honors Scholarship
State NETS
Institutional Private
Pennsylvania State Grant (PHEAA)
Available to Pennsylvania residents The application is the FAFSA PHEAA also sends a “State Grant Form (SGF)”
to first time applicants. Sent via EMAIL to student & parent email addresses from
FAFSA. Links student to the “Account Access” site on PHEAA’s webpage
Deadlines: May 1 deadline applies to those enrolling in a degree program,
and all renewal applicants. Non-renewal applicants may file by August 1 if planning to
enroll in Business, Trade or Technical Schools , Hospital Schools of Nursing or Two-year Terminal Program .
Self-Help Aid
Loans Federal Perkins Loan
(5%)
Federal Stafford or Direct Loans (3.5% -6.8% in 2011-12)
Institutional and Private Loans
EmploymentEmployment Federal Work-Study
State Work-Study Programs
Institutional Work-Study Programs
Federal Direct Stafford Loans
Subsidized: Must demonstrate “need” Unsubsidized: Not based on “need” Basic annual loan limits (combined
subsidized and unsubsidized): $5,500 for freshmen $6,500 for sophomores $7,500 for juniors and seniors $8,500 for each year of grad/professional study
Additional unsubsidized loan eligibility for independent undergraduate, graduate, and dependent students whose parents are denied a PLUS Loan.
www.StudentLoans.gov is site for Loan Counseling and Promissory Notes
Federal Parent PLUS Loans Parent loan program for parents of dependent
undergraduate students Annual loan limit: COA minus other aid Interest Rate: 7.9% Loan fees Repayment begins once loan is fully disbursed.
“Forbearance” option available to postpone repayment while student is in school.
Additional unsubsidized loan eligibility for dependent students whose parents are “denied” a PLUS Loan
www.StudentLoans.gov is site for PLUS Application and Promissory Note
Special Circumstances
Cannot be reported on the FAFSA; the FAFSA creates a “baseline” EFC
Family must send explanation of circumstances to financial aid office at each college
College will review special circumstances May request additional documentation Decisions are final and cannot be appealed to
U.S. Department of Education
Where Do I Go From Here?
Obtain and review admissions and financial aid websites and materials for each school to which you are applying
Meet all application deadlines Complete FAFSA and other application
materials, such as College Scholarship Service’s PROFILE application, if required by school or state agency
Submit all requested follow-up documents
Investigate other sources of funding
Other Resources
College/University Payment Plans
Federal Tax Credits (IRS Publication 970)
State Offices of Vocational Rehabilitation (OVR)
ROTC scholarships or stipends
Bureau of Indian Affairs (BIA) Grants
Corporation for National and Community Service (AmeriCorps) – www.americorps.gov
Veteran’s benefits – www.gibill.va.gov
Avoid Being Scammed
To check legitimacy of scholarship search services or individuals, for information about financial aid scams, and tips to avoid being scammed visit these Web sites:
U.S. Department of Education: www.studentaid.ed.gov/students/publications/lsa/index.html
Federal Trade Commission: www.ftc.gov/bcp/conline/publs/alerts/ouchart.htm
Better Business Bureau: www.bbb.com
Private Scholarship Searches
Free Internet scholarship search engines:
FinAid on the Web: www.finaid.org College Board: www.collegeboard.com FastWeb: www.fastweb.com
Other Possibilities: Local library resources Local businesses and civic organizations Parents’ employers