What You Need to What You Need to Know About Financial Know About Financial

AidAid

TOPICS WE WILL DISCUSS

What is financial aid?

Cost of attendance (COA)

Expected family contribution (EFC)

Financial need

Categories, types, and sources of financial aid

Free Application for Federal Student Aid (FAFSA)

Special circumstances

WHAT IS FINANCIAL AID?

Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses

COST OF ATTENDANCE(COA)?

Includes: Tuition & Fees Room & Board Books, supplies, transportation, and misc. personal expenses

COA Varies widely from college to college

WHAT IS EXPECTED FAMILY CONTRIBUTION (EFC)?

Amount family can reasonably be expected to contribute

Stays the same regardless of collegeTwo components

Parent contribution Student contribution

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

WHAT IS FINANCIAL NEED?

Cost of Attendance

– Expected Family Contribution

= Financial Need

TYPES OF FINANCIAL AID

Scholarships

Grants

Loans

Employment

Gift Aid

Self-Help Aid

GIFT AID: SCHOLARSHIPS/GRANTS

Money that does not have to be paid back

Awarded on the basis of merit, skill, or unique characteristic

Usually awarded on the basis of financial need

SELF-HELP AID: LOANS

Money students and parents BORROWED to help pay college expenses

Repayment usually begins after education is finished

Only borrow what is really needed

Look at loans as an investment in the future

SELF-HELP AID: WORK-STUDY EMPLOYMENT

Allows student to earn money to help pay educational costs

A paycheck; or

Nonmonetary compensation, such as room and board

Student may opt the number of hours to work

SOURCES OF FINANCIAL AID

Federal governmentStatesColleges and universitiesPrivate sourcesCivic organizations and churchesEmployers

STATE OF KANSAS SCHOLARSHIPS AND GRANTS

Kansas Comprehensive Grant

Kansas State Scholarship

Kansas Ethnic Minority Scholarship

Career Technical Workforce Grant (formerly the Kansas Vocational Scholarship)

Kansas Career Work Study Program

Military Service Scholarship (FY 08)

KBOR Website: https://sfa.kansasregents.org/finaid/login.jsp

FEDERAL GOVERNMENT

Largest source of financial aid

Aid awarded primarily on the basis of financial need

Must apply each year using the FAFSA

FEDERAL STUDENT AID PROGRAMS

Federal Pell Grant Federal Supplemental Educational Opportunity Grant (FSEOG)

Federal Perkins Loan Federal Work-Study (FWS)

Subsidized and Unsubsidized Federal Direct Student Loans (Direct Loans)

PLUS Loans

FEDERAL PELL GRANT

Awarded amount based on EFC and enrollment status

Generally awarded to undergraduate students only

Maximum award for 2014-2015 = $5,730

FSEOG (FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT)

Annual award amounts vary between school from $100 to $4,000 a year

Students with the lowest EFC’s must be awarded first

Priority goes to Federal Pell Grant recipients

FEDERAL WORK STUDY (FWS)

Provides part-time employment while students are enrolled

Employment may be on or off campus

Even if you don’t qualify for FWS you may still be able to have an on campus job!

Inquire about jobs at your college’s Student Employment Office

FEDERAL PERKINS LOAN

Priority to students who show exceptional need

Interest rate: 5% fixed

Nine month grace period, repayment may be up to 10 years

Deferment and cancellation provisions available for qualifying employment

Maximum annual award $4,000 for undergraduate students $6,000 for graduate students

FEDERAL DIRECT LOANS

Subsidized must demonstrate need U.S. Department of Education will pay (subsidize)

the interest that accrues while in school

Unsubsidized not based on need most everyone can qualify

DIRECT LOANS – ANNUAL LOAN LIMITS

Annual Loan Limits (combined subsidized and unsubsidized)

Classification Dependent Independent Freshman $5,500 $9,500 Sophomore $6,500 $10,500 Each remaining year $7,500 $12,500 Graduate/Professional N/A $20,500

DIRECT LOANS

The current interest rate on 2014-15 Undergraduate Direct loans (subsidized and unsubsidized) first disbursed on or after July 1, 2014 is 4.66%. Each year the interest rate will change based on the market.

Repayment begins after 6 month grace period

Maximum repayment period between 10 and 30 years

PLUS LOANS Parents of dependent undergraduate students

Graduate/Professional students

Repayment begins immediately upon full disbursement but can be deferred upon request

2014-15 Direct interest rate: 7.21% (will change annually based on the market)

If a parent is unable to borrow (denied) a parent PLUS loan, a student may be eligible for additional unsubsidized loan

FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA)

A standard form that collects demographic and financial information about the student and family

May be filed electronically or using paper form Available in English and Spanish

FAFSA

Information used to calculate the expected family contribution (EFC)

Amount of money a student and his or her family may reasonably be expected to contribute towards the cost of the student’s education for an academic year

Colleges use EFC to award financial aid

FAFSA

FAFSA ON THE WEB

IRS DATA RETRIEVAL TOOL

While completing the FAFSA, 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 browser window

Applicant chooses whether or not to transfer data to FAFSA

IRS DATA RETRIEVAL TOOL

Available early February 2015 for 2015–16 processing cycle

Participation is voluntary

Reduces documents requested by financial aid office

IRS DATA RETRIEVAL TOOL

Some will be unable to use IRS Data Retrieval Tool. Examples include:

Filed an amended tax return

No SSN was entered

Student or parent married but filed separately

FEDERAL STUDENT AID PERSONAL IDENTIFICATION NUMBER (FSA PIN)Website: www.pin.ed.gov

Sign FAFSA electronically

May be used by students and parents throughout aid process, including subsequent school years

FAFSA PIN CHANGES

FSA is adopting the best practice of using a username and password instead of personal information

The FSA ID Requires users to enter less info (2 fields instead of 4)

Provides more secure access to user’s information

Links to PIN information during registration Offers self – service capability (name change)

The FSA ID (username and password) will replace PIN for students, parents and borrowers accessing FSA systems starting on 4/25/15.4/25/15.

FAFSA PIN CHANGES

What happens for new user? Registration requests same required information as PIN New users will be directed to the registration page to

create an FSA ID (username and password) similar to today’s PIN creation page

What happens if I have a PIN already? During account creation, user will be asked for their PIN. As long as the PIN information matches their other

information, the account will be linked to the FSA ID account

Will the changes affect a user’s ability to access previous FAFSA submissions?

If the user links their PIN, they will have access to previous FAFSA submissions

Login:

(Student’s Info)

First NameLast NameSSNDate of Birth

34

FREQUENT FAFSA ERRORS

Social Security NumbersDivorced/remarried parental information Income earned by parents/stepparentsUntaxed incomeU.S. income taxes paid Household sizeNumber of household members in college

Real estate and investment net worth

WHAT HAPPENS NEXT…

The Department of Education will notify the student that the FAFSA has been received.

24-48 hours after the FAFSA is complete, the schools listed should receive the information.

The school will notify the student once their award packet is available. Most schools do not start processing until March/April for the next school year.

MAKING CORRECTIONS

Using FAFSA on the Web (www.fafsa.gov) if student has a PIN;

Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or

Submitting documentation to college’s financial aid office

SPECIAL CIRCUMSTANCES RELATED TO PROFESSIONAL JUDGMENT

Cannot be documented using FAFSA

Send written explanation and documentation to financial aid office at each college

College will review and request additional information if necessary

Decisions are final and cannot be appealed to U.S. Department of Education

SPECIAL CIRCUMSTANCES

Change in employment status

Unusual medical expenses not covered by insurance

Change in parent marital status

Unusual dependent care expenses

Student cannot obtain parental information

CAUTION!!!

Avoid being charged a fee to file the FREE Application for Federal Student Aid

Completion and processing of the FAFSA are FREE

www.fafsa.gov

WHERE DO I GO FROM HERE?

Obtain and review admissions and financial aid Web sites and materials for each school to which you are applying.

Meet all application deadlines. Complete FAFSA and other application materials. Submit all requested follow-up documents.

Investigate other sources of aid.

QUESTIONS?