Federal Student Aid 101...• Financial aid office has final say (professional judgement) Helpful...
Transcript of Federal Student Aid 101...• Financial aid office has final say (professional judgement) Helpful...
Federal Student Aid 101: Federal Student Aid Programs and the
FAFSA
U.S. Department of Education
Office of Federal Student Aid
January 2016
Today’s Topics
• Federal Student Aid Programs
• FAFSA Process
• College Costs
• Federal Student Aid Resources
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Sources of Money for College
Federal government
State government
Colleges and universities
Private foundations
Employers and private companies
Professional and service organizations
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How Do I Find Scholarships?
• Search for scholarships online
• the U.S. Department of Labor’s FREE scholarship search
• Employer
• The financial aid office at a college or career school
• Federal agencies and State grant agency
• Library’s reference section
• Foundations, religious or community organizations, local
businesses, or civic groups
• Organizations (including professional associations) related
to your field of interest
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There is more than $150 billion available
in federal aid to help students pay for college
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Loan Type Interest Rate
(First Disbursed between
July 1, 2015 and June 30,
2016)
Repayment
Federal Perkins Loan 5% Fixed 9 months after school
Federal Stafford/
Direct Loan
Undergraduate
Subsidized
4.29% Fixed
Unsubsidized
4.29% Fixed
6 months after school
Federal Direct PLUS
Loan (Parents,
Graduate &
Professional)
6.84% Fixed Direct Lending
Schools
May be deferred until 6 months
student drop ½ time or 60 days after
loan is fully disbursed
Interest Rates for Federal Loans
• Loans are an investment
• Only borrow what you need
• Private loans are an option but may
have higher interest rates
• Repayment doesn't start immediately
Loan Tips
FAFSA.gov
Questions?
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FSA ID: Needed for FAFSA.gov
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Free Application for Federal Student Aid (FAFSA)
• Eligibility for federal student aid programs is determined by the information provided on the FAFSA
• Students are encouraged to file their FAFSA as soon as possible after January 1st of their senior year in high school
• Must create an FSA ID to complete online application at FAFSA.gov
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Basic Eligibility Requirements
Students must have:
• High school diploma, GED, homeschool completion
certificate
• A Social Security Number (with limited exceptions)
• U.S. citizenship or be an eligible non-citizen
• Registered with the Selective Service (Males)
Students also need to:
• Be enrolled or accepted for enrollment in an eligible
program
• Be pursuing a degree, certificate or credential
• Maintain ‘Satisfactory Academic Progress’
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• Transfer tax information directly into the FAFSA
• Takes 2-3 weeks for information to become
available in Retrieval Tool Database
• Easiest way to provide tax information but NOT
required
• Usually available early February 2016
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IRS Data Retrieval Tool
If any of the following criteria applies, the student is
considered independent:
24 years or older
Married
Pursuing a Master’s or Doctorate Program
Children and you provide ½ support
In foster care since turning the age of 13
Emancipated minor
Currently or was in legal guardianship
Homeless or self supporting and at risk of being homeless
Veteran or serving active duty in U.S. Armed Force
FAFSA Dependency Status
Special Circumstances • Some examples of special circumstances are:
• Parents are incarcerated or deceased
• Left home due to an abusive family environment
• Unsure of parents whereabouts
• Circumstances must be well documented
• Financial aid office has final say (professional
judgement)
Helpful Hints
• Dependent students are only eligible for
unsubsidized loans without parent
information on the FAFSA
• FAFSA is used for more than just
federal aid
• Undocumented parents can use 000-00-
0000 in place of SSN
Scenario
“I am a student and my parents are divorced.
Do both of my parents need to complete the
FAFSA?”
Answer: If your parents are divorced or
separated and don’t live together, the parent
with whom you lived more during the past 12
months should be the only one to complete
the FAFSA.
“I am a student and I split my time living
equally between my divorced parents. The
FAFSA requires information from the
supporting parent. Which parent should fill
out the FAFSA?”
Answer: If you lived the same amount of time with
each divorced or separated parent,
the parent who provided more financial support during
the past 12 months should complete the FAFSA.
Scenario
Scenarios
“I am the grandmother and legal guardian of
a student. Can I fill out the FAFSA in place of
the parent?”
Answer: No. This student is considered independent
due to the courts placing the student in a legal
guardianship. Independent students are not
required to provide parental information on the
FAFSA.
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What To Expect
Student
completes
the
FAFSA
FAFSA is
processed
by FSA;
Student
receives a
SAR;
College
receives
information
if listed on
the FAFSA
College
reviews
FAFSA
and
assembles
award
package
for the
student
Student
reviews
award
letters and
determines
which
college to
attend
After the FAFSA Submission
• Check your email and snail mail
regularly
• Update and/or make corrections to the
FAFSA if necessary
• Follow up with the schools for your
award letter
• Continue to search for scholarships
Sample Award Letter
Financial Need = $13,000 Scholarships $2,000
Institutional Grant $2,000
Federal Grants $5,000
State Grants $2,000
Loans $2,000 - Unmet need
TOTAL = $13,000
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www.StudentAid.gov
Connect With Us!
@FAFSA
www.twitter.com/FAFSA
YOUTUBE
Federal Student Aid
www.youtube.com/FederalStudentAid
Federal Student Aid
www.facebook.com/FederalStudentAid
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FSAIC The Federal Student Aid Information Center (FSAIC) operates a toll-
free hotline to provide:
o Information about federal student aid programs;
o Help completing the FAFSA
o Information about the process of determining financial need
and awarding aid
1-800-4-FED-AID (1-800-433-3243)
www.StudentAid.gov
www.fafsa.ed.gov
Hours: Monday – Friday: 8:00am – 10:00pm ET Saturday: 9:00am – 6:00pm ET Sunday: Closed
http://nces.ed.gov/collegenavigator/
Comparison Shopping – College Navigator
College Scorecard
An online tool that will make it easier for students and families to compare colleges by comparing information such as: net price; graduation rates; default rates; student loan debt; and earnings potential
http://collegecost.ed.gov/scorecard/index.aspx
College Scorecard