FINANCIAL AID 101: HOW DO WE PAY FOR COLLEGE? Presented by: Midwestern State University Financial...

FINANCIAL AID 101: HOW DO WE PAY FOR COLLEGE? Presented by: Midwestern State University Financial Aid Office

Money from a source other than the family to assist with the cost of attending college, which includes: Scholarships Grants Loans Employment Tuition Exemptions What is Financial Aid?

FAFSA Institutional Financial Aid Application Admissions Application Scholarship Application TASFA for Texas residents who do not meet eligibility to file FAFSA ?? Numerous Applications??

COMMON FINANCIAL AID TERMS FAFSA Free Application for Federal Student Aid SAR Student Aid Report EFC Expected Family Contribution COA - Cost Of Attendance = cost of education, or budget, per academic year Title IV School Code MSU is 003592; other school codes available from your counselor or the FAFSA online search

What is the FAFSA? THE application for federal aid A standard form that collects demographic and financial information about the student and family Information used to calculate the Expected Family Contribution or EFC Students must complete FAFSA for each school year Colleges may set FAFSA filing deadlines

FAFSA on the Web Website: www.fafsa.govwww.fafsa.gov 201314 FAFSA on the Web available NOW FAFSA on the Web Worksheet: Used as optional pre-application checklist Questions follow order of FAFSA on the Web Signature page needed OR Electronic Signature Option w/PIN

Warning Signs of Financial Aid Fraud *NEVER pay a fee to complete or process the FAFSA IT IS FREE!! * If filing FAFSA on the Web, go to www.fafsa.gov (NOT.com!)www.fafsa.gov * Contact any Financial Aid Office if you need help completing the FAFSA * Avoid organizations that say they can help locate more aid and then charge YOU a fee!!!

PIN Registration Website: www.pin.ed.govwww.pin.ed.gov Not required, but speeds processing May be used by students and parents throughout aid process, including subsequent school years Ability to retrieve PIN immediately or via email

IRS Data Retrieval Tool Students completing a 201314 FAFSA are STRONGLY ENCOURAGED to utilize IRS Data Retrieval Tool beginning ON/AFTER February 25, 2013! Student/parent will transfer 2012 income tax return onto the 2013-14 FAFSA while completing the application. Must allow 5-7 business days after you/parent electronically file your tax return (but not before February 25) before you will be able to download tax return information onto the 2013-14 FAFSA application. If you/parent file a paper tax return, you must allow up to 30 business days before you will be able to download tax return information onto the 2013-14 FAFSA application.

IRS Data Retrieval Tool Students NOT using the IRS DRT will most likely be selected for verification and, if selected, student/parent MUST submit an IRS TAX RETURN TRANSCRIPT to the MSU Financial Aid Office. NOTE: copies of signed tax returns will no longer be accepted. To request an IRS Tax Return Transcript, you/parent will be required to provide the following information: * Social Security Number or IRS individual taxpayer identification number) *Date of birth *Street Address and Zip Code To request a free copy of your/parent IRS Tax Return Transcript: www.irs.gov

Frequent FAFSA Errors *Social Security Numbers are not correct *Divorced/remarried parental information *Income earned by parents/stepparents is inaccurate *Untaxed income *U.S. income taxes paid *Household size *Number of household members in college *Real estate and investment net worth

Tips for the FAFSA Apply EARLY in the Spring, around 1 st of February of each year, if possible Know your schools priority deadline date; MSU = March 1 st for Fall/Spring File Tax returns early remember, we encourage you to use the IRS Data Retrieval Tool to download your tax information onto the FAFSA; otherwise, you may be selected for verification.

Professional Judgment Varies from college to college Documentation By authority of the financial aid administrator

FAFSA Processing Results Central Processing System (CPS) notifies student of FAFSA processing results, such as summarized FAFSA information and students EFC, via a Student Aid Report (SAR): E-mail notification containing a direct link to students on-line SAR if students e-mail was provided on paper or electronic FAFSA SAR Acknowledgment if filed FAFSA on the Web and students e-mail address was not provided Paper SAR if paper FAFSA was filed and students e-mail address was not provided Student with PIN may view SAR on-line at www.fafsa.gov

What is the Expected Family Contribution (EFC)? *The amount of money a student and his/her family may reasonably be expected to contribute toward the cost of education for an academic year *Stays the same regardless of college you choose, but is calculated with new information each new year you file the FAFSA *Calculated using data from the FAFSA and a pre-set federal formula

What is Cost Of Attendance (COA)? Direct costs tuition, fees, books, room & board Indirect costs transportation, personal care, child care, loan fees Direct and indirect costs combine into cost of attendance, or budget Varies widely from college to college

MSUs Cost of Attendance Annual Estimate 2012-2013 Off Campus / In Dorm: Tuition and Fees $7,632 Books and Supplies 1,200 Room & Board 7,088 Transportation 1,872 Personal/Miscellaneous 1,598 TOTAL $19,390 With Parent: Tuition and Fees $7,632 Books and Supplies 1,200 Room & Board 3,157 Transportation 1,872 Personal/Miscellaneous 919 TOTAL $14,780

Cost of Attendance Estimates Two-Year College$13,294 Private University$51,610

Definition of Need Cost of Attendance (COA) - Expected Family Contribution (EFC) ________________________________ = Financial Need

General Eligibility Requirements *Be enrolled as a regular student in a degree or certificate program *Not be simultaneously enrolled in an elementary or secondary school while enrolled in postsecondary school *Provide a valid social security number *Be registered with Selective Service *Maintain satisfactory academic progress *US citizen, national, permanent resident or eligible non-citizen *Have a high school diploma or its equivalent (CONTD)

General Eligibility Requirements (continued) Have a high school diploma or its equivalent, or home school credential * Recognized equivalent includes: - GED certificate - Certificate recognized by the state as an equivalent to a diploma - Academic transcript showing successful completion of at least a 2-year program fully acceptable toward a bachelors degree - Documentation that the student excelled in high school (ie; Doogie Howser syndrome)

Undocumented Students HB 1403 (SB 1528) This law permits some non-citizens to be classified as Texas residents for financial aid and admission purposes. May receive In-state tuition Texas Financial Aid (some programs)

Undocumented Students HB 1403/SB 1528 Eligibility Criteria Live in Texas the 36 months leading up to high school graduation or the completion of a GED; and Lived in Texas the 12 months prior to enrollment; and If they are not currently US citizens or Permanent Residents, completed an affidavit indicating their intent to apply for Permanent Resident status as soon as they are eligible to do so. Must register with selective service (males only) Application Submit a Texas Application for State Financial Aid (TASFA) and submit to the financial aid office at the institution for processing www.collegefortexans.com

Scholarships Academic Talent Athletic Community Groups Free Money!!!! Does not have to be repaid

Scholarship Search Engines Always use free searches such as: www.finaid.org www.collegeboard.com www.fastweb.com www.gocollege.com www.FederalStudentAid.ed.gov

Notify the Financial Aid Office of Scholarships Received You must advise the Financial Aid Office of any scholarships/benefits you may receive in 2013-14; otherwise, adjustments may be necessary to your award(s) if the Financial Aid Office is made aware of any scholarship(s) or additional benefits you will receive AFTER your award(s) are determined. MSUs Additional Benefits/Expenses form must be completed and returned to the MSU Financial Aid Office (available at http://finaid.mwsu.edu/financial-aid-forms.asp)

Grants and Workstudy Federal Grants Workstudy State Grants Institutional Grants Free Money!!!! Does not have to be repaid

Federal Grants (Based on Expected Family Contribution(EFC)) Pell Grant = 2012-13 ranges from $602 - $5550 per year for a full-time student. 2013-14 Pell ranges are not known yet. Pell amounts will be reduced for less-than-full-time students. SEOG = Schools receive limited amount of money; funds exhausted early. Must be Pell-eligible to receive SEOG funds.

Federal/State Workstudy Need based work program Typically pays minimum wage, but wage varies at college/university Student allowed to work up to 20hrs/week Typically on-campus jobs Can exclude this income on following years financial aid application Apply early!! Jobs go fast!

State Grants TEXAS Grant ( Toward Excellence, Access & Success ) Need-Based Award Texas Resident Completed the Recommended or Distinguished Achievement Program in high school Have an EFC of 4000 or less Enroll at least three-quarter-time in an undergraduate or certificate program within 16 months of HS graduation Not been convicted of a felony or crime involving a controlled substance Availability of Funds

TEXAS Grant (continued) In addition to the basic eligibility requirements, students must meet requirements in at least 2 of the following 4 areas for priority consideration: * Advanced Academic Program 12 hours of college credit (dual credit or AP credit), complete the Distinguished Achievement Program (DAP), or complete the International Baccalaureate Program (IB). * TSI Readiness Meet the TEXAS Success Initiatives (TSI) assessment thresholds or qualify for an exemption. * Class Standing Graduate in the top 1/3 of the HS graduating class or have a B average. * Advanced Math Complete at least one math course beyond Algebra II.

Encourages students who graduate in the top 10% of high school class to attend Texas public universities Texas Resident Must enroll full-time Complete Recommended or Distinguished Achievement Program in high school Award is $2000 per year (Fall award ONLY) Must submit FAFSA or TASFA and have a valid SAR on file at the university by March 15, 2013 (FAFSA or TASFA submitted after March 15 will be awarded on a first-come, first-served basis until available funds have been spent) Top 10% Scholarship (sponsored by Coordinating Board)

MSUs Mustangs Guarantee Program Beginning freshman student OR new Transfer student Pell Grant eligible student who is a Texas Resident Must submit FAFSA and have a completed financial aid file (including all verification documents) on/before May 31 (for Fall semester) or December 15 (for Spring semester) Familys combined AGI is $50,000 or less Covers remaining balance of tuition & mandatory fees (for 15 credit hours or more) that are not paid by other grants, scholarships, exemptions, benefits or waivers Maintain a minimum of 15 credit hours through 12 th class day for each Fall and Spring semester Complete at least 12 hours AND maintain a cumulative grade point average of 2.5 at end of EACH fall and spring semester. Available up to 4 academic years (excluding summer terms)

Student Loans Federal Loans State Loans Alternative/Private Loans Must Be Repaid!!!!

What is a Student Loan? Money students and/or parents borrow to help pay educational expenses Repayment usually begins after education is finished Look at loans as an investment in the future. Research shows that obtaining a higher education can increase what an individual earns over a lifetime. Student loans are the top source of financial aid

Federal Direct Loans Subsidized Unsubsidized Need-based Not need-based Interest: Fixed 6.8% Student responsible for all interest that accrues (subject to change on July 1, 2013) Repayment begins 6 months after graduation or dropping below half-time enrollment For Direct loans, the lender is the Department of Education Interest: Fixed 3.4% for loans disbursed after July 1, 2012 Government pays while enrolled at least half time (subject to change on July 1, 2013)

Annual Loan Limits $3,500 Freshman $4,500 Sophomore $5,500 Junior and Senior All students can request an additional $2000 Unsubsidized Stafford loan annually

Federal Direct Parent (PLUS) Loans Loan in Parents Name/SSN Based on parents credit-worthiness Current Fixed Interest Rate = 7.9% Payments begin 60 days after 2 nd disbursement The parent, upon his or her request, can defer payments on a PLUS loan if the student is enrolled at least half time.

STATE & ALTERNATIVE/PRIVATE Student Loans STATE Texas B-On-Time Loan College Access Loan ALTERNATIVE/PRIVATE

Texas B-On-Time (BOT) Loan A STATE loan which provides eligible Texas students with no-interest loans: Need established by filing FAFSA Texas Resident Completed the Recommended or Distinguished Achievement Program in high school Enroll full-time Availability of funds is determined by the Texas Higher Education Coordinating Board Eligible for annual renewal, pending availability of funds Loan forgiveness provisions are available (CONTD)

BOT Loan Forgiveness Requirements: If student graduates on time with a 3.0 GPA or higher, the B-On-Time loan will be forgiven The BOT loan has a 15-year repayment period or a minimum monthly payment of $75.00 and a 0% interest rate. To Graduate on-time a student must Finish a 4 year degree in 4 years Finish a 5 year degree in 5 years Finish a 2 year degree in 2 years, OR Finish a degree with no more than 6 semester hours beyond what is required for his/her major

College Access Loan (CAL) A STATE loan available to Texas students NOT Need-Based Loan but FAFSA must be filed Texas Resident Enroll at least half-time Student must have a credit-worthy co-signor Fixed interest rate is determined by the Texas Higher Education Coordinating Board; currently, 5.25% Availability of funds is determined by the Texas Higher Education Coordinating Board

Alternative/ Private Loan Private consumer loans Provided without consideration of financial need Usually a last option after other more economical sources are exhausted Credit checks are required Variable interest rate usually VERY HIGH!

Tuition Exemptions/Waivers * An exemption allows an individual to enroll in a Texas public institution while paying a reduced amount of tuition and fees example Valedictorian tuition exemption, Foster Care exemption, etc. * The State of Texas has authorized more than 30 exemption programs * Exemptions have different eligibility requirements * For a complete listing and eligibility requirements, see www.collegefortexans.com

Award Notification Process Award notifications usually contain Types and amounts of aid offered How and when aid will be disbursed Terms and conditions of offer Students should Accept or decline (if required) Sign and return (if required) Complete student loan process (if necessary)

Evaluating Aid Packages *Biggest is not always best compare to cost of attendance for each school *Renewable vs non-renewable scholarships *Terms and conditions of offered loan(s) *Balance work with academic responsibilities *Types of aid offered Grants Loans Work-Study

SHOPPING SHEET Designed to help standardize the way students costs and types of aid are communicated to students And provides students/parents with information regarding graduation rates, default rates and median borrowing rates at the college/university. MSU will provide the Shopping Sheet to students beginning in the 2013-14 award year.

Family Educational Rights and Privacy Act (FERPA) The students rights under FERPA transfer from the students parents to the student when the student attends a postsecondary institution. A student must provide written consent before an education agency or school may disclose personally identifiable information from the students education records. MSUs Release of Information form: http://finaid.mwsu.edu/pdf/fao_55.pdf

MSUs Short-Term Payment Plans Installment Contract Emergency Tuition/Fee Loan Administered by the MSU Business Office (visit www.mwsu.edu/busoffice/)

MSUs Book Loan Available to students whose financial aid refund check is less than $600 - OR - the student is not receiving financial aid but needs additional assistance with purchasing books. Administered by the MSU Bookstore and is available at http://finaid.mwsu.edu/bookvoucher.asp

Add/Drop Classes Prior to Official Enrollment date (12 th class day) = adjustment may be made to financial aid awards After Official Enrollment date = no adjustment made to financial aid awards but affects Satisfactory Academic Progress (SAP)

Monitoring Satisfactory Academic Progress (SAP) NOTE: At MSU, Financial Aid Warning/Suspension differs from Academic Probation/Warning/Suspension To retain eligibility, financial aid recipients must show academic progress in your program of study. The following will be monitored at the end of every semester: 1. Cumulative Grade Point Average (GPA) 2. Maximum Time Frame for Program of Study 3. Successful Credit Hour Completion Rate MSUs current SAP rules are available at http://finaid.mwsu.edu/sap.asp

Monitoring Satisfactory Academic Progress (SAP) In addition to maintaining SAP standards, students who receive certain grants/scholarships may be required to maintain standards specific to those grants/scholarships. For example: TPEG Grant and GOLD Scholarships: - requires 69% completion rate - 2.00 semester grade point average, if undergraduate - 3.00 semester grade point average, if graduate Academic Scholarship requirements vary by program; be sure you are aware of the requirements required to keep your scholarship.

Helpful Web sites www.mwsu.eduwww.mwsu.edu Midwestern State University http://finaid.mwsu.eduhttp://finaid.mwsu.edu MSU Financial Aid Office www.college.govwww.college.gov - US Department of Education website to assist students with plans to attend college www.CollegeForTexans.comwww.CollegeForTexans.com state-specific information about higher education, financial aid www.studentaid.ed.govwww.studentaid.ed.gov - federal site regarding student financial aid

contains important instructions. Please read carefully.

Section 1 General student information: Name Social Security Number Citizenship Marital status Selective Service registration status Drug conviction status Parents educational background Section 2 Students dependency status: If all No responses, student is dependent If Yes to any question, student is independent

Section 3 Data for PARENTS of dependent students: Dislocated worker status Financial data for parents of dependent students: Tax filing status Adjusted Gross Income (AGI) for 2012 Income earned from work Receipt of benefits from certain federal means- tested programs Additional financial information Untaxed income

Section 4 Financial data for STUDENT (and spouse) Tax filing status Adjusted Gross Income (AGI) for 2012 Income earned from work Dislocated worker status Receipt of benefits from certain federal means- tested programs Additional financial information Untaxed income

Evaluations Please take time to complete an evaluation We will use your comments and suggestions to improve future training and our outreach efforts THANK YOU!

Contact Information: Midwestern State University Financial Aid Office 3410 Taft Blvd. Wichita Falls, TX 76308 (940) 397-4214 (office) (940) 397-4852 (fax) http://finaid.mwsu.edu/ Email: [email protected]

FINANCIAL AID 101: HOW DO WE PAY FOR COLLEGE? Presented by: Midwestern State University Financial...

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