Financing a College Education

The College Goal Sunday program was created by the Indiana Student Financial Aid Association with funding from Lilly Endowment, Inc., and with supplemental support from the Lumina Foundation for Education.

College Goal Kentucky 2014

What is Financial Aid?

• Scholarships

• Grants

• Loans

• Employment Opportunities

Sources of Financial Aid

• Private

• Institutional

• State

• Federal

Types of Financial Aid

• Merit-Based

• Need-Based

Merit-Based Financial Aid

Private Scholarships

• Free Scholarship Searches

• High School Counselors

• Student and Parent Employers

• Organizations to which you or your family members belong

• Paying for help? Beware!

Institutional Aid

• Apply for admission to the college of your choice

• Ask for scholarship applications from the admissions office

• Ask if a separate financial aid application is required

• Ask for scholarship information from departments specific to your major

• Consider R.O.T.C.

Additional Requirements for Some Schools: CSS/Financial Aid Profile

• Many colleges (mostly private out of state) and scholarship organizations use the data on CSS/Financial Aid Profile to assist in awarding nonfederal aid.

• Visit profileonline.collegeboard.com to find out if your school or scholarship of interest requires this form.

• Students are charged $25 for initial application and one college or program report; additional reports are $16.

Kentucky Educational Excellence Scholarship (KEES)

• After high school graduation, KEES becomes available for use at a Kentucky college or university

• Students pursuing a degree in a program of study not offered in Kentucky may be able to use their KEES out-of-state through the Academic Common Market– Does not apply to colleges in Indiana, Ohio, and Illinois

• Award renewable for up to 8 semesters within 5 years of high school graduation

• Administered by Kentucky Higher Education Assistance Authority (KHEAA)–www.kheaa.com

Kentucky Educational Excellence Scholarship (KEES)

• Merit scholarship funded by net KY lottery proceeds

• KY high school students earn KEES awards for each yearly GPA of 2.5 or better • Cumulative GPA maximum is $2,000

• Students with at least one GPA award can earn bonus awards:• ACT scores of 15 or better earn up to $500• SAT scores of 710 or better earn up to $500• Free/reduced lunch students earn $200-$300 for each

qualifying AP and/or IB exam score

Need-Based Financial Aid

Definition of Need

Cost of Attendance (COA)

- Expected Family Contribution (EFC)

______________________= Financial Need

Cost of Attendance

Always includes:• Tuition, Room and Board• Books and supplies, transportation, and

miscellaneous personal expenses• Loan fees

May include:• Study abroad costs• Dependent or elder care expenses• Expenses associated with a disability• Expenses for cooperative education program

Need Varies Based on Cost

X

Y

Z

Cost of Expected Family NeedAttendance Contribution (Variable) (Variable) (Constant)

1

2

3

EFC EFC

State Programs

• College Access Program Grant (CAP) • Available to students at public and private

colleges in Kentucky• Award amount currently $1,900 per year

• KY Tuition Grant (KTG)• Available to students at Kentucky’s private

colleges. • Award amount currently $2,930 per year

Federal Aid Programs

• Federal Pell Grant

• TEACH Grant

• Campus-Based Programs–Federal Perkins Loan–Federal Work-Study (FWS)–Federal Supplemental

Educational Opportunity Grant (SEOG)

Federal Loan ProgramsWilliam D. Ford Direct Loan Program– Federal Stafford Loan

• Subsidized (need-based): interest does not accrue while student is in school, current fixed interest rate of 3.86%

• Unsubsidized (non need-based): interest accrues while student is in school at current fixed rate of 3.86% (Grad Unsub 5.41%)

– Federal PLUS Loan – 6.41%• Parent can borrow up to Cost of Attendance – All

Financial Aid• If denied, student can receive up to $4,000 more per

year in Stafford unsubsidized loan funds– Rates are based on loans disbursed between 7/1/13 and June

6/30/14. New rates will be announced by July 1, 2014.

Priority Application Deadline

• As soon as possible after January 1, 2013– Receipt date for completed Free Application for

Federal Student Aid (FAFSA) in Kentucky• To ensure maximum consideration for Kentucky

state aid programs• Schools may have unique priority deadlines for

institutional funds

Free Application for Federal Student Aid (FAFSA)

– Family’s personal and financial information required to perform need analysis is collected on the FAFSA.

– Can use estimated 2013 income and tax information, if necessary

– Filing options• Paper version• Electronically through FAFSA on the Web:

www.fafsa.gov• Sophisticated on-line edits and skip logic so that errors are less

likely to be made• On-line help is available for each question

Getting Ready• Before starting the FAFSA, gather:

– Student driver’s license – Student Alien Registration Card– Student and Parent

Social Security cards 2013 W-2 Forms and other records of money earned* 2013 federal income tax return* Records of untaxed income Current bank statements Business, farm, and other real estate records Records of stocks, bonds, and other investments

* Can estimate this information if not available yet.

Federal PIN www.pin.ed.gov

• PIN (Personal Identification Number) serves as the electronic signature on ED documents

• Both student and at least one custodial parent need PIN to sign the FAFSA electronically

• May be used to:– Check on FAFSA status– Verify and correct FAFSA data– Add additional schools to receive

FAFSA data– Change home and e-mail addresses

Apply for student and parent PINs at

www.pin.ed.gov

www.FAFSA.gov Do NOT go to a

“.org” or “.com” website

Start A New FAFSA for Initial FAFSA Entry

Login for Renewal Application

Entry FAFSA Corrections Providing Signatures Continuing a Saved

FAFSA Viewing Transaction

History

Basic Student Information

Name, Social Security and Date of Birth

Notice “Help and Hints” follows along every page to help ensure accuracy.

“Get Started” page –

As an entering freshman for Fall 2014 be sure you are filing the 2014-2015 FAFSA

PIN Status

Introduction Page

Student Demographic Information

Opportunity to check Name, DOB, SS#

Address, Phone #, Email Address

Marital Status – As Of Today

Driver’s License Information

Notice the “Save” Option

Error Icon Identifies Errors

An error icon will appear with a pop-up box indicating the nature of the error.

A RED X will also display to the left of the field where the information needs to be corrected.

Student Demographic Information

Citizenship

Selective Service

Degree Status - Most High School Seniors will answer: High School DiplomaNever attended college / 1st yr. 1st Bachelors Degree Bachelors degree not earned by July 1, 2014

Work Study

Highest Grade completed by parents

High School Question

Student enters the name, city and state of the high school they attended

Student selects Confirm to retrieve the results

High School Search Results – Matches Found

Student can “Select” the school attended from the list. If the student does not find the school on the list, the student selects “Next” to continue and the search criteria are saved.

High School Search Results – No Matches Found

If no matches are found, the student selects Next to continue and the search criteria are saved.

School Selection Step

Student may enter up to 10 colleges by entering Federal School Code or Searching on State, City or School Name

School Code Search Features The student can

scroll through the search results

Can also view detailed information for a school before & after adding the school to their FAFSA

Once a school is added you will be asked to confirm your housing plan

School Selection – Housing Plans For each school

selected the student will select the housing plan for that school

Options include On Campus With Parent Off Campus

Dependency Determination

13 questions determine a student’s dependency status

Dependency Results

Most High School students will have to provide parental information based on the way they answer the Dependency questions.

If the student moves forward without providing the parental information they will most likely have to provide some additional documentation of circumstance to the college or university.

Parent Demographic Information

Notice the slight change in the color of the web layout

Dark Blue refers to the student

Light Purple refers to the parent

Similar Demographic Questions will be asked Name, Social Security and Date of Birth

Parents will also be asked about their Household Size and the Number of individuals going to college

Parent Financial Information

Remember you are answering questions about the previous year’s tax information

If you have not completed your 2013 taxes you are allowed to use your best estimates. Additional instruction is provided if you are estimating income.

Parent Financial Information

39

Type of tax return

AGI and work income

What is a dislocated worker?

Parent Financial Information

40

Taxes Paid

Number of exemptions

“Help and Hints” can be a useful tool to answer:

Additional Financial Information

Untaxed Income

Asset Net Worth ThresholdSome parents of

dependent students and independent students will be presented with an asset net worth question

If answer is “yes”, three asset questions regarding cash, saving, checking, investments and business worth will display.

If answer is “no”, the asset questions will not display.

Student Financial Information

Notice the slight change in the color goes back to dark blue to indicate you are now answering questions about the student.

Student Financial Information

If tax return has not been completed yet, guidance is offered about how to estimate 2013 income and tax information (same in parent section).

Student financial questions will be nearly identical to those asked of parents.

The IRS Data Retrieval is scheduled to be available on February 2, 2014.

Electronically filed tax return information will be available from the IRS in 3 weeks, data from paper tax returns will be available in 8 weeks.

Also available in Corrections

If the parent or student 2013 tax return has already been completed

IRS Data RetrievalOnce the applicant has successfully authenticated, tax data will be presented and the applicant will have the option to “Transfer” the tax information to the FAFSA

Sign & Submit

The best way to sign the FAFSA is by using your PIN

Both student and parent need to provide a PIN for electronic signature

Note: Submitting the FAFSA without signatures will cause a delay

Confirmation Page

Includes –Confirmation NumberData Release Number (DRN)EFC estimatePell Grant and Direct Loan estimatesOption for parents to transfer info to an application for a siblingStatistics for each college on the FAFSA

Verification

• Application selected by federal government or by school

• Confirms accuracy of information reported on FAFSA

If selected, what will you need?

• Verification Worksheet (will be provided to you)

• IRS Data Retrieval

• 2013 U.S. income Tax Transcript

• Follow the directions provided by the school you plan to attend

Common documents requested are:

Role of the Financial Aid Office

• Determines eligibility for financial aid

• Packages aid

• Sends award notification

Special Circumstances

Contact the Financial Aid Office if there are circumstances which affect a family’s ability to pay for college such as:– Loss or reduction in parent or student income or

assets– Death or serious illness– Natural disasters affecting parent income or assets– Unusual medical or dental expenses not covered by

insurance– Reduction in child support or other untaxed benefits– Financial responsibility for elderly grandparents– Tuition expenses at elementary or secondary schools – Unusually high child care costs

Or any other unusual circumstances that affect a family’s ability to contribute to higher education

Evaluating Aid Packages

• Biggest is not always best; unmet need must be considered

• Are cost estimates realistic? Direct vs. Indirect

• Grant/Loan balance

• What are the terms and conditions of aid offered?

• Type of aid offered in view of student’s career objectives and work expectations

Summary of the Financial Aid Process

• Submit all required forms, including the FAFSA, by each college’s published deadlines

• Keep a copy of all forms submitted• Review the electronic Student Aid Report

(SAR) Acknowledgement or the paper SAR sent to the student

• Watch for financial aid award notifications from colleges to which the student has been admitted

• Be sure to apply for financial aid this year and every year as soon as possible after January 1 to receive the best financial aid award possible

• ASK QUESTIONS!

Questions and Answers

Good luck with your educational goals!