Training

Welcome toKings College Financial Aid Night

January 09, 20131Financial Aid Financial Aid is assistance to help students fund their education. It can take the form of:ScholarshipsGrantsLoansEmployment

2Gift Aid vs. Self-Help AidGIFT AIDGrant/Scholarship = Aid awarded that does not have to be repaid.

SELF-HELP AIDLoans = Borrowed money that has to be repaid over a period of time, often after the student completes their degree. Available to students and parents

Work-study = Money students earn by working on campus.3Merit versus Need-Based

Merit-Based Aid (Need blind)Academic record Skills or talents Involvement - community service; extracurricular activities

Need-Based Aid = awarded on the basis of financial need. Re-evaluated each year as financial situations may change.4Merit Based Aid = need blind awarded upon admission to students strictly on the basis of merit. Does not have to be repaid. Renewable each year contingent upon maintaining academic criteria and satisfactory progress towards degree. Filing the FAFSA Available in English and Spanish Complete as soon as possible after January 1, 2013 and by college deadlines. Must be filed by May 1, 2013 for PHEAA

5Getting ReadyBefore starting the FAFSA, gather:(student and parent)Social Security cards2012 federal income tax form (even if not completed) and W2 formsRecords of untaxed income Current bank statements (as of filing date)Business, farm and other real estate recordsRecords of stocks, bonds and other investments(including 529 accounts)Asset information may not be required 6Here is a list of records you should have available in order to complete the FAFSA. Completing the FAFSA will be easier and less time consuming if you gather these records before going on-line.

You will need : -Your drivers license (optional), and -Your Alien Registration Card (if you are not a U.S. citizen)

You and your parents may need:- Social Security cards- W-2 forms and other records of any money earned in 2012-2012 federal income tax return data (if completed). Remember, federal tax returns do not need to be completed to apply for student financial aid. - Records of untaxed income (includes VA non educational benefits, child support paid/received, workers compensation)- Current bank statements (as of filing date)- Business/farm and other real estate records- Records of any stocks, bonds and other investments (asset information may not be required).

Keep in mind that not all families will have all of these records. For future reference, be sure to keep copies of all financial aid documents used to complete the FAFSA, and a copy of the completed FAFSA . You and your family must reapply each year for financial aid.Student Financial Aid (SFA) PINWeb site: www.pin.ed.govPin # used to sign FAFSA electronicallyMay be used by students and parents throughout aid process, including subsequent school yearsLink to Pin website is also on FAFSA website

7PIN is assigned to the Individual once. Dont need to reapply. Parent will need pin to sign FAFSA and Promissory notes for PARENT PLUS loan.If more that one in college, parent may use same pin number but each child will need their own. PIN UsageIf filing FAFSA online, Parent & student sign electronically. Must first apply for PIN at http://www.fafsa.govPIN can be created or will be emailed to student for immediate use.PIN serves as e-signatureAdditional PIN uses:submit info and make corrections online.sign Promissory Notes for Direct Loans.Access Financial Aid history on NLSDS8FAFSA-Filing TipsBased on prior calendar year tax returnMay use estimated income and taxesMay submit prior to college acceptancePA residents must file by May 1 for state grant consideration; state will follow up with student (via email)

910Do no file at FAFSA.com. Google will bring that link up first. Free help is available online, through high school guidance office , college financial aid offices, PHEAA and agencies such as Educational Opportunity Center.

FAFSA on the WebWeb site: www.fafsa.gov. 2013-2014 FAFSA on the Web available as of January 1, 2013

11FAFSA on the WebGood reasons to file electronically:Built-in edits to prevent costly errorsSkip-logic allows student and/or parent to skip unnecessary questionsMore timely submission of original application and any necessary correctionsMore detailed instructions and help for common questionsAbility to check application status on-lineSimplified renewal application process12FAFSA on the WebGood reasons to file electronically:Can complete in stages and save and submit when completeIncomplete applications saved and not submitted will be sent emails after 7 days and again in 14 days if still not submittedEmails sent to student and parent when both provide email addresses

13FAFSA on the WebThe IRS Data Retrieval continues in 2013-2014 beginning February 3, 2013.Also available in Corrections Electronically filed tax return information will be available from the IRS in 2-3 weeks, data from paper tax returns will be available in 6-8 weeks.

Not all applicants will be able to use this tool. As series of filtering questions are used to determine eligibility. For example, Married filing single, head of household. Filers not eligible ot use this tool, will need to manually enter income data.

14General student informationName State of legal residenceSocial Security NumberCitizenship

FAFSA on the WEB15Use full name, no nicknames, abreviations or initials.Use correct students ssn (check card to assure name and SSN match FAFSA entry)Do not skip Citizenship question

FOTW Student demographic informationMarital statusSelective Service RegistrationDrug Conviction QuestionParents Educational Background

16 Parents educational background. This question is used for state scholarship purposes only and does not affect your eligibility for federal student aid. For this question, father means your birth or adoptive father. Do not answer this question about a stepfather, legal guardian, or foster parent.

FOTWStudent Income and Assets

Adjusted Gross Income/Earned wages

Untaxed Income

Assets

For student income there is an income protection allowance of $6,130 for 2013-14 and the remaining amount is assessed at 50%.Dependent students must report any assets in their name. They do not receive an Asset Protection allowance. Their reported assts are assessed at 20% .17FOTWStudents dependency status:If all No responses, student is dependentIf Yes to any question, student is independentUnder limited special circumstances, student may submit electronic FAFSA without parental data. If there is a special circumstance, student will be instructed during online application process on how to proceed; documentation will be needed by Financial AidExamples of special circumstances: parents incarcerated, left home due to abusive environment, unable to locate and contact parents18The student is asked a series of 13 questions to determine if parental data is required. ( refer to paper FAFSA pg 9). Definition of Legal guardianship does not include your parents, even if they were appointed by a court to be your guardians. FOTW Data for parents of dependent studentsParents name, social security number, date of birth 19FOTWData for parents of dependent students:Are either parents a dislocated worker? Job loss, laid off, receiving unemployment, unlikely to return to previous occupation orDisplaced homemaker person who previously provided unpaid services to family & is no longer supported by spouse, is unemployed & is having trouble finding or upgrading employment. Documentation will be needed by Financial Aid Office20FOTWFinancial data for parents of dependent students:Tax filing status and return type already completed, will file, will not file1040, 1040A/EZ, foreign tax return wages, adjusted gross income, federal tax paid21Tax filing status is important for a number of reasons. It is One of the IRS Data Retrieval tools filtering questions. Must answer . Tells the Dept of Education if figures are estimated or actual. Return type is important because it will be used as a filter to determine whether or not the student qualifies for special processing formulas. Simplified formula applies to parents with an AGI of less than 50,000 and the Automatic Zero EFC formula applies when the annual income is 24,000 or less. In these cases, no student or parental asset information is required and therefor not a factor in the EFC calculation.

1040A or EZ if income is under 100,000 and dont itemize deductions , dont own business, no alimony

FOTW Financial data for parents of dependent students:Adjusted Gross Income (AGI) for 2012Income earned from work

22AGI includes interest income, income earned from working, dividends, taxable refunds, alimony, capital gains and losses, rental income, taxable social security and pension distributions. Line 37 on 2012 tax return.

Income earned from work is Line 7 and Business income Line 12. Is found on W2 form and schedule C of federal tax return.

This is important on the

FOTWFinancial data for parents of dependent students:2012 Additional Financial Information Education credits on tax return, child support paid/received payment to tax deferred pension, IRA deductions23 If not listed on tax returns, Most of the items W2 box 12 a-d and sometimes box 14 FOTWCash, savings, and checkingNet worth of investments: Net worth equals current value minus debtDont include primary home, life insurance, retirement plansDo include real estate, money market, mutual funds, CDs, stocks, education savings plans (even if owned by student, parent reports in parent section)Review instructions for all items to be reported24FOTWAsset data for parents of dependent students:Net worth of business and investment farms:Net worth equals current value minus debtDont include farm if you live on & operate Dont include value of small business if parent owns & controls & has 100 or fewer full-time or full-time equivalent employees25Asset data may not be required if criteria for special processing formulas (as previously mentioned) have been met and in this case, you will be prompted to skip the asset questions.However, the college will reserve the right to request asset information, so you may review and record asset information on the date you filed FAFSA.

School InformationList a Pennsylvania school with the highest cost first; first college used by PHEAA Grant to determine state grantIf you are applying to more than six schools, wait for the processed Student Aid Report (SAR) and add additional schools via the Web Strategies for Listing Colleges

26Here are some tips for completing Section 5especially if you are applying for financial aid at more than six colleges or universities.

List the schools with the earliest financial aid deadlines, regardless of the state where the schools are located.

Make sure to include your first and second choice schools.

If you are applying to more than six schools, you can add additional schools when you receive your processed Student Aid Report (SAR). We strongly recommend that students sending their financial aid information to a large number of schools file using FAFSA on the Web and sign the form using PINs. This will make adding additional schools even easier and faster.

Financial aid is awarded by each individual campus. Therefore, students applying to more than one campus location of the same school should list each location separately in Section 8 of the FAFSA if the campus has its own federal school code.SignaturesRequiredStudentOne parent (dependent students)FormatElectronic using PINSignature pagePaper FAFSA27Frequent FAFSA ErrorsSocial Security NumbersDivorced/remarried parental informationIncome earned by parents/stepparentsUntaxed incomeU.S. income taxes paid *Real estate and investment net worthMissing signaturesParent income data in student section28*Line 55 1040, line 35 1040A, line10 1040EZIf you have unusual circumstances that might affect your financial situation complete the FAFSA to the extent you can then submit as instructed and contact FAO Making CorrectionsIf necessary, corrections to FAFSA data may be made by:

Using FAFSA on the Web student and parent PIN required

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

29Go to www.fafsa.gov. Select make corrections. Both student and parent must re-sign the corrected FAFSA.FAFSA Processing ResultsReview data for accuracy

Update estimated income information when actual figures are available using the IRS data retrieval tool.30FAFSA Processing ResultsCPS notifies student of FAFSA processing results by:E-mail notification containing a direct link to students on-line SAR if students e-mail was provided on paper or electronic FAFSAStudent with PIN can view SAR on-line at www.fafsa.gov.Separate electronic record sent to colleges 10 - 14 days after filed; record also sent to state31FAFSA Processing ResultsPaper Student Aid Report (SAR) if paper FAFSA was filed and students e-mail address was not providedSAR Information Acknowledgement will be mailed if filed electronically via FAFSA on the Web and students e-mail address was not provided 32EFC-Expected Family ContributionOnce the FAFSA is processed the result is the Expected Family Contribution or the EFC. The EFC is determined by a federal formula and is an index used by the college , federal, and state government to determine need based aid eligibility.The EFC is not equivalent to out-of-pocket costs.33In theory the EFC is the amount the family is able to pay. In reality , and it is rarely the amount a family actually pays.EFC-Expected Family ContributionThe EFC stays same regardless of collegeThe EFC has two components:Parent contributionStudent contribution

34EFC Calculations Primary Factors: Dependency StatusTaxable Income: AGI (wages earned + interest dividends + other taxable income)Untaxed income & benefitsNumber in familyNumber of dependent children in college Assets

35Cost of AttendanceIncludes:TuitionFeesRoom and BoardBooks and SuppliesPersonal ExpensesTransportation Loan Fees

36COA includes both direct and indirect costs.Example :

Cost of AttendanceWill vary by collegeWill vary by housing status (commuter vs. resident)

37Financial NeedCost of Attendance (variable)-Expected Family ContributionFinancial Need (variable)38_______________________________________________________________________________________________Need Varies Based on Cost

395Sources of AidFederal StateCollege Aid Outside OrganizationsExamples: civic organizations, parents employers, high schools, churches, etc.

40Federal Pell GrantFederal Pell Grant (need-based):

$5,500 max/year for 2013-2014 yearMust have demonstrated exceptional financial need Expected Family Contribution (EFC) of $4,995 or less to qualify in 2012-13 2013-14 EFC not available yetIraq/Afghanistan award41Iraq/Afghanistan a service grant made available to a student whose parent died as a result of war after Sept 11, 2001. Mus be Pell eligible and under age 24, enrolled at least part time will get maximum Pell for year.Federal SEOG GrantFederal Supplemental Educational Opportunity Grant (FSEOG): A campus-based program; funding is limited

Annual awards of $500 to $1,000 per year (Kings College) Must have demonstrated exceptional financial needPriority to Federal Pell Grant recipientsUndergraduates pursuing 1st bachelors degree

42Federal Work Study (FWS) A campus based program; funding is limited

Employment for full time undergraduate

On or off-campus

Students paid at least minimum wage43Federal Perkins LoanA campus based program; funding limited. Must have demonstrated financial needInterest subsidized while in-school and during grace and deferment periods; 5% interest rate during repaymentRepayment period up to 10 years

44Federal Direct LoansStudent loans available under: Federal Direct Stafford Loan ProgramSchool determines loan eligibility and delivers loan proceeds to studentsAvailable to all students, regardless of needRepayment begins 6 months following graduation, withdrawal or less than half-time enrollment45Federal Direct Stafford Loan TYPES: SubsidizedBased on financial needGovernment pays interest on loan while student is enrolled6.8 % interest rate effective 07/01/2012 UnsubsidizedNon-need-based Interest paid either quarterly or capitalized upon repaymentFixed interest rate of 6.8%

AMOUNTS: Annual maximums capped by grade level$3,500 subsidized/$2,000 unsubsidized - freshmen year$4,500 subsidized/$2,000 unsubsidized - sophomore year $5,500 subsidized/$2,000 unsubsidized - junior/senior yearAdditional amounts for independent and graduate studentsLoan fees of 1% of approved amount deducted prior to disbursement.

46_______________________________________________________________________________________________Federal Direct PLUS LoanCredit-based federal loan for:Parents of dependent undergraduate students Graduate studentsInterest rate capped at 8.5%4% origination feeRepayment begins 60 days after 2nd disbursement (other repayment options available and forbearance; can defer repayment while student enrolled & can receive 6 month grace period)Annual maximum is the cost of attendance minus other financial aid student is receiving(If a parent is denied due to adverse credit history, a dependent student can access additional Unsubsidized Direct Stafford Loan)

47Pennsylvania State Grant (PHEAA)Pennsylvania State Grant (for PA Residents): $4348 max/year for 2012-13 for students attending a PA schoolEligibility based on need and familys unique circumstances and FAFSA informationPartial PHEAA Grant can transfer out-of-state to: ($600) CT, DE, MA, OH, RI, VT, DC, WV (ME eliminated 13-14)NJ, MD and NY -- $0 transfers there (some exceptions)Student must file FAFSA by May 1 for upcoming fall term

48_______________________________________________________________________________________________Pennsylvania State Grant (PHEAA)PHEAA State Grant info not available on FAFSA will be collected online via State Grant Form (SGF) on PHEAAs Account Access system PHEAA State Grants

Upon FAFSA completion, PHEAA will email student directing them to Account Access via link in emailIf student is dependent and parent provided email address, email will be sent to parent also1st time applicants have to provide 8-9 itemsStudent and parent will still have to print, sign and mail certification statements

49_______________________________________________________________________________________________Pennsylvania State Grant (PHEAA)Changes to information should be made through FAFSA correction process; will update both FAFSA and PHEAA State Grant recordsState Grant Form must be completed in order for state grant to be finalized and money credited to students account.If additional information requested or student selected for PHEAA Validation, student must provide information directly to PHEAA50_______________________________________________________________________________________________Other State-Funded Grants & Scholarships in PennsylvaniaPATH Grant (Partnership for Access to Higher Education)CHAFEE Education and Training grantDetails and additional programs at www.pheaa.org

51Other Sources of Funds Kings College Achievement PLUS *ROTC ScholarshipsOffice of Vocational RehabilitationPrivate business scholarships (e.g., Wal-Mart, Gates Foundation, etc.)Civic organizations & churches(e.g., PTA, Elks Club, Rotary, Kiwanis, etc.)Cp 33 VA benefits Yellow RibbonCheck www.kings.edu for private scholarships

52Achievement PLUS is structured program of advisement, counseling, financial assistance and tutoring designed to assist hihghly motivated students . Eligibility criteria include : first generation (neither parents graduated from college) financial guidelines will be available in February. Interview is required.Private Scholarship SearchFree Internet scholarship search engines:FinAid on the Web: www.finaid.orgCollege Board: www.collegeboard.comFastWeb: www.fastweb.comGoCollege: The Collegiate Websource: www.gocollege.comCheck www.kings.edu for private scholarships53Financing OptionsPayment plans interest free monthly installmentsAlternative (non-federal) student loans credit-worthy co-signer often required; Interest rate variable, not fixed

54Resources for StudentsInstitutional Financial Aid OfficesPHEAA: www.pheaa.org 1-800-692-7392U.S. Department of Education:www.studentaid.ed.gov www.federalstudentaid.ed.gov1-800-4FEDAID (1-800-433-3243)

55Questions? Thank you!

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