WHAT YOU NEED TO WHAT YOU NEED TO KNOW ABOUT KNOW ABOUT

FINANCIAL AID FOR FINANCIAL AID FOR 2012-20132012-2013

National Association of Student Financial Aid Administrators

and Slippery Rock University of Pennsylvania

Present…

What is Financial Aid, and Where Does it Come From?

What is It? Financial aid is funds provided to students and families to help pay for postsecondary educational expenses

What Are the Sources?Federal, State, Schools/Institutions, Private Organizations and Agencies

What Are the Types?Gift Aid (Scholarships, both need & non-need, & Grants) and Self-Help Aid (Loans & Work-Study Employment)

Application Process

Submit FAFSA prior to school’s deadline

Most aid awarded on “first-come, first-served” basis

To ensure maximum consideration for federal, state, and institutional aid, check information from each school to determine: Required application materials at each

FAFSA always. However, scholarship forms?, institutional aid applications? CSS Profile form?

Application deadlines

FREE Application for Federal Student Aid

(FAFSA)

Collects family’s personal and financial information used to calculate student’s Expected Family Contribution

Available in English and Spanish

File FAFSA electronically via FAFSA on the Web (www.fafsa.gov)

If you want to file on paper, you must request a paper FAFSA from the federal processor at 1-800-4FED-AID (1-800-433-3243)

NEW! Option to upload tax return information from IRS beginning in February 2012!

FAFSA on the Web (FOTW)

Web site: www.fafsa.gov 2012-13 FAFSA on the Web available

on January 1, 2012 FAFSA on the Web Worksheet:

Used as “pre-application” worksheet Questions follow order of FAFSA on the Web

FAFSA on the Web (FOTW) at www.fafsa.gov

IRS Data Retrieval Tool

While completing FAFSA on the web, applicant may submit real-time request to IRS for tax data participation is totally voluntary

IRS will authenticate taxpayer’s identity

If match found, IRS sends real-time results to applicant in new window

Applicant chooses whether or not to transfer data to FAFSA on the web

IRS Data Retrieval Tool

Becomes available in early February 2012 May reduce the number of supporting documents requested

of you by the financial aid office during “verification” Families can’t use it if:

Tax filing status is “married filing separately” or “head of household” Filed an amended tax return Filed a foreign tax return Filed taxes via paper within last 8 weeks

Those choosing not to use IRS Data Retrieval will be required to explain to school why their info is more accurate than their IRS information.

Frequent FAFSA Errors

Failure to sign FAFSA!!! Failure to indicate an interest in loans or

work Incorrect Social Security Numbers Divorced/remarried parental information Income earned by parents/stepparents Untaxed income U.S. income taxes paid Household size Number of household members in college Real estate and investment net worth

FAFSA Processing Results

CPS notifies student of FAFSA processing results by:

E-mail notification containing a direct link to student’s on-line SAR if student’s e-mail was provided on paper or electronic FAFSA

Student with PIN may view SAR on-line at www.fafsa.gov

Review results for accuracy; update any “estimated” info with “actual” once available

Do not let more than two weeks go by without checking on the status of your FAFSA!

CAUTION!

Avoid being charged a fee to file the Free Application for Federal Student Aid Completion and processing of the FAFSA are

FREE If filing via FAFSA on the Web, be sure to go

directly to www.fafsa.gov (also, www.fafsa.ed.gov)

Contact financial aid office for help completing the FAFSA

ERRORS can be COSTLY!

Errors on the FAFSA or supplemental forms may DELAY application processing and result in the LOSS of financial aid funds.

Read the instructions and complete all forms/screens carefully!

Role of the Financial Aid Office

Determines aid eligibility using federal formula

Packages aid depending on availability of funds

Sends award notification including: Award amount for each program for which

student is eligible Disbursement methods and time frames Terms and conditions of each award

Definition of “Need”

Cost of attendance (COA)

– Expected family contribution (EFC)

= Need

Cost of Attendance

Direct costs, such as tuition & fees (and billable room and meals if living on campus)

Indirect costs, such as off-campus housing and food, books, and other educationally-related non-billable charges. May also include such things as transportation, and miscellaneous personal expenses (including documented costs for a personal computer), loan fees, study abroad costs, dependent care expenses, disability-related expenses.

Varies widely from college to college

Expected Family Contribution (EFC)

The amount the family is expected to contribute toward educational costs for the year based on the information reported on the FAFSA. Takes into consideration: Base year (2011) income (student and parent)

Assets (student and parent)

Household Size Number of children in household in college

“Need” Varies Based on “COA”

X

Y

Z

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

1

2

3

EFC EFC

X

Y

Z

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

1

2

3

EFC EFC

Independent Student Definition for 2012-13

Born before January 1, 1989;

Graduate or professional student;

Married;

Has children or dependents (other than a spouse) for whom the student provides more than half support;

Orphan or ward/dependent of the court;

Veteran of U.S. Armed Forces or on active duty;

Specific circumstances related to legal guardianship, foster care, emancipated minor, and homelessness; and

Determined to be “independent” by financial aid administrator based on exceptional unusual circumstances

Review FAFSA for specific information regarding many of the options above

GIFT AIDGrants & Scholarships (examples) Federal

Pell Grant FSEOG TEACH

State PA State Grant, Chafee ETG Grant NETS Scholarship

Institutional Academic & Athletic Scholarships Need-Based Grants

Private Rotary, Kiwanis, Gates (find more at

www.fastweb.com)

Pennsylvania State Grant (PHEAA)

Available to Pennsylvania residents The application is the FAFSA PHEAA also sends a “State Grant Form (SGF)”

to first time applicants. Sent via EMAIL to student & parent email addresses from

FAFSA. Links student to the “Account Access” site on PHEAA’s webpage

Deadlines: May 1 deadline applies to those enrolling in a degree program,

and all renewal applicants. Non-renewal applicants may file by August 1 if planning to

enroll in Business, Trade or Technical Schools , Hospital Schools of Nursing or Two-year Terminal Program .

Self-Help Aid

Loans Federal Perkins Loan

(5%)

Federal Direct Stafford Loan (6.8% in 2012-13)

Institutional and Private Loans

EmploymentEmployment Federal Work-Study

State Work-Study Programs

Institutional Work-Study Programs

Federal Direct Stafford Loans

Subsidized: Must demonstrate “need” Unsubsidized: Not based on “need” Basic annual loan limits (combined

subsidized and unsubsidized): $5,500 for freshmen $6,500 for sophomores $7,500 for juniors and seniors $8,500 for each year of grad/professional study

Additional unsubsidized loan eligibility for independent undergraduate, graduate, and dependent students whose parents are denied a PLUS Loan.

www.StudentLoans.gov is site for Loan Counseling and Promissory Notes

Federal Parent PLUS Loans Parent loan program for parents of dependent

undergraduate students Annual loan limit: COA minus other aid Interest Rate: 7.9% Loan fees Repayment begins once loan is fully disbursed.

“Forbearance” option available to postpone repayment while student is in school.

Additional unsubsidized Stafford Loan eligibility for dependent students whose parents are “denied” a PLUS Loan

www.StudentLoans.gov is site for PLUS Application and Promissory Note

Special Circumstances

Cannot be reported on the FAFSA; the FAFSA creates a “baseline” EFC

Family must send explanation of circumstances to financial aid office at each college

College will review special circumstances May request additional documentation Decisions are final and cannot be appealed to

U.S. Department of Education

Where Do I Go From Here?

Obtain and review admissions and financial aid websites and materials for each school to which you are applying

Meet all application deadlines Complete FAFSA and other application

materials, such as College Scholarship Service’s PROFILE application, if required by school or state agency

Submit all requested follow-up documents

Investigate other sources of funding

Other Resources

College/University Payment Plans

Federal Tax Credits (IRS Publication 970)

State Offices of Vocational Rehabilitation (OVR)

ROTC scholarships or stipends

Bureau of Indian Affairs (BIA) Grants

Corporation for National and Community Service (AmeriCorps) – www.americorps.gov

Veteran’s benefits – www.gibill.va.gov

Avoid Being Scammed

To check legitimacy of scholarship search services or individuals, for information about financial aid scams, and tips to avoid being scammed visit these Web sites:

U.S. Department of Education: www.studentaid.ed.gov/students/publications/lsa/index.html

Federal Trade Commission: www.ftc.gov/bcp/conline/publs/alerts/ouchart.htm

Better Business Bureau: www.bbb.com

Private Scholarship Searches

Free Internet scholarship search engines:

FinAid on the Web: www.finaid.org College Board: www.collegeboard.com FastWeb: www.fastweb.com

Other Possibilities: HIGH SCHOOL GUIDANCE OFFICE! Local library resources Local businesses and civic organizations Parents’ employers

Good Luck!