You Can Afford College

Transcription

1 You Can Afford College

2 Topics We Will Discuss Tonight What is financial aid? Cost of attendance (COA) Expected family contribution (EFC) Financial need Categories, types, and sources of financial aid Free Application for Federal Student Aid (FAFSA) Special circumstances 2

3 What is Financial Aid? Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses

4 What is Cost of Attendance (COA)?

5 What is Expected Family Contribution (EFC)? Amount family can reasonably be expected to contribute Stays the same regardless of college Two components Parent contribution Student contribution Calculated using data from a federal application form and a federal formula

6 What is Financial Need? Cost of Attendance Expected Family Contribution = Financial Need

7 Categories of Financial Aid Need-based aid Non-need-based aid

8 Types of Financial Aid Scholarships Grants Gift Aid Loans Employment Self-Help Aid

9 Gift Aid: Scholarships Money that does not have to be paid back Awarded on the basis of merit, skill, or unique characteristic

10 Gift Aid: Grants Money that does not have to be paid back Usually awarded on the basis of financial need

11 Self-Help Aid: Loans Money students and parents borrow to help pay college expenses Repayment usually begins after education is finished Only borrow what is really needed Look at loans as an investment in the future

12 Self-Help Aid: Work-Study Employment Allows student to earn money to help pay educational costs - A paycheck; or - Nonmonetary compensation, such as room and board Student may opt whether or not to work or number of hours to work

13 Employers Sources of Financial Aid Federal government States Colleges and universities Private sources Civic organizations and churches

14 Federal Government Largest source of financial aid Aid awarded primarily on the basis of financial need Must apply each year using the FAFSA

15 Federal Student Aid Programs Federal Pell Grant Iraq and Afghanistan Service Grant (IASG) Teacher Education Assistance for College and Higher Education (TEACH) Grant Federal Supplemental Educational Opportunity Grant (FSEOG Federal Perkins Loan Federal Work-Study (FWS) Subsidized and Unsubsidized Federal Direct Student Loans (Direct Loans) PLUS Loans 15

16 -Check paper FAFSA or FAFSA on the Web website States Residency requirements usually apply Award aid on the basis of both merit and need Use information from the FAFSA and/or state aid applications Deadlines vary by state

17 Colleges and Universities Award aid on the basis of both merit and need Aid may be gift aid or self-help aid Use information from the FAFSA and/or institutional applications Deadlines and application requirements vary by institution -Check with each college or university

18 Private Sources Foundations, businesses, charitable organizations Deadlines and application procedures vary widely Begin researching private aid sources early

19 Civic Organizations and Churches Research what is available in community To what organizations and churches do student and family belong? Application process usually occurs during spring of senior year Small scholarships add up!

20 Employers Companies may have scholarships available to the children of employees Companies may have educational benefits for their employees

21 Free Application for Federal Student Aid (FAFSA) A standard form that collects demographic and financial information about the student and family May be filed electronically or using paper form - Available in English and Spanish

22 FAFSA Information used to calculate the expected family contribution (EFC) - Amount of money a student and his or her family may reasonably be expected to contribute towards the cost of the student s education for an academic year Colleges use EFC to award financial aid

23 FAFSA May be filed at any time during an academic year, but no earlier than the January 1 st prior to the academic year for which the student requests aid For the academic year, the FAFSA may be filed beginning January 1, 2016 Most colleges set FAFSA filing deadlines

24 FAFSA on the Web (FOTW) Website: FAFSA on the Web available on January 1, 2016 FAFSA on the Web Worksheet: -Used as pre-application worksheet -Questions follow order of FAFSA on the Web

25 FAFSA on the Web Good reasons to file electronically: Built-in edits to prevent costly errors Skip-logic allows student and/or parent to skip unnecessary questions Option to use Internal Revenue Service (IRS) Data Retrieval Tool to import tax data

26 FAFSA on the Web Good reasons to file electronically: More timely submission of original application and any necessary corrections More detailed instructions and help for common questions Ability to check application status online Simplified application process in the future

27 IRS Data Retrieval Tool While completing FOTW, applicant may submit real-time request to IRS for tax data IRS will authenticate taxpayer s identity If match found, IRS sends real-time results to applicant in new browser window Applicant chooses whether or not to transfer data to FOTW

28 IRS Data Retrieval Tool Available early February 2016 for processing cycle Participation is voluntary Reduces documents requested by financial aid office

29 IRS Data Retrieval Tool Some will be unable to use IRS DRT Examples include: -Filed an amended tax return -No Social Security Number (SSN) was entered -Student or parent married but filed separately

30 Sign FAFSA electronically Not required, but speeds processing May be used by students and parents throughout aid process, including subsequent school year Only the owner should create a FSA ID FSA ID

31 FAFSA on the Web Worksheet FAFSA on the Web Worksheet contains: Instructions Questions that gather basic information on student and parent, if applicable

32 General Student Information Social Security Number Citizenship status Marital status Drug convictions Selective Service registration Level of parents school completion

33 Student Dependency Status FAFSA asks questions to determine dependency status for federal student aid (not IRS) purposes: If all No responses, student is dependent If Yes to any question, student is independent 33

34 Information About Parents of Dependent Students Tax, income, and other financial information Dislocated worker status Receipt of federal means-tested benefits Assets Untaxed income

35 Information About Student (and Spouse) Tax, income, and other financial information Dislocated worker status Receipt of federal means-tested benefits Assets Untaxed income

36 Additional Information College and housing information FAFSA preparer information Certification of Statement of Educational Purpose

37 Signatures Required - Student - One parent (dependent students) Format for submitting signatures - Electronic using FSA ID - Signature page - Paper FAFSA

38 Frequent FAFSA Errors 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

39 FAFSA Processing Results Central Processing System (CPS) notifies student of FAFSA processing results by: Paper Student Aid Report (SAR) if paper FAFSA was filed and student s address was not provided SAR Acknowledgement if filed FAFSA on the Web and student s address was not provided

40 FAFSA Processing Results CPS notifies student of FAFSA processing results by: - notification containing a direct link to student s online SAR if student s was provided on paper or electronic FAFSA Student with FSA PIN may view SAR online at

41 FAFSA Processing Results Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA is submitted College reviews ISIR - May request additional documentation

42 Student Aid Report Review data for accuracy and correct any errors Update estimated tax information when actual figures become available

43 Making Corrections If necessary, corrections to FAFSA data may be made by: Using FAFSA on the Web ( if student has a FSA ID; Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or Submitting documentation to college s financial aid office

44 Special Circumstances Cannot be documented using FAFSA Send written explanation and documentation to financial aid office at each college College will review and request additional information if necessary Decisions are final and cannot be appealed to U.S. Department of Education

45 Special Circumstances Change in employment status Unusual medical expenses not covered by insurance Change in parent marital status Unusual dependent care expenses Student cannot obtain parental information

46 The Maryland Higher Education Commission Office of Student Financial Assistance An Overview of State Financial Aid Programs

47 Overview of State Programs Need-based Programs Legislative Programs Unique Population Programs Other State Aid Programs

48 How to Apply for Need-based State Aid File the Free Application for Federal Student Aid FAFSA File on-line at Complete all items Include minimum of one Maryland Institution All schools included will receive the FAFSA information If eligible, first Maryland school s COA will be used

49 Student Aid Report (SAR) Expected Family Contribution (EFC) Your SAR will provide your Expected Family Contribution (EFC) Your EFC combined with your college cost of attendance (COA) determines your eligibility for a Federal Pell Grant and other needbased grants, including State aid

50 Calculation of Financial Need COA minus EFC minus Pell = Financial Need

51 Need-based Financial Aid Programs Howard P. Rawlings Educational Assistance & Guaranteed Access Grant Part-Time Grant

52 Educational Assistance Grant $400 - $3,000 annually New and renewal students must file the FAFSA by March 1 Each Year OSFA will electronically receive FAFSA information if submitted on time Students must demonstrate financial need (Students with the greatest need and lowest EFC are awarded first) Students must enroll as full-time, degree-seeking undergraduates at a 2- year or 4-year college or university in Maryland Parents and students must be Maryland residents

53 Guaranteed Access Grant $400 - $15,500 annually Apply as a high school senior, unless extenuating circumstances prevents it Must submit a Guaranteed Access Grant application and FAFSA FAFSA encouraged by March 1 Minimum 2.5 cumulative, unweighted high school GPA Must complete a college preparatory program Students must have a high-school diploma; those with a GED are not eligible Must enroll as full-time, degree-seeking undergraduates at a 2-year or 4-year college or university in Maryland Parents and students must be Maryland residents

54 Guaranteed Access Grant Guaranteed Access Grant Family Income Requirements Family Size 130% OF POVERTY LEVEL (NEW) 150% OF POVERTY LEVEL (RENEWAL) 1 $ 14,937 $ 17,235 2 $ 20,163 $ 23,265 3 $ 25,389 $ 29,295 4 $ 30,615 $ 35,325 5 $ 35,841 $ 41,355 6 $ 41,067 $ 47,385 7 $ 46,293 $ 53,415 8 $ 51,519 $ 59,445 Each additional person add $5,226 $6,030

55 Part-Time Grant $200 - $2,000 annually Funds are allocated directly to Maryland colleges College financial aid offices select students: Enrolled as part-time (6-11 credits per semester) undergraduates, or Dually enrolled in high school Students must demonstrate financial need

56 Senatorial and Delegate Scholarships All students may apply: High school seniors Undergraduates Graduates Career or technical school students May be used for: Full-time or part-time enrollment Maryland residents

57 Senatorial Scholarship $400 - $9,400 annually File FAFSA by March 1 Demonstrate financial need Some awards are renewable for an additional 3 years Contact Senator for application and renewal procedures Note: Senators have the option to award; some do not select recipients but put their funds into other programs administered by OSFA

58 Delegate Scholarship $200 - $9,400 annually Contact Delegate for application procedure Must apply each year for an award; they are not renewable FAFSA may not be required Note: Delegates have the option to award; some do not select recipients but put their funds into other programs administered by OSFA

59 Unique Major Funds awarded for the Senatorial and Delegate scholarships may be used at an out-of-state institution if the student s academic program is not offered at a Maryland institution Review OSFA website under Financial Aid Applications, Senatorial and Delegate Scholarship programs, for more information on how to apply

60 Edward T. Conroy Memorial Scholarship Maximum award $9,468 annually Apply through the institution s financial aid office You must be: The son or daughter of a member of the United States Armed Forces who died or who suffered a service connected 100% permanent disability as a result of military service A veteran who suffers a service connected disability of 25% or greater as a result of military service and has exhausted or is no longer eligible for federal veterans educational benefits The son, daughter, or surviving spouse (who has not remarried) of a victim of the September 11, 2001 terrorist attacks who died as a result of the attacks on the World Trade Center in New York City, the attack on the Pentagon in Virginia, or the crash of United Airlines Flight 93 in Pennsylvania

61 Edward T. Conroy Memorial Scholarship (Continued) You must be (continued): A POW/MIA of the Vietnam Conflict or his/her son or daughter The son, daughter, or surviving spouse (who has not remarried) of a State or local public safety employee or volunteer who died in the line of duty or who was 100% disabled in the line of duty A State or local public safety employee or volunteer who became 100% disabled in the line of duty

62 Tuition Waiver: Foster Care Recipients Students who resided in an out of home placement in Maryland: On their 13th birthday and were then adopted from the out of home placement after their 13th birthday; or At the time they graduated high school or earned a GED Attend a public college in Maryland File the FAFSA every year no later than March 1 Tuition and fees not covered by grants or scholarships are waived Must enroll as a degree-seeking student before age 25 Be sure to discuss with the financial aid officer at the college or university List of eligible students is sent to the public colleges and universities Contact social worker if not on the list

63 Tuition Waiver: Unaccompanied Homeless Youth Be declared as an unaccompanied homeless youth who is not in the physical custody of a parent or guardian AND Be declared a homeless child or youth as defined by the McKinney-Vento Homeless Assistance Act The Financial Aid Administrator must verify that the youth qualifies as an Independent student under the federal College Cost and Reduction & Access Act.

64 Tuition Waiver Unaccompanied Homeless Youth AWARD AMOUNT The tuition waiver provides exemption from paying any tuition and mandatory fees at a Maryland public institution of higher education You are exempt from paying tuition and mandatory fees at a public college in Maryland. The tuition waiver only applies to tuition and fees. Tuition is determined by the individual public institution of higher education and includes cost for tuition, registration fees as well as all fees that are required as a condition of enrollment. Tuition does not include room, board, books, and transportation.

65 The youth must: Tuition Waiver Unaccompanied Homeless Youth ELIGIBILITY CRITERIA Complete and file the Free Application for Federal Student Aid (FAFSA) by March 1 st of each year. Be enrolled on or before he or she reaches the age of 25.The youth continues to be exempt from paying tuition and fees until 5 years after first enrolling as a candidate for an associate, bachelors, or a vocational certificate at a Maryland public institution of higher education. Be enrolled full time or part time for an associate, bachelors, or a vocational certificate at a Maryland public institution of higher education. Students are eligible to receive the Unaccompanied Homeless Youth Tuition Waiver for the following semesters: A. Fall B. Winter C. Spring D. Summer

66 AACC Financial Aid Office Contacts Rich Heath, FAD Notice of Nondiscrimination: AACC is an equal opportunity, affirmative action, Title IX, ADA Title 504 compliant institution. For information on AACC s compliance and complaints concerning sexual assault, sexual misconduct, discrimination or harassment, contact the federal compliance officer at or Maryland Relay