HELP! I NEED $$$MONEY$$$ FOR COLLEGE? FAFSA TIPS FOR PARENTS AND STUDENTS

Transcription

1 HELP! I NEED $$$MONEY$$$ FOR COLLEGE? FAFSA TIPS FOR PARENTS AND STUDENTS

2 STEPHANIE MILLER Assistant Director of Student Financial Services Jacksonville State University (256)

3 What do I need to do first? The first step in applying for federal funding including pell grants, other federal and/or state grants, student loans, PLUS loans and supplemental money begins with the completion of the FREE Application for Federal Student Aid, also known as the FAFSA.

4 Where can I complete the FAFSA? The FAFSA is completed online at

5 How much does it cost to apply? The FAFSA is FREE! just as the name applies FREE Application for Federal Student Aid. If a website or company asks for money to complete the FAFSA, it is not an official government site and may be a scam. Beware that no one or company can promise you a pell grant except for the federal government via the FAFSA application. Some software/game downloads may contain spyware that embeds in your computer to send you to FAFSA.com, a website that allows you to complete the FAFSA and then pay at the end. You are still completing you own FAFSA, just as if you were on the FREE FAFSA.gov website. is a government website that can help you identify scams.

6 What kind of information do I need to complete the FAFSA? Your Social Security number Your parents Social Security numbers if you are providing parent information* Your driver s license number if you have one Your Alien Registration Number if you are not a U.S. citizen Federal tax information or tax returns** including IRS W-2 information, for you (and your spouse, if you are married), and for your parents if you are providing parent information If you have not yet filed an income tax return, complete and submit the FAFSA using estimated tax information Use income records for the year prior to the academic year for which you are applying: for instance, if you are filling out the FAFSA, you will need 2012 tax information Records of your untaxed income, such as child support received, interest income, and veteran non-education benefits, for you, and for your parents if you are providing parent information Information on cash; savings and checking account balances; investments, including real estate, but not including the home in which you live; and business and farm assets for you, and for your parents if you are providing parent information **Not sure whether you will need to put your parents information on the FAFSA? Check out Am I Dependent or Independent? at or call FED-AID ( ). ** If you file your taxes before filling out your FAFSA online, you might be able to have your tax information automatically retrieved from the Internal Revenue Service and inserted in your FAFSA. e FAFSA will walk you through the process.

7 How long will it take to complete the FAFSA? It typically takes from 30 minutes 1 hr to complete the initial FAFSA. You must complete the FAFSA each year to receive aid since it uses your new taxes to determine aid eligibility.

8 How does the FAFSA get to the school that I want to attend? The FAFSA asks a student which schools that he/she would like for the FAFSA to be sent electronically. It is always a good idea to put the local college, university or community college as well as the student s main choices for attendance.

9 How do I sign the FAFSA if it is online? You and your parent must each apply for a PIN Number. This PIN Number is VERY important! It is used to sign the FAFSA every year, complete the Master Promissory Notes and Entrance Counseling for Student and Parent Loans, and view complete Student Loan details on the National Student Loan Data System You MUST keep the PIN Number in a safe place and forever.

10 What if I need help completing the FAFSA? You may attend a the FAFSA February, a program of Alabama College Goal Sunday, event near you. **JSU is hosting a FAFSA February event on Sunday, February 24 th in the Hugh Merrill Hall building at 2:00 and 3:15 pm. **Even if you are not planning to attend JSU, you may still attend and receive FAFSA help. Call the Financial Aid Office at the school you plan to attend.

11 What happens once the FAFSA is completed? The FAFSA will show you a submission page at the end, please print or this page to yourself. This page lists ESTIMATED financial aid only. It is not the financial aid award offer from the school. The amounts may change. The FAFSA will be electronically sent to the schools the student listed. Each school may require additional paperwork to complete the financial aid file before aid may be offered. Contact or visit the school website to see what the process is for completing the financial aid file.

12 Why would a school need more paperwork? The US Department of Education randomly selects student s for a process called verification. Verification is like an audit of certain information that was listed on the FAFSA. Items may include, but are not limited to: Number in Household, Number in College, IRS Tax Returns, Untaxed Benefits, Child Support Paid/Received, SNAP (food stamp) information, Identity and Statement of Education Purpose and/or High School Diploma. The school is required to obtain the required documents before offering a financial aid award offer.

13 What is a Financial Aid Award Offer or Award Letter? This the actual offer of financial aid to the student. The student may be instructed to go online to view the offer or may receive a paper document that must be signed and returned to the financial aid office. It may also direct you to information on eligibility requirements for each type of aid offered.

14 Will I be offered enough financial aid to pay for tuition, dorm, meal plan and books? It depends on the student. Most often times, the student will not have enough funding to cover all expenses if only receiving student loans.

15 What types of aid might I be offered? Grants financial aid that doesn t have to be repaid (unless, for example, you withdraw from school or stop completing academic related activity and owe a refund) Loans borrowed money for college or career school; you must repay your loans, with interest Work-Study a work program through which you earn money to help you pay for school Different types of aid may be offered depending upon the school.

16 What is the maximum Pell Grant for ? Pell Grant As of January 2013, the estimated maximum pell grant is $5645 for a full time student. This amount is typically divided in half ($2823 fall and $2722 spring.) If a student attends full time and receive a full pell grant for the fall and spring terms, summer pell grant may not be available. Not all students are eligible for the pell grant or pell grant maximum. The FAFSA determines the student s eligibility and amount. There is a Lifetime Eligiblity for pell grant of 600%. This 600% is equivalent to 6 full time years or 12 full time semesters.

17 What is the maximum student loan for a freshman for ? A Dependent Freshman can receive up to $5500 per academic year. This amount is typically divided in half ($2750 fall and $2750 spring.) Up to $3500 may be subsidized funds with the remaining $2000 as unsubsidized. Dependent Sophomore maximum = $6500 Dependent Junior/Senior maximum = $7500 Dependent Aggregate Loan Total = $31,000

18 What is the difference between a Subsidized & Unsubsidized Loan? Subsidized loans = the government pays the interest while the student is enrolled in at least half time. Once the student ceases to be half time, the interest starts accruing and the student is given a 6 month grace period to begin payment on the interest and the principal. This is a need based loan. Unsubsidized loans = the government wants the student to pay the interest every 3 months. The student can opt to not pay the interest, but the interest will build on top of interest on top of interest. The student must begin principal and current interest payments 6 months after the student ceases to be enrolled in at least a half time status. This loan is not need based. Students do not have to go through a credit check to receive a federal student loan, but it will show on a credit report. If a student loan goes into default, wages and/or the tax refund may be garnished. Interest rates are capped at 8.25%. The interest rate is calculated July 1 each year. The average payment on a $31,000 is around $250 month. The amount is dependent upon the type of loan, interest rate and interest payments made during enrollment.

19 Are there other types of aid that may be offered? TEACH Grant The TEACH Grant Program provides grants of up to $4000/year to students who are completing or plan to complete coursework needed to begin a career in teaching. Certain requirements must be met for eligibility. Contact the school for participation. Iraq Afghanistan Service Grant If your parent or guardian dies as a a result of military service in Iraq or Afghanistan, you may be eligible for this grant. Supplemental Educational Opportunity Grant (FSEOG) A student may receive between $100 and $4000 a year, depending on the financial need, when you apply the amount of other aid given, and the availability of funds at the school. State Grants Dependent upon state funding and school criteria Perkins Loans Are low-interest federal student loans for undergraduate and graduate students with exceptional financial need. Certain requirements must be met for eligibility. Contact the school for participation. Private Loans Are credit based loans that are not backed by the federal government. Contact the school for participation.

20 Loan Tips Parents may apply for a Parent PLUS loan that is credit based. If a parent is approved, the loan is in the parent s name. If the parent is denied, the student may be eligible to borrow additional unsubsidized loan in the student s name. Contact the school of attendance for application procedures. Never take more loan than needed. Loans must be repaid and can break a student financially. There are many repayment plans offered to students, even if the student does not graduate. Keep ALL paperwork so that a student knows who is servicing the loan. Loan servicers can provide valuable information on repayment options that can best suit a student s current financial status or future plans. Some loans may be forgiven if a student qualifies. has the most accurate information on student loan forgiveness.

21 RESOURCES