Please silence your cell phones! Thank you for being considerate to the people around you.

Transcription

1 Please silence your cell phones! Thank you for being considerate to the people around you.

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3 Your Presenter Your Presenter Fran McKeown Higher Education Access Partner Southeastern Region PA Higher Education Assistance Agency (PHEAA)

4 Meet the Team William Lindsey Manager MARIAN HARGRAVE Northwest Region AMY SLOAN Northwest Region MARLA KANE North Central Region LINDA PACEWICZ Northeast Region MICHAEL BURKE Southeast Region FRANCES MCKEOWN Southeast Region KIMBERLY MCCURDY Allegheny County RON FELDER Philadelphia WENDY DUNLAP Southwest Region JAYEANN HARR Southwest Region JULIE FONTANA South Central Region DAN WRAY South Central Region SONYA MANN-MCFARLANE Cumberland Valley Region TIFFANIE DEVAN Cumberland Valley Region

5 WHAT IS THE FAFSA?

6 fafsa.gov

7 Don t Fear the FAFSA The FAFSA is the primary way to access a wide variety of financial aid sources $$$

8 Don t Fear the FAFSA The FAFSA (Free Application for Federal Student Aid) is a federal form used to determine student eligibility for the following:» Federal programs, such as Pell Grants, work-study, and student loans» State programs, such as Pennsylvania State Grant, and other special programs» School programs, such as need-based grants and scholarships

9 WHEN TO APPLY?

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11 Know When To Apply Federal Deadlines - Apply anytime after October 1st for the upcoming academic year (July 1st through June 30th)» Seniors: after Oct 1 st 2016 Juniors: after Oct 1 st 2017 School Deadlines some WILL be earlier PA State Grant Deadlines for FAFSA» May 1, 2017 First-time and renewal students attending colleges, universities & college transferrable programs (excluding community colleges)» August 1, 2017 First-time students attending community college; a business, trade or technical schools, hospital school of nursing; Open Admissions Institutions or a 2-year non-transferrable degree program at a Jr or 4-year college.

12 WHAT WILL I NEED?

13 Items needed to complete the FAFSA» FSA ID (UserName and Password obtained at fsaid.ed.gov)» Social security numbers» Drivers license (student only; this information is optional)» 2015 Federal income tax returns (1040, 1040A or 1040EZ)» 2015 W-2 forms from all employers» Current bank statements (checking and savings)» Current business and farm records» Records of any stocks, bonds and other investments, including 529 accounts» Additional untaxed income tax records may be needed such as: Veteran s non educational benefits, child support paid/received and workers compensation.» Alien registration or permanent resident card (if not a US citizen)

14 FSA ID Get your FSA ID PRIOR to sitting down to complete the FAFSA Sign the FAFSA Electronically The student and 1 parent will need an FSA ID Do NOT lose it; write it down and store in a safe place (write down the challenge question answers, too) Do NOT share it with anyone You will need your FSA ID every year you file a FAFSA and to log in to sign loan paperwork

15 FAFSA TIPS

16 FAFSA Tips Make sure you re on the government site (fafsa.gov) Don t mix answers for student and parent information Ensure SSN accuracy Gender question is optional answer it! Use addresses and phone numbers that will not change. Have federal income tax and other related information as references

17 More FAFSA Tips Don t use your browser navigation buttons. Use the navigation buttons within the FAFSA. If you are unable to use the IRS Data Retrieval Tool, you can manually type your tax return info and try the IRS Data Retrieval Tool again later. Remember to complete the PA State Grant form from the confirmation page. Don t delay know your school deadlines and try to meet them!

18 Don t Forget Hyperlink directly from the last page of your FAFSA to the PA State Grant Form

19 Who Is Independent? 24 or older on Jan 1st of award year (January 1, 1994) Married Veteran (includes active duty personnel) Working on graduate level degree Emancipated minor or in legal guardianship Orphan, in foster care or ward of the court at anytime when student was age 13 or older Have legal dependents other than spouse Student deemed homeless by proper authority (PA State Grant status can be different)

20 Whose Info Goes on the FAFSA? Divorced or separated parents (The parent the student lived with the most over the past 12 months. If equal, then the parent who provided more than 50% of student s support) Stepparents - YES Adoptive parents - YES Foster parents - NO Legal guardians - NO Anyone else the student is living with - NO

21 An Up-Close Look: THE FAFSA

22 FAFSA.gov Click here for initial FAFSA Click here for saved applications, corrections, or renewal FAFSA

23 Login Where you see the student bar, only enter student information. Parent information goes in a separate section. Review Help and Hints sections to answer questions

24 Enter FSA ID Enter your info and click Next

25 Enter Other Info If no FSA ID, enter this info and click Next. Using the FSA ID is recommended, though.

26 Select the correct FAFSA year If starting classes in summer, check with your college.

27 Save Key Can be anything just so you can get back into the application e.g., the family dog s name, your favorite color, last 4 of SSN, etc.

28 More Help Information. If you don t want to read these help topics, just click NEXT.

29 Student Demographics Don t forget middle initial Use the previous and next buttons within the application

30 Student Eligibility Male students get the selective service question; Answer yes to the workstudy question; Have you received FSA? (most freshmen will answer no )

31 Postsecondary School Selection List up to 10 schools List the school you re most likely to attend first Enter school code or look them up

32 High School Must list and confirm your high school. Easiest to enter city and state and click confirm. Then select the correct school.

33 Postsecondary school selection Click and add schools to your list

34 Housing Selection Can change the order (remember to list the school most likely to attend first) Select Housing Status

35 Dependency All no answers = dependent student (most HS students) Any Yes answers = additional questions to determine independent status

36 FAFSA Tips Dependent students must provide parent data Note: If unable to provide parent data, it will be a special circumstance that will be up to the school and PHEAA to determine status

37 Parent Demographics Marital status (stepparent info is required) Determine household size and number in college Note: Parent s last names must match SSN

38 Financial Information (Parent) Bar changes to Parent only answer information for the parent(s) here Already completed opens up the IRS Data Retrieval window

39 Select which parent, enter FSA ID, then click Proceed to IRS to leave the FAFSA site. Then click OK again at the IRS site

40 These fields are pre-filled based on FAFSA responses Complete the address information as it appears on your tax return

41 Click the check-box Then click Transfer Now

42 It will tell you it s been successful All items transferred are marked. Do not make changes to these items. List parent(s) income from work (2015) Dislocated worker means laid off or unemployed

43 Financial information Credits» Education credits» Child support paid Untaxed income» (payments to taxdeferred pensions listed on W-2 forms, box 12)» Child support received Do not change items Transferred from the IRS

44 Financial Information Other untaxed income not reported elsewhere click on the untaxed income button to see what counts

45 Student Financial Information Bar switches back to student Use IRS DRT (or you can manually enter information) If student did not file or wasn t required to file, answer appropriately (you would still report any income earned or untaxed income paid to the student)

46 Student info Students list their cash, savings, and investment values as of the date they file the FAFSA

47 Sign and submit (Student) You are not a preparer (that is if you paid someone to do this for you) Agree to the statement and click Sign

48 Sign and submit (Parent) Select which parent has the FSA ID Agree to the statement Type in their FSA ID Click Sign Click Submit My FAFSA Now

49 Confirmation Page Print this page for your records Shows your EFC, Pell, and Loan

50 State Grant Form (SGF) Click on Start Your State Application to complete the SGF First-time filers only

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52 Print & Mail

53 What Happens Next Student receives an from FSA

54 What Happens Next Student can check state grant status on their Account Access at PHEAA.org

55 Forms Are Filed NOW WHAT?

56 The Process Continues Department of Education s Central Processing System uses the information to calculate and create your Need Analysis EFC is calculated SAR/ISIR - reports your eligibility for aid to you and your school choices Grant eligibility is calculated Schools receive your results You apply/applied to your school choices Once accepted - schools produce Award Letters (aid packages) You compare Award Letters Determine true costs of school and make choices

57 Net Price Calculators The Higher Education and Opportunity Act (HEOA) of October 2011 requires schools to offer a Net Price Calculator on their websites Enables current and prospective students, families and consumers to determine an estimate of an individual net price at a particular institution. ESTIMATED data must be provided by each institution:» Total price of attendance» Tuition, Fees, Room and Board» Expenses (ie. personal, transportation)» Estimated total merit and need-based grant aid» Estimated net price (attendance minus grant aid) Does not include scholarships

58 Calculations: THE EXPECTED FAMILY CONTRIBUTION (EFC)

59 Determining Need-Based Eligibility Student submits FAFSA Family undergoes Need Analysis Expected Family Contribution (EFC) is determined based on:» Parent income and assets» Student income and assets» Family size» Number of children in college» Age of the older parent This is NOT necessarily the amount you will pay each year!

60 Expected Family Contribution (EFC) The EFC is a number derived from a federal formula which considers a family s income, assets and other factors. In theory, the EFC is the amount a family can reasonably be expected to pay toward college expenses each year. In reality, it is not the amount a family is required to pay and it is rarely the amount a family actually pays.

61 How Is the EFC Calculated? NOT AN ASSET: Home, personal property, qualified retirement funds, value of life insurance, value of jewelry and other possessions COA (Cost) - EFC = NEED

62 How Is the EFC Calculated? Asset Protection Allowance is applied against parent s reported assets» EFC calculation roughly uses 6% of parent asset contribution and 20% of student contribution» Student income contribution used in the calculation: 50% of amounts over $6,420 COA (Cost) - EFC = NEED» Parent contribution divided by number of children in college at the same time

63 Calculations: COST OF ATTENDANCE (COA)

64 What School Costs Are Considered? School costs include: Tuition and fees Room and board Books and supplies Transportation Miscellaneous living expenses Child care, if necessary You can receive financial aid up to the total of the school costs, regardless of your EFC!

65 Calculations: FINANCIAL NEED & AWARDS

66 Financial Need Schools/colleges receive financial aid information and calculate financial need Financial Aid Office (FAO) packages student based on financial need and available funding (varies from school to school) Financial aid award letter sent to student School cost $26,000 EFC $3,000 Financial Need $23,000

67 Financial Aid Award Letter Official notification from school about financial aid, terms and conditions Lists the type and amount of each award to be received Describes what must be done to accept or reject any award Discloses students rights, responsibilities and academic requirements

68 Reality Check Your financial aid package may not meet all of your calculated financial need. Be sure to determine how much will be required of you in out-of-pocket costs and loans.

69 Reviewing the Aid Package Students and parents should be sure they know and understand the following:» How much of the financial aid is free money?» Which awards are based on need, and which are based on merit?» Are there any conditions on the free money; in particular, is there a GPA requirement?» Will awards change from year to year?» Will institutional awards increase as tuition increases?» Will loans be needed? If so, how much?

70 Comparing Packages Cost $20,000 $30,000 $50,000 EFC $ 3,000 $ 3,000 $ 3,000 Need $17,000 $27,000 $47,000 Free Money $ 6,000 $ 8,000 $18,000 Loans $ 5,500 $ 7,000 $ 8,000 Work-Study $ 0 $ 2,000 $ 3,000 TOTAL AID $11,500 $17,000 $29,000 Gap = (Cost Aid) Actual Cont. = (Cost Free $) $ 8,500 $13,000 $21,000 $14,000 $22,000 $32,000

71 The Bottom Line Don t borrow more to get your education than you can reasonably expect to earn during your first year in the workforce. Recommended by the National Endowment for Financial Education (NEFE). Keeps your loan payments less than 12% of your gross pay.

72 Things to Remember Get your FSA IDs PRIOR to completing the FAFSA (FAFSA.gov or FSAID.ed.gov) File your FAFSA at FAFSA.gov Use the IRS DRT If starting classes in summer, check with your school Complete your FAFSA and State Grant Form at the same time Meet your school s priority filing DEADLINES State Grant Deadline is May 1, 2017 School Deadlines may be earlier! Research costs: mysmartborrowing.org

73 Resources for filing the FAFSA and SGF PHEAA Federal Student Aid (800-4-FED-AID)

74 QUESTIONS?

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