FEDERAL UPDATE AND FAFSA INFORMATION. NDASFAA High School Counselors Workshop October 2016

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1 FEDERAL UPDATE AND FAFSA INFORMATION NDASFAA High School Counselors Workshop October 2016

2 FEDERAL UPDATE AND FAFSA INFORMATION Goals for Today: Overview of changes for upcoming award year Overview and updates of financial aid programs See some screens that students use to apply for federal aid Explain what Prior-Prior Year means and how this change will impact students Provide opportunity to ask questions

3 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 Work-Study (FWS) Federal Perkins Loans Subsidized and Unsubsidized Federal Direct Student Loans (Direct Loans) Federal PLUS Loans

4 FEDERAL STUDENT AID PROGRAMS FEDERAL PELL GRANT Maximum grant for will be $5,920 or $2,960 per semester. The amounts vary from approximately $600 to $5,920 but not all students are eligible. Amount based upon enrollment status (number of credits enrolled in) and EFC expected family contribution. Typically, family income less than $45,000 for a family of three and then income goes up to qualify with more in family and more than one in college. No Deadline to apply.

5 FEDERAL STUDENT AID PROGRAMS Campus Based Funds Priority Funding Deadline for next year will vary depending upon the college/university in ND February 1 st to April 15 th. Supplemental Educational Opportunity Grant Funding varies between $200 - $1,000 Must be Pell Grant eligible Federal Work Study Program Funding typically at $1,500 - $2,000 per academic year Federal Perkins Loan* Funding varies between $1,000 - $2,000 * will be last year colleges/universities can offer this program.

6 FEDERAL STUDENT AID PROGRAMS Federal Subsidized Direct Loan Financial need is a determining factor. Federal Government pays interest while student is in school. Interest MAY begin accruing immediately after attendance ceases! No priority funding deadline % origination fee In essence student is charged 1.069% for loan fees. Example student borrows $1000 federal government will collect $10.69 so student will receive $ All federal loans are processed through federal government

7 FEDERAL STUDENT AID PROGRAMS Federal Subsidized Direct Loan (continued) Base annual loan limits (combined subsidized and unsubsidized): $3,500 for 1 st year undergraduates $4,500 for 2 nd year undergraduates $5,500 for each remaining undergraduate year $23,000 maximum to borrow for undergraduate programs. (Subsidized) Federal Unsubsidized Direct Loan Additional $2,000 unsubsidized for dependent students Additional $6,000 unsubsidized for independent students (Freshman/Sophomore) Additional $7,000 unsubsidized for independent students (Junior/Senior) Example: Freshman dependent student could receive up to $5,500 in Federal Loan eligibility depending upon other financial student assistance but only $3500 is subsidized

8 FEDERAL STUDENT AID PROGRAMS Parent Loan for Undergraduate Students (PLUS) Parent borrows money on behalf of student. Loan max. is difference between cost of education and other financial assistance (observation parents are borrowing to cover miscellaneous expenses indirect costs). Parents need to meet credit criteria. Fixed interest rate currently 6.31%. Repayment begins after final disbursement which normally means February 1. Parent applies for PLUS at: ALL Federal Aid REQUIRES completion of FAFSA each year!

9 FEDERAL STUDENT AID PROGRAMS Interest Rate Origination Fee Direct Loan 3.76% 1.069% PLUS Loan 6.31% 4.276% Perkins Loan 5.00% 0.00% Private Loan 2.35% % Typically 0.00%

10 STATE FINANCIAL AID PROGRAMS North Dakota State Grant Award maximum is $1,950 per year. Award will be prorated based upon enrollment status so student need not be full time. Priority funding deadline as soon as possible first come, first serve. Requires completion of FAFSA Must be a graduate of a ND high school and be a ND resident Must attend a ND college or university to receive a state grant ND State Grant is a need based program Other aid received can/will affect eligibility.

11 STATE FINANCIAL AID PROGRAMS North Dakota Indian Scholarship $1,350 per year as a full time student July 1 deadline (separate application) North Dakota Scholars Program Typically 33+ ACT score by June of junior year Full tuition up to UND/NDSU rate Technology Occupations Loan Forgiveness Program $1,000 loan forgiveness for up to three years Teacher Shortage Loan Forgiveness Program $1,000 loan forgiveness for up to three years NDUS Tuition Waivers Peace Officers, Fire Fighters, Senior Citizens

12 STATE FINANCIAL AID PROGRAMS ND Academic and Career and Technical Scholarships Generally eligible for $1,500 per year for up to four years: Scholarships are renewable for full-time students who maintain GPAs of 2.75 or higher. Full-time for this scholarship means enrollment in at least twelve credits during a student's first two semesters and enrollment in at least fifteen credits during each semester thereafter. If a student is not enrolled full-time (as defined above), the scholarship will be revoked until the student is enrolled full-time. The scholarship will be reinstated the next semester the student is enrolled full-time.

13 INSTITUTIONAL AID Grants Determined by financial need normally given by private schools. Scholarships Academic Dependent upon each school s criteria Participation (music, drama, athletic etc.). Students need to apply directly to the school separate application(s) and deadline(s). Awards vary depending on each school. Normally must be enrolled full time. School may offer a number of different scholarships but student may need to apply for each one separately. Waivers Cultural Diversity Tuition Waiver separate application Priority Funding Date each college/university will have their own established date

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

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28 FAFSA UPDATE These fields are prefilled based on FAFSA respons es

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35 PRIOR-PRIOR YEAR

36 PRIOR-PRIOR YEAR What does this accomplish????? Students and parents will not need to wait to complete their tax returns prior to applying for financial aid. Better informed decisions regarding their college/university of choice as the financial aid offer will be more accurate and more timely. Need based scholarships will be awarded to those who demonstrate financial need and not necessarily those who complete the FAFSA early. Less burdensome paperwork for families as fewer applications will be selected for verification as more accurate financial data reported on FAFSA for those who use IRS Data Retrieval Tool.

37 PRIOR-PRIOR YEAR What does this accomplish????? More accurate payments in the Pell Grant Program reducing the cost of the program saving tax payer dollars estimated at $350 Million per year. Earlier financial aid offers than in years past depending upon the school type. No need to estimate earnings as the 2015 tax returns are already complete.

38 ONCE FAFSA COMPLETED AND SUBMITTED SCHOOL WILL AWARD FEDERAL AID Results received and student awarded federal aid by the school if following parameters met: Admitted as a degree seeking student Provides college with ACT or Compass results Provides college with final high school transcript OR Provides college with college transcript(s) of all previously attended colleges Provided school via admission application Date of Birth Social Security Number Does not have any holds from previous enrollment, which could include from Dual Credit classes At some schools, verification process completed

39 DETERMINING FINANCIAL AID ELIGIBILITY Basic Financial Aid Formula Cost of Attendance Minus Expected Family Contribution Equals Financial Need College will award institutional aid first College will award federal grant assistance next College will award state grants and state scholarships next College will award private scholarships next College will award federal loans next College will award private loans last College MAY adjust loans (and state and federal grants on rare occasions) if other aid awarded

40 ADDITIONAL FEDERAL AID ELIGIBILITY Special Circumstances If student and/or parent situation changes after filing financial aid forms, contact Financial Aid Office. Unusual Medical Expenses Unemployment Death of a spouse Divorce Independent status those who answer no to all dependency questions must be estranged from parents for school to process as an independent student

41 FAFSA AND FEDERAL AID UPDATE Questions???????????? Contact Jeff Jacobs Or contact school applying to directly