FINANCIAL AID 101. Kristen Isaksen Associate Director of Financial Aid Monmouth University

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1 FINANCIAL AID 101 Kristen Isaksen Associate Director of Financial Aid Monmouth University

2 What is Financial Aid? Financial aid is money that helps a student pay for education expenses at a postsecondary school (e.g., college, vocational school, graduate school).

3 Goal of Financial Aid The primary goal is to assist students in paying for college. This achieved by: Evaluating a family s ability to pay for educational costs. Distributing limited resources in an equitable manner. Providing a balance of gift aid and self-help aid.

4 Federal Methodology Federal Methodology is the formula created by Congress to determine the Federal Expected Family Contribution (EFC).

5 Expected Family Contribution Index number that the financial aid office uses to determine aid eligibility Stays the same regardless of college choice The EFC is not: The amount of money you will pay The amount of federal aid you will receive

6 Total EFC for Dependent Students Parent s Contribution From Income From Assets Student s Contribution From Income From Assets

7 Cost of Attendance Tuition and Fees Room and Board Books and Supplies Transportation Miscellaneous Personal Expenses Computer Study Abroad Dependent Care Expenses related to a disability

8 Definition of Need Cost of Attendance (COA) - Expected Family Contribution (EFC) = NEED

9 Financial Need Examples Cost of Attendance $30,000 - EFC $15,000 = Need $15,000 Cost of Attendance $55,000 - EFC $15,000 = Need $40,000

10 Net Price Calculator All institutions have a net price calculator on their website. Generally found on the financial aid page. Complete for each institution in which you are interested. Provide income information. Provides you with an estimate of the aid you are eligible for and the net price at that specific institution.

11 FAFSA4caster

12 About the FAFSA Prior-Prior-Year format Use 2015 income File as early as October 1, 2016 Estimating income no longer needed for the majority of students

13 FSA ID

14 FSA ID Optional but strongly recommended Each FSA ID must have a unique address (you and your parent cannot use the same address) You can select Show Text to see what you re typing You must have access to this account

15 FSA ID Questions 1 and 2: Select a question from the dropdown menu and then enter your answer You can select Show Text to see what you re typing Questions 3 and 4: Make up your own question and enter your answer Make sure the answers will be easy to remember Examples of questions: What s your favorite color? What s your favorite food? Question 5: Enter a significant date It can t be your date of birth Examples of dates: Favorite holiday Sibling or parent date of birth

16 File the FAFSA

17 FAFSA on the Web

18 General Eligibility Requirements Have a high school diploma or equivalent. Must be enrolled or accepted for enrollment in an eligible program of study leading to a degree, certificate, or other recognized credential. Must be U.S. citizen or eligible noncitizen.

19 General Eligibility Requirements Must have valid Social Security Number (SSN) Must be registered with Selective Service (if male and required)

20 Completing the FAFSA

21 Data Retrieval Tool (DRT)

22 Data Retrieval Tool (DRT)

23 Data Retrieval Tool (DRT) These fields are pre-filled based on FAFSA responses

24 Data Retrieval Tool (DRT)

25 FAFSA Confirmation Page

26 FAFSA and State Aid The New Jersey Higher Education Student Assistance Authority (NJHESAA) collects several additional items not specifically requested on the FAFSA. Use the Optional Features-Start your state application on the FAFSA confirmation page. FAFSA data will be transferred to HESAA and the appropriate questions will be displayed. Make sure to disable your pop-up blockers!

27 FAFSA and State Aid Earned Income Credit (EIC) Untaxed & Taxable Social Security Income Unemployment Compensation Driver s License State/Number (student only) SSN, last name, first initial (parents only) Other items are only for independent students.

28 Process File Free Application for Federal Student Aid (FAFSA) Use the DRT Complete Institutional forms (if required) Receive Student Aid Report (SAR) Receive/Return Award Letter Provide Additional Documentation Process Student Loans

29 Sources of Aid Institutional Merit Need Federal State Other

30 Tax Credits American Opportunity Tax Credit Lifetime Learning Tax Credit Tuition and Fees Deduction Student Loan Interest Deduction

31 Types of Financial Aid Scholarship Does not have to be repaid Awarded on the basis of merit, skill or a unique characteristic Grants Does not have to be repaid Usually awarded on the basis of financial need Loans Money that is borrowed and repaid with interest Employment Student earns money to help pay educational costs Paycheck or non-monetary compensation, such as room and board

32 Grants and Scholarships Federal Federal Pell Grant Federal Supplemental Educational Opportunity Grant (SEOG) Teacher Education Assistance for College and Higher Education (TEACH) Grant Iraq and Afghanistan Service Grants

33 Grants and Scholarships STATE New Jersey Tuition Aid Grant (TAG) NJSTARS and NJSTARS II Educational Opportunity Fund (EOF)

34 More Grants and Scholarships Private Sources Think local and global Use the Counseling Office s Resources Internet Resources

35 Federal Direct Loans Subsidized Need based No interest accrual during inschool, grace or deferment periods Fixed rate of 3.76% for Market-based fixed rate Adjusted annually Based on the 10 year Treasury note plus a margin

36 Federal Direct Loans Unsubsidized Not need based Accrues interest from disbursement Fixed 3.76% interest rate for Maximum award amount for first year students: $5500 with no more than $3500 in Subsidized funds

37 Federal Perkins Loan Need based No interest accrues during school or the 9 month grace period Fixed interest rate of 5% during repayment Program is ENDING 9/30/17

38 Supplemental Loans Institutional Loans Federal Parent Loan for Undergraduate Students (PLUS) New Jersey College Loans to Assist State Students (NJCLASS) Private/Alternative Loans

39 Employment Federal Work Study Institutional Work Programs Off-Campus Jobs

40 Tuition Payment Plans Not a loan Enrollment fee Make tuition payments in monthly installments Fit payments into your monthly budget Various payment options

41 Tips BEWARE OF DEADLINES!! READ all mail/ promptly READ instructions carefully, review before submitting anything! Maintain copies of all documents Do not sign your son or daughter s name/fsa ID to financial aid documents Involve your student Consult a financial aid officer

42 Questions to ask a Financial Aid Administrator Are scholarship and grant awards renewable? What criteria must be met? What are the policies for work-study positions? Is a job guaranteed? How are outside scholarships treated? How can I use financial aid to pay for books? Are there any banking options on campus?

43 Questions Like us on Facebook Follow us on Twitter twitter.com/mufinaid

44 IRS Data Retrieval FAFSA on the Web Applicants may submit a real-time request for IRS tax data. The IRS will authenticate the taxpayer s identity. If a match is found, the IRS will send the results in real-time (a new window will open). Applicants may choose whether or not to transfer the data.

45 IRS Data Retrieval FAFSA on the Web The IRS Data Retrieval does not fill in all of the income questions. Please review the income section of the FAFSA before submitting!

46 FAFSA on the Web Worksheet You may need to answer more questions than those listed on the worksheet. Skip logic will remove unnecessary questions. Some questions are optional, but it is recommended that you answer all of themespecially the driver s license question.