2016/17 Financial Aid High School Presentation. New Jersey Higher Education Student Assistance Authority

Transcription

1 2016/17 Financial Aid High School Presentation New Jersey Higher Education Student Assistance Authority

2 HESAA Higher Education Student Assistance Authority Our mission is to provide students and families with the financial and informational resources for students to pursue their education beyond high school.

3 Researching College Costs Early 3

4 The Need Between and , average published tuition and fee prices increased by 2.9% for in-state students in the public fouryear sector, 3.3% for out-of-state students in the public four-year sector and for in-district students at public two-year colleges, and 3.7% at private nonprofit four-year institutions. 4

5 The Need 5

6 Score Card Score card offers reliable data on factors important to prospective students such as Cost Graduation Rates How much graduates earn How much debt they have when they graduated Ability to find middle class jobs Ability to pay off debt The scorecard was designed with input of those who will use it most; students, parents, and counselors 6

7 Score Card 7

8 Net Price Calculator The Higher Education Opportunity Act of 2008 required all postsecondary schools that receive Title IV funding to disclose the actual net price a student would pay to attend an institution Designed to increase awareness of the actual cost of college attendance Students, families, and consumers are able to view this information on individual institution s websites 8

9 NJEI Calculator Tuition Aid Grant Award Estimator (TAG) Assumes full-time enrollment status Used for planning purposes only As simple as entering data and clicking submit to get your estimated award 9

10 Applications to Access Aid 10

11 The Application Process The financial aid process begins with the completion of the Free Application for Federal Student Aid (FAFSA). The CSS profile or an institutional application may be required by some schools. College Scholarship Service (CSS) Profile begins October 1 st ($25 for first school, $16 additional for each school) The FAFSA process begins January 1 st HESAA will collect up to six additional data elements to determine NJ grant eligibility Review all institutional and scholarship deadlines as they vary Secondary School Counselor Training Institute 2015 Financial Aid De-Mystified 11

12 Application: CSS Profile Nearly 400 Colleges and Organizations use the CSS profile to determine how they will award institutional funds Available 10/1 each year and collects more comprehensive income, asset and household information than the FAFSA (i.e. assets for business owners regardless of number of employees Register - Complete Application Make payment - Submit 12

13 CSS Profile Website to apply for profile Website to apply for Noncustodial Profile: Customer Service

14 FSA ID Federal Student ID Replaces the PIN In order to enhance security, FAFSA has replaced the PIN number with the FSA ID The new FSA ID will be comprised of a user-selected username and password The FSA ID will have a single sign-on process for most Federal Student Aid Systems If you already have a PIN, you can link your information to your new FSA ID by entering your PIN while registering for your FSA ID PIN number is not necessary to create a FSA ID 14

15 How to Create An FSA ID 15

16 Free Application for Federal Student Aid (FAFSA) Collects family s personal and financial information used to calculate the student s Expected Family Contribution File the FAFSA electronically FAFSA on the Web at Student & Parent must create a Federal Student Aid ID (FSA ID) at fsaid.ed.gov Estimated income or actual prior year tax information Use the IRS Data Retrieval Tool to populate income & tax information 16

17 Application: FAFSA Submit the Free Application for Federal Student Aid (FAFSA) prior to the earliest school s deadline & complete the NJ State Specific Questions To ensure maximum consideration for federal, state, and institutional aid, check information from each school to determine: Required application materials Application deadlines Be sure to answer all optional questions on the FAFSA like Gender & Driver License to speed up processing 17

18 The Application Process Information needed to complete the FAFSA 2015 estimated or actual Federal Tax Return 2015 W-2 Forms FSA ID (Replaces the PIN) Student Driver s License (For State Aid Purposes only) Social Security Benefit Statement (For State Aid Purposes) only) Secondary School Counselor Training Institute 2015 Financial Aid De-Mystified 18

19 Application Deadlines Be aware of individual school deadlines If applicant/family has not completed their federal tax return prior to the earliest school deadline, estimated tax information may be used to complete the application Must update once taxes are filed State deadlines (October 1 st for new students) Institutional aid deadlines may be earlier; check with the institution Some aid is first-come, first-served Deadlines Matter! 19

20 General Highlighted Eligibility Requirements Must have a valid Social Security Number Must be enrolled or accepted for enrollment in an eligible program of study Must be pursuing a degree, certificate, or other recognized credential Must be a U.S. citizen or eligible noncitizen Must be registered with Selective Service (males are required) 20

21 Key Components of the FAFSA Student Demographics Last Name Social Security Number Date of Birth NJ applicants must provide an answer to the driver s license questions. ALL applicants must indicate their gender. Student Income and Assets IRS Data Retrieval Income earned from work Student Status: Dependent/Independent Parent Demographics-Who is a Parent? Social Security Number Last Name Date of Birth 21

22 Household Size Number in college Parent(s) Income and Assets IRS Data Retrieval Income earned from work Dislocated Worker Federal Means Tested Benefits SSI, SNAP, Free or Reduced Price Lunch, TANF, WIC College Choice List a New Jersey college first List all colleges of interest (up to 10) Key Components of the FAFSA (cont.) Once submitted, use the link from the FAFSA confirmation page to HESAA s webpage to complete the additional data elements for Tuition Aid Grant (TAG) and NJ STARS (II) eligibility. May also come to HESAA website to complete additional data elements if a student forgets to go there from the FAFSA confirmation page. 22

23 Common Mistakes Made on the FAFSA Student s name as it appears on the social security card, social security number, and date of birth. Parent section vs. Student section Number of people in the household Divorced/remarried households Taxes paid vs. taxes withheld Parental and student assets Zero is a number College level Skipping the gender question 23

24 Discussions of Special Issues Death/Disability Change of marital status within the award year Marital Status Divorced Remarried parent/step parent Living together Same sex marriage Citizenship status Undocumented status Work visas Student visas Valid permanent resident card 24

25 How To Be Considered for State Aid New Jersey requires additional data elements, beyond what is reported on the FAFSA, to determine a student s eligibility for a Tuition Aid Grant (TAG) award, NJ STARS & NJ STARS II and Governor s Urban Scholarship These elements include: Driver s license information Veterans education benefits (independent students) Untaxed and Taxable Social Security benefits (student and parent(s)) Earned income credit from tax return Unemployment Benefits Once student completes the FOTW, they must select the second option on the confirmation page to report this information to HESAA 25

26 Additional State Questions

27 Help! Sources of Aid Federal State of New Jersey The College/University Outside Organizations Civic organizations (ex.-local Rotary Club), parent s employer, high school awards Types of Financial Aid Grants Scholarships Loans Employment Opportunities 27

28 Federal Aid Programs Gift Aid - Grants Federal Government 2015/16 Pell ($5,775 projected award) SEOG ($4,000 max award) TEACH ($3,728 max award) Awards subject to change for 2016/17. 28

29 State Aid Programs 29

30 NJ Grants and Scholarships Webpage! 30

31 Student Access Students can view their Student Eligibility Notice (SEN) TAG award information online at Students are also able to Learn about New Jersey grants and scholarships Utilize the NJ TAG Estimator Upload requested documentation Print copies of forms needed to complete the review of their record All students must have a hesaa userid and password to access the e- access portal on Students should always check their award status online before calling HESAA s customer care line. 31

32 Institutional & Private Scholarships Factors that may influence eligibility: Academics SAT s AP Courses Activities Academic Track H.S. Attended Athletic Ability* Geographic Diversity Legacy (child of alumni) Talent Gender/Ethnicity Class Rank * Athletic awards offered by NCAA Division I and Division II schools only. 32

33 Self Help Loans & Gap Shortfall Solutions Monthly Payment Plans offered by the college Federal Direct Loan Program (1 st year dependent student) Subsidized Stafford Loan $3,500 need based Unsubsidized Stafford Loan $2,000 additional Federal Direct Undergraduate Direct Loans are 4.29% plus a 1.068% origination fee Rates and fees are subject to change 33

34 Self Help Loans to Cover the Gap How Interest Works! Federal Direct Undergraduate Direct Loans are 4.66% plus a 1.073% origination fee, for subsidized and unsubsidized loans. i.e. How origination fee works Student borrows ($1750) Processing fee (1.068% = $18) = Amount paid towards tuition ($1732) *Note: Student now owes a principal amount of $1750 i.e. How interest works Student borrowed ($1700) Interest rate (4.29%) Quarterly interest = 90 days ($10.58) Student s are not required to pay loans back until: 6 months after graduation or if he/she registers under half-time (6 credits) Or if he/she stops attending 34

35 Self Help Loans to Cover the Gap borrow up to cost of attendance NJCLASS Supplemental Loan Program Variable Rate NJCLASS LOAN, starting at 4.53% This option has no origination fee Fixed Rate NJCLASS LOAN, varying repayment options Interest rates range from 4.99% to 7.85% for the award year. Students can borrow up to the cost of attendance and must be the borrower. All fixed rate NJCLASS loans have a 3% origination fee Federal PLUS Program (6.84% & 4.272% Origination fee) Parent is the borrower * Rates and fees are subject to change 35

36 Other Resources Outside Scholarships Campus Administered Payment Plans Campus Employment Specialized Campus Opportunities Residential Advisors Student Ambassadors Student Tour Guides Internships/CO-OP S 36

37 Cost of Attendance Tuition and fees Room and board Books and supplies, equipment, transportation, and miscellaneous personal expenses Loan fees Study abroad costs Dependent care expenses Expenses related to a disability Expenses for cooperative education program 37

38 Unexpected Costs Remediation Classes: extra 1 2 semesters Change in major: 1 2 years in addition Transferring: possible extra semester Unpaid internships: loss of Summer wages Study Abroad, Spring break, trips home and pledging costs Moving expenses and Summer storage 38

39 Federal Methodology is the formula created by Congress to determine the Expected Family Contribution (EFC). Federal Methodology The EFC is a measurement of a family s financial strength 39

40 EFC is determined by: Expected Family Contribution Family income and assets (taxed & untaxed) Allowances against income include: FICA, state and federal taxes, income protection allowance, employment allowance, and an education savings and asset protection allowance (if applicable) Household size Number in college (excluding parents) Age of oldest parent/stepparent 40

41 Expected Family Contribution *Note: An EFC of 5199 and above is ineligible for Pell Grant, but still eligible for Federal Direct Stafford Loan(s) 41

42 Path of FAFSA Data 42

43 Data Matches Central Processing System Social Security Administration: Student s name as it appears on the Social Security card, Social Security number (SSN), and date of birth One parent s SSN, date of birth, last name, and first initial. If parent is undocumented, s/he should enter all zeroes in the SSN field U.S. Citizenship status Eligible non-citizenship status with the U.S. Department of Homeland Security (DHS) Selective Service registration system ( U.S. Department of Veterans Affairs (CPS) 43

44 Federal Notification Student Aid Report (SAR) Important message to students and parents... Read! Read! Read! Received via address or mail After the SAR is received, families may make corrections and updates, such as adding a college, and should be encouraged to use the FAFSA on the Web (FOTW) correction process Certain revisions may be made by financial aid officers (i.e., dependency status overrides and corrections resulting from verification) 44

45 Need Varies Based on Cost Cost of Attendance (variable) Expected Family Contribution (Constant) Need (variable) 45

46 Sample EFC for Smith Family Family lives in New Jersey Married parents, both age 52 Household size of 4 with 1 child going to college 2012 adjusted gross income = $120,000 Assets = $20,000 Student income / assets = 0 EFC = $20,830 46

47 Financial Need for Smith Family College Community College State College or University Private College or University COA $13,300 $25,561 $45,676 EFC $20,830 $20,830 $20,830 Financial Need 0 $4,731 $24,846 47

48 Shopping Sheet The Shopping Sheet standardizes award letters, making it easier to comparison shop and provide students with key information including: How much one year of school will cost. Financial aid options to pay this cost, with a clear differentiation between grants and scholarships, which do not have to be repaid, and loans, which do. The net costs after grants and scholarships are taken into account. Fundamental information about student results, including information comparing default rates, graduation rates, and median debt levels for the school. Potential monthly payments for the federal student loans the typical student would owe after graduation. You may see the Shopping Sheet 48

49 The Cycle of Financial Aid Oct-Jan - Complete college search, application process, and CSS Profile Jan-March - Student/Parents complete FAFSA March-May - Schools send award letters June-July - School sends Fall Semester bill 49

50 Where Do I Go From Here? Obtain and review admission, financial aid materials and deadlines from each school to which you are applying Meet all application deadlines CSS Profile if applicable Complete the FAFSA and any other application materials required by the school or your state agency - NJ State deadlines are: TAG Renewal Students June 1, preceding the academic year for which aid is requested All Other Applicants October 1 for Fall and Spring term awards; March 1 Spring awards only 50

51 Other Resources Outside Scholarships Campus Administered Payment Plans Campus Employment Specialized Campus Opportunities Residential Advisors Student Ambassadors Student Tour Guides Internships/CO-OP S 51

52 Private Scholarship Search Institution/college web sites Local library resources Local businesses, civic organizations and churches Parent s employer(s)

53 NJBEST College Savings Plan $3 billion in assets invested in the Plan NJBEST is the only 529 Savings Plan to award a scholarship ranging from $500-$1,500 Funding for NJBEST scholarships comes from HESAA Over $1.3 million has been awarded since FY 2003 Earnings on the NJBEST Plan are tax free when used to pay for the qualified higher education expenses of an NJBEST beneficiary Limit how much can be contributed annually 53

54 Web Sites HESAA Services Customer Care Line NJBEST MappingYourFuture.org 54

55 Questions? 55

56 Thank you