Financial Aid Overview

Transcription

1 Financial Aid Overview 1/14/2015 1

2 Presentation Objectives Understand the financial aid process and timeline Know the different types of financial aid and how to access each of them Understand why everyone should complete the FAFSA 1/14/2015 2

3 What is Financial Aid? Money to help students pay for their college education (not always FREE!) 1/14/2015 3

4 Financial Aid is NOT! 1/14/2015 4

5 What is Financial Aid? TRUE or FALSE I can use my financial aid to buy a new car? 1/14/2015 5

6 Types of Financial Aid There are three types of financial aid: 1. Gift money Grants & scholarships 2. Earned money Federal work study 3. Borrowed money Education loans (federal & private) 1/14/2015 6

7 Gift money - Grants Need-based programs usually run by the government and the colleges Eligibility determined by a student s FAFSA (Free Application for Federal Student Aid) Grants do not need to be repaid The Pell Grant is a federal grant program 1/14/2015 7

8 Gift money - Scholarships TRUE or FALSE I should not apply for multiple scholarships because there is a limit to the number of scholarships I can receive. 1/14/2015 8

9 Gift money - Scholarships Eligibility can be merit-based, needbased, or a combination of both Scholarships can be awarded by schools, foundations, businesses or non-profits Scholarships do not need to be repaid 1/14/2015 9

10 Be Creative! Begin researching private aid sources now Research what is available in community Small scholarships add up! Foundations, businesses, charitable organizations: What organizations do you or your family belong to? Deadlines and application procedures vary widely Apply at each school you re interested in 1/14/

11 Understand Your Scholarship One time vs. renewable If renewable, are there requirements? GPA Major Full-time Tuition specific What s the value of the scholarship? Are there remaining costs? 1/14/

12 Earned money Federal work study On-campus employment Student must search for available jobs, apply and interview Paycheck comes directly to student; student can apply to school account or use for expenses 1/14/

13 Borrowed money - Loans Federal Student Loans Stafford Subsidized Loan Stafford Unsubsidized Loan Perkins Loan Federal Parent Plus Loan Private or Alternative Loan Home equity, bank loans 1/14/

14 Percent of Students Borrowing 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 61% 4-year Public 71% 4-year Private Non-Profit 97% 4-year Private For- Profit 37% 2-year Public 64% 2-year Private Non-Profit 98% 2-year Private For- Profit U.S. Department of Education. January Trends in student financing of undergraduate education: Selected years, to /14/

15 Average Student Loan Total $30,000 $27,349 $24,635 $25,000 $20,000 $19,839 $14,790 $17,310 $15,000 $10,000 $10,444 $5,000 $0 4-year Public 4-year Private Non-Profit 4-year Private For-Profit 2-year Public 2-year Private Non-Profit 2-year Private For-Profit U.S. Department of Education. January Trends in student financing of undergraduate education: Selected years, to /14/

16 What is the FAFSA Free Application for Federal Student Aid Why should I complete it? Generates every type of financial aid When should I complete it? The 2014/2015 FAFSA is available from January 1, June 30, 2015 How should I complete it? Complete the FAFSA at 1/14/

17 FAFSA Website 1/14/

18 FAFSA You need to complete it every year to get financial aid File your FAFSA by your school s priority filing deadline February 15 th is a common deadline 1/14/

19 What do you need to file the FAFSA? 2013 W-2 forms for student and parents Completed 2013 income tax return for student and parents (if available)* Bank statements for student and parents Asset statements for student and parents Records of 2013 untaxed income PIN number for student and parents *2012 tax information may be used to estimate if financial information is similar 1/14/

20 Completing the FAFSA TRUE or FALSE? My parents say they don t want to pay for my college education, so can I file the FAFSA as an independent student without them? 1/14/

21 Completing the FAFSA: Dependent vs. Independent Majority are dependent Requires parental information Independent No parental information if*: Married Graduate school At least 24 years old Have a dependent that you provide more than 50% support Court appointed legal guardianship 1/14/

22 I Filed My FAFSA; Now What? 1. FAFSA generates an EFC (Expected Family Contribution) 2. FAFSA generates a SAR (Student Aid Report) Sent to selected schools 3. Schools formulate Financial Need 4. Schools may request Verification 5. Students may file for Special Circumstances 6. Schools send Financial Aid Award Letters 1/14/

23 Frequent FAFSA Errors Student s social security number Divorced/remarried parental information Student/parent income Untaxed income U.S. income taxes paid Household size Number of household members in college Self-help preferences 1/14/

24 Expected Family Contribution (EFC) The EFC is what the Department of Education feels the family can contribute to the cost of the student s education Is it fair? Most people think no! The EFC does not change from school to school 1/14/

25 Student Aid Report (SAR) Summary of your FAFSA information It is sent electronically to the schools you have listed on your FAFSA Schools will use the information from your SAR to help determine your financial aid 1/14/

26 Cost of Attendance (COA) Tuition & Fees + Room & Board + Books & Supplies + Personal Expenses + Transportation Cost of Attendance 1/14/

27 Cost of Attendance 1/14/

28 Financial Need Cost of Attendance - Expected Family Contribution Financial Need Financial Need is used to determine what type of financial aid a student will receive 1/14/

29 Additional Steps Complete institutional forms CSS Profile Colleges process information: Verification May request additional documentation, most common request is copies of federal tax returns Process aid awards for admitted students only Aid awards generally start going out in March Aid awards are simply an offer, not binding 1/14/

30 Verification Schools are required to verify the information provided on the FAFSA for a certain % of students Your FAFSA can be selected for verification by multiple schools The IRS Data Retrieval tool will allow FAFSA on the Web applicants to request and retrieve their income and tax data from the IRS. Electronically filed tax return information will be available from the IRS in 1-2 weeks, data from paper tax returns will be available in 6-8 weeks. Failure to complete the requested paperwork will delay your award letter 1/14/

31 Special Circumstances If your financial circumstances change in 2014 you may be eligible to file a special circumstances appeal with your school Typical reasons Loss of income Divorce or separation Medical expenses Death of parent or spouse Private or parochial school expenses 1/14/

32 Special Circumstances Change in employment status Medical expenses not covered by insurance Change in parent marital status Unusual dependent care expenses VS. I want more money. My parents are not willing to help Elective surgery 1/14/

33 Tips & Pointers Know before you go Payment plans Full-time status Double occupancy Ask questions Apply for scholarships every year 1/14/

34 Award Letter Award letters sent from schools in late March or the beginning of April Compare award letters for: Gift Money Earned Money Borrowed Money Unmet Need 1/14/

35 For More Information Visit Find us on Facebook Twitter YouTube SMS Text Alerts 1/14/

36 1/14/