What You Need to Know About Financial Aid

1. What You Need to Know About Financial Aid

2. Topics We Will Discuss Tonight • What is financial aid? • Applying for Financial Aid • Cost of Attendance (COA) • Expected family contribution (EFC) • Financial need • Categories, types, and sources of financial aid • Free Application for Federal Student Aid (FAFSA) • Special circumstances

3. What is financial aid? Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses.

4. Applying for Financial Aid • Who should apply? • Every student who would like help with college cost. Do not assume you are not eligible! • How do I apply? • Each year, you must complete the Free Application for Federal Student Aid (FAFSA) • Go to www.fafsa.gov • Check out the new FAFSA app. Search “MyStudentAid” in your APP store

5. Applying for Financial Aid- cont. • When do I apply? • The FAFSA can be filed after October 1st prior to the academic year for which you are applying. • It must be received by the federal processor no later than March 1st to receive the fullest consideration for State grants. • Check with all the colleges you are considering for their deadlines!

6. What happens after I apply? • Your FAFSA will be checked for completeness. If an item is blank, the form may not be processed or will be returned to you. • The FAFSA will take approximately 3 days to process. • After the FAFSA is processed, you will receive a Student Aid Report (SAR), which is a report of your answers to the FAFSA questions and an expected family contribution (EFC).

7. What is Expected Family Contribution (EFC)? • Amount family can reasonably be expected to contribute • Calculated using data from the federal application form and a federal formula • This figure is calculated by a formula that looks at income, number of family members, number in college, and assets in some cases. • Two components • Parent contribution • Student contribution • *** This stays the same regardless of the college ***

8. What is Financial Need? • Cost of Attendance • Expected Family Contribution • _______________________ • = Financial Need

9. Cost of Attendance (COA): • Direct costs: Tuition, Fees, Room/Board, Books/ Supplies • Indirect costs: Transportation, Personal • *** This varies widely from college to college *** https://collegescorecard.ed.gov/

10. Types of Financial Aid • Grants • Scholarships • Loans • Employment Gift Aid Self-Help Aid

11. Gift Aid • Grants: • Money that does not have to be paid back • Usually awarded on the basis of financial need • Scholarships: • Money that does not have to be paid back • Awarded on the basis of merit, skill, or unique characteristic

12. Self-Help Aid • Loans: • Money students and parents borrow to help pay college expenses • Repayment usually begins after education is finished • Only borrow what is really needed • Look at loans as an investment in the future • Work – Study Employment: • Allows student to earn money for educational costs • Student may opt out on whether or not to work or the number of hours to work

13. Sources of Financial Aid • Federal government • States • Colleges and universities • Private sources • Civic organizations and churches • Employers

14. Federal Student Aid Programs • Federal Pell Grant – largest federal need based grant program. EFC less than 5486; Maximum award $6,095 (EFC of 0) – these are FY 2018 figures • Federal Supplemental Educational Opportunity Grant (FSEOG) – must be Pell eligible. Maximum award $4,000 • Teacher Education Assistance for College and Higher Education (TEACH) Grant – for students who intend to teach full-time in high-need subject areas for at least four years at school that serve students from low-income families. Maximum award $4,000. • Guaranteed Access Grant – Maximum award $11,600 • Federal Work-Study – part-time job on campus • Federal Direct Loans – Subsidized and Unsubsidized • Federal Plus Loans – parent loan, based on credit worthiness

15. Maryland State Scholarships • Residency requirements usually apply • Award aid on the basis of both merit and need • Use information from the FAFSA and/ or state aid applications • Maryland Community College Promise Scholarships (MACC) • Maryland Higher Education Commission • Maryland Deadline: March 1st (each year) • http://www.mdgo4it.mhec.Maryland.gov

16. Maryland State Scholarships • Legislative Scholarships • (Senatorial and Delegate) • All students may apply: • High school seniors • Undergraduate students • Graduate students • Career or technical school students • May be used for: • Full-time or part-time enrollment • Maryland residents only • Mostly Maryland institutions (may be used out of state in rare circumstances)

17. Maryland State Scholarships • Senatorial Scholarship:$400 and up annually • Delegate Scholarship:$100 and up annually • File FAFSA by March 1st. • Demonstrate financial need. • Some awards are renewable for an additional three years. • Contact Senator for application and renewal procedures. • Note: Senators have the option to award; some do not select recipients but put their funds into other programs administered by MHEC. • Contact Delegate for application procedure. • Must apply each year for an award; they are not renewable. • FAFSA may not be required. • Note: Delegates have the option to award; some do not select recipients but put their funds into other programs administered by MHEC.

18. Private Sources, • Civic Organizations and Churches • Foundations, businesses, charitable organizations • Deadlines and application procedures vary widely • Begin researching private aid sources early • Research what is available in the community • To what organizations and churches do student and family belong? • Application process usually occurs during spring of senior year • Small scholarships add up!!!

19. Lets Talk Numbers ** 2018/2019 figures: Based on EFC of 1501, including meal plans, not including additional fees. WWCC does not include room & board. Can your pocket afford the out of pocket expense?

20. Any questions so far?? Now let’s talk about the FAFSA

21. Free Application for Federal Student Aid (FAFSA) • A standard form that collects demographic and financial information about the student and family • Information is used to calculate the expected family contribution (EFC) • Colleges use EFC to award financial aid

22. FAFSA on the Web www.fafsa.gov 2019-2020 FAFSA available October 1, 2018

23. New to the FAFSA 2019-2020… There is an App!!! • Search “MyStudentAid” in • your App store • App is user-friendly as it is • customized based on user • IRS DRT available • Same data protections as completing the FAFSA on the web

24. Creating a FSA ID & Password Prior to completing the FAFSA • Sign FAFSA & other FSA documents electronically • https://fsaid.ed.gov or from within FAFSA website • FSA ID for student; FSA ID for parent ( can not have the same email address) • Only the owner should create a FSA ID

25. General Information needed to • Successfully complete the FAFSA • Social Security Number • Citizenship status • Marital Status • Drug Convictions • Selective Service Registration • Level of Parents’ school completion

26. FAFSA and Income Information • As of the 2017/2018 FAFSA, students and parents are required to report income information from the “Prior-Prior Year.” • So for the 2019/2020 FAFSA students and parents will be using 2017 income information.

27. IRS Data Retrieval Tool • While completing FAFSA, applicant may submit real-time request to IRS for tax data • IRS will authenticate taxpayer’s identity. • If match found, IRS sends real-time results to applicant within the FAFSA • Participation is voluntary • Reduces errors & documents requested by financial aid office • Some will be ineligible to use IRS DRT: • * Examples include but are not limited to: • - Filed an amended tax return • - No Social Security Number was entered • - Parent married but filed separately

28. Student Dependency Status • FAFSA asks 13 dependency questions to determine dependency status for federal student aid (not IRS) purposes: • If “No” to all the questions, student is dependent • If “Yes” to any question, student is independent

29. Who is your parent?

30. Frequent FAFSA Errors • Incorrect Social Security Numbers • Divorced/ remarried parental information • Income earned by parents / stepparents • Household size • Number of household members in college • Real estate and investment net worth • Use a street address, instead of P.O. Box • Include a MARYLAND school on FAFSA

31. Student Aid Report • Review data for accuracy and correct any errors • Students with FSA ID may view SAR online at www.fafsa.gov • Update estimated tax information when actual figures become available • If necessary, corrections to FAFSA data may be made by: • Using FAFSA on the Web • Updating paper SAR ( SAR Information Acknowledgement cannot be used to make corrections) ; or • Submitting documentation to college’s financial aid office

32. Verification • There are a lot of changes in the verification policy at ALL schools • Here is what you need to know: • Verification is not a bad thing; it does not mean the student is not eligible • Department of Education customized verification per applicant • Possible documentation you will need for school: • 2017 Tax Transcript (not tax return) for student & parent(s) • 2017 W2’s from all employers for student and parent(s) • High school completion status • Identity / Statement of Educational Purpose *Check with each school to determine what documents are needed to comply with their verification policy.

33. Special Circumstances • Change in income • Change in employment status • Unusual medical expenses not covered by insurance • Change in parent marital status • Unusual dependent care expenses • Student cannot obtain parental information

34. What to do next • Obtain and review admissions and financial aid Web sites and materials for each school to which you are applying. • Meet all application deadlines. • - Complete FAFSA and other application materials. Submit all • requested follow-up documents. • Investigate other sources of aid.

35. Deborah E. Jenkins • Director of Financial Aid • djenkins@worwic.edu • Ellen Soulis • Financial Aid Scholarship Coordinator • esoulis@worwic.edu • Financial Aid Office • Kristin Williams • Financial Aid Analyst • kwilliams@worwic.edu • Katie Abreu • Financial Aid Compliance Coordinator • kabreu@worwic.edu • Esther Dabipi • Financial Aid Loan Coordinator • edabipi@worwic.edu • Stephen Sullivan • Financial Aid Grant Coordinator • ssullivan@worwic.edu • Katie Rosas • Financial Aid Specialist • krosas@worwic.edu • 410-334-2800 ext. 2905 • www.worwic.edu/finaid • http://www.worwic.edu/ExternalLink.aspx?Key=FBFA