The Montana Association of Student Financial Aid Administrators

1. Presented by: Judy Chapman, Director MSU-Billings Financial Aid & Scholarships & Kalie Porter of the Developed and provided free by: The Montana Association of Student Financial Aid Administrators

2. Overview • About the FAFSA • Types of Financial Aid • Other Resources

3. What the heck is the “FAFSA?” • FAFSA = • Free • Application • For • Federal • Student • Aid • Emphasis on the “FREE” Part!

4. Federal Financial Aid Eligibility Requirements • Student must have the following: • Be a U.S. citizen or eligible noncitizen • Have a valid Social Security number (unless you're from the Republic of the Marshall Islands, the Federated States of Micronesia, or the Republic of Palau) • Comply with Selective Service registration, if required (see www.sss.gov for more information) • Have a high school diploma or a General Education Development (GED) Certificate or pass an approved ability-to-benefit (ATB) test • Be enrolled or accepted for enrollment as a regular student working toward a degree or certificate in an eligible program at a school that participates in the federal student aid programs Also: • You must not owe a refund on a federal grant or be in default on a federal student loan • You must have financial need (except for unsubsidized Stafford Loans) • You must not have certain drug convictions

5. Applying for DifferentTypes of Aid • USE THE FAFSA FOR : • Grants – Free or “gift” aid • Work Study – Self- help – must be earned • Loans – Self-help – must be repaid • USE SEPARATE APPLICATION FOR: • Scholarships • Waivers • Follow the process at your school

6. FAFSA - Two Ways to Apply • Electronic - Recommended: • FAFSA on the WEB @ • www.fafsa.ed.gov • Reminder - get your PIN number first www.pin.ed.gov (parent and student) • Paper FAFSA • Forms available from financial aid office or high school guidance counselor • The paper FAFSA colors: YELLOW for student info, PURPLE for parent info

7. PIN Registration • Web site: www.pin.ed.gov • Apply now - Both student and parent need a PIN • PIN is used for FAFSA, MPN, NSLDS access Add to your address bookcpsnotify@cpsemail.ed.gov

8. The Form FAFSA ON THE WEB

9. FAFSA on the WEB - Sample Worksheet • Use of the worksheet is optional; it should NOT be submitted to the US Dept of Ed or to your • school. • Not all of the questions from FAFSA on the Web appear in this worksheet, but questions are • generally ordered as they appear online. • Once you are online, you may be able to skip some questions based on your answers to • earlier questions. The FAFSA on the WEB will determine for you which questions can be • skipped.

10. DO NOT MAIL THIS WORKSHEET. You must complete and submit a Free Application for Federal Student Aid (FAFSA) to apply for federal student aid and to apply for most state and college aid. Applying online with FAFSA on the Web at www.fafsa.ed.gov is faster and easier than using a paper FAFSA. For state or college aid, the deadline may be as early as January 2007. See the table to the right for state deadlines. Check with your high school counselor or your college’s financial aid administrator about other deadlines.

11. FAFSA on the WEB - Sample

13. Filling Out the FAFSA • Tax information • Use 2006 Federal tax information • Do not send any other forms with the paper FAFSA • If using paper, then mail the paper form in the envelope provided – it is pre-coded for faster processing • Student and Parent Information • Use correct SSNs • Use LEGAL NAME from Social Security Card • Accurate Date of Birth • School Information • Identify at least one school • Can list up to four schools at a time Contact Financial Aid Office for assistance

15. Avoid ERRORS! Errors made in completing the FAFSA and/or supplemental forms may delay application processing and result in the loss of financial aid funds. Please complete all forms carefully!

16. Frequent FAFSA Errors • Divorced/remarried parent information • Income earned by parents/stepparents • Untaxed income • U.S. income taxes paid • Household size • Number in postsecondary education • Real estate and investment net worth

17. Timelines • Submit as early as possible after January 1st • Estimated tax return • Completed tax return • Processing Times • 1 – 3 days if submitted electronically • 2 – 3 weeks if paper FAFSA is mailed • School processing times vary • Check Student Aid Report (SAR) immediately for: • EFC (on upper right of pg 1) • Any mistakes or omissions • If you haven’t received any information within 4 weeks, contact the financial aid office or Federal Processor @ 1.800.4.FEDAID. Print and keep your confirmation number for tracking!

18. Components of the FAFSA • The Philosophy • The Formula • COA, EFC, NEED

19. The Philosophy(Why Is All This Information Needed?) • Parents and students are primarily responsible • Families are evaluated in their present financial condition • A family’s ability to pay is evaluated in an equitable and consistent manner Special situations can be considered

20. Divorced/Separated Parents Whose information goes on the FAFSA? • 1. Who did student live with most in last 12 months? • 2. If #1 is not clear, who provided the most financial support in the last 12 months? • 3. If neither #1 or #2 clarifies it, choose the parent from whom the student most recently received the most support. Stepparent’s information is ALWAYS included!

21. What if I have a special situation? • A special conditions appeal may be filed when your income has changed due to: • Loss of job • Death of wage earner • Divorce • Unusually high medical bills paid Special conditions are considered after initial awards have been determined. Contact your financial aid office for assistance

22. The Formula Cost of Attendance (COA) Expected Family Contribution (EFC) Need

23. What’s in the Cost of Attendance? Main components Tuition & fees • Room & board • Books & supplies • Transportation • Miscellaneous personal expenses Other possible components • Loan Fees • Study abroad costs • Dependent or elder care expenses • Expenses associated with a disability • Expenses for co-op education programs

24. What is it? How is it determined? Why do we need it? E F C The Processor uses a formula to determine “EFC” or “Expected Family Contribution”

25. Federal processor will determine Expected Family Contribution Fill out and submit FAFSA School receives FAFSA info. (Verification) School determines need School creates Financial Aid Award Package Student receives Award Letter Student Responds to Award Letter The Process

26. Types of Financial Aid • Need Based • Scholarships • Grants • Employment • Loans • Non-Need Based • Loans • Some scholarships • Some work-study • Merit Based • Scholarships

27. Sources of Financial Aid • Federal • State • Institutional (school) • Private

28. Grants

29. Available Grants • Federal Pell Grant • Federal Supplemental Educational Opportunity Grant (FSEOG) • Montana Higher Education Grant (MHEG) • Montana Guaranteed Student Loan Program Grant (MGSLP) • Baker Grant (Formerly MTAP) • Acce$$ Grant

30. Available Grants, ContinuedNEW FEDERAL GRANT PROGRAMS • National Academic Competitive Grant (ACG) • First and second year students • “Rigorous Course of Study” • 3.00 GPA in second year • $750 first year, $1,300 second year • National “Science and Mathematics Access to Retain Talent” (SMART) • Third and Fourth year students • Must be in Specific Major • Cumulative GPA 3.00 • $4,000 max per year • For both ACG and SMART Grants: • Must be US Citizens • Must be Pell eligible and a Pell recipient in the term the grant is awarded • Must be enrolled full-time • Questions on the 2007-2008 FAFSA will help determine student’s eligibility

31. Employment

32. Federal & State Work Study • Can be need or non-need based • On or off campus • Earnings do not count as income on next year’s FAFSA • Amount awarded is not guaranteed to be earned If you did not receive a work-study award, most schools have a waiting list.

33. Student Loans

34. Types of Educational Loans • Federal Loans • Stafford • Perkins • Graduate PLUS • Parent PLUS • Private Loans

35. Federal Loan Eligibility • Loans are a type of financial aid • Need and Non-need based • Enrolled at least half-time

36. Federal Perkins Loan • Need based • Interest rate: 5% fixed • Nine month grace period • Deferment & cancellation provisions • Limited funding – apply early

37. FFELP / Direct Loans • There are four types of FFELP/Direct loans • Subsidized Stafford Loan • Need based • Unsubsidized Stafford Loan • Non–need based • Parent Loan for Undergraduate Students (PLUS) • Graduate PLUS Loan

38. Stafford Loans • FFELP/Direct Loans • Subsidized Stafford Loan • Need based • Unsubsidized Stafford Loan • Non-need based

39. Freshman - $3,500 Sophomore - $4,500 Junior/Senior - $5,500 Graduate and Professional - $8,500 FFELP /DirectAnnual Loan Limits

40. FFELP / Direct Loans • Interest rate: 6.8% fixed • FFELP - 1.5% origination fee, 1% default fee • Direct – 2.5% loan fees • Deferment/Cancellation provisions • 6 month grace period • 10 year repayment

41. Federal Plus (Parent) Loan • Interest rate: 8.5% fixed • Borrowers are parents of dependent undergraduate students – credit check is performed • FFELP - 3% origination fee; 1% insurance fee • Direct – 4% loan fees • Loan limits: • Cost of attendance less other aid • No aggregate limit • Repayment begins 60 days after fully disbursed

42. Scholarships

43. Scholarship Types • Merit (Honors) • Institutional • Activities • Community

44. Montana University System Honor Scholarship • MUS Honor Scholarship • Minimum GPA 3.5 • In top 25% of graduating class • Montana resident • Met college preparatory requirements • Accepted to a Montana University System College or University • Application and copy of college acceptance letter due January 31st

45. Governor’s Postsecondary Scholarship Programs • Governor’s Merit Scholarship • Top 25% of graduating class • Minimum GPA 3.0 • Same application as MUS Honor Scholarship • Due March 31st • Cannot be a MUS Honor Scholarship recipient • Governor’s Merit-At-Large Scholarship • Application online at www.mgslp.org • Can begin applying January 2, 2007 • Application, list of activities participated in, 250 word essay, college acceptance letter, copy of high school transcript, and Student Aid Report (SAR) • Due March 31st

46. Scholarship Searches • Colleges • Internet • www.safmt.org (MCIS) • www.collegeboard.org • www.finaid.org • Avoid Scams Free, Free, Free!

47. Other Resources • Health & Human Services • Veteran’s Benefits • Military Service Scholarship (ROTC) • Bureau of Indian Affairs (BIA) Grants • Tribal Assistance • Vocational Rehabilitation

48. Taxpayer Relief Act • Hope Scholarship Tax Credit • Lifetime Learning Tax Credit • Student Loan Interest Deduction • Education IRA • College Savings Plans See IRS Publication 970 @ http://www.irs.gov/publications/p970/index.html

49. Financial Aid Mistakes to Avoid • Four Most Common Mistakes • Submitting an Incomplete or Inaccurate FAFSA • Procrastination • Falling for Scholarship and FASFA Scams • Assuming that Financial Aid is for Someone Else

50. Free HelpSUNDAY, FEBRUARY 11, 2007COLLEGE GOAL SUNDAY • Come to College Goal Sunday to get FREE assistance on completing the FAFSA. • Financial Aid experts will be on hand to answer your questions, assist with application process. • See information card in your packet. • Get a PIN number before you come . . .