Financial Aid Information Ron Day, Director Kennesaw State University rday9@kennesaw.edu

1. Financial Aid Information Ron Day, Director Kennesaw State University rday9@kennesaw.edu

2. HEOA – signed into law 08/14/2008 • Many – many changes to federal regulations for the 2009-2010 and 2010-2011 academic years. • Biggest change – to FAFSA • The Dept of Ed Sec stated the FAFSA would be cut down from 10 pages/130 questions – to a quick two-page, 27 question form. • Guess What?

3. FAFSA • The 2009-2010 FAFSA is seven questions longer. • Congress mandated that the Sec. simplify the FAFSA – yet the DOE stated Congress added requirements for new information that will probably mean more FAFSA questions in the future.

4. New Questions • Are you an emancipated minor as determined by a court in your State? • At any time on or after 7/01/2008 – did your H. S. or School District homeless liaison determine that your were an unaccompanied youth who was homeless?

5. New Questions cont. - • At any time on or after 7/01/2008 – did the director of an emergency shelter or transitional housing program funded by US Dept of Housing and Urban Development determine that your were an unaccompanied youth who was homeless?

6. New Questions cont. - • At any time on or after 7/01/2008 – did the director of a runaway or homeless youth basic center or transitional living program determine that you were an unaccompanied youth who was homeless or were self-supporting and at risk of being homeless?

7. WOW!! Can we make this form any more complicated?

11. A Complete Overhaul is Needed • Rational approach to Federal Aid has 4 components: • A simplified FAFSA - Use IRS Adjusted Gross Income (AGI) and # of exemptions claimed to determine a student’s eligibility for federal aid. Replace current FAFSA w/ two-page form – with questions easily obtainable and verifiable and necessary.

16. Cont. • A Fed. Student Aid Commitment (FSAC) that determines a particular student’s eligibility, - that is based on 250% of respective poverty levels for grants and 400% of respective poverty levels for work-study and subsidized loans.

17. Poverty Levels 2008 • 2008 HHS Poverty Guidelines

18. Family of 4 Poverty Level is $21,200. 250% = $53,000 (or less) – would receive federal grants, i.e., Pell Grant 400% = $84,800 (or less) – would receive Subsidized Student Loans

19. Cont. • A Fed. Student Aid Target (FSAT) that sets the maximum amount of federal subsidized aid (grants/loans) the neediest student could receive. The FSAT that is based on 100% of Tuition/Fees, Books/Supplies, and Rm/Bd at a public, 2-yr college.

20. Cont. • The consolidation of programs into single grant (Pell), loan (subsidized student loan, unsubsidized student loan, and Parent Loan for Undergraduate Students in both the Federal Family Education Loan and Direct Loan programs) and work study (Federal Work Study) programs.

21. Federal Government • Pell Grant tables have not been released. We are told it will be March before we know amounts. • The “Stimulus Plan” – signed into law Tuesday, Feb. 17, 2009, apparently contains verbiage regarding Pell increases • It appears student loans may also increase for 2009-2010

22. State • Tuition/Fees will not be set until June (most likely mid June). • Awards will be tentative until that time • Governor’s Scholarship has been discontinued. • Possibility of HOPE decreases, i.e., Book Stipend – and possibly Fee decreases in the future.

23. FAFSA Free Application for Federal Student Aid

24. FAFSA • Must be completed each year. • Based on the previous tax year, i.e., for 2009-2010 – based on the 2008 tax year. • Be cautious of websites not associated with the U. S. Dept of Education • Must be completed to determine eligibility for federal grants, student loans, and student work programs.

25. Free Application for Federal Student Aid (FAFSA) • A standard form that collects demographic and financial information about the student and family • May be filed electronically or using paper form • Available in English and Spanish

26. FAFSA • Information used to calculate the Expected Family Contribution or EFC • The amount of money a student and his or her family may reasonably be expected to contribute towards the cost of the student’s education for an academic year • Colleges use EFC to award financial aid

27. FAFSA • May be filed at any time during an academic year, but no earlier than the January 1st prior to the academic year for which the student requests aid • For the 2009-10 academic year, the FAFSA may be filed beginning January 1, 2009 • Colleges may set FAFSA filing deadlines

28. FAFSA on the Web • Web site: www.fafsa.ed.gov • 2009-10 FAFSA on the Web available on January 1, 2009 • FAFSA on the Web Worksheet: • Used as “pre-application” worksheet • Questions follow order of FAFSA on the Web

35. File Electronically Good reasons to file electronically: • Built-in edits to prevent costly errors • Skip-logic allows student and/or parent to skip unnecessary questions • More timely submission of original application and any necessary corrections • More detailed instructions and “help” for common questions • Ability to check application status on-line • Simplified application process in the future

36. Frequent Errors • Social Security Numbers • Divorced/remarried parental information • Income earned by parents/stepparents • Untaxed income • U.S. income taxes paid • Household size • Number of household members in college • Real estate and investment net worth

37. H. S. Counselor FAFSA Workshop Friday, March 13, 2009 9:00 a.m. – 12:00 noon Kennesaw State University Continuing Education Center