Understanding the FAFSA A Financial Aid Overview

1. Understanding the FAFSA A Financial Aid Overview Presented by Fred Stennis Office of Federal Student Aid Awareness & Outreach Division U.S. Department of Education

2. Mission Federal Student Aids mission is to ensure that all eligible individuals benefit from federal financial assistance—grants, loans, and work-study programs—for education beyond high school. By championing the promise of postsecondary education, we uphold its value as a force for greater inclusion in American society and for the continued vitality of America as a nation

3. Today’s Topics • What Is the FAFSA? • Before Applying • When to Apply • How to Apply • What to Expect After Applying • Where to Get Help and Info • Updates for 2012-13

4. “…my parents make too much money, so I won’t qualify for aid.” Myths About Financial Aid Reality:There is no income cutoff to qualify for federal student aid.

5. “...the form is too hard to fill out.” Myths About Financial Aid Reality: The FAFSA is easier than ever, especially if you fill it out online at www.fafsa.gov

6. “…only students with good grades get financial aid.” Myths About Financial Aid Reality: Maintain “C” average and complete enough courses in a timely manner.

7. What is Federal Student Assistance? Financial assistance for students enrolled in an eligible program at a Title IV participating school.

8. Basic Eligibility Requirements Students must have: • High school diploma, GED or ATB • A Social Security Number (with limited exceptions) • U.S. citizenship or be an eligible noncitizen • Registered with the Selective Service (Males) Students also need to: • Be enrolled or accepted for enrollment in an eligible program • Be pursuing a degree, certificate or credential • Maintain ‘Satisfactory Academic Progress’

9. Types of Federal Financial Aid • Federal Grants • Federal Work-Study • Federal Student Loans In 2011-12, the Federal Student Aid programs will provide more than $150 billion in aid

10. Types of Federal Grants SMART

11. Federal Workstudy Provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses. • Eligible employers (On-campus or off-campus employment) • Schools • Federal, state or local public agency • Private nonprofit organization • Community service activities • Students are paid at least federal minimum wage • Not all colleges participate in the Federal Work-study program • Funds depend on availability at the college 13

12. Federal Student Loans(Must be repaid – Loan amount varies) • Federal Perkins Loan • Subsidized Direct Loan • Unsubsidized Direct Loan • PLUS Direct Loan (Parents)

13. Student Loan Interest Rate Current Interest Rates Up to June 30, 2012 • Subsidized Loan 3.4% fixed • Unsubsidized Loan 6.8% fixed • PLUS Loan 7.9%

14. How To Apply Application Methods • Paper FAFSA – NOT recommended • Order at 1-800-4-FED-AID or • www.edpubs.gov or • Download PDF at www.fafsa.gov • Apply through college (if college offers thatoption) • Quickest and easiest: FAFSA on the Web atwww.fafsa.gov

15. Application Availability • January 1: Submit FAFSA as soon possible • Check state and institutions’ deadlines • Obtain and review admission and financial aid information from each school you are applying Key Dates: Students are encouraged to file their FAFSA as soon as possible after January 1stof their senior year in high school.

16. Homepage Makeover • Simplified options • Updated graphics • An announcement section for important updates throughout the year • Access to FAFSA4caster • Access to FAFSA PDF and information about getting a paper FAFSA

17. FAFSA Statistics As of January 1, 2012 FAFSA Submitted 2010-20112011-2012 approx. 21 Mill. approx. 20.3 Mill. (Jan. 1, 2010 – Jun. 30, 2011) (Jan. 1, 2011-To Date) Avg. Submission Time 2010-20112011-2012 32 Minutes 23 Minutes

18. The Application Process High Level Overview of the FAFSA Steps Student reviews award package; compares to other award letters; student determines which college to attend College reviews info and assembles award package for the student Student completes the FAFSA and signs with FSA PIN FAFSA is processed by FSA; Student receives a SAR; College receives information if listed on the FAFSA

19. Student Aid Report (SAR) • A Student Aid Report (SAR) is sent to all students that submit a FAFSA. • SAR information is sent to the students • electronic SAR emailed to applicant within 3-5 days • Email not provided: paper SAR mailed to applicant within 7-10 days • SAR will reveal financial aid eligibility 2009-2010 SAR

20. Student Aid Report (SAR)

21. Cost of Attendance Tuition & Fees Room & Board Books & Supplies Equipment & Transportation Miscellaneous Personal Expenses Child Care $Total Cost $ Parent Contribution + Student Contribution = Expected Family Contribution (EFC) Financial Aid Terminology Cost of Attendance (COA) - Expected Family Contribution (EFC) =Financial Need

22. Independent Student • If any of the following criteria applies, the student is considered independent : • 24 years or older • Married • Master’s or Doctorate Program • Children and you provide ½ support • In foster care since turning 13 • Emancipated minor • Currently or was in legal guardianship • Homeless • Serving Active Duty in U.S. Armed Force

23. Special Circumstances • Divorce, Separation, Death • Job Loss • High Medical Expenses • Elementary and Secondary Expenses • Each Situation is Dealt With On A Case-By-Case • Basis • Circumstances Must be Well Documented • Financial Aid Director Has Final Say…

24. 2012-2013 IRS Data Retrieval • Available Feb. 1, 2012 for 2012-13 FAFSAs IRS Data Retrieval 2010-20112011-2012 933,000 Retrievals 4.9 Mill. Retrievals Users who transferred IRS information into their FAFSA

25. IRS Data Retrieval

26. IRS Data Retrieval

27. Further Information www.studentaid.ed.gov - www.studentaid.ed.gov/collprep - www.studentaid.ed.gov/guide - www.studentaid.ed.gov/pubs www.studentaid.ed.gov/scholarship 1-800-4-FED-AID (Customer Service)

28. FSA Contact Center • The Federal Student Aid Information Center (FSAIC) operates a toll-free hotline to provide: Information about federal student aid programs; help completing the FAFSA; help in making corrections to a student’s SAR; information about the process of determining financial need and awarding aid; and information about federal student loans. www.fafsa.gov has help text and live chat • 1-800-4-FED-AID (1-800-433-3243) • TDD for hearing impaired individuals: 1-800-730-8913 • Callers may choose English or Spanish Hours: Monday – Friday: 8:00am – Midnight ET Saturday: 9:00am – 6:00pm ET Sunday: Closed

29. Scenarios FAFSA Scenarios What’s the right answer?

30. Common Question • I am a senior this year and I want to fill out an FAFSA application, but my parents will not provide me with their income tax information. Can I still qualify for federal assistance? If yes, what program (s). Yes, Unsubsidized Loans.

31. Scenarios Continued • My wife and I both work and we currently have one child in college and another due to graduate from high school this year. As parents we know we will need federal assistance for our second child as well as the first, do we need another PIN ? No, however, each student applicant will need there own individual PIN. As parents you can use your current PIN to sign the FAFSA application.

32. Scenarios Continued • My parents are undocumented, but I was born in the United States and I am a senior in high school. Can I apply for federal student aid? The FAFSA application requires my parents information even though they are undocumented? Yes, you (the student) can apply for federal student aid because you are a U.S. citizen. If the parents cannot/will not provide the financial aid information, the student is on eligible for an unsubsidized loan from the federal government along with state/institutional aid

33. Paying for College: A Financial Aid Overview THANK YOU FOR YOUR PARTICIPATION!!!