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 • Cost of attendance (COA) • Expected Family Contribution (EFC) • What is financial need • Categories, types, and sources of financial aid • Free Application for Federal Student Aid (FAFSA) • Special circumstances

3. What is Cost of Attendance (COA) • Direct costs • Indirect costs • Direct and indirect costs combined into cost of attendance • Varies widely from college to college

4. Budget Components (2011-2012) Budget Resident Budget Non-Resident Tuition 13297 Room/Board 8272 Transportation 1117 Personal 1500 Books/Supplies 500 24,686 • Tuition 7434 • Room/Board 8272 • Transportation 1117 • Personal 1500 • Books/Supplies 500 18,823

5. Comparison Cost of Schools Northwest University X Cost of Attendance 23,000 EFC- 6,800 Gross Need 16,200 University Y Cost of Attendance 18,823 EFC- 6,800 Gross Need 12,023 Cost of Attendance 28,500 EFC- 6,800 Gross Need 21,700

6. What is the Expected Family Contribution (EFC) • Amount family can reasonably be expected to contribute • Stays the same regardless of college • Two components • Parent contribution • Student contribution • Calculated using data from a federal application form and a federal formula

7. What is Financial Need Cost of Attendance –Expected Family Contribution = Financial Need

8. Types of Financial Aid • Scholarships • Grants • Loans • Employment

9. Federal Pell Grant Teacher Education Assistance for College and Higher Education Grant Federal Supplemental Educational Opportunity Grant Federal Perkins Loan Federal Work-Study Subsidized and Unsubsidized Loans PLUS Loans Common Federal Aid Programs

10. FAFSA on the Web • Website: www.fafsa.gov • 2012–13 FAFSA on the Web available on January 1, 2012 • FAFSA on the Web Worksheet: • Used as “pre-application” worksheet • Questions follow order of FAFSA on the Web

11. FAFSA on the Web Good reasons to file electronically: • Built-in edits to prevent costly errors • Skip logic allows student and/or parent to skip unnecessary questions • Option to use Internal Revenue Service (IRS) data retrieval

12. IRS Data Retrieval • While completing FOTW, 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 in new window • Applicant chooses whether or not to transfer data to FOTW

13. Federal Student Aid Personal Identification Number (FSA PIN) • Website: www.pin.ed.gov • Sign FAFSA electronically • Not required, but speeds processing • May be used by students and parents throughout aid process, including subsequent school years

14. FAFSA on the Web Worksheet 2012–13 FAFSA on the Web Worksheet—4-page booklet containing: • Instructions • 22 questions in 4 sections

15. FOTW Worksheet • General student information • Student’s dependency status • Information about the parents of dependent students • Information about the student (and spouse)

16. Signatures • Required • Student • One parent (dependent students) • Format • Electronic using PIN • Signature page • Paper FAFSA

17. Frequent FAFSA 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

18. FAFSA Processing Results • Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA submitted • College reviews ISIR • May request additional documentation, such as proof that a sibling is enrolled in college

19. Verification and Request for IRS Tax Return Transcript • Student must submit IRS Tax Return Transcript (self, spouse, or parents) when: • Applicant or parent did not use IRS Data Retrieval Process (initial or correction) • Information included on FAFSA via IRS Data Retrieval Process is subsequently changed • Married applicant and spouse file taxes separately • Parents of a dependent student file taxes separately • Marital status of applicant or parent changes after end of tax year on Dec. 31, 2011 • Applicant, spouse or parentfile an amended tax return

20. Awarding Process 18,823 - 2,958EFC 15,865 Need - 2,600 Pell 13,265 - 1,500 Tower Scholar 11,765 - 1,000 MO Access 10,765 10,765 - 1,000Perkins Loan 9,765 - 3,500Sub. Loan 6,265 - 2,400Work Study 3,865 - 2,000Unsub. Loan 1,865+(2,958)=4,823 Plus EFC

21. Award Letter

22. Making Corrections If necessary, corrections to FAFSA data may be made by: • Using FAFSA on the Web (www.fafsa.gov) if student has a PIN; • Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or • Submitting documentation to college’s financial aid office

23. Special Circumstances • Change in employment status • Medical expenses not covered by insurance • Change in parent marital status • Unusual dependent care expenses • Student cannot obtain parent information