2009 Counselor Workshop

1. 2009 Counselor Workshop

2. Presenters

3. OASFAA Disclaimer • The Ohio Association of Student Financial Aid Administrators (OASFAA) is a non-profit organization and provides the following information as a free service to access staff and high school counselors. Access staff and high school counselors have permission to copy and distribute these materials to their students and families. Charges may not be assessed for the material or for the information presented. Permission must be granted for other use of this information or these materials. Contact the Outreach Chairperson listed on the OASFAA web site or e-mail: outreach@oasfaa.org

4. Agenda • Financial Aid Basics • Applying for Financial Aid • Changes to FAFSA and Need Analysis • Federal Aid Programs • State Aid Programs • Resources

6. Financial Need Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need

7. Need Comparison The Federal EFC is the same at each institution.

8. Sources of Aid • Federal government • States • Colleges • Private sources

9. FAFSA4caster • What is the FAFSA4caster? • Provides an estimated Expected Family Contribution (EFC) • Calculate eligibility for federal aid, including grants • Reduce time to complete the Free Application for Federal Student Aid(FAFSA) • Access FAFSA4caster at www.FederalStudentAid.ed.gov

10. Who should use the FAFSA4caster? Students who want to get an early start on the application process • Any student considering their financial options to help pay for a postsecondary education • High school juniors • Parents of younger students • Non-traditional students (adult learners)

11. Applying for Financial Aid

12. FAFSA Completion Resources • www.fafsa.gov • College Goal Sunday • 1-800-4 Fed Aid • 1-877-I ATTAIN

13. PIN Registration • Web site: www.pin.ed.gov • Can request PIN before January 1, 2010 • Not required, but speeds processing • May be used by students and parents throughout aid process, including subsequent school years

14. FAFSA on the Web • Web site: www.fafsa.gov • 2010-11 FAFSA on the Web available on January 1, 2010 • FAFSA on the Web Worksheet: • Used as optional “pre-application” worksheet

15. FAFSA on the Web • Built-in edits to help 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 renewal application process

16. 2010-11 FAFSA • 2010-11 FAFSA on the Web Worksheet • Instructions • 4 pages • 25 questions in 4 sections • 2010-11 Paper FAFSA • Instructions – 4 pages • Application – 6 pages • Pantone Colors • Parents: Purple Pantone 263 CVU • Students: Blue Pantone 633 CVU

17. 2010-11 FAFSA Changes • Greatly enhanced skip-logic: • Selective Service registration • Student age • Homeless students • State of legal residence • Drug Convictions • Reduction in Web navigation and more customized presentation of questions • Application redesign, updated navigation and help text should assist in ease of completion

18. 2010-11 FAFSA Changes • Federal Student Aid and the IRS have developed a collaborative solution that simplifies FAFSA completion • Students completing a 2010-11 FAFSA will be able to utilize IRS data retrieval beginning July 2010

19. FAFSA on the Web Worksheet • Dramatically redesigned • Reduced from eight to four pages • Serves as a guide to questions that will/may appear on FOTW • Skip logic means all students will not see same number and sets of questions

20. FSApubs • FSAPubs is the one-stop source for ordering all of Federal Student Aid’s free publications. • www.fsapubs.org • 1-800-394-7084

21. Frequent FAFSA Errors • Parent and student 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

22. Need Analysis Changes • Revised Student’s Marital Status Responses • Removed Veteran Questions “Will you receive Benefits” and “Type of Benefits” • Added New Income Exclusion for Cooperative Education Program Benefits • Added Guidance Regarding Military Housing Allowance

23. FAFSAProcessingResults • How CPS notifies student of FAFSA processing results: • Student with PIN can view SAR on-line at www.fafsa.gov • E-mail notification containing a direct link to student’s on-line SAR if student’s e-mail was provided on FAFSA (electronic or paper)

24. FAFSAProcessingResults How CPS notifies student of FAFSA processing results: • SAR Acknowledgement if filed electronically and student’s e-mail address was not provided • Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s e-mail address was not provided

25. 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 and mailing paper SAR • Submitting documentation to school’s financial aid office

26. Verification • Selected by the Central Processing System (CPS) or the Institution • Applicant & parent: Keep copies of 2009 Tax documents • If selected, completion is required before aid can be disbursed • Verification materials are sent to the financial aid office, not federal processor

27. Special Circumstances • Can’t include on FAFSA • Contact each college student has applied to • Each college will: • Request documentation • Review situation on case by case basis • Decisions final and cannot be appealed to U.S. Department of Education

28. Special Circumstances • Examples Reported to the Financial Aid Office • Parent loss of income • Marital Status changing from married/remarried to one parent • Medical not covered by insurance • Property loss not covered by insurance • Unusual debt or one-time income • Tuition expenses at an elementary or secondary school • Parent in college

29. Special Circumstances • Dependent students having difficulty obtaining parental information • May submit incomplete FOTW • FOTW provides examples of acceptable and unacceptable special circumstances • Students should contact financial aid office at their college • Students must document their special circumstance

30. Student Dependency Status

31. What Makes a Student Independent? -Born before 1/1/87 (for 2010-11 year)-Married-Graduate or professional student-Active duty military for purposes other than training-Veteran-Children-Dependents other than children or spouse-Orphan, foster care, dependent/ward of the court-Emancipated minor-Legal guardianship-Homeless or at risk of being homeless

32. Dependency Overrides • Possible Dependency Override: • Abuse at home • Abandonment by parents • NOT a Dependency Override: • Parents don’t claim student on taxes • Student does not live with parents and supports self • Parents don’t want to help pay for college • Parents refuse to provide information for FAFSA

33. Completion of FAFSA without Parental Information

34. No Access to Parental Information • FOTW asks whether student will provide parental data • If no, student indicates he or she meets special circumstances criteria • Student can submit FAFSA without parent information • FAFSA will have reject code • Student needs to work with school to complete application

35. Parents Refuse to Provide Information • Student indicates situation on FOTW, choosing option that he or she is applying only for an unsubsidized loan • Student submits FAFSA without parental information • EFC not calculated • Student must contact school regarding documentation and decision

36. FSApubs • Paper FAFSAs will not be available for order in bulk. • The FAFSA on the Web Worksheet will still be available for bulk order by schools. • Students will be able to obtain up to 3 paper FAFSAs by calling the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243) or by visiting www.edpubs.org.

37. Federal Financial Aid Programs

38. Federal Financial Aid Programs • Federal Pell Grant • need-based as determined by the Free Application for Federal Student Aid (FAFSA) • Maximum award for 2010-11 is $5,550 • Allows students to receive two Pell Grants during a single academic year • Must be enrolled at least half time each term

39. Federal Financial Aid Programs • Sets time limit of up to 18 semesters or equivalent for those who receive first Pell Grant on/after 7/1/08. • No Pell for those who were incarcerated for sexual offense. • Auto Zero EFC for Pell eligible students whose parent or guardian was a member of Armed Forces and died in Iraq or Afghanistan after 9/11/01.

40. Academic Competitiveness Grant (ACG) • $750 to first year students ($1,300 to second year students) • Federal Pell Grant recipient for same award year • First or second year student in: • A two or four year degree program; or • A one or two year certificate program offered at a two or four-year degree-granting institution

41. ACG Rigorous Program Options • Completion of a rigorous secondary school program • Coursework designated by the Secretary • Ohio Honors Diploma • Successful completion of any secondary school program for a student who completes at least two courses with a minimum passing test score on the exams in those courses

42. How Students Apply for ACG: • Submit FAFSA on the web • Submit Paper FAFSA • Self identify to financial aid office at college

43. SMART (National Science and Math Access to Retain Talent) Grant • Awarded to students in specific majors in the areas of Science, Math and Language Studies • Students must have a college GPA of 3.0 • A federal grant awarded to third and fourth year college students. • Must be Pell eligible, full-time, and a US Citizen • Eligibility is certified by the school. • The maximum award is $4,000 per year.

44. Federal TEACH Grant • provides grants of up to $4,000 per year to students who intend to teach in a public or private elementary or secondary school that serves students from low-income families. • Maximum of $16,000 for undergraduate and post-baccalaureate students • $8,000 for graduate students or current or former teachers or retirees

45. Federal TEACH Grant • Must file the FAFSA • Question on the FAFSA asks if the student plans to become a teacher • US Citizen or eligible non-citizen • Pro-rated for less than full-time • Must have scored above the 75th percentile on 1 battery of an admissions test –or- have and maintain a 3.25 GPA

46. Federal TEACH Grant • Must be repaid as a Direct unsubsidized Loan if student does not teach – • For at least four years within eight years of completing program, as a • Highly Qualified Teacher • At a Title I school • In a specified subject area

47. Federal Loans • Federal Stafford/Federal Direct Loan A federal loan program with two types of awards— 1. Subsidized • Need based. • Interest is fixed at 4.5% for all new loans disbursed after July 1, 2010. Interest is subsidized while the student is in school during deferment. 2. Unsubsidized • Not based on financial need. • Interest is fixed at 6.8% for all new loans disbursed after July 1, 2006. Interest accrues from time of disbursement of the funds.

48. Federal Loans Independent Students and Dependent Students whose parents have been denied the PLUS Loan are eligible for additional Unsubsidized Stafford Loans ($4,000 as freshman and sophomores and $5,000 as juniors and seniors)

49. Federal Loans • The origination fee is phased out entirely on July 1, 2010. • 1% default fee (deducted from the borrowers disbursement).

50. Federal Loans • PLUS Loans • Loans to parents of dependent students. • Loan limits are up to the cost of education less any financial aid received per academic year. • The interest rate is 8.5% for FFEL and 7.9% for Direct (program is selected by school) • Repayment begins within 60 days of full disbursement, but payments may be deferred while the student is in school. • 3% Origination Fee for PLUS Loans (deducted from the borrower’s disbursement). • 1% default fee (deducted from the borrower’s disbursement).