Financing Education Beyond High School

1. 2010 - 2011 Financing Education Beyond High School

2. Cynthia Davidson, M.Ed.Assistant Director/Financial AidRutgers, The State University of New JerseyCampus at CamdenArmitage Hall, B-44311 N. Fifth StreetCamden, New Jersey 08102(856) 225-6039cynthiad@camden.rutgers.edu

3. HELPFUL HINTS • Complete your FAFSA before established deadlines. • Be sure your social security number is correct. •  Dollar amounts should be rounded off to the nearest whole dollar. • For FAFSA on the Web applicants, bothstudent andparent ofdependentstudent must secure a “PIN” which will serve as your signature when applying each year and to make corrections. • Keep copies of all documents. • Remember to respond to all requests for additional information to the appropriate agencies. • Maintain Satisfactory Academic Progress

4. USEFUL PHONE NUMBERS! Rutgers University Office of Financial Aid 1-732-932-7057 (New Brunswick) 1-973-353-5151 (Newark) 1-856-225-6039 (Camden) U.S. Department of Education 1-800-4FED AID NJ Higher Education Student Assistance Authority 1-800-792-8670

5. USEFUL WEBSITES ! 8Rutgers University Home Page8Rutgers Office of Financial Aidwww.rutgers.edu www.studentaid.rutgers.edu 8FAFSA on the Web8PIN Application or Update www.fafsa.gov www.pin.ed.gov 8N.J. Higher Education Student8Financial Aid Information Assistance Authority www.finaid.org www.hesaa.org 8Internal Revenue Service www.irs.gov

6. Avoid Being Scammed To check legitimacy of scholarship search services or individuals, for information about financial aid scams, and tips to avoid being scammed visit these Web sites: • U.S. Department of Education: www.studentaid.ed.gov/students/publications/lsa/index.html • Federal Trade Commission: www.ftc.gov/bcp/conline/publs/alerts/ouchart.htm • Better Business Bureau: www.bbb.com

7. Private Scholarship Search Free Internet scholarship search engines: • FinAid on the Web: www.finaid.org • College Board: www.collegeboard.com • FastWeb: www.fastweb.monster.com • Scholarship Resource Network Express: www.srnexpress.com • GoCollege: The Collegiate Websource: www.gocollege.com

8. Private Scholarship Search • Local library resources • Local businesses and civic organizations • Parents’ employers

9. Agenda Definition of financial aid Definition of financial need and how it is determined Descriptions of major federal, state, and university financial aid programs How to apply for financial aid, including the Free Application for Federal Student Aid (FAFSA), and how to avoid errors

10. What is Financial Aid? • Scholarships • Grants • Loans • Employment opportunities

11. Types of Aid • Gift aid: Grants and scholarships (need-based or merit-based) • Self-help aid: Loans and employment (need-based or non-need-based)

12. Definition of Need Cost of attendance (COA) – Expected family contribution (EFC) = Need

13. Cost of Attendance • Tuition and fees • Room and board • Books, supplies, transportation, and miscellaneous personal expenses, including documented costs for a personal computer • Study abroad costs • Disability-related expenses

14. Need Varies Based on Cost

15. GRANTS WORKSTUDY LOANS PELL Perkins SEOG SubsidizedStafford Unsubsidized Stafford Academic Competitive Grant 1st & 2nd yr SMART Grant 3rd & 4th yr PLUS (Parent Loanfor Undergraduate Students) Federal Programs

16. Federal Pell Grants • Awarded to eligible undergraduates pursuing first baccalaureate degree and certain students enrolled in post-baccalaureate teacher certification or licensing programs • Portable • Actual award amount based on COA, EFC, and enrollment status • Maximum award for 2009-10 = $5,350

17. Federal Supplemental Educational Opportunity Grants (FSEOG) • Eligible students: • Undergraduates pursuing first baccalaureate or professional degree • Awarded first to students with “exceptional financial need” (i.e., students with lowest EFCs at that school) • Priority to Federal Pell Grant recipients • Annual award amounts: • $100 minimum • $4,000 maximum

18. Federal Work-Study (FWS) Earnings • Eligible students: Undergraduate, graduate, and professional students • Employment may be on or off campus • Eligible employers: • Schools • Federal, state, or local public agencies • Schools must use portion of FWS funds for community service employment activities

19. Federal Perkins Loans • Eligible students: • Undergraduate, graduate, and professional students • Priority to students who show “exceptional need,” as defined by school • Loan amount varies • Maximum annual loan amounts: • $4,000—undergraduate students

20. Federal Perkins Loans • Interest rate: 5% • 9-month grace period • Repayment period may be up to10 years • Deferment and cancellation provisions available

21. Stafford Loans • School determines loan eligibility and delivers loan proceeds to students • Fixed interest rate of 6.0 %

22. Stafford Loans • Subsidized: Must demonstrate “need” • Unsubsidized: Not based on “need” • Base annual loan limits (combined subsidized and unsubsidized): • $3,500 for 1st year undergraduates • $4,500 for 2nd year undergraduates • $5,500 for each remaining undergraduate year • $2,000 additional Unsubsidized loan for all students

23. Stafford Loans • After July 1, 2010 all Stafford Loans will be Direct Loans (legislation pending) • Repayment begins after 6-month grace period • Maximum repayment period between 10 and 30 years depending on repayment plan chosen • Deferment and cancellation provisions available

24. ALTERNATIVE LOANS • Parent loan program for parents of dependent undergraduate students (PLUS) • NJCLASS Loan • Other Private Loans • Annual Alternative loan limit: COA minus other aid

25. Grant Scholarships Tuition Aid Grant Bloustein Educational Opportunity Fund NJ STARS I & II State Programs

26. Grants Scholarships Loans Payment Plan Institutional Assistance Grant Academic Institutional Loan Program Institutional Tuition Payment Plan College Scholarships College and University Sources

27. Application Process • Submit FAFSA prior to school’s deadline • Most aid awarded on “first-come, first-served” basis • To ensure maximum consideration for federal, state, and institutional aid, check information from each school to determine: • Required application materials • Application deadlines

28. ERRORS can be COSTLY! Errors on the FAFSA or supplemental forms may DELAY application processing and result in the LOSS of financial aid funds. Read the instructions and complete all forms carefully!

29. 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

30. 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 “pre-application” worksheet • Questions follow order of FAFSA on the Web

31. FAFSA on the Web Updates on Filing 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 renewal application process

32. Student Financial Aid (SFA) PIN • Web site: www.pin.ed.gov • Sign FAFSA electronically • 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

33. Application Processing StatisticsTotal Filers through Week 25 • 7.08% increase from 2007-08 to 2008-09 • 20.12% increase from 2008-09 to 2009-10 • Paper applications >1% of total applications processed in 2009-10

34. 2010-11 Enhancements • Students will receive more detailed information on their FOTW confirmation page and Student Aid Report (SAR) • An estimate of the Pell Grant award amount • An indication of student loan eligibility • Links to College Navigator for detailed college information – programs offered, tuition rates, graduation rates, etc. • Also, students can now e-mail the confirmation page to their own personal email address

35. 2010-11 Enhancements • Retention, graduation and transfer rates within FAFSA on the Web • When students use the school code lookup within FOTW to lists colleges on the form, they will be presented with each college’s reported retention, graduation and transfer rates • This information will also display on the FAFSA on the Web confirmation page

36. 2010-11 Enhancements • Enhanced skip logic • Selective Service registration • Will only be offered to students who are male and younger than 26 • Simplification for students 24 and older and for married students • If the applicant is determined to be independent due to date of birth or marital status, only two dependency questions will be displayed (questions 53 and 54 – to help independent applicants accurately report household size)

37. 2010-11 Enhancements • Identifying Homeless Students • A new screening question will display asking applicants if they are homeless or at risk of being homeless • The three homeless determination questions will only be presented if student is 21 or younger and answers “Yes” to the homeless screening question • Students who are 22 or 23 and answer “Yes” to the homeless screening question, and students who are 21 or younger but answer “No” to all three homeless determination questions, will be – • Taken down an alternate path to allow them to submit their FAFSA without parental data, and • Directed to follow-up with their financial aid office

38. 2010-11 Enhancements • Identifying students for Unsubsidized Loan Only • An applicant who is determined to be dependent but whose parents refuse to provide parental data on the FAFSA and refuse to provide financial support will have the option to submit the FAFSA for an unsubsidized loan only • FAFSA on the Web will present a path that allows the applicant to indicate that he or she will not provide parental data on the form and will allow the applicant to submit the FAFSA

39. The 2010 – 2011 FAFSA • Expanded student marital status to four options to facilitate pending implementation of IRS data share process (Question 16) • Removed veterans’ benefits questions because they are no longer required per HEOA • Added text explaining that the value of military housing or a military housing allowance should not be included as untaxed income benefits (Question 45g and Question 93g) • Added a question about earnings from work under a cooperative education program at an institution of higher education to be excluded from income (Question 44f and Question 92f)

40. FAFSA on the Web • Status indicators will guide applicants through web modules (e.g., student demographics, basic eligibility, dependency status) • Student and parent sections of the application will be more clearly identified • Dynamic question labels, help text and instructions based on applicant profile (e.g., marital status, responses to tax filing status, type of tax return filed)

41. Examples of New Web Flow Logic • State of Legal Residence The applicant’s state of legal residence is usually the same as mailing address state. The state of legal residence and date of residency questions will be suppressed for those who confirm the addresses are the same and have been for at least 5 years • Drug Convictions Will not be presented to applicants who indicate that they will be a first-time college student • Additional Financial Information and Untaxed Income • These questions will be presented in a much simplified “check box” format. Keywords will replace specific line references and applicants will be prompted to report amounts as needed

43. IRS-FSA Interface Overview • Federal Student Aid and the IRS are developing a collaborative solution that simplifies FAFSA completion • The new process will allow FAFSA on the Web applicants to request and retrieve their income tax data from the IRS • Once the data is retrieved it can be automatically transferred to FOTW

44. IRS Data Share • Populate with IRS Data • No taxpayer consent needed because data is not released to a third party • While in FAFSA on the Web, applicant (tax filer) submits a real-time request to IRS. • IRS sends real-time results to applicant (taxpayer) in new window. • Applicant (tax filer) transfers data to FAFSA on the Web. 44

45. How will this process work? Students will begin completing FOTW. A link to IRS will display in the income section for the parent and the income section for students. “You may access the IRS site to retrieve your income data to complete your application or use your tax return. If you would like to retrieve your data from the IRS click here.”

46. How will the IRS site be accessed? Through the FSA PIN authentication and IRS authentication processes.

47. How will applicants transfer data to FOTW? Select “Transfer” to return the IRS data to the FAFSA session

48. 2010 -2011 FAFSA on the Web Worksheet A 4-page booklet containing: • An introduction to the web application • Approximately 45 questions in 4 sections • student/parent demographic information and taxed/untaxed income information

49. FOTW Worksheet: Section 1 General student information: • Name • Citizenship Status • Student Marital Status • Selective Service Information

50. FOTW Worksheet: Section 1 General student information: • Drug Conviction questions • Parents’ educational background