Sponsored by the University of Connecticut

1. Financial Aid 101 Webinar Sponsored by the University of Connecticut

2. Financial Aid 101 Presenter Mona Lucas Director Student Financial Aid Services Moderator Chris Dias Director of Programs UConn Alumni Association Panelist Jodi Kaplan Director of Marketing UConn Alumni Association

3. Financial Aid 101 Agenda • Basic premise of student financial aid • What is financial? How does it work? • Types and sources of financial aid • The application process • General eligibility criteria • The notification process

4. Basic Premise of Financial Aid 1. Student and families have the primary responsibility for funding the cost of higher education, to the extent income and assets allow (as determined by formula)

5. What is Financial Aid? 2. Money provided to students and families to help pay for postsecondary educational expenses Need based and non need based Grants, scholarships, loans, student employment Federal, state, institutional, private source

6. What is Financial Aid and How Does it Work? Financial Need Equation Cost of Attendance (COA) -Expected Family Contribution (EFC) – resulting from FAFSA data ________________________________________________________________________________________________________________ =Financial Need

7. What is Financial Aid and How Does it Work? Cost of Attendance (COA) • Combined direct and indirect costs related to educational program • Direct: Billed by the college (e.g. tuition, room and board) • Indirect: Usually estimates of required expenses not included on the fee bill (e.g. books, computer expenses, dependent care, mileage) • Varies according to school (tuition/fee rates differ) • Student status (in-state, N-E regional, out of State, full-time, part-time) • Housing status (on-campus, off-campus, living at home)

8. What is Financial Aid and How Does it Work? Cost of Attendance (COA) • COA may be adjusted to meet individual students’ needs, if the school accepts an appeal • COA increase may result in more need-based aid • Must be able to document additional expenses • E.g. fee bill for more-expensive meal plan or receipt for computer purchase

9. What is Financial Aid and How Does is Work? Expected Family Contribution (EFC) • Misnomer: EFC is NOT necessarily what a family will actually pay. • Measurement of a family’s financial strength • Calculated using data from a federal application (FAFSA) and a federal formula • Remains the same regardless of college • Exception: Special Circumstance appeal outcomes • Two components for dependent students: • Parent contribution • Student contribution • Determines the types and amounts of aid that students are eligible to receive

10. What is Financial Aid and How Does is Work? EFC for Dependent Student Parental contribution from income & assets + Student contribution from available income & assets _______________________________________________________________________________________________________________________________________________________ = Expected Family Contribution

11. Types and Sources of Financial Aid 3. Need-based/Non need-based Federal State Institutional Private

12. Types of Financial Aid • Scholarships (do not need to be repaid) • Need or merit-based • Grants (do not need to be repaid) • Need-based • Loans (must be repaid) • Need and non-need types • Federal or private lenders • Student or parent as borrower • Employment (money earned through working an actually job) • Need and non-need types • Federal and state Work-Study (need-based) • Student Labor (non need-based) • UConn offers all of these forms of Aid

13. The Application Process 4. Free Application for Federal Student Aid (FAFSA) Required for all types of Federal and some state and institutional aid; (DO NOT go on the .com site – that is a service for free) www.fafsa.ed.gov CSS Profile Institutional Applications Verification

14. Financial Aid Priority Deadline • Varies school to school • For the 2013-2014 academic year, the FAFSA is available as of January 1st • CSS profile available in the Fall • FAFSA priority Deadline for UConn is March 1st

15. Step 1: Get Student & Parent Financial Aid Personal Identification Numbers(PINs) • Web site: www.pin.ed.gov • Can request PIN now • Sign FAFSA electronically • May be used by students and parents throughout aid process, including subsequent school years’ FAFSAs and signing Federal Direct Loan Master Promissory Note(MPN)

16. Step 2: Collect Appropriate Documentation before starting FAFSA • Social Security Numbers (student and parents) • Alien Registration # (permanent residents only) • Student’s driver’s license number • State residency information • Marital information (dates) • 2012 W-2 Forms (statement of earned wages) • May estimate for initial completion by deadlines • 2012 Tax forms (student & parent, if applicable) • May use last year’s data to estimate for initial completion by deadlines • Email addresses • Other income info (contributions to tax-deferred pensions/savings, child support paid/received, etc.) • Investment information (NOT IRAs) • School codes (also available on online FAFSA)

17. Pros to Filing FAFSA electronically • Built-in edits to prevent errors • Skip logic allows student and/or parent to skip unnecessary questions • Option to use Internal Revenue Service (IRS) data retrieval • 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

18. Tips for completing FAFSA • Read each question carefully • Some questions apply to students, others to parents – don’t mix! • Some questions tell you what income/ asset data NOT to include – be careful! • Double-check all data entry • If estimating income/ asset information, supply your best reasonable guess • You may go back and make corrections (possibly IRS Data Retrieval) if there are significant changes • When using tax forms, double-check the type of form you are using (1040EZ, 1040A, 1040) to reference the correct specific line numbers

19. Maximizing your Financial Aid Consideration • Meet all deadlines • If you are selected for verification, immediately submit all requested documentation to the office • Complete your income tax returns as quickly as possible-file electronically • Submit completed and signed documents to our office • Be sure student’s name and student id is on all pages you submit • Keep track of dates and times you submitted items, keep a copy for yourself • Check your university email account frequently-all information pertaining to changes will be sent there • Regularly check your financial aid status through Student Administration System

20. Avoid these Common Mistakes • Missing deadlines • Failure to sign the online FAFSA with your • Failure to submitted your FAFSA without double-checking • Failure to verify your Student Aid Report information • Delays in submitting verification documents

21. Avoid these Common Mistakes (Continued) • Incomplete or illegible documents • Submitting unsolicited documentation • Forgetting to sign required forms

22. Frequent FAFSA Errors • Incorrect 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

23. General Federal Eligibility Criteria Highlights 5.

24. General Federal Aid Criteria Highlights • Must be U.S. citizen or eligible non-citizen • Must be registered with Selective Service (if male and required) • Student must have valid Social Security Number (SSN) • Must include parent of dependent student

25. Overview of the Process

26. Student Notification Process 6.

27. Student Notification Process • March-April: financial aid notifications are emailed to admitted students • March-August: verification document requests are sent to students

28. Student Notification Process

29. Tips: Making Decisions on Aid • Never decline financial aid you don’t understand • Know whether or not aid is guaranteed throughout program • Need-based aid eligibility is determined each year, after annual renewal of FAFSA and requires Satisfactory Academic Progress • Certain financial aid programs are renewable; Certain aid programs are for students enrolled in designated majors Consider Federal loans before private loans, as these offer fixed interest rates and guaranteed benefits: • Perkins Loan • Subsidized Direct Stafford Loan • Unsubsidized Direct Stafford Loan • Direct Parent Loan for Undergraduate Students (PLUS)

30. Scholarship Searches • Local businesses and civic organizations • State Dept. of Education • School Counselor • Places of employment • Student or parent • Internet - many sites, including: • http://fastweb.com • http://fastap.org • College or University • Academic, athletic, and other talent-based scholarships

31. Financing Alternatives • Monthly Payment Plans • Allows payments to be spread over 10 months or less • Options vary by school • Contact individual school(s) for information • Alternative/Private Loans • Applicants must be “credit–worthy” • Payments may be deferred while student is in school • Options vary by lender • Usually the loan of last resort • Interest rates, fees, and repayment policies determined by individual lenders and are subject to change

32. Don’t Forget... • Meet deadlines • Know the application process • Check email frequently • Don’t decline aid prematurely • Disclose outside resources early • Consider private/ alternative loans and payment plans

33. QUESTIONS?