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What You Need to Know about Financial Aid

Learn about financial aid essentials such as cost of attendance (COA), expected family contribution (EFC), different types of financial aid, and the Free Application for Federal Student Aid (FAFSA). Get prepared for college and understand the financial aid application process.

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What You Need to Know about Financial Aid

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  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

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