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Financial Aid 2013-2014

Financial Aid 2013-2014. Financial Aid Night Presentation Brought to you with cooperation from ISFAA Presented by: Kelly McGuire, Trine University Director of Financial Aid. Items to Discuss. What is financial aid? What is the Cost of Attendance?

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Financial Aid 2013-2014

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  1. Financial Aid 2013-2014 Financial Aid Night Presentation Brought to you with cooperation from ISFAA Presented by: Kelly McGuire, Trine University Director of Financial Aid

  2. Items to Discuss • What is financial aid? • What is the Cost of Attendance? • What is the EFC and how is financial need calculated? • What sources does financial aid come from? • How to apply for financial aid, including FAFSA & how to avoid errors • I have completed the FAFSA – what happens next? • Closing and Questions

  3. What is Financial Aid? • Financial aid is funds provided to students and their families to assist them in paying for postsecondary education expenses.

  4. What is Cost of Attendance (COA)? • Direct costs (pay directly to the school) • Tuition & Fees • Room & Board • Indirect costs (costs associated with attending school but not necessarily paid to the school) • Books & Supplies • Transportation • Miscellaneous personal expenses • Off Campus housing • Direct and indirect costs are combined into the total cost of attendance • Vary widely from college to college

  5. What is the Expected Family Contribution (EFC)? • Two components • Parent contribution • Student contribution • Calculated using FAFSA or FAFSA4Caster data and a federal formula. Main components are: • Family size • # in college • Students income/assets • Parents income/assets • Stays the same regardless of college choice • Colleges use EFC as an index of your family’s financial strength to award financial aid

  6. How is financial need determined? Financial Need = COA-EFC College A COA $46,246 EFC - 4,500 Need = $41,746 COA - Variable EFC - Constant • College B COA $21,174 EFC - 4,500 Need = $16,674

  7. Types of Financial Aid Grants Scholarships Loans Employment

  8. Sources of Financial Aid Financial aid comes from a variety of sources. federal government state government college (institutional aid) outside/ private sources

  9. Common Federal Aid Programs Grants • Federal Pell Grant • Teacher Education Assistance for College and Higher Education (TEACH Grant) • Federal Supplemental Educational Opportunity Grant Self - Help • Federal Perkins Loan • Federal Work-Study • Direct Stafford Loans • Parent PLUS Loans

  10. The Big Three Maximum Award Amounts for 2012-13 • State of Indiana Grant Program (ICHE) • Federal Pell Grant • Federal Supplemental Education Opportunity Grant (FSEOG) Total = $16,606

  11. Federal Work-Study A need-based employment program that provides on- and off-campus jobs to students.

  12. Loan Programs When evaluating loan options, consider the following: Repayment Options & Grace Period Source of Loan Subsidized vs. Unsubsidized Interest Rate Start by knowing a your rights and responsibilities.

  13. U. S. Department of Education Federal Loan Programs, 2012-13 Type Rate Grace *Note: Stafford Loans (unsubsidized) for Graduate students have a fixed interest rate of 6.8% through 2013. * *FAFSA and Program Application(s) are Required

  14. You may be eligible for aid, but... • You must apply to find out! • Everyone will be eligible for some type of financial aid. • Every family should fill out a FAFSA even if they chose to decline some of the aid they receive • Apply it is FREE!

  15. How to Apply for Financial Aid Easy as 1-2-3

  16. How to Apply To be considered for student aid, a student must complete all forms required by a college. Note: Communicate with each college to inquire about steps to a complete application and their deadlines.

  17. Free Application for Federal Student Aid (FAFSA) • A standard form that collects family’s demographic and financial information used to calculate the student’s EFC (available in English and Spanish) • How to apply: • Paper FAFSA • FAFSA on the web at www.fafsa.gov • It’s FREE … FreeApplication for Federal Student Aid

  18. Dependent vs. Independent Students • At least 24 years old by Dec. 31st of award year; • Graduate or professional student; • Married; • Has children or dependents (in which the student provides over 50% of their support); • Veteran of the U.S. Armed forces or currently serving on active duty • At age 13 or older, both parents deceased, in foster care or a ward/dependent of the court; • Emancipated minor (determined by court in state of legal residence) • In legal guardianship (determined by a court in state of legal residence) • Homeless

  19. Why complete the FAFSA? * Federal Student Aid uses the data on your FAFSA to calculate an Expected Family Contribution (EFC). The EFC is an indicator of your family’s financial strength to pay for education after high school. * The EFC is not the amount of money that your family must provide. Rather, you should think of the EFC as an index that colleges use to determine how much financial aid (grants, loans, or work-study) * Your application results are transmitted to the school(s) listed on your FAFSA, and the school(s) uses the EFC amount to determine the amount of financial aid that you are eligible to receive. Many states and schools also use the FAFSA data to award aid from their programs.

  20. When do I need to file the FAFSA? • May be filed at any time during an academic year, but no earlier than the January 1st prior to the academic year for which the student requests aid • For the 2013-14 academic year, the FAFSA may be filed beginning January 1, 2013 • Needs to be completed on an annual basis • State Aid Filing Deadline is March 10th, 2013 • Colleges may set FAFSA filing deadlines that are different than the State Filing Deadline

  21. To complete the FAFSA What information is needed? • Social Security Number. Be sure that it is correct! • Records of income, such as income earned from work and business, child support paid or received and any other untaxed income. If available, refer to the W-2 Forms and the Federal Income Tax Return IRS 1040, 1040A or 1040EZ. • Information about assets, such as savings, certificates of deposit, stock options, bonds, 529 plans and other college savings programs; and investment real estate, business and farm. • Driver’s license number, if the student has one. • Alien Registration Number,if not a U.S. citizen.

  22. Personal Identification Number A PIN, along with other identifiers, gives Internet access to information on the Federal Student Aid systems. • Serves as an electronic signature and provides access to personal records • Go to www.pin.ed.gov Option 1: Create a four-digit PIN Option 2: Have the site create PIN • PIN is conditionaluntil relevant information is verified with the Social Security Administration (1-3 days) • PIN will not expire at the end of the year

  23. PIN Registration • Web site: www.pin.ed.gov • Sign FAFSA electronically • Can request PIN before January 1, 2013 • Not required, but speeds processing • May be used by students and parents throughout aid process, including subsequent school years

  24. FAFSA Tips Who is considered a parent? • Parents must provide information on FAFSA • Grandparents, foster parents, and legal guardians are not parents • If parents are both living and married to each other – both parents provide information • If parent is single – that parent provides information • If single parent has remarried, both parent and step-parent provide information (regardless of any prenuptial agreement)

  25. FAFSA Tips Who is considered a parent? • If parents are divorced or legally separated - identify parent in the following order: • Parent you have lived with more over the past 12 months. • Parent who provided more financial support over the past 12 months. • Parent who provided more financial support during the most recent year you received financial support.

  26. Redesigned FAFSA Homepage • Simplified options • Updated graphics • An updateable announcement section • Access to FAFSA4caster • Access to FAFSA PDF and paper FAFSA information • www.fafsa.gov

  27. Customized “My FAFSA” • Initial FAFSA Entry • Renewal Application Entry • FAFSA Corrections • Providing Signatures • Continuing a Saved FAFSA • Viewing Transaction Hist0ry

  28. “My FAFSA” page – New Student • Dynamic messaging guides the applicant through all phases of the application experience • Application Status • PIN Status

  29. Help and Hints now have question labels and question numbers for easier reference. Formatting on date fields, telephone number, and financial fields. The system automatically saves the application at the end of each step. “Clear All Data” allows an applicant delete their data from the system anytime prior to submission. Enhanced Functionality

  30. Financial Information • The IRS Data Retrieval continues in 2013-14 beginning February 3, 2013. • Also available in Corrections • Electronically filed tax return information will be available from the IRS in 1-2 weeks, data from paper tax returns will be available in 4-6 weeks.

  31. IRS Data Retrieval • Once the applicant has successfully authenticated, tax data will be presented and the applicant will have the option to “Transfer” the tax information to the FAFSA • Transferred data will have a notation - “Transferred from the IRS”

  32. Sign and Submit • “Print signature page” will appear if that option is selected.

  33. Signature Enhancements • A student and parent can enter their PIN and click “Sign” and the system will retain the signature. This allows parents and students to sign and submit separately.

  34. View FAFSA Summary • The View FAFSA Summary button takes the student to a summary of their data.

  35. FAFSA Summary Report

  36. Confirmation Page • Redesigned for clarity. Includes - • Confirmation Number • Data Release Number (DRN) • EFC estimate • Pell Grant and Direct Loan estimates • Option for parents to transfer info to an application for a sibling • Rates for each college on the FAFSA

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

  38. Frequent FAFSA Errors • Parent and student social security numbers • Missing signatures/PIN • Divorce/remarried parent information • Income earned by parents/stepparents • Untaxed Income • Household size & number in college • Real estate and investment net worth • Not using real name as it appears on SS Card

  39. Special Circumstances • Cannot report on FAFSA • Contact the Financial Aid Office at each school to explain your specific situation • College will review special circumstances • May have a specific form • May request additional documentation

  40. Special Circumstances • Change in employment status • Excessively high medical expenses not covered by insurance • Change in parental marital status • Expenses related to a students disability • Death of a parent • One time income exclusion • Unusually high dependant child care costs associated with a disability

  41. Ways to Finance College Types of Programs • Financial Aid Programs • 529 Savings & Prepaid Tuition Programs • Employer Tuition Benefits • Tuition Payment Plans • Savings Accounts • Savings Bonds Know your options…

  42. What Happens Next? • I submitted my FAFSA on time and now what …….

  43. Financial Aid Awards The financial aid administrator at the college will package all available aid and send an award offer for consideration. Goal: To meet a student’s need.

  44. Financial Aid Award Example EXAMPLE ONLY Cost of Education - Family Contribution = Need $26,000 $8,000 $18,000 College Scholarship $6,000 SSACI Tuition Grant $2,900 College Grant $3,300 Stafford Subsidized Loan $3,500 Stafford Unsubsidized Loan $2,000 Work Study $2,000 Total Aid $19,700

  45. The Financial Aid Process In Review

  46. Questions Or Comments……… Presented by: Kelly McGuire Director of Financial Aid Trine University

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