1 / 62

Applying for Financial Aid 2006-2007

Applying for Financial Aid 2006-2007. Presented by the Minnesota State University, Mankato Student Financial Services. What Will You Learn Today?. Sources and types of financial aid Required financial aid application forms

justin-jenkins
Download Presentation

Applying for Financial Aid 2006-2007

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Applying for Financial Aid 2006-2007 Presented by the Minnesota State University, Mankato Student Financial Services

  2. What Will You Learn Today? • Sources and types of financial aid • Required financial aid application forms • How to complete the Free Application for Federal Student Aid (FAFSA) • Answers to your individual questions

  3. Application Process • Submit the Free Application for Federal Student Aid (FAFSA) prior to your school’s deadline • To ensure maximum consideration for federal, state, and institutional aid, check information from each school to determine: • Required application materials • Application deadlines

  4. Sources of Financial Aid • Federal government • State government • Colleges and universities • Private agencies, companies, foundations, and your parents’ employers

  5. EXPECTED FAMILY CONTRIBUTION FOR DEPENDENT STUDENT • Parent Income • Student Income • Untaxed Income • Exclusions • Assets • Family Size • Number Attending College

  6. Types of Aid • Gift Aid -Grants or scholarships that do not need to be repaid • Work - Money earned by the student as payment for a job on or off campus • Loans - Borrowed money to be paid back, usually with interest

  7. Need-Based Grants • Minnesota State Grant • Maximum varies according to cost of school • May qualify with higher EFC than Pell Grant • Federal Grants • Pell Grants • $4,050 maximum per year • Supplemental Educational Opportunity Grant (SEOG) • $4,000 maximum per year

  8. Types of Financial Aid • Self Help Aid Loans & Employment • Work-Study • Stafford Loans • Direct Loan • Perkins Loans • PLUS Loans • SELF Loans • Alternative Loans

  9. Cost of Borrowing Federal Stafford Loans • Variable Interest Rate capped at 8.25% • Interest Rate for 7/1/2005-6/30/2006 is 4.70% (Unsubsidized Stafford, in-school rate)

  10. FAFSA Information & Tips • File as soon as possible after January 1, 2006 • May use estimated 2005 income information if taxes are not complete at time of FAFSA submission • Student and at least one parent whose information is reported must complete and sign the FAFSA

  11. Federal PIN • PIN (Personal Identification Number) serves as the electronic signature on ED documents • Both student and at least one parent need PIN • May be used to: • Check on FAFSA status • Verify and correct FAFSA data • Add additional schools to receive FAFSA data • Change home and e-mail addresses • If an e-mail address is provided, PIN will be e-mailed to the PIN applicant within hours • Apply for student and parent PINs TODAY at: www.pin.ed.gov

  12. Getting Ready • Before starting the FAFSA, gather: • Student driver’s license • Student Alien Registration Card • Student and Parent • Social Security cards • 2005 W-2 Forms and other records of money earned • 2005 federal income tax form (even if not completed) • Records of untaxed income • Current bank statements • Business, farm and other real estate records • Records of stocks, bonds and other investments Create a file for copies of all financial aid documents submitted

  13. 1 5 E L M S T Getting Started • Read all application instructions • If planning to submit the paper FAFSA: • Use pen with black ink • Print clearly in CAPITAL letters: • Fill in ovals completely: • Do not leave blanks (unless directed by instructions) • Do not write comments or notes anywhere on form • Do not use correction fluid

  14. The FAFSAA Seven-Step Process Step One-- is about the student Step Two-- asks for student income and assets Step Three-- determines student dependency status Step Four-- requires parental information for dependent students Step Five-- is for independent students only Step Six-- allows the student to list up to six schools Step Seven-- Certification Statement asks for signatures and submission date of the FAFSA

  15. #9 Date of Birth 0 2 0 9 8 7 – Be careful not to write the current year for student’s date of birth #1-3 Name L JONES SUSAN #8 Social Security Number • –List the student’s name and Social Security number exactly as they appear on the Social Security card (both will be compared through a database match process) 123 6 78 9 4 5 PAGE 3 – Step One

  16. #13 E-mail Address YAHOO.COM SJONES • Fill in the student e-mail address that will be valid at least until the student starts college PAGE 3 – Step One

  17. #14 Citizenship Status • If U.S. citizen, status will be confirmed by Social Security match • If eligible non-citizen, status will be confirmed by Department of Homeland Security (DHS) match. This includes: • U.S. permanent residents with I-551 • Conditional permanent residents with I-551C • Eligible non-citizens with I-94 • If neither A nor B, student is ineligible for federal/state aid, but might still be eligible for state or institutional funds PAGE 3 – Step One

  18. #15 Alien Registration Number 0 1 2 3 4 5 6 7 8 If eligible non-citizen, write in the student’s eight- or nine-digit Alien Registration Number (ARN) • Precede an eight digit ARN with a zero • Copy of Permanent Registration Card might be requested by the financial aid office PAGE 3 – Step One

  19. #18-20 Student’s State of Legal Residence CA • Residency relates to the student’s permanent home state • if the student is dependent, the state of legal residence is usually the state in which the custodial parents live • State of legal residence is also used • in the need calculation to determine the appropriate allowance for state and other taxes paid by that state's residents • to determine eligibility for state grants PAGE 3 – Step One

  20. Answer “yes” only if the student is male, aged 18-25, and has not yet registered. The student may also register by going to: • www.sss.gov #22 #21-22 Selective Service Registration • Male students who are 18 years of age or older must be registered with Selective Service to receive federal and state aid PAGE 3 – Step One

  21. #24 Grade Level 0 • Indicate the student’s grade level beginning with the 2006-2007 school year #23 Degree Objective 1 • Indicate the student’s most immediate degree or certificate objective for 2006-2007 PAGE 3 – Step One

  22. #26 First Bachelor’s Degree? #25 High School Diploma or GED? • Requirement to receive Federal and State Aid • Home schooling may fulfill requirement • If high school senior, the answer is ‘NO’ PAGE 3 – Step One

  23. #27-28 Student Loans and Work-Study • If the student is interested in either student loans or student employment, mark “yes” to each question • Answering “yes” does not obligate the student either to borrow or to work, nor will it cause the student to lose grants and scholarships • Answering “no” may restrict some options for limited loans and work-study funds PAGE 3 – Step One

  24. #27-28 Student Loans and Work-Study • If the student is interested in either student loans or student employment, mark “yes” to each question • Answering “yes” does not obligate the student either to borrow or to work, nor will it cause the student to lose grants and scholarships • Answering “no” may restrict some options for limited loans and work-study funds PAGE 3 – Step One

  25. #29-30 Parents’ Educational Level • Indicate highest level of schooling completed by biological or adoptive parents (for state award purposes only) • Use birth parents or adoptive parents - not stepparents or foster parents • This definition of parents is unique to these two questions PAGE 3 – Step One

  26. #31 Drug Conviction Question DO NOT SKIP THIS QUESTION The student should: • Answer “NO” if: • Conviction was for alcohol or tobacco • Conviction was removed from record or occurred before age 18 (unless tried as an adult) • Answer “YES” if the student has been convicted of possessing or selling illegal drugs PAGE 3 – Step One

  27. Step Two:Student Income and Asset Information #32-45 Questions are identical to those we will cover in the parents’ income and asset section of Step Four. In Step Two: • Report the student’s 2005 income and current assets • If student is single, ignore references to “spouse” • If student is married, report spouse’s income and assets • Complete Worksheets A, B, and C for the student on Page 8 PAGE 4 – Step Two

  28. #46-47 Student Veterans’ Education Benefits 00 0 • If student is eligible for veterans’ education benefits, report monthly amount expected. (If not applicable, answer zero) • Number of months should equal number of months attending school. (If not applicable, answer zero) For more information, contact the VA at: (800) 827-1000 or www.va.gov PAGE 4 – Step Two

  29. Step Three: #48-54 Determination of Dependency Status • If the student answered “no” to all questions in this step, go to Step Four. For FAFSA filing purposes, the student is considered a dependent student and is required to provide parental information • If the student answered “yes” to any question in this step, skip Step Four and go to Step Five. For FAFSA filing purposes, the student is considered an independent student PAGE 4 – Step Three

  30. Step Four:Parent Information • See Page 7 of FAFSA instructions about who is considered a parent • Biological or adoptive parent(s) • Stepparent • Regardless of any prenuptial agreements PAGE 5 – Step Four

  31. Step Four:Parent Information (cont.) • Do not provide information on: • Foster parent(s) • Student is automatically considered an independent student • Legal guardian(s) or grandparent or other relative • Must attempt to get biological parental information if guardianship ends at age 18 • Colleges may use Professional Judgment to allow the student to file as an independent student PAGE 5 – Step Four

  32. #56 Month and year parents were married, • separated, divorced, or widowed M M Y Y Y Y #55 Parents’ Marital Status as of Today PAGE 5 – Step Four

  33. #57-64 Father’s and Mother’s SSN, Last Name, First Initial, and Dates of Birth P 23 4 7 89 0 JONES 5 6 59 0 5 0 3 M 00 0 PARKE R 0 00 0 60 0 7 1 9 0 0 NOTE: This information should be provided for theparents who are required to give information for Step Four PAGE 5 – Step Four

  34. #65 Parent Household Information 0 5 • Include in parents’ household: • the student applying for financial aid • the custodial parent(s) • parents’ other dependent children, if parents provide more than half their support or the children could answer “no” to every question in Step Three, regardless of where they live • other people, if they now live with the parents, and if the parents provide more than half their support, and will continue to provide that level of support from 7/1/06 through 6/30/07 PAGE 5 – Step Four

  35. #66 Family Members Attending College 2 • Always include the student even if he/she will attend college less than half-time in 2006-2007 • Include other household members from #65 only if they will attend at least half time in 2006-2007 in a program that leads to a college degree or certificate • Always exclude parents NOTE: Some financial aid offices will require proof that other family members are attending college PAGE 5 – Step Four

  36. Y Y Y Y M M #67-69 Parents’ State of Legal Residence CA • Question #67: Indicate the two-digit state code for parents’ permanent address • If the answer to #68 is “no,” in Question #69, enter the month and year residency began for the parent who has been a legal resident of that state the longest PAGE 5 – Step Four

  37. , $ 0 , $ 2 (no cents) 1 3 5 6 Step Four:Parent Income and Asset Information • If the answer to any question is zero or the question does not apply, enter 0: • Report whole dollar figures: • Recommendation: If parents have not filed their 2005 federal tax return, use W-2 forms and/or other employment records to estimate total income PAGE 5 – Step Four

  38. #70-72 Parent Tax Return Filing Status for 2005 • Indicate parents’ current tax filing status for 2005 • Which tax return did or will parent(s) file for 2005? • Even if parent(s) did not file a 1040A or 1040EZ, read the instructions to see if they would have been eligible to do so #70 #71 #72 PAGE 5 – Step Four

  39. #73-75 Parent Income and Tax Information 452 5 0 2130 • If parents have not yet filed their 2005 federal tax return information, it is okay to estimate information for these questions • If parents have completed their 2005 federal tax return, use 2005 tax return information to fill out Questions #73-75. Pay attention to specific line-items Reminder: If the answer is zero or the question does not apply, enter 0 05 PAGE 5 – Step Four

  40. #76-77 Money Earned from Work by Parent(s) 40500 1 3200 • This figure is often different than the adjusted gross income figure on the parent tax return. Use W-2 forms and other records to list all income in 2005 earned from work (including income earned from self-employment) PAGE 5 – Step Four

  41. #78 Worksheet A: Untaxed Income & Benefits 1250 1250 • To answer, carefully complete the right column of Worksheet A (Page 8 of instructions) • NOTE: Students should keep a copy of the worksheet because the financial aid office may request a copy PAGE 5 – Step Four

  42. #79 Worksheet B: Untaxed Income & Benefits 1700 6200 500 8400 PAGE 5 – Step Four

  43. Totals from Worksheets A, B, and C should be entered in Questions 78, 79, and 80 on Page 5 of the FAFSA 1250 8400 0 #80 Worksheet C: Exclusions to Income 0 PAGE 5 – Step Four

  44. , $ 0 , $ 9 9 9 9 9 9 Step Four:Parent Asset Information #81-83 • List the net value of parent assets as of the day the FAFSA is completed • If net worth is one million dollars or more, enter • If net worth is zero, enter 0 (do not leave blank) NOTE: Some financial aid offices may request supporting documentation for the answers to these questions PAGE 5 – Step Four

  45. #81 Parent Asset Information (cont.) 2155 • Report the current balance of cash, checking and/or savings accounts as of the day you complete the FAFSA PAGE 5 – Step Four

  46. #81-83 Parent Asset Information (cont.) 5000 7900 • Net Worth means current value minus debt • Investmentsinclude: • real estate (other than parents’ home) • trust funds • money market and mutual funds • certificates of deposit • stocks and stock options • bonds and other securities • Coverdell IRAs • college savings plans including 529(c) plans for parents and all children including the student applicant • installment and land sale contracts • commodities, etc. 0 PAGE 5 – Step Four

  47. #81-83 Parent Asset Information (cont.) 5000 7900 • Business/Investment Farm includes: • market value of land, buildings, machinery, equipment, and inventory. Debt means only those debts for which the business was used as collateral 0 NOTE:DO NOTinclude the home you live in, the value of life insurance and parent retirement plans (pension funds, annuities, non- education IRAs, Keogh plans, etc), or the value of any prepaid tuition plans PAGE 5 – Step Four

  48. Step Five: (Independent Students)Household Information #84 • Complete this step only if the student answered “yes” to any question in Step Three (Questions 48-54) • Include in the student household: • the student (and spouse if there is one) • student’s children, if the student will provide more than half their support • other people, if they now live with the student and the student provides more than half their support, and will continue to provide that level of support from 7/1/06 through 6/30/07 Dependent Students SKIP THIS STEP PAGE 6 – Step Five

  49. Step Five: (Independent Students)Family Members Attending College #85 • Count the student even if he/she will attend college less that half-time in 2006-2007 • Include others counted in #84 only if they will attend at least half-time in 2006-2007 in a program that leads to a college degree or certificate Dependent Students SKIP THIS STEP PAGE 6 – Step Five

  50. Step Six: #86-97 School Information INDEPENDENT UNIVERSITY 001117 PA COMMUNITY COLLEGE ABC MA 01 2345 STATE UNIVERSITY LA 023456 UNIVERSITY IN ARIZONA AZ 034567 PAGE 6 – Step Six

More Related