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Financial Aid 101

Financial Aid 101. Presented by: Financial Aid Staff William and Mary. Topics. Define Need Components Types of Aid Available Application Process Effect of outside aid Change in Circumstances. Cost of Attendance (COA) - Expected Family Contribution (EFC) Financial Need. TRAVEL.

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Financial Aid 101

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  1. Financial Aid 101 Presented by: Financial Aid Staff William and Mary

  2. Topics • Define Need Components • Types of Aid Available • Application Process • Effect of outside aid • Change in Circumstances

  3. Cost of Attendance (COA) - Expected Family Contribution (EFC) Financial Need

  4. TRAVEL OTHER ROOM/BOARD PERSONAL TUITION/FEES BOOKS Each school’s COA will be Different Cost of Attendance

  5. What is the Expected Family Contribution (EFC) • Amount family can reasonably be expected to contribute • Two components • Parent contribution • Student contribution • Calculated using FAFSA data • Stays the same regardless of college

  6. Financial Aid What is Financial Aid? Family’s Contribution Cost of Attendance

  7. Where Does it Come From? • Federal Government • State Government • College/University • Private

  8. Types of Financial Aid • Scholarship • Grants • Employment • Loans

  9. Scholarships • Money that does not have to be paid back • Based on merit, skill, or a unique characteristic • May have a ‘need’ component

  10. Scholarships Sources • Civic Organizations • Churches • Employers • Schools Free on-line web searches • www.finaid.org • www.collegeboard.com/student/index.html?student

  11. Grants • Money that does not have to be paid back • Typically based on financial need

  12. Grants • Common Grants: • Federal Pell Grant • Academic Competitiveness Grant (ACG) • National Science and Mathematics Access to Retain Talent Grant (SMART) • Federal Supplemental Educational Opportunity Grant (FSEOG) • Teacher Education Assistance for College and Higher Education (TEACH) Grant • Not all schools participate • Not all programs at a school qualify

  13. Grants • Virginia Tuition Assistance Grant (TAG) • Virginia Guaranteed Assistance Program (VGAP) • Commonwealth Award

  14. Employment • Allows student to earn money to help pay costs • On and Off-campus jobs • Paid by: • Pay check • Credit to account • Non-monetary compensation, such as room and board

  15. Loans • Money that is borrowed to pay expenses • Borrower • Student OR • Parent • Repayment begins • Student – after graduation • Parent – begins 60 days after disbursement or can request deferment while the student is in school interest does begin to accrue • Reasonable repayment options

  16. Loans Most common programs: • Federal Perkins Loan • Federal Stafford Loan • Subsidized – no interest accruing while in school • Unsubsidized – interest does accrue but no payment due • Federal PLUS • One parent is the borrower

  17. Application Free Application for Federal Student Aid (FAFSA) • Collects demographic information • Collects financial information • File electronically • Available in English and Spanish • Used to calculate the EFC

  18. Application • Check if other applications necessary • Check college deadlines • Request a PIN (personal identification number) • Student • Parent

  19. PIN • Web site: www.pin.ed.gov • Allows to sign FAFSA electronically • May request now • Can also be used to sign a Master Promissory Note for a loan

  20. FAFSA • Web site: www.fafsa.ed.gov • 2009-10 FAFSA available January 1, 2009 • Use the FAFSA on the Web Worksheet

  21. Before You Begin

  22. FAFSA on the Web Worksheet

  23. General Student Criteria • U.S. citizen or eligible non-citizen • Registered with Selective Service (if male and required) • Valid Social Security Number (SSN) • Eligibility not terminated due to drug-related conviction • Enrolled or accepted in an eligible degree/certificate program

  24. Dependency • For purposes of this presentation, assume student is dependent • Assumption may be wrong if: • Both of student’s parents are deceased • At age 13 or older student was placed in foster care • Are a ward of the court • Have a legal guardian

  25. Who is the “Parent”? • The parent(s) information is completed by the student’s biological parent or, in some cases, adoptive parent • Grandparents, legal guardians, etc should not complete as parent

  26. Which Parent? In cases of divorce or separation: • Who did the student live with the most in the past 12 months? • If neither or both, who provided the most financial support? Ex. Who paid for health insurance and/or car insurance?

  27. Household Size • Student • Parent(s) • Dependents • Others who live with you and you are providing more than half their support and will continue to provide it from July 1 – June 30

  28. Dislocated Worker Considered a Dislocated Worker if: • Lost job • Laid off or received a lay-off notice from job • Self-employed but are unemployed due to economic conditions or natural disaster NOT a Dislocated Worker if you quit your job even if you receive unemployment benefits

  29. Dislocated Worker /Displaced Homemaker Considered a Displaced Homemaker if: • Previously provided unpaid services to the family • No longer supported by the husband or wife • Unemployed or underemployed and is having trouble finding or upgrading employment Meet the criteria? Answer “YES” to the Dislocated Worker question

  30. Tax Information Have your parents completed a 2008 IRS income tax return or other income tax return? • Already completed • Will file • Will not file

  31. Tax Information What income tax return did your parents file or will file for 2008? • IRS 1040 • IRS 1040A, 1040EZ • A foreign tax return • A tax return with Puerto Rico, another U.S. territory or a freely associated state Eligible to file a 1040A?

  32. Assets • Report ‘net’ values – current value minus debt • Investments • Trust Funds • Real Estate • CDs, Stock, Money Market accounts • Coverdell savings account • 529 College Plans

  33. Assets – Business or Farm Value includes: • Land • Buildings • Equipment • Inventory Debt includes: • Debt for which the business/farm was used as collateral

  34. Assets – Business or Farm Do not include: • Value of family farm that you live on and operate • Value of small business that you own and control AND has fewer than 100 full-time or full-time equivalent employees

  35. Additional Financial InformationFAFSA questions 46 a-e and 94 a-e • Educational Credits • Child support paid • Taxable portion of scholarships and grants • Combat pay or special combat pay if included in your adjusted gross income

  36. Untaxed Income FAFSA questions 47a-j and 95a-j • Tax deferred payments to pension and savings plans • IRA deductions, SEP, SIMPLE and Keogh • Child support received • Untaxed portions of pensions • Housing, food, and other living allowances

  37. Can only list 10 schools at a time • Both parents and student must sign • You will receive a confirmation page

  38. 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 the form carefully!

  39. Frequent FAFSA Errors • Social Security Number(s) wrong • Both sexes answer Selective Service question • Parent Marital Status • Taxes Paid • Usually is not the amount on the W2 • Not updating information after taxes are filed

  40. Role of the Financial Aid Office • Requests additional information, if needed • Determines aid eligibility • Packages aid depending on fund availability • Sends award notification (electronic or paper) including: • Award amount for each eligible program • Disbursement methods and time frames • Terms and conditions of each award

  41. Outside aid vs. Award package • Notify School of all Private Scholarships • Could Change Need-Based Aid

  42. Change in Circumstances • Loss of Income or Benefit • Death of a Parent • Divorced or Separated after FAFSA filed • Unusually high medical expenses

  43. What now? • Review Admissions and Financial Aid Web sites and materials for each school applied to • Know and Meet all Deadlines • Complete FAFSA and other application materials • Submit all required follow-up documents • Investigate other sources of aid

  44. Summary • Start early • Know what forms you need and the deadlines • Make copies of everything • Follow-up – normal processing time is 4-6 weeks • If you don’t know – ASK.

  45. Good Luck! Thank you for participating in VASFAA’s Super Saturday! Presentation prepared by Donna Taylor, Virginia Tech Presentation available http://www.wm.edu/admission/financialaid/index.php

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