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How All The Money Fits FAFSA Basics

How All The Money Fits FAFSA Basics. Sharon L Harper Director of Scholarship Programs. To Be Covered. Financial Aid Acronyms Packaging Timing Scholarship/Tax Basics Changes to Federal Aid How to read a SAR. FAFSA?!?.

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How All The Money Fits FAFSA Basics

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  1. How All The Money FitsFAFSA Basics Sharon L Harper Director of Scholarship Programs

  2. To Be Covered • Financial Aid • Acronyms • Packaging • Timing • Scholarship/Tax Basics • Changes to Federal Aid • How to read a SAR

  3. FAFSA?!? • Primary goal is to assist students in paying for college and is achieved by: • Evaluating family’s ability to pay educational costs • Distributing limited resources in an equitable manner • Student first, then family, THEN tax payer dollars

  4. What is Financial Aid • Any financial resource available to assist student paying for higher education • Grants • Scholarships • Work-Study • Loans • Family Resources

  5. Acronyms

  6. Decoder

  7. Sample Budgets Resident at State University • Tuition & Fees $ 7,932 • Books & Supplies $ 1,749 • Personal/Misc. $ 2,565 • Room & Board $10,378 TOTAL $22,624 Non-Resident • Tuition & Fees $ 28,187 • Books & Supplies $ 1,749 • Personal/Misc. $ 3,437 • Room & Board $ 10,378 TOTAL $ 43,751

  8. Definition of Need Cost of attendance (COA) – Expected family contribution (EFC) = Need

  9. Need Varies Based on Cost

  10. Packaging Example A COA $ 22,624.00 EFC $ 0.00 Need $ 22,624.00 Financial Aid: Pell $ 5,730.00 State Grant $ 2,500.00 UnivGrant $ 2,500.00     Work Study $ 3,000.00 Sub Stafford $ 3,500.00 UnSub Staff $ 2,000.00 PLUS Loan $ 3,394.00

  11. Packaging Example A EFC $ 0.00 Need $ 22,624.00 Private Schlp $5,000.00 Financial Aid: Pell $ 5,730.00 State Grant $ 2,500.00 UnivGrant $ 2,500.00     Work Study $ 3,000.00 Sub Stafford $ 3,500.00 UnSub Staff $ 2,000.00 $ 394.00 PLUS Loan $ 3,394.00

  12. Packaging Example A Financial Aid: Pell $ 5,730.00 State Grant $ 2,500.00 $ 1,894.00 UnivGrant $ 2,500.00     Work Study $ 3,000.00 Sub Stafford $ 3,500.00 UnSub Staff $ 2,000.00 PLUS Loan $ 3,394.00 EFC $ 0.00 Need $ 22,624.00 Private Schlp $15,000.00

  13. Packaging Example A Financial Aid: Pell $ 5,730.00 State Grant $ 2,500.00 UnivGrant $ 2,500.00     Work Study $ 3,000.00 Sub Stafford $ 3,500.00 UnSub Staff $ 2,000.00 PLUS Loan $ 3,394.00 EFC $ 0.00 Need $ 22,624.00 Private Schlp $ 20,000.00

  14. Packaging Example B Financial Aid: Pell $ 1,880.00 FSEOG Grant $ 2,500.00 UnivGrant $ 12,609.00     Work Study $ 3,000.00 Sub Stafford $ 3,500.00 UnSub Staff $ 2,000.00 PLUS Loan $ 10,390.00 COA $ 35,879.00 EFC $ 3,824.00 Need $ 32,055.00 53% range $16,989

  15. Packaging Example B Financial Aid: Pell $ 1,880.00 FSEOG Grant $ 2,500.00 UnivGrant $ 12,609.00     Work Study $ 3,000.00 Sub Stafford $ 3,500.00 UnSub Staff $ 2,000.00 PLUS Loan $ 10,390.00 $ 5,390.00 COA $ 35,879.00 EFC $ 3,824.00 Need $ 32,055.00 53% range $16,989 Private Schlp $5,000

  16. Packaging Example B Financial Aid: Pell $ 1,880.00 FSEOG Grant $ 2,500.00 UnivGrant $ 12,609.00     Work Study $ 3,000.00 Sub Stafford $ 3,500.00 UnSub Staff $ 2,000.00 $ 3,890.00 PLUS Loan $ 10,390.00 COA $ 35,879.00 EFC $ 3,824.00 Need $ 32,055.00 53% range $16,989 Private Schlp $15,000

  17. Packaging Example B Financial Aid: Pell $ 1,880.00 FSEOG Grant $ 2,500.00 UnivGrant $ 12,609.00 $ 7,675.00 Work Study $ 3,000.00 Sub Stafford $ 3,500.00 UnSub Staff $ 2,000.00 $ 3,824.00 PLUS Loan $ 10,390.00 COA $ 35,879.00 EFC $ 3,824.00 Need $ 32,055.00 53% range $16,989 Private Schlp $20,000

  18. Timing • 10 days prior to first day of class • Institutions pay billed amount first • Using aid on system • Census date • Most Institutional Aid has paid in • Mid-Semester • Usually no bill remaining – unless aid insufficient to cover bill • Annually • Check school policy for division of awards without specific donor direction

  19. Scholarships and Taxes • Are Scholarships Taxable? • Must meet all 3 tests • Qualified scholarship • Recipient is candidate for a degree • Purpose is for conducting study or research at an educational organization

  20. Test 1 • Qualified Scholarship • Payment is for • Tuition and fees required OR • Fees, books, supplies, or equipment required • Must be required for either • Enrollment OR • A course of instructions

  21. Test 2 • Candidate for a degree • Individuals who are actually enrolled in a degree-seeking program • Enrolled students not actually seeking a degree provided that: • Institution offers degrees • Is properly accredited

  22. Test 3 • Education Organization • Institution must: • Have a faculty • Have a curriculum • Have a regularly enrolled body of students

  23. Back to our Examples Resident at State University • Tuition & Fees $ 7,932 • Books & Supplies $ 1,749 • Personal/Misc. $ 2,565 • Room & Board $10,378 TOTAL $22,624 $5,000 Scholarship Yes? No?

  24. Back to our Examples Resident at State University • Tuition & Fees $ 7,932 • Books & Supplies $ 1,749 • Personal/Misc. $ 2,565 • Room & Board $10,378 TOTAL $22,624 $15,000 Scholarship Yes? No?

  25. Back to our Examples $5,000 Scholarship Yes? No? Non-Resident • Tuition & Fees $ 28,187 • Books & Supplies $ 1,749 • Personal/Misc. $ 3,437 • Room & Board $ 10,378 TOTAL $ 43,751

  26. Back to our Examples $15,000 Scholarship Yes? No? Non-Resident • Tuition & Fees $ 28,187 • Books & Supplies $ 1,749 • Personal/Misc. $ 3,437 • Room & Board $ 10,378 TOTAL $ 43,751

  27. SAP • Satisfactory Academic Progress • Basic requirements are • 2.0 GPA • Completing at least 65% of credits enrolled while receiving Federal Title IV funds • Working towards a degree program – not exceeding 150% of hours to complete degree • Not applicable to Private Scholarships • Schools generally monitor and notify donors • Donors decision whether to fund or not • Donors can have more rigid scholarship eligibility requirements

  28. R2T4 • Return of Title 4 funds • If student withdraws completely from semester in which aid has been received for • Calculation based on percentage of aid “earned” before withdrawal • Not required for private donors– schools generally will contact donor for direction • If donor is unsure – I recommend following R2T4 calc.

  29. Pertinent Updates to FAFSA • Tax Transcript in lieu of copy of taxes • Pell and Stafford loans limited by dollar amount and/or number of years received • Stafford loans interest rate for 2014-15 4.66%

  30. Changes to Federal Aid • SULA • Subsidized Usage Limit Applies • Affordable Care Act/Student Employment

  31. Reading a SAR

  32. Contact Information • Sharon Harper • Director of Scholarship Programs • The Denver Foundation • sharper@denverfoundation.org • 303-996-7348

  33. THANK YOU!!!!!

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