Financing your Education - Traversing the Financial Aid Maze

1. Financing your Education - Traversing the Financial Aid Maze

2. Free Application for Federal Student Aid (FAFSA) • Web site: www.fafsa.gov • Family’s personal and financial information is required to perform need analysis and is collected on the FAFSA • The FAFSA allows you to apply for both federal and state aid • Must be completed EACH year! • School deadlines may vary - check with the school you are interested in attending • Paper applications available call 1-800-4FEDAID

3. Student Financial Aid Personal Identification Number (SFA PIN) • Web site: www.pin.ed.gov • Sign FAFSA electronically • Can request PIN before January 1, 2011 • Can select own personalized pin • Not required, but speeds processing • Can be issued in real time so FAFSA can be signed immediately. It can not, however, be used for MPN immediately as it must go thru Social Security checks. The wait time will be approximatly 3 days. • May be used by students and parents throughout aid process, including subsequent school years for FAFSA, MPN, NSLDS, etc.

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

5. Three student options for applying: Online PDF FAFSA Paper FAFSA FAFSA Filing Options

6. Year specific Federal deadline for initial FAFSA submission and FAFSA corrections State specific deadline Standard message for college deadline Deadline Results

7. …One Log-in for all Functionality • Name re-ordered to first name and full last name.

8. Reconfirmation of Identifiers

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

10. Introduction Page

12. A High School question will be presented to students who indicate a high school diploma and Never attended college / 1st yr. or Attended college before / 1st yr. Student Eligibility Question

13. High School Question • Student enters the name, city and state of the high school they attended • Student selects Confirm to retrieve the results

16. If the student’s parent is single, divorced, or widowed, the student will only see questions for the one parent. • The Virtual Keyboard icon is present for the parent’s Social Security Number and Date of Birth.

17. The parent financial information is collected on two Parent Financial Information pages. • The questions display dynamically based on how the user answers each question. • For example: If the parent indicates they filed a 1040A or 1040EZ we do not display the question asking whether they are eligible to file a 1040A or 1040EZ • Please note to use your 2010 tax information

18. Financial Information • The IRS Data Retrieval continues in 2011-2012 beginning January 30, 2011. • 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 6-8 weeks. • You will be asked the same questions for the student financial section.

19. 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”

20. Asset Net Worth Threshold Parents of dependent students and independent students will be presented with the asset net worth threshold question, if they are not eligible for auto-zero or simplified needs test; and if the student’s state of legal residence allows the applicant to skip the asset question. You will answer the same questions under the student financial section

21. Asset Net Worth Threshold • If answer is “yes”, the three asset questions will display. • If answer is “no”, the asset questions will not display, as we do not need to count the asset value in the calculation of the EFC.

22. School Selection Step • Student may enter up to 10 colleges by entering Federal School Code or Searching on State, City or School Name

23. New – Re-ordering Schools • The student may move the position order of schools by placing the cursor in the row of the school they want moved. • Then by using the up and down arrows can change the position of the school.

24. Detailed School Information

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

26. FAFSA Summary Report

27. Student Signature with PIN

28. Parent Signature with PIN

29. 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 • Option to transfer info to a state application if state participates in API • Rates for each college on the FAFSA

30. State API Expansion • Will allow students to transfer information from the FAFSA to a state application • Option offered on confirmation page only

31. 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

32. www.FAFSA4Caster.ed.gov Features and Benefits • Students instantly receive their EFC • Students receive customized aid award estimates (lists federal student aid programs and estimated award amount a student may be eligible for) • Can be calculated for 12 different school scenarios • Automatically generates FAFSA PIN to electronically sign the FAFSA • Pre-fills many of the questions on the FAFSA • Sends reminder notices to student in early January to complete the FAFSA

33. NY State Grantwww.hesc.com

34. Applying for TAPDeadline for filing the FAFSA is June 30, 2011

35. Timeline • File the FAFSA by the deadline required for your school • SAR is rec’d by student/ISIR rec’d by school (read over the info you receive!) • Info sent to state agency • School sends award letters (March-May) • State agency sends award letter in May

36. How awards are made... • Schools try to meet your “need” w/ various types of FA • Aid cannot exceed the budget • You must report all aid to the FA Office; if you get an outside award it may affect your other aid, but not usually dollar for dollar

37. What is the Expected Family Contribution (EFC) • Definition - Index used to determine your eligibility for federal student aid • 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

38. Definition of Need Cost of Attendance (COA) - Expected Family Contribution (EFC) -------------------------------------------------- = Financial Need

39. Verification • Is a process whereby the school verifies the information on your FAFSA • May be chosen randomly or because of a discrepancy in the info you provided • HESC vs. Institutional - NY State Grant Form Website – www.hesc.org

40. What is Financial Aid? Funds provided to students and families to help pay for postsecondary education. Examples: • Grants • Loans • Employment Opportunities • Scholarships

41. Grants Federal -Pell -SEOG -TEACH State (not PA) Institutional Private Federal site-www.studentaid.ed.gov Scholarships Federal -Byrd State www.hesc.com Math and Science Teaching Scholarship NYS Scholarships for Academic Excellence Institutional Private - lots of free scholarship search services. Gift Aid

42. Loans Federal Perkins Loans Federal Direct Stafford Loans - Subsidized - Unsubsidized Federal Direct PLUS - (parent loan) www.studentloans.gov Alternative Loans Employment Work Study -Federal -State -Institutional Self-Help Aid

43. Satisfactory Academic Progress • In order to receive aid you must be making progress towards the completion of your degree -usually 24 credits per year must be completed -must maintain a 2.0 GPA

44. Tax credits • Lifetime Learning Credit - no minimum enrollment necessary. No limit to number of years you can claim it; up to $2000. • New American Opportunity Credit – for first 4 years of college (must be degree seeking and at least ½ time) – 40% of this credit can be refundable, credit max is $2500 – supplies and equipment do not need to be purchased from the school. (Only for undergraduate students) • See publication 970 for more info. • www.irs.gov

45. Avoid Being Scammed • To check legitimacy of scholarship searches or individual, for information about financial aid scams, and tips to avoid being scammed visit Web sites: • U.S. Department of Education: http://studentaid.ed.gov/PORTALSWebApp/students/english/publications.jsp • Federal Trade Commission: http://www.ftc.gov/bcp/index.shtml • Better Business Bureau: www.bbb.com

46. Tips • Be aware of the financial aid deadlines and don’t miss them! • Look at “out of pocket cost” not just the awards you are offered • Understand the different types of aid • Remember free aid is ALWAYS better than loans!

47. Tips cont. • Talk about credit, credit cards and smart borrowing • CSS Profile • ROTC, AmeriCorps, Nat’l Guard are other ways to help pay for college • Borrow only what you need! • Plan for the future! • Be aware of Private Education Loans. Read all information first! Not all loans are the same.