Filing the FAFSA

1. Filing the FAFSA Free Application for Federal Student Aid

2. What is a FAFSA? Free Application for Federal Student Aid Required for most Financial Aid: You must complete a FAFSA every school year during college.

3. What does the FAFSA do? The FAFSA is the primary tool used by lending agencies and schools to determine your family’s EFC – or Estimated Family Contribution

4. The Value of Four Years • Average Annual Income • High School Diploma $32,188 • Associate Degree $37,388 • Bachelor’s Degree $52,832 • Difference between High School and Bachelor’s: $20,644 • It Pays To Go To College!!

5. What could you do each year with $20,644? • Buy a new car? • Save for a rainy day? • Buy a home? • Take a vacation?

6. What could you do with an extra million dollars over the course of your lifetime?

7. Why College?

8. Who Should File FAFSA? All eligible students should file the FAFSA. It is a requirement for most forms of aid – including federal loans that are offered at very low interest rates, and most scholarships that you might be eligible for.

9. Eligibility: - U. S. Citizen or Resident Alien - Valid Social Security Number - Registered w/ Selective Service (Males) - High School Diploma or GED - Enrolled/Accepted into Eligible School - No Drug Convictions (once receiving aid) - Not in default with other federal loans

10. When and How Often Do I File FAFSA? * You must file the FAFSA each year you are in college, beginning in the Spring of your senior year of high school. * It should be filed as early after January 1st as possible, preferably as soon as federal taxes are filed (yours and your parents). * It can be filed based on estimated earnings, but it is then necessary to go back in and correct the information once taxes are filed. * Submitting on-line is the best way – quicker, easier to access information, easier to make changes! * Beware of school priority deadlines!

11. FAFSA DEADLINES:2011-2012 School Year (7/1/2011- 6/30/2012): June 30, 2012 Midnight Central Daylight time Missouri Priority Deadline:April 1, 2011 Mizzou Priority Deadline:March 1stof year prior to attendanceMany schools have their own priority deadlines!Pay close attention to deadlines! Know school definition of application deadline - receipt date and time or process date and time.

12. Expected Family ContributionFAFSA determines EFCThe Expected Family Contribution (EFC) is a number schools use to evaluate your eligibility to receive federal, state and institutional financial aid. Determines financial need : gap between cost of attendance and your EFC

13. How the EFC is calculated: • Based on a formula established by the federal government • Takes into account factors such as family income, assets, household size and the number of family members attending college

14. How the EFC is used: • Determines eligibility for federal financial aid, such as Pell Grants, federal loans and federal Work Study programs • Used by institutions and the state to determine a student's eligibility for other aid programs

15. The EFC is not: * The amount of money your family will have to pay for college * The amount of student aid you will receive

16. Special Process for Laid Off Workers: adjusted EFC number. • Dislocated Workers and the Pell: • A simplified needs analysis will be completed • Uses current income versus last year’s taxes • This formula applies to: • Dislocated workers • Dependent students with a dislocated worker parent • Independent students who are displaced workers • Students whose spouse is a dislocated worker

17. “My parents don’t really want to be involved? • Do I have to file as a dependent?” • With very few exceptions, parent information is MANDATORY: • You cannot do it without them! • Some very limited circumstances under which a child may be able to file without their parent’s tax information: • * Parents are incarcerated. • * Child left home to avoid abusive family situation • * Child does not know where parents are and is unable to contact them (and is not adopted). • * Child is married. • * Child is in the U. S. Military. • * Child was born before 1987. • We will use a worksheet later on to verify this status.

18. How the process works: • Submit the FAFSA • 2-3 weeks for on-line submission • Receive SAR (Student Aid Report) • Summarizes info on FAFSA and gives you your Expected Family Contribution that we discussed earlier • School receives ISIR 10 to 14 days after submission • Only sent to schools student listed on FAFSA • Summarizes info on FAFSA • School uses information to determine financial need

19. How the process works: • School sends Award Letter to Student • Financial Aid Award Package goes to student • Student can decide what to accept • Student/Parent determines how to address unmet need

20. Award Letter: Your Financial Aid Package • Financial Aid: What Is It? How Do I Get It? • Financial Aid come in various forms, and is designed to close the gap and help your child go to college!

21. Sample Award Offer Cost of Attendance: $20,138 Expected Family Contribution: $6,828 Award: Federal Pell Grant: $1,000 Federal Loan: Subsidized $3,500 Federal Loan: UnSubsidized $2,000 State Scholarship Grant $1,500 Institutional Grant $7,500 Federal Work Study $2,000 Total Award $17,500 Cost of Attendance $20,138 Unmet Need $2,638

22. What is Unmet Need? • Gap between financial aid and cost of attendance • Savings Account • Retirement Account • 401K Plans • Home Equity Loans • Credit Cards • Private Loans • PLUS – often listed on award letter. Available to parents. Based on credit. Must apply. Payments begin 60 days after disbursement • Banks and Credit Unions – but consider the fees, interest, consequences

23. Types of Financial Aid * Grants and Scholarships (Gifted Money) * Loans (Borrowed Money) * Work

24. What do I do first?1) First time users must apply for a PIN before filling out the FAFSA. It will be necessary for both you and your parent to have a PIN2) Fill out the FAFSA Worksheet3) Go to the application website at www.fafsa.ed.gov to familiarize yourself with the process.

25. Getting a PIN Go to http://www.pin.ed.gov/PINWebApp/pinindex.jsp In the box on the right hand side titled Apply for A PIN – click on APPLY NOW. Enter your personal information. You will need your social security number. Submit your application. Receive your PIN number.

26. A little more on PINs: Keep in secure place – just like a bank ATM Pin! Keep for future years – you will use the same PIN over and over. If you misplace it – you can request that it be sent to you again.

27. Documents Needed You were provided with a list of needed documents. You will need records of income earned in the year prior to when you will start school, so for the 2011-2012 school year, you need information from 2010. Keep these records! You will not mail your records to Federal Student Aid.

28. Dependency Status Worksheet Expect that you will fall under “dependent” status!

29. Questions?

30. FAFSA on the Web Worksheet: If you wish, this will guide you in filling out the actual application on-line. You will need to be able to provide additional specifics when filling out the FAFSA, so have information at hand.

31. Get Started! • * You can save it and go back later. • Once you submit, you can make corrections! www.fafsa.ed.gov