2014 – 2015 FAFSAReview

Agenda

•Make FAFSA work for your CU•FAFSA Goals•Financial Aid Timeline•Terms you should know•Getting Started•2014-2015 FAFSA Review•Top FAQ’s•Wrap up / Q and A

Before we get started……

• The Challenge of financial literacy– Building a model that provides financial literacy now…– ….while creating revenue today and into the future.

• Why financial literacy is important– People know what they want – Their problem is how they go about getting it

• There is a right way and a wrong way to buy anything (College included)

Make FAFSA work for your CU

Before we get started……

• Financial literacy education is a wasted investment without:– Email Collection– Follow-up marketing

• Why?– Because the future is now

Before we get started……

• How?– Start with parents– Extend authorized engagement to the kids– Convert minors into members at 18 through

necessary products

• The Conversation begins over the first financial hurdle: – Filing the FAFSA and Paying for College

FAFSA Goals

•Why FAFSA?

•Financial Aid Awareness

•Family team effort

•Timely completion

•Achieve best school offers

Financial Aid Timeline

Jan – Feb 15 Get the FAFSA filed, submit all admissions requests

March - April Admissions response, financial aid award letters

May Deposits due, verification if selected

June, July, August

Billing Statements, Payment Plans, Student Loans

Jan next year Back to the Future, new FAFSA is due

Terms you should know

•COA: Cost of Attendance

•EFC: Expected Family Contribution

•Financial Need: COA minus EFC

•Merit Based Funding: Scholarships

•Need Based Funding: Grants

Getting Started: What documents do I need?

• Social Security number. • Driver’s license (if any) • 2013 W-2 forms and other records of money earned • Student (and spouse if married) 2013 Federal Income Tax Return.

– IRS 1040, 1040A, 1040 EZ – Foreign Tax Return, or – Tax Return for Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, the

Marshall Islands, the Federal States of Micronesia, or Palau • Parents’ 2013 Federal Income Tax Return (For dependent students) • 2013 untaxed income records • Current bank statement information • Current business and investment mortgage information, business and farm records,

stock, bond and other investment records • Alien registration or permanent resident card (if you are not a U.S. citizen)

Make it easy: File Electronically!

Use IRS Data Retrieval Tool with E-Filed Taxes

Getting Started: What else do I need?

•Separate PIN for parent and student

•www.PIN.ed.gov

•For FAFSA E-Signature

•FAFSA Time: 20 – 60 minutes

•May be saved and completed later

Selective Service: www.sss.gov

•All Males must register

Go to: https://fafsa.ed.gov/

Getting Started

•Student Info•Demographics•Triple check your data!

Getting Started

•2014-2015 available now•2013-2014 prior year•2015-2016 for next fall

•File for Correct Year!

Demographics

•Accuracy counts•Unique emails

Student Eligibility

•Citizenship•Selective Service•Student type

School Selection

•Search options•List up to 10 schools

School Selection: Housing

•Will affect your COA•On Campus•With parent•Off campus

School Comparison

•What is Net Price?•Graduation Rate•Retention Rate

Dependency Status

•Two Student Types•Dependant•Independent

•What’s the difference?•Why does this matter?

Parent Section

•Demographics

•The fundamentals

Parent section

•Biggest problem……..•Wrong data!

•ACCURACY COUNTS!

Parent Section

•Update for 2014 – 2015

•Unwed parents cohabitating

•After DOMA

•Household size

Parent Tax Info

•How do you file your taxes?

•When is it completed?

Parent Section

•Parent income

•Income estimator

•“Dislocated worker”•Appeal eligibility

•Total income and exemptions

Parent section

•Additional financial information•Education credits•Child support•Parent’s Taxable work-study•Parent’s grants or scholarships•Combat pay•Cooperative education program

Parent Section

•Untaxed income•Tax deferred pension payment•Child support received•Other sources

Parent Section

•Asset values•Cash•Investments•Real Estate•Business•Farm

•Reduction strategies take strong planning•Is it worth it?•“As of today…”

Student Section

•Students don’t always file taxes•May be much simpler than parent section

Student Section

•Additional financial information•Education credits•Child support•Taxable earnings•Student grants or scholarships?•Combat pay•Cooperative education program

Student Section

•Untaxed income•Tax deferred pension payment•Child support received•Other sources

Student Section

•Student assets•“As of today…”•Student assets weighed more heavily than

parents

Signature Section

•Student and Parent PIN

Confirmation and DRN

•Keep for your record•Proof of FAFSA•Confirm w/school that FAFSA is available•Don’t file a second time until first FAFSA is

accounted for

Verification

•Mandated process•Review of family financial information•Like a mini-audit•Checks for inaccuracies and omissions•FAFSA data adjusted to reflect actual data on financial

statements•Respond ASAP: Coordinate with the financial aid office

Top FAQ’s

How to Increase a Scholarship• Student writes an appeal• Highlights additional qualities and achievements• Email to admissions and financial. Confirm received• Know what you are worth! Compare offers• Higher probability of success with private schools

Top FAQ’s • How to Increase Grants– Must prove an increase

in financial need– An appeal must document

unemployment, or other limited circumstances

– Must meet financial aid methodology standards

– Be prepared to submit written statements, termination letters, final pay stubs, unemployment documentation etc.

College Radar: Know your next move

Before FAFSA completion

• Coordinate with family• Complete overview • Organize financial info• Know your deadline • Complete CSS profile (if

needed)

During FAFSA completion

• Set a date to complete• Teamwork / Cooperation• List all your schools• Remember: E-sign with PIN• Will the FAFSA be

appealed?

•After FAFSA is complete….•Compare financial aid offers

•Consider school choices

•Make informed decisions

•Finalize your commitment

•Get ready for College!

Have questions? Ask Ken!

•Read Ken’s advice at: custudentloans.org/college-resource-center•Learn more about how LendKey can help your Credit

Union

•Email: Ken@lendkey.com

•Follow Ken for more on:/cuStudentLoans/cuStudentLoans/cuStudentLoans

Thanks!