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FINANCIAL AID BASICS2019-2020

Presented by: Kelly McGuire, Executive Director

of Financial Aid - Trine University

ITEMS TO DISCUSS

• What is financial aid?

• Cost of Attendance

• How is financial need calculated?

• Sources of Financial Aid

• How to complete the FAFSA

• What happens next?

• Closing and Questions

What is Financial Aid?

Financial aid is funds provided to students and their families to assist them in paying for postsecondary education expenses.

What is Cost of Attendance (COA)?

Direct Costs Indirect Costs

Estimation of expected costs

Tuition and fees

Room and board

Books and supplies

Transportation

Miscellaneous

personal expenses

*Varies widely from college to college

Measurement of student’s and

family’s ability to pay postsecondary

educational expenses

Student contribution

Parent contribution

(for dependent students)

What is Expected Family Contribution (EFC)?

*Stays the same regardless of college choice

College A

COA $46,246

EFC - 12,250

Need = 33,996

COA - Variable

EFC - Constant

College B

COA $21,174

EFC - 12,250

Need = $8,924

Financial Need = COA-EFC

How is financial need determined?

Types of Financial Aid

• Grants

• Scholarships

• Loans

• Employment

SOURCES OF FINANCIAL AID

college(institutional aid)

outside/

private

sources

federal

government

state

government

COMMON FEDERAL AID PROGRAMS

Grants

• Federal Pell Grant

• Teacher Education

Assistance for College and

Higher Education (TEACH

Grant)

• Federal Supplemental

Educational Opportunity

Grant

Self - Help

• Federal Work-Study

• Direct Stafford Student

Loans

• Parent PLUS Loans

Maximum Award Amounts for 2018-19

THE BIG THREE

Up to $11,100

Up to $6,095

Up to $4,000

—State of Indiana Grant

Program (SFA)

— Federal Pell Grant

— Federal Supplemental

Education Opportunity

Grant (FSEOG)Total = $21,195

A need-based employment program that provides on- and off-campus jobs to students.

FEDERAL WORK-STUDY

A completed FAFSA is required

It is a campus-based financial aid program; funds are limited and available only at participating postsecondary institutions

Priority deadlines may apply

Compensation is at least the current federal minimum wage

A student must earn these funds

YOU MAY BE ELIGIBLE FOR AID, BUT...

• You must apply to find out!

• Everyone will be eligible for some type of financial aid.

• Every family should fill out a FAFSA even if they chose to decline some of the aid they receive

• Apply it is FREE!

Note: Communicate with each college to inquire about steps to complete an application and their deadlines.

To be considered for student aid, a student must complete all forms required by a

college.

HOW TO APPLY

Free Application for Federal Student Aid

(FAFSA)

Institutional Forms

Other

as required

FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA)

• A standard form that collects family’s demographic and financial information used to calculate the student’s EFC (available in English and Spanish)

• How to apply:

• FAFSA on the web at https://fafsa.gov

• It’s FREE … Free Application for Federal Student Aid

WHEN DO I NEED TO FILE THE FAFSA?

• For the 2019-20 academic year, the FAFSA may be

filed beginning October 1, 2018

• Needs to be completed on an annual basis

• State Aid Filing Deadline is April

15, 2019

• Colleges may set FAFSA filing deadlines that are

different than the State (Institutional Deadlines)

oSocial Security Number. Be sure that it is correct!

oRecords of income, such as income earned from work and business, child support paid or received and any other untaxed income. If available, refer to the W-2 Forms and the Federal Income Tax Return IRS 1040, 1040A or 1040EZ.

o Information about assets, such as savings, certificates of deposit, stock options, bonds, 529 plans and other college savings programs; and investment real estate, business and farm.

oDriver’s license number, if the student has one.

oAlien Registration Number, if not a U.S. citizen.

What information is needed?

COMPLETING THE FAFSA

FSA ID

FSA ID

• User ID and Password format

• Student and parent both need own FSA ID

• Each individual must use unique email address

• Tip: Use a personal email address; not your school email

• https://fsaid.ed.gov/

FSA ID

FSA ID

• Sign and Submit initial FAFSA

• Make corrections to processed FAFSA

• Review previously received federal aid

• Sign federal student loan documents

• Parents: apply for federal loan

• Apply for income based repayment

DEPENDENT VS. INDEPENDENT STUDENTS

• At least 24 years old

• Graduate or professional student;

• Married;

• Has children or dependents (in which the student provides over 50% of their support);

• Veteran of the U.S. Armed forces or currently serving on active duty

• At age 13 or older, both parents deceased, in foster care or a ward/dependent of the court;

• Emancipated minor (determined by court in state of legal residence)

• In legal guardianship (determined by a court in state of legal residence)

• Homeless

FAFSA TIPS

• Dependent students are required to report parent information.

• “parent” means legal (biological, adoptive or court appointed)

parent

• If married or unmarried & living together, both parents are listed on the FAFSA

Who is considered

a parent?

FAFSA TIPS

• If divorced or never married & not living together:

• Student Asks:

• Who did I live with more the last 12 months?

• Who provided more financial support the last 12 months?

• Answer determines which parent is listed.

• If that parent is remarried; must also provide stepparent information.

Who is considered

a parent?

FAFSA TIPS

Not a factor in determining a parent:

Who claims student on taxes

Who makes more money

Never considered a parent (unless they have legally adopted student)

Grandparents

Foster Parents

Legal Guardians

Aunts/Uncles

Older siblings

Widowed Stepparent

Who is considered a

parent?

IRS DATA RETRIEVAL TOOL

• 2017 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” but data will be masked

• Complete transfer for both student and parent

• **Do not update after completing 2018 return**

27

IRS DATA RETRIEVAL TOOL

Certain tax filers cannot use the

IRS Data Retrieval Tool

Did not indicate on FAFSA a tax return

was completed

Marriage date is

January 2017, or

later

First three digits of the

SSN are 666

Filed a non-U.S. tax return

Married and filed as

head of household,

or filed separate returns

Neither married parent

entered a valid SSN

Non-married

parent or both

married parents

entered all zeroes for the SSN

SIGNATURES

• Required

• Student

• One parent (dependent students)

• Format

• Electronic using FSA ID (recommended)

• Signature page

• Paper FAFSA

FREQUENT FAFSA ERRORS

• Parent and student social security numbers

• Missing signatures/FSA ID

• Divorce/remarried parent information

• Income earned by parents/stepparents

• Untaxed Income

• Household size & number in college

• Real estate and investment net worth

• Not using real name as it appears on SS Card

SPECIAL CIRCUMSTANCES

• Cannot be reported on FAFSA

• Contact the Financial Aid Office at each school to explain

your specific situation

• College will review special circumstances

• May have a specific form

• May request additional documentation

SPECIAL CIRCUMSTANCES

• Change in employment status

• Excessively high medical expenses not covered by insurance

• Change in parental marital status

• Expenses related to a students disability

• Death of a parent

• One time income exclusion

• Unusually high dependant child care costs associated with a

disability

WHAT HAPPENS NEXT?

• I submitted my FAFSA on time. Now

what?…….

FINANCIAL AID AWARD EXAMPLE

EXAMPLE ONLY

Cost of Attendance (COA) - Expected Family Contribution (EFC) = Need

$35,000 - $6,500 = $28,500

College Scholarship $16,000

State Grant $3,000

College Grant $4,000

Stafford Subsidized Loan $3,500

Stafford Unsubsidized Loan $2,000

Work Study $2,000

Total Aid $30,500

Source

of

Loan

Repayment

Options

&

Grace

Period

Interest

Rate

When evaluating loan options, consider the following:

LOAN PROGRAMS

Start by knowing your rights and responsibilities.

Subsidized

vs.

Unsubsidized

Federal Loan Programs, 2018-2019

U.S. DEPARTMENT OF EDUCATION

* *FAFSA and Program Application(s) are Required

Type GraceRate

Stafford* *(2018-2019)

Subsidized 5.05%

Fixed

6

Months

Unsubsidized 5.05%

Fixed

6

Months

PLUS/

Graduate PLUS

Credit-based 7.60%

Fixed

Within first

60 days

(can be deferred)

• Financial Aid Programs

• 529 Savings & Prepaid Tuition

Programs

• Employer Tuition Benefits

• Tuition Payment Plans

• Savings Accounts

• Savings Bonds

Types of Programs

WAYS TO FINANCE COLLEGE

Know your options…

THE FINANCIAL AID PROCESS IN

REVIEW

Complete

FAFSA

Receive and review the

Student Aid Report

Complete

verificationprocess (if

selected)

Receive and review

Award Letter

Respond

to college

Complete all

pending processes

RenewFAFSA after

Oct. 1st

every year

QUESTIONS OR COMMENTS……..

THANK YOU!!Contact info:

mcguirek@trine.edu

260-665-4130