what you need to know about financial aid. topics we will discuss what is financial aid? cost of...
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What You Need to What You Need to Know About Financial Know About Financial
AidAid
TOPICS WE WILL DISCUSS
What is financial aid?
Cost of attendance (COA)
Expected family contribution (EFC)
Financial need
Categories, types, and sources of financial aid
Free Application for Federal Student Aid (FAFSA)
Special circumstances
WHAT IS FINANCIAL AID?
Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses
COST OF ATTENDANCE(COA)?
Includes: Tuition & Fees Room & Board Books, supplies, transportation, and misc. personal expenses
COA Varies widely from college to college
WHAT IS EXPECTED FAMILY CONTRIBUTION (EFC)?
Amount family can reasonably be expected to contribute
Stays the same regardless of collegeTwo components
Parent contribution Student contribution
Calculated using data from a federal application form and a federal formula
WHAT IS FINANCIAL NEED?
Cost of Attendance
– Expected Family Contribution
= Financial Need
TYPES OF FINANCIAL AID
Scholarships
Grants
Loans
Employment
Gift Aid
Self-Help Aid
GIFT AID: SCHOLARSHIPS/GRANTS
Money that does not have to be paid back
Awarded on the basis of merit, skill, or unique characteristic
Usually awarded on the basis of financial need
SELF-HELP AID: LOANS
Money students and parents BORROWED to help pay college expenses
Repayment usually begins after education is finished
Only borrow what is really needed
Look at loans as an investment in the future
SELF-HELP AID: WORK-STUDY EMPLOYMENT
Allows student to earn money to help pay educational costs
A paycheck; or
Nonmonetary compensation, such as room and board
Student may opt the number of hours to work
SOURCES OF FINANCIAL AID
Federal governmentStatesColleges and universitiesPrivate sourcesCivic organizations and churchesEmployers
STATE OF KANSAS SCHOLARSHIPS AND GRANTS
Kansas Comprehensive Grant
Kansas State Scholarship
Kansas Ethnic Minority Scholarship
Career Technical Workforce Grant (formerly the Kansas Vocational Scholarship)
Kansas Career Work Study Program
Military Service Scholarship (FY 08)
KBOR Website: https://sfa.kansasregents.org/finaid/login.jsp
FEDERAL GOVERNMENT
Largest source of financial aid
Aid awarded primarily on the basis of financial need
Must apply each year using the FAFSA
FEDERAL STUDENT AID PROGRAMS
Federal Pell Grant Federal Supplemental Educational Opportunity Grant (FSEOG)
Federal Perkins Loan Federal Work-Study (FWS)
Subsidized and Unsubsidized Federal Direct Student Loans (Direct Loans)
PLUS Loans
FEDERAL PELL GRANT
Awarded amount based on EFC and enrollment status
Generally awarded to undergraduate students only
Maximum award for 2014-2015 = $5,730
FSEOG (FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT)
Annual award amounts vary between school from $100 to $4,000 a year
Students with the lowest EFC’s must be awarded first
Priority goes to Federal Pell Grant recipients
FEDERAL WORK STUDY (FWS)
Provides part-time employment while students are enrolled
Employment may be on or off campus
Even if you don’t qualify for FWS you may still be able to have an on campus job!
Inquire about jobs at your college’s Student Employment Office
FEDERAL PERKINS LOAN
Priority to students who show exceptional need
Interest rate: 5% fixed
Nine month grace period, repayment may be up to 10 years
Deferment and cancellation provisions available for qualifying employment
Maximum annual award $4,000 for undergraduate students $6,000 for graduate students
FEDERAL DIRECT LOANS
Subsidized must demonstrate need U.S. Department of Education will pay (subsidize)
the interest that accrues while in school
Unsubsidized not based on need most everyone can qualify
DIRECT LOANS – ANNUAL LOAN LIMITS
Annual Loan Limits (combined subsidized and unsubsidized)
Classification Dependent Independent Freshman $5,500 $9,500 Sophomore $6,500 $10,500 Each remaining year $7,500 $12,500 Graduate/Professional N/A $20,500
DIRECT LOANS
The current interest rate on 2014-15 Undergraduate Direct loans (subsidized and unsubsidized) first disbursed on or after July 1, 2014 is 4.66%. Each year the interest rate will change based on the market.
Repayment begins after 6 month grace period
Maximum repayment period between 10 and 30 years
PLUS LOANS Parents of dependent undergraduate students
Graduate/Professional students
Repayment begins immediately upon full disbursement but can be deferred upon request
2014-15 Direct interest rate: 7.21% (will change annually based on the market)
If a parent is unable to borrow (denied) a parent PLUS loan, a student may be eligible for additional unsubsidized loan
FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA)
A standard form that collects demographic and financial information about the student and family
May be filed electronically or using paper form Available in English and Spanish
FAFSA
Information used to calculate the expected family contribution (EFC)
Amount of money a student and his or her family may reasonably be expected to contribute towards the cost of the student’s education for an academic year
Colleges use EFC to award financial aid
FAFSA
FAFSA ON THE WEB
IRS DATA RETRIEVAL TOOL
While completing the FAFSA, applicant may submit real-time request to IRS for tax data
IRS will authenticate taxpayer’s identity If match found, IRS sends real-time results to applicant in new browser window
Applicant chooses whether or not to transfer data to FAFSA
IRS DATA RETRIEVAL TOOL
Available early February 2015 for 2015–16 processing cycle
Participation is voluntary
Reduces documents requested by financial aid office
IRS DATA RETRIEVAL TOOL
Some will be unable to use IRS Data Retrieval Tool. Examples include:
Filed an amended tax return
No SSN was entered
Student or parent married but filed separately
FEDERAL STUDENT AID PERSONAL IDENTIFICATION NUMBER (FSA PIN)Website: www.pin.ed.gov
Sign FAFSA electronically
May be used by students and parents throughout aid process, including subsequent school years
FAFSA PIN CHANGES
FSA is adopting the best practice of using a username and password instead of personal information
The FSA ID Requires users to enter less info (2 fields instead of 4)
Provides more secure access to user’s information
Links to PIN information during registration Offers self – service capability (name change)
The FSA ID (username and password) will replace PIN for students, parents and borrowers accessing FSA systems starting on 4/25/15.4/25/15.
FAFSA PIN CHANGES
What happens for new user? Registration requests same required information as PIN New users will be directed to the registration page to
create an FSA ID (username and password) similar to today’s PIN creation page
What happens if I have a PIN already? During account creation, user will be asked for their PIN. As long as the PIN information matches their other
information, the account will be linked to the FSA ID account
Will the changes affect a user’s ability to access previous FAFSA submissions?
If the user links their PIN, they will have access to previous FAFSA submissions
Login:
(Student’s Info)
First NameLast NameSSNDate of Birth
34
FREQUENT FAFSA ERRORS
Social Security NumbersDivorced/remarried parental information Income earned by parents/stepparentsUntaxed incomeU.S. income taxes paid Household sizeNumber of household members in college
Real estate and investment net worth
WHAT HAPPENS NEXT…
The Department of Education will notify the student that the FAFSA has been received.
24-48 hours after the FAFSA is complete, the schools listed should receive the information.
The school will notify the student once their award packet is available. Most schools do not start processing until March/April for the next school year.
MAKING CORRECTIONS
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
SPECIAL CIRCUMSTANCES RELATED TO PROFESSIONAL JUDGMENT
Cannot be documented using FAFSA
Send written explanation and documentation to financial aid office at each college
College will review and request additional information if necessary
Decisions are final and cannot be appealed to U.S. Department of Education
SPECIAL CIRCUMSTANCES
Change in employment status
Unusual medical expenses not covered by insurance
Change in parent marital status
Unusual dependent care expenses
Student cannot obtain parental information
CAUTION!!!
Avoid being charged a fee to file the FREE Application for Federal Student Aid
Completion and processing of the FAFSA are FREE
www.fafsa.gov
WHERE DO I GO FROM HERE?
Obtain and review admissions and financial aid Web sites and materials for each school to which you are applying.
Meet all application deadlines. Complete FAFSA and other application materials. Submit all requested follow-up documents.
Investigate other sources of aid.
QUESTIONS?
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