The Financial The Financial Aid Aid Application Application ProcessProcess

Delaware Hayes High SchoolDecember 13, 2012

Your best source for FREE financial aid

information and assistance

Assist students with the application process.

Determine eligibility for financial aid.

Provide a balance of free aid, employment

and student loans.

Notify students of their awards.

Develop a working relationship with students

and their families.

If you’re totally lost about If you’re totally lost about financial aid, contact us for financial aid, contact us for help!help!

The Financial Aid ProcessThe Financial Aid ProcessFirst Things First:Apply for admission

Leave No Stone Unturned:Research and apply for private scholarships

You Can’t Win If you Don’t Play:File the FAFSA and the CSS Financial Aid/PROFILE

Anticipate Great Things:Receive Merit Scholarship Letters

Weigh Your Options: Review your comprehensive Financial Aid Award Notices

Make Your Decision:Submit your Enrollment Deposit to finalize your awards

Finish the Race Early:Complete any required financial aid forms over the summer

Most colleges use the Free Application for Federal

Student Aid (FAFSA) as an application for mostfinancial aid programs.

The FASFA can be completed after January 1st

each year.

To receive full consideration for all institutionaland federal financial aid programs at most

colleges,the FAFSA should be submitted in February andMarch each year.

Many colleges also require an institutional aidapplication or the CSS/Financial Aid PROFILE.

Applying For Other Aid Applying For Other Aid ResourcesResources

FAFSA on the WebFAFSA on the Webfafsa.ed.gov Built-in edits to prevent costly

errors

Skip logic allows student and/or parent to skip unnecessary questions

Option to use Internal Revenue Service (IRS) data retrieval

More timely submission of original application and any necessary corrections

More detailed instructions and “help” for common questions

Ability to check application status on-line

Simplified application process in the future

CSS/Financial Aid PROFILEprofileonline.collegeboard.com

Colleges use the PROFILE todetermine eligibility forinstitutional aid.

The PROFILE asks forinformation not requested

on the FAFSA.

There is a cost for completing

the PROFILE.

The PROFILE can be completed

starting October 1st each year.

Why Complete the FAFSA?Why Complete the FAFSA?(You Can’t Win If You Don’t Play)

Many colleges require it for any non-merit aidconsideration and some require it for all financial

aid.

You will need to complete it for any federal student loans

and the federal PLUS.

It may help if you have more than one student in college.

It may help if you’re divorced.

Think of it as a free “insurance policy”.

Frequent FAFSA ErrorsFrequent FAFSA Errors

Social Security Numbers

Divorced/remarried parental information

Income earned by stepparents

Untaxed income

U.S. income taxes paid

Household size

Number of household members in college

Real estate and investment net worth

Tips for Completing the Tips for Completing the FAFSAFAFSAApply Early: Estimate your 2012 income (use your 2011 taxes or 2012

W2’s).

Complete All Items: Indicate (0) zero for items that do not pertain to you.

Divorced Parents: Use parent with whom the student lived most in during the

previous year. If remarried, household income includes the step parent.• Claimed on taxes, does not matter• Do not include ex-spouses income

Untaxed Income: For Pre-taxed 401K and IRA withholdings, report only theamount saved in 2012.

Investment Income: Report current value minus debt only.

Sign the FAFSA Electronically: Use your federal PIN.

Register for a PIN Register for a PIN pin.ed.gov

Sign FAFSA electronically

Sign student loan promissory

notes electronically

Have your PIN automatically

created or chose your own.

Each student has a PIN and

one parent has a PIN.

FAFSA on the Web FAFSA on the Web WorksheetWorksheet

Useful guide to help prepare and then complete the FAFSA

Available to download at www.fafsa.ed.gov

Federal Methodology is the formula created by Congress to determine the Expected Family Contribution (EFC). This measurement of the family’s financial strength is comprised from many components including number of family members in household and college, age of oldest parent, and income and assets. Colleges use the EFC and other factors to determine need for aid. Determination of Need:

Cost of Attendance (COA)

– Expected Family Contribution (EFC)

= Financial Need

How Eligibility for Financial How Eligibility for Financial Aid is DeterminedAid is Determined

Special CircumstancesSpecial Circumstances

Please note that consumer related expenses do not apply

Many times students and parents can appeal to have their EFC

decreased, COA increased, or for additional institutional aid if

they have valid, documented circumstances.

- Job loss or reduction in pay

- Excessive medical expenses paid

- One time rollover or capital gain

- Private elementary or high school costs paid

- Loss of income sources- Many others…

TTYPES OF FINANCIAL AIDYPES OF FINANCIAL AID

Financial aid is offered in the form of

scholarships, grants, loans, and student

employment programs.

Scholarships & Grants are free dollars.

Student Loans have to be paid back either

during or after enrollment ends.

Student Employment programs allow students

to earn wages during college.

Rewarding academic and talent-based achievement with non-need-based scholarship programs.

Academic-based

Talent-based (i.e. music, theater, art)

Departmental Awards

Athletic

- Usually requires students to be admitted

- Merit scholarships vary per college

- Scholarships are usually renewable each year

- A competition may be required

Merit-based ScholarshipsMerit-based Scholarships

GGRANT PROGRAMSRANT PROGRAMS

Institutional Grants- Usually based on need but may be offered to lower

need students.- Priority FAFSA date is usually required.

State Financial Aid- Usually based on need and may require the FAFSA.

Federal Grants- Pell Grant- Supplemental Educational

Opportunity Grant (SEOG)

Private Grants

SSTUDENT EMPLOYMENTTUDENT EMPLOYMENT

Federal Work-Study (FWS) provides part-time jobs for students demonstrating financial need. This program allows students to earn money to help pay education expenses. The program encourages community service work and work related to students’ discipline. The FAFSA is required for this program.

Institutional Student Employment is usually available for students who do not qualify for the federal work study program. This program is usually earned and used in the same way as federal program.

Colleges must use portion of FWS funds for community service activities.

Students generally use money earned to help pay for their personal expenses.

FFEDERAL STUDENT LOANSEDERAL STUDENT LOANS

Federal student loans are low-interest aid programs for students and parents. The FAFSA is required for these loans.

Perkins Loans are need-based loans made through the financial aid office. Amounts generally range between $1,000 - $5,000.

Subsidized Stafford Loans are need-based loans where the interest is paid while students are attending and during their grace period. The annual amount for first-time freshmen is $3,500.

Unsubsidized Stafford Loans are non-need-based loans and the interest is not paid for students. The annual amount for first-time freshmen is $2,000.

PLUS loans are borrowed by parents of dependent undergraduate students. Complete the application MPN after June 1, 2013.

Private Grants and Scholarships Private Grants and Scholarships are offered by various

organizations, businesses and foundations:- Students must apply separately for each

program- Students compete locally, regionally and

nationally- Apply, Apply, Apply!

Private student loans Private student loans from commercial lenders:- Variable application process and procedures- Various criteria and requirements- Various terms and conditions- Usually requires a co-signer (e.g. parent)

Private ResourcesPrivate Resources

Other Ways to Pay for College

Consider Tuition Payment Plans

Invest in 529 College Saving Plans

Utilize investment income and home equity

Select your college dorm and meal plan carefully

Budget your money and reduce your expenses

Work and save your earning during the summer

Buy used text books and books on line

Ask family members for assistance

Net Price CalculatorNet Price Calculator

All Title IV institutions enrolling full-time, first-time degree or certificate seeking undergraduate students are required to have an NPC posted on their website.

Using both student-entered and institution-provided data, the NPC allows prospective students to calculate their estimated net price at an institution based on the following basic formula: Price of attendance minus financial aid

Schools may use ED’s NPC template, create their own template, or purchase a template from a third party.

Net Price CalculatorNet Price Calculator

Benefits:Designed to provide accurate and timely information about the net price of a college.

Can assist families in comparing colleges based on net price and financial aid.

Drawbacks:Inclusion of direct and indirect costs in “price of attendance” component can significantly inflate the price tag.

Institution’s flexibility to customize template could make college costs comparisons an extremely complex process.

College Goal SundayCollege Goal Sunday

Sunday, February 10, 20132:00 pm

Receive assistance with completing the2013-2014 FAFSA form from financial aidprofessionals.

Various locations throughout Ohio

Register on line:

www.oasfaa.org

www.ohiocollegegoalsunday.org

QuestionsQuestions??

Lee HarrellAssistant Vice President ofAdmission and Financial AidOhio Wesleyan University740-368-3052jlharrell@owu.edu