Financial Aid 200809 Presented by Indiana Student Financial Aid Association ISFAA and State Student

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Financial Aid 2008-09Presented by Indiana
Student Financial Aid Association (ISFAA)
andState Student Assistance Commission of
Indiana (SSACI)

• Parts of this presentation come from the National
  Association of Student Financial Aid
  Administrators (NASFAA)

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What You Need to Know About Financial Aid
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Topics We Will Discuss Tonight

• What is financial aid
• Cost of attendance (COA)
• The expected family contribution (EFC)
• What is financial need
• Categories, types, and sources of financial aid
• Verification/Special Circumstances
• Financial Aid Packaging
• Free Application for Federal Student Aid (FAFSA)

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What is Cost of Attendance (COA)

• Direct costs
• Indirect costs
• Direct and indirect costs combined into cost of
  attendance
• Vary widely from college to college

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Financial Aid and the Expected Family Contribution

• Financial Aid is resources that are provided to
  students and families to help pay for
• postsecondary educational expenses.
• The Free Application for Federal Student Aid
  (FAFSA) is the document that
• collects the familys financial information.
• Federal Methodology is the formula created by
  Congress that uses FAFSA
• data to provide colleges with an Expected
  Family Contribution amount.
• The Expected Family Contribution equals the
  amount of money a student and
• his or her family may reasonably be expected to
  contribute towards the cost of
• the students education for the academic year.
  EFC is made up of two components
• - Parent Contribution
• - Student Contribution
• The Expected Family Contribution amount is used
  to formulate the students
• financial aid package.

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Financial Need

• Cost of Attendance
• Expected Family Contribution (FAFSA)
• Financial Need

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Eligibility Requirements

• Be enrolled or accepted for enrollment in an
  eligible program of study, pursuing a degree,
  certificate or other recognized credential
• Be a U.S. citizen or eligible non-citizen
  (exception is ACG and SMART Grant student must be
  a citizen)
• Be registered with Selective Service if male
  and required,males may register on-line at
  www.sss.gov
• Not have had eligibility suspended or terminated
  due to a drug-related conviction while receiving
  college financial aid
• Have a valid social security number
• Not be in default of a student loan or owe
  repayment of a federal college grant
• For students who have been attending college,
  must meet Satisfactory Academic Progress as
  defined by college (Qualitatively-GPA
  Quantitatively-credit hours taken and completed).
  Student should be familiar with the schools
  policy

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Verification

• The effectiveness of the federal student
  financial aid programs depends on the accuracy of
  data students report on the FAFSA. Therefore
  schools must verify data provided if the student
  is selected by Central Processing System (CPS) or
  if the school selects the student for
  verification and must resolve conflicting
  information
• The following information must be verified
• Number in household
• Number enrolled in college (dependent student
  cant include parents who may be enrolled in
  college-parent should file own FAFSA )
• Adjusted Gross Income (AGI)
• US income tax paid
• Certain untaxed income and benefits
• Verification Documents Include
• Signed copies of student and parent federal tax
  return
• A Verification Worksheet provided by the college
  to the student to complete and return
• Any other financial or child support
  documentation requested by the college

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What is Professional Judgment?

• The authority provided by the federal government
  under the Higher Education Act for aid
  administrators to exercise discretion
  (Professional Judgment) in specific areas of
  student aid administration on a case by case
  basis
• Student should contact the financial aid
  administrator at the college they plan to attend
• Each institution may not come to the same
  conclusion as it is at the institutions
  discretion

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Financial Aid Packaging Philosophies
Colleges develop packaging philosophies based on
resource constraints and regulations while
following the basic principle of Cost of
Attendance (COA) Minus (-) Expected Family
Contribution (EFC) Equals () Financial Need
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Packaging Objectives

• Finding the best combination of aid to meet a
  students financial need given limited resources
  and constraints
• Distribute resources fairly and equitably
• Set realistic self-help expectations
• Offer relevant work experience

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Considerations in Financial Aid Packaging

• Cost of Attendance
• Family financial strength (FAFSA and EFC)
• Length of academic year/term
• Students year in school
• Aid Programs requirements
• Type and amount of aid funds and fund
  availability
• Academic qualifications
• The students student loan debt level

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No Matter How Good The Financial Aid Package..

• If a full-ride package is presented to a
  student for a college which is not a good
  personal fit or does not offer the academic
  programs in which the student is interested, the
  economics at play may lead the student to
  accept that package and enroll at the college
  anyway
• An unhappy student is not likely to complete the
  term and that is time and money that can not be
  recovered

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The First Award Letter May Not Be the Students
Final One!

• Students may be applying to several colleges they
  are interested. An EFC has been calculated and
  the school sends the student a preliminary award
  letter so that housing contract deadlines are
  met, and time given to the student/parents to
  decide on whether additional financing
  alternatives should be sought (i.e. student
  loans).
• Examples of what may cause a revision to be made
  from the initial award letter
• An outside award was made known to the
  Financial Aid Office or ANY
  awards provided not originally in the aid package
  (could even be the school who
  awards a scholarship). Therefore, the earlier
• additional aid is reported to the aid office
  the better!
• Student chosen for DOE Verification process.
  Once student submits
  supporting documentation to the aid office, FAFSA
  information may be revised
  resulting in adjustments to aid package
• Student/Parents changed FAFSA data on
  their own
• College housing changes (on/off campus, live
  at home)
• Student changed enrollment status, student
  changed
• major, or satisfactory academic progress was
  not met

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Categories of Financial Aid

• Need-based
• Non need-based

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Types of Financial Aid

• Scholarships
• Grants
• Loans
• Employment

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Scholarships

• Money that does not have to be paid back
• Awarded on the basis of merit, skill, or a
  unique characteristic

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Grants

• Money that does not have to be paid back
• Usually awarded on the basis of financial need

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Loans

• Money students and parents borrow to help pay
  educational expenses
• Repayment usually begins after education is
  finished
• Only borrow what is really needed
• Look at loans as an investment in the future

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Employment

• Allows student to earn money to help pay
  educational costs
• A paycheck
• Non-monetary compensation, such as room and board

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Sources of Financial Aid

• Federal government
• States
• Private sources
• Civic organizations and churches
• Employers

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Federal Government

• Largest source of financial aid
• Aid awarded primarily on the basis of financial
  need
• Must apply every year using the FAFSA

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Common Federal Aid Programs

• Federal Pell Grant
• Academic Competitiveness Grant (ACG) and National
  Science and Mathematics Access to Retain Talent
  Grant (SMART)
• Federal Supplemental Educational Opportunity
  Grant

• Federal Perkins Loan
• Federal Work-Study
• Stafford Loans
• PLUS Loans

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Private Sources

• Foundations, businesses, charitable organizations
• Deadlines and application procedures vary widely
• Begin researching private aid sources early

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State Student Assistance Commission of
Indiana (SSACI)317.232.23501-888-528-4719www.
ssaci.in.gov
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SSACI Programshttp//www.in.gov/ssaci/programs

• Frank OBannon Grant
• -Higher Education Award (HEA)
• -Freedom of Choice Grant (FOC)
• -Academic Honors and Core 40 Diploma
  Enhancements
• Supplemental Grants to the Frank OBannon Grant
• -Twenty-first Century Scholars Scholarship
• -National Guard Supplemental Grant
• Part Time Grant
• Child of Veteran Public Safety Officer
  Supplemental Grant
• Special Programs
• -Hoosier Scholar Award
• -Robert C. Byrd Honors Scholarship Program
• -Minority Teacher and Special Education Services
  Scholarship
• -Nursing Scholarship Program
• -State Work-Study Program

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IMPORTANT FACTS

• SSACI Deadlines SSACI has two deadlines!
• March 10th - Date FAFSA must be received by the
  federal processor
• June 10th - Date FAFSA discrepancies (edits)
  must be resolved
• with the federal processor
  to remain in the applicant
• pool
• SSACI Residency Requirements Must physically
  reside in Indiana (for 2008-2009 academic year
  award period, date is as of 12/31/2007) and
  continue to remain in the state up to and
  including the award period (2008-2009 academic
  year). Please make sure you complete the FAFSA
  questions regarding residency.
• SSACI will calculate the students state grant
  eligibility for the FIRST eligible Indiana
  college the student placed on the FAFSA. Students
  who will not attend the first choice originally
  listed when the student filed the FAFSA must
• change college choice on eStudent to reflect
  their first college choice to ensure an accurate
  state grant award letter and
• IF the college was NOT listed on the FAFSA
  student must contact federal processor and add
  college to list
• SSACI state grant eligibility is determined on
  the basis of both merit and need. The information
  from the FAFSA, the approved college tuition and
  regularly assessed fees up to a CAP, and high
  school diploma type are factors in determining
  eligibility.

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June 10, 2008SSACI Edit Correction Receipt Date
Deadline to Federal Processor

• In April edit notification is sent to students
  indicating which FAFSA edits apply to them, how
  to fix them, and receipt date deadline (June 10,
  2008) when all discrepancies must be resolved
  with the federal processor to remain in the state
  grant applicant pool
• It is the students responsibility to
  periodically review the SSACI website section
  called eStudent. Edits may appear at any time
  including after the April edit notifications are
  sent
• www.ssaci.in.gov/estudent/

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SSACI eStudent Register/Log-In
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• Free Application For Federal Student Aid
• 2008-2009 FAFSA

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Free Application for Federal Student Aid (FAFSA)

• FASFA is a standard form that collects
  demographic and financial information about the
  student and family that is used to calculate the
  Expected Family Contribution.
• FAFSA must be received by the federal processor
  on or before the college deadline or State
  Student Assistance Commission of Indiana (SSACI)
  March 10, 2008 whichever is first.
• To ensure maximum consideration for federal,
  state, and college aid, check with each college
  to determine if there are additional application
  requirements (e.g. College Scholarship Service
  Profile Form, or institutional aid applications
  as well as additional deadlines that need to be
  met)

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Ways To File the FAFSA

• FAFSA may be filed
• Electronically (on the web) or
• NEW for 2008-2009! Students can access PDF,
  complete the form on the computer or by hand and
  mail to the address provided for processing or
• Students can still obtain a Paper FAFSA by
  calling the Federal Student Aid Information
  Center toll free at 1-800-4-FED-AID
  (1-800-433-3243). Students may request up to
  three copies of the paper application and should
  receive their FAFSAs in 3 to 7 business days.
• Students are strongly encouraged to file the
  FAFSA on the Web
• Built-in edits to prevent costly errors
• Skip-logic allows student and/or parent to skip
  unnecessary questions
• 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

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FAFSA on the Web

• Web site www.fafsa.ed.gov
• 2008-09 FAFSA on the Web is available on January
  1, 2008
• FAFSA on the Web Worksheet
• Used as pre-application worksheet. Completing
  the worksheet before filing electronically makes
  filing on-line that much easier!
• Questions follow order of FAFSA on the Web

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Student Financial Aid (SFA) PIN

• Web site www.pin.ed.gov
• Sign FAFSA electronically (PIN)
• PIN is not required but speeds up processing (if
  no PIN numbers are used then a signature page
  must be completed at time of application and sent
  to federal processor immediately)
• May be used by students and parents throughout
  aid process, including subsequent school years

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New for 2008-2009 is a Real Time PIN

• Students and parents may apply for and receive a
  "real-time" PIN when completing a FAFSA on the
  Web (www.fafsa.ed.gov) or when applying for a PIN
  on the Departments PIN Web site (www.pin.ed.gov).
• A real-time PIN is available for first-time PIN
  applicants but also for those who have lost or
  forgotten a previous PIN. After receiving the
  real-time PIN, you will be able to change the PIN
  to a number that is meaningful to you.
• PIN applicants will instantly receive a
  conditional PIN that will allow them to
  electronically sign their FAFSA on the Web.
• The data supplied by the PIN applicant will then
  be verified with the Social Security
  Administration (SSA).
• 1) If the applicants PIN information is accurate,
  the conditional PIN will then be
• good for all processes that require a
  PIN in the future.
• 2) If the applicants data does NOT pass the SSA
  match, they will receive a SAR
• with a rejected signature comment. The
  students and/or parents will then need to
• provide the required FAFSA signatures.
  Students and parents will need to
• correct PIN data to receive their PINs.

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FAFSA On The Web Worksheet
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FOTW Worksheet Section 1

• General student information
• Name
• State of legal residence
• Social Security Number
• Drivers license number

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FOTW Worksheet Section 1

• General student information
• Citizenship
• Marital status
• Date of legal residence
• Selective Service registrationstatus

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FOTW Worksheet Section 1

• General student information
• Self-help preferences
• Receipt of first bachelors degree
• Parents educational background
• Drug conviction status

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FOTW Worksheet Section 2

• Students dependency status
• If all No responses, student is dependent
• If Yes to any question, student is independent

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FOTW Worksheet Section 3

• Data for parents of dependent students
• Parents marital status
• Date of parents marital status

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FOTW Worksheet Section 3

• Data for parents of dependent students
• E-mail address (optional)
• Social Security Number
• Last name
• Date of birth

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FOTW Worksheet Section 3

• Data for parents of dependent students
• State and date of legal residence

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FOTW Worksheet Section 3

• Financial data for parents of dependent students
• Tax filing status and return type
• If parents filed or will file a 1040, were they
  eligible to file a 1040A or 1040EZ?

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FOTW Worksheet Section 3

• Data for parents of dependent students
• Did anyone in the parents household receive
  benefits from any of the federal programs listed?

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FOTW Worksheet Section 3

• Financial data for parents of dependent students
• Adjusted Gross Income (AGI) for 2007
• Income earned from work
• Income tax paid for 2007

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FOTW Worksheet Section 3

• Data for parents of dependent students
• Exemptions claimed for 2007
• Household size
• Number in college

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FOTW Worksheet Section 3

• Financial data for parents of dependent students
• Complete the worksheets on page 8 (right hand
  side)
• Worksheets A and B capture untaxed income
• Worksheet C-collects income excluded from EFC
  calculation

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FOTW Worksheet Section 3

• Asset data for parents of dependent students
• Cash, savings, and checking
• Net worth of investments
• Net worth of business and investment farms

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FOTW Worksheet Section 4

• Financial data for student (and spouse)
• Tax filing status and return type
• If student (and spouse) filed or will file a
  1040, was he or she eligible to file a 1040A or
  1040EZ?

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FOTW Worksheet Section 4

• Financial data for student (and spouse)
• Adjusted gross income (AGI) for 2007
• Income tax paid for 2007

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FOTW Worksheet Section 4

• Financial data for student (and spouse)
• Exemptions claimed for 2007
• Income earned from work

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FOTW Worksheet Section 4

• Data about the independent student (and spouse)
• Household size
• Number in college
• Did a member of the students household receive
  benefits from any of the federal programs listed?

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FOTW Worksheet Section 4

• Financial data for student (and spouse)
• Complete the worksheets on page 8 (left-hand
  side)
• Worksheets A and B capture untaxed income
• Worksheet C collects income excluded from EFC
  calculation

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FOTW Worksheet Section 4

• Asset information for the student (and spouse)
• Cash, savings, and checking
• Net worth of investments
• Net worth of business and investment farms

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FOTW Worksheet Section 4

• Information about students veterans benefits
• Number of months benefits will be received
  during the 2008-09 academic year
• Monthly benefit amount

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FOTW Worksheet Section 5

• List up to 10 colleges to receive FAFSA data
• Federal School Code for each college
• Housing plans for each college

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Signatures

• Required
• Student
• One parent (dependent students)
• Format
• Electronic using PIN
• Signature page
• Paper FAFSA

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2008 2009FREE APPLICATION FOR FEDERAL STUDENT
AID

• FAFSA
• The Color of the FAFSA is ORANGE this year!

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(No Transcript)
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STEP 1
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STEP 2
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STEP 3
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STEP 4
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WORKSHEET A
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WORKSHEET B
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WORKSHEET C
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STEP 5
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STEP 6
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STEP 7
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Frequent FAFSA Errors

• Social Security Numbers
• Divorced/remarried parental information
• Income earned by parents/stepparents
• Untaxed income
• U.S. income taxes paid
• Household size
• Number of household members in college
• Real estate and investment net worth

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FAFSA Processing Results

• Central Processing System (CPS) notifies student
  of FAFSA processing results by
• Paper Student Aid Report (SAR) if paper FAFSA
  was filed and students e-mail address was not
  provided
• SAR Acknowledgement if filed FAFSA on the Web
  and students e-mail address was not provided

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FAFSA Processing Results

• CPS notifies student of FAFSA processing results
  by
• E-mail notification containing a direct link to
  students on-line SAR if students e-mail was
  provided on paper or electronic FAFSA
• Student with PIN may view SAR on-line at
  www.fafsa.ed.gov

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FAFSA Processing Results

• Institutional Student Information Record (ISIR)
  with FAFSA data is sent to colleges listed on
  FAFSA approximately 10 to 14 days after FAFSA
  submitted
• College reviews ISIR with FAFSA data
• May request additional documentation, such as
  copies of federal tax returns

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Student Aid Report

• Review data for accuracy
• Update estimated information when actual figures
  are available

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Making Corrections

• If necessary, corrections to FAFSA data may be
  made by
• Using FAFSA on the Web (www.fafsa.ed.gov) if
  student has a PIN
• Updating paper SAR (SAR Information
  Acknowledgement cannot be used to make
  corrections) or
• Submitting documentation to colleges financial
  aid office

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College Goal Sunday

• College Goal Sunday will be on Sunday, February
  17, 2008 from 2 - 4 p.m.!
• There are 36 sites throughout the state of
  Indiana where financial aid professionals will
  help you complete your FASFA worksheet, paper
  FAFSA, or at designated sites FAFSA completion
  on-line. Find out more (including site locations
  in Indiana) at the College Goal Sunday website
  http//www.collegegoalsunday.org )

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Good Luck!