20082009 Financial Aid Night

1
2008-2009Financial Aid Night
2
(No Transcript)
3
Agenda

• Financial Aid
• Who is eligible?
• How to apply?
• What is financial aid?
• Where does financial aid come from?
• What types of aid are available?

4
General Eligibility Requirements

• Must be enrolled or accepted for enrollment in an
  eligible program of study
• Must be pursuing a degree, certificate or other
  recognized credential
• Must be a U.S citizen or eligible non-citizen
• Must be registered with selective service (if
  male and required to be)
• Visit the selective service web site at
  http//www.sss.gov to register

5
General Eligibility Requirements

• Eligibility may be suspended due to a
  drug-related conviction
• Must have a valid Social Security Number
• Must be making satisfactory academic progress as
  defined by the school (important for future years)

6
Application Process

• Submit the Free Application for Federal Student
  Aid (FAFSA)
• After January 1, 2008
• Before your schools deadline
• By March 1, 2008 to be considered for the Rhode
  Island State Grant
• Check information from each school to determine
• Required application materials
• Application deadlines

7
Register for a PIN

• http//www.pin.ed.gov
• Register now for PIN
• Both the student and the parent can register
• Request PIN before January 1, 2008
• A PIN is not required, but speeds the process
• PIN will be used throughout the aid process, and
  carry from year to year
• Do not share your PIN with anyone, including
  third party commercial vendors

8
Free Application for Federal Student Aid (FAFSA)

• Collects the familys personal and financial
  information used to calculate the Expected Family
  Contribution (EFC)
• File the FAFSA
• Paper/hard copy
• Electronically - RECOMMENDED

9
FAFSA Paper
2008-2009 Paper FAFSA forms are available by
calling the Federal Student Aid Information
Center at 1-800-4-FED-AID Or download a pdf
paper FAFSA at www.FederalStudentAid.ed.gov
10
FAFSA Filing Electronically

• http//www.fafsa.ed.gov
• File on or after January 1, 2008
• Benefits to filing electronically
• More timely submission of original application
  and any necessary corrections
• Built-in edits help prevent costly errors
• Skip-logic allows student and/or parent to skip
  unnecessary questions
• More detailed instructions and help for common
  questions
• Ability to check application status on-line
• Simplified renewal application process

11
FAFSA General Student Information
FOTW Section One

• Social Security Number
• Name
• Drivers license state
• Citizenship
• Alien Registration Number (if applicable)
• Marital status and date of marital status
• State date of legal residence (important for
  state grant eligibility)

12
FAFSA General Student Information
FOTW Section One

• Selective Service (register at www.sss.gov)
• Degree type
• Grade level
• Enrollment status
• Self-help preferences (Interest in work-study and
  loans)
• First bachelors degree?

13
FAFSA General Student Information
FOTW Section One

• Parent(s) educational background
• Drug conviction while receiving federal student
  aid?
• DO NOT LEAVE THIS BLANK
• Note Conviction of possessing or selling
  illegal drugs could affect eligibility for aid

14
FAFSA Student Dependency Status
FOTW Section Two

• At least 24 years old by December 31st of the
  award year covered by the FAFSA (born before
  January 1, 1985)
• Graduate or professional student
• Married
• Has children or other dependents that receive
  more than half of their support from you
• Both parents are deceased or ward of the court
• Currently serving on active duty in the U.S.
  Armed Forces for purposes other than training
• Veteran of the U.S Armed Forces
• Determined to be independent by the financial aid
  administrator

15
FAFSA Parental Information
FOTW Section Three

• Marital Status
• Note students with divorced/separate parents
  should include the information of the parent whom
  they live with. If that parent is remarried,
  include stepparent information.
• Father/Stepfathers Social Security
• Father/Stepfathers last name
• Father/Stepfathers date of birth
• Mother/Stepmothers Social Security
• Mother/Stepmothers last name
• Mother/Stepmothers date of birth
• Parents State of Legal Residence

16
FAFSA Parental Information
FOTW Section Three

• Type of 2007 tax form parents completed
• -1040 -foreign tax return
• -1040A -Puerto Rico, U.S. Territory, etc.
• -1040EZ
• Estimate if taxes incomplete to file by
  deadlines!
• Parents Adjusted Gross Income (AGI)
• Parents wages (money earned from working)
• Income Tax

17
FAFSA Parental Information
FOTW Section Three

• Federal Benefits Did anyone in the parents
  household receive benefits from any of the
  federal programs listed?
• -Supplemental Security Income
• -Food Stamps
• -Free or Reduced Price School Lunch
• -Temporary Assistance for Needy Families (TANF)
• -Special Supplemental Nutrition Program for
  Women, Infants,
• and Children (WIC)
• Parents exemptions on tax form
• Household Size (list all members, including
  yourself)
• Number in household in college (excluding
  parents) at least half-time in degree or
  certificate program

18
FAFSA Parental Information
FOTW Section Three

• Parents amount from FAFSA Worksheet A
• (see worksheet)
• Parents amount from FAFSA Worksheet B
• (see worksheet)
• Parents amount from FAFSA Worksheet C
• (see worksheet)

19
FAFSA Parental Information
FOTW Section Three

• Asset Information
• Balance in parents cash, savings, checking
  accounts (as of todays date)
• Net worth of parents investments, including real
  estate (as of todays date) (exclude home they
  live in)
• Net worth of parents current business and/or
  investment farms (as of todays date) DO NOT
  include value of small business that has fewer
  than 100 full-time or full time equivalent
  employees

20
FAFSA Student Finances
FOTW Section Four

• Type of 2007 tax form student completed
• -1040 -foreign tax return
• -1040A -Puerto Rico, U.S. Territory, etc.
• -1040EZ
• Estimate if taxes incomplete to file by
  deadlines!
• Student Adjusted Gross Income (AGI)
• Student wages (money earned from working)
• Student Income Tax
• Veteran Education Benefits

21
FAFSA Student Finances
FOTW Section Four

• Federal Benefits Did anyone in the parents
  household receive benefits from any of the
  federal programs listed?
• -Supplemental Security Income
• -Food Stamps
• -Free or Reduced Price School Lunch
• -Temporary Assistance for Needy Families (TANF)
• -Special Supplemental Nutrition Program for
  Women, Infants,
• and Children (WIC)
• Student amount from FAFSA Worksheet A
• Student amount from FAFSA Worksheet B
• Student amount from FAFSA Worksheet C

22
FAFSA Student Finances
FOTW Section Four

• Asset Information
• Balance in students cash, savings, checking
  accounts (as of todays date)
• Net worth of students investments (as of todays
  date)
• Net worth of students current business and/or
  investment farms (as of todays date)

23
FAFSA Schools to Receive Information
FOTW Section Four

• Ability to list up to 6 schools to receive FAFSA
  information (up to 10 on the FAFSA on the web)
• Must list the schools six-digit code
• For each school code, indicate housing plan

24
FAFSA Frequent Errors

• Parent /or student 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
• 529 Plan reporting of asset

25
FAFSA

• BEWARE!
• Reminder The process of completing and
  processing the FAFSA are FREE
• Be sure to go directly to http//www.fafsa.ed.gov
• Read the instructions and complete carefully.
• Contact financial aid office for help with
  completing the FAFSA or with any questions

26
FAFSA Expected Family Contribution (EFC)

• The Expected Family Contribution (EFC) is
  calculated from the data reported on your FAFSA.
• The EFC is the amount of money that the family is
  expected to be able to contribute to the
  student's education. (NOTE This is NOT the
  amount you will pay!)
• This formula, termed as Federal Methodology need
  analysis formula, is approved by Congress.

27
Cost of Attendance

• Tuition and fees
• Room and board
• Books, supplies, transportation, miscellaneous
  personal expenses, included documented costs for
  personal computer
• Loan fees
• Study abroad costs
• Dependent care expenses
• Disability-related expenses
• Cooperative education program costs

28
Definition of Need

• Cost of Attendance (COA)
• Expected Family Contribution (EFC)
• Financial Need

29
Need Varies Based on Cost
(http//www.nasfaa.org/subhomes/financialaidnight/
fANight.asp)
30
Need Varies Based on Cost - Example
School X Private School School Y State
Institution School Z Community College
31
Role of the Financial Aid Office

• Determine financial aid eligibility using federal
  formula
• Package aid based on availability of funds
• Send award notification to student

32
Financial Aid Goals

• Assist students in paying for college by
• Evaluating familys ability to pay for
  educational costs (based on FAFSA data and other
  collected information)
• Distributing limited resources in an equitable
  manner
• Providing balance of gift aid and self-help
  aid

33
Types of Aid
34
Federal Grants

• Federal Pell Grant
• Limited to undergraduates pursuing first
  baccalaureate or professional degree
• Aid administrator calculates actual award based
  on the students cost of attendance, enrollment
  status, and EFC
• 2008-2009 Maximum 4800
• Federal Supplemental Opportunity Grant
• Awarded first to students with exceptional
  financial need
• Priority to PELL Grant recipients
• 2008 2009 Maximum 4000, Minimum 100

35
Income of Pell Recipients
84
5
11
Source U.S. Department of Education, National
Center for Education Statistics, 2000 National
Postsecondary Student Aid Study, Undergraduate
Data Analysis System, August 2001.
36
Other Federal Grants

• Available to qualified Pell Grant recipients
• Academic Competitiveness Grant
• 750 first year students
• 1300 sophomores
• National Smart Grant
• 4000 juniors and seniors pursuing major in
  physical, life, or computer sciences,
  mathematics, technology, or engineering
• Must meet other defined qualifications

37
State Grants

• State Government in Rhode Island offers a
  scholarship/grant program
• RI State Grant (www.riheaa.org)
• Residents complete FAFSA by March 1
• Fully portable
• 250-1400 Academic Year (based on EFC and
  Financial Need)

38
Gift Aid

• Questions to ask
• What do I need to do to retain my scholarship
  (minimum GPA)
• How is my award affected by outside
  scholarship(s)
• Will my award remain the same for four years
• Satisfactory academic progress requirements

39
Self Help Aid

• Self-help aid The student must repay or earn
  the funds of self-help aid
• Student Loans
• Federal and private student loan options
• Work-Study
• Typically earned and not used for use in paying
  your bill
• Best used to cover students normal personal
  expenses

40
Stafford Loans
Subsidized
Unsubsidized
Annual loan limits
41
Stafford Loans
2008-2009 6 subsidized / 6.8 unsubsidized
fixed interest Rate UNDERGRAD
Maximum repayment term is 10 years
2 in fees deducted from loan proceeds
42
Self Help Aid

• Questions to ask
• Work-Study/Student Employment
• Is a job guaranteed
• Does the school assign jobs or do I have to find
  one
• What types of positions are available
• Do I have the option to use this money towards my
  bill
• Student Loans
• What are the terms of the loan, what are my
  rights and responsibilities
• What additionally is required to attain the loan

43
Financing Beyond Financial Aid

• Consider your out of pocket expenses including
• Remainder of college invoice for tuition, room,
  board and fees
• Books
• Travel
• Financing options
• Out of pocket
• Student Private Loans
• Parent private/federal loans
• Other loan options

44
PLUS (Parent) Loans
8.5 fixed interest rate
Loan limit determined by net costs
Fees of 4
Repayment term of 10 years
45
What happens next?

• Research and review all admission and financial
  aid materials from each school which you are
  applying
• Meet all application deadlines!
• Complete all financial aid applications
• FAFSA
• CSS Profile
• Individual school applications
• Investigate other sources of aid

46
Special Circumstances

• Report directly to each school any circumstances
  that cannot be reported via the FAFSA
• Change in employment status
• Medical expenses not covered by insurance
• Change in parent/student marital status
• Unusual dependent care expenses

47
Other sources

• State grants, scholarships, loans, work
  programs
• School need-based non-need-based programs be
  aware of any special deadlines
• Private business scholarships
• Civic organization scholarships
• Parents employers

48
Other sources

• Corporation for National and Community Services
  (AmericCorps) http//www.americorps.gov
• Veterans benefits http//www.gibill.va.gov
• ROTC scholarships
• Bureau of Indian Affairs (BIA) Grants
• Web Searches

49
Avoid being scammed

• Better Business Bureau http//www.bbb.com
• US Department of Education http//studentaid.ed.
  gov/students/publications/lsa.index.html
• Federal Trade Commission http//www.ftc.gov

50
Helpful Tips

• Research and know the deadlines of each school
• Check web sites
• Keep a calendar
• Apply early and apply on-line
• Ask questions
• Get the student involved!

51
Questions?
52

• Sources for Presentation
• NASFAA FA Night Presentation
• http//www.nasfaa.ed.gov
• http//www.pin.ed.gov
• http//www.fafsa.ed.gov
• Presentation created for RIASFAA by
• Wynette Dahlquist
• Last Updated 11/13/07