Title: What You Need to Know About Financial Aid
1What You Need to Know about Financial Aid
2Topics We Will Discuss Tonight
- What is financial aid?
- Categories, types, and sources of financial aid
- Expected Family Contribution (EFC)
- Cost of Attendance (COA)
- Free Application for Federal Student Aid (FAFSA)
- IRS Data Retrieval
- Special circumstances
3What is Financial Aid?
- Financial aid consists of funds provided to
students and families to help pay for
postsecondary educational expenses.
4Sources and Types of Financial Aid
- Scholarships
- Private sources
- Civic organizations and churches
- State
- Scholarships
- Federal government
- Grants
- Employment
- Loans
5Scholarships
- Money that does not have to be paid back
- Awarded on the basis of merit, skill, or unique
characteristic
6Private Sources
- Foundations, businesses, charitable and religious
organizations - Companies may have scholarships available to the
educational benefits for employees and/or the
children of employees - Free Scholarship Search at www.fastweb.org
7State
- Residency requirements
- Award aid on the basis of both merit and need
- Deadlines vary by state check FAFSA on the Web
- Tuition Incentive Program (TIP)
- Michigan uses the first school listed on the
FAFSA for purposes of - Michigan Tuition Grant
- Michigan Competitive Scholarship
- March 1, 2013 deadline
8Federal Government
- Largest source of financial aid
- Aid awarded primarily on the basis of financial
need - Must apply every year using the Free Application
for Federal Student Aid (FAFSA)
9Common Federal Aid Programs
- Federal Pell Grant
- Teacher Education Assistance for College and
Higher Education Grant - Federal Supplemental Educational Opportunity
Grant
- Federal Work-Study
- Federal Perkins Loan
- Subsidized and Unsubsidized Loans
- PLUS Loans
10Grants
- Money that does not have to be paid back
- Usually awarded on the basis of financial need
11Employment
- Allows student to earn money to help pay
educational costs - A paycheck or
- Non-monetary compensation, such as room and board
12Loans
- Money that students and parents borrow 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
13Federal Direct Stafford Loans
Year in College Initial Loan Amount Additional Unsubsidized Loan for Dependent Undergraduates
First Year 3,500 2,000 (5,500 total)
Second Year 4,500 2,000 (6,500 total)
Third Year Fourth Year 5,500 2,000 (7,500 total)
Undergraduate Loan Maximum Debit Limit 31,000 (only 23,000 can be Subsidized Loan)
This table shows the maximum yearly amount that a
dependent student can be offered in Federal
Direct Stafford Subsidized and Unsubsidized
Loans. It also states the maximum aggregate
limit a dependent student is allowed to have for
their entire undergraduate career.
14Gaps in Educational Costs
- Payment Agreements
- Federal Direct PLUS Loan
- Alternative Loans
15Free Application for Federal Student Aid (FAFSA)
- FREE do not pay
- A standard form that collects demographic and
financial information about the student and
family to apply for federal aid - May be filed electronically or using paper form
beginning January 1st each year - Available in English and Spanish
16FAFSA
- Colleges may set their own FAFSA filing deadlines
for awarding of their institutional funds
(UM-Flint March 1) - Most Colleges and Universities begin awarding in
late March to mid-April - Information used to calculate the Expected Family
Contribution or EFC - Colleges use EFC to award financial aid
17What is the Expected Family Contribution (EFC)
- Amount family can reasonably be expected to
contribute towards the cost of the students
education for an academic year - Stays the same regardless of college
- Two components
- Parent contribution
- Student contribution
18What is Cost of Attendance (COA)
- The cost of attendance (COA), also known as the
budget, is an estimation of what it cost to go to
school for a specific period of enrollment. - tuition fees
- room board
- books supplies
- personal/miscellaneous expenses
- transportation
- Varies widely from college to college
19What is Financial Need
- Cost of Attendance
- Expected Family Contribution
- Financial Need
20Need Varies Based on Cost of Attendance
21Satisfactory Academic Progress (SAP)
- To be eligible to receive federal student aid,
you must meet and maintain your colleges
standards of satisfactory academic progress
toward a degree or certificate. - Each college has a policy students be aware of
the policy if you get any for financial aid.
22Getting Started Electronically
- Apply for Personal Identification Number(PIN)
both parent and student - File FAFSA
- Need Parent and Student
- Federal Tax Return (if completed)
- W-2s
- 6 digit school codes may be found on schools web
site
23Federal Student Aid Personal Identification
Number (FSA PIN)
- Website www.pin.ed.gov
- Sign FAFSA electronically
- Not required, but speeds processing
- May be used by students and parents throughout
aid process, including subsequent school years
24FAFSA on the Web
- Good reasons to file electronically
- Detailed instructions and help for common
questions - 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
25FAFSA on the Web
- Website www.fafsa.gov
- 201314 FAFSA on the Web available on January 1,
2013 - FAFSA on the Web Worksheet
- Used as pre-application worksheet
- Questions follow order of FAFSA on the Web
26FAFSA on the Web
Look to the hints for help
27FAFSA on the Web
Use 2nd year and forward
Use this the first year
28FAFSA on the Web Demographics
29FAFSA on the Web Eligibility
30FAFSA on the Web Eligibility
31FAFSA on the Web School Selection
UM Flint 002327
List your school of choice first
32FAFSA on the Web Dependency Status
33FAFSA on the Web Dependency Status
34FAFSA on the Web Parent Demographics (Single)
Select the answer that describes your parents'
marital status as of the day you submit your Free
Application for Federal Student Aid
(FAFSA). Married / Remarried does not mean
living together unless your parents' state of
legal residence recognizes their relationship as
a common law marriage. If one of your parents is
widowed or divorced and has remarried, answer the
questions about that parent and your stepparent.
35FAFSA on the Web Parent Demographics (Married)
36FAFSA on the Web Financial Info
For 2012 have your parents completed their IRS
income tax return or another tax return?
2012
37IRS Data Retrieval
- Available February 2013 for 201314 processing
cycle - Participation is voluntary
- Reduces documents requested by financial aid
office - DONT Change the IRS Data once it is received
- Department of Education plans to send several
email reminders to request IRS retrieval
38FAFSA on the Web Financial Info
39FAFSA on the Web Financial Info
XXXXXX.00
If answer no, will not see asset questions
40FAFSA on the Web Signatures
- Required
- Student
- One parent (dependent students)
- Format
- Electronic using PIN
- Signature page
- Paper FAFSA
41FASFA on the Web Confirmation
42FASFA on the Web Confirmation
5965
5500.00
43Frequent FAFSA Errors
- Social Security Numbers
- Divorced/remarried parental information
- U.S. income taxes paid
- Real estate and investment net worth
44FAFSA Processing Results How you know its
completed
- Central Processing Service notifies student of
FAFSA processing results by email if provided - At www.fafsa.gov student with PIN may
- View SAR on-line
- Make corrections
45Special Circumstances
- Send written explanation to financial aid office
at each college do not report on FAFSA - Change in employment status
- Medical expenses not covered by insurance
- Change in parent marital status
- Unusual dependent care expenses
46Helpful Links and Phone Numbers
- Order an IRS Tax Transcript on-line
- http//www.irs.gov/individuals/article/0,,id23216
8,00.html - Order an IRS Tax Transcript by phone
- (800)908-9946
- General financial aid information on-line
- www.finaid.org
47UM-Flint Office of Financial Aid 810-762-3444