Applying for Financial Aid 2014-2015 Academic Year - PowerPoint PPT Presentation


Title: Applying for Financial Aid 2014-2015 Academic Year


1
Applying for Financial Aid2014-2015 Academic Year
  • Patricia Buono, Assistant Director
  • Financial Aid Services
  • Telephone 860-439-2058 E-Mail
    finaid_at_conncoll.edu

2
Where do I start?
  • Visit college web sites for
  • application requirements and
  • deadline dates
  • Net Price Calculator
  • on each colleges web site to help you determine
    what your estimated family contribution
  • Each calculator is unique to that colleges
    awarding policies.

3
NET PRICE CALCULATOR
  • TIPS
  • Carefully read all instructions and pop ups.
  • All calculators are not alike.
  • Each college builds theirs based on their
    policies.
  • Try to guesstimate as close as possible.
  • Dont forget untaxed income
  • Outcome is a ball park -- not an offer.

4
More Advice www.finaid.com
5
www.studentaid.ed.gov
6
Funding a College Education Who Are the Players?
Federal State Governments
Family
Outside agencies
The college
7
How Much Financial Aid Will Be Offered?
  • Dependent on a familys ability to pay
  • Dependent on the funding available from the
    federal and state governments and the college.
  • Does the college offer merit or athletic
    scholarships?
  • Were the financial aid applications and
    supporting documentation submitted by the
    deadline date?

8
Definition of Financial Need
Cost of Attendance
LESS
Expected family contribution (EFC)
LESS
Other financial assistance
EQUALS
Financial need
9
Comparison of Need by Cost(Assumes full-time
enrollment)
4 Year Private 4 Year Public 2 Year Public
Cost of Education 60,000 25,000 7,000
Expected Family Contribution (EFC) 10,000 10,000 10,000
Need 50,000 15,000 0
10
Meeting the Full Need or Gapping
College A B
Cost of Education 60,000 60,000
Expected Family Contribution (EFC) 10,000 10,000
Need 50,000 50,000
Aid Awarded 50,000 35,000
Unmet Need 0 15,000 Add this to EFC!
11
Cost of Attendance
  • Tuition and Fees
  • Room and Board
  • Books and Supplies
  • Transportation
  • Disability Expenses
  • Miscellaneous and Personal Expenses (purchase of
    a computer, sometimes health insurance fee)

12
Family Contribution Components
  • Parent(s) 2013 income
  • Students 2013 income
  • Parents assets value at the time of the
    application
  • Exclude value of retirement accounts or primary
    residence home equity
  • Include trusts, equity value of investment
    properties, business net worth (IM)
  • Include 529 plans set up by parents (not
    UGMA/UTMA accounts)
  • Students assets value at the time of the
    application
  • Include trusts, if student is beneficiary and
    UGMA/UTMA accounts
  • Number of household members must provide at
    least 50 support
  • Number of dependents attending college at least
    half-time

13
Untaxed IncomeWhere do I find these?
  • FROM THE FEDERAL INCOME TAX RETURN, FORM 1040
  • Child Support Received (not on 1040)
  • Pension contributions (W2 box 12 D, E, F, G, H
    S)
  • Tax Exempt Interest (1040, line 8b)
  • Untaxed portions of Pension/Annuity withdrawals
    (1040, line 16a 16b)
  • Untaxed portions of Retirement account
    withdrawals (1040, line15a 15b)
  • Untaxed portion of Social Security benefits
    (1040, line 20a 20b)
  • IRA or SEP/SIMPLE/Qualified Plan contributions
    (1040, line 28 32)
  • Military/Clergy housing allowance benefit (not on
    1040)
  • Health Savings Account deduction (1040, line 25)
  • Education credits (1040, line 49)
  • Earned Income Credit (1040, line 64a)
  • Additional Child Tax Credit (1040, line 65)

14
Untaxed IncomeWhere do I find these?
  • FROM THE FEDERAL INCOME TAX RETURN, FORM 1040
  • Child Support Received (not on 1040)
  • Pension contributions (W2 box 12 D, E, F, G, H
    S)
  • Tax Exempt Interest (1040, line 8b)
  • Untaxed portions of Pension/Annuity withdrawals
    (1040, line 16a 16b)
  • Untaxed portions of Retirement account
    withdrawals (1040, line15a 15b)
  • Untaxed portion of Social Security benefits
    (1040, line 20a 20b)
  • IRA or SEP/SIMPLE/Qualified Plan contributions
    (1040, line 28 32)
  • Military/Clergy housing allowance benefit (not on
    1040)
  • Health Savings Account deduction (1040, line 25)
  • Education credits (1040, line 49)
  • Earned Income Credit (1040, line 64a)
  • Additional Child Tax Credit (1040, line 65)

15
Eligibility Assessed Using
Federal Methodology (FM)
  • Based on information reported on the 2014-2015
    FAFSA (Free Application for Federal Student Aid)
    www.fafsa.ed.gov
  • Formula (determined by Congress) used to
    calculate eligibility for federal/state aid
  • Home equity excluded
  • No information from the non-custodial parent
  • Custodial parent and stepparent incomes are
    included
  • Parent contribution divided by the of
    dependents attending college at least
    half-timeparents in college not included in this
    number
  • New for 2014-2015 Common law marriages and same
    sex marriages In states that recognize these
    unions, both incomes are usedmust be added
    together.
  • One parent the student must apply for a PIN
    www.pin.ed.gov

16
www.fafsa.ed.gov
17
Eligibility Assessed Using
Institutional Methodology (IM)
  • Based on information provided on the CSS Profile
    or a custom institutional application
  • Used by schools to award their own funds
  • Home equity might be added in
  • Information from the non-custodial parent is
    required
  • Tax losses may be added back
  • Depreciation associated with a business or
    investment property may be added back
  • Parent contribution might not be divided equally
    for in college and no allowance for dependents
    in graduate school and reduced allowance for
    dependents in a lower cost institution (i.e.
    community college).
  • Minimum student contribution can be anywhere
    from 750 to 2,000.

18
http//student.collegeboard.org/css-financial-aid-
profile
19
Remember!
  • Grants/Scholarships do not have to be repaid
  • unless a student withdraws during a term.
  • May be considered taxable income -- depending on
    the amount of grants received -- generally
    anything over the cost of tuition and books is
    taxable.
  • Student loans must be repaid.
  • Additional online requirements must be completed.
  • Federal Work Study provides income from a campus
    job
  • This does not go toward the tuition bill.
  • This is taxable income that you (the student)
    will need to claim, if you file a tax return.

20
Sources of Need Based Aid Federal Grants
  • Federal Pell Grant up to 5,645
  • Federal SEOG Grant up to 4,000
  • Federal TEACH Grant up to 4,000
  • Funding for 2014-2015 has not yet been
    determined.
  • www.studentaid.ed.gov for detailed information
    about these programs.

21
Sources of Need Based Aid Federal Student Loans
  • Federal Perkin Loans up to 5,500
  • Interest rate is 5 fixed, no origination fees
  • Program may change for next year
  • Federal Direct Loan
  • 1st year up to 5,500 (3,500 maximum
    subsidized)
  • 2nd year up to 6,500 (4,500 maximum
    subsidized)
  • 3rd-5th year up to 7,500 (5,500 maximum
    subsidized)
  • Current interest rates/fees 2013-2014
  • 3.86 interest rate
  • 1.072 origination fee
  • For more information go to www.studentloans.gov
  • There are online requirements for both types of
    federal loans.

22
Sources of Need Based Aid Student Employment
  • Federal Work Study -
  • There is no limit -- but average range is 1,200
    to 2,000.
  • Students work approximately 8 10 hours per
    week.
  • Pay is usually issued via direct deposit.
  • Some colleges issue jobs and others have you
    apply for the jobs that interest you.
  • Student must provide proof of identification and
    eligible citizenship status to the college BEFORE
    WORKING.
  • List of acceptable identification documents on
    the I9 form
  • Documents must be originals and unexpired
  • Must also complete federal and state tax forms
    W4s
  • This is wage income that must be claimed, if the
    student is filing an income tax return.

23
Sources of Need Based Aid State Grants
  • For CT residents attending a college in CT
  • www.ctdhe.org
  • Ranges from 2,000 or 4,000 (approx.)
  • Governors Scholarship Program
  • FAFSA required must file by February 15, 2014
  • Need based EFC less than 11,000
  • Merit based Class rank top 20, testing scores
    of at least 1800 or higher for SAT or 27 or
    higher for ACT

24
Sources of Institutional Grants
and Outside Resources
  • Institutional Grants/Scholarships are provided by
    the college either from tuition revenue and/or
    endowed funds and annual gifts.
  • Outside Resources such as
  • Employee Tuition Benefit
  • Contributions from relatives
  • National Merit, Rotary, Garden Club, etc.
    Scholarships
  • Use High school guidance office as a resource
  • www.finaid.org

25
Student Eligibility Requirements
  • U.S. Citizen or
  • Eligible non-citizen
  • --a permanent U.S. resident with a Permanent
    Resident Card (I-551)
  • a conditional permanent resident (I-551C)
  • the holder of an Arrival-Departure Record (I-94)
    from the Department of Homeland Security showing
    any one of the following designations Refugee,
    Asylum Granted, Parolee (I-94 confirms
    paroled for a minimum of one year and status has
    not expired) or Cuban-Haitian Entrant.

26
Student Eligibility Requirements, cont.
  • If a male and age 18 must register by law for
    Selective Service
  • Have a valid social security number
  • Must be enrolled as a regular student in an
    eligible degree or certificate program
  • Must have a high school diploma or an equivalent
    (i.e. home schooled)
  • While enrolled in college, must make satisfactory
    academic progress (including of credits and
    GPA).
  • Must have resolved any drug conviction issues.

27
Forms That May Be Required
College A B C
FAFSA X X X
CSS Profile X X
Colleges Own Form X X
Tax Returns W2 Statements X
Non-Custodial Parents Form X X
Business Supplement X X
Due Date May Be 03/15 02/15 02/01
28
Free Application for Federal Student Aid,
2014-2015FAFSA
  • Cant file prior to 01/01/2014
  • Required by all schools
  • Used to determine eligibility for federal/state
    need based aid
  • Student and one parent must apply for a PIN in
    order to sign the FAFSA electronically
  • Will use this all four years for FAFSA and other
    online documents.

29
www.pin.ed.gov
30
Helpful Tips When Completing the FAFSA
  • Print out the FAFSA on the Web Worksheet
  • Have your 2013 federal tax return and W2
    statements in front of you or prepare a draft
    2013 federal tax return.
  • You can also use your 2012 federal tax return IF
    income will be similar to 2013. Be careful!
  • It is okay to estimate in order to meet early
    deadline dates required by colleges.
  • State of Connecticut deadline 2/15/2014.
  • Go to College Goal Sunday for help with the
    FAFSAJanuary, 2014 www.collegegoalsundayct.org .

31
Helpful Tips When Completing the FAFSA
  • Make sure you use your LEGAL NAME.
  • Parents and students must provide their SSNs if
    a parent does not have a SSN, enter zeros.
  • The name and number MUST match the Social
    Security Administration records or the FAFSA
    will reject.
  • When reporting assets, report the value as of the
    date the FAFSA Do not change that value later.
  • Investment property equity value (value
    mortgage)
  • Stocks, bonds, money market funds, CDs, mutual
    funds, stock options and ownership in legal
    trusts
  • Coverdell savings accounts, 529 college savings
    plans
  • If 529 is in parents name, include in parents
    investment balances.
  • Business/investment farm value

32
Helpful Tips When Completing the FAFSA
  • Assets not to report
  • Equity value of your home
  • Retirement plans (pension funds, annuities,
    non-education IRAS, SEP/Keogh plans)
  • Must also report as income
  • Annual contributions to a retirement plan
  • Housing allowance paid to members of the
    military, clergy and others
  • Tax Exempt interest earned (not tax exempt
    dividends)
  • Child support
  • Make sure all date of birth data is accurate.

33
What is the Federal Definition of a Parent?
  • If your parents are divorced or separated, answer
    the FAFSA questions about the parent you lived
    with more during the past 12 months.
  • If you did not live with one parent more than the
    other, give answers about the parent who provided
    more financial support during the past 12 months.
  • New for 2014-2015, parents who are together but
    unmarried (common law marriage) or same sex
    marriages
  • If your state recognizes common law and same sex
    marriages, the incomes will need to be combined
    for FAFSA filing purposes.

34
What is the Federal Definition of a Parent?
  • If your parent has remarried, you must include
    information about the stepparent.
  • If your parent is widowed or single, answer the
    questions about that parent only.
  • The following people are not your parents unless
    they have adopted you grandparents, foster
    parents, legal guardians, older brothers or
    sisters, and uncles or aunts.

35
What if parent information is not available?
  • If (among a few other reasons)
  • the student has no contact with the parent(s) and
    does not know where they are and
  • the student has not been adopted by someone else
    or
  • Student has left home due to an abusive situation
    or
  • Can be considered an unaccompanied youth /
    homeless,
  • then the College will ask you to provide
  • third party documentation to verify your living
    situation from i.e. an attorney, court officer,
    social worker.
  • Some colleges also require that you complete
    their own waiver form in addition to submitting
    the 3rd party docs.

36
IRS Data Retrieval Tool
37
IRS Data Retrieval Process
  • Option to have the IRS populate the FAFSA
    strongly recommended. Referred to as IRS Data
    Retrieval.
  • You will not be able to participate in the IRS
    Data Retrieval if the following applies
  • You are married but filed separate returns
  • Filed an amended tax return
  • Had a change in marital status after the end of
    the tax year (December 31, 2013)

38
IRS Transcript
  • If you are unable to successfully use the IRS
    Data Retrieval tool, then you will be required to
    provide an official IRS transcript. You can
    request one from the IRS here www.irs.gov
  • Available two weeks after an electronic
    submission
  • Available six weeks after a paper submission
  • The transcript must come to you and then you send
    it to the college --with your students name
    noted on the form.

39
How to Sign the FAFSA
40
Making Corrections to the FAFSA
  • Corrections can be made after the FAFSA has been
    submitted and processed.
  • Can add a college, update income data, etc.
  • If you have submitted your federal income tax
    return after your initial FAFSA submission, you
    can go back in to the FAFSA to use the IRS Data
    Retrieval tool.
  • Did I say it was highly recommended!!!!!?

41
CSS/Financial Aid Profile
  • https//profileonline.collegeboard.com/
  • Not required by all schools
  • 25 for the initial application and 16 for each
    additional college
  • Non-Custodial Parents Form 25
  • Forms used to determine eligibility for
    need-based institutional grants.

42
CSS Profile Tips
  • In addition to the assets reported on the FAFSA,
    you will be required to report
  • Value of your home, purchase price, purchase date
    and current debt (i.e. mortgage balances)
  • Value of your retirement accounts
  • Business value data.

43
CSS Profile Tips
  • Once the Profile has been submitted, you will
    not be able to make corrections.
  • If necessary, you can print out a hard copy of
    the submitted profile, write the corrections on
    the form (different color ink is helpful) and
    send it to each school that requires the Profile.
  • Many colleges participate in the College Boards
    IDOC document imaging service.
  • You send your federal income tax returns, W2
    forms, income statements and other required
    documents to IDOC
  • Participating colleges listed on your profile can
    then access the docs electronically.
  • Saves you multiple copying /mailing time and
    expense.

44
Sample Financial Aid Award Full Need Met
    Tuition Fees 45,000 Room Board
13,000 Books Supplies 1,000 Parent
Contribution 2,250 Miscellaneous
500 Student Contribution 1,750 Transportation
500 Family Contribution
4,000 Total 60,000 Need
56,000   Financial Aid
Award (Cost less Resources)   Federal Pell
Grant 2,500 Federal Supplemental
Educational Opp. Grant
2,500 Connecticut Independent College Grant
2,500 Federal Perkins Loan
1,000 Federal Direct Subsidized Loan
3,500 Federal Work Study
1,400 College Grant
42,600   Total Award 56,000 Federal
Direct Unsubsidized Loan 2,000
45
Shopping Sheet(Helpful when trying to compare
awards)
  Tuition Fees 45,000 Room Board
13,000 Books Supplies
1,000 Miscellaneous
500 Transportation 500 Total Cost
60,000   Federal Pell
Grant 2,500 Federal Supplemental
Educational Opp. Grant
2,500 Connecticut Independent College Grant
2,500 College Grant
42,600   Total Grants
50,100 Net Price (Cost less grants)
9,900 Options to pay Net
Price Federal Direct Subsidized Student Loan
3,500 Federal
Perkins Loan
1,000 Federal
Direct Unsubsidized Student Loan
2,000 Remaining balance
3,400 Other options Federal Work Study 1,400
Parent Payment Plan Parent PLUS
loan Private alternative loan
46
How Aid is Applied to the Bill
  • Tuition Fees 45,000
  • Room Board 13,000
  • Total Charges 58,000
  • Less aid
  • Grants 50,100
  • Loans (subsidized) 4,500
  • Total Aid Applied to the Bill
    54,600
  • Balance Due
    3,400
  • Balance with unsubsidized loan
    2,000 1, 400
  • Must be paid in two installments
  • One-half of balance to be posted on or about
    September 1
  • One half of balance to be posted on or about
    January 1
  • Federal Work Study is not applied to the bill.

47
What if my family contribution seems unreasonable?
  • Compare aid awards from similar colleges. If the
    family contribution is significantly different
  • Ask how the contribution was determined
  • Is there a contribution expected from the
    non-custodial parent?
  • Were losses reported on the tax return added
    back?
  • What is the minimum student contribution?
  • How were family members in college treated?
  • Was home equity included in the analysis?
  • Has there been a change in family dynamics since
    the FAFSA was filed?
  • Request procedures for an Appeal or Review
    and what the submission deadline is.

48
How do I pay the bill?
  • Withdrawals from Savings / Investments / 529
    Plans
  • The Colleges Installment Payment Plan (not a
    loan)
  • Home Equity loans, 401K loans, Stock loans
  • Alternative Student Loans through private lenders
    (i.e. banks, credit unions, state institutions
    and national student loan lenders)
  • Federal PLUS program (Parent Loan for
    Undergraduate Student)
  • Apply for other outside scholarships
  • Check with your financial planner or CPA for
    other options open to you specifically.

49
Federal PLUS Program
  • PLUS Parent loan to undergraduate student
    (student must be a dependent)
  • offered by the Department of Education to
    custodial and non custodial parents
  • Annual loan limit cost of attendance minus other
    aid
  • Fixed interest rate 6.41, Loan origination fees
    4.288
  • Repayment begins 60 days after the full loan is
    disbursed.
  • Can defer payments (interest will still accrue)
    while student is enrolled at least half-time.

50
Aid Award in Subsequent YearsThe Four Year Plan
  • Most Colleges make you apply every year for
    financial aid.
  • But ask Is this award for just this year?
  • Loan amounts increase as the student advances to
    the next grade level (causing grants to
    decrease).
  • If the family income and/or assets
    increase/decrease, the family contribution will
    most likely increase/decrease.
  • If the number of dependents enrolled in college
    changes, the family contribution will change.
  • Remember that only for federal purpose is
    graduate school included in in college
  • If the number in family changes, the family
    contribution will change.
  • Federal and state funding levels change from year
    to year

51
Resources
  • High School Guidance Office
  • Financial Aid Offices
  • Colleges Websites
  • www.studentaid.ed.gov
  • www.finaid.org
  • www.fafsa.ed.gov

52
COLLEGE GOAL SUNDAY
  • Get FREE help filling out the FAFSA!!
  • www.collegegoalsundayct.org
  • Sunday, January, 2014 (date not determined)
  • 130 p.m. 430 p.m.
  • Local sites
  • New London Science and Technology Magnet HS
  • Norwich Norwich Free Academy

53
Thank you for your attention.
What questions can I answer for
you?Good Luck in your College journey!
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Applying for Financial Aid 2014-2015 Academic Year

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Transcript and Presenter's Notes

Title: Applying for Financial Aid 2014-2015 Academic Year


1
Applying for Financial Aid2014-2015 Academic Year
  • Patricia Buono, Assistant Director
  • Financial Aid Services
  • Telephone 860-439-2058 E-Mail
    finaid_at_conncoll.edu

2
Where do I start?
  • Visit college web sites for
  • application requirements and
  • deadline dates
  • Net Price Calculator
  • on each colleges web site to help you determine
    what your estimated family contribution
  • Each calculator is unique to that colleges
    awarding policies.

3
NET PRICE CALCULATOR
  • TIPS
  • Carefully read all instructions and pop ups.
  • All calculators are not alike.
  • Each college builds theirs based on their
    policies.
  • Try to guesstimate as close as possible.
  • Dont forget untaxed income
  • Outcome is a ball park -- not an offer.

4
More Advice www.finaid.com
5
www.studentaid.ed.gov
6
Funding a College Education Who Are the Players?
Federal State Governments
Family
Outside agencies
The college
7
How Much Financial Aid Will Be Offered?
  • Dependent on a familys ability to pay
  • Dependent on the funding available from the
    federal and state governments and the college.
  • Does the college offer merit or athletic
    scholarships?
  • Were the financial aid applications and
    supporting documentation submitted by the
    deadline date?

8
Definition of Financial Need
Cost of Attendance
LESS
Expected family contribution (EFC)
LESS
Other financial assistance
EQUALS
Financial need
9
Comparison of Need by Cost(Assumes full-time
enrollment)
4 Year Private 4 Year Public 2 Year Public
Cost of Education 60,000 25,000 7,000
Expected Family Contribution (EFC) 10,000 10,000 10,000
Need 50,000 15,000 0
10
Meeting the Full Need or Gapping
College A B
Cost of Education 60,000 60,000
Expected Family Contribution (EFC) 10,000 10,000
Need 50,000 50,000
Aid Awarded 50,000 35,000
Unmet Need 0 15,000 Add this to EFC!
11
Cost of Attendance
  • Tuition and Fees
  • Room and Board
  • Books and Supplies
  • Transportation
  • Disability Expenses
  • Miscellaneous and Personal Expenses (purchase of
    a computer, sometimes health insurance fee)

12
Family Contribution Components
  • Parent(s) 2013 income
  • Students 2013 income
  • Parents assets value at the time of the
    application
  • Exclude value of retirement accounts or primary
    residence home equity
  • Include trusts, equity value of investment
    properties, business net worth (IM)
  • Include 529 plans set up by parents (not
    UGMA/UTMA accounts)
  • Students assets value at the time of the
    application
  • Include trusts, if student is beneficiary and
    UGMA/UTMA accounts
  • Number of household members must provide at
    least 50 support
  • Number of dependents attending college at least
    half-time

13
Untaxed IncomeWhere do I find these?
  • FROM THE FEDERAL INCOME TAX RETURN, FORM 1040
  • Child Support Received (not on 1040)
  • Pension contributions (W2 box 12 D, E, F, G, H
    S)
  • Tax Exempt Interest (1040, line 8b)
  • Untaxed portions of Pension/Annuity withdrawals
    (1040, line 16a 16b)
  • Untaxed portions of Retirement account
    withdrawals (1040, line15a 15b)
  • Untaxed portion of Social Security benefits
    (1040, line 20a 20b)
  • IRA or SEP/SIMPLE/Qualified Plan contributions
    (1040, line 28 32)
  • Military/Clergy housing allowance benefit (not on
    1040)
  • Health Savings Account deduction (1040, line 25)
  • Education credits (1040, line 49)
  • Earned Income Credit (1040, line 64a)
  • Additional Child Tax Credit (1040, line 65)

14
Untaxed IncomeWhere do I find these?
  • FROM THE FEDERAL INCOME TAX RETURN, FORM 1040
  • Child Support Received (not on 1040)
  • Pension contributions (W2 box 12 D, E, F, G, H
    S)
  • Tax Exempt Interest (1040, line 8b)
  • Untaxed portions of Pension/Annuity withdrawals
    (1040, line 16a 16b)
  • Untaxed portions of Retirement account
    withdrawals (1040, line15a 15b)
  • Untaxed portion of Social Security benefits
    (1040, line 20a 20b)
  • IRA or SEP/SIMPLE/Qualified Plan contributions
    (1040, line 28 32)
  • Military/Clergy housing allowance benefit (not on
    1040)
  • Health Savings Account deduction (1040, line 25)
  • Education credits (1040, line 49)
  • Earned Income Credit (1040, line 64a)
  • Additional Child Tax Credit (1040, line 65)

15
Eligibility Assessed Using
Federal Methodology (FM)
  • Based on information reported on the 2014-2015
    FAFSA (Free Application for Federal Student Aid)
    www.fafsa.ed.gov
  • Formula (determined by Congress) used to
    calculate eligibility for federal/state aid
  • Home equity excluded
  • No information from the non-custodial parent
  • Custodial parent and stepparent incomes are
    included
  • Parent contribution divided by the of
    dependents attending college at least
    half-timeparents in college not included in this
    number
  • New for 2014-2015 Common law marriages and same
    sex marriages In states that recognize these
    unions, both incomes are usedmust be added
    together.
  • One parent the student must apply for a PIN
    www.pin.ed.gov

16
www.fafsa.ed.gov
17
Eligibility Assessed Using
Institutional Methodology (IM)
  • Based on information provided on the CSS Profile
    or a custom institutional application
  • Used by schools to award their own funds
  • Home equity might be added in
  • Information from the non-custodial parent is
    required
  • Tax losses may be added back
  • Depreciation associated with a business or
    investment property may be added back
  • Parent contribution might not be divided equally
    for in college and no allowance for dependents
    in graduate school and reduced allowance for
    dependents in a lower cost institution (i.e.
    community college).
  • Minimum student contribution can be anywhere
    from 750 to 2,000.

18
http//student.collegeboard.org/css-financial-aid-
profile
19
Remember!
  • Grants/Scholarships do not have to be repaid
  • unless a student withdraws during a term.
  • May be considered taxable income -- depending on
    the amount of grants received -- generally
    anything over the cost of tuition and books is
    taxable.
  • Student loans must be repaid.
  • Additional online requirements must be completed.
  • Federal Work Study provides income from a campus
    job
  • This does not go toward the tuition bill.
  • This is taxable income that you (the student)
    will need to claim, if you file a tax return.

20
Sources of Need Based Aid Federal Grants
  • Federal Pell Grant up to 5,645
  • Federal SEOG Grant up to 4,000
  • Federal TEACH Grant up to 4,000
  • Funding for 2014-2015 has not yet been
    determined.
  • www.studentaid.ed.gov for detailed information
    about these programs.

21
Sources of Need Based Aid Federal Student Loans
  • Federal Perkin Loans up to 5,500
  • Interest rate is 5 fixed, no origination fees
  • Program may change for next year
  • Federal Direct Loan
  • 1st year up to 5,500 (3,500 maximum
    subsidized)
  • 2nd year up to 6,500 (4,500 maximum
    subsidized)
  • 3rd-5th year up to 7,500 (5,500 maximum
    subsidized)
  • Current interest rates/fees 2013-2014
  • 3.86 interest rate
  • 1.072 origination fee
  • For more information go to www.studentloans.gov
  • There are online requirements for both types of
    federal loans.

22
Sources of Need Based Aid Student Employment
  • Federal Work Study -
  • There is no limit -- but average range is 1,200
    to 2,000.
  • Students work approximately 8 10 hours per
    week.
  • Pay is usually issued via direct deposit.
  • Some colleges issue jobs and others have you
    apply for the jobs that interest you.
  • Student must provide proof of identification and
    eligible citizenship status to the college BEFORE
    WORKING.
  • List of acceptable identification documents on
    the I9 form
  • Documents must be originals and unexpired
  • Must also complete federal and state tax forms
    W4s
  • This is wage income that must be claimed, if the
    student is filing an income tax return.

23
Sources of Need Based Aid State Grants
  • For CT residents attending a college in CT
  • www.ctdhe.org
  • Ranges from 2,000 or 4,000 (approx.)
  • Governors Scholarship Program
  • FAFSA required must file by February 15, 2014
  • Need based EFC less than 11,000
  • Merit based Class rank top 20, testing scores
    of at least 1800 or higher for SAT or 27 or
    higher for ACT

24
Sources of Institutional Grants
and Outside Resources
  • Institutional Grants/Scholarships are provided by
    the college either from tuition revenue and/or
    endowed funds and annual gifts.
  • Outside Resources such as
  • Employee Tuition Benefit
  • Contributions from relatives
  • National Merit, Rotary, Garden Club, etc.
    Scholarships
  • Use High school guidance office as a resource
  • www.finaid.org

25
Student Eligibility Requirements
  • U.S. Citizen or
  • Eligible non-citizen
  • --a permanent U.S. resident with a Permanent
    Resident Card (I-551)
  • a conditional permanent resident (I-551C)
  • the holder of an Arrival-Departure Record (I-94)
    from the Department of Homeland Security showing
    any one of the following designations Refugee,
    Asylum Granted, Parolee (I-94 confirms
    paroled for a minimum of one year and status has
    not expired) or Cuban-Haitian Entrant.

26
Student Eligibility Requirements, cont.
  • If a male and age 18 must register by law for
    Selective Service
  • Have a valid social security number
  • Must be enrolled as a regular student in an
    eligible degree or certificate program
  • Must have a high school diploma or an equivalent
    (i.e. home schooled)
  • While enrolled in college, must make satisfactory
    academic progress (including of credits and
    GPA).
  • Must have resolved any drug conviction issues.

27
Forms That May Be Required
College A B C
FAFSA X X X
CSS Profile X X
Colleges Own Form X X
Tax Returns W2 Statements X
Non-Custodial Parents Form X X
Business Supplement X X
Due Date May Be 03/15 02/15 02/01
28
Free Application for Federal Student Aid,
2014-2015FAFSA
  • Cant file prior to 01/01/2014
  • Required by all schools
  • Used to determine eligibility for federal/state
    need based aid
  • Student and one parent must apply for a PIN in
    order to sign the FAFSA electronically
  • Will use this all four years for FAFSA and other
    online documents.

29
www.pin.ed.gov
30
Helpful Tips When Completing the FAFSA
  • Print out the FAFSA on the Web Worksheet
  • Have your 2013 federal tax return and W2
    statements in front of you or prepare a draft
    2013 federal tax return.
  • You can also use your 2012 federal tax return IF
    income will be similar to 2013. Be careful!
  • It is okay to estimate in order to meet early
    deadline dates required by colleges.
  • State of Connecticut deadline 2/15/2014.
  • Go to College Goal Sunday for help with the
    FAFSAJanuary, 2014 www.collegegoalsundayct.org .

31
Helpful Tips When Completing the FAFSA
  • Make sure you use your LEGAL NAME.
  • Parents and students must provide their SSNs if
    a parent does not have a SSN, enter zeros.
  • The name and number MUST match the Social
    Security Administration records or the FAFSA
    will reject.
  • When reporting assets, report the value as of the
    date the FAFSA Do not change that value later.
  • Investment property equity value (value
    mortgage)
  • Stocks, bonds, money market funds, CDs, mutual
    funds, stock options and ownership in legal
    trusts
  • Coverdell savings accounts, 529 college savings
    plans
  • If 529 is in parents name, include in parents
    investment balances.
  • Business/investment farm value

32
Helpful Tips When Completing the FAFSA
  • Assets not to report
  • Equity value of your home
  • Retirement plans (pension funds, annuities,
    non-education IRAS, SEP/Keogh plans)
  • Must also report as income
  • Annual contributions to a retirement plan
  • Housing allowance paid to members of the
    military, clergy and others
  • Tax Exempt interest earned (not tax exempt
    dividends)
  • Child support
  • Make sure all date of birth data is accurate.

33
What is the Federal Definition of a Parent?
  • If your parents are divorced or separated, answer
    the FAFSA questions about the parent you lived
    with more during the past 12 months.
  • If you did not live with one parent more than the
    other, give answers about the parent who provided
    more financial support during the past 12 months.
  • New for 2014-2015, parents who are together but
    unmarried (common law marriage) or same sex
    marriages
  • If your state recognizes common law and same sex
    marriages, the incomes will need to be combined
    for FAFSA filing purposes.

34
What is the Federal Definition of a Parent?
  • If your parent has remarried, you must include
    information about the stepparent.
  • If your parent is widowed or single, answer the
    questions about that parent only.
  • The following people are not your parents unless
    they have adopted you grandparents, foster
    parents, legal guardians, older brothers or
    sisters, and uncles or aunts.

35
What if parent information is not available?
  • If (among a few other reasons)
  • the student has no contact with the parent(s) and
    does not know where they are and
  • the student has not been adopted by someone else
    or
  • Student has left home due to an abusive situation
    or
  • Can be considered an unaccompanied youth /
    homeless,
  • then the College will ask you to provide
  • third party documentation to verify your living
    situation from i.e. an attorney, court officer,
    social worker.
  • Some colleges also require that you complete
    their own waiver form in addition to submitting
    the 3rd party docs.

36
IRS Data Retrieval Tool
37
IRS Data Retrieval Process
  • Option to have the IRS populate the FAFSA
    strongly recommended. Referred to as IRS Data
    Retrieval.
  • You will not be able to participate in the IRS
    Data Retrieval if the following applies
  • You are married but filed separate returns
  • Filed an amended tax return
  • Had a change in marital status after the end of
    the tax year (December 31, 2013)

38
IRS Transcript
  • If you are unable to successfully use the IRS
    Data Retrieval tool, then you will be required to
    provide an official IRS transcript. You can
    request one from the IRS here www.irs.gov
  • Available two weeks after an electronic
    submission
  • Available six weeks after a paper submission
  • The transcript must come to you and then you send
    it to the college --with your students name
    noted on the form.

39
How to Sign the FAFSA
40
Making Corrections to the FAFSA
  • Corrections can be made after the FAFSA has been
    submitted and processed.
  • Can add a college, update income data, etc.
  • If you have submitted your federal income tax
    return after your initial FAFSA submission, you
    can go back in to the FAFSA to use the IRS Data
    Retrieval tool.
  • Did I say it was highly recommended!!!!!?

41
CSS/Financial Aid Profile
  • https//profileonline.collegeboard.com/
  • Not required by all schools
  • 25 for the initial application and 16 for each
    additional college
  • Non-Custodial Parents Form 25
  • Forms used to determine eligibility for
    need-based institutional grants.

42
CSS Profile Tips
  • In addition to the assets reported on the FAFSA,
    you will be required to report
  • Value of your home, purchase price, purchase date
    and current debt (i.e. mortgage balances)
  • Value of your retirement accounts
  • Business value data.

43
CSS Profile Tips
  • Once the Profile has been submitted, you will
    not be able to make corrections.
  • If necessary, you can print out a hard copy of
    the submitted profile, write the corrections on
    the form (different color ink is helpful) and
    send it to each school that requires the Profile.
  • Many colleges participate in the College Boards
    IDOC document imaging service.
  • You send your federal income tax returns, W2
    forms, income statements and other required
    documents to IDOC
  • Participating colleges listed on your profile can
    then access the docs electronically.
  • Saves you multiple copying /mailing time and
    expense.

44
Sample Financial Aid Award Full Need Met
    Tuition Fees 45,000 Room Board
13,000 Books Supplies 1,000 Parent
Contribution 2,250 Miscellaneous
500 Student Contribution 1,750 Transportation
500 Family Contribution
4,000 Total 60,000 Need
56,000   Financial Aid
Award (Cost less Resources)   Federal Pell
Grant 2,500 Federal Supplemental
Educational Opp. Grant
2,500 Connecticut Independent College Grant
2,500 Federal Perkins Loan
1,000 Federal Direct Subsidized Loan
3,500 Federal Work Study
1,400 College Grant
42,600   Total Award 56,000 Federal
Direct Unsubsidized Loan 2,000
45
Shopping Sheet(Helpful when trying to compare
awards)
  Tuition Fees 45,000 Room Board
13,000 Books Supplies
1,000 Miscellaneous
500 Transportation 500 Total Cost
60,000   Federal Pell
Grant 2,500 Federal Supplemental
Educational Opp. Grant
2,500 Connecticut Independent College Grant
2,500 College Grant
42,600   Total Grants
50,100 Net Price (Cost less grants)
9,900 Options to pay Net
Price Federal Direct Subsidized Student Loan
3,500 Federal
Perkins Loan
1,000 Federal
Direct Unsubsidized Student Loan
2,000 Remaining balance
3,400 Other options Federal Work Study 1,400
Parent Payment Plan Parent PLUS
loan Private alternative loan
46
How Aid is Applied to the Bill
  • Tuition Fees 45,000
  • Room Board 13,000
  • Total Charges 58,000
  • Less aid
  • Grants 50,100
  • Loans (subsidized) 4,500
  • Total Aid Applied to the Bill
    54,600
  • Balance Due
    3,400
  • Balance with unsubsidized loan
    2,000 1, 400
  • Must be paid in two installments
  • One-half of balance to be posted on or about
    September 1
  • One half of balance to be posted on or about
    January 1
  • Federal Work Study is not applied to the bill.

47
What if my family contribution seems unreasonable?
  • Compare aid awards from similar colleges. If the
    family contribution is significantly different
  • Ask how the contribution was determined
  • Is there a contribution expected from the
    non-custodial parent?
  • Were losses reported on the tax return added
    back?
  • What is the minimum student contribution?
  • How were family members in college treated?
  • Was home equity included in the analysis?
  • Has there been a change in family dynamics since
    the FAFSA was filed?
  • Request procedures for an Appeal or Review
    and what the submission deadline is.

48
How do I pay the bill?
  • Withdrawals from Savings / Investments / 529
    Plans
  • The Colleges Installment Payment Plan (not a
    loan)
  • Home Equity loans, 401K loans, Stock loans
  • Alternative Student Loans through private lenders
    (i.e. banks, credit unions, state institutions
    and national student loan lenders)
  • Federal PLUS program (Parent Loan for
    Undergraduate Student)
  • Apply for other outside scholarships
  • Check with your financial planner or CPA for
    other options open to you specifically.

49
Federal PLUS Program
  • PLUS Parent loan to undergraduate student
    (student must be a dependent)
  • offered by the Department of Education to
    custodial and non custodial parents
  • Annual loan limit cost of attendance minus other
    aid
  • Fixed interest rate 6.41, Loan origination fees
    4.288
  • Repayment begins 60 days after the full loan is
    disbursed.
  • Can defer payments (interest will still accrue)
    while student is enrolled at least half-time.

50
Aid Award in Subsequent YearsThe Four Year Plan
  • Most Colleges make you apply every year for
    financial aid.
  • But ask Is this award for just this year?
  • Loan amounts increase as the student advances to
    the next grade level (causing grants to
    decrease).
  • If the family income and/or assets
    increase/decrease, the family contribution will
    most likely increase/decrease.
  • If the number of dependents enrolled in college
    changes, the family contribution will change.
  • Remember that only for federal purpose is
    graduate school included in in college
  • If the number in family changes, the family
    contribution will change.
  • Federal and state funding levels change from year
    to year

51
Resources
  • High School Guidance Office
  • Financial Aid Offices
  • Colleges Websites
  • www.studentaid.ed.gov
  • www.finaid.org
  • www.fafsa.ed.gov

52
COLLEGE GOAL SUNDAY
  • Get FREE help filling out the FAFSA!!
  • www.collegegoalsundayct.org
  • Sunday, January, 2014 (date not determined)
  • 130 p.m. 430 p.m.
  • Local sites
  • New London Science and Technology Magnet HS
  • Norwich Norwich Free Academy

53
Thank you for your attention.
What questions can I answer for
you?Good Luck in your College journey!
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