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Education Beyond High School

FINANCIAL AID NIGHT

Sharon Eaton

Assistant Director of Financial Aid

UNH Manchester

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Agenda1. Re$pon$ible U

2. Goal of financial aid

3. Types of financial aid applications

4. How financial aid awards are determined

5. Description of the major federal financial aid programs

6. Financial aid calendar/resources

Re$pon$ible UReaching your Educational Goals While Winning with Money

College is an investment in your future, but don’t forget to evaluate from a financial standpoint

Income Potential Cost Resources and Financial Aid

Don’t forget to budget!

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Goal of Financial Aid Primary goal is to assist students in

paying for college and is achieved by: Evaluating family’s ability to pay for

educational costs Distributing limited resources in an

equitable manner Providing a balance of gift aid and self-

help aid

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Types of Financial Aid

Gift aid: Grants and scholarships

Self-help aid: Loans and employment

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• Federal

• Institutional

• State

• Private/local

Primary Sources of Financial Aid

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Applications That May Be Required

FAFSA Form CSS Profile Institutional Forms

To ensure maximum consideration for federal, state, and institutional aid, check information from each school to determine required application materials and application deadlines

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Overview of the FAFSA

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Free Application for Federal Student Aid (FAFSA)

Collects family’s personal and financial information used to calculate the student’s EFC

May be filed electronically at www.fafsa.gov or using paper form that can be printed from the website Forms are available in English and

Spanish

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FAFSA

Information is used to calculate the Expected Family Contribution or EFC The EFC is the amount of money a student and his or

her family may reasonably be expected to contribute towards the cost of the student’s education for the academic year

Colleges use the EFC to award financial aid

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CAUTION! Avoid being charged a fee to file the

FAFSA Processes of completing and processing

the FAFSA are FREE If filing FAFSA on the Web, make sure

you go directly to:

www.fafsa.gov Contact the financial aid office if you

need help in completing the FAFSA

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The FAFSA may be filed at any time during the academic year, but no earlier than the January 1st prior to the academic year for which the student will be attending.

For the 2015-2016 academic year, the FAFSA may be filed beginning January 1, 2015.

Colleges often set their own FAFSA filing deadlines. Be sure to check the FAFSA deadline for the institutions which you may be considering. It is important to meet institutional or priority deadlines in order to be considered for all types of aid available.

Timing is important!

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Ready to file?Information you will need:

Driver’s license Social Security card Permanent Residency card Student & parent 2014 tax returns (or prior year tax

return) 2014 W-2 forms Untaxed income records (such as social security,

non-education veteran benefits, or state assistance records)

Child support (paid or received) for the tax year Bank statements 1099 forms documenting interest earned for 2014 Investment records

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FAFSA on the Web: www.fafsa.gov

FAFSA on the Web

www.fafsa.gov

Available on January 1, 2015

2015-2016 FAFSA on the Web Worksheet—

Used as “pre-application” worksheet

Questions follow order of FAFSA on the web

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Section 1: Student information

General student information:• Name• Social Security number• Citizenship• Marital status• Selective Service Registration• Drug Conviction Status• Parents’ educational background• High School attended

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Section 2: Student’s dependency status

Student’s dependency status:

If all “No” responses, student is dependent Parental information is requested

If “Yes” to any question, student is independent

Parental Information

The big question, who is considered a parent?

Parents are defined by their relationship to the student and whether they live in the household.

Marital status

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Section 3: Parental information

Data for parents of dependent students:Name, Social security number, DOB, marital status Dislocated worker statusTax filing status and type of return filed Adjusted Gross Income (AGI) for 2014 Income earned from work Untaxed income Federal benefits received by anyone in the parents’ household (Free/Reduced Lunch, SSI, SNAP/WIC, etc)

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Section 3: Parental AssetsApplicants may be asked about specific assets and

investments information which may include:

Cash, savings, and checking Net worth of investments

Includes stocks, bonds, mutual funds, trust funds, real estate, and 529 savings plans owned by the parent

Do not include value of the home you live in, retirement funds, or life insurance, family-owned farm or business

Net worth of personal business and investment farms

Net worth of investments = total current market value

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Section 4: Student finances

Financial data for student (and spouse):

Dislocated worker statusTax filing status and type of return filed Adjusted Gross Income (AGI) for 2014 Income earned from work Untaxed income Additional financial information (including savings & investments)

Additional information needed

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

Student signature is required, including one parent signature if student is dependent

Three options - Can provide signature electronically with PIN, print and mail signature page from FAFSA on the web, or sign paper application to be mailed

When completing FAFSA, be sure to remember to save your progress as you go and then click the submit button

Your application is not submitted until you receive a confirmation number

Student Financial Aid Personal Identification Number (SFA PIN)

Web site: www.pin.ed.gov

Sign FAFSA electronically

Can request PIN before January 1, 2015

Not required, but speeds processing

Student and parent require separate PINs

May be used by students and parents throughout aid process, including subsequent school years

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Avoid ERRORS!

Errors made in completing the FAFSA and/or supplemental forms may delay application processing and result in the loss of financial aid funds.

Please complete all forms carefully!

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Frequent FAFSA Errors Social Security numbers Divorced/remarried parent information Income earned by parents/stepparents Untaxed income U.S. income taxes paid Household size Number in postsecondary education Real estate and investment net worth

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FAFSA Processing Results CPS notifies the student of the FAFSA’s

processing results by: E-mail notification containing a direct link to

student’s SAR online if student’s e-mail provided on paper FAFSA or FAFSA on the Web

Paper Student Aid Report (SAR) if paper FAFSA filed and student’s e-mail address was not provided

SAR Acknowledgement if filed via FAFSA on the Web and student’s e-mail address was not provided

If student has a PIN, can view SAR online at www.fafsa.ed.gov/studentaccess.htm

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CorrectionsIf necessary, corrections to FAFSA data may be made by: Using FAFSA on the Web (www.fafsa.gov) if student has a PIN; Updating paper SAR or Submitting documentation to college’s financial aid office

SAR Acknowledgement cannot be used to make corrections

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CSS Profile Formand

Institutional Applications

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To Register for the CSS Profile: Online Registration

– $25 initial application

– $16 reporting fee per school

– Waivers during registration

– $25 non-custodial parent form

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Institutional Application

Required by some schools to better assess students’ and parents’ ability to pay for college

Typically, the institutional application is provided as part of the admissions application

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Role of the Financial Aid Office Verifies information provided by students

and parents Determines eligibility for financial aid Packages aid Sends an award letter which may

include: Student’s cost of attendance Student’s EFC Amount of student’s financial need Programs and amount from each program

for which the student is eligible How and when aid will be disbursed Terms and conditions of student’s award

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• To the extent they are able, parents have primary responsibility to pay for their dependent children’s education

• Students also have a responsibility to contribute to their educational costs

• Families should be evaluated in their present financial condition

• A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect its ability to pay

Principles of Need Analysis

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Definition of Need

Cost of Attendance (COA)

– Expected Family Contribution (EFC)

= Financial Need *

* Need refers to a student’s maximum eligibility for financial aid

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Cost of AttendanceCosts can be considered direct or indirect costs Tuition and fees Room and board Books and supplies, equipment, transportation,

and miscellaneous personal expenses Loan fees Study abroad costs Dependent care expenses Expenses related to a disability Expenses for cooperative education program

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Financial Aid 101Filling the “Cost of College Bucket”

Gift Aid = Pell Grant, Institutional

Grant, Outside Scholarship

Self-Help Aid = Work Study, Federal Loan

GAP = unmet needExpected Family

Contribution (EFC) From past, present and future income

EFC + GAP = Family

Share

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Cost of Attendance20,000

Estimated Family Contribution - 6,000

Eligibility for Financial Aid14,000

Financial Aid Package- University Grant 5,000- Presidential Scholarship 2,000- Federal Student Loan3,500- Federal Work Study 1,000

Total Award 11,500

Determining the Financial Aid Package

Eligibility 14,000

Financial Aid - 11,500

Gap = 2,500

GAP 2,500

+EFC 6,000

= Total Family Share 8,500

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Types of Aid

Institutional Aid Scholarships and grants from the college or university

Federal Grant Programs− Federal Pell Grant− Federal Supplemental Educational Opportunity Grant (FSEOG)

Federal Work-Study Campus-based program that provides employment for undergraduate

and graduate students

Federal Perkins Loan 5% interest rate, nine-month grace period, 10-year repayment

Direct/Stafford Loans School determines eligibility and delivers loan proceeds to the student.

4.66% fixed interest rate, 10-20 year repayment period, deferment provisions available

PLUS Loans Separate application process at www.studentloans.gov, 7.21% fixed rate

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Costs of Borrowing Direct Loans

Fixed interest rate – currently 4.66% for subsidized loans and unsubsidized loans

Loan fees based on principal amount of each loan: 1% origination fee (varies depending on

date the loan disburses)

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Other Sources of Funds State grants, scholarships, loans and

work programs School need-based and non-need based programs

Academic, athletic, and other talent-based scholarships and grants

Private business scholarships Parents’ and students’ places of employment

Civic organization scholarships High school guidance office

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Avoid Being Scammed! For information about financial

aid scams and tips to avoid being scammed check: Department of Education’s web site at:

www.ed.gov/prog_info/SFA/LSA Federal Trade Commission’s web site at:

www.ftc.gov/bcp/conline/publs/alerts/ouchart.htm

To check the legitimacy of scholarship search organizations or individuals check Better Business Bureau’s web site at: http://search.bbb.org/search.html

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Financial Aid Calendar January (or earlier for CSS Profile)

Complete Financial aid forms Remember, better to estimate than wait for the

correct information and miss deadlines To estimate, use your last paycheck, w-2s, or last year’s

tax return as a guide. February

Many school financial aid deadlines Late February–March

Schools may call you with questions March-April

Admissions notification and financial aid award letters mailed

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Financial Aid Calendar April

Compare award letters from different schools

May DECISION DEADLINE on May 1st Notify each school of your decision Pay deposits (tuition, room and board, etc.)

July Receive bill for the Fall semester

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Questions?

Presented by:Sharon Eaton

Assistant Director of Financial Aid

UNH Manchester

Tel: (603) 641-4189