Financial Aid 101- The Basics. Agenda Financial aid history & philosophy of o Free Application for...
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Transcript of Financial Aid 101- The Basics. Agenda Financial aid history & philosophy of o Free Application for...
Financial Aid 101- The Basics
Agenda
•Financial aid history & philosophy ofoFree Application for Federal Student Aid
• Calculating financial aidoCost of attendance (COA)oExpected Family Contribution (EFC)
•Categories, types, and sources of financial aid
•Special circumstances
1.
3.
2.
Economic
Social
National defense
History of Financial Aid
U.S. Congress passes laws that promote national prosperity:
Philosophy of Financial Aid
•Students and their families have the primary responsibility to pay for postsecondary education expenses
Note: even if the student has left the household
Philosophy of Financial Aid
•Making a college education more attainable
•Providing a consistent and equitable evaluation
•Ensuring eligible students benefit from financial assistance
Federal Application Processing System
General Application Process
IRS Data
Match
FAFSA via Telephone
FAFSA on the Web
Reasons to file electronically:
•Faster processing
•Built-in edits prevent costly errors
•Skip logic allows student and/or parent to avoid unnecessary questions
•Use Internal Revenue Service (IRS) data retrieval
FAFSA on the Web
Reasons to file electronically:
•Easier corrections & updates
•Comprehensive instructions and “help” for common questions
•Check status on-line
•Simplified renewal application
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
• High school diploma or equivalent
• U.S. citizen or eligible non-citizen
• Valid Social Security number
• Enroll in an eligible degree or certificate program
• Register with Selective Service (males only)
• Sign a statement of educational purpose
Initial Student Eligibility
• Not be in default or owe an overpayment on a grant
• Maintain Satisfactory Academic Progress (SAP)
• No drug convictions based on Department of Education standards
Maintaining Student Eligibility
Calculating Financial Aid Eligibility
What is Financial Aid?
Funds provided to students to help pay for postsecondary education expenses. Financial aid includes
• Grants• Scholarship• Work study• Loans
Cost of Attendance (COA)
Note: Costs vary from institution to institution
Standard Costs Optional Costs
Tuition and fees Dependent care
Room and board Study-abroad
Books and Supplies Disability-related services
TransportationEmployment expenses for co-op study
Miscellaneous personal expenses Student loan fees
•EFC is the measure of a family’s financial strength
•EFC is used to determine the student and parent ability to contribute towards the student’s cost of education
•Need analysis is the consistent formula used in determining a family’s EFC
Expected Family Contribution (EFC)
Expected Family Contribution:The Counselor’s Role
Do• Encourage students at all income levels to
apply• Refer students to the college’s Net Price
Calculator*
Do not• Assess eligibility • Promise eligibility
* only an estimate not a guarantee
Calculating EligibilityFor Need-Based Aid
Cost of Attendance (COA)- Expected Family Contribution
(EFC)
=Eligibility for Need-Based Aid
Types of Financial Aid
Program Award Amount Notes
Pell Grant Up to $5550 President’s budget request
FSEOG (grant) Between $100 and $4000 Funding at FY2011 levels
TEACH Grant Up to $4000Proposal: replace TEACH with Presidential Teaching Fellows
Iraq & Afghanistan Service Grant
Up to $5550 equal to Pell Grant – not to exceed the COA
Work Study Determined by each school Funding at FY2011 levels
Perkins Loan Up to $5500 (UG)/ $8000 (Grad)
Proposal: modify Perkins loans into unsubsidized Direct Loans
Subsidized Direct Loan
Between$3500- $5500 (based on UG grade level)
Elimination of subsidized loans for Graduate students
Calculating EligibilityNeed-Based Aid—2012-2013 Federal Programs
California Programs Award Amount Cal Grant A Up to $12,192
Cal Grant B $1551 (1st yr) ; $13743
Cal Grant C Up to $3168 (non CCC) $576 (at CCC)
Chafee Grant Up to $5000
UC Student Aid $100 or more
State University Grant Covers full system-wide fees
Child Development Grant $1000 (CCC) or $2000 (4 yr)
Law Enforcement & Personnel Dependents Grant
Up to $11259 (for up to four years)
Robert C. Byrd Scholarship Up to $1500 (contingent on federal funding)
CCC Board of Governors Fee Waiver Covers all Enrollment Fees
Calculating EligibilityNeed-Based Aid-2012-2013 California Programs
Students who do not demonstrate eligibility for need-based aid may still quality for:
•Federal unsubsidized Direct loan
•Federal Direct PLUS loan
•Private sector scholarships
•Institutional scholarships and employment programs
Calculating EligibilityNon Need-Based Aid
Special Circumstances
•If students and families have unusual circumstances, advise them to contact the financial aid office at the college they plan to attend; the office will advise them on how to proceed.
Special Circumstances
Special Circumstances
•Cannot be reported on the FAFSA
•Contact the financial aid office for procedures
•School’s decision is final and cannot be appealed to Department of Education
Special CircumstancesExamples•Change in employment statuso Dislocated workers/Loss of employment
•Change in parent marital status
•Medical expenses not covered by insuranceo Elder care expenses
•Unusual dependent care expenses
What if…student related changes
•Student cannot obtain parent information
•Homeless individuals
Special CircumstanceExamples:
The Financial Aid Office has authority to make a dependent student independent if unusual circumstances exist:
•An abusive family environment
•Abandonment by parents
•Inability to locate parents
Professional Judgment and Dependency Status
Do not qualify as “unusual circumstances”
• Parents refuse contribution towards education
• Parents unwilling to provide information on the application or for verification
• Parents not claiming the students as a dependent for income tax purposes
• Student demonstrating total self-sufficiency
Professional Judgment and Dependency Status
Remember…
If your student and family have unusual circumstances, advise them to contact the financial aid office at the college they plan to attend; the office will advise them of how to proceed.
Questions?