The Financial Aid The Financial Aid ProcessProcess

Albina GrignonAlbina Grignon

Grignon Educational ConsultantsGrignon Educational Consultants

692-8376692-8376

IntroductionIntroduction

How and When to ApplyHow and When to Apply Types of Aid Programs AvailableTypes of Aid Programs Available Additional Financing OptionsAdditional Financing Options Outside Scholarships/Aid Outside Scholarships/Aid

Renewal/Special CircumstancesRenewal/Special Circumstances

How and When to ApplyHow and When to Apply

Request a Federal PIN Number at Request a Federal PIN Number at www.pin.ed.govwww.pin.ed.gov

Collect DocumentsCollect Documents Fill out the pre-application worksheetFill out the pre-application worksheet Complete FAFSA online at Complete FAFSA online at

www.fafsa.ed.govwww.fafsa.ed.gov after January 1 after January 1stst.. Use link to apply for TAPUse link to apply for TAP Keep recordsKeep records

How and When to ApplyHow and When to Apply

Check “will file taxes”Check “will file taxes” Estimate financial informationEstimate financial information Questions? 1-800-4FEDAID or Questions? 1-800-4FEDAID or

www.fafsa.ed.govwww.fafsa.ed.gov Terms-Expected Family Contribution EFCTerms-Expected Family Contribution EFC Student Aid Report-SARStudent Aid Report-SAR Govt. conducts a “needs analysis” based on Govt. conducts a “needs analysis” based on

financial information submittedfinancial information submitted

www.pin.ed.govwww.pin.ed.gov

www.fafsa.ed.govwww.fafsa.ed.gov

TAPTAP

Types of Aid Programs Types of Aid Programs AvailableAvailable

Grants and ScholarshipsGrants and Scholarships - Pell Grant- Pell Grant - TAP Grant- TAP Grant - Merit Scholarships- Merit Scholarships

Federal Work-StudyFederal Work-Study Federal Perkins LoanFederal Perkins Loan Federal Stafford Loan (subsidized vs. Federal Stafford Loan (subsidized vs.

unsubsidized interest around 6.8%) 66% of 4 unsubsidized interest around 6.8%) 66% of 4 year college graduates had loansyear college graduates had loans

Additional Financing Additional Financing OptionsOptions

Parent Plus LoanParent Plus Loan

Payment PlansPayment PlansFour Installment Payment Plans set by the Four Installment Payment Plans set by the collegecollege

Home Equity Line of credit not a loan. If get a Home Equity Line of credit not a loan. If get a loan and don’t spend all money before next FA loan and don’t spend all money before next FA form, considered an asset and paying interest form, considered an asset and paying interest on full amounton full amount

Other Aid and Special Other Aid and Special CircumstancesCircumstances

Impact of Outside Scholarships-apply for Impact of Outside Scholarships-apply for local scholarships Rotary, Credit Union, local scholarships Rotary, Credit Union, professional organizationsprofessional organizations

Special Circumstances and AppealsSpecial Circumstances and Appeals Disability, Death, Divorce will review Disability, Death, Divorce will review

immediatelyimmediately Loss of Job, loss of income usually will Loss of Job, loss of income usually will

review in Octoberreview in October

Special CircumstancesSpecial Circumstances

The parents adjusted gross income is under The parents adjusted gross income is under $50,000 AND$50,000 AND

All family members are eligible to file IRS form All family members are eligible to file IRS form 1040A of 1040EZ 1040A of 1040EZ

Then the family qualifies for the Simplified Then the family qualifies for the Simplified Needs Test which disregards assets when Needs Test which disregards assets when determining the expected family contributiondetermining the expected family contribution

Avoid Common FAFSA Avoid Common FAFSA Filing ErrorsFiling Errors

Missing SignaturesMissing Signatures Reporting Income of parent no longer in Reporting Income of parent no longer in

householdhousehold Confusing “Tax paid” same figures as AGIConfusing “Tax paid” same figures as AGI Reporting “taxes withheld”(W-2) instead of Reporting “taxes withheld”(W-2) instead of

“taxes paid”“taxes paid” Missing income and asset informationMissing income and asset information

Avoid Common FAFSA Filing ErrorsAvoid Common FAFSA Filing Errors

Zeros for Worksheet A,B,CZeros for Worksheet A,B,C Non custodial parent listed as family income (e.g. Non custodial parent listed as family income (e.g.

grandparent, aunt)grandparent, aunt) Wrong SSN/Birth dateWrong SSN/Birth date

USE USE FinAid’sFinAid’s EFC calculatorEFC calculator in detailed mode to in detailed mode to see where there is any contribution from parent see where there is any contribution from parent assets.assets.

Strategies 2012 and Strategies 2012 and beyondbeyond

Save money in parent’s name not the child’s name or use a 529 savings plan-asset Save money in parent’s name not the child’s name or use a 529 savings plan-asset disregarded if owner is other than student or parent such as grandparentdisregarded if owner is other than student or parent such as grandparent

Spend down the student’s assets and income first- student’s assets “taxed by Spend down the student’s assets and income first- student’s assets “taxed by FAFSA” at higher rate in needs formula than parentsFAFSA” at higher rate in needs formula than parents

If family’s financial circumstances are unusual, make an appointment with financial If family’s financial circumstances are unusual, make an appointment with financial aid administrator at schoolaid administrator at school

Do not withdraw money from retirement fund since it is viewed as income. Do not withdraw money from retirement fund since it is viewed as income. Retirement funds not assessed in needs formula. Try to borrow from retirement Retirement funds not assessed in needs formula. Try to borrow from retirement fund.fund.

Accelerate Accelerate necessarynecessary expenses to reduce cash expenses to reduce cash

Community College for first two years-45% of all first year students start at a Community College for first two years-45% of all first year students start at a community collegecommunity college

Questions?Questions?

Please feel free to call me at 692-8376 Please feel free to call me at 692-8376 with any questions you may have.with any questions you may have.