Financial Aid Night PresentationBrought to you with cooperation from

ISFAAPresented by: Kelly McGuire, Trine

UniversityDirector of Financial Aid

Financial Aid 2013-2014

Items to DiscussWhat is financial aid?

What is the Cost of Attendance?

What is the EFC and how is financial need calculated?

What sources does financial aid come from?

How to apply for financial aid, including FAFSA & how to avoid errors

I have completed the FAFSA – what happens next?

Closing and Questions

Financial aid is funds provided to students and their families to assist them in paying for postsecondary education expenses.

Direct costs (pay directly to the school)Tuition & FeesRoom & Board

Indirect costs (costs associated with attending school but not necessarily paid to the school)

Books & SuppliesTransportationMiscellaneous personal expensesOff Campus housing

Direct and indirect costs are combined into the total cost of attendance

Vary widely from college to college

What is Cost of Attendance (COA)?

What is the Expected Family Contribution (EFC)?

Two componentsParent contribution Student contribution

Calculated using FAFSA or FAFSA4Caster data and a federal formula. Main components are:

Family size# in collegeStudents income/assetsParents income/assets

Stays the same regardless of college choice

Colleges use EFC as an index of your family’s financial strength to award financial aid

College A

COA $46,246EFC - 4,500Need = $41,746

COA - VariableEFC - Constant

College B

COA $21,174

EFC - 4,500Need = $16,674

Financial Need = COA-EFC

How is financial need determined?

Types of Financial Aid

Grants

Scholarships

Loans

Employment

Financial aid comes from a variety of sources.

Sources of Financial Aid

college(institutional aid)

outside/privatesources

federalgovernment

state government

Common Federal Aid Programs

GrantsFederal Pell GrantTeacher Education Assistance for College and Higher Education (TEACH Grant)Federal Supplemental Educational Opportunity Grant

Self - HelpFederal Perkins LoanFederal Work-StudyDirect Stafford LoansParent PLUS Loans

Maximum Award Amounts for 2012-13The Big Three

— State of Indiana Grant Program (ICHE)

— Federal Pell Grant

— Federal Supplemental Education Opportunity Grant (FSEOG)

Total = $16,606

A need-based employment program that provides on- and off-campus jobs to students.

Federal Work-Study

Sourceof

Loan

Repayment Options

&Grace Period

Interest Rate

When evaluating loan options, consider the following:

Loan Programs

Start by knowing a your rights and responsibilities.

Subsidized vs.

Unsubsidized

Federal Loan Programs, 2012-13

U. S. Department of Education

* *FAFSA and Program Application(s) are Required

Type GraceRate

Perkins Subsidized 5%Fixed

9 Months

Stafford* *(2012-2013)

Subsidized 3.4%Fixed

6 Months

Unsubsidized 6.8% fixed

6 Months

PLUS

Graduate PLUS

Credit-based 7.9%fixed

Within first 60 days

*Note: Stafford Loans (unsubsidized) for Graduate students have a fixed interest rate of 6.8% through 2013.

You may be eligible for aid, but...

You must apply to find out!

Everyone will be eligible for some type of financial aid.

Every family should fill out a FAFSA even if they chose to decline some of the aid they receive

Apply it is FREE!

Easy as 1-2-3

How to Apply for Financial Aid

Note: Communicate with each college to inquire about steps to a complete application and their deadlines.

To be considered for student aid, a student must complete all forms required by a college.

How to Apply

Free Application for Federal Student Aid (FAFSA)

A standard form that collects family’s demographic and financial information used to calculate the student’s EFC (available in English and Spanish)

How to apply:

Paper FAFSAFAFSA on the web at www.fafsa.govIt’s FREE … Free Application for Federal

Student Aid

Dependent vs. Independent Students At least 24 years old by Dec. 31st of award year;

Graduate or professional student;

Married;

Has children or dependents (in which the student provides over 50% of their support);

Veteran of the U.S. Armed forces or currently serving on active duty

At age 13 or older, both parents deceased, in foster care or a ward/dependent of the court;

Emancipated minor (determined by court in state of legal residence)

In legal guardianship (determined by a court in state of legal residence)

Homeless

* Federal Student Aid uses the data on your FAFSA to calculate an Expected Family Contribution (EFC). The EFC is an indicator of your family’s financial strength to pay for education after high school.

* The EFC is not the amount of money that your family must provide. Rather, you should think of the EFC as an index that colleges use to determine how much financial aid (grants, loans, or work-study)

* Your application results are transmitted to the school(s) listed on your FAFSA, and the school(s) uses the EFC amount to determine the amount of financial aid that you are eligible to receive. Many states and schools also use the FAFSA data to award aid from their programs.

Why complete the FAFSA?

When do I need to file the FAFSA?May be filed at any time during an academic

year, but no earlier than the January 1st prior to the academic year for which the student requests aid

For the 2013-14 academic year, the FAFSA may be filed beginning January 1, 2013

Needs to be completed on an annual basisState Aid Filing Deadline is March 10th, 2013Colleges may set FAFSA filing deadlines that

are different than the State Filing Deadline

oSocial Security Number. Be sure that it is correct!

oRecords of income, such as income earned from work and business, child support paid or received and any other untaxed income. If available, refer to the W-2 Forms and the Federal Income Tax Return IRS 1040, 1040A or 1040EZ.

o Information about assets, such as savings, certificates of deposit, stock options, bonds, 529 plans and other college savings programs; and investment real estate, business and farm.

oDriver’s license number, if the student has one.

oAlien Registration Number, if not a U.S. citizen.

What information is needed?

To complete the FAFSA

• Serves as an electronic signature and provides access to personal records

• Go to www.pin.ed.gov

Option 1: Create a four-digit PINOption 2: Have the site create PIN

• PIN is conditional until relevant information is verified with the Social Security Administration (1-3 days)

• PIN will not expire at the end of the year

A PIN, along with other identifiers, gives Internet access to information on the Federal Student Aid systems.

Personal Identification Number

PIN Checklist

oSocial Security Number

oLast Name

oFirst Name

oMiddle Initial

oDate of Birth

oStreet Address

oe-Mail address (optional)

PIN Registration Web site: Web site:

www.pin.ed.gov Sign FAFSA Sign FAFSA

electronicallyelectronically Can request PIN before Can request PIN before

January 1, 2013January 1, 2013 Not required, but Not required, but

speeds processingspeeds processing

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

FAFSA Tips

Parents must provide information on FAFSA

Grandparents, foster parents, and legal guardians are not parents

If parents are both living and married to each other – both parents provide information

If parent is single – that parent provides information

If single parent has remarried, both parent and step-parent provide information (regardless of any prenuptial agreement)

Who is considered a

parent?

FAFSA TipsIf parents are divorced or legally separated -

identify parent in the following order:

Parent you have lived with more over the past 12 months.

Parent who provided more financial support over the past 12 months.

Parent who provided more financial support during the most recent year you received financial support.

Who is considered a

parent?

Redesigned FAFSA Homepage

26

Simplified options

Updated graphics

An updateable announcement section

Access to FAFSA4caster

Access to FAFSA PDF and paper FAFSA information

www.fafsa.gov

Customized “My FAFSA”

27

Initial FAFSA EntryRenewal Application EntryFAFSA CorrectionsProviding SignaturesContinuing a Saved FAFSAViewing Transaction Hist0ry

“My FAFSA” page – New Student

28

Dynamic messaging guides the applicant through all phases of the application experience

Application Status

PIN Status

Enhanced Functionality

29

Help and Hints now have question labels and question numbers for easier reference.

Formatting on date fields, telephone number, and financial fields.

The system automatically saves the application at the end of each step.

“Clear All Data” allows an applicant delete their data from the system anytime prior to submission.

Financial Information

The IRS Data Retrieval continues in 2013-14 beginning February 3, 2013.

Also available in Corrections

Electronically filed tax return information will be available from the IRS in 1-2 weeks, data from paper tax returns will be available in 4-6 weeks.30

IRS Data Retrieval

31

Once the applicant has successfully authenticated, tax data will be presented and the applicant will have the option to “Transfer” the tax information to the FAFSA

Transferred data will have a notation - “Transferred from the IRS”

Sign and Submit

32

“Print signature page” will appear if that option is selected.

Signature Enhancements

33

A student and parent can enter their PIN and click “Sign” and the system will retain the signature. This allows parents and students to sign and submit separately.

View FAFSA Summary

34

The View FAFSA Summary button takes the student to a summary of their data.

FAFSA Summary Report

35

Confirmation Page

36

Redesigned for clarity. Includes -

Confirmation NumberData Release Number (DRN)EFC estimatePell Grant and Direct Loan estimatesOption for parents to transfer info to an application for a siblingRates for each college on the FAFSA

Signatures

RequiredStudentOne parent (dependent students)

FormatElectronic using PINSignature pagePaper FAFSA

Frequent FAFSA Errors

Parent and student social security numbers

Missing signatures/PIN

Divorce/remarried parent information

Income earned by parents/stepparents

Untaxed Income

Household size & number in college

Real estate and investment net worth

Not using real name as it appears on SS Card

Special Circumstances

Cannot report on FAFSA

Contact the Financial Aid Office at each school to explain your specific situation

College will review special circumstancesMay have a specific formMay request additional documentation

Special CircumstancesChange in employment status

Excessively high medical expenses not covered by insurance

Change in parental marital statusExpenses related to a students disabilityDeath of a parentOne time income exclusionUnusually high dependant child care costs

associated with a disability

Financial Aid Programs

529 Savings & Prepaid Tuition Programs

Employer Tuition Benefits

Tuition Payment Plans

Savings Accounts

Savings Bonds

Types of Programs

Ways to Finance College

Know your options…

What Happens Next?I submitted my FAFSA on time and now

what …….

The financial aid administrator at the college will package all available aid and send an award offer for consideration.

Goal: To meet a student’s need.

Financial Aid Awards

• What is the total cost of attendance?

• What is the Expected Family Contribution?

• What is a student’s financial aid eligibility?

• What types of financial aid are included?

• Was financial need met? • What is the out-of-pocket cost?

Financial Aid Award ExampleEXAMPLE ONLY

Cost of Education - Family Contribution = Need $26,000 $8,000 $18,000

College Scholarship $6,000SSACI Tuition Grant $2,900College Grant $3,300Stafford Subsidized Loan $3,500Stafford Unsubsidized Loan $2,000Work Study $2,000

Total Aid $19,700

The Financial Aid Process In Review

Presented by: Kelly McGuire

Director of Financial AidTrine University

Questions Or Comments………