financing a college education the college goal sunday program was created by the indiana student...
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Financing a College Education
The College Goal Sunday program was created by the Indiana Student Financial Aid Association with funding from Lilly Endowment, Inc., and with supplemental support from the Lumina Foundation for Education.
College Goal Kentucky 2014
What is Financial Aid?
• Scholarships
• Grants
• Loans
• Employment Opportunities
Sources of Financial Aid
• Private
• Institutional
• State
• Federal
Types of Financial Aid
• Merit-Based
• Need-Based
Merit-Based Financial Aid
Private Scholarships
• Free Scholarship Searches
• High School Counselors
• Student and Parent Employers
• Organizations to which you or your family members belong
• Paying for help? Beware!
Institutional Aid
• Apply for admission to the college of your choice
• Ask for scholarship applications from the admissions office
• Ask if a separate financial aid application is required
• Ask for scholarship information from departments specific to your major
• Consider R.O.T.C.
Additional Requirements for Some Schools: CSS/Financial Aid Profile
• Many colleges (mostly private out of state) and scholarship organizations use the data on CSS/Financial Aid Profile to assist in awarding nonfederal aid.
• Visit profileonline.collegeboard.com to find out if your school or scholarship of interest requires this form.
• Students are charged $25 for initial application and one college or program report; additional reports are $16.
Kentucky Educational Excellence Scholarship (KEES)
• After high school graduation, KEES becomes available for use at a Kentucky college or university
• Students pursuing a degree in a program of study not offered in Kentucky may be able to use their KEES out-of-state through the Academic Common Market– Does not apply to colleges in Indiana, Ohio, and Illinois
• Award renewable for up to 8 semesters within 5 years of high school graduation
• Administered by Kentucky Higher Education Assistance Authority (KHEAA)–www.kheaa.com
Kentucky Educational Excellence Scholarship (KEES)
• Merit scholarship funded by net KY lottery proceeds
• KY high school students earn KEES awards for each yearly GPA of 2.5 or better • Cumulative GPA maximum is $2,000
• Students with at least one GPA award can earn bonus awards:• ACT scores of 15 or better earn up to $500• SAT scores of 710 or better earn up to $500• Free/reduced lunch students earn $200-$300 for each
qualifying AP and/or IB exam score
Need-Based Financial Aid
Definition of Need
Cost of Attendance (COA)
- Expected Family Contribution (EFC)
______________________= Financial Need
Cost of Attendance
Always includes:• Tuition, Room and Board• Books and supplies, transportation, and
miscellaneous personal expenses• Loan fees
May include:• Study abroad costs• Dependent or elder care expenses• Expenses associated with a disability• Expenses for cooperative education program
Need Varies Based on Cost
X
Y
Z
Cost of Expected Family NeedAttendance Contribution (Variable) (Variable) (Constant)
1
2
3
EFC EFC
State Programs
• College Access Program Grant (CAP) • Available to students at public and private
colleges in Kentucky• Award amount currently $1,900 per year
• KY Tuition Grant (KTG)• Available to students at Kentucky’s private
colleges. • Award amount currently $2,930 per year
Federal Aid Programs
• Federal Pell Grant
• TEACH Grant
• Campus-Based Programs–Federal Perkins Loan–Federal Work-Study (FWS)–Federal Supplemental
Educational Opportunity Grant (SEOG)
Federal Loan ProgramsWilliam D. Ford Direct Loan Program– Federal Stafford Loan
• Subsidized (need-based): interest does not accrue while student is in school, current fixed interest rate of 3.86%
• Unsubsidized (non need-based): interest accrues while student is in school at current fixed rate of 3.86% (Grad Unsub 5.41%)
– Federal PLUS Loan – 6.41%• Parent can borrow up to Cost of Attendance – All
Financial Aid• If denied, student can receive up to $4,000 more per
year in Stafford unsubsidized loan funds– Rates are based on loans disbursed between 7/1/13 and June
6/30/14. New rates will be announced by July 1, 2014.
Priority Application Deadline
• As soon as possible after January 1, 2013– Receipt date for completed Free Application for
Federal Student Aid (FAFSA) in Kentucky• To ensure maximum consideration for Kentucky
state aid programs• Schools may have unique priority deadlines for
institutional funds
Free Application for Federal Student Aid (FAFSA)
– Family’s personal and financial information required to perform need analysis is collected on the FAFSA.
– Can use estimated 2013 income and tax information, if necessary
– Filing options• Paper version• Electronically through FAFSA on the Web:
www.fafsa.gov• Sophisticated on-line edits and skip logic so that errors are less
likely to be made• On-line help is available for each question
Getting Ready• Before starting the FAFSA, gather:
– Student driver’s license – Student Alien Registration Card– Student and Parent
Social Security cards 2013 W-2 Forms and other records of money earned* 2013 federal income tax return* Records of untaxed income Current bank statements Business, farm, and other real estate records Records of stocks, bonds, and other investments
* Can estimate this information if not available yet.
Federal PIN www.pin.ed.gov
• PIN (Personal Identification Number) serves as the electronic signature on ED documents
• Both student and at least one custodial parent need PIN to sign the FAFSA electronically
• May be used to:– Check on FAFSA status– Verify and correct FAFSA data– Add additional schools to receive
FAFSA data– Change home and e-mail addresses
Apply for student and parent PINs at
www.pin.ed.gov
www.FAFSA.gov Do NOT go to a
“.org” or “.com” website
Start A New FAFSA for Initial FAFSA Entry
Login for Renewal Application
Entry FAFSA Corrections Providing Signatures Continuing a Saved
FAFSA Viewing Transaction
History
Basic Student Information
Name, Social Security and Date of Birth
Notice “Help and Hints” follows along every page to help ensure accuracy.
“Get Started” page –
As an entering freshman for Fall 2014 be sure you are filing the 2014-2015 FAFSA
PIN Status
Introduction Page
Student Demographic Information
Opportunity to check Name, DOB, SS#
Address, Phone #, Email Address
Marital Status – As Of Today
Driver’s License Information
Notice the “Save” Option
Error Icon Identifies Errors
An error icon will appear with a pop-up box indicating the nature of the error.
A RED X will also display to the left of the field where the information needs to be corrected.
Student Demographic Information
Citizenship
Selective Service
Degree Status - Most High School Seniors will answer: High School DiplomaNever attended college / 1st yr. 1st Bachelors Degree Bachelors degree not earned by July 1, 2014
Work Study
Highest Grade completed by parents
High School Question
Student enters the name, city and state of the high school they attended
Student selects Confirm to retrieve the results
High School Search Results – Matches Found
Student can “Select” the school attended from the list. If the student does not find the school on the list, the student selects “Next” to continue and the search criteria are saved.
High School Search Results – No Matches Found
If no matches are found, the student selects Next to continue and the search criteria are saved.
School Selection Step
Student may enter up to 10 colleges by entering Federal School Code or Searching on State, City or School Name
School Code Search Features The student can
scroll through the search results
Can also view detailed information for a school before & after adding the school to their FAFSA
Once a school is added you will be asked to confirm your housing plan
School Selection – Housing Plans For each school
selected the student will select the housing plan for that school
Options include On Campus With Parent Off Campus
Dependency Determination
13 questions determine a student’s dependency status
Dependency Results
Most High School students will have to provide parental information based on the way they answer the Dependency questions.
If the student moves forward without providing the parental information they will most likely have to provide some additional documentation of circumstance to the college or university.
Parent Demographic Information
Notice the slight change in the color of the web layout
Dark Blue refers to the student
Light Purple refers to the parent
Similar Demographic Questions will be asked Name, Social Security and Date of Birth
Parents will also be asked about their Household Size and the Number of individuals going to college
Parent Financial Information
Remember you are answering questions about the previous year’s tax information
If you have not completed your 2013 taxes you are allowed to use your best estimates. Additional instruction is provided if you are estimating income.
Parent Financial Information
39
Type of tax return
AGI and work income
What is a dislocated worker?
Parent Financial Information
40
Taxes Paid
Number of exemptions
“Help and Hints” can be a useful tool to answer:
Additional Financial Information
Untaxed Income
Asset Net Worth ThresholdSome parents of
dependent students and independent students will be presented with an asset net worth question
If answer is “yes”, three asset questions regarding cash, saving, checking, investments and business worth will display.
If answer is “no”, the asset questions will not display.
Student Financial Information
Notice the slight change in the color goes back to dark blue to indicate you are now answering questions about the student.
Student Financial Information
If tax return has not been completed yet, guidance is offered about how to estimate 2013 income and tax information (same in parent section).
Student financial questions will be nearly identical to those asked of parents.
The IRS Data Retrieval is scheduled to be available on February 2, 2014.
Electronically filed tax return information will be available from the IRS in 3 weeks, data from paper tax returns will be available in 8 weeks.
Also available in Corrections
If the parent or student 2013 tax return has already been completed
IRS Data RetrievalOnce 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
Sign & Submit
The best way to sign the FAFSA is by using your PIN
Both student and parent need to provide a PIN for electronic signature
Note: Submitting the FAFSA without signatures will cause a delay
Confirmation Page
Includes –Confirmation NumberData Release Number (DRN)EFC estimatePell Grant and Direct Loan estimatesOption for parents to transfer info to an application for a siblingStatistics for each college on the FAFSA
Verification
• Application selected by federal government or by school
• Confirms accuracy of information reported on FAFSA
If selected, what will you need?
• Verification Worksheet (will be provided to you)
• IRS Data Retrieval
• 2013 U.S. income Tax Transcript
• Follow the directions provided by the school you plan to attend
Common documents requested are:
Role of the Financial Aid Office
• Determines eligibility for financial aid
• Packages aid
• Sends award notification
Special Circumstances
Contact the Financial Aid Office if there are circumstances which affect a family’s ability to pay for college such as:– Loss or reduction in parent or student income or
assets– Death or serious illness– Natural disasters affecting parent income or assets– Unusual medical or dental expenses not covered by
insurance– Reduction in child support or other untaxed benefits– Financial responsibility for elderly grandparents– Tuition expenses at elementary or secondary schools – Unusually high child care costs
Or any other unusual circumstances that affect a family’s ability to contribute to higher education
Evaluating Aid Packages
• Biggest is not always best; unmet need must be considered
• Are cost estimates realistic? Direct vs. Indirect
• Grant/Loan balance
• What are the terms and conditions of aid offered?
• Type of aid offered in view of student’s career objectives and work expectations
Summary of the Financial Aid Process
• Submit all required forms, including the FAFSA, by each college’s published deadlines
• Keep a copy of all forms submitted• Review the electronic Student Aid Report
(SAR) Acknowledgement or the paper SAR sent to the student
• Watch for financial aid award notifications from colleges to which the student has been admitted
• Be sure to apply for financial aid this year and every year as soon as possible after January 1 to receive the best financial aid award possible
• ASK QUESTIONS!
Questions and Answers
Good luck with your educational goals!