Finding Money for CollegeBasics of Financial Aid and the FAFSA

Office of Financial Aid

University of Mary Washington

We will talk about:

• What is financial aid?• Who can get federal student aid?• What is financial need?• Expected Family Contribution (EFC)• Cost of Attendance (COA)• Types and sources of financial aid• Free Application for Federal Student Aid (FAFSA)• Special circumstances

What is financial aid?

• Money to pay for college or career school

and may include -• Scholarships• Grants• Loans• Student Employment/Federal College Work Study

Who can get federal student aid?

• U.S. citizen or permanent resident• High school graduate/GED holder• Eligible degree/certificate program• Valid Social Security number• Males registered for Selective Service• Satisfactory academic progress in college/career

school

What is financial need?

•Financial need is determined by Expected Family Contribution (EFC) and cost of attendance (COA)•EFC comes from what you report on FAFSA•COA is tuition, fees, room and board, transportation, etc.

COA – EFC = financial need

What is the Expected Family Contribution (EFC)?

• Federal Aid is based on the principle of parental responsibility

• Amount family can reasonably be expected to contribute

• Stays the same regardless of college• Two components

• Parent contribution• Student contribution

• Calculated using data from a federal application form and a federal formula

What is Cost of Attendance (COA)?

• Direct costs

• Indirect costs

• Direct and indirect costs combined into cost of attendance

• Varies widely from college to college

Cost of Attendance for 2013-14 (COA)• VIRGINA RESIDENTS ON CAMPUS LIVING WITH PARENTS OFF CAMPUS • Tuition $ 4,896 $ 4,896 $ 4,874 • Education and General Fees 1,862 1,862 1,862 • Auxiliary Fees 2,902 2,902 2,902 • Meal Plan (225 Block) 3,674 --- --- • Housing Allowance (Average) 5,768 --- --- • CHARGES BILLED TO STUDENTS: $ 19,102 $ 9,660 $ 9,660 • Books and Supplies 1,100 1,100 1,100 • Personal Expenses 1,500 1,500 1,500 • Transportation 1,208 1,208 1,208 • Housing & Food Allowance --- 3,432 9,432 • TOTAL COSTS $ 22,900 $ 16,900 $ 22,900

•

• NON-VIRGINIA RESIDENTS ON CAMPUS LIVING WITH PARENTS OFF CAMPUS • Tuition $ 17,766 $ 17,766 $ 17,766 • Education and General Fees 1,862 1,862 1,862 • Auxiliary Fees 2,902 2,902 2,902 • Meal Plan (225 Block) 3,674 --- --- • Housing Allowance (Average) 5,768 --- --- • CHARGES BILLED TO STUDENTS: $ 31,972 $ 22,530 $ 22,530 • Books and Supplies 1,100 1,100 1,100 • Personal Expenses 1,500 1,500 1,500 • Transportation 1,928 1,438 1,928 • Housing and Food Allowance --- 3,432 9,442 • TOTAL COSTS $ 36,500 $ 30,000 $ 36,500

How much federal student aid can I get?Maximum amounts for the major programs for a dependent freshman in 2014-15:•Federal Pell Grant: 2014-15 max award TBD [$5,645 in 2013-14]•Direct Subsidized and Unsubsidized Loans: $5,500 total based on number of credits earned•Student Employment and Federal Work-Study•Direct PLUS Loan (for parents): COA minus other aid received

FAFSA4caster

For early estimate, use FAFSA4caster:•Go to www.fafsa4caster.ed.gov •Enter some financial information•Get an estimate

Scholarships• Money that does not have to be paid back• Awarded on the basis of merit, skill, or unique

characteristics• Ask college financial aid offices for info about aid

available at their schools – we will discuss later in this presentation

• Free scholarship search at StudentAid.gov/scholarships• Research what scholarships may be available in your

community• Companies may have scholarships available to the

children of employees

Grants

• Money that does not have to be paid back

• Awarded on the basis of financial need

Loans

• Money students and/or parents borrow to help pay college expenses

• Repayment usually begins after education is finished

• Only borrow what is really needed

• Look at loans as an investment in the future

Student Employment/ FCWS

Allows student to earn money to help pay educational costs

•A paycheck

•Room waivers for RA/HRs

•Highly competitive due to limited resources and positions

How do I apply for aid?

• Federal, state, and institutional student aid:

fill out Free Application for Federal Student Aid (FAFSASM) at www.fafsa.gov

• Outside Scholarships: visit scholarship website or call contact number for information

• Institutional Scholarships: submit the Scholarship Application Form before May 15th

How do I apply for federal student aid?

1. Get a PIN at www.pin.ed.gov. • Your parent might need a PIN too.• Choose your own PIN or let the site choose one for you.

• Don’t tell anyone your PIN!

How do I apply for federal student aid?

2. Gather the documents you need to apply. • Find checklist at StudentAid.gov/resources#fafsa-documents

• Optional: Use FAFSA on the Web Worksheet to prepare your answers. (Get the Worksheet at StudentAid.gov/resources#worksheet)

How do I apply for federal student aid?

3. Fill out your FAFSA at www.fafsa.gov. • Apply on or after January 1 but as early as possible to meet all deadlines.

• March 1 deadline for priority filing at UMW• Need help? Use the help functions within the FAFSA (including live chat) or call 1-800-4-FED-AID.

• Don’t forget: watch for the confirmation page that says your FAFSA has been submitted. THEN log out.

How do I apply for federal student aid?

4. Watch for response by e-mail or by mail. • Double-check that your info is correct by logging on at the FAFSA site and reviewing your data.

• Correct any mistakes, both student and parent sign again using their PINs, and submit the corrected info.

How do I apply for federal student aid?

5. Watch for e-mails or letters from the schools you are considering.

• Give the schools any additional paperwork they ask for.• Meet all deadlines or you could miss out on aid!

Good reasons to file electronically:

• Built-in edits to prevent costly errors

• Skip logic allows student and/or parent to skip unnecessary questions

• Option to use Internal Revenue Service (IRS) data retrieval

• More timely submission of original application and any necessary corrections

• More detailed instructions and “help” for common questions

• Ability to check application status on-line

• Simplified application process in the future

FAFSA on the Web

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

What happens next?

• Each school will tell you how much aid you can get at that school.

• Once you decide which school to attend, keep in touch with the financial aid office to find out when and how you will get your aid.

Special Circumstance• Cannot report on FAFSA

• Send written explanation to financial aid office at each college

• See our website for information and form: http://adminfinance.umw.edu/financialaid/special-circumstance/

• Change in employment status

• Medical expenses not covered by insurance

• Change in parent marital status

• Unusual dependent care expenses

• Student cannot obtain parent information

Where can I get more info?

• StudentAid.gov• Info about aid programs• Links to free scholarship and college searches

• 1-800-4-FED-AID• Info about aid programs• Help with FAFSA

Questions?

Thanks for coming

Contact information:

Office of Financial Aid • Phone: (540) 654-2468• E-mail: finaid@umw.edu• Fax: (540) 654-1858