Transcript Document

2012 High School
Advisor Training
Federal and State
Update
About OASFAA & this presentation
• OASFAA is a non-profit organization comprised of
volunteer financial aid professionals.
• OASFAA has provided the information today as a free
service to access staff and high school counselors.
• You have permission to copy and distribute these
materials to your students and families. Charges may
not be assessed for the material or for the information
presented. Permission must be granted for other use of
this information or these materials. Contact the
OASFAA Outreach Chairperson(s) listed on the
OASFAA website, or e-mail the OASFAA Outreach
Committee at [email protected]
2
“The Guide”
• “The Guide” refers to The
Guide to Federal Student
aid.
• “The Guide” is
available free to
download from
www.fsapubs.gov.
• A hard copy can also
be requested for free
from the same
website.
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But before we get started...
• Parents and students have the
primary responsibility for meeting
college costs.
• The distribution of financial aid
resources should be based on the
family’s ability to pay—not
willingness to pay.
• The assessment of a family’s ability
to pay should be independent of the
amount of financial aid available and
cost of attending college.
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Definition of “Need”
Cost of Education (COA)
- Expected
Family Contribution (EFC)
=Need
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Today’s Agenda
•
•
•
•
•
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Deadline and FAFSA Overview
Program Integrity Updates
Update on Federal Aid Programs
Update on State Aid Programs
Review of Resources
Deadline and FAFSA
Overview
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Priority Deadlines
• Priority deadlines are very real,
and should be treated as such!
• Schools may have a FAFSA
deadline AND an admissions
deadline-be aware of the
difference.
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Priority Deadlines
• If a FAFSA priority deadline
exists, it is best to use
completed tax information
via the IRS Data Match
process.
• If taxes have not been
completed, use estimated
income and tax
information.
• Make sure to update your
FAFSA with IRS Data
Retrieval once tax filing is
complete.
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Federal PIN Homepage
 www.pin.ed.gov
 Allows the student
and parent to
establish a federal
pin number, which
is needed to
electronically sign
the FAFSA.
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FAFSA on the Web Homepage
 www.fafsa.ed.gov
 Simplified options
 An updateable
announcement
section
 Access to FAFSA
PDF and paper
FAFSA information
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Need a little help completing the
FAFSA?
 “Help” icon
 Live online chat
 E-mail option
 800-4-FED-AID
 College Goal
Sunday
 http://www.youtube
.com/watch?v=mEx6RMAHE8&feat
ure=plcp
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Detailed College Info and
Comparison
•
•
•
•
•
•
•
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College’s website
School type
Tuition and fees
Net price average
Graduation rates
Retention rates
Transfer rates
Higher Education Reconciliation Act of 2005 (HERA)
College Cost Reduction and Access Act of 2007 (CCRAA)
▼ Increased income protection allowance for
dependent students:
• 11-12 $5,250
• 12-13 $6,000
• 13-14 $6,130
• Bust the myth!
• A summer job won’t “count
against me”!
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Program Integrity
Updates
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Satisfactory Academic Progress
(SAP) Policy
• What is Satisfactory Academic Progress (SAP)?
• SAP refers to ensuring that a student
progresses toward the completion of a degree
or certificate in a timely manner, as prescribed
by The U.S. Department of Education (ED).
• ED is now requiring schools to have a SAP
policy separate from an institution’s academic
standards policy.
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Elements of SAP
• ED states that every school’s
SAP policy must include three
(3) elements:
• Grade Point Average, or GPA
• 2.0 GPA or higher
• Completion Percent
• 67% cumulative completion
percent
• Maximum timeframe for
degree/certificate completion
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• 150% of the program
requirements.
Consequences of not meeting
SAP elements
▼ Financial Aid
Warning
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– A student will have one
semester of financial aid
warning. Students will still be
eligible for federal aid during
the financial aid warning
period, but must meet all SAP
elements before the beginning
of the upcoming semester.
– Schools are not required to
extend a warning period if
they only review SAP
annually.
Consequences of not meeting
SAP elements
▼ Financial Aid Suspension
– A student who fails to meet all
SAP elements by the end of the
financial aid warning period will be
subject to financial aid
suspension.
– The student loses all federal aid,
and potentially lose state and
private aid, as well.
▼ Schools may have separate
financial aid and academic
policies. Both will apply to the
students!
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SAP: Appealing Financial Aid
Suspension
▼ Students who face
financial aid
suspension may have
the ability to appeal
the suspension.
– Appeal avenues may
vary from school to
school; please check with
the individual Financial
Aid Office to review their
specific appeals process.
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Verification
 What is verification?
 Financial Aid
Verification is the
process of establishing
the accuracy of the
information submitted
on the FAFSA.
Verification
▼ Why was I selected for
verification?
– The Common Processor
(a.k.a. The U.S.
Department of Education)
selects applicants for
verification based on
statistical analysis.
– Every institution is required
to verify at least 30% of
their FAFSA filers.
Verification
▼ How does a student
complete the verification
process?
– The best thing to do is to
read through any/all
communication received
from the institution, as it
will guide you through the
process.
Verification
• Changes in the
verification
requirements.
•
High School
completion status.
•
Identity/Statement of
Educational Purpose.
•
Previous verification
items are still in play!
Verification
• What documents are
acceptable?
• Official High School
Transcript to verify high
school completion.
• State issued photo ID for
identity.
• ED is to provide a form to
complete for Statement of
Educational Purpose.
Verification
 What documents are acceptable for financial
information?
 IRS Data Retrieval Tool
 http://www.youtube.com/watch?v=W47_YTRVYD
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 IRS Tax Transcript
 http://youtube.com/watch?v=0wFNqs4Mqdg
 www.irs.gov
 800-908-9946
 This can also be obtained in person if you have a
local IRS office.
 Students need the Tax Transcript, NOT the
Account Transcript.
 W2’s for non-tax filers.
Verification
• Challenges in using IRS
Data Retrieval Tool
• It is only available 1-2 weeks
after e-filing; 6-8 weeks
when returns are mailed.
• Address must match
EXACTLY as shown on
return.
• Folks filing an amended
return or who are married
filing separately are not
eligible.
Verification
Documentation for Independent
Students
 Guardianship, ward of the court
 Must have copy of court document
 Homelessness
 Homeless liaison, pastor, school counselor
Special Circumstances
• Sometimes, things outside
of the federal mold
happen.
• Financial Aid offices can
make changes to a
student’s FAFSA
information based on
special circumstances.
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Net Price Calculator
• Strengths
• Designed to provide
accurate and timely
information about the
net price of a college.
• Can assist families in
comparing colleges
based on net price and
financial aid.
Net Price Calculator
• Weaknesses
• Inclusion of direct and
indirect costs in “price of
attendance” component
can significantly inflate
the price tag.
• Institution’s flexibility to
customize template
could make college
costs comparisons an
extremely complex
process.
Shopping Sheet
▼ Many schools will be
using what’s referred
to as a “Shopping
Sheet”. This could
replace, or
supplement, their
current award letter.
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Update on Federal Aid
Programs
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Political Climate
▼ Three current climate drivers:
– Partisanship & Brinkmanship
– Budget politics dictating policy
– “The status quo”
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Political Climate
▼ What’s the takeaway?
– Student aid is caught
up in a much larger
political dysfunction &
ideological impasse.
– Student aid changes
will likely continue
through the budget
process.
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Federal Aid Programs,
2013-2014
Pell Grant
TEACH
Campus Based Programs
Direct Loans
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Federal Pell Grant 20132014
• Maximum award amount
increases slightly for 20132014
• $5,635 maximum award for
full-time enrollment and an
Expected Family
Contribution (EFC) of zero.
• Maximum Expected Family
Contribution (EFC) for Pell
eligibility has been lowered
to 4995.
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Federal Pell Grant 20132014
• Students now have a
maximum number of
terms they can
receive Pell Grant
• 600% of an annual
award amount, or the
equivalent of 12 full
time semesters.
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TEACH, 2013-2014
No Changes!
Grant of up to $4,000 per year to students who intend
to teach in a public or private elementary or
secondary school that serves students from lowincome families.
Service requirement upon graduation must be met, or
grant becomes an Unsubsidized Stafford Loan that
must be re-paid!!
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Campus Based Programs,
2013-2014
Federal
Supplemental
Education
Opportunity
Grant (SEOG)
Federal
Work
Study
Federal
Perkins
Loan
We are anticipating a reduction in funding for
2013-2014. However, the decrease will vary
from school to school, and exact funding
amounts have yet to be announced.
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Federal Work Study
•
•
•
•
•
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Undergraduate or graduate
students are eligible
Employment can be on or off
campus
FWS wages are excluded
from EFC calculation!!!
Ohio Minimum Wage in
2013 is $7.85/hour
There is a difference
between work study and
“work” or “summer job” on
an award letter.
Federal Supplemental Educational
Opportunity Grant (FSEOG)
▼ Federal SEOG
– Undergraduates with exceptional financial
need.
• Pell Eligible students with the lowest EFC
– Award ranges from $100 to $4000, depending
on when student applies, financial need, and
the funding and policies of school attending.
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Federal Perkins Loan
•
•
•
•
•
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Eligible students (priority to exceptional need)
• Undergraduate or graduate students
• Must file the FAFSA
Annual and aggregate loan limits
• up to $5,500 annually for undergraduates
(actual awards, if any, will vary between schools)
• $27,500 aggregate for undergraduates
Interest rate: 5% (fixed) during repayment
Interest subsidized during in-school and nine-month
grace period
Deferment and cancellation provisions available
Direct Loans, 2013-2014
▼ Direct Subsidized and Unsubsidized
Loans are two separate, unique types of
loans that are awarded separately.
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Subsidized
Unsubsidized
Need based
Not based on financial need
Interest is fixed at 6.8% for all
new undergraduate loans
disbursed after July 1, 2013.
Interest is subsidized while
the student is in school during
deferment.
Interest is fixed at 6.8% for all
new loans disbursed after July
1, 2006. Interest accrues from
time of disbursement of the
funds.
Direct Loans, 2013-2014
Class Year
Base Amount
Additional
Unsubsidized
Amount
Freshman
$3,500
$2,000
$5,500
Sophomore
$4,500
$2,000
$6,500
Junior
$5,500
$2,000
$7,500
Senior
$5,500
$2,000
$7,500
Total Available
to Borrow
▼ Independent Students and Dependent Students whose
parents have been denied the PLUS Loan are eligible for
additional Unsubsidized Stafford Loans ($4,000 as
Freshmen and Sophomores and $5,000 as Juniors and
Seniors)
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Direct Loans, 2013-2014
• Subsidized and
Unsubsidized Loans
• 1% default origination fee.
• Parent and Graduate
PLUS
• 4% default origination fee.
• All fee rebates were
eliminated as of July 1,
2012
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Direct Loans, 2012-2013
FAFSA
MPN
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Follow instructions at
school attending
Entrance Counseling
Disbursement to
student account
Notification of
servicer (instruct
students to watch
and save email/snail
mail)
Direct Loans, 2013-2014
• Parent PLUS Loans
• Loans to parents of dependent students.
• Loan limits are up to the cost of education
less any financial aid received.
• Interest rate is 7.9% fixed.
• Repayment begins within 60 days of full
disbursement.
• Payments may be deferred while the student is in
school.
• FAFSA completion is required.
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Update on State Aid
Programs
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Ohio Aid Programs, 20132014
• Ohio College Opportunity Grant (OCOG)
• War Orphans Scholarship
• National Guard Scholarship
• Safety Officers Memorial Fund
• Nurse Education Assistance Loan
Program (NEALP)
• Choose Ohio First Scholarship
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Historical look at need
based Ohio aid
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Ohio College Opportunity
Grant (OCOG)
•
•
•
•
•
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Students must file the FAFSA, be Ohio residents and
attend an Ohio public university main campus (not
regional campuses or community colleges), Ohio private,
non-profit colleges or universities, and Ohio private, forprofit institutions.
The Expected Family Contribution (EFC) is the index
number for awarding OCOG
EFC eligibility range is from 0000-2190
A part-time student will receive a pro-rated award
Available for continuous enrollment (includes summer)
OCOG, 2013-2014
▼ 2013-2014 is the first
year of the new
biennium budget.
▼ Although we are
optimistic that awards
will not change, we just
don’t know.
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War Orphans Scholarship
2013-2014
• For Ohio dependents of deceased or majority disabled
veterans.
• Funding levels are reviewed annually, so funding for
2013-2014 will not be determined until approximately
July 2013.
• Initial reports indicated funding levels will stay the same as
in 2012-2013.
• The current annual, full-time award is 93% of tuition and
general fees at all Ohio public colleges and universities.
• The current annual, full-time award for students at
eligible private colleges and universities (both non-profit
and for-profit) is $5,575.
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Ohio National Guard
Scholarship 2013-2014
• Eligibility determined by the Ohio Adjutant General.
• Funding levels are reviewed annually, so funding for
2013-2014 will not be determined until approximately
July 2013.
• Initial reports indicated funding levels will stay the same as
in 2012-2013.
• The current annual, full-time award is 100% of tuition
and general fees at all Ohio public colleges and
universities.
• The current annual, full-time award for students at
eligible private colleges and universities (both non-profit
and for-profit) is $8,696.
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Safety Officers Memorial Fund
Scholarship 2013-2014
• For Ohio dependents and spouses of safety officers killed in
the line of duty.
• Funding levels are reviewed annually, so funding for 20132014 will not be determined until approximately July 2013.
• Initial reports indicated funding levels will stay the same as
in 2012-2013.
• The current annual, full-time award is 100% of tuition and
general fees at all Ohio public colleges and universities.
• The current annual, full-time award for students at eligible
private colleges and universities (both non-profit and for-profit)
is $9,056.
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NEALP, 2013-2014
Loans for RN candidates and
graduate nurse faculty students
Loans can be
forgiven with 4 to 5
years of service as
a nurse or nurse
instructor in Ohio
upon completion of
degree
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Loans range from
$1,500 to $5,000
Choose Ohio First
Scholarship, 2013-2014
• Various programs with STEM concentrations
• State funding for these programs will
increase slightly for 2013-2014, but individual
awards will vary from school-to-school.
• Partnerships of private/public schools
apply for funding (ex. Public community
college and private four-year institution.
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Ohio Education and Training
Voucher Program
• www.statevoucher.org
• Eligibility requirements:
• In foster care on their 18th
birthday and aged out at
that time.
• Adopted from foster care
with the adoption finalized
after their 16th birthday
• Foster care case closed
between the ages of 18
and 21.
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Review of Resources
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College Goal Sunday
• Sunday, February 10,
2013
• www.ohiocollegegoal
sunday.org
• Student/Family
registration is now
available.
• Please check the
website for locations
near you.
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Request a Financial Aid
Night Presenter
http://www.oasfaa.org/docs/toc_counselors.html
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Ohio School Counselor
Resources “Binder”
http://www.oasfaa.org/docs/toc_counselors.html
▼ “Ohio School Counselor Resource Binder
Inserts”
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Resources
http://studentaid.gov/
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Resources
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Resources
www.fsa4counselors.ed.gov
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Resources
http://fsa4counselors.ed.gov/clcf/FAFSACo
mpletion.html
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Resources
• Federal Student Aid Information Center
(inside cover of “The Guide”)
• (800)433-3243
• www.federalstudentaid.ed.gov
• Federal Student Aid Publications Website
• www.fsapubs.gov
• Ohio College Access Information Hotline
• (877)428-8246
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