Transcript APPLY TO COLLEGES THAT “FIT” YOU

FINANCIAL AID
NIGHT
2014 – 2015
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Applying for Aid is a Process
• Finding out how much it “costs” to go to a
certain college is a process, not an event.
• It will be toward the end of your senior year
when you know exactly what it will “cost” you
to attend a particular college(s).
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Senior Year College Process
 Apply for admission and merit-based scholarships
for all colleges you like
File the 2014-15 FAFSA by March 10
Apply for private, outside scholarships
Financial Aid Notification Letters come from colleges,
likely between March 15-April 15
Compare your aid offers
Make final college decision by May 1
Return all required forms to your chosen college
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Sources of Aid
• Colleges
Types of Aid
• Scholarships - “gift-aid”
based on student’s merit
• State of Indiana
• Federal government
• Schools, churches, clubs,
businesses, foundations,
parents’ employers, etc.
• Grants - “gift-aid” based on
financial need
• Student Loans - student
repays after graduation
• Work-study - campus job
Financial Aid “Package”
• Ultimately, you may have a financial aid
“package” that is comprised of many different
types of financial aid from several sources.
• Tonight we’ll discuss how to apply for all types
of aid from all sources.
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Applying for Admission is the key!
Student must be accepted for
admission by the college(s) before
any formal offer of scholarship or
financial aid is made.
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APPLY FOR MERIT-BASED
SCHOLARSHIPS FROM COLLEGES
• These may be based on academics, talents,
athletics, or affiliations.
• Follow the steps and deadlines dictated by
each college.
• Colleges decide criteria and amounts.
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APPLY FOR PRIVATE
SCHOLARSHIPS
• Good info from Guidance Office about these!
• Private scholarships can be funded by community
groups, churches, foundations, parents’ employers,
business, etc.
• Don’t pay a person or service to do this for you!
• Popular online search tool is www.fastweb.com
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WHAT IS THE FAFSA?
• The Free Application for Federal Student Aid (FAFSA) is a
standard form that collects demographic and financial
information about the student and family.
• It is the primary application used by colleges to distribute
federal, state and college financial aid in the form of grants,
loans, and work-study -- NOT just for FEDERAL aid!
• Some colleges may ask you for a supplemental financial aid
application, in addition to the FAFSA.
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www.fafsa.gov
• Beware of www.fafsa.COM --- They will charge a fee!
Official FAFSA is free.
• File the 2014-15 FAFSA --
NOT 2013-14 (it is for last year)
• Filing by March 10 is a MUST for Indiana residents
• You can direct your FAFSA to multiple colleges at
once by listing their code.
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BEFORE YOU BEGIN:
Parent and student
PINs may be created at
PIN site prior to
starting the FAFSA recommended
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PINs for FAFSA
• Student AND one parent must each create a PIN
at www.pin.ed.gov
• PIN serves as a “signature” for the online FAFSA;
may submit without, but FAFSA will not be fully
processed until “signed” with PINs.
• PIN will be needed to change/correct FAFSA; both
PINs (student + parent) must be applied each
time FAFSA is updated
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“Help” link opens a list of topics to help
answer most FAQs. “Help” boxes also
found throughout the FAFSA. We will
cover major issues tonight!
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GET ORGANIZED BEFORE YOU START!
• Make a “FAFSA folder” before you begin
• Record Student and Parent PINs, passwords
• Later add copies of submission confirmation
page, etc., and note corrections you may later
make to your original FAFSA
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FAFSA can be done in stages
• Student can begin FAFSA and enter all demographic
information; parents can complete their pages at another
time
• Each page is saved when completed
• FAFSA can be reopened and continue to be completed
prior to submission
• FAFSA can be corrected after submission
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Begin here for
initial FAFSA
Access your FAFSA
here after first time,
whether submitted
or just saved. Must
know PIN.
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File the
2014-15 FAFSA
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Watch carefully if
“Student“ or “Parent” info
is needed on each screen.
 Help and Hints
- lists question
numbers and
offers detailed
explanation.
 The system
automatically
saves the
application at
the end of
each step.
Most
questions
have
detailed
help as you
go along.
FAFSA will be
saved after
each click of
“next”
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Must correct
obvious errors
before going to next
page
Dependency Status
• Include parent information on the FAFSA, unless you
can officially answer “yes” to one of the questions
defining your Dependency Status
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PARENT INFORMATION
• Who is considered a parent?
“Parent” refers to a biological or adoptive parent.
Grandparents, foster parents, legal guardians, older siblings,
and uncles or aunts are not considered parents on this form
unless they legally adopted you.
• In case of divorce or separation give information about
the parent you live with the most. If your divorced or
widowed parent has remarried, your FAFSA household
is your custodial parent + stepparent and all who live
there and receive support.
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PARENT INFORMATION cont.
New Regulation Effective 2014-15
• In the case where legal parents (biological and/or
adoptive) are not married to each other and live
together, select “Unmarried and both parents living
together” and provide information about both of them
regardless of their gender. Do not include any person
who is not married to your parent and who is not a
legal or biological parent.
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Review to determine who should be
counted in parents’ household and
who should be counted as a college
student
PARENT INFORMATION
• HOUSEHOLD SIZE: When answering “How many
people are in your parents’ household?” -- count all
siblings who are under 24 years if they live with your
parents (or they are away at college) and get at least
½ of their support from your parents. “Support”
includes all costs of living in the world. Free shelter is
automatically ½ of support. Also include other
people if they live in your parents’ home and meet
these criteria.
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Income/Financial Section of FAFSA
• Best to complete 2013 taxes as soon as documents
available.
• Best to file taxes electronically.
• Best to complete FAFSA after taxes are filed.
• However, OK TO ESTIMATE tax information to meet the
March 10 deadline.
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IRS Data Retrieval for Tax info
• Beginning late February
• Allows transfer of IRS data into FAFSA.
• May use to initially provide tax info , OR….
• Update later as a “correction” if estimated tax info used
when filing FAFSA initially
• May be used for BOTH student AND parent tax
information
Indicate if
taxes are
“already
completed”
or “Will file”
Try to use
the IRS Data
Retrieval Tool
if conditions
allow.
Otherwise,
put tax info
in manually
and correct
later using
IRS Data
Retrieval.
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First screen in IRS
Data Retrieval Tool
will ask you to fill in
filling status and
address (must be
exactly as shown on
tax return.
If a match is found,
it displays the
actual tax numbers.
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1) Check
here
2) Then
here
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Successful IRS D/R
will show messages
on FAFSA
Do NOT change any
information that
says “Transferred
from the IRS”
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Student and
one parent will
“sign” with PIN.
“Disagree” will be the default. Must
change to “Agree” to continue.
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FAFSA is not
officially
submitted
until you see
Confirmation
page
Short-cut to
second child’s
FAFSA
Initial EFC
index
displays
here.
Colleges
will use to
calculate
aid.
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How much aid did I receive?
• Aid notification does not come from the FAFSA
processor.
• Each college listed on your FAFSA will notify you
about your financial aid in the spring, as long as
you have been admitted
• Aid types and amounts can be different from
each college
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FAFSA can be sent
to as many as 10
colleges; colleges
will offer specific
aid; not the FAFSA
processor
VERIFICATION OF FAFSA
• Some FAFSAs are selected for review in a process called
“verification.”
• College must collect copies of certain documents before
disbursing aid. Must follow college’s instructions to comply.
• Using IRS Data Retrieval assists you in complying with
requests for verification of your FAFSA.
.
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SPECIAL CIRCUMSTANCES
• There is no way to explain special things on the FAFSA.
Unusual circumstances must be discussed with a financial aid
officer at the college(s) the student is considering.
• Examples include:
– Recent job loss
– Death of parent in prior or current year
– Recent divorce or separation of parents
– Large medical bills
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Direct Costs vs. Cost of Attendance
Direct Costs
• These are costs that are
billed by the university.
• May include tuition, student
fees, room, and meal plan.
• Understand each colleges
direct costs and how they
may be paid.
“Cost of Attendance”
• This is a “budget” figure
against which financial aid
eligibility is calculated.
Includes direct costs plus
allowances for other
educational expenses such
as books, transportation
and personal expenses.
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What is EFC?
• EFC is an index number used by the federal
and Indiana government, and colleges to
calculate financial aid eligibility.
• EFC is not a dollar amount that you owe. It is
an index used to calculate and ration aid.
• “Cost of Attendance” – EFC = NEED
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Cost ($) - EFC = “Need”
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Federal Pell Grant
• Needy students may be offered a Federal Pell
Grant – gift aid which is not repaid.
• Amount is often same at different colleges,
although prorated for part-time enrollment.
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State of Indiana Grants
• FAFSA will load into State’s system – Division of Student
Financial Aid for the Indiana Commission on Higher
Education.
• FAFSA must be received by March 10 ! No exceptions!
• 21st Century Scholars is one of the state’s aid programs;
also Frank O’Bannon Higher Education (public colleges)
and Freedom of Choice Award (private colleges).
• Amounts vary by college and diploma type.
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State of Indiana Grants, cont.
• http://www.in.gov/sfa
• Create an eStudent Account to view your state
aid record
• FAFSA errors (“edits”) must be corrected by
May 15 or eligibility is forfeited
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Create an
“eStudent”
account to
view your
status for state
grants
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Federal Direct Stafford Loan
• Annual eligibility, up to maximum of $5,500 will be
listed on colleges’ aid offers
• All FAFSA filers are eligible for this loan
• Loan in student’s name
• Student repays loan after college
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Subsidized vs. Unsubsidized Loan Amounts
• Subsidized portions do not accrue interest
during college. Maximum subsidized is $3,500.
• Unsubsidized portions accrue interest during
college. Current fixed rate is 3.86%.
• Sub vs. Unsub amounts may vary by college
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How will you pay your balance?
• Understand how much you will owe the
college after all financial aid has been
subtracted
• Understand the ways you may elect to pay
that balance: by the semester, monthly
installments, Federal Parent PLUS Loan,
additional private loan for student?
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Federal PLUS Loan
• One way that parents may pay the part not
covered by aid offered to the student.
• May see this offered by college as aid.
• Follow set-up instructions from your college
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www.studentloans.gov
• Go to studentloans.gov for more
information about both federal
student/parent loans.
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Senior Year Checklist
 Apply for admission and merit-based scholarships
for all colleges you like
File the 2014-15 FAFSA before March 10
Apply for private, outside scholarships
Financial Aid Notification Letters come from colleges,
likely between March 15-April 15
Compare your aid offers
Make final college decision by May 1
Return all required forms to your chosen college
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College Goal Sunday
• Financial Aid Counselors will be available to
assist with question while you file the FAFSA.
• February 23rd
• www.collegegoalsunday.org
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There is no such thing as a silly
question when it comes to
understanding your financial aid!
ASK UNTIL YOU
UNDERSTAND
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