Transcript The Middle Class Family Paying for College

FINANCIAL AID 101
WWW.FAFSA.GOV
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Available January 1, 2014
Promise deadline March 1, 2014
WV State Grant deadline April 15, 2014
Do NOT use fafsa.com – charges a fee
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The FAFSA –
A Five Step Process
Section 1 - - Student Information
Section 2 –- Student Dependency Status
Section 3 –- Parental Information
Section 4 –- Student Finances
Section 5 – List of Schools
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How is Dependency Determined?
• At least 24 years old by
December 31st of the year
preceding the award year;
• Graduate or professional
student;
• Veteran or active duty for
purpose other than training
of the U.S. Armed Forces; or
• Foster care, emancipated
minor, legal guardianship;
• Married;
• Has legal dependents other
than a spouse;
• Both parents deceased or
ward of the court;
• Homeless or
unaccompanied youth.
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FAFSA on the Web:
Advantages:
• Answer only questions applicable to student/parent
• Reduces the number of errors
• Processed quicker
• Date received is the date submitted electronically
• Corrections can be made electronically
• Parents with multiple children in college will able to
transfer their information to other children’s
applications
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Frequent FAFSA Errors
• Social Security Number
• Parent Information
• Drug Question
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Untaxed income
U.S. income taxes paid
Household size
Number in postsecondary education
FAFSA Year
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IRS Link to FAFSA
• Available February for 2014-2015;
• Allow applicants and parents of dependent applicants
to transfer 2013 tax return information from an IRS
Web site directly into their FAFSA;
• Available for initial FAFSA or correction about 2 weeks
after filing tax return electronically.
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IRS Link to FAFSA
• If not available when
you initially complete
FAFSA, you can go back
once taxes are done
and update the FAFSA
using the IRS Data
Retrieval Process
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IRS Link to FAFSA
• In order to use the IRS
Link on the FAFSA, you
must enter the exact
information into the
website as appears on
your 2013 federal tax
return
• SSN
• Date of Birth
• Address
• Filing Status
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Signatures
• Required
– Student
– One parent (dependent students)
• Format
– Electronic using PIN
– Signature page
– Paper FAFSA
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Federal Student Aid Personal Identification
Number (FSA PIN)
• Apply for PIN when
completing the FAFSA
• Sign FAFSA electronically
• May be used by students
and parents throughout
aid process, including
subsequent school years
• Website: www.pin.ed.gov
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FAFSA ON THE WEB
• A side note:
• Any time you submit something online with FAFSA
on the Web, you will be given a “Confirmation Page”
to confirm your transaction.
• Always print and keep your confirmation page for
future reference. It may prove helpful if a dispute
arises.
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FAFSA ON THE WEB
• Application is processed in order it was
received usually within 72 hours
• If you provide e-mail address, you will receive
an e-mail with a “link” to view your Student Aid
Report (SAR) on-line
• Important that you review your Student Aid
Report
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Making Corrections
If necessary, corrections to FAFSA data may be
made by:
• Using FAFSA on the Web (www.fafsa.gov) if
student has a PIN;
• Updating paper SAR (SAR Information
Acknowledgement cannot be used to make
corrections); or
• Submitting documentation to college’s
financial aid office
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Verification
• The U.S. Department of Education randomly
selects;
• Student must comply with institutional
request for information;
• Use either IRS Data Retrieval Process as part of
FAFSA, or
• Must contact IRS to request a tax transcript be
sent at www.irs.gov or by calling 1-800-9089946
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Special Circumstances
(Professional Judgment)
• Cannot report on FAFSA
• Send written explanation to financial aid office at
each college
• Examples include but not limited to:
– Change in employment status
– Medical expenses not covered by insurance
– Change in parent marital status
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FAFSA4caster
• Does not replace FAFSA;
• Allows you to get early estimate of
eligibility of Federal Aid;
• www.federalstudentaid.ed.gov
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2014-2015 Paper FAFSA
• Order a Paper FAFSA by calling 1-800-4333243;
• Can download and print off paper FAFSA by
going to www.federalstudentaid.ed.gov;
• Cannot submit FAFSA on the Web
Worksheet as a paper FAFSA.
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Basic Application Flow
• Student and school receive FAFSA information from
federal processor (student receives the Student Aid
Report (SAR), school receives the info electronically)
• School matches admissions record with financial aid
application and determines eligibility
• School mails award letter to student
• Student mails award letter back to school
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Financial Aid Timeline
• Applying to schools, taking ACT/SAT, searching and
applying for private and institutional scholarships
(Throughout senior year)
• Apply for Aid (January-February 2014)
• Receive Award Letter (March-May)
• Comply with Information Requests (March-May)
• Verification and Aid Coordination (Spring&Summer)
• Financial Aid Disbursed (Start of first term)
• Re-apply for Aid (January-February 2015)
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Basic Equation of Need
Cost of Attendance (COA)
 Expected Family Contribution (EFC)
 Student’s Financial Need (eligibility)
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Cost of Attendance
(varies from school to school)
• Tuition and fees
• Room and board
• Books and supplies
• Transportation
• Miscellaneous personal expenses
• Loan fees, study abroad costs, dependent or elder care
expenses.
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Determining the Expected Family
Contribution (EFC)
• Income
• Asset Equity (excluding home equity)
• Family Size
• Number of Family Members in College (excludes parent
enrolled in college)
• Age of Parents
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Federal Pell Grant Program
• Eligible students
– Undergraduates pursuing first baccalaureate or
professional degree
– Aid administrator determines actual award
amount based on enrollment status, and EFC
(under 5,081)
• Award amounts
– Up to $5,645 maximum (in 2013-2014)
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Federal Supplemental Educational
Opportunity Grant (FSEOG)
• Eligible students
– Undergraduates pursuing first baccalaureate or
professional degree
– Awarded first to students with exceptional
financial need (i.e., students with the lowest
EFCs at that school)
– Priority to Federal Pell Grant recipients
• Annual award amounts
– $100 minimum
– $4,000 maximum
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West Virginia
Higher Education Grant
• Must be WV resident
• Awards range from $2,500 to $2,100 depending on
the EFC.
• The student must enroll full-time at an approved
institution, demonstrate need, and file the FAFSA by
April 15, 2014.
• Students must have a 2.0 high school gpa to be
eligible
• Students must maintain 2.0 gpa and complete 24
credits to renew it.
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Higher Education Adult Part-Time Student
(HEAPS) Grant
• Need-based grant
• Decentralized administration – Contact Institutional Aid
Office for more details and to apply
•Traditional part-time enrollment
•Maximum award cannot exceed part-time tuition
and fee charges or $176 per credit hour at a nonpublic institution for 13-14
West Virginia Higher Education Policy Commission
HEAPS Workforce Grant
•Application becomes available on July 1;
•Contact the school for application
•Student must complete FAFSA and have financial
need
•Can receive up to $2,000 or tuition and fees
•For Certificate or short-term training programs
like certified medical training, mining, gaming,
etc.
West Virginia Higher Education Policy Commission
Requirements for the PROMISE Scholarship
Eligibility Requirements
• 3.0 GPA in the core and
overall coursework
• 22 on the ACT (minimum of
a 20 in each of the subject
areas) or 1020 on
the SAT (490 verbal, 480
Math) Writing sections NOT
included
• Put SSN when registering
for test
• June 14, 2014 last ACT date
• June 7, 2014 last SAT date
West Virginia Higher Education Policy Commission
Core Requirements
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English – 4 credits
Mathematics – 4 credits
Social Sciences – 4 credits
Natural Sciences – 3
credits
The core grade point
average includes all core
classes
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2014 Eligibility Criteria and Deadlines
For the PROMISE Scholarship
• PROMISE application available November 1; deadline
is March 1, 2014
• Ensure student uses correct SSN when completing
application
• Submit the FAFSA by March 1, 2014
• When students submit PROMISE application, student
will receive confirmation number;
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PROMISE Scholarship
• Students go to www.cfwv.com/PROMISE
• Create a WVSAM account with username and
password
• Allows you to go back and make any
corrections to your PROMISE application
• Allows you to see the status of your PROMISE
application
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PROMISE Scholarship
• Tuition and mandatory fees at any West Virginia
public or private non-profit college up to $4,750
• PROMISE is renewable (for up to 8 semesters for a 4
year degree or 4 semesters for a 2 year degree) as
long as the student maintains a 3.0 in college and
completes 30 credit hours in a 12 month period.
• Student may request consideration for deferment if
going out of state for up to a year or if other
circumstances, please contact our office
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Federal Work-Study
• Employment during school
• Job may be on or off campus
• Income is taxable (state and federal)
• Excluded from student’s total income reported on
next year’s FAFSA
• Program varies from school to school
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Teach Grant
• Students can receive up to $4,000 a year;
• Cannot exceed $16,000 for undergraduates or $8,000
for graduates;
• Student must have 3.25 gpa;
• Commit to teach full-time for 4 years within their first
8 years out of school or it becomes a loan;
• Must teach either math, science, special education,
foreign language, reading specialist, or field
designated by a state as high-need at at at aTitle I
school.
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Teach Grant
• If student does not fulfill commitment:
– The grant becomes like an unsubsidized loan
– Interest from the time grant was disbursed is
added to the amount to be paid back.
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Engineering, Science and
Technology Scholarship
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Merit-based scholarship/forgivable loan
March 1 application deadline
3.0 overall GPA
Enrolled or accepted for enrollment full-time in an
engineering, science or technology program (4-yr, 2yr or certificate)
• Maximum annual award amount is $3,000
• Application at www.cfwv.com
West Virginia Higher Education Policy Commission
Underwood-Smith
Teacher Scholarship
• Merit-based scholarship/forgivable loan
• March 1 application deadline
• Must be enrolled as a full-time student in a course
leading to a certification as a teacher at the pre-k,
elementary, middle or secondary level
• Must have a 3.25 GPA after completing 2 years of
course work (due to limited funding, high school
applicants are not eligible)
• Maximum annual award amount is $5,000
• Application at www.cfwv.com
West Virginia Higher Education Policy Commission
Federal Perkins Loan ***
• Eligible students (priority to those with exceptional
need)
• Annual and aggregate loan limits
– $5,500 annually for undergraduates
– $8,000 annually for graduates
– $27,500 aggregate for undergraduates
– $60,000 aggregate for graduates
• Interest rate: 5%
• Nine-month grace period
• Deferment and cancellation provisions available
***Subject to change
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Federal Stafford Loan
(Subsidized and Unsubsidized)
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Annual loan limits
Subsidized Stafford: must demonstrate “need”
Unsubsidized Stafford: “need” is not a consideration
Repayment does not begin until 6 months after student drops
below 6 credit hours.
• Loan Fee of 1.051%
• Interest Rate (variable-fixed) 3.86% until July 1, 2014 for
undergraduates
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Federal Stafford Loan
Grade Level
Subsidized
Unsubsidized
Total
Dependent
Student
Additional
Unsub
Total
Freshman
$3,500
$2,000
$5,500
$4,000
$9,500
Sophomore
$4,500
$2,000
$6,500
$4,000
$10,500
Junior
$5,500
$2,000
$7,500
$5,000
$12,500
Senior
$5,500
$2,000
$7,500
$5,000
$12,500
$20,500
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$20,500
Graduate
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Federal PLUS Loan
• Parent borrows on behalf of dependent undergrad
• Approval subject to credit check
• Loan limits
– Annual limit: cost of attendance less other aid
– Aggregate limit: none
• Interest rate variable-fixed at 6.41% until July 1, 2014
• Loan fee of 4.204%
• Repayment begins 60 days after final disbursement or 6 months
after student drop below half-time;
• Graduate Students are eligible to apply for a PLUS loan
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Institutional Aid
• Academic Scholarships
• Performance Scholarships
• Entitlement Scholarships
• Merit and Need-based Scholarships and
Grant
• Need-based Grants and Loans
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Private Aid
• Community Organizations
• Churches
• Employers and Labor Unions
• Professional Associations
• Corporations / Foundations
• Private Loans
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Additional Financial Resources
• Inquire about tuition installment plans
– Spreads tuition payments over several months
– Low sign-up fees, low to no interest charged
• Consider alternative loan programs
– Federal non-need based educational loans
– Private educational loans
– Home equity or line-of-credit loans
• Using Smart529 Plan
– WWW.SMART529.COM
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Additional Financial Resources
• Check into tax benefits for education
– American Opportunity Tax Credit
– Lifetime Learning Credit
– Educational IRAs
– Deduction for interest payments on educational
loans (consult your tax advisor)
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Consumer Protection
• As a general rule, never pay money to get
scholarships or apply for financial aid.
• You do not have to pay to complete the
FAFSA – do NOT use www.fafsa.com
• HEPC and colleges provide free financial aid
counseling and assistance
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Sources of General FA Information
• Websites
– www.cfwv.com
– Financial Aid Information Page (www.finaid.org)
– U.S. Department of Education
(www.studentaid.ed.gov)
– www.fastweb.com
– www.collegeboard.com
– www.gibill.va.gov
– www.givetowestvirginia.org
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Academic Common Market
• Selected programs not offered by colleges and
universities in West Virginia
– Students can receive in-state tuition at participating
institutions
– Go to www.sreb.org for more information
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CollegeCost.ed.gov
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StudentLoans.ed.gov
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Credit Cards
• Credit Card balance of $2,000; Interest rate of
18%;
• How long to pay off with minimum monthly
payment of interest plus 1% of principal?
– Assumes the person stops using the credit card.
15 Years
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How Much Does That Latté Really
Cost?
Suppose you buy a latté every weekday at a cost of
$3 each:
Daily cost - $3
Weekly cost - $15
Yearly cost - $780
4 Years in College - $3,120
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Identity Theft
• Report theft to 3 major credit reporting agencies;
• Notify bank and credit cards that you carry;
• Check online accounts;
• Contact local police to file criminal report;
• Contact Social Security Fraud Hotline;
• Notify Department of Motor Vehicles;
• File complaint with Federal Trade Commission
• Document and keep copies of all
West Virginia Higher Education Policy Commission
correspondence
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Identity Theft
• Experian – www.experian.com
1-888-397-3742
• Equifax – www.equifax.com
1-800-525-6285
• TransUnion – www.transunion.com
1-800-680-7289
• FTC – www.consumer.gov/idtheft
1-877-438-4338
• Social Security Fraud Hotline –
1-800-269-0271
West Virginia Higher Education Policy Commission
February 9, 2014
25 locations throughout the state
from 1pm-4pm
www.cfwv.com for more information
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Customer Service
ANY PROBLEMS:
Call customer service for Federal Financial Aid:
1-800-433-3243
Call customer service for State Financial Aid:
1-888-825-5707
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PROMISE Scholarship
• What do students have to do to apply?
– Fill out the PROMISE application and FAFSA
• What is the deadline?
– March 1
• Where do students go to complete the
PROMISE application or get more
information?
– www.cfwv.com/PROMISE
West Virginia Higher Education Policy Commission
Higher Education Grant
• What is the deadline?
– April 15
• What is the application?
– FAFSA
• What is the web site for the FAFSA?
– www.fafsa.gov
West Virginia Higher Education Policy Commission
Contact Information
Tana Pendell
Program Administrator
WV Higher Education Policy Commission
1018 Kanawha Boulevard, East
Charleston, West Virginia 25301
[email protected]
304-558-4418 or 888-825-5707
West Virginia Higher Education Policy Commission