Transcript Document

The Financial Aid Process
Paying for College
Marla Sweningson
Financial Aid Counselor
George Fox University
Topics We Will Discuss Tonight
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What is financial aid?
Categories, types and
sources of financial aid
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What is a FAFSA?
Expected Family
Contribution (EFC)
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Cost of attendance
Ask questions…
What is Financial Aid?
Funds provided from a source other than the
family to help pay for college expenses
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To provide access –
regardless of income
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To provide choice –
regardless of cost
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To recruit – desirable
students
Types of Financial Aid
Grants
gift aid
Scholarships
self-help
aid
Loans
Work-Study
Gift Aid: Scholarships
• Money that does not have to be paid back
• Awarded on the basis of merit, skill, or unique
characteristic
Gift Aid: Grants
• Money that does not have to be paid back
• Usually awarded on the basis of financial need
so FAFSA may be required
Self-help aid: Loans
Money that students and parents borrow to help pay
college expenses
Available from the government and private lenders
Repayment usually begins after education is finished
Only borrow what is really needed
Look at loans as an investment in the future
Self-help aid: Work-Study
Allows students to earn money to help pay for
educational costs
A completed FAFSA is required
Funds are limited and available only at participating
colleges/universities
Priority deadlines may apply
A student must earn these funds
Compensation is usually minimum wage
Sources of Financial Aid
Financial aid comes from a variety of sources.
federal
government
college
(institutional aid)
state
government
outside/
private
sources
Federal Government
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Largest source of financial aid
Aid awarded primarily on the basis of financial
need
Must apply each year using the Free Application
for Federal Student Aid (FAFSA)
Common Federal Aid Programs
Federal Pell Grant
Federal
Supplemental
Educational
Opportunity Grant
Federal Work-Study
Federal Perkins
Loan
Subsidized and
Unsubsidized
Stafford Loans
Federal Teach
Grant
PLUS Loans
U. S. Department of Education
Federal Loan Programs
Type
Rate
Amount
Grace
Perkins
Subsidized
5.0%
Fixed
Up to $5,500
per year
9
Months
Stafford
Subsidized
4.66%
Fixed
$3,500 firstyear
undergraduate
6
Months
Unsubsidized
4.66%
Fixed
$2,000 firstyear
undergraduate
6
Months
Credit-based
Unsubsidized
7.21%
Fixed
Depends on
remaining
financial need
Within first
60 days
(2014-2015)
PLUS (parent
loan)
Free Application for Federal Student Aid
(FAFSA) – www.fafsa.gov
WHEN
WHO
WHAT
WHY
• January 1 - First date to submit FAFSA
• Must be renewed every year
• Available to H.S. seniors, college students, returning
adults
• U.S. citizens and eligible non-citizens
• Available in English or Spanish
• A standard form that collects demographic and
financial information about the student and family
• Determines eligibility for federal and state financial aid
programs
• Used by colleges and universities to award
institutional aid
Completing the FAFSA
What information is needed?
o Social Security Number
o Records of income, such as income earned from work and business, child support
paid or received, and any other untaxed income. If available, refer to the W-2
Forms and the Federal Income Tax Return IRS 1040, 1040A, or 1040EZ.
o Information about assets, such as savings, certificates of deposit, stock options,
bonds, 529 plans and other college savings programs, and investment real estate,
business, and farm.
o Driver’s license number, if the student has one.
o Alien Registration Number, if not a U.S. citizen.
o FAFSA on the Web Worksheet – use as an optional “pre-application” checklist
Personal Identification Number (PIN)
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Serves as an electronic signature and
provides access to personal records on
Federal Student Aid systems
Go to www.pin.ed.gov
PIN is conditional until information is
verified with the Social Security
Administration (1-3 days)
Parents and students need separate
PINs to use the FAFSA on the Web
New login process to be implemented
Spring 2015
PIN Checklist
oSocial Security Number
oLast Name
oFirst Name
oMiddle Initial
oDate of Birth
oAddress
IRS Data Retrieval Tool
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Transfers student or parent tax data
directly from the IRS to the FAFSA
Available in early February
 2-3 weeks after filing taxes electronically
 8-11 weeks after filing taxes by paper
Acceptable method of providing tax data if
chosen for FAFSA verification
 Other method – obtain Tax Return
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Transcript from IRS (www.irs.gov)
Not available for:
 Amended tax returns
 Tax extensions
Avoid Common Errors
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Social Security Number – student and parents
Legal name – MUST match name on Social Security card
Divorced/married parental information
Income earned by parents/stepparents
U.S. income taxes paid
Household size
Number of household members in college
Selective Service registration – all males aged 18 - 26
Expected Family Contribution
EFC
Expected Family Contribution
What?
The amount of money a
student and family may
reasonably be expected
to contribute over the
course of an academic
year
Calculated using data from the FAFSA
and a pre-set federal formula
Why?
Used to determine a
student’s eligibility for
most federal and state
assistance
Where?
Shown on the Student
Aid Report (SAR), the
output document sent to
a student after the
FAFSA is processed
What are the costs?
Tuition & Fees
Direct
expenses
Room & Board
Direct/Indirect
expenses
Transportation
Books & Supplies
+
Miscellaneous Living Expenses
Cost of Attendance (COA)
Indirect
expenses
Financial Need
How much aid can a student receive?
Cost of
Attendance
(COA)
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Expected
Family
Contribution
(EFC)
=
Financial
Need
Three Examples
COA
EFC
(Cost of Attendance)
(Expected Family
Contribution)
College
A
$5,000
-
$3,000
=
$2,000
$25,000
-
$3,000
=
$22,000
$50,000
-
$3,000
=
$47,000
College
B
College
C
Financial
Need
State of Oregon
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Oregon Opportunity Grant
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Grant awarded on the basis of financial need
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Must apply each year using the FAFSA
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2014-15 award was $2,000 for full-time, fullyear attendance at any eligible Oregon
institution
Funds are limited so apply early!
Types of College/Institutional Aid
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Academic Scholarships
Other merit-based scholarships
(athletic, music, art, leadership, etc.)
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Endowed scholarships
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Need-based grants
Private Sources of Financial Aid
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Office of Student Access and Completion (OSAC) –
Feb 15 earlybird deadline – www.oregonstudentaid.gov
Local community organizations, businesses and
churches
Employers
Internet search
Small scholarships add up!
The Financial Aid Process
Complete
FAFSA
Receive and
review the
(Jan. 1 or after)
Student Aid
Report
Receive and
review
Respond
Award Offer
to college
Renew
FAFSA
every year
Complete
verification
process
(if selected)
Complete all
pending
processes
Evaluating Financial Aid Packages
Biggest is not always best – compare to cost of
attendance for each school
Renewable vs. non-renewable scholarships
Grants vs. loans
Terms and conditions of loans
Balance work with academic responsibilities
What is the out-of-pocket cost?
Helpful Hints
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Apply early if possible
File tax returns early – use the IRS Data Retrieval Tool to
download your tax information to the FAFSA
You may be asked to submit documentation to the financial
aid office for verification purposes
Pay attention to deadlines!
Supplemental applications or forms may be required
Avoid scholarship scams
Involve student in the process
Trusted Web Sites
fafsa.gov
studentaid.ed.gov
oregonstudentaid.gov
studentloans.gov
finaid.org
fafsa4caster.ed.gov
Questions?