Transcript Slide 1

COUNSELOR TRAINING FOR COLLEGE AND CAREER
PLANNING
FINANCIAL AID OVERVIEW
KENTUCKY ASSOCIATION OF STUDENT
FINANCIAL AID ADMINISTRATORS
Our mission is to pledge support to professional
activities and communications in all areas concerned
with the administration of student educational financing
programs
• Upcoming Events
• College Goal Kentucky, various dates/sites statewide
COLLEGE GOAL KENTUCKY
Various Sites throughout
the state.
https://www.facebook.com/KASFAACGK
www.kasfaa.com/collegegoalky
• Postcards with Financial Aid timeline (Kim Dolan
can provide more as needed
[email protected])
TYPES OF FINANCIAL AID
• Scholarships
• Grants
• Work-Study
• Loans
SOURCES OF FINANCIAL AID
• Federal government
• State government
• Institutional
• Private sources
FEDERAL AID PROGRAMS
• Aid awarded primarily on the basis of financial
need
• Students must apply every year using the Free
Application for Federal Student Aid (FAFSA)
FEDERAL PELL GRANT
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Need-based grant
Available to undergraduate students who have
not received a bachelor’s or first professional
degree (exception for teacher certification
students)
Maximum award usage is 600% or equivalent of 6
years
TEACH GRANT
• Teacher Education Assistance for College
and Higher Education Grant
• For undergraduate, post-baccalaureate, or graduate
students who are/will be taking course work necessary to
become elementary or secondary teachers
• Must attend a participating college and meet certain
academic achievement requirements
• Must agree to serve, for a minimum of four years (within
eight years of completing academic program), as a fulltime teacher in a high-need field in a school that serves
low-income students or TEACH Grant reverts to student loan
• Not all schools participate in this program
CAMPUS-BASED AID
Federal Supplemental Educational Opportunity Grant
(SEOG)
• Federal Work-Study
• Federal Perkins Loan
• Awarded by schools on a “first come, first served” basis within
guidelines for each program
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FEDERAL WORK-STUDY
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Undergraduate and graduate students
Need-based, part-time employment
No minimum or maximum award
May look at willingness to work
Must pay at least federal minimum wage
The program encourages community service
work and work related to the recipient's course
of study.
FEDERAL DIRECT STAFFORD
STUDENT LOANS
• Loan application is the FAFSA
• Student borrows from and repays to federal
government
• School facilitates loan process
• Annual and aggregate borrowing limits
• Amounts increase for subsequent years of study,
with higher amounts for graduate students.
• In-school deferment
• Six month post-enrollment grace period
• Low, fixed interest rates
• Various repayment options available to students
entering repayment
FEDERAL DIRECT PLUS LOANS
• Parents of dependent undergraduate students may
apply for the Parent PLUS loan
• Graduate or professional students may apply for the
Graduate PLUS loan
• PLUS loans require approval based on credit.
VETERANS BENEFITS
POST-9/11 GI BILL
http://www.gibill.va.gov
1-888-GIBILL-1
(1-888-442-4551)
VETERANS BENEFITS
POST-9/11 GI BILL
 Individuals who serve at least 90 days of aggregate
service after 9/10/01 are eligible at varying
percentages for length of service.
 Benefits may include:
 Tuition and fees (paid directly to school)
 Monthly housing allowance (paid to student)
 Books and supplies stipend (paid to student)
 Benefits are payable only for approved training and
education programs offered by a college or
university.
VETERANS BENEFITS
POST-9/11 GI BILL -TRANSFERABILITY
 Allows career service members (6 years + of service)
the opportunity to share their education benefits with
immediate family.
 Immediate family includes:
- The individual’s spouse
- The individual’s children (under 26 years
of age)
- Any combination of spouse and children
YELLOW RIBBON PROGRAM
Allows colleges and universities to enter a voluntarily
agreement with VA to fund tuition expenses that exceed
the highest public in-state undergraduate rate for
individuals eligible for the GI Bill 100% payment tier.
http://www.gibill.va.gov/benefits/post_911_gibill/yellow_ribbon_program.html
STATE AID PROGRAMS
• Residency requirements for eligibility
• Merit and need-based aid types
• May use information from the FAFSA to determine
eligibility
• Grant program eligibility determined upon when
the FAFSA is completed
KENTUCKY AID PROGRAMS
• Administered by the Kentucky
Higher Education Assistance
Authority (KHEAA)
• Information and applications for
Kentucky grant and scholarship
programs at www.kheaa.com
KHEAA PROGRAMS
Below are a few popular state programs most relevant
to high school students and parents:
• College Access Program (CAP) Grant
• Kentucky Tuition Grant (KTG)
• Kentucky Educational Excellence Scholarship (KEES)
• Go Higher Grant
• Kentucky Education Savings Plan Trust
• Kentucky's Affordable Prepaid Tuition
INSTITUTIONAL AID
• Differs from one college to another
• Contact colleges directly when
applying
• Apply early
• Submit polished applications
• Respond promptly to offers
PRIVATE SOURCES
• Foundations and professional organizations in the
student’s field of study
• Local businesses and employers
• Community organizations and civic groups
• Religious groups
• Ethnicity-based groups
FREE ONLINE SCHOLARSHIP SEARCH
ENGINES
• www.kheaa.com
• www.finaid.org
• www.collegeboard.com
• www.fastweb.com
• www.studentaid.ed.gov
FILING THE FAFSA
FAFSA ON THE WEB
• Website: www.fafsa.gov
• 2014-15 FAFSA on the Web
available on January 1,
2014
FAFSA DEMO FOR COUNSELORS
• Allows counselors to increase their own
understanding of FAFSA on the Web and to
show it to students and parents before they
apply
http://fafsademo.test.ed.gov
• When you visit the site, you will be
prompted for a user name and password
• User name: eddemo
• Password: fafsatest
APPLICATION PROCESS
• Student completes FAFSA
• FAFSA results are transmitted to the school(s)
listed on the FAFSA
• School uses the EFC amount to determine
eligibility for financial aid
• School communicates eligibility to the student
through an award “package”
EXPECTED FAMILY
CONTRIBUTION (EFC)
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Amount a family can reasonably be
expected to contribute to college
EFC is calculated using data provided
on the FAFSA
EFC remains the same from college to
college
FAFSA FILING DEADLINES
• Encourage families to file early:
• Families encouraged to file as soon as possible after
January 1st
• Some types of aid are “first come, first served” and funding
is limited
• Likely to receive more timely award information from
schools for students to make college decisions/plans
DOCUMENTS NEEDED TO
COMPLETE THE FAFSA
The following information and documents are
necessary for completing the FAFSA:
• Social Security number
• Parents’ Social Security number
• Driver’s license number
• Alien Registration Number if not a U.S.
citizen
DOCUMENTS NEEDED TO
COMPLETE THE FAFSA
The following information and documents are
necessary for completing the FAFSA:
• Federal tax information or tax returns, including IRS W-2
information, for the year prior to the academic year for
which you are applying
• Income tax information for yourself and spouse, if you
are married, and for your parents if you must provide
parent information
• Estimated tax information if tax return not yet completed
• Records of untaxed income, such as child support and
interest income
USING ESTIMATED TAX
INFORMATION ON THE FAFSA
• Students and/or parents who have not
completed their 2014 tax returns may submit a
FAFSA using estimates
• Filing FAFSA with estimated numbers allows
students to file early to meet priority deadlines
• Resources to assist with estimating tax data
may be obtained through the IRS website
www.irs.gov/formspubs/index.html
• After tax returns are completed, income or tax
information should be submitted on the FAFSA
IRS DATA RETRIEVAL
• Families are STRONGLY encouraged to use IRS
Data Retrieval process to import tax
information directly from the IRS database into
the FAFSA
• Prompts in the tax information section of the
FAFSA on the Web will guide student/parent
through IRS data retrieval option
IRS DATA RETRIEVAL
If using estimated tax information
to file the FAFSA early, as
recommended, later corrections
to submit completed tax
information should be made
using IRS data retrieval
FEDERAL STUDENT AID PIN
• Students and parents of dependent students
must have PIN to complete FAFSA on the
Web
• Students and parents may apply for a PIN
early and do not have to wait until the
FAFSA is available January 1, 2014
DEPENDENCY STATUS:
CRITERIA FOR INDEPENDENT
STUDENTS
• At least 24 years of age on or before December 31st of the award
year
• Graduate or professional student
• Married
• Has children or dependents other than a spouse for whom the
student provides more than half support
• Serving on active duty in the U.S. Armed Forces for other than
training purposes
• Veteran of the U.S. Armed Forces
• Orphan (i.e. both parents are deceased) or is a ward/dependent
of the court, or was a ward/dependent of the court until age 18
• Emancipated minors or in legal guardianship as determined by a
court of competent jurisdiction in the applicant's state of legal
residence
• Unaccompanied youth who is homeless or at risk of homelessness
and is self-supporting
DEPENDENCY OVERRIDE FOR
SPECIAL CIRCUMSTANCES
 If the student has no contact with a parent and is
unable to provide parental data on the FAFSA, a
review of special circumstance may be done
 Examples of special circumstances for professional
judgment may include, but are not limited to:
 Parent(s) are incarcerated
 Whereabouts of parents unknown
 Student left home due to an abusive situation
 Financial aid office requires documentation for such
situation
DEPENDENCY OVERRIDE FOR
SPECIAL CIRCUMSTANCES
FAFSA on the Web filers: Answer
questions regarding special
circumstance and remaining student
questions and sign and submit for
processing
Students should contact schools listed on
FAFSA for further assistance to complete
their FAFSA
DEFINITION OF “PARENT” FOR
PARENTAL DATA ON FAFSA
• If parents are living and in same household, answer the
questions about both whether married or not.
• If parent is widowed or single, answer questions about
that parent. If widowed parent is remarried as of the day
you sign the FAFSA, answer questions about that parent
and the person whom the parent married (stepparent).
DEFINITION OF “PARENT” FOR
PARENTAL DATA ON FAFSA
• If parents are divorced or separated, answer the
questions about the parent with whom student lived
more during the past 12 months.
• If student lived exactly six months with each parent, give
answers about the parent who provided more financial
support during the past 12 months OR during the most
recent year that student received support from a parent.
• If this parent is remarried, answer the questions on the
FAFSA about that parent and the person whom the
parent married (stepparent).
DEFINITION OF “PARENT” FOR
PARENTAL DATA ON FAFSA
• The following people are not parents and
should not provide FAFSA data except in cases
of adoption:
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grandparents
foster parents
legal guardians
older brothers or sisters
uncles or aunts
SPECIAL CIRCUMSTANCES
Students should contact the school with special
circumstances such as:
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Dislocated Worker
Change in employment status
Medical expenses not covered by insurance
Change in parent marital status
Unusual dependent care expenses
Student cannot obtain parent information
The school may use professional judgment to
review extenuating circumstances for possible
adjustments to FAFSA data.
FAFSA PROCESSING RESULTS
• Student will receive a Student Aid Report (SAR)
• Student should review and make any
necessary changes
VERIFICATION
Verification is a process in which schools
must collect information to verify
accuracy of data entered on the FAFSA
Reasons for verification:
• Chosen randomly
• FAFSA contains estimated information
• Data provided on the FAFSA is
inconsistent
VERIFICATION
For verification of information on FAFSA,
student/parent may be asked to provide
the school with :
• 2014 Federal tax return transcript
• Transcript may be obtained by contacting IRS
online at www.irs.gov
VERIFICATION
Student/parents may also be asked to
provide documentation which may
include, but is not limited to:
• Copies of W-2 forms
• Verification worksheet provided by school
• Record of untaxed income such as child
support, untaxed pensions, etc.
• Record of child support paid, if reported on
FAFSA
VERIFICATION
HELPFUL HINT:
To limit documentation required for verification
purposes, families are encouraged to utilize the
IRS Data Retrieval Process when completing or
correcting tax information on the FAFSA.
VERIFICATION
• Eligibility for aid cannot be determined
by the school until the verification process
is completed
• Students should provide requested
verification documentation promptly to
ensure timely processing for aid
determination purposes
FREQUENT FAFSA ERRORS
• Social Security Numbers incorrect
• Divorced/remarried parental information
improperly reported
• Income earned by stepparent not included
• Untaxed income not included
• U.S. income taxes paid misreported
• Household size discrepancies
• Number of household members in college
• Asset information unreported
• Wrong “degree seeking” type
• Parent/student has not signed with PIN
FAFSA MYTHS
“I won’t file the FAFSA since my family
makes too much money so I won’t
qualify for aid.”
• Reality:
• No income cut-off to qualify for federal student aid
• Many factors besides income—from the size of your
family to the age of your older parent—are taken into
account.
• FAFSA may also be the application for funds from your
state, and possibly from your school as well
• Don’t assume! File the FAFSA and find out.
FAFSA MYTHS
“Only students with good grades and high ACT
scores get financial aid.”
• Reality:
• Most federal student aid programs do not
take a student’s grades into consideration
• As long as a student maintains satisfactory
academic progress, federal student aid can
help a student with an average academic
record
FAFSA MYTHS
“You have to be a minority to get financial aid.”
• Reality:
• Funds from federal student aid programs are awarded
on the basis of financial need, not on the basis of
race.
• The FAFSA doesn’t even collect this kind of information
about an applicant.
FAFSA MYTHS
“The FAFSA is too hard to fill out.”
• Reality:
• Detailed instructions provided for every
question, and the form walks you through
step by step
• Help available through online real-time chat
and by phone
• Assistance available through school financial
aid offices
• Free advice and Free to file!
NET PRICE CALCULATOR
• All colleges are required to provide
online net price calculators
• Benefits of net price calculators:
• Provide estimate of college costs
• Provide estimated financial aid packages
• Students can compare estimated financial
aid and expenses at multiple schools
FAFSA4CASTER
HTTPS://FAFSA.ED.GOV/FAFSA/APP/F4CFORM?EXECUTI
ON=E1S1
• Early start on the financial aid process
• Provides early estimate of eligibility for federal aid
based on current laws and student information
• Helps families begin the financial planning process
for college
• Reduce time to file FAFSA as information will prepopulate from FAFSA4caster when filing FAFSA on
the Web
FEDERAL STUDENT AID CONTACT INFO
Federal Student Aid Information Center
(FSAIC)
• Toll-free number for questions about federal student
aid 1-800-4-FED-AID (1-800-433-3243)
• TTY (for the hearing impaired) 1-800-730-8913
• E-mail: [email protected]
FEDERAL RESOURCE FOR STUDENTS
http://StudentAid.gov/
• Student Aid on the Web—planning for college, paying for
college, and repaying student loans
• Funding Your Education: The Guild to Federal Student Aid
• How to Qualify for Financial Aid
• Types of Financial Aid
• How to Apply for Financial aid
• Looking for Student Aid Without Getting Scammed
 Fact sheets on various topics
FSA FOR COUNSELORS—RESOURCES TO
HELP YOU HELP YOUR
STUDENTS
www.fsa4counselors.ed.gov
• Online training and information about live
training
• Financial Aid Night PowerPoint presentation
and script
www.fsapubs.gov/
• Federal Student Aid Publications Ordering
System