Transcript Paying for College 2015-2016 FAFSA Detail (1415 screen shots) Jeff Olson Director of Financial Aid Bethel University November 2014

Paying for College
2015-2016
FAFSA Detail (1415 screen shots)
Jeff Olson
Director of Financial Aid
Bethel University
November 2014
Getting to College
• Three Big Ideas
• Where’s the money?
• How do I get the
money?
• Context Matters
• It depends
• FAFSA on the Web
Average Cost of Attendance
2014-2015
$50,000
Full-time, Full-Year, Minnesota Residents
$46,788
$45,000
$40,000
$35,000
$30,000
$27,031
$25,000
$25,352
$18,947
$20,000
$18,523
$15,000
$10,000
$5,000
$0
Private 4-Yr, Private forU of MN
non-profit: profit: off- Twin Cities:
on-campus
campus
on-campus
Room & Board
Books & Other expenses
State
State College
University (2 yr): off(4yr): on
campus
campus
Tuition & Fees Total
SOURCE (retrieved 10/31/2014): www.ohe.state.mn.us/mPg.cfm?pageID=94
1st Time, Full-Time Freshmen
Tuition & Fees, Avg. Institutional Gift Aid and
% Receiving IGA
$40,000
$35,000
Full-time, Full-Year, Minnesota Residents
93%
$30,000
$25,000
$20,000
$15,000
$10,000
57%
46%
28%
$5,000
5%
$0
Private 4- Private for- U of MN
State
State
Yr, non- profit: off- Twin Cities: University College (2
profit: on- campus on-campus (4yr): on
yr): offcampus
campus
campus
Tuition & Fees
Avg. Institutional Gift Aid
% of Freshmen receiving Institutional Gift Aid
SOURCE (retrieved 10/31/2014): www.ohe.state.mn.us/mPg.cfm?pageID=94
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
10
Paying for Post Secondary
Education
What is Financial Aid?
(Context Matters)
What is Financial Aid?
• Funds provided to students and families to help pay
for postsecondary educational expenses
• Grants
• Scholarships
• Loans
• Employment Opportunities
November 2009
Where’s the Money
to help me pay for
college?
2012-2013 MINNESOTA UNDERGRAD GRANTS & SCHOLARSHIPS
($1.52 BILLION)
100%
Private
• Private
▫ $66 million (4%)
• State
▫ $207.4 million (14%)
• Federal
▫ $520.8 million (34%)
• Colleges & Universities
▫ $728.8 million (48%)
90%
State
80%
70%
60%
Federal
50%
40%
30%
20%
College
10%
0%
Source: MN Office of Higher Education, Financial Aid Awarded, Fiscal Year 2013, Grants,
Loans and Earnings from Work-Study, July, 2014, www.ohe.state.mn.us/pdf/FAA-13.pdf.
November 2009
Where’s the Money to
reduce Cost of
Attendance, Cost of
Degree or Refund
Educational Expenses?
Other ways to reduce net price
- Tuition Reciprocity
• Allows MN residents to attend in neighboring
states at rate similar to what they would have paid
in MN (and vice versa)
• Apply directly to ND or SD college if recent MN
high school graduate
• Apply directly to colleges in Manitoba
• All other students must submit application to
Office of Higher Education in MN
• Apply on-line for 2015-2016 after March 1, 2015
at: www.getreadyforcollege.org
• Reduced rates for MN residents attending select
schools in Illinois, Indiana, Kansas, Michigan,
Missouri, Nebraska under Midwestern Student
Exchange Program (MSEP)
Paying for College, 2014-2015, page 36-38
25
Other ways to reduce net price
- Income Tax Options
• American Opportunity Tax Credit
• Formerly Hope Tax Credit
• Credit of up to $2,500 per eligible student
• Lifetime Learning Tax Credit
• Tuition and Fees Deduction
• Student Loan Interest Deduction
• Check with your tax preparer
Paying for College, 2014-2015, pages 39-41
November 2009
How do I get the money?
Need-Based
Financial Aid
How to Determine eligibility for NeedBased Financial Aid?
Free Application for Federal
Student Aid (FAFSA)
• Used by all colleges and
universities participating in
federal aid programs
www.fafsa.gov
CSS PROFILE
• Minnesota
▫ Carleton
▫ Gustavus
▫ Macalester
▫ St. Olaf
• Wisconsin
▫ Beloit
▫ Cardinal Stritch
▫ Edgewood
▫ Lawrence
▫ Mount Mary
• Iowa
▫ Grinnell
http://student.collegeboard.org/cssfinancial-aid-profile
FAFSA on the Web (FOTW)
www.fafsa.gov
• Available January
1st
• Can complete with
estimated tax figures
and make
corrections later
• Add additional
colleges
• Use PIN to sign
electronically
Frequent FAFSA Errors
•
•
•
•
•
•
Social Security Numbers
Divorced/remarried parental information
Income earned by parents/stepparents
U.S. income taxes paid
Household size
Number of household members in college
▫ Exclude Post-Secondary (PSEO) students
• Mother’s name (match name on Social Security
Card)
Dependent Student with
Parental Data
Definitions: Independent Student
1.
2.
3.
4.
5.
6.
7.
8.
9.
Born before January 1, 1992?
As of today, is student separated or married?
Enrolled in graduate program (e.g. MBA)?
Active Duty or veteran of U.S. military?
Have children or others that receive more than 50% of their support
from you?
At any time since you turned age 13, were both your parents
deceased, were you in foster care or were you a dependent or
ward of the court?
Are or were you an emancipated minor as determined by a court in
your state of legal residence?
Are you or were you in legal guardianship as determined by a court
in your state of legal residence?
Homeless?
Providing Parents’ Information on FAFSA
•
Single or Widowed. If biological/adoptive
parent is single or widowed, provide
information about surviving parent
•
If surviving parent remarried, include
stepparent’s information, even if stepparent did
not adopt student
Parents’ Info on FAFSA
Parents unmarried but living together
• Beginning with 2014-2015, Dependent student will
report information about both legal (biological or
adoptive) parents if the parents are living together,
regardless of the parents’ marital status or gender
•
•
Previously, student only reported information about one
parent (typically, custodial parent) if not married
New response added to parents’ marital status –
‘Unmarried and both parents living together’
Providing Parents’ Information on FAFSA
•
Others filling role of parents
•
Grandparents, foster parents, other
relatives and legal guardians are NOT
considered parents on the FAFSA
unless they legally adopted student
•
Do NOT substitute information about above
parties in parent section on FAFSA
Providing Parents’ Information on
FAFSA
•
•
Married. If biological/adoptive parents
married, report information for both parents
Divorced or Separated. If biological/
adoptive parents are divorced or
separated, provide information for parent:
•
•
Student lived with the most in last year
Or, if lived equal periods with each parent, parent
who provided the most financial support in last
year or most recent year support provided
•
•
If that parent remarried, include stepparent’s
information, even if stepparent did not adopt
student
Note: Unlike FAFSA, CSS Profile form will require
information for non-custodial parent
Same sex married couples
•
Consistent with the Supreme Court decision on the Defense of
Marriage Act (DOMA), same-sex couples must report their marital
status as married if they were legally married in a state or other
jurisdiction (foreign country) that permits same-sex marriage.
•
•
Students – FAFSA questions 16-17
Parents – FAFSA questions 59-60
FAFSA on the Web 2015-2016
IRS Data Retrieval
•
84% of families are eligible to use the IRS data retrieval process
•
IRS Data Retrieval Tutorial
•
•
www.youtube.com/watch?v=9ZNRdk3iXeM
Who CAN’T use IRS data retrieval:
•
Tax obligation not paid
•
Married couples who (a) filed separate tax returns, or if (b) one filed as
head of household
•
Student’s legal parents are unmarried and living together
•
Filed an amended return
•
Filed Puerto Rican or foreign tax return
•
Filed tax return too recently (3 weeks electronically, 8-10 weeks paper)
•
Applicants whose marital status changed since January 1 of the
processing year
These fields
are pre-filled
based on
FAFSA
responses
Look up address at
www.usps.com,
“Find a Zip Code”
option
IRS Data that will populate FAFSA
IRS Data Retrieval
Hand Enter on FAFSA
•
•
•
•
• Type of tax return
• Additional Financial Info
– Child support paid
– Work-Study earnings, etc.
• Untaxed Income
– Payments to tax deferred
savings (e.g. 401(k))
– Child Support Received
– Housing Allowance, etc.
• Asset questions
Adjusted Gross Income
Federal Tax Paid
# of Exemptions?
Untaxed Income
– IRA deductions
– Tax exempt interest
– Untaxed IRA distributions
– Untaxed pension
• Student’s and parents’ income
from work if:
– Marital status is other than
married
– If ‘married’, total income from
work from tax form will appear
on screen and will need to
separated by student or parent
for entry into FOTW fields
Assets
Asset Definitions: Investments
•
Do Not Include…
• Home
you live in
• Value
of life insurance
• Retirement
plans (pension, annuities, noneducation IRAs, Keogh plans, etc)
• Prepaid
tuition plans
Assets
Don’t
Always
Reduce
Gift Aid
Eligibility
Electronic Signature – PIN
(Personal Identification Number)
• Apply for PIN in real-time while
completing FOTW
▫ Student and Parent need PIN
• PIN can be used:
▫
▫
▫
▫
Sign FAFSA
Make FAFSA corrections
Sign federal loan promissory notes
Look up student’s student loan history
86
87
Definition of Need
Cost of attendance (COA)
– FAFSA Results, called Expected family
contribution (EFC)
= Needy (if >0)
(may be considered for need-based financial aid)
2014-2015 Estimated EFC, Federal Pelt Grant and MN State
Grant by Income, Household Size and College Type
Household Size
2
EFC
3
$0
5
$0
5
6
7
$20,000 Adjusted Gross Income
$0
$0
$0
$0
8
9
10
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1906
$1115
$324
$3518
$2707
$1916
$5457
$4417
$3518
$8071
$6676
$5470
$30,000 Adjusted Gross Income
EFC
$750
$0
$0
$0
$0
$0
$40,000 Adjusted Gross Income
EFC
$2344
$1674
$635
$0
$0
$0
$50,000 Adjusted Gross Income
EFC
$4002
$3284 $2289
$1357
$267
$0
$70,000 Adjusted Gross Income
EFC
$8709
$7683 $6030
$4733
$3496
$2697
$80,000 Adjusted Gross Income
EFC
$11640
$10936 $8809
$7073
$5444
$4406
$90,000 Adjusted Gross Income
EFC
$14564
$14336 $12210
$10219
$8053
$6661
$100,000 Adjusted Gross Income
EFC
$17495
$17566 $15610
$13620
$11371
$9681
SOURCE: MN Office of Higher Education, August 2014. Expected Family Contribution {EFC) based on 2014-2015 Federal Methodology for a dependent student using 2013
adjusted gross income, standard tax deductions and exemptions with no assets. Pell and State Grant awards are annual 9-month awards for a full-time dependent student
taking 15 credits for two semesters.
Questions?
• Contact Guidance
Counselor
• Contact financial aid
offices where your
students are applying
• Feel free to email
[email protected]
Presentation at http://cas.bethel.edu/financial-aid/forms/
Net Price Calculators
• Using certain inputs entered by student, will
calculate net price of college after gift aid is
subtracted from gross price
Estimated “Total Cost of Attendance”
Minus estimated “Gift Aid”
= Estimated Net Price
• Some schools add additional calculation
Estimated Direct Costs (tuition, fees, room & board)
Minus estimated “Grants & Scholarships”
= Estimated Net Direct Costs
94
Century College Net Price
Calculator
95
96
http://www.mnscu.edu/admissions/calculator/anokaramsey.html?_ga=1.167542270.1712099129.1414816163
Net Price Calculator
University of Minnesota, Twin Cities
99
Net Price Calculator
University of Minnesota, Twin Cities,
Continued
http://admissions.tc.umn.edu/costsaid/
100
Macalester College
(MN Dependent student, parents married, 4 in family, 1 in college,
$40,000 AGI, Reportable assets <$20,000)
Data retrieved 10.31.2014
Macalester College
(MN Dependent student, parents married, 4 in family, 1 in college,
$40,000 AGI, Reportable assets <$20,000)
Data retrieved 10.31.2014
Estimated Net Price
103
(MN Dependent student, parents married, 4 in family, 1 in college,
$30-40,000 AGI, Reportable assets <$20,000)
Data retrieved 10.31.2014
Anoka
Anoka
U of MN St. Cloud
Ramsey
Ramsey
Twin
State
CC (with
CC
Cities
Univ.
Macalester
College
(on-campus)
parents)
(off-campus)
(on-campus)
(on-campus)
2012-13
2012-13
2014-15
2012-13
2014-15
Tuition & Fees
$5,005
$5,005
$13,618
$7,514
$47,195
Room & Board
$0
$6,804
$8,554
$7,236
$10,496
Books & Supplies
$1,140
$1,140
$1,000
$1,200
$1,096
Other Costs
$7,574
$7,574
$2,194
$3,052
$1,056
$13,719
$20,523
$25,366
$19,002
$59,843
$5,851
$5,851
$13,780
$7,191
$50,018
$7,868
$14,672
$11,568
$11,811
$9,825
Year
Total Cost of
Attendance
Gift Aid
Estimated Net
Price
•
•
•
•
•
Anoka Ramsey: www.anokaramsey.edu/money/costattend.aspx
St. Cloud State: www.stcloudstate.edu/scsu4u/financing/
U of MN: http://admissions.tc.umn.edu/costsaid/
Bethel: http://cas.bethel.edu/financial-aid/before-apply/estimate/
Macalester: www.macalester.edu/financialaid/estimate//
Comparing Award Letters
• Calculate Costs you will pay
• Living on-campus?
• Living off-campus?
• What is included in meal plan? What extra food costs
should be budgeted for?
• Calculate total gift aid (grants and scholarships)
• Is the gift aid renewable for all four years?
• Subtract total gift aid from “costs you will pay” to
compare your net cost at each school per year
• How long do most students take to graduate?
Example of calculating net cost
School A School B
Tuition
$20,000
$25,000
Room & Board
$10,000
$10,000
$1,000
$1,000
$31,000
$36,000
Books & Supplies
Estimated Costs
Grants & Scholarships
Estimated Net Cost
($18,000) ($20,000)
$13,000
$16,000
Review
• Who should apply?
• Everyone who is interested in reducing net price of college
• What is financial aid?
• Grant, Scholarship, Loan, Work opportunity, Tax credit
• Where to apply?
•
•
•
•
www.fafsa.gov
Schools
Private organizations (www.finaid.org)
Community groups – thru High School Guidance Office
• When to apply?
• Annually, normally in spring
• Why look for private scholarships?
• Reduce amount you need to borrow
• How do schools account for unique circumstances?
• Appeal Process
MN Dream Act
• Requirements
• Attend a MN high school for at least 3 years
• Graduate from a MN high school or earn a GED in MN
• If male, complied with Selective Service registration requirements
• Eligible For
• In-state tuition rates at MnSCU and University of MN campuses
• State financial aid program
• Privately-funded scholarships administered by MnSCU or U of
MN campuses
www.ohe.state.mn.us/mndreamact
Paying for College, 2013-2014, page 34