Applying for Financial Aid 2007-2008

What Will You Learn Today?

Sources and types of financial aid Required financial aid application forms How to complete the Free Application for Federal Student Aid (FAFSA) Information about any additional aid in your state Answers to your individual questions 2

Sources of Financial Aid

Federal government State government Colleges and universities Private agencies, companies, foundations, and your parents’ employers

Gift Aid Work Loans

Types of Aid

– Grants or scholarships that do not need to be repaid – Money earned by the student as payment for a job on or off campus – Borrowed money to be paid back, usually with interest

2007-2008 State Aid Application Requirements

Complete and submit: – The Free Application for Federal Student Aid  Must be completed within first 30 days of the term of attendance to be eligible for Minnesota State Grant.

 This will vary by institution as each have different start dates.

Need-Based Grants

Minnesota Grant Residency requirements and application deadline apply Federal Pell Grants – $4,050 maximum per year Academic Competitiveness Grants (ACG) – $750 per year Federal Supplemental Educational Opportunity Grant (FSEOG) – $4,000 maximum per year 6

Additional Types of Financial Aid

 Self Help Aid Loans & Employment  Work-Study  Stafford Loans  Perkins Loans  PLUS Loans  SELF Loans  Alternative Loans

Types of FAFSAs FAFSA on the Web Paper FAFSA

FAFSA on the Web

Online application available at

www.fafsa.ed.gov

Processed more quickly than paper version Sophisticated on-line edits so that errors are less likely to be made You and at least one parent should get a federal PIN at

www.pin.ed.gov

Application Filing Tips

FAFSA on The Web

Gather necessary documents ahead of time Complete a FAFSA on the Web Worksheet available at

www.fafsa.ed.gov

Allow ample time to complete form for submission by deadline Check the FAFSA for accuracy prior to submission 10

Application Filing Tips

FAFSA on The Web

Save all work periodically Sign the application using your PIN Print out a copy of the FAFSA before submitting data Keep a copy of the Submission Confirmation Page 11

Application Filing Tips

Paper FAFSA

File early to meet all deadlines Check the FAFSA for completeness and accuracy Sign and date FAFSA Make a copy of the FAFSA before mailing Mail the FAFSA in the self-addressed envelope provided in the application booklet    Do not write any comments on the FAFSA Do not include letters, tax forms, or worksheets Use regular mail (not Registered or Certified) Obtain a U.S. Postal Service Certificate of Mailing (cost is only $0.95) 12

Student Aid Report (SAR)

Regardless of whether you submit a FAFSA on the Web or a paper FAFSA, a SAR will be sent to you – A link to an electronic SAR will be sent if you provide an e-mail address – A paper SAR will be mailed if you do not provide an e-mail address An electronic copy will be sent to each college or university you listed in Section 5

FAFSA Information & Tips

File as soon as possible after January 1, 2007 Use estimated 2006 income information if taxes are not complete at time of FAFSA submission You and at least one parent whose information is reported must complete and sign the FAFSA

Federal PIN

PIN (Personal Identification Number) serves as the electronic signature on ED documents Both you and at least one parent need a PIN May be used to:  Check on FAFSA status   Verify and correct FAFSA data Add additional schools to receive FAFSA data  Change home and e-mail addresses

Federal PIN If you provide an e-mail address, PIN will be e-mailed within hours Apply for your PIN TODAY at:

www.pin.ed.gov

Getting Ready

Before starting the FAFSA, gather: 

Your driver’s license



Alien Registration Card if you are not a U.S. citizen

Create a file for copies of all financial aid documents submitted.

Getting Ready

Before starting the FAFSA, gather:  You and your Parent Social Security cards 2006 W-2 Forms and other records of money earned 2006 federal income tax form (even if not completed) Records of untaxed income Current bank statements Business, farm and other real estate records Records of stocks, bonds and other investments

Create a file for copies of all financial aid documents submitted.

Getting Started

Read all application instructions If planning to submit the paper FAFSA:  Use pen with black ink  Print clearly in CAPITAL letters:

1 5 E L M S T

 Fill in ovals completely:  Do not leave blanks (unless directed by instructions)  Do not write comments or notes anywhere on form  Do not use correction fluid

FAFSA on the Web

2007-2008 FAFSA On the Web Worksheet may be used for the January 1, 2007, through June 30 th , 2008, aid application cycle.

Section 1 Section 2 Section 3 Section 4 Section 5

The

FOTW Worksheet

A Five-Step Process

– – – – – is about the student determines student dependency status collects parental information for dependent students collects student income information and information about the independent student’s household allows students to list up to six schools to receive information from the FAFSA

DO NOT MAIL THIS WORKSHEET

Section 1

(page 2) STUDENT INFORMATION

Your Social Security Number

1 2 3 4 5 6 7 8 9 List your name and Social Security number exactly as they appear on your Social Security card (both will be compared through a database match process)

Your Last Name

Jones

Your State of Legal Residence

CA

Residency relates to your permanent home state  if you are dependent, the state of legal residence is usually the state in which your custodial parents live State of legal residence is also used – in the need calculation to determine the appropriate allowance for state and other taxes paid by that state’s residents – to determine eligibility for state grants

Citizenship Status

a. If U.S. citizen, status will be confirmed by Social Security match b. If eligible non-citizen, status will be confirmed by Department of Homeland Security (DHS) match. This includes: • • • U.S. permanent residents with I-551 Conditional permanent residents with I-551C Eligible non-citizens with I-94 c. If neither a citizen or eligible noncitizen, you are ineligible for federal/state aid, but might still be eligible for state or institutional fund

Citizenship Status

c. If neither a citizen or eligible noncitizen, you are ineligible for federal/state aid, but might still be eligible for state or institutional fund

Note

: if you are undocumented or under-documented  start inquiring in elementary, middle or high school to see if it is possible for younger siblings to become a permanent resident   apply for all private scholarships for which you may be eligible check with colleges and universities to see if institutional  financial aid is available watch for changes in federal and state laws regarding the eligibility of undocumented or under-documented students For more information call: (213) 629-2512 For a list of scholarships, go to: www.maldef.org

Alien Registration Number

0 1 2 3 4 5 6 7 8

If eligible non-citizen, write in your eight- or nine-digit Alien Registration Number (ARN)  Precede an eight digit ARN with a zero  Copy of Permanent Registration Card might be requested by the financial aid office

Selective Service Registration

Male students who are 18 years of age or older must be registered with Selective Service to receive federal and state aid Answer “yes” only if you are male, aged 18-25, and have not yet registered. You may also register by going to: www.sss.gov

Degree Objective

Indicate your most immediate degree or certificate objective for 2007-2008

Grade Level

Indicate your grade level beginning with the 2007-2008 school year

Your Expected Enrollment Status at the Start of the 2007-08 Academic Year

Provide information about the college you are most likely to attend

If in doubt, report “Full-time”

Student Loans and Work-Study

If you are interested in either student loans or student employment, or both, mark the appropriate box Indicating interest does not obligate you to either borrow or to work, nor will it cause you to lose grants and scholarships Answering no interest may restrict some options for limited loans and work-study funds

First Bachelor’s Degree?

If you are a high school senior, the answer is

‘NO’

Parents’ Educational Level

Indicate highest level of schooling

completed

by your biological or adoptive parents (for state award purposes only) Use birth parents or adoptive parents stepparents or foster parents

not

This definition of parents is unique to these two questions

Drug Conviction Question DO NOT SKIP THIS QUESTION

You should:  Answer “

NO

” if: • • Conviction was for alcohol or tobacco Conviction was removed from record or occurred  before age 18 (unless tried as an adult) Answer “

YES

” if you have been convicted of possessing or selling illegal drugs while you were receiving federal financial aid

Section 2

(middle of page 3) STUDENT STATUS

Section 2 Determination of Student (Dependency) Status

Section 2 Determination of Student (Dependency) Status

If you answer “no” to all questions in this step, go to Section 3. For FAFSA filing purposes, you are considered a dependent student and are required to provide parental information If you answer “yes” to any question in this step, skip Section 3 and go to Section 4. You are considered an independent student for FAFSA filing purposes and are NOT required to provide parental information

Section 3

(page 4)

PARENTAL INFORMATION

Section 3 – Parental Information

See Page 4 of FAFSA on the Web Worksheet about who is considered a parent  Biological or adoptive parent(s)  Stepparent • Regardless of any prenuptial agreements

Section 3 – Parental Information

Do not provide information on:  Foster parents • If you are in foster care, you are automatically considered an independent student  Legal guardians or grandparents or other relatives • You must attempt to get biological parental information • Colleges may use Professional Judgment to allow you to file as an independent student

Section 3 – Parental Information

If the answer to any question is zero or the question does not apply, enter 0: $ , Report whole dollar figures: $

1 2

,

3 5 6

(no cents) Recommendation: If your parents have not filed their 2006 federal tax return, use W-2 forms and/or other employment records to estimate total income

0

Your Parents’

Marital Status as of Today

Month and Year Your Parents were Married, Separated, Divorced, or Widowed M M Y Y Y Y

Parents’ Household Federal Benefits

Indicate if you, your parents, or anyone in your parents’ household received benefits from any of the federal programs listed during 2006

Parent Tax Return Filing Status for 2006

Indicate your parents’ current tax filing status for 2006  Have your parents completed a 2006 IRS tax return?

  Which tax return did or will your parents file for 2006?

Even if your parent(s) did not file a 1040A or 1040EZ, read the instructions to see if they would have been eligible to do so

Parent 2006 Adjusted Gross Income

45 , 250 If your parents have not yet filed their 2006 federal tax return information, it is fine to these questions

estimate

information for If your parents have completed their 2006 federal tax return, use 2006 tax return information to complete this item. Pay attention to specific line-items on 2006 Federal tax return, if completed

Reminder:

If the answer is zero or the question does not apply, enter 0

Money Earned from Work by Parent(s)

45 , 250 40 , 500 13 , 200 This figure is often different from the adjusted gross income figure on the parent tax return. Use W-2 forms and other records to list all income in 2006

earned from work

(including income earned from self-employment)

Parent E-Mail Address [email protected]

Fill in your parents’ e-mail address that will be valid at least until you start college

Father’s and Mother’s SSN, Last Name, and Dates of Birth 2 3 4 5 6 7 8 9 0 JONES 0 5 0 3 1 9 5 9 0 0 0 0 0 0 0 0 0 PARKER 0 7 1 9 1 9 6 0 NOTE:

Provide this information for your parent(s) who complete Section 3 of the worksheet

Parents’ State of Legal Residence CA M M Y Y Y Y

Indicate the two-digit state code for your parents’ permanent address If the answer to the previous question is “no,” enter the month and year residency began for your parent who has been a legal resident of that state the longest

Parents’ Income Tax Paid

2 , 130 What was the amount your parents paid in income tax for 2006?

 Use U.S. Income tax paid (or to be paid) • not the amount withheld from your parents’ paychecks

Parents’ Tax Exemptions

05 Enter your parents’ exemptions for 2006  Exemptions can be found on their IRS tax return  Be sure to include all persons being claimed on your parents’ 2006 federal tax return regardless of whether they are included in your parents’ household size question

Parents’

Household Information

05 Include in your parents’ household:  yourself   your parent(s) your parents’ other dependent children, if your parents provide more than half their support or the children could answer “no” to every  question in Section 2, regardless of where they live other people, if they now live with your parents, and if your parents provide more than half their support, and will continue to provide that level of support from 7/1/07 through 6/30/08

Family Members Attending College

2 Always include yourself even if you will attend college less than half-time in 2007-2008 Include other household members only if they will attend at least half time in 2007-2008 in a program that leads to a college degree or certificate Never include your parents

NOTE:

Some financial aid offices will require proof that other family members are attending college

Worksheet A: Untaxed Income & Benefits

1,250 1,250 To answer, your parents should carefully complete the right column of Worksheet A (Page 8 of the worksheet)

NOTE:

You should keep a copy of the worksheet because the financial aid office may request a copy

Worksheet B: Untaxed Income & Benefits

1,700 6,200 500 8 , 400

Worksheet C: Exclusions to Income

0 Remember, your

parents’

totals from Worksheets A, B, and C should be entered in

Section 3

of the FOTW Worksheet.

Your

in

Section 4

totals should be entered of the FOTW Worksheet.

Parent Assets

List the net value of your parents’ assets as of the day you complete the FAFSA If net worth is one million dollars or more, enter If net worth is zero, enter 0 $

9 9 9

$ ,

9 9 9

,

0

NOTE: Some financial aid offices may request supporting documentation for the answers to these questions

Parent Assets

2 , 155 Report the current balance of your parents’ cash, checking and/or savings accounts as of the day you complete the FAFSA

Parent Assets

7 , 900 0

Net Worth

means current value minus debt

Investments

• include: real estate (other than parents’ home) • • • trust funds UGMA and UTMA accounts money market and mutual funds • • certificates of deposit stocks and stock options • • • bonds and other securities Coverdell IRAs 529 plans owned by your parents • installment and land sale contracts • commodities, etc.

Parent Assets

7 , 900 0 Business/Investment Farm includes: – market value of land, buildings, machinery, equipment, and inventory. Debt means only those debts for which the business was used as collateral NOTE: DO NOT include the home you live in, the value of life insurance and parent retirement plans (pension funds, annuities, non-education IRAs, Keogh plans, etc), or the value of a family owned and controlled small business with 100 or fewer full-time or full-time equivalent employees

Section 4

(page 6) STUDENT FINANCES

Section 4 – Student Finances

These questions are identical to the parent financial questions we covered in the Section 3 In Section 4:

–

Report your 2006 income

–

If you are single, ignore references to “spouse”

–

If you are married, report spouse’s income and assets

Section 4 – Student Finances (Independent Students)

Answer this question only if you answered “yes” to at least one question in Section 2 – Student Status

Section 4 – Student Finances (Independent Students)

Include in your household: you (and your spouse if married) your children, if you will provide more than half their support other people, if they now live with you and you provide more than half their support, and will continue to provide that level of support from 7/1/07 through 6/30/08

Section 4 – Student Finances (Independent Students)

Count yourself even if you will attend college less that half-time in 2007 2008 Include others only if they will attend at least half-time in 2007-2008 in a program that leads to a college degree or certificate

Section 4 – Independent Students’ Household Federal Benefits

Indicate if you, your spouse, or anyone in your household received benefits from any of the federal programs listed during 2006

Section 4

–

Student Veterans’ Education Benefits

0 0 0 If you are eligible for veterans’ education benefits, report monthly amount expected. (If not applicable, answer zero) Number of months should equal number of months attending school. (If not applicable, answer zero) For more information, contact the VA at:

(800) 827-1000

or

www.va.gov

Section 5

(bottom of page 7) SCHOOLS TO RECEIVE INFORMATION

Section 5: School Information

00117 COMMUNITY COLLEGE ABC 023456 034567

Section 5: School Information

List the school(s) to which you are applying For faster and more accurate processing, write in both the Title IV school code and the school name – Minnesota State, Mankato’s federal school code is

002360

Select the housing plan that best describes the type of housing you expect to have while attending each listed school

What Happens Next?

You and the colleges you listed receive Student Aid Report (SAR) from federal processor



Review SAR for important information and accuracy of data



Colleges match admission records with financial aid applications and determine aid eligibility



Colleges mail notices of financial aid eligibility to admitted students who have completed all required financial aid forms

73

Special Circumstances

Contact Student Financial Services if there is:  Loss or reduction in your or your parents income or assets   Death or serious illness Unusual medical or dental expenses not covered by insurance  Reduction in child support, Social Security benefits, or other untaxed benefit   Financial responsibility for elderly grandparents Any other unusual circumstances that affect your family’s ability to contribute to higher education 74

Summary of the Financial Aid Process

Submit all required forms, including the FAFSA, by the college’s priority application date.

MSU priority date is March 15 th .

Keep a copy of all forms submitted Review the Student Aid Report (SAR) Watch for financial aid award notifications or requests for additional information Be sure to apply for financial aid this year and every year as soon as possible after January 1 to receive the best financial aid award possible