What You Need to Know About Financial Aid 2017-2018

What You Need to Know About Financial Aid 2017-2018

Topics We Will Discuss Tonight What is financial aid? Cost of attendance (COA) Expected family contribution (EFC) Financial need Categories, types, and sources of financial aid Free Application for Federal Student Aid (FAFSA) Special circumstances

What is Financial Aid? Financial aid consists of funds (scholarships, grants, loans, work-study) provided to students and families to help pay for postsecondary educational expenses.

What is Cost of Attendance (COA)? COA includes: – – – – – Tuition & Fees Room & Board Books & Supplies Transportation Personal Expenses Direct v. Indirect Costs COA Varies widely from college to college

What is Expected Family Contribution (EFC)? Amount family can reasonably be expected to contribute Stays the same regardless of college Two components – Parent contribution – Student contribution Calculated using data from a federal application form and a federal formula

What is Financial Need? Cost of Attendance – Expected Family Contribution Financial Need

Need Varies Based on Cost

Types of Financial Aid Gift Aid Scholarships Grants Self-Help Aid Loans Employment

Sources of Financial Aid Federal government States Colleges and universities Private sources Civic organizations and churches Employers

What’s Out There for Students? Pell Grants – Based on EFC – Automatic with eligibility – Range from 291 to 5,815 for 2016-2017 FSEOG – Supplemental grant for the neediest of students – Based on availability TEACH Grant – For those planning to teach in high-need fields – Agreement to Serve

What’s Out There . . . (continued) Federal Work Study – Federal dollars paid in exchange for part-time employment in designated jobs – School comes first Federal Direct Loans – Subsidized – Unsubsidized – Freshman Annual Loan Limit 5500 – 2016-17 Interest Rate 3.76

What’s Out There . . . (continued) Federal Direct Loans (cont’d) – Parent PLUS Loans – 2016-17 Interest Rate 6.31% Private/Alternative Loans – Exhaust federal aid options first

What’s Out There (in New Jersey) HESAA – Higher Education Student Assistance Authority www.hesaa.org State Aid includes: NJ TAG – Tuition Aid Grant NJ EOF – Educational Opportunity Fund GUS – Governors Urban Scholarship Program NJ STARS Program – Community College Program

Now - How Do I GET It? FAFSA – FREE Application for Federal Student Aid www.fafsa.gov

FAFSA

Student Demographic Section Students must use their LEGAL name Social Security Number Why does it ask my gender? Selective service

Student Eligibility Section Citizenship – US Citizens will have an SSN tied to their legal name – Eligible Non-Citizens will have both an SSN & Alien Registration Number Grade Level – Not Graduate Students or Seniors Degree they are seeking – Associate, Bachelor before Master’s or PhD Foster Care

Student Eligibility Section (cont’d) Students can select up to 10 colleges to receive their FAFSA results Housing Questions – Helps to determine Cost of Attendance At Home with Parents On-Campus Off-Campus – You can change your mind

Dependent or Independent: That is the question If the answer to all is NO – they’re Dependent If the answer to ANY is YES – they’re Independent

Parent Information on the FAFSA Who is my parent when it comes to the FAFSA? – If parents are living together, regardless of marital status, include their combined financial information This includes same-sex partners – If parents are divorced or separated, include the financial information for the parent you lived with more during the past 12 months. If that parent is remarried, you must include your stepparent’s financial information. Grandparents, foster parents, and legal guardians are NOT considered parents unless they legally adopted you

What information do I need to have with me to complete the FAFSA? Taxes, Income information, benefit summaries Asset information – NOT 401(k) or IRA balances – NOT the value of your primary residence Untaxed income such as child support received

IRS Data Retrieval Tool Real-time request in the FAFSA to import IRS tax data – Important! Don’t change IRS transferred data – Reduces documents requested later IRS – – – DRT will not work for families who: File an amended tax return Do not have a Social Security Number Are married but file taxes separately

Frequent FAFSA Errors Social Security numbers Divorced/remarried parental information Income earned by parents/stepparents Untaxed income U.S. income taxes paid Household size Number of household members in college Real Estate and investment net worth What assets to include Make corrections online at www.fafsa.gov or on the paper Student Aid Report

FSA ID: Replaced the PIN The FSA ID (username and password) now replaces the PIN for students, parents and borrowers accessing FSA systems. – www.fsaid.ed.gov The FSA ID – Provides more secure access to user’s information – Links to PIN information during registration – Offers self–service capability (name change) Each FSA ID Requires a Different E-mail Address

What Happens After I File? A summary of your application is created for your review & sent to your selected schools electronically – Summary is called a Student Aid Report (SAR) – Students with FSA IDs may view SAR online at www.fafsa.gov If schools require further information or documentation, they will contact the student directly – Make sure students know how each school communicates with them – FERPA Watch for award notifications Many schools won’t begin awarding aid for 2017-18 until late January or February

Special Circumstances Cannot be documented using FAFSA – Change in employment status – Unusual medical expenses not covered by insurance – Change in parent marital status Send written explanation and documentation to financial aid office at each college College will review and request additional information if necessary Decisions are final and cannot be appealed to U.S. Department of Education

How Do Scholarships Work? Scholarships are considered “gift aid” similar to grants – Some have restrictions on what they will pay Direct costs only? Are there enrollment restrictions? – They come from multiple sources Institutions Organizations Employers The list is growing every day

Where Do I Find Them? Institutions – Is there an application? Are there MULTIPLE applications? – When do I apply? What is the deadline? – Is it based on Merit or Need? What do they need to determine eligibility? – – Does it require follow-up? Is it renewable? What are the requirements for renewal?

QUESTIONS?