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Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: [email protected]

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Page 1: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Applying for Financial Aid2014-2015 Academic Year

Elaine SolingaFinancial Aid Services

Telephone: 860-439-2058E-Mail: [email protected]

Page 2: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

What you will learn:

• What financial aid is

• Sources of financial aid

• When and how to apply

• How to pay the bill

Page 3: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Helpful Advice

• Learn the college’s financial aid application requirements and deadline date.

• Use the Net Price Calculator available on each college’s web site.

Page 4: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu
Page 5: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

More Advice www.finaid.com

Page 6: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Studentaid.gov

Page 7: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

How Much Financial Aid Will Be Offered?

• Dependent on a family’s ability to pay • Dependent on the funding available

from the federal and state governments and the college.

• Were the financial aid applications and supporting documentation submitted by the deadline date?

Page 8: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Definition of Financial NeedCost of Attendance

Expected family contribution (EFC)

Other financial assistance

Financial need

LESS

LESS

EQUALS

Page 9: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Comparison of Need by Cost(Assumes full-time enrollment)

4 Year Private 4 Year Public 2 Year Public

Cost of Education $60,000 $25,000 $ 7,000

Expected Family Contribution (EFC) $10,000 $10,000 $10,000

Need $50,000 $15,000 0

Page 10: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Meeting the Full Need and Gapping

College A B

Cost of Education $60,000 $60,000

Expected Family Contribution (EFC)

$ 10,000 $ 10,000

Need $50,000 $50,000

Aid Awarded $50,000 $35,000

Unmet Need 0 $15,000

Page 11: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Cost of AttendanceTuition and FeesRoom and BoardBooks and SuppliesTransportationMiscellaneous and Personal Expenses

(purchase of a computer)

Page 12: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Family Contribution Components

Parent(s)’ 2013 income Student’s 2013 income Value of parent’s assets Value of student’s assets Number of household members Number of dependents attending college at least

half-time

Page 13: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Eligibility Assessed Using Federal Methodology

Based on information reported on the FAFSA (Free Application for Federal Student Aid, 2014-2015)

Formula determined by Congress that is used to determine eligibility for federal and most state funds

No information required from the non-custodial parentCustodial parent and stepparent financial information is

included If student’s parents live together, regardless of marital

status or gender, financial information must be reported.

Home value and debt and value of retirement accounts are excluded

Parent contribution divided by the # of dependents attending college at least half-time

Page 14: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Eligibility Assessed Using Institutional Methodology

Based on information provided on the CSS Profile or a custom institutional applicationUsed by schools to award their own fundsHome equity might be added inInformation from the non-custodial parent is requiredTax losses may be added backDepreciation associated with a business or investment property may be added backParent contribution might not be divided equally No allowance for sibling enrolled in graduate schoolMinimum student contribution

Page 15: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Student Eligibility Requirements

• U.S. Citizen or eligible non-citizen• If male and age 18 must register for Selective

Service;• Have a valid social security number;• Must be enrolled as a regular student in an

eligible degree or certificate program;• Must have a high school diploma or an

equivalent;• While enrolled in college, must make

satisfactory academic progress.• Must have resolved any drug conviction issue.

Page 16: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Forms RequiredCollege A B C State of CT

GOV Sch.

FAFSA X X X XCSS Profile X XCollege Form

X

Tax Returns & W2 Statements

X

Non-Custodial Parent’s Statement

X

Due Date 03/15 02/01 03/01 02/15

Page 17: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

FAFSA on the Web Homepagewww.fafsa.gov

Page 18: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

FAFSAFree Application for Federal Student Aid,

2014-2015

• Can’t file prior to 01/01/2014• Required by all schools• Used to determine eligibility for

federal/state need based aid• Student and one parent should apply

for a pin # now to sign the FAFSA electronically

Page 19: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Federal Student Aid Personal Identification Number (FSA

PIN)• Website: www.pin.ed.gov

• Sign FAFSA electronically

• Not required, but speeds processing

• May be used by students and parents throughout aid process, including subsequent school years

Page 20: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Helpful Tips When Completing the FAFSA

Print out the FAFSA on the Web Worksheet (available January 1, 2014)

Have your 2013 federal tax return and W2 statements in front of you or prepare a draft 2013 federal tax return.

You can also use your 2012 federal tax return if income will be similar to 2013.

It is okay to estimate in order to meet early deadline dates required by colleges.

Page 21: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Helpful Tips When Completing the FAFSA

• Must report as income:

–Adjusted Gross Income as listed on your tax return–Wages as listed on your W2 or business income applicable to each parent.–Taxes paid according to the tax table, not what was withheld.

Page 22: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Helpful Tips When Completing the FAFSA

• Assets not to report:– Value of your home– Principal value of retirement plans

(pension funds, annuities, non-education IRAS, Keogh plans)

Page 23: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu
Page 24: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Review of Tax Return

Page 25: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu
Page 26: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Review of Tax Return

Page 27: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Helpful Tips When Completing the FAFSA

• When reporting assets, report the value as of the date the FAFSA is completed.Cash, savings, checkingInvestment property (market value less debt)Stocks, bonds, money market fundsCD’s, mutual funds, stock options, trustsCoverdell savings accounts, college savings

plansBusiness (market value less debt)Investment farm value (market value less

debt)

Page 28: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

What is the Federal Definition of a Parent?

• If parents are divorced or separated, answer the questions about the parent the student lived with more during the past 12 months.

• If the student did not live with one parent more than the other, give answers about the parent who provided more financial support during the past 12 months.

• If parents live together, regardless of the marital status or gender, financial information must be reported for both parents

Page 29: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

What is the Federal Definition of a Parent?

• If the student’s parent has remarried, information about the stepparent must be included.

• If the student’s parent is widowed or single, answer the questions about that parent.

• The following people are not the student’s parents unless they have adopted the student: grandparents, foster parents, legal guardians, older brothers or sisters, and uncles or aunts.

Page 30: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

What if parent information is not available?

– Student has no contact with the parent(s) and does not know where they are (and the student has not been adopted by someone else); or

– Student has left home due to an abusive situation.

• Must gather third party documentation to verify your living situation: attorney, court officer, social worker

• Submit that third party documentation to the college that you will most likely attend.

Page 31: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

How to Sign the FAFSA

Page 32: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Making Corrections to the FAFSA

• Corrections can be made after the FAFSA has been submitted and processed.

• Can add a college• If you have submitted your IRS tax

return, you can provide a PIN to link the IRS data to the FAFSA. Highly recommended!!!!!

Page 33: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

FAFSA Processing Results

• CPS notifies student of FAFSA processing results by:

– Email notification containing a direct link to student’s online SAR if student’s email was provided on paper or electronic FAFSA

• Student with PIN may view SAR online at www.fafsa.gov

Page 34: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

FAFSA Processing Results

• Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA is submitted

• College reviews ISIR– May request additional documentation

Page 35: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

IRS Data Retrieval Tool

• Available early February 2014 for 2014–15 processing cycle

• Participation is voluntary

• Reduces documents requested by financial aid office

Page 36: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

IRS Data Retrieval Tool

• While completing FOTW, applicant may submit real-time request to IRS for tax data

• IRS will authenticate taxpayer’s identity

• If match found, IRS sends real-time results to applicant in new browser window

• Applicant chooses whether or not to transfer data to FOTW

Page 37: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

IRS Data Retrieval Tool• Some will be unable to use IRS DRT

• Examples include:

– Filed an amended tax return

– No SSN was entered

– Student or parent married but filed separately

Page 38: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

IRS Data Retrieval Tool

Page 39: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

IRS Transcript

• If you are unable to successfully retrieve the IRS data into the FAFSA, then you might be required to provide an official IRS transcript. You can request one from here: www.irs.gov– Available two weeks after an electronic

submission– Available 6-8 weeks after a paper

submission

Page 40: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

http://student.collegeboard.org/css-financial-aid-profile

Page 41: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

CSS/Financial Aid Profilehttps://profileonline.collegeboard.com/Not required by all schools$25 for the initial application and $16

for each additional collegeNon-Custodial Parent’s Form = $25Forms used to determine eligibility

for need-based institutional grants.

Page 42: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

CSS Profile Tips

In addition to the assets reported on the FAFSA, you will be required to report:– Value of your home, purchase price,

purchase date and current debt– Value of your retirement accounts

Page 43: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

CSS Profile Tips• Once the Profile has been submitted, you

will not be able to make corrections. You will need to print out a hard copy, make the corrections, send a copy to each school that requires the Profile.

• Many colleges participate in IDOC which is a document imaging service offered by the College Board. You send your tax return to them and they will scan it and make it available electronically to the colleges.

Page 44: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Remember! Grants/Scholarships do not have to be

repaid (unless a student withdraws during a term). Grants are typically awarded based on need and scholarships are typically awarded based on merit or athletic ability.

Student loans must be repaid Federal Work Study provides

income, which does not have to be repaid, from a part-time job

Grants/Scholarships do not have to be repaid (unless a student withdraws during a term). Grants are typically awarded based on need and scholarships are typically awarded based on merit or athletic ability.

Student loans must be repaid Federal Work Study provides

income, which does not have to be repaid, from a part-time job

Page 45: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Sources of Need Based Aid Federal Grants

(Funding for 2014-2015 has not yet been determined)

Federal Pell Grant – $5,645Federal SEOG Grant – up to $4,000Federal TEACH Grant – up to $4,000

Studentaid.gov for detailed information about these programs.

Page 46: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Sources of Need Based State Grant Aid

ctdhe.orgState grants for CT residents attending a college in CT

Governor’s Scholarship Program- a student can only receive funding from one of these funding sources:

1. Need/merit basedFAFSA requiredDeadline date- February 15Award amount = $3,500-$4,500 based on

expected family contribution less than $11,000Class rank 20% or betterSAT of 1800 or ACT of 27

Page 47: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Sources of Need Based State Grant Aidctdhe.org

• Governor’s Scholarship Program2. Need based

FAFSA requiredDeadline date set by the collegeAward range = $2,000 to $3,000 based on an

expected family contribution less than $11,000

Page 48: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Sources of Need Based Aid – Federal Loans studentaid.gov

Federal Perkin Loans – up to $5,500 Interest rate is 5% fixed Cancellation and deferment benefits

Federal Direct Loan – 1st year = up to $5,500 ($3,500 subsidized) 2nd year = up to $6,500 ($4,500 subsidized) 3rd-5th year = up to $7,500 ($5,500 subsidized) Current interest rates (2013-2014)

3.86% for subsidized loans 3.86% for unsubsidized loans

Fee = 1.051% (2013-2014) Cancellation and deferment benefits

Page 49: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Sources of Need Based Aid –

Student EmploymentFederal Work Study -

no limit but average range is $1,200 to $2,000 Students work approximately 8 – 10 hours per week Most paychecks are issued via direct deposit Employment can be on or off campus Student must provide proof of eligible citizenship

status to the college Unexpired passport (original) Social Security Card (original) Photo ID (driver’s license or college issued identity card)

Page 50: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Sources of Institutional Grants and Outside Resources

Institutional Grants/Scholarships are provided by the college either from tuition revenue and/or endowed funds and annual gifts.

Outside Resources – Employee Tuition BenefitNational Merit, Rotary, Garden Club, etc.

High school guidance officewww.finaid.org

Page 51: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

 Tuition & Fees $45,000Room & Board 13,000Books & Supplies 1,000Miscellaneous 500Transportation 500Total Cost $60,000

 Federal Pell Grant $ 2,500Federal Supplemental Educational Opp. Grant $ 2,500State of CT Governor’s Sch. Program $ 2,500College Grant $42,600

  Total Grants $50,100

Net Price (Cost less grants) $ 9,900Options to pay Net Price:

Federal Direct Subsidized Student Loan $ 3,500Federal Perkins Loan $ 1,000Federal Direct Unsubsidized Student Loan $ 2,000

Remaining balance $ 3,400Other options:

Federal Work Study $1,400 Parent Payment PlanParent PLUS loanPrivate alternative loan

Shopping Sheet(Helpful when trying to compare awards)

Page 52: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

How Aid is Applied to the Bill

Tuition & Fees = $45,000 Room & Board = 13,000 Total Charges = $58,000

Less aid:

Grants $50,100 Loans (subsidized) $ 4,500Total Aid Applied to the Bill $54,600Balance Due $ 3,400Balance with unsubsidized loan $ 2,000 $1, 400Usually paid in two installments: One-half of balance due on or about August 1 One half of balance due on or about January 1

Federal Work Study is not applied to the bill.

Page 53: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

What if my family contribution seems unreasonable?

Compare aid awards from similar colleges. If the family contribution is significantly different:

• Ask how the contribution was determinedIs there a contribution expected from the non-

custodial parent? Were losses reported on the tax return added

back?What is the minimum student contribution?How were family members in college treated?Was home equity included in the analysis?

• Has there been a change in family dynamics since the FAFSA was filed?

• Request procedures for an “Appeal” or “Review”

Page 54: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

How do I pay the bill?

Prepare monthly income/expense flow Put surplus monthly income to work for you with a

payment plan. Each college arranges with a third party provider to participate in one or more plans.

Use savings but keep enough to cover surprises! Investigate home equity loan, or other private

parent loans. Factors to consider: age, job market, other children to educate, income/debt ratio, credit rating

Page 55: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Federal PLUS Loan

Borrowers are parents of dependent undergraduate students

Annual loan limit: cost of attendance minus other aid

Fixed interest rate – 6.41% (2013-2014)Loan fees - 4.204% (2013-2014)Repayment begins 60 days after the loan is

fully disbursed.Can defer payments (interest will accrue)

while student is enrolled at least half-time.

Page 56: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Aid Award in Subsequent YearsLoan amounts increase as the student

advances to the next grade levelIf parent income/assets increase, the parent

contribution will most likely increase.If student assets decrease, the student

contribution will decreaseIf the number of dependents enrolled in

college changes, the parent contribution will change.

Federal, state and institutional funding levels change from year to year

Page 57: Applying for Financial Aid 2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

Thank you for your attention. What questions can I answer

for you?