discussion topics night.pdf · dc versus coa direct costs – what the student pays directly to the...

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ISMCollegePlanning.org Trusted Advice for Smarter Choices!

Taking A Closer Look at the Various Types of Aid and the

Financial Aid Process

Funding Your Education Wisely


DiscussionTopics  Financial Aid Overview

ª Types and sources of aid ª Federal and state programs ª Other aid options

  FAFSA Terminology (DC, COA, EFC and Need)   FAFSA Sections ª  Online process and benefits ª  Key elements of the various sections

  Next Steps

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Financial Aid Overview

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GoalsofFinancialAid  Primary goal is to assist students in paying for college and is achieved by: ª Evaluating family’s ability to pay educational

costs

ª Distributing limited resources in an equitable manner

ª Providing balance of gift aid and self-help aid

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SourcesofAid

  Federal Government

  State Government

  College/University

  Private Donors


TypesofAid  Gift Aid: ª  Grants ª  Scholarships

(need-based or merit-based)

  Self-help Aid:

ª  Employment ª  Loans

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FederalTitleIVPrograms  Grants ª  Pell Grant (Max: $5,775)

ª  Supplemental Educational Opportunity Grant (SEOG) (Max: $4,000)

ª  TEACH Grant ($4,000)

  Work-Study ª  Earn money to use for educational expenses ª  College/University determines eligibility ª  Income doesn’t count against you on next FAFSA


RememberLoansMUSTBeRepaid!

FederalTitleIVPrograms  Direct Loan (4.29%, 1.068% fee) ª Subsidized ª Unsubsidized

  Parent Loan for Undergraduate Students (PLUS) (6.84%, 4.272% fee)

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(InterestRateforloansdisbursedonora2er7/1/15,LoanFeesforloansdisbursedbetween10/1/15–9/30/16)

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StateofIndianaPrograms  Frank O’Bannon Grant Program

ª  Higher Education Award ª  Freedom of Choice Award

  21st Century Scholars Program

  For additional information on grants available visit in.gov/che

March 10th


StateofIndianaCreditCompleEon  Students must complete 30 credit hours each year to maintain eligibility for: ª 21st Century Scholar Awards ª Frank O’Bannon “On-Time” awards (maximum eligibility)

  If student completes between 24 to 29 credit hours may be eligible for “full-time” awards

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StateofIndianaResource

  Web portal where students and colleges can view and update information pertaining to state financial aid awards.

ª  Access to Indiana residents who have filed a FAFSA (access typically starts in February)

ª  Monitor edit notifications. ª  View State grant amounts ª  Change school choice

State of Indiana Deadlines: March 10, 2016 (eligibility) ~ May 15, 2016 (edits)


OtherSourcesofFunds  Colleges & Universities

ª  Need Based versus Merit Based

  Local & Community ª  Private Businesses, Community

Foundation, Civic Organizations, Church Groups, School Counselor, Place of Employment

  FREE National Search Sites

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OutsidescholarshipsmustbereportedtotheFinancialAidOfficeatthecollegesothattheymaybeincludedinthestudent’sFinancialAidpackage.

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FAFSA Terminology


TheImportanceoftheFAFSAFree Application for Federal Student Aid (FAFSA)   Currently the the Most Important form when applying for Financial Aid   Basis for determining eligibility for:

ª Federal Funds (Grants, Scholarships, Loans and Work Study)

ª State of Indiana (Grants and Scholarships) ª Potential Institutional Funds (Need-Based)

  Determines EFC

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WhatisEFC?  EFC = Expected Family Contribution.   Two components:

ª  Parent contribution ª  Student contribution

  Calculated using data from the FAFSA and a federal formula.   Amount family can reasonably be expected to contribute to the student’s education.

  Stays the same regardless of college.

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DCversusCOADirect Costs – What the student pays directly to the institution (Tuition, fees, and possibly room & board)

Cost of Attendance – Includes direct costs above plus federal required estimates for books/supplies, transportation, living expenses, etc.

Direct Costs Cost of Attendance Tuition 10,500 Tuition 10,500 Room & Board 9,700 Room & Board 9,700 Total Direct Costs 20,200 Books & Supplies* 1,200

Transportation* 1,000 Living Expenses* 2,000

* Denotes Estimate Total COA 24,400

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WhatisNeed?  Need = Cost of Attendance – EFC.

  Need could be different at each school

Cost of Attendance - EFC = Need

4YearPrivate

4YearPublic 2Year

Public

EFC

Need

NeedNeed

EFC


NeedExamples

Cost of Attendance - EFC = Need

40K

18K10K

5K

35K

13K5K

5K

40K

18K10K

10K

30K

8K5K

10K

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FAFSA


FAFSA.gov

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FAFSAontheWeb  Good reasons to file electronically:

ª  Built-in edits to help prevent costly errors ª  Skip-logic allows student and/or parent to skip

unnecessary questions ª  More timely submission of original application and any

necessary corrections ª  More detailed instructions and “help” for common

questions ª  Ability to check application status on-line ª  Simplified renewal application process


ApplicaEonProcess  Submit FAFSA prior to the college or state deadline, whichever comes first. ª State of Indiana: Received on or before March 10th ª Institutional: Check with each school

  Some institutions require students to complete additional application requirements, such as:

ª College Scholarship Service (CSS) Profile Form

ª An institutional financial aid application

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FSAID  Confirms your identity   Serves as your electronic signature   Who needs a FSA ID? ª Student ª Parent of

Dependent Student

FAFSA.gov - click on


Login  Login with either: ª Student

FSA ID ª Student

Name, SSN & DOB

  NOTE: Login is always STUDENT information

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GeNngStarted


SaveKey

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Skip Logic Example:

ª  If No to driver’s license

ª  If Yes to driver’s

license then opens box to provide info

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StudentEligibility  Main Questions to consider:

ª  Citizenship – must be U.S. citizen or eligible non-citizen ª  Selective Service (male only) ª  Grade level for upcoming college year


StudentEligibility  Main Questions to consider:

ª  Degree you are pursuing for the upcoming college year

ª  Will you have your first bachelor’s degree by July 1st

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  Indiana school must be listed in your top 6 schools


Dependentvs.Independent

  Dependency questions – If all answers are “No” then parent info required ª  Born before January 1, 1993 ª  Married ª  Serving on active duty or veteran

of US Armed Forces ª  Dependents that you support ª  Court determined you are

emancipated minor or under legal guardianship

ª  Since turning 13 – in foster care, orphan/ward of the court or parents are deceased

ª  Designated as homeless or self-supporting and at risk of being homeless

ª  Graduate/Professional program student

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  Who is considered a parent? ª  Biological or adoptive parent

  Whose parent information is included on the FAFSA? Marital Status Whose information needs provided

Married or unmarried and living together Both Parents

Divorced, separated or never married

The parent the student lived with more during the past 12 months. If that time is even then provide information for the parent that provided more financial support for the past 12 months.

Remarried after widowed or divorced Parent and step-parent

Widowed Single parent

ParentInformaEon


ParentDemographics

  Key elements: ª  Marital status & date ª  SSN, DOB, Name – federal data matches ª  Number in Household

²  Student, parent(s), other dependents

ª  Number in College ²  Parents excluded on student’s FAFSA

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  Tax completion options: ª  Will File – Use if you have not completed taxes

² Use previous year’s tax return to estimate numbers ² Allows you to meet filing deadlines ² Correct FAFSA once taxes are filed

ª  Already Completed – Use once taxes filed ² Potentially use IRS Data Retrieval Tool ² Best option for families and colleges

ª  Not required to file

FinancialInformaEon–FilingStatus


FinancialInformaEon Main data elements: ª  Filing status (Single, married filing joint, married filing

separate, head of household and qualifying widower) ²  Will be cross referenced with marital status

ª  Adjusted Gross Income (AGI) ª  Income Tax Amount (NOT taxes withheld) ª  Exemptions ª  Parent Income

²  Separate parent 1 & parent 2 income if both parents are working

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  Two Sections ª  Additional Financial Information

²  Child support paid ²  Taxable earnings from work-study ²  Grant and scholarship aid reported to IRS

ª  Untaxed Income ²  Payments to tax deferred pensions or retirement accounts ²  Child support received ²  Untaxed portions of IRA or pension distributions ²  Housing, food, living allowances ²  Money received or paid on your behalf (Student section only)

AddiEonalFinancialInformaEon


AssetInformaEon

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AssetInformaEon


 Student logged in with FSA ID

ª Agree to

statement ª Select “Sign”

Sign&SubmitPage

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ParentSignature

ª Select Parent

ª Agree to statement

ª Enter FSA ID or create one

ª Select “Sign”


Key Elements:   Confirmation

Number   Option to

transfer parent info if multiple students

  Next Steps

ConfirmaEonPage

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ConfirmaEonPageConEnued


Next Steps

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FAFSAProcessingResults

  Student Aid Report (SAR) ª  Print from fafsa.gov ª  Identifies any issues you

need to address

  Make Corrections ª  Update tax information once

you file taxes ª  Correct any errors

Note: Student and parent must sign the FAFSA when submitting corrections!


SpecialCircumstances  If a special circumstance occurs make sure you talk with the Financial Aid Office at the college/university you plan to attend.

  Special Circumstances may include: ª Change in employment status ª Medical expenses not covered by insurance ª Change in parent marital status ª Unusual dependent care expenses ª Student cannot obtain parent information

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CollegeGoalSunday

  February 21st, 2016   2:00 PM www.collegegoalsunday.org


www.ISMCollegePlanning.org

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  Resources ª FSA ID

creation steps

ª FAFSA Checklist

ª  IRS DRT steps

ª After the FAFSA Checklist

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ISMonSocialMedia  Facebook

ª  www.fb.com/ISMCollegePlanning

  Twitter ª  @ISM_CollegePlan

  Others ª  Instagram – www.Instagram.com/ISMCollegePlanning ª  Pinterest - www.Pinterest.com/ISMCollegePlan

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Robert Sommers [email protected]

317-416-2888

TITLESLIDEBLUE

discussion topics night.pdf · dc versus coa direct costs – what the student pays directly to the...

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