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Financing Your Financing Your FutureFuture

…an introduction to financial …an introduction to financial aid for aid for

Grand Rapids High SchoolGrand Rapids High School

Presented by Nathan Wright & Allison GeislerPresented by Nathan Wright & Allison GeislerFinancial Aid StaffFinancial Aid Staff

Itasca Community CollegeItasca Community College

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Presentation OverviewPresentation Overview Financial Aid application processFinancial Aid application process

– PIN registration, FAFSA “trouble spots”PIN registration, FAFSA “trouble spots”

Post-application processPost-application process– FAFSA output, corrections, verification, FAFSA output, corrections, verification,

professional judgment, award notificationprofessional judgment, award notification

Description of federal and state Description of federal and state programsprograms

QuestionsQuestions

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Government Philosophy Government Philosophy on Financial Aidon Financial Aid

Three partnersThree partners, who share responsibility of , who share responsibility of educational costs: educational costs: students, parentsstudents, parents,, and and taxpayerstaxpayers (government)(government)

Parents’ and student’s responsibilityParents’ and student’s responsibility to pay to pay for higher education expenses for higher education expenses to the to the extent that they are ableextent that they are able and before and before federal or state funds are usedfederal or state funds are used

FAFSAFAFSA – determines an EFC (Expected – determines an EFC (Expected Family Contribution) to Family Contribution) to make a consistent make a consistent evaluationevaluation of each family’s financial of each family’s financial circumstancecircumstance

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Pre-Application ProcessPre-Application Process

Apply for a PIN Apply for a PIN Go to: Go to: www.pin.ed.govwww.pin.ed.gov

Get your 2007 taxes Get your 2007 taxes done ASAP!done ASAP!

Complete the “FAFSA on Complete the “FAFSA on the Web Worksheet” at the Web Worksheet” at www.fafsa.ed.govwww.fafsa.ed.gov

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To Register for a PIN: To Register for a PIN: www.pin.ed.govwww.pin.ed.gov

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PIN RegistrationPIN Registration

Student and Parent each need their Student and Parent each need their own PINown PIN

Make sure name/DOB match Social Make sure name/DOB match Social Security cardSecurity card

Answer challenge question to activateAnswer challenge question to activate PIN can be used:PIN can be used:

– E-sign FAFSA on WebE-sign FAFSA on Web– Check status/correctionsCheck status/corrections– Sign Master Promissory Note for Federal Sign Master Promissory Note for Federal

LoansLoans

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Time to get organized!Time to get organized! Tax ReturnsTax Returns

W-2 formsW-2 forms

Untaxed Income Info Untaxed Income Info (Welfare, Social (Welfare, Social Security, Child Support, Security, Child Support, etc…)etc…)

Bank StatementsBank Statements

Investment InfoInvestment Info

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FAFSA on the Web FAFSA on the Web WorksheetWorksheet

Go to Go to www.fafsa.ed.govwww.fafsa.ed.gov and print off and print off FAFSA on the Web WorksheetFAFSA on the Web Worksheet

Worksheet allows you to read and Worksheet allows you to read and complete the questions before complete the questions before entering your information onlineentering your information online

Questions are listed in the same Questions are listed in the same order as they appear on the web siteorder as they appear on the web site

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FAFSA on the Web FAFSA on the Web WorksheetWorksheet

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Application ProcessApplication Process

FAFSA submission began January 1, 2008FAFSA submission began January 1, 2008– Final 0809 FAFSA deadline is June 30, 2009Final 0809 FAFSA deadline is June 30, 2009

FAFSA must be received within 30 days of term FAFSA must be received within 30 days of term start date to receive State Grant for a termstart date to receive State Grant for a term

College financial aid deadlines are usually College financial aid deadlines are usually much earlier than FAFSA and State Grant much earlier than FAFSA and State Grant deadlines, so check with the college you will deadlines, so check with the college you will apply toapply to

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Application ProcessApplication Process

EVERYONE should submit a FAFSA, EVERYONE should submit a FAFSA, regardless of incomeregardless of income

Studies show that 50% of undergraduates Studies show that 50% of undergraduates do not file the FAFSAdo not file the FAFSA

– While most non-filers are upper income While most non-filers are upper income families, 20% have low or moderate incomefamilies, 20% have low or moderate income

– Many families are unaware that the federal aid Many families are unaware that the federal aid deadline is not until END of school yeardeadline is not until END of school year

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CAUTION!CAUTION!

Be sure to go to Be sure to go to www.fafsa.ed.govwww.fafsa.ed.gov (free government site)(free government site)

NOTNOT

www.fafsa.comwww.fafsa.com (commercial site--fee)(commercial site--fee)

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FAFSA on the Web: FAFSA on the Web: www.fafsa.ed.govwww.fafsa.ed.gov

ApplyApply ReapplyReapply Access PIN Web siteAccess PIN Web site Find college codesFind college codes Check status of Check status of

FAFSAFAFSA View SAR View SAR

informationinformation Make correctionsMake corrections

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EXPECTED FAMILY CONTRIBUTION FOR EXPECTED FAMILY CONTRIBUTION FOR DEPENDENT STUDENTDEPENDENT STUDENT

Parent IncomeParent Income Student IncomeStudent Income Untaxed IncomeUntaxed Income ExclusionsExclusions AssetsAssets Family SizeFamily Size Number Number

Attending Attending CollegeCollege

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Dependency Questions:Dependency Questions: If you answer If you answer “NO”“NO” to all of the questions, you to all of the questions, you mustmust

include include PARENTPARENT information. information.

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Biological or Adoptive Biological or Adoptive

ParentsParents If parents are married, report information If parents are married, report information

for both parentsfor both parents

If parents are divorced or separated, If parents are divorced or separated, provide information for parent:provide information for parent:

– Student lived with the most in last yearStudent lived with the most in last year– Or, if lived equal periods with each parent, parent Or, if lived equal periods with each parent, parent

who provided the most financial support in last who provided the most financial support in last year or most recent year support providedyear or most recent year support provided If that parent remarried, include stepparent’s If that parent remarried, include stepparent’s

information, even if stepparent did not adopt information, even if stepparent did not adopt studentstudent

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Biological or Adoptive Biological or Adoptive ParentsParents

If student’s parents are living together If student’s parents are living together but not married, provide information for but not married, provide information for parent who provided the most financial parent who provided the most financial support in the previous year or most support in the previous year or most recent year support was providedrecent year support was provided

Generally, this is parent with highest incomeGenerally, this is parent with highest income

If parent is single or widowed, provide If parent is single or widowed, provide information about surviving parentinformation about surviving parent

If surviving parent remarried, include If surviving parent remarried, include stepparent’s information, even if stepparent stepparent’s information, even if stepparent did not adopt studentdid not adopt student

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Other Relatives and Legal Other Relatives and Legal GuardiansGuardians

Parents’ informationParents’ information– Grandparents, foster parents, other Grandparents, foster parents, other

relatives and legal guardians are NOT relatives and legal guardians are NOT considered parents on the FAFSA unless considered parents on the FAFSA unless they legally adopted studentthey legally adopted student

If student is orphan or is/was ward of the If student is orphan or is/was ward of the court, student should apply as independentcourt, student should apply as independent

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FAFSA “Trouble Spots”FAFSA “Trouble Spots”

Student Social Security NumberStudent Social Security Number

– Make sure name and date of birth used Make sure name and date of birth used on the FAFSA matches name and date of on the FAFSA matches name and date of birth on Social Security cardbirth on Social Security card

– Watch out for parents copying Watch out for parents copying information from one sibling’s FAFSA to information from one sibling’s FAFSA to another (same SSN)another (same SSN)

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FAFSA “Trouble Spots”FAFSA “Trouble Spots”

Incorrect response to amount Incorrect response to amount

of U.S. income taxes paidof U.S. income taxes paid

– Student and/or parents Student and/or parents incorrectly report amount of incorrectly report amount of federal taxes federal taxes withheldwithheld, as , as shown on W-2 form, rather shown on W-2 form, rather than the amount of taxes than the amount of taxes assessed (from tax table)assessed (from tax table)

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FAFSA “Trouble Spots”FAFSA “Trouble Spots”

Net worth of investmentsNet worth of investments– Families forget to Families forget to EXEXclude: family clude: family

home, retirement accounts, life home, retirement accounts, life insurance, cash and savings already insurance, cash and savings already reported under “cash and savings”reported under “cash and savings”

– Families forget to Families forget to ININclude: other real clude: other real estate, trust funds, mutual funds, CDs, estate, trust funds, mutual funds, CDs, stocks, bonds, Coverdell or other stocks, bonds, Coverdell or other education savings accountseducation savings accounts

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FAFSA “Trouble Spots”FAFSA “Trouble Spots”

Parents’ household sizeParents’ household size

– Always include dependent student Always include dependent student applicant, even if s/he doesn’t currently applicant, even if s/he doesn’t currently live with parentslive with parents

– Include parents’ other children if parents Include parents’ other children if parents will provide more than half of their support will provide more than half of their support from July 1, 2008 to June 30, 2009 OR if from July 1, 2008 to June 30, 2009 OR if those children could answer “No” to all those children could answer “No” to all questions regarding dependency statusquestions regarding dependency status

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FAFSA “Trouble Spots”FAFSA “Trouble Spots”

Parent’s Household size (con’t)Parent’s Household size (con’t)

– Include other individuals if they will live in Include other individuals if they will live in parents’ household AND receive more than parents’ household AND receive more than half of their support from July 1 through half of their support from July 1 through June 30 (Do NOT include foster children)June 30 (Do NOT include foster children)

– If expected child will be born during school If expected child will be born during school year, child can be included in household year, child can be included in household sizesize

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FAFSA “Trouble Spots”FAFSA “Trouble Spots” For Worksheet A, families incorrectly report For Worksheet A, families incorrectly report

monthly benefit amount rather than amount monthly benefit amount rather than amount received for entire tax yearreceived for entire tax year

For Worksheet B, families frequently exclude:For Worksheet B, families frequently exclude:– Payments to tax-deferred pension and savings Payments to tax-deferred pension and savings

plans (Box 12 from W-2 forms)plans (Box 12 from W-2 forms)– IRA deductions and payments to self-employed IRA deductions and payments to self-employed

retirement plansretirement plans– Child support received (don’t report foster care Child support received (don’t report foster care

payments)payments)

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FAFSA “Trouble Spots”FAFSA “Trouble Spots” Worksheet CWorksheet C

– Income reported on Worksheet C is subtracted Income reported on Worksheet C is subtracted from family’s total income, thereby reducing the from family’s total income, thereby reducing the EFC and increasing eligibility for financial aidEFC and increasing eligibility for financial aid

– Don’t forget to report:Don’t forget to report: Higher education tax credits claimed during the Higher education tax credits claimed during the

previous tax yearprevious tax year Child support paid to another householdChild support paid to another household Student’s need-based work study income earned Student’s need-based work study income earned

during the previous tax yearduring the previous tax year

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After Completing the After Completing the FAFSAFAFSA

Student receives a Student Aid Student receives a Student Aid Report (SAR) by e-mail or mailReport (SAR) by e-mail or mail

The Financial Aid Office at the The Financial Aid Office at the school(s) you listed receives an school(s) you listed receives an electronic copy of the FAFSA resultselectronic copy of the FAFSA results

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VerificationVerification Certain applications are selected for Certain applications are selected for

VerificationVerification

If selected, family must complete Verification If selected, family must complete Verification Worksheet sent by Financial Aid OfficeWorksheet sent by Financial Aid Office– Must attach tax returns, W-2 forms and other Must attach tax returns, W-2 forms and other

supporting documentationsupporting documentation

After financial aid administrator has made After financial aid administrator has made corrections based on Verification, family corrections based on Verification, family should not make additional corrections should not make additional corrections without consulting Financial Aid Administratorwithout consulting Financial Aid Administrator

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CorrectionsCorrections

If a correction to applicant data is If a correction to applicant data is needed, the correction may be needed, the correction may be made:made:

– Using “Corrections on the Web” Using “Corrections on the Web” – On the paper SAROn the paper SAR– By the CollegeBy the College

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The Financial Aid OfficeThe Financial Aid Office Determines students’ Determines students’

eligibility for financial eligibility for financial aid based on FAFSA aid based on FAFSA resultsresults

Packages and offers Packages and offers financial aid to financial aid to studentsstudents– based on eligibilitybased on eligibility– attempt to meet financial attempt to meet financial

needneed

Sends an award Sends an award notification which notification which details:details:– Cost of attendanceCost of attendance– Types and amount of Types and amount of

financial aidfinancial aid– Conditions of the awardConditions of the award– Disbursement procedureDisbursement procedure

NOTE: Students must be admitted to the college before they can receive an award letter.

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Professional JudgmentProfessional JudgmentExamples such as:Examples such as:

Loss of income in 2008 compared to 2007Loss of income in 2008 compared to 2007 Social Security benefits endingSocial Security benefits ending Extreme medical expensesExtreme medical expenses Separation/divorce/deathSeparation/divorce/death Private tuition expensesPrivate tuition expenses SettlementsSettlements Non-discretionary circumstancesNon-discretionary circumstances

- Contact the Financial Aid Administrator- Contact the Financial Aid Administrator

**Aid Administrator may be able to make **Aid Administrator may be able to make adjustments to certain data items on your adjustments to certain data items on your FAFSA that FAFSA that MAYMAY increase your eligibility for increase your eligibility for need-based aid.need-based aid.

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Definition of Financial Definition of Financial NeedNeed

Cost of Attendance (COA for one year)Cost of Attendance (COA for one year) - Expected Family Contribution (EFC)- Expected Family Contribution (EFC)----------------------------------------------------------------------------------------------------------------

= Financial Need= Financial Need

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Cost of AttendanceCost of Attendance

Tuition and feesTuition and feesRoom and boardRoom and boardBooks and Books and

Supplies Supplies TravelTravelPersonal Personal

AllowanceAllowance

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Cost of Attendance: Cost of Attendance: Itasca Community CollegeItasca Community College

(for student living off-campus)(for student living off-campus)

Tuition & FeesTuition & Fees $ 4,475$ 4,475

Room & BoardRoom & Board $ 5,733$ 5,733

Books & SuppliesBooks & Supplies $ $ 950950

Personal & Travel Personal & Travel $ $ 4,1054,105

TOTAL Estimated CostTOTAL Estimated Cost$15,263*$15,263*

* Based on 2008-2009 estimated information.

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ComparisonComparison

Cost of Attendance is based on 2007-08 estimated costs for 15 credits/semester for a Minnesota resident.

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Need Varies Based on CostNeed Varies Based on Cost

X

Y

Z

Cost of Expected Family NeedAttendance Contribution (Variable) (Variable) (Constant)

1

2

3

EFC EFC

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What is Financial Aid?What is Financial Aid?

GrantsGrants

ScholarshipsScholarships

Employment OpportunitiesEmployment Opportunities

LoansLoans

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GrantsGrants

Need-based gift aid - Need-based gift aid - does not need to be repaid.does not need to be repaid.

Federal Pell GrantFederal Pell Grant Federal SEOG GrantFederal SEOG Grant Federal Academic Competitiveness Grant Federal Academic Competitiveness Grant

(Final High School Transcript must be on file with the college.)(Final High School Transcript must be on file with the college.)

Federal SMART GrantFederal SMART Grant Minnesota State GrantMinnesota State Grant Tribal GrantsTribal Grants Other/Institutional GrantOther/Institutional Grant Federal TEACH Grant (non-need based)Federal TEACH Grant (non-need based)

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Scholarships Scholarships

Merit-based aid that does notMerit-based aid that does not

need to be repaid.need to be repaid. Institutional Institutional PrivatePrivate Minnesota AchieveMinnesota Achieve ((www.getreadyforcollege.orgwww.getreadyforcollege.org

/achieve/achieve) ) Minnesota Indian ScholarshipMinnesota Indian Scholarship

Scholarship search services:Scholarship search services: www.scholarshipexperts.comwww.scholarshipexperts.com www.finaid.orgwww.finaid.org www.fastweb.com www.fastweb.com

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Local Scholarship ResourcesLocal Scholarship Resources Blandin Foundation Blandin Foundation

Scholarship Program (based on Scholarship Program (based on need)need)– Apply at Apply at

www.blandinfoundation.orgwww.blandinfoundation.org if not if not attending ICC. May 1attending ICC. May 1stst deadline. deadline.

– If attending ICC, apply directly to If attending ICC, apply directly to school by completing FAFSA by school by completing FAFSA by May 1 (priority deadline). May 1 (priority deadline).

Grand Rapids Community Grand Rapids Community Foundation Scholarship Foundation Scholarship ProgramProgram– Apply at www.gracf.orgApply at www.gracf.org

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Scholarship ResourcesScholarship Resources High School Guidance High School Guidance

CounselorCounselor

Internet (but never pay a fee)Internet (but never pay a fee)

fastweb.comfastweb.com

finaid.comfinaid.com

Your college(s) of choiceYour college(s) of choice

– AcademicAcademic

– AthleticAthletic

– Talent-basedTalent-based

The community (church, The community (church, civic, business organizations)civic, business organizations)

Local library resourcesLocal library resources

Parents’ place of Parents’ place of employmentemployment

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Student EmploymentStudent EmploymentEarnings are paid as hours are worked. Earnings are paid as hours are worked.

(ICC currently pays $8 per hour)(ICC currently pays $8 per hour)

Federal Work-StudyFederal Work-Study Minnesota Work-StudyMinnesota Work-Study College EmploymentCollege Employment

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Loans Loans Must be repaid with interest.Must be repaid with interest. Need-based Need-based

Federal Perkins Loan (5% fixed)Federal Perkins Loan (5% fixed) Federal Subsidized Stafford Loan (6% fixed)Federal Subsidized Stafford Loan (6% fixed)

Not need-basedNot need-based Federal Unsubsidized Stafford Loan (6.8% fixed)Federal Unsubsidized Stafford Loan (6.8% fixed) Federal PLUS Loan (8.5% fixed)Federal PLUS Loan (8.5% fixed) Minnesota SELF Loan (variable rate)Minnesota SELF Loan (variable rate) Private/Alternative Loans (variable)Private/Alternative Loans (variable)

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Other ResourcesOther Resources

Reciprocity ProgramsReciprocity Programs Federal Tax benefits for Higher Federal Tax benefits for Higher

EducationEducation

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Federal Tax Benefits for Federal Tax Benefits for Higher EducationHigher Education

Hope Scholarship Tax CreditHope Scholarship Tax Credit

Lifetime Learning CreditLifetime Learning Credit

Student Loan Interest Student Loan Interest DeductionDeduction

Employer Paid Tuition Employer Paid Tuition AssistanceAssistance

Deduction for Qualified Deduction for Qualified Higher Education ExpensesHigher Education Expenses

For further information, go For further information, go to to www.ohe.state.mn.uswww.ohe.state.mn.us

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Review of Application Review of Application StepsSteps

RemindersReminders:: Apply for financial Apply for financial

aid each yearaid each year Check priority Check priority

dates and dates and deadlinesdeadlines

Do not share your Do not share your federal PINfederal PIN

Obtain PIN for both Obtain PIN for both STUDENT and PARENTSTUDENT and PARENT

File federal income tax File federal income tax returnsreturns

Complete FAFSAComplete FAFSA Complete School’s Complete School’s

Financial Aid Application Financial Aid Application (if applicable)(if applicable)

Review Student Aid Review Student Aid Report (SAR)Report (SAR)

Complete verification Complete verification processprocess

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What if I still have questions What if I still have questions about Financial Aid?about Financial Aid?

College Financial Aid Administrators College Financial Aid Administrators

Office of Higher EducationOffice of Higher Education(651) 642-0567 or toll free (800) 657-3866(651) 642-0567 or toll free (800) 657-3866

Call (800) 4-FED-AIDCall (800) 4-FED-AID

College Goal SundayCollege Goal Sunday

When: When: Sunday, February 10, 2008Sunday, February 10, 2008

Where: Where: 2-4 p.m. at Bemidji High School2-4 p.m. at Bemidji High School

Cost: Cost: FREE!FREE!

More info:More info: http://collegegoalsundayusa.org/http://collegegoalsundayusa.org/