What you Need to KnowPresented by

Michael Corso

Director of Financial Aid

William Paterson University

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Topics We Will Discuss Tonight

What is financial aidCost of attendance (COA)Expected Family Contribution (EFC)What is financial needCategories, types, and sources of

financial aidFree Application for Federal Student

Aid (FAFSA)Special circumstances

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The Application Process

The financial aid process begins with the Free Application for Federal Student Aid (FAFSA)

Typically students only need to complete the FAFSA CSS Profile

Institutional Application or Scholarship Application

Students and parents must complete the FAFSA annually within established deadlines to determine eligibility for: Federal aid

State aid

Institutional aid

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Get Organized

Have a 3 ring binder for each college

Break up into Admissions, Fin Aid, Other

Go on the Website of each college

Net Price Calculator

Ask questions

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What is Cost of Attendance (COA)

Direct costs

Indirect costs

Direct and indirect costs combined into cost of attendance

Varies widely from college to college

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What is the Expected Family Contribution (EFC)

An index used to determine eligibility

Stays the same regardless of college

Two components

Parent contribution

Student contribution

Calculated using data from a federal application form and a federal formula

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What is Financial Need

Cost of Attendance

– Expected Family Contribution

= Financial Need

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Categories of Financial Aid

Need-based

Non need-based

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Example of Need

Cost of Attendance $30,000

EFC 2,000

Need $28,000

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Example of No Need

Cost of Attendance $30,000

EFC 30,000

Need 0

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Types of Financial Aid

Scholarships – Good Grades Pay!

Grants

Loans

Employment

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Federal Government

Largest source of financial aid

Aid awarded primarily on the basis of financial need

Must apply every year using the Free Application for Federal Student Aid (FAFSA)

A word about Veteran Benefits

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Common Federal Aid Programs

General Programs

Federal Pell Grant

Teacher Education Assistance for College and Higher Education Grant

Direct LoansPLUS Loans

Campus Based

Federal Supplemental Educational Opportunity Grant

Federal Perkins Loan

Federal Work-Study

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Loans

Federal Perkins Loan (5%)

Federal Direct Loan Program Subsidized Direct Loan (3.86%)

Unsubsidized Direct Loan (3.86%)

PLUS (5.41%) – Parent only

NJCLASS Supplemental Loan Program Fixed rate loan with varying repayment options. Interest rates range from 5.49% to 8.05% for the 2013/2014 award year. Can borrow up to cost of attendance and student can be the borrower. Each option has a 3% fee.

Institutional/Private Loans

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Direct Student Loans

Year Subsidized Unsubsidized

Fresh $3,500 $2,000

Soph $4,500 $2,000

Junior $5,500 $2,000

Senior $5,500 $2,000

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If a Parent is denied a PLUS Loan

Student can get additional Unsubsidized Direct Loan

Fresh $4,000

Soph $4,000

Junior $5,000

Senior $5,000

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State Aid

Residency requirements

Award aid on the basis of both merit and need

Use information from the FAFSA

Deadlines vary by state; check paper FAFSA or FAFSA on the Web site

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Higher Education Student Assistance Authority

Types of Aid

State of New Jersey

TAG (Tuition Aid Grant) & Part-Time TAG for County CollegesTotal Disbursed FY 2011 (July 2011 to June 2012) - $302.3 M

Total Number of Grants Awarded – 73,000

EOF (Educational Opportunity Fund)

Governor’s Urban ScholarshipRank in the top 5% of the high school graduating class

Attain a 3.0 GPA at the end of the junior year

Must graduate from a traditional public, public charter, county vocational or non-public school and reside in an eligible area

Have a New Jersey Eligibility Index below 10,500

Institutional Grants

Private Grants & Scholarships

State Scholarships

NJ STARS

Students who graduate in the top 15% of their high school class

Complete a rigorous high school course of study

Achieve the required score on a college placement test to determine college readiness

Students must take at least 12 college credits

Students must attain a cumulative GPA of 3.0 or higher

Must file a Free Application for Federal Student Aid (FAFSA)

NJ STARS II

Received NJSTARS funding and have a family taxable income of less than $250,000

Must earn an associates degree and graduate with a 3.25 GPA or higher

May receive up to $2,500 annually for a public or private 4-year NJ college or university

Must enroll full time (12 credit hours)

Must file a Free Application for Federal Student Aid (FAFSA)

Higher Education Student Assistance Authority

Types of Aid (continued)

State Scholarships

Governor’s Industry Vocation Scholarship for Women & Minorities (NJ - GIVS)

Up to $2,000 per year for the cost of enrollment at one of New Jersey’s 19 County Colleges

Benefits women and minorities pursuing non-degree certificates in construction – related fields

Must be NJ resident

Must file a FAFSA

Some of the programs eligible for the scholarship include

o Construction Supervision

o Solar Energy Technology

o Architectural Engineering Technology

o Heating / Refrigeration / Air Conditioning / Ventilation

Higher Education Student Assistance Authority

Types of Aid (continued)

State Verification

Additional Information Request (AIR)Further information requested by HESAA

Tax return(s) Bank statements

Selected for State verificationUnlike federal verification, which is

completed by colleges, HESAA conducts State verification. HESAA should be informed if first college listed on FAFSA is not the college the student is attending; change online at www.hesaa.org.

Student Eligibility Notice (SEN)Mailed to student from HESAA

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Higher Education Student Assistance Authority

Institution/college web sites

Local library resources

Local businesses, civic organizations and churches

Parent’s employer(s)

www.hesaa.org

www.fastweb.com

www.collegeboard.org

www.mappingyourfuture.org

Private Scholarship Search

When to complete the FAFSA

May be filed at any time during an academic year, but no earlier than the January 1st prior to the academic year for which the student requests aid

For the 2014-15 academic year, the FAFSA may be filed beginning January 1, 2014

Colleges may set FAFSA filing deadlines

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FAFSA on the Web

Web site: www.fafsa.gov 2014-15 FAFSA on the Web available on

January 1, 2014 FAFSA on the Web Worksheet:

Used as “pre-application” worksheet www.finaid.ucsb.edu/FAFSASimplification/

index.html

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Important Line Items

Adjusted Gross Income (AGI)

- 1040 line 37; 1040A line 21; 1040EZ line 4

Income tax

- 1040 line 55; 1040A line 35; 1040EZ line 11

Wages

- 1040 lines 7, 12,18; 1040A line 7; 1040EZ line 1

The advantage of filing a 1040A

- No assets are counted

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Higher Education Student Assistance Authority

FAFSA 2014/15 Major Changes

Enhanced instructions for question 14 and 15 will read, “If you have a social security number but are not a US Citizen or Eligible Non-Citizen, you should still complete the FAFSA because you may be eligible for state or college aid.

Revised Question #59 to read, “As of today, what is the marital status of your legal parents?” Revised “Single” to Never Married”

Added a new response, “Unmarried and both parents living together”

Higher Education Student Assistance Authority

General Highlighted Eligibility Requirements

Must have a valid Social Security Number

Must be enrolled or accepted for enrollment in an eligible program of study

Must be pursuing a degree, certificate, or other recognized credential

Must be a U.S. citizen or eligible noncitizen

Must be registered with Selective Service (males are required)

HESAA Services

Web Site

www.hesaa.org Financial Aid Hotline

609-584-4480 NJBEST

MappingYourFuture.org

Higher Education Student Assistance Authority

Estimated FAFSA

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Federal Verification

Must complete Verification Process

1. Provide a Tax Return Transcript from IRS

- www.irs.gov

- call 800-908-9946 or 800-829-1040

2. Use IRS Data Retrieval Process 2 Ways

- as part of the original application

- to complete verification requirements

Youtu.be/W47_YTRVYD4

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IRS Data Retrieval

Available February 2014

Allows an applicant who has already filed their tax return with IRS to electronically transfer data from tax return to FAFSA

Participation is strongly encouraged reduce documents requested by financial aid office

Not available to applicants with a recent change in marital status

If married use the husband’s information.

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IRS Data Retrieval

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

If a tax filer files taxes electronically, they need to wait 1 to 2 weeks to do FAFSA

If a tax filer files taxes by paper, they need to wait 6 to 8 weeks to do FAFSA

If do estimated FAFSA, can use IRS DATA retrieval to correct FAFSA

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Signatures – Important! Pin.ed.gov

Pin.ed.gov

Required

Student

One parent (dependent students)

Format

Electronic using PIN

Signature page

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Click to Apply for State Aid

Frequent FAFSA Errors

Social Security Numbers and DL Divorced/remarried parental information Income earned by parents/stepparents Untaxed income Wages left blank Household size Number of household members in college Real estate and investment net worth

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Making Corrections

If necessary, corrections to FAFSA data may be made by:

Using FAFSA on the Web (www.fafsa.gov) if student has a PIN;

If estimated taxes are used, correct FAFSA with real taxes or use IRS Data Retrieval; or

Submitting documentation to college’s financial aid office

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Special Circumstances

Cannot report on FAFSA

Send explanation to financial aid office at each college

College will review special circumstances

Request additional documentation

Decisions are final and cannot be appealed to U.S. Department of Education

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Special Circumstances

Change in employment status

Medical expenses not covered by insurance

Change in parent marital status

Unusual dependent care expenses

Student cannot obtain parent information

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CSS Profile Why is it required? Request additional information, i.e., non-custodial

parent, home equity, pensions. Used by some schools to distribute institutional funds.

Who requires it? Typically, institutions with significant institutional aid Over 250 schools nationally

When do families file? Available October 1, 2012 Submit by school deadline

To download CSS Profile, go to www.collegeboard.com

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Outside Scholarships

Campus Administered Payment Plans

Campus Employment

Specialized Campus Opportunities

Residential Advisors

Student Ambassadors

Student Tour Guides

Internships/CO-OP’S

Higher Education Student Assistance Authority

Other Resources

Additional Web sites

www.studentaid.ed.gov

www.finaid.org

http://nces.ed.gov/collegenavigator/

http://www.college.gov/wps/portal

FAFSA4caster

For High School Juniors and their parents

http://www.fafsa4caster.ed.gov

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