What You Need to Know About Financial Aid Slide Show Presentation

Report
SPONSORED BY
What You Need to Know
about Financial Aid
2014
Your NJ State Authority:
NJ Tuition Aid Grant is one of the largest need-based grant programs
in the United States
What You Need to Know
about Financial Aid
2014
The New Jersey Association of Financial Aid Administrators
state wide welcome you to
Get Your FAFSA on…FAFSA
DAY…
Topics We Will Discuss Today
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What is financial aid
Cost of attendance (COA)
Expected Family Contribution (EFC)
What is financial need
Categories, types, and sources of financial aid
Free Application for Federal Student Aid
(FAFSA)
• Special circumstances
Higher Education Student Assistance Authority
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What is Financial Aid?
Financial aid is funds provided to students
and families to help pay for postsecondary
educational expenses
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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)
• 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
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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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Types of Financial Aid
• Scholarships
• Grants
• Loans
• Employment
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Scholarships
• Money that does not have to be paid
back
• Awarded on the basis of merit, skill,
or unique characteristic
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Grants
• Money that does not have to be paid
back
• Usually awarded on the basis of
financial need
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Loans
• Money students and parents borrow to help
pay college expenses
• Repayment usually begins after education
is finished
• Only borrow what is really needed
• Look at loans as an investment in the future
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NJCLASS
State statutory supplemental loan program that provides
eligible students with an additional, last resort affordable
source of funds for meeting college expenses
• For all New Jersey students attending in-state or
out-of-state schools
NJCLASS is one of the private loans families
may choose to borrow after receiving all other
financial aid
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Employment
Allows student to earn money to help pay
educational costs
• A paycheck; or
• Non-monetary compensation, such as room
and board
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Sources of Financial Aid
• Federal government
• State of New Jersey Tuition Aid Grant
• Private sources
• Civic organizations and churches
• Employers
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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)
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Common Federal Aid Programs
• Federal Pell Grant
• Federal Perkins Loan
• Teacher Education
Assistance for College and
Higher Education Grant
• Federal Work-Study
• Federal Supplemental
Educational Opportunity
Grant
• PLUS Loans
Higher Education Student Assistance Authority
• Stafford Loans
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New Jersey State Aid Programs*
Program Name
Annual Award 13/14
Tuition Aid Grant
$574- $11,958
Part-Time TAG for County College Students
$566- $1,932
Educational Opportunity Fund
Up to $2,500
Governor’s Urban Scholarship
Up to $1,000
NJ Student Tuition Assistance Reward Scholarship (STARS)
Up to 18 credits (tuition only)
NJ Student Tuition Assistance Reward Scholarship II (STARS II)
Renewal students up to
$7,000, non-renewal up to
$2,500
NJ World Trade Center Scholarship
$5,000
Law Enforcement Officer’s Memorial Scholarship
COA minus other aid
NJ College Loan to Assist State Students (NJCLASS)
COA minus other aid
NJ BEST Scholarship (freshman year only)
Up to $1,500
*Subject to change based on State appropriations
Governor’s Industry Vocations Scholars (NJ-GIVS) Scholarship
Higher Education Student Assistance Authority
Up to $2,000
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Private Sources
• Foundations, businesses, charitable
organizations
• Deadlines and application procedures
vary widely
• Begin researching private aid sources
early
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Civic Organizations and Churches
• Research what is available in community
• To what organizations and churches do
student and family belong?
• Application process usually spring of senior
year
• Small scholarships add up!
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Employers
• Companies may have scholarships
available to the children of employees
• Companies may have educational
benefits for their employees
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Free Application for Federal Student Aid
(FAFSA)
• A standard form that collects demographic
and financial information about the student
and family
• May be filed electronically or using paper
form
– Available in English and Spanish
Caution Avoid being charged a fee to
file the FAFSA
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FAFSA
• Information used to calculate the Expected
Family Contribution or EFC
– The amount of money a student and his or her
family may reasonably be expected to
contribute towards the cost of the student’s
education for an academic year
• Colleges use EFC to award financial aid
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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 and the State of New Jersey set
FAFSA filing deadlines
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FAFSA on the Web
• Website: www.fafsa.gov
• 2014-15 FAFSA on the Web available on
January 1, 2014
• FAFSA on the Web Worksheet:
– Used as “pre-application” worksheet
– Questions follow order of FAFSA on the Web
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FAFSA on the Web
Good reasons to file electronically:
• Built-in edits to prevent costly errors
• Skip logic allows student and/or parent to skip
unnecessary questions
• More timely submission of original application and any
necessary corrections
• More detailed instructions and “help” for common
questions
• Ability to check application status on-line
• Simplified application process in the future
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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 window
• Applicant chooses whether or not to
transfer data to FOTW
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IRS Data Retrieval Tool
• Available February for 2014–15
processing cycle
• Participation is voluntary
– if you choose not use the IRS Data Retrieval
tool you may be selected for federal verification
and will be required to provide a IRS Tax
Return Transcript
• Could reduce documents requested by
financial aid office
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Federal Student Aid Personal Identification
Number (FSA PIN)
• Website: www.pin.ed.gov
• Sign FAFSA electronically
not required, but speeds
processing
• All students and parents of
dependent students must
obtain a PIN which will be
used in subsequent school
years
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FAFSA on the Web Worksheet
2014-2014
2014-15 FAFSA on the Web Worksheet—
4-page booklet containing:
• Instructions
• 4 sections
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FOTW Worksheet: Section 1
General student information:
• Social Security Number
• Citizenship status
• Marital Status
• Selective Service registration
• Drug convictions
• Father and Mother’s highest school completed
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FOTW Worksheet: Section 2
Student’s dependency status:
• If all “No” responses, student is dependent
• If “Yes” to any question, student is
independent
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FOTW Worksheet: Section 3
Information about the parents of dependent
students:
• Tax, income, and other financial information
• Dislocated worker status
• Assets
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FOTW Worksheet: Section 4
Information about the student (and spouse):
• Tax, income, and other financial information
• Dislocated worker status
• Assets
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Additional Information
• College and housing information
• College Choice
– List a New Jersey college first
– List all colleges of interest (up to 10)
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Signatures
• Required
– Student
– One parent (dependent students)
• Format
– Electronic using PIN
– Signature page
– Paper FAFSA
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2014 -2015
Additional
Information for State
Aid
To avoid delays in State aid
processing click on the link to
provide State information
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2014- 2015 Additional Information for State Aid
Dependent
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Parents & Students
• Earned Income Tax Credit
• Untaxed Social Security Benefits
Students
• Driver License Info – if not reported on the FAFSA
Independent
Driver License Info – if not reported on the FAFSA
Earned Income Tax Credit
Untaxed Social Security Benefits
Veterans Educational Benefits
• Type of Benefit
• Number of Months
• Monthly Amount
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Frequent FAFSA Errors
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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
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FAFSA Processing Results
Central Processing System (CPS) notifies
student of FAFSA processing results by:
• Paper Student Aid Report (SAR) if paper FAFSA
was filed and student’s e-mail address was not
provided
• SAR Acknowledgement if filed FAFSA on the
Web and student’s e-mail address was not
provided
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FAFSA Processing Results
• CPS notifies student of FAFSA processing
results by:
– E-mail notification containing a direct link to
student’s electronic SAR if student’s e-mail was
provided on paper or electronic FAFSA
• Student with PIN may view SAR on-line at
www.fafsa.gov
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FAFSA Processing Results
• Institutional Student Information Record
(ISIR) sent to colleges listed on FAFSA
approximately 10 to 14 days after FAFSA
submitted
• College reviews ISIR
– May request additional documentation, such
as copies of federal tax return transcripts
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Federal Student Aid Report
• Review data for accuracy
• Update estimated information when actual figures
are available
State Student Eligibility Notice
• An official document used by HESAA to inform
aid applicants of their state award eligibility at
their selected college or university.
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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;
– Estimated income to actual income via IRS data
retrieval should be made on FOTW
• Updating paper SAR (SAR Information
Acknowledgement cannot be used to make
corrections); or
• Submitting documentation to college’s
financial aid office
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Special Circumstances
• Cannot report on FAFSA
• Send written explanation to financial aid
office at each college
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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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Questions?
Information provided by the National Association of Student Financial Aid Administrators and Higher
Education Student Assistance Authority
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