Financial Aid - Caddo Mills ISD

Report
The FAFSA: A Step-By-Step
Guide
Presenter: Kimberly Herron-Financial Aid Advisor
Texas A&M University-Commerce
[email protected]
903-886-5347
The Financial Aid Application
FAFSA
 What is the FAFSA?
 Before applying
 When to apply
 How to apply
 What to expect after applying
 Where to get help and info
What Is the FAFSA?
 Free Application for Federal Student Aid
 Application for federal, state, institutional aid.
 Can be are requirement for scholarships.
(e.g., Gates Millennium Scholarship)
You are eligible to file a Free Application for Federal
Student Aid (FAFSA) if you are:
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U.S. Citizen
Permanent U.S. resident with a n Alien Registration Card (I-551)
Conditional permanent U.S. resident with a visa type I-551 C
Citizens of the Freely Associated Sate: the Federated States of Micronesia
and the Republics of Palau and the Marshall Islands
• Eligible noncitizen with an Arrival/Departure Record (I-94) showing one of
the following
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Refugee
Asylum granted,
Parolee (for a minimum of one year),or
Cuban-Haitian entrant
 Students who are not able to complete the FAFSA due to their immigration
status may be able to file the Texas Application for State Financial Aid
(TASFA).
Texas Application for State Financial Aid (TASFA)
 Classified as a Texas resident
 Eligible to pay the Texas in-state tuition rate, not due to a waiver such as an in-state
scholarship or assistantship.
 Available on line to print at www.collegeforalltexans.com.
 Please make sure you check the listings of the schools that accept the TASFA. If a school is not
listed contact the Financial Aid office to see if they will accept the TASFA.
 This is a paper application and can not be submitted on-line so please send the application to
each school you are applying to.
 Application should be completed and submitted as soon as possible after January 1st of the
senior year.
 Priority deadline either the FAFSA or TASFA is
March 15th!
Whose Information goes on the FAFSA ?
Independent vs. Dependent?
• Student born before January 1, 1991?
• As of they day the student completes the FAFSA they are married.
• At the beginning of the 2014-2015 school year, the student will be
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working on a master’s or doctoral program.
Student is currently serving on active duty in the U.S. Armed Forces for
purposes other than training.
Student is a veteran of the U.S. Armed Forces.
Student has children who will receives more than ½ of their support
from the student.
Student has legal dependents (other than their children or spouse)
who live with them and receive more than ½ of their support from the
student.
At anytime since the student turned age 13, both parents were
deceased, student was in foster care, or student was a dependent or
ward of the court.
Student is an emancipated minor.
Student is in a legal guardianship.
Independent vs. Dependent
Continued…
• At any time on or after July 1, 2014, did the students high school
or district homeless liaison determine that the student was
unaccompanied youth who was homeless?
• At any time on or after July 1, 2014, did the director of an
emergency shelter or transitional housing program funded by
the U.S. Department of Housing and Urban Development
determine that the student was an unaccompanied youth who
was homeless.
• At any time on or after July 1, 2014, did the director of a runaway
or homeless youth basic center or transitional living program
determine that the student was an unaccompanied youth who
was homeless or self-supporting and/or at risk of being
homeless.
Parent Information on the
FAFSA
• Even if the student does not live with the parent(s) the parent(s)
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information must be used to complete the FAFSA.
Grandparents, foster parents, legal guardians, aunts and uncles are not
considered parents unless they have legally adopted the student.
If parents are living and married to each other include both.
If parent is widowed or single answer the questions about that parent.
If widowed parent is remarried as of they day the FAFSA is completed,
answer the questions about that parent and stepparent.
If parents are divorced or separated, answer the question about the
parent the student lived with the last 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.
Students unable to provide parental
information on the FAFSA
 Under very limited circumstances (for example,
student has left home due to an abusive family
environment; or student does not know where their
parents are and are unable to contact them), student
will submit the FAFSA without parental information.
 The student will skip Parental Information.
 If the student submits the FAFSA without parental
data, they must follow up with the financial aid
office at the college they plan to attend in order to
complete the FAFSA.
Before Applying
 Get a PIN-this acts as a signature and is attached
to a social security number.
 Student needs a PIN
 Parent needs PIN also
 www.pin.ed.gov or at www.fafsa.gov
 Student must keep it PRIVATE
 Complete your taxes!
 Remember the PIN is linked to your Social Security
Number so when you apply for your PIN please enter
your name as it appears on your Social Security Card.
When to Apply ?
 Each school sets their own FAFSA Priority
Deadline Dates! So make sure you check with the
institutions you plan on applying to.
 If you are attending a school in the State of Texas
you will want to file a FAFSA no later than
March 15th!
How to Apply ?
 Application Methods
 Paper FAFSA – NOT recommended due to length of
processing time.
 Download PDF at www.fafsa.gov and print out.
 Quickest and easiest: FAFSA on the Web at
www.fafsa.gov
 You may also need to apply through the college as well.
(Private and out of State Institutions may have another
Institutional Financial Aid application).
FAFSA on the Web
 FAFSA on the Web
FAFSA on the Web
 Login Using the Students PIN
FAFSA on the Web
Select Start a New FAFSA
FAFSA on the Web
 Introduction Page
FAFSA on the Web
 Questions to expect
 Citizenship
 Marital Status
 State and date of legal residence
 Selective Service Registration
 Drug Convictions
 Educational Background
 Plans for 2014-2015 school year (on campus/off campus)
 Tax information
 Cash, savings, checking
 Investments
 Net worth of business and investment farms
 Number in household
 Number in College
 Parent has a current default on a loan student will be unable to receive a loan.
2014-15 IRS Data Retrieval
 Available February 5, 2014 for 2014-2015 FAFSAs
 Can file FAFSA earlier using estimated information.
 If estimated information is used make sure to go back
when taxes are completed and make a correction, use
the Data Retrieval Tool to link the tax information into
the FASFA and resubmit.
 Links the parents/students tax income into the FASFA.
 Allow 2 weeks if taxes e-filed.
 Allow 8 weeks if taxes done on paper.
IRS Data Retrieval
IRS Data Retrieval
Sign and Submit the FAFSA
 Student and Parent use PINs to sign.
 Read and save/print confirmation page.
What to Expect After Applying
Hearing from Department of Education
 An email will be sent after the FSAFA is completed this
does not mean that the schools you have put on the FAFSA
has the information just yet.
 To check status: Student returns to www.fafsa.gov and logs
in.
 Student receives notice of Student Aid Report within about
3 days
 Student Aid Report summarizes student’s responses
 Can make corrections on FAFSA on the Web
 Student Aid Report shows Expected Family Contribution
(EFC). The EFC is used by the Financial Aid Office to
determine need based aid eligibility.
Verification
 Some students selected based on common mistakes
 Some students selected randomly
 School will ask for documents such as:
 Tax Return Transcripts (copies of the actual tax return are no longer
acceptable). Can be requested at www.irs.gov or call 1-866-704-7388.
 W2’s or 1099’s
 Divorce Decree
 Legal Guardianship
 Proof of child support paid
 Copy of birth certificates
 Passports
 Social Security
 Proof of registration with Selective Service males 18-25
 MEET SCHOOL’S DEADLINE FOR THE DOCUMENTATION
REQUEST!
 Awards can not be processed unless the additional documentation is
received in most cases.
Budget your college costs
 Don’t forget that actual expenses will vary based on
your lifestyle.
 Use a budget calculator to estimate your actual
expenses.
 College Net Price Calculator
 www.collegeforalltexans.com
Financial Aid Options
 Scholarships
 Grants
 Work-Study
 Loans
Apply for scholarships-free money!
Scholarships are a type of “gift aid” and do not require
repayment. You should always find out if you are eligible
for any gift aid before you consider borrowing money.
Note: You generally do not have to complete a FAFSA for
scholarship eligibility consideration, but it’s still a good
idea. Scholarships may or may not be partly based on
financial need.
Scholarships require some digging
 Check with your high school counselor.
 Check with your college financial aid office.
 Visit the local library.
 Ask local businesses and organizations.
 Use online scholarship searches.
Scholarships are for all kinds of
students
 Scholarship eligibility may be primarily based on one
or more of the following factors:
 Academic performance
 Athletics
 A particular field of study
 Ethnic background
 Religious affiliation
 Special interests
Grants: Gift Aid
Like scholarships, grants are a type of gift-aid
and do not require repayment.
Unlike scholarships, grants are based primarily
on your financial need (attached to the EFC).
Types of Federal grants
 Federal Pell Grant
 Federal Supplemental Educational Opportunity Grant
(SEOG)
 Teacher Education Assistance for College and Higher
Education (TEACH) Grant
Other types of grants
 State grants
 Visit the College for All Texans Web site to see what
grants are available in your state at
www.collegeforalltexans.com
 Private and institutional grants
 Grants may be available through the school you attend
or other sources, such as alumni associations and
corporate sponsorships.
Work-Study Program
 The Federal Work-Study (FWS) or Texas Work-Study
(TCWS) program provides part-time jobs for
undergraduate and graduate students with financial
need, allowing them to earn money to help pay
educational expenses.
Types of FWS/TWS jobs
The program encourages work that provides service to
the community and work related to the recipient’s
course of study.
A FWS job could be one of the following:
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Clerical position
Computer lab proctor
Museum guide
Childcare worker
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Lab research assistant
Library assistant
Food server
Usher at public events
Did You Know?
More than half of undergraduate
students cannot afford to pay for
college without incurring some form
of debt.
STOP!
A student loan is not
free money.
 Unlike a scholarship or grant, a student loan is a
financial obligation that won’t go away until it is paid
in full.
 Borrow only the amount you absolutely need to cover
your expenses.
 Think about how you’ll pay back your loan before you
borrow anything.
Stafford Loans
Stafford loans are low-interest student loans, borrowed
from lenders, available to undergraduate and graduate
students who are enrolled at least half time.
Stafford: Subsidized vs. Unsubsidized
Subsidized
Unsubsidized
Need-based
Non-need-based
Interest:
Interest:
 Government pays during
Student responsible for paying
in-school, grace, and
deferment periods
 Student pays during
repayment
 Current Rate 3.86%
 Cap 8.25%
 Can be capitalized during in-
school, grace, and deferment
periods, or
 Student can choose to pay
interest during those periods.
 Current Rate 3.86%
 Cap 8.25%
Stafford: annual loan limits for
dependent students
Stafford: annual loan limits for
independent students
Stafford: Lifetime (aggregate) loan
limits
PLUS loans
 PLUS loans are federal loans, borrowed from lenders, that
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allow a parent of a dependent undergraduate student
or a graduate student to borrow funds to help meet
educational expenses.
PLUS loans should supplement the loans borrowed under
the Federal Stafford Loan Program.
Borrowers must pass a credit check or have a creditworthy
endorser.
Annual loan limit is your cost of attendance, minus any
other financial aid.
Application is online at www.studentloans.gov parent will
login using their FAFSA PIN number.
Current interest rate 6.41%
Hearing from the School:
The Award Letter
 Offer of aid (Federal + State + School)
 Let school know about private scholarships or other
outside aid
 This could impact award
 COA – EFC = need
 Student can not receive aid over the COA
 Respond to school promptly
 Award will typically be issued through the institutions
student portal system or by mail.
What is Cost of Attendance (COA)
 The amount it will cost a student to attend an institution during a
period of enrollment.
 Direct Costs

Billed by or paid directly to the college, such as tuition and on campus
housing and meal plans.
 Indirect Costs

Necessary expenses, such as transportation and personal care items that are
not paid to the college.
 College combine direct and indirect expenses into the cost of
attendance, or student budget.
 Varies widely from college to college.
Private vs. State, In State vs. Out of State
Cost of Attendance Example
Understanding the Financial Aid Award
Letter
University of XYZ
COA=$19,500
Students EFC= $0
Financial Aid Award Example:
Award
Fall
Spring
Total
Pell Grant
$2,775
$2,775
$5,550
Freshman
Scholarship
$500
$500
$1,000
Stafford
Subsidized
$1,750
$1,750
$3,500
Stafford
Unsubsidized
$1,000
$1,000
$2,000
Parent PLUS
$3,225
$3,225
$6,450
Total
$9,250
$9,250
$19,500
Financial Aid Award Example:
Award
Fall
Spring
Total
Pell Grant
$2,775
$2,775
$5,550
Freshman
Scholarship
$500
$500
$1,000
Stafford
Subsidized
$1,750
$1,750
$3,500
Stafford
Unsubsidized
$1,000
$1,000
$2,000
Parent PLUS
$3,225
$3,225
$6,450
Total
$9,250
$9,250
LETS ANALYSIE
COA= $19,500
EFC= $0
Students Financial Need= $19,500
Students FA Award w/o PLUS= $13,050
Family’s Possible Out of Pocket
Expense=$6,450
$19,500
UNDERGRADUATE
FULL-TIME STUDENTS (15 hrs) 10/11 FALL/SPRING BUDGET
Undergraduate
Resident
On Campus
TUITION AND
FEES
ROOM AND
BOARD
Undergraduate
Resident
At Home
$7,505
$7,505
$7,232
$2,700
BOOKS AND SUPPLIES
$1,400
$1,400
TRANSPORTATION
MISC./PERSONAL
EXPENSES
$1,500
$1,545
$1,867
$1,867
TOTAL
$19,500
$15,017
Lets just look at Direct Costs:
Tuition and Fees= $7,505
Room and Board= $7,232
Total Direct Cost= $14,737
-Students FA Award= $13,050
Out of Pocket= $1,687.00
Would the Parent Need to take a
Parent PLUS out for $6,450?
Where to get Help and Information
FAFSA Help:
Live chat option at www.fafsa.gov or call 1-800-4FEDAID
Net Price Calculator, Waivers, Rebates, State Aid, State College comparisons,
TASFA:
www.collegeforalltexans.com
IRS
www.irs.gov or call 1-866-704-7388
Parent PLUS Loan Stafford Loan Information:
www.studentloans.gov
Department of Education:
www.studentaid.gov
State Loan Options:
www.hhloans.com
Kimberly Herron-Financial Aid Advisor
Texas A&M University-Commerce
[email protected]
903-886-5347

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