Who is a Parent?

Report
2013 High School
Advisor Training
Federal and State
Update
www.oasfaa.org
About OASFAA &
This Presentation
• OASFAA is a non-profit organization comprised of
volunteer financial aid professionals.
• OASFAA has provided the information today as a free
service to access staff and high school counselors.
• You have permission to copy and distribute these
materials to your students and families. Charges may
not be assessed for the material or for the information
presented. Permission must be granted for other use of
this information or these materials. Contact the OASFAA
Outreach Chairperson(s) listed on the OASFAA website,
or e-mail the OASFAA Outreach Committee at
[email protected]
2
www.oasfaa.org
“The Guide”
“The Guide” refers to
The Guide to Federal
Student Aid.
• The Guide is available
free to download from
www.fsapubs.gov.
• A hard copy can also
be requested for free
from the same
website.
3
www.oasfaa.org
But before we get started…
• Parents and students have the
primary responsibility for meeting
college costs.
• The distribution of financial aid
resources should be based on the
family’s ability to pay—not
willingness to pay.
• The assessment of a family’s
ability to pay should be
independent of the amount of
financial aid available and cost of
attending college.
4
www.oasfaa.org
Definition of “Need”
Cost of Education (COA)
- Expected
Family Contribution (EFC)
= Need
5
www.oasfaa.org
Today’s Agenda
•
•
•
•
•
Deadline and FAFSA Overview
Program Integrity Updates
Update on Federal Aid Programs
Update on State Aid Programs
Review of Resources for Counselors
6
www.oasfaa.org
Deadline and FAFSA
Overview
7
www.oasfaa.org
Priority Deadlines
• Priority deadlines are very real,
and should be treated as such!
• Schools may have a FAFSA
deadline AND an admissions
deadline-be aware of the
difference.
Ohio’s Priority Deadline Survey features a
list of all Ohio Schools and their FAFSA deadlines.
This is published annually and available on the
Counselor’s page at www.oasfaa.org.
8
www.oasfaa.org
Priority Deadlines
• If a FAFSA priority deadline
exists, it is best to use
completed tax information
via the IRS Data Match
process.
• If taxes have not been
completed, use estimated
income and tax
information.
• Make sure to update your
FAFSA with IRS Data
Retrieval once tax filing is
complete.
9
Feb 4 is earliest that IRS will
process tax returns. We anticipate
more estimated tax returns.
www.oasfaa.org
Federal PIN Homepage
• www.pin.ed.gov
• Allows the student
and parent to
establish a federal
pin number, which
is needed to
electronically sign
the FAFSA.
10
www.oasfaa.org
FAFSA on the Web Homepage
• www.fafsa.ed.gov
• Simplified options
• An updateable
announcement
section
• Access to FAFSA
PDF and paper
FAFSA
information
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www.oasfaa.org
Need a little help
completing the FAFSA?
• “Help” icon
• Live online chat
• E-mail option
• 800-4-FED-AID
• College Goal
Sunday
• http://www.youtub
e.com/watch?v=0
31zj-PqveU
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www.oasfaa.org
Detailed College Info
and Comparison
•
•
•
•
•
•
•
College’s website
School type
Tuition and fees
Net price average
Graduation rates
Retention rates
Transfer rates
13
www.oasfaa.org
Higher Education Reconciliation Act of 2005 (HERA)
College Cost Reduction and Access Act of 2007 (CCRAA)
• Increased income protection allowance for
dependent students:
•
•
•
•
11-12
12-13
13-14
14-15
$5,250
$6,000
$6,130
$6,260
• Bust the myth!
• A summer job won’t “count
against me!”
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www.oasfaa.org
Who is considered
a Parent when
completing the
FAFSA?
15
www.oasfaa.org
Changes for 2014-2015
Beginning with the 2014-2015 FAFSA,
a dependent student will be required to
include income and other information
about both of the student’s legal parents
(biological or adoptive) if the parents are
living together, regardless of the parents’
marital status or gender.
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www.oasfaa.org
Changes for 2014-2015
• Until an April update occurs.
• Because unmarried parents may be
of the opposite sex or of the same sex, when the response
to the parents’ marital status question is “Unmarried and
both parents living together,” follow-up questions will refer to
the parents as “Parent 1 (father/mother)” and “Parent 2
(father/mother)” or simply “parents.”
• “Married” will result in “Father” and “Mother” though same
sex married couples will still need to complete both as if
“Parent 1” and “Parent 2” labels were in place.
• April update should normalize labeling as “Parent 1”
and “Parent 2”
17
www.oasfaa.org
Who is a Parent?
• Biological parents
• Adoptive parents
• Stepparents, if they are married to
the student’s biological or adoptive
parent and the student is included
in their household size
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www.oasfaa.org
Who is NOT a Parent?
• Foster parents
• Legal guardians who have not adopted the
student
• Relatives who have not adopted the
student
• Stepparents who have not adopted the
student and who would be the ONLY
person providing parental information
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www.oasfaa.org
Comparison FY14 and FY15
Dependent Student’s Parents’
Household Comprised of
Single legal parent
Two legal parents who are husband
and wife
Legal parent and stepparent
Two legal parents who are unmarried
and living together (regardless of
gender), or who are of the same sex
and are married, as recognized by a
State or foreign country
Data from 1 or 2
Parents
Collected?
Data from 1 or 2
Parents
Collected?
2013-2014
and Prior
1 Parent
2 Parents
2014-2015
and Forward
1 Parent
2 Parents
2 Parents
1 Parent
2 Parents
2 Parents
Note: A stepparent is created through legal marriage (regardless of adoption) or,
when legal marriage has not occurred, through formal adoption of an unmarried
partner’s children.
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Who is a Parent?
21
www.oasfaa.org
Who is a Parent?
22
www.oasfaa.org
Program Integrity
Updates
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www.oasfaa.org
Satisfactory Academic Progress
(SAP) Policy
• What is Satisfactory Academic Progress (SAP)?
• SAP refers to ensuring that a student
progresses toward the completion of a degree
or certificate in a timely manner, as prescribed
by the U.S. Department of Education (ED).
• ED is now requiring schools to have a SAP
policy separate from an institution’s academic
standards policy.
24
www.oasfaa.org
Elements of SAP
• ED states that every school’s
SAP policy must include three
(3) elements:
• Grade Point Average, or GPA
• 2.0 GPA or higher
• Completion Percent
• 67% cumulative completion
percent
• Maximum timeframe for
degree/certificate completion
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• 150% of the program
requirements.
www.oasfaa.org
Consequences of
Not Meeting SAP Elements
• Financial Aid
Warning
26
– A student will have one
semester of financial aid
warning. Students will still be
eligible for federal aid during
the financial aid warning
period, but must meet all SAP
elements before the beginning
of the upcoming semester.
– Schools are not required to
extend a warning period if
they only review SAP
annually.
www.oasfaa.org
Consequences of
Not Meeting SAP Elements
• Financial Aid Suspension
– A student who fails to meet all
SAP elements by the end of the
financial aid warning period will be
subject to financial aid
suspension.
– The student loses all federal aid,
and potentially lose state and
private aid, as well.
• Schools may have separate
financial aid and academic
policies. Both will apply to the
students!
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www.oasfaa.org
SAP: Appealing Financial Aid
Suspension
• Students who face
financial aid
suspension may have
the ability to appeal
the suspension.
– Appeal avenues may
vary from school to
school; please check with
the individual Financial
Aid Office to review their
specific appeals process.
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www.oasfaa.org
Verification
• What is verification?
• Financial aid verification
is the process of
establishing the
accuracy of the
information submitted
on the FAFSA.
29
www.oasfaa.org
Verification
• Why was I selected for
verification?
– The Central Processor
(a.k.a. the U.S. Department
of Education) selects
applicants for verification
based on statistical
analysis.
– An institution may also
require applicants verify
FAFSA information
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www.oasfaa.org
Verification
• How does a student
complete the verification
process?
– The best thing to do is to
read through any/all
communication received
from the institution, as it
will guide you through the
process.
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www.oasfaa.org
Verification
• Changes in the
verification
requirements.
• Other untaxed income
and benefits
• Previous verification
items are still in play!
32
www.oasfaa.org
Verification
• Documentation of untaxed income and benefits
• Untaxed income information reported in
Question 45 for the student and spouse and
Question 94 for the dependent student’s parents
• If the verified income does not appear to provide
sufficient financial support, the student or
parents must explain how the family was
supported during the 2013 calendar year
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www.oasfaa.org
Verification
• What documents are acceptable for financial
information?
• IRS Data Retrieval Tool
• http://www.youtube.com/watch?annotation_id=annotation
_112011&feature=iv&src_vid=W47_YTRVYD4&v=QJYE4
PTYRfs
• IRS Tax Return Transcript
• Students need the Tax Return Transcript, NOT the Account
Transcript unless the Account Transcript includes all of the
income and tax information required to be verified - adjusted
gross income (AGI), U.S. income tax paid, Untaxed IRA
Distributions, Untaxed Pensions, Education Credits, IRA
Deductions and Tax Exempt Interest - is acceptable (e.g., an IRS
Record of Account Transcript).
• http://youtube.com/watch?v=0wFNqs4Mqdg
• www.irs.gov or 800-908-9946
• Can also be obtained in person if you have a local IRS
office.
34
• W2’s for non-tax filers
www.oasfaa.org
Verification
• Challenges in using IRS
Data Retrieval Tool
35
• It is only available 1-2 weeks
after e-filing; 6-8 weeks
when returns are mailed.
• Address must match
EXACTLY as shown on
return.
• Folks filing an amended
return or who are married
filing separately are not
eligible.
www.oasfaa.org
Verification
• Documentation for Independent
Students
• Guardianship, ward of the court
• Must have copy of court document
• Homelessness
• Homeless liaison, pastor, school counselor
36
www.oasfaa.org
Special Circumstances
• Sometimes, things outside
of the federal mold
happen.
• Financial aid offices can
make changes to a
student’s FAFSA
information based on
special circumstances.
37
www.oasfaa.org
Net Price Calculator
• Strengths
• Designed to provide
accurate and timely
information about the net
price of a college.
• Can assist families in
comparing colleges based
on net price and financial
aid.
38
www.oasfaa.org
Net Price Calculator
• Weaknesses
• Inclusion of direct and
indirect costs in “price of
attendance” component can
significantly inflate the price
tag.
• Institution’s flexibility to
customize template could
make college costs
comparisons an extremely
complex process.
39
www.oasfaa.org
Shopping Sheet
• Some schools will be
using what’s referred
to as a “Shopping
Sheet.”
• Could replace or
supplement their
current award letter.
40
www.oasfaa.org
Update on Federal Aid
Programs
41
www.oasfaa.org
Political Climate
• Two current climate drivers
– Partisanship & Brinkmanship
– Budget politics dictating policy
42
www.oasfaa.org
Reauthorization
• The 1965 Higher Education Act governs the nation’s
student-aid programs and federal aid to colleges. Part of President
Johnson’s Great Society agenda of domestic programs, it must be
reauthorized every five years. It’s up for renewal again in 2014, and
lawmakers have begun holding hearings and soliciting input to
inform the process.
• Many changes in student-aid policy are now being made outside of
the reauthorization process, in spending bills and federal rules.
– Reauthorization still significant and some in congress have
referenced putting off major higher education policy changes
until Reauthorization occurs.
Source: The Chronicle, September 19, 2013 “What You Need to Know About Reauthorization”
43
www.oasfaa.org
Recent Legislation
• Budget Control Act (BCA) of 2011 (August 2, 2011)
•
Sequestration enacted on March 1, 2013, when Super Committee failed to reach an
agreement
• Consolidated Appropriations Act (CAA) of 2012 (December 23, 2011)
• Moving Ahead for Progress in the 21st Century Act (MAP‐21)
(July 6, 2012)
•
Introduced 150% rule for Subsidized Stafford Loans
• American Taxpayer Relief Act (ATRA) of 2012 (January 2, 2013)
• Bipartisan Student Loan Certainty Act of 2013 (August 9, 2013)
•
Interest rates on Direct loans recalculated annually
44
www.oasfaa.org
Political Climate
• What’s the takeaway?
• Student aid is caught up in a
much larger political
dysfunction & ideological
impasse.
• Reauthorization will coincide
with the 2014 election year, so
we can expect extra scrutiny
will be given to student
loans/debt as well as to the
rising costs of education.
• Next showdown is in February
as another debt ceiling looms.
45
www.oasfaa.org
Federal Aid Programs,
2014-2015
TEACH
Pell Grant
Campus Based Programs
Direct Loans
46
www.oasfaa.org
Sequestration
• Federal Loan Fees
• Subsidized and Unsubsidized loans with a first disbursement
made on or after December 1, 2013 - loan fee increased to
1.072% from 1.051%.
Example: On a $5,500 loan, the fee would adjust from
$57.80 to $58.96.
• PLUS loans with a first disbursement made on or after
December 1, 2013 – loan fee increased to 4.288% from 4.204%.
Example: On a $10,000 loan, the fee would adjust from
$420.40 to $428.80.
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www.oasfaa.org
TEACH, 2014-2015
Through Sequestration, TEACH Grants that were
first disbursed after 10/1/2013 have been reduced
by 7.2% from the award amount for which the student
would otherwise have been eligible to receive.
Grant of up to $4,000 per year to students
who intend to teach in a public or private
elementary or secondary school
that serves students from low-income families.
Service requirement upon graduation must be met,
or grant becomes an Unsubsidized Stafford Loan
that must be re-paid!!
48
www.oasfaa.org
Federal Pell Grant, 2014-2015
• Maximum award amount
increases slightly for 2014-2015
• $5,785 maximum award for
full-time enrollment and an
Expected Family Contribution
(EFC) of zero.
• Maximum Expected Family
Contribution (EFC) for Pell
eligibility has been lowered to
4995 for 2013-2014.
• It has not yet been established
for 2014-2015.
49
www.oasfaa.org
Federal Pell Grant, 2014-2015
• Students now have a
maximum number of
terms they can
receive Pell Grant
• 600% of an annual
award amount
• The equivalent of 12
full-time semesters
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www.oasfaa.org
Campus Based Programs,
2014-2015
Federal
Supplemental
Education
Opportunity
Grant (SEOG)
Federal
Work
Study
Federal
Perkins
Loan
We are anticipating a reduction in funding
for 2014-2015. However, the decrease will vary
from school to school, and exact funding amounts
have yet to be announced.
51
www.oasfaa.org
Federal Work-Study
•
•
•
•
•
Undergraduate or graduate
students are eligible
Employment can be on or off
campus
FWS wages are excluded
from EFC calculation!!!
Ohio Minimum Wage in 2014
is $7.95/hour
There is a difference between
work-study and “work” or
“summer job” on an award
letter
52
www.oasfaa.org
Federal Supplemental Educational
Opportunity Grant (FSEOG)
• Undergraduates with exceptional
financial need.
• Pell Eligible students with the lowest EFC
• Award ranges from $100 to $4000,
depending on when student applies,
financial need, and the funding and
policies of school attending.
53
www.oasfaa.org
Direct Loans, 2014-2015
• Direct Subsidized and Unsubsidized
Loans are two separate, unique types of
loans that are awarded separately.
Subsidized
Unsubsidized
Need based
Not based on financial need
Interest is fixed at 3.86% for new
undergraduate loans disbursed
during 2013-14*. Interest is
subsidized while the student is
in school and during deferment.
Interest is fixed at 3.86% for all
new loans disbursed during
2013-14*. Interest accrues
from time of disbursement
of the funds.
* Interest rates recalculated annually and are effective July 1st based on the 10-year
Treasury note index plus 2.05%, capped at 8.25%
54
www.oasfaa.org
Direct Loans, 2014-2015
Class Year
Base Amount
Additional
Unsubsidized
Amount
Freshman
$3,500
$2,000
$5,500
Sophomore
$4,500
$2,000
$6,500
Junior
$5,500
$2,000
$7,500
Senior
$5,500
$2,000
$7,500
•
Total Available
to Borrow
• Independent Students and Dependent Students whose parents
have been denied the PLUS Loan are eligible for additional
Unsubsidized Stafford Loans ($4,000 as Freshmen and
Sophomores and $5,000 as Juniors and Seniors)
55
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www.oasfaa.org
Direct Loans, 2014-2015
• Subsidized and
Unsubsidized Loans
• 1.072% origination fee*
• Parent and Graduate
PLUS
• 4.288% origination fee*
* Unless adjusted based on Sequestration
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www.oasfaa.org
Direct Loans, 2014-2015
FAFSA
MPN
Follow instructions at
school attending
Entrance Counseling
Disbursement to
student account
Notification of servicer
(instruct students to
watch and save
email/snail mail)
57
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Pay As You Earn
• Available to new Direct loan borrowers (except
Parent PLUS) experiencing financial hardship
• No loan balance as of October 1, 2007, and
• Received a Direct loan on or after October 1, 2011
• Borrower qualifies if annual monthly student loan
payments exceed 10% of “discretionary income”
• Similar to IBR, borrower’s monthly payment will be
determined by a formula that takes into account family
size and adjusted gross income. Increases in income
will impact the required monthly payment amount
• Unpaid balance may be forgiven after 20 years of
qualifying repayment (which is a taxable event)
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Public Service Loan Forgiveness
• Under this program, borrowers may qualify for
forgiveness of the remaining balance of their Direct
Loans after they have made 120 qualifying payments on
those loans while employed full time by certain public
service employers.
• Only loans you received under the William D. Ford
Federal Direct Loan (Direct Loan) Program are eligible
for PSLF.
• There are many rules that must be followed.
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www.oasfaa.org
Direct Loans, 2014-2015
• Parent PLUS Loans
• Loans to parents of dependent students.
• Loan limits are up to the cost of education
less any financial aid received.
• Interest rate is 6.41% fixed.*
• Repayment begins within 60 days of full
disbursement. Payments may be deferred
while the student is in school.
• FAFSA completion is required.
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* Interest rates recalculated annually and are effective July 1st based
on the 10-year Treasury note index plus 4.60%, capped at 10.50%
www.oasfaa.org
Undergraduate Student Aid by
Source and Type (in Billions), 2012-13
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www.oasfaa.org
Update on State Aid
Programs
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www.oasfaa.org
Ohio Aid Programs, 2013-2014
•
•
•
•
•
•
Ohio College Opportunity Grant (OCOG)
War Orphans Scholarship
National Guard Scholarship
Academic Scholarship
Safety Officers Memorial
Nurse Education Assistance Loan
Program (NEALP)
• Choose Ohio First
63
www.oasfaa.org
Historical Look at
Need-Based Ohio Aid
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www.oasfaa.org
Ohio College Opportunity Grant
(OCOG)
•
•
•
•
•
Students must file the FAFSA, be Ohio residents, and
attend an Ohio public university main campuses (not
regional campuses or community colleges),
Ohio private, non-profit colleges or universities, and
Ohio private, for-profit institutions.
The Expected Family Contribution (EFC) is the index
number for awarding OCOG
EFC eligibility range is from 0000-2190
A part-time student will receive a pro-rated award
Available for continuous enrollment (including
summer)
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www.oasfaa.org
OCOG, 2013-2014
–
From https://www.ohiohighered.org/ocog
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www.oasfaa.org
OCOG, 2014-2015
• 2014-2015 is the
second year of the
new biennium budget.
• Although we are
optimistic that awards
will not change, we
just don’t know.
67
www.oasfaa.org
War Orphans Scholarship,
2013-2014
• For Ohio dependents of deceased or
majority disabled veterans.
• The current annual, full-time award is 93% of
tuition and general fees at all Ohio public
colleges and universities.
• The current annual, full-time award for students
at eligible private colleges and universities (both
non-profit and for-profit) is $6,628.
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www.oasfaa.org
Ohio National Guard Scholarship,
2013-2014
• Eligibility determined by the Ohio Adjutant
General.
• The current annual, full-time award is 100% of
tuition and general fees at all Ohio public
colleges and universities.
• The current annual, full-time award for students
at eligible private colleges and universities (both
non-profit and for-profit) is $9,290.
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www.oasfaa.org
Safety Officers Memorial
Scholarship, 2013-2014
• For Ohio dependents and spouses of safety
officers killed in the line of duty.
• The current annual, full-time award is 100% of
tuition and general fees at all Ohio public
colleges and universities.
• The current annual, full-time award for students
at eligible private colleges and universities (both
non-profit and for-profit) is $6,618.
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www.oasfaa.org
NEALP, 2013-2014
Loans for RN candidates and
graduate nurse faculty students
Loans can be forgiven
with 4 to 5 years of
service as a nurse
or nurse instructor
in Ohio upon
completion of degree
Loans range from
$1,500 to $5,000
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www.oasfaa.org
Choose Ohio First, 2013-2014
• Various programs with STEM
concentrations
• State funding for these programs increased
slightly for 2013-2014, but individual awards will
vary from school-to-school.
• Partnerships of private/public schools
apply for funding (ex. Public community college
and private four-year institution).
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www.oasfaa.org
Ohio Education and Training
Voucher Program
• www.statevoucher.org
• Eligibility requirements
• In foster care on their 18th
birthday and aged out at
that time.
• Adopted from foster care
with the adoption finalized
after their 16th birthday
• Foster care case closed
between the ages of 18
and 21.
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www.oasfaa.org
Review of Resources
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www.oasfaa.org
College Goal Sunday
• Sunday, February 9,
2014
• www.ohiocollegegoal
sunday.org
• Student/Family
registration is now
available.
• Please check the
website for locations
near you.
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www.oasfaa.org
Request a Financial Aid Night
Presenter
http://www.oasfaa.org/docs/toc_counselors.html
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www.oasfaa.org
Ohio School Counselor Resources
“Binder”
http://www.oasfaa.org/docs/toc_counselors.html
• “Ohio School Counselor Resource Binder Inserts”
• UPDATES AVAILABLE JANUARY 2014
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www.oasfaa.org
Financial Aid Toolkit
• Consolidates and organizes FSA resources and content into
a searchable online toolkit
• For organizations and individuals that
interact with, support, or counsel
students and families on funding a
postsecondary education
• Targeted to high school guidance
counselors and college access
professionals
• FAAs may use toolkit to support student
outreach efforts
• FAAs can also help spread the word about the toolkit to
organizations that work with students and families
• Replaces FSA4counselors.ed.gov
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www.oasfaa.org
Resources
http://studentaid.gov/
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www.oasfaa.org
Resources
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College Scorecard
81
http://www.whitehouse.gov/issues/
education/higher-education/
college-score-card
www.oasfaa.org
Resources
www.fsa4counselors.ed.gov
Watch for new
Counselor Financial
Aid Toolkit to be
released in December
2013
82
www.oasfaa.org
Resources
http://studentaid.ed.gov/about/data-center/
student/application-volume/
fafsa-completion-high-school
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www.oasfaa.org
Resources
• Federal Student Aid Information Center
(inside cover of “The Guide”)
• (800)433-3243
• www.federalstudentaid.ed.gov
• Federal Student Aid Publications Website
• www.fsapubs.gov
• Ohio Higher Education Hotline
• (800)233-6734
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Questions/Comments?
• Questions or Comments?
• Please complete evaluations.
• THANK YOU FOR ATTENDING!
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www.oasfaa.org

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