Presentation is loading. Please wait.

Presentation is loading. Please wait.

FINANCIAL AID INFORMATION 2010-11 Academic Year Presented by: Student Financial Services Bureau State of Michigan Michigan Department of Treasury

Similar presentations

Presentation on theme: "FINANCIAL AID INFORMATION 2010-11 Academic Year Presented by: Student Financial Services Bureau State of Michigan Michigan Department of Treasury"— Presentation transcript:

1 FINANCIAL AID INFORMATION 2010-11 Academic Year Presented by: Student Financial Services Bureau State of Michigan Michigan Department of Treasury

2 What You Will Learn Today Section 1 General Financial Aid Overview Types and Sources of Financial Aid Free Application for Federal Student Aid (FAFSA) Section 2 Federal Programs Section 3 State of Michigan Programs Section 4 –Scholarship Searches and Scams –Other Resources

3 What is Financial Aid? Money for postsecondary education expenses - Need-based vs. Non-need (Merit) based - Campus-based vs. Student-based

4 Purpose of Financial Aid Promote accessibility Produce educated workers Help retain good students Provide incentives Reward academic achievements Influence choice

5 Types of Financial Aid Gift Aid - Scholarships - Grants Self Help Aid - Work-Study - Educational Loans Students Parents Tax Credits & Deductions

6 Financial Aid Principles Paying for the student s educational costs is the primary responsibility of the student and the parent(s) Families are evaluated on ability to pay for educational costs – not willingness Families are reviewed and assessed in their present financial condition Families are evaluated in an equitable and consistent manner, recognizing that special circumstances may affect a family s ability to pay

7 Expected Family Contribution Determined by Federal formula from the information reported on the FAFSA Parents contribution from income and assets +Students contribution from income and assets =Expected Family Contribution (EFC)

8 Financial Aid Eligibility Equation Cost of Attendance -Expected Family Contribution = Financial Need

9 Cost of Attendance Tuition and fees Room and board Books, supplies, equipment, transportation, and miscellaneous personal expenses Loan fees Study abroad costs Disability related expenses Dependent or elder care expenses Cooperative education program costs

10 Comparing Need Independent Colleges Public 4 Year Community Colleges Independent Colleges Cost of EFC Need Attendance Public 4 Year Community Colleges $28,065 $18,247 $10,161 $1,000 $27,065 $17,247 $9,161

11 General Eligibility Requirements U.S. citizen or eligible non-citizen High school graduate, pass the GED test, or have the ability to benefit (as determined by a standardized test) Enroll in a degree or certificate program (may not be a regular high school student at the same time) Register with selective service, if required May not have eligibility suspended or terminated due to drug-related conviction Maintain satisfactory academic progress

12 Undergraduate Student Aid by Source (in Billions), 2008-09 Source: The College Board, Trends in Student Aid 2009

13 Seniors, Get Organized! November College admissions applications College essays Letters of recommendation Mail applications as early as possible SAT tests December Wrap up college applications before winter break. Early application responses arrive this month. Get your PIN number. (Remind parents to get a PIN also) January File the FAFSA between now and the end of February

14 Free Application for Federal Student Aid (FAFSA) Only form approved for awarding federal aid – no fee Collects family s personal and financial information Available in English and Spanish Filing Options Electronic (preferred) Paper

15 FAFSA Information & Tips File as soon as possible after January 1 State Priority Date: Due at processor by March 1 Estimated prior year figures may be submitted Dependent student and at least one parent whose information is reported must complete and sign the FAFSA each year Independent student does not need a parent s signature

16 Personal Identification Number (PIN) Serves as electronic signature on U.S. Department of Education (ED) documents. Obtain PIN at: -, - 1-800-4-FED-AID Response Time - Email: Immediately - Mail:7 to 10 days Each student and at least one parent must have a PIN to use as an electronic signature on the FAFSA.

17 Click here for access to the paper FAFSA, a link to online version, as well as the FAFSA worksheet.

18 FAFSA Overview Section 1:Student Information Section 2:Student Dependency Status Section 3:Parental Information Section 4:Student Finances Section 5:Colleges to Receive Information

19 Information Needed Before starting the FAFSA, gather: - Student s driver s license - Student Alien Registration Card - Student and Parent prior year tax information Social Security cards Social Security cards W-2 forms and other records of money earned W-2 forms and other records of money earned Federal income tax form (even if not completed) Federal income tax form (even if not completed) Records of untaxed income Records of untaxed income Current bank statements Current bank statements Business, farm, and other real estate records Business, farm, and other real estate records Records of stocks, bonds, and other investments Records of stocks, bonds, and other investments Create a file for copies of all financial aid documents Create a file for copies of all financial aid documents

20 Student Information Demographic information Data matches - DHS (citizenship)- Social Security - IRS- Selective Service - NSLDS - Veteran s Administration Be careful on: - Spelling of name (as it appears on Social Security card) - Social Security Number - Date of Birth - Email address (All correspondence will be sent to this address.)

21 Collects information about the student s: - Residency - Selective Service - Males can register with Selective Service - Drug Conviction Status (DO NOT SKIP) - Parents College Education - Education Goals (unsure? mark full-time) - Interest in Work-Study and Loans Answering Yes to work-study and loans does not obligate the student Student Information (continued)

22 Student Dependency Status Determines student s dependency status An independent student is one who: Is 24 years of age, or Is married, or Is working on a master s degree or higher, or Is currently serving on active duty in the U.S. Armed Forces, or Is a veteran of the U. S. Armed Forces Has a legal dependent who receives more than half their support from the student, or Is an orphan or ward of the court Is an emancipated minor or unaccompanied youth Was a foster child or ward of the court after the age of 13 All other students are dependent

23 Parental Information A dependent student must complete this section: Report information for biological or adoptive parent(s) Which parent to use if divorced/separated: In the past 12 months: Which parent did you live with more, or Which parent provided more financial support? Not considered parents: Grandparents Legal guardians Foster parents Collects parents : Marital status Social Security Numbers, last name, date of birth Residency (important for state aid) Income tax filing status and prior year s income Exemptions and number in household

24 Parental Information (continued) How many in household will be in college (exclude parents from number in college) Information about the parent s untaxed income and benefits - Retirement contributions- Welfare benefits - Child support received- Disability benefits - Workmen s comp benefits- Tax exempt benefits - Untaxed portion of social - Military security benefits and pensions Information that can be excluded from parental income - Education tax credits - Child support paid

25 Parental Information (continued) Investment Assets - Include: Trust funds, 529 college savings plans, mutual funds, real estate, investments, second home, vacation home, or rental home - Do not include: Primary residence, retirement funds (IRAs, 401k, 403b, Keogh, SEP, etc.) Business and Farm Assets - Do not include: Farm that you live on and operate - Do not include: A small business (family owns more that 50%) that has 100 or fewer full time equivalent employees

26 Student Finances Collects students Prior year income (tax filing status, type and amount of income) Students assets and veterans education benefits Independent students household and exemptions Untaxed income and benefits Information that can be excluded from income Net Worth: Current value minus debt Report the worth as of the date you file the FAFSA Current value of cash, checking, and savings accounts Investment Assets Include: Trust funds, UGMA accounts, etc. Business and farm assets (not primary residence)

27 Schools to Receive Information List up to 10 colleges the student is considering (list 4 on the paper FAFSA) - Online search capabilities for school codes - List at least one Michigan college choice Indicate the type of housing plan for each school All colleges listed will have access to the student s FAFSA records electronically

28 Professional Judgment Professional Judgment refers to the authority of a college's financial aid administrator to make adjustments to the data elements on the FAFSA and to override a student's dependency status. Each college is responsible for approval Results may differ between colleges Emancipation, Homeless, and Unaccompanied Youth Financial aid office may require student to provide a copy of the determination if student answered yes to these questions.

29 Special Circumstances Financial circumstances may change in year of filing. Contact the Financial Aid Office if there is: Loss or reduction in parent or student income or assets Death or serious illness Natural disasters affecting parent income or assets Unusual medical or dental expenses not covered by insurance Reduction in child support, social security benefits or other untaxed benefit Financial responsibility for elderly grandparents Any other unusual circumstances that affect a familys ability to contribute to higher education

30 Completing FAFSA on the Web- FOTW More than 95% of FAFSAs are now filed online. Parents with more than 1 college student can transfer data from original application to others Faster turnaround; more accurate

31 FOTW Worksheet Families can use time wisely by completing a worksheet before accessing FOTW Available on Web site, order worksheets at or by phone 1-800-394-7084 View a draft of the worksheet on the Web at the URL below. - Click on FAFSAs and Renewal FAFSAs link under Publications

32 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 corrections More detailed instructions and help for common questions Ability to check application status online

33 Submit the FAFSA Transmit FOTW with appropriate signatures, or Mail the original paper FAFSA to the address listed on the front of the FAFSA Keep a file containing FOTW worksheet Copy of tax returns Copy of income documents, and asset information Student and parent PINs

34 Practice FAFSA Options FAFSA Demo site Web address: User name: eddemo Password:fafsatest FAFSA4Caster Simulates FOTW Provides early estimate of Federal aid eligibility Can transfer information to FOTW when ready to file FAFSA

35 Whats New for 2010-11: FAFSA Student marital status - question #16: Report your marital status as of the date the FAFSA is signed; cannot be updated State deadlines updated – Michigan, March 1, 2010 (must be received by this date) Questions 44(f) and 92(f) collect amounts earned from co-op programs at colleges; it will be excluded from income

36 Whats New for 2010-11: FOTW Male students over the age of 26 will not be asked whether they want to be registered for Selective Service. Students who are independent because of their age or marital status will be asked only the dependency status questions regarding children or other dependents. Certain criteria has been added for certain homeless students to be considered independent.

37 Whats New for 2010-11: FOTW First-time college students will not see the drug conviction eligibility question because these applicants have never received Title IV aid. Veterans educational benefits are not considered as estimated financial assistance.

38 Whats New for 2010-11 Children of Soldiers Maximum Federal Pell Grant eligibility for a student whose parent or guardian was a member of the Armed Forces and died as a result of performing military service in Iraq or Afghanistan after 9/11/2001, provided that child was under 24 years old or was enrolled in college at the time of the parent or guardians death. Eligible students will be identified through the Departments of Defense and Veterans Affairs

39 Whats New for 2010-11 Special Exceptions Students parents refuse to provide information for FAFSA Student can borrow an unsubsidized Stafford loan only-must document with college or university Student doesnt have contact with parents due to estranged relationship or other circumstances (possible dependency override)-documentation required-must contact financial aid office at college/university

40 REVIEW FOTW Filing Tips Gather necessary documents ahead of time Complete a FOTW Worksheet Be aware of deadline dates Save all work periodically Check the FOTW for accuracy Student and parent sign using PIN Print a copy of the FOTW before submitting Keep a copy of the Confirmation Page


42 Other Important Tips for Students Encourage students to submit the FAFSA between January 1 and March 1, 2010 Due to economic circumstances in Michigan, colleges/universities have experienced an increase in financial aid applications Submitting the FAFSA after high school graduation is considered late by most schools Student may not have funds available when classes start if they apply late Respond promptly to requests for information Delays can mean losing funds for which the student may be eligible

43 COLLEGE NAVIGATOR Find out information about the school you want to attend.

44 Supplemental Forms Institutional application Stafford loan application Parent (PLUS) Loan application CSS Financial Aid PROFILE (school aid)

45 After Submitting the FAFSA FAFSA information is received, processed, and the results are sent to: The student The college(s) The Michigan Department of Treasury, Office of Scholarships and Grants

46 Student Aid Report (SAR) The SAR summarizes the information you report on your FAFSA. The schools listed on your FAFSA receive copies of your SAR and use the information to determine if you are eligible for federal student aid. If you filed online and provided a valid e-mail address, you will receive an e-mail within a few days of filing that contains a secure link so you can access your SAR on the Web. If you filed a paper FAFSA or did not provide a valid e-mail address, you will receive a paper SAR in about three to four weeks after submitting the FAFSA. It is crucial that you review it and make sure it is accurate and complete.

47 Review the SAR Review the SAR for accuracy; if corrections are needed, correct online or contact college The Financial Aid Office will review your documents and determine your aid eligibility SAR may be selected for verification (verification requires submission of income documents and a verification worksheet) Aid cannot be processed until all required documents have been submitted to the Financial Aid Office

48 Correspondence from College Everyone who applies will receive notification from the college regarding their eligibility Read all correspondence and promptly follow instructions You do not have to accept all award types, but the college may not replace it with something else Contact the Financial Aid Office if you have questions about your award

49 ABC UNIVERSITY Office of Student Financial Aid Financial Aid Award Samantha A. Student March 22, 2010 College Way Award Year: 2010-11Anytown, VA 20000 SSN: 123-45-6789 Dear Ms. Student: After reviewing your FAFSA, we are pleased to provide you with the following financial aid offer. This award is contingent upon anticipated annual renewal of funding from federal, state, and private sources. You may accept or decline any of the awards offered. Projected Cost of Education - $15,000Expected Family Contribution - $3,000 Total Financial Need$12,000 Type of Aid Fall - SpringTotalAccept Decline Pell Grant$600 - $600$1,200( ) ( ) FSEOG$800 - $800$1,600( ) ( ) SLM Grant$1,000 - $1,000$2,000( ) ( ) Work-Study$700 - $700$1,400( ) ( ) Perkins Loan$600 - $600$1,200( ) ( ) Stafford Loan $1,300 - $1,300$2,600( ) ( ) Total$5,000 - $5,000$10,000 Please sign this letter and return it to the financial aid office within two weeks. Read the enclosed information on how to apply and receive the Federal Stafford Loan offered in this letter. If you need additional funding to supplement this offer, please refer to the attachment for information on additional funding options. Signature

50 Federal Programs Need-based Pell Grant Federal Supplemental Educational Opportunity Grant (FSEOG) Academic Competitiveness Grant (ACG) National Science and Mathematics Access to Retain Talent (SMART) Grant Work-Study Perkins Loan Subsidized Stafford Loan Non need-based Unsubsidized Stafford Loan Parent Loan (PLUS) Grad PLUS Loan Robert C. Byrd Honors Scholarship Teacher Education Assistance for College and Higher Education (TEACH) Grant

51 Need-Based Federal Aid Federal Pell Grant Undergraduates pursuing first bachelor s degree Amount determined by the EFC Award prorated base on enrollment status Portable Annual Award Limits (currently) $976 to $5,350 Federal Supplemental Educational Opportunity Grant (FSEOG) Undergraduates pursuing first bachelor s degree Priority to Pell recipients Maximum is $4,000

52 Need-Based Federal Aid (continued) Academic Competitiveness Grant (ACG) Eligible for a Federal Pell Grant U.S. Citizen Enroll full-time as 1st or 2nd year undergraduate student Complete a rigorous program of study in high school Maximum award 1st year - $750 Maximum award 2nd year - $1,300 Portable

53 Need-Based Federal Aid (continued) National Science and Mathematics Access to Retain Talent (SMART) Grant Eligible for Federal Pell Grant U.S. Citizen Enroll full-time as a 3rd or 4th year undergraduate student Achieve a grade point of at least a 3.0 Pursue a four-year degree in physical, life, or computer science; mathematics; technology; engineering; or foreign languages critical to national security Maximum award for 3rd and 4th years is $4,000 Portable

54 Need-Based Federal Aid (continued) Federal Work-Study Employment may be on or off campus Available for part-time and full-time students, undergraduates and graduates Wages vary depending on type of work Federal Perkins Loan Maximum is $5,500 a year for full-time or part-time undergraduate students Interest rate fixed at 5% Nine (9) month grace period Deferment and cancellation provisions available

55 Need-Based Federal Aid (continued) Federal Subsidized Stafford Loan Federal Family Education Loan Program (FFELP) - Funds provided by lenders (e.g., banks or credit unions) Federal Direct Loan Program (Direct Loan) - Funds provided directly by federal government via participating schools School determines eligibility; delivers proceeds to student Annual loan limits: $3,500 for 1st year undergraduates$3,500 for 1st year undergraduates $4,500 for 2nd year undergraduates$4,500 for 2nd year undergraduates $5,500 for each remaining undergraduate year$5,500 for each remaining undergraduate year Interest rate fixed at 5.6% (loans made after July 1, 2009) Six (6) month grace period Deferment, forbearance, and cancellation provisions available ED pays interest while in school

56 Non Need-Based Federal Aid Stafford Unsubsidized Loan FFELP or Direct Fixed 6.8% Interest Rate (after July 1, 2009) Student charged interest while in school PLUS Loan Parent loan program for parents of dependent undergraduate students (parents must have good credit history) Annual loan limit – cost of attendance (COA) minus other aid Fixed interest rate - 8.5% for FFELP PLUS Loan - 7.9% for Direct PLUS Loan Repayment begins 60 days after loan is fully disbursed Only principal may be deferred under certain conditions; interest may be capitalized Grad PLUS Loan Available to graduate students

57 Non Need-Based Federal Aid (continued) Robert C. Byrd Honors Scholarship Nominated by high school principal Maintain satisfactory academic progress Enroll full-time U.S. citizen or permanent resident Selective Service Registration, if required Maximum award is $1,500 Portable and renewable for four years Teacher Education Assistance for College and Higher Education (TEACH) Grant U.S. citizen Undergraduate or graduate at eligible school Be enrolled in course work that is necessary to begin a career in teaching or plan to complete such course work. Maintain at least a 3.25 GPA Sign a TEACH Grant Agreement to Serve Maximum award is $4,000

58 State of Michigan Programs Need-Based Michigan Competitive Scholarship Michigan Tuition Grant Tuition Incentive Program Non Need-Based Children of Veterans Tuition Grant College Savings Plans MET MESP

59 Need-Based Michigan Aid Michigan Competitive Scholarship Undergraduate students at approved MI postsecondary institutions Student must demonstrate need and have qualifying ACT score Enroll at least half time MI resident Maintain minimum GPA of 2.0 in college to renew

60 Need-Based Michigan Aid (continued) Michigan Tuition Grant Students enrolled at MI independent, non- profit, degree-granting college/university Must demonstrate financial need MI resident Enroll at least half time Meet institutions SAP requirements for renewal

61 Need-Based Michigan Aid (continued) Tuition Incentive Program Must have been Medicaid Eligible for 24 months out of 36 consecutive months Pays a maximum of 24 semester or 36 term credits per academic year including mandatory fees Qualified students are sent application form Return form prior to: High school graduation or GED completion 20th birthday

62 Non Need-Based Michigan Aid Children of Veterans Tuition Grant Tuition assistance for children older than 16 and younger than 26 who are the natural or adopted child of a certain deceased or disabled Michigan veteran. Eligibility Criteria Michigan resident Enroll at least half-time Maximum Award Amounts $2,800 per year for full-time $2,100 per year for three-quarter-time $1,400 per year for half-time

63 College Savings Plans Current IRAs Education IRAs 529 College Savings Plans Coverdell Education Savings Account UGMA/UTMA Accounts Parents Investment Account

64 Michigan College Savings Plans Michigan Education Trust (MET) Pre-paid undergraduate tuition at today s prices – three contract types Maximum contributions – 4 years of prepaid contract purchase Use for tuition and mandatory fees Total contract price eligible for state tax deduction No tax on distributions used for higher education expenses Monthly purchase by payroll deduction, ACH or coupon book Michigan Education Savings Program (MESP) Savings/Investment program Maximum contributions – $235,000 Use for higher education related expenses Contributions of $5,000 (single) or $10,000 (joint) eligible for state tax deduction No tax on withdrawals used for higher education expenses Seven investment options

65 Tax Credits and Deductions American Opportunity Tax Credit Maximum credit of $2,500 100% of the first $2,000 of qualified expenses 25% of the next $2,000 qualified expenses Lifetime Learning Tax Credit Maximum credit of $2,000 Student Loan Interest Tax Deduction Deduct up to $2,500 of student loan interest paid Refer to: Publication

66 Other Resources Loan of Last Resort Various lending institutions Check with college financial aid office Credit-based loans: interest rates from 4% -15% Co-signer may be required (lower interest rate) Major/area of study may influence repayment terms Watch for fees: disbursement, repayment, co-signer Watch for marketing gimmicks Institutional Resources Trustee Scholarships Foundation Endowment Scholarships Faculty Academic Scholarships Short Term Loans

67 Other Resources (continued) Private Resources Professional associations Foundations Corporations Community organizations Civic Religious Social Alumni Commercial lending institutions Place of employment Research institutes

68 Searching for Resources the Traditional Way Check your high school bulletin board(s) or ask your guidance counselor Check with local businesses, civic, and social organizations Review library reference books Inquire with employer or parents employer

69 Scholarship Searches The College Board Thomson Petersons Mapping Your Future FinAid (FastWeb)

70 Scholarship Scams If it sounds too good to be true... Victims of scholarship scams lose more than $100 million annually Paying money to get money is a scam Duplicates what you can find out for free Watch for Scholarships with application fee Scholarship services who guarantee success Sales pitches disguised as financial aid seminars Refer to

71 Summary Student must: Apply for admission to the college(s) Apply for PIN access code Complete and submit the FAFSA/Renewal Check with college for other required forms and documents Review Student Aid Report (SAR) Submit required documentation to the Financial Aid Office as soon as possible Financial Aid Office will: Determine eligibility Package aid Send award letter or denial letter

72 Contacts : For Questions or Additional Information General Information 1-800-642-5626, Ext. 37054 Email: Web Site: Office of Scholarships and Grants 1-888-4-GRANTS Email: Web Site: Michigan Education Trust (MET) 1-800-MET-4-KID Email: Web Site: www. Setwithmet.comwww. Michigan Education Savings Program (MESP) 1-877-861-MESP Email: Web Site: Michigan Postsecondary Handbook Look for the hyperlink on the right side of the page under Quick Links.

Download ppt "FINANCIAL AID INFORMATION 2010-11 Academic Year Presented by: Student Financial Services Bureau State of Michigan Michigan Department of Treasury"

Similar presentations

Ads by Google