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FINANCIAL AID 101. WWW.FAFSA.GOV Available January 1, 2014 Promise deadline March 1, 2014 WV State Grant deadline April 15, 2014 Do NOT use fafsa.com.

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Presentation on theme: "FINANCIAL AID 101. WWW.FAFSA.GOV Available January 1, 2014 Promise deadline March 1, 2014 WV State Grant deadline April 15, 2014 Do NOT use fafsa.com."— Presentation transcript:

1 FINANCIAL AID 101

2 Available January 1, 2014 Promise deadline March 1, 2014 WV State Grant deadline April 15, 2014 Do NOT use fafsa.com – charges a fee 2 West Virginia Higher Education Policy Commission

3 The FAFSA – A Five Step Process Section Student Information Section 2 –- Student Dependency Status Section 3 –- Parental Information Section 4 –- Student Finances Section 5 – List of Schools 3 West Virginia Higher Education Policy Commission

4 How is Dependency Determined? At least 24 years old by December 31st of the year preceding the award year; Graduate or professional student; Married; Has legal dependents other than a spouse; Both parents deceased or ward of the court; Veteran or active duty for purpose other than training of the U.S. Armed Forces; or Foster care, emancipated minor, legal guardianship; Homeless or unaccompanied youth. 4 West Virginia Higher Education Policy Commission

5 FAFSA on the Web: Advantages: Answer only questions applicable to student/parent Reduces the number of errors Processed quicker Date received is the date submitted electronically Corrections can be made electronically Parents with multiple children in college will able to transfer their information to other childrens applications 5 West Virginia Higher Education Policy Commission

6 Frequent FAFSA Errors Social Security Number Parent Information Drug Question Untaxed income U.S. income taxes paid Household size Number in postsecondary education FAFSA Year 6 West Virginia Higher Education Policy Commission

7 IRS Link to FAFSA Available February for ; Allow applicants and parents of dependent applicants to transfer 2013 tax return information from an IRS Web site directly into their FAFSA; Available for initial FAFSA or correction about 2 weeks after filing tax return electronically. 7 West Virginia Higher Education Policy Commission

8 IRS Link to FAFSA If not available when you initially complete FAFSA, you can go back once taxes are done and update the FAFSA using the IRS Data Retrieval Process 8 West Virginia Higher Education Policy Commission

9 IRS Link to FAFSA In order to use the IRS Link on the FAFSA, you must enter the exact information into the website as appears on your 2013 federal tax return SSN Date of Birth Address Filing Status 9 West Virginia Higher Education Policy Commission

10 Signatures Required – Student – One parent (dependent students) Format – Electronic using PIN – Signature page – Paper FAFSA 10 West Virginia Higher Education Policy Commission

11 Federal Student Aid Personal Identification Number (FSA PIN) Apply for PIN when completing the FAFSA Sign FAFSA electronically May be used by students and parents throughout aid process, including subsequent school years Website: 11 West Virginia Higher Education Policy Commission

12 FAFSA ON THE WEB A side note: Any time you submit something online with FAFSA on the Web, you will be given a Confirmation Page to confirm your transaction. Always print and keep your confirmation page for future reference. It may prove helpful if a dispute arises. 12 West Virginia Higher Education Policy Commission

13 FAFSA ON THE WEB Application is processed in order it was received usually within 72 hours If you provide address, you will receive an with a link to view your Student Aid Report (SAR) on-line Important that you review your Student Aid Report 13 West Virginia Higher Education Policy Commission

14 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; Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or Submitting documentation to colleges financial aid office 14 West Virginia Higher Education Policy Commission

15 Verification The U.S. Department of Education randomly selects; Student must comply with institutional request for information; Use either IRS Data Retrieval Process as part of FAFSA, or Must contact IRS to request a tax transcript be sent at or by calling www.irs.gov 15 West Virginia Higher Education Policy Commission

16 Special Circumstances (Professional Judgment) Cannot report on FAFSA Send written explanation to financial aid office at each college Examples include but not limited to: – Change in employment status – Medical expenses not covered by insurance – Change in parent marital status 16 West Virginia Higher Education Policy Commission

17 FAFSA4caster Does not replace FAFSA; Allows you to get early estimate of eligibility of Federal Aid; 17 West Virginia Higher Education Policy Commission

18 Paper FAFSA Order a Paper FAFSA by calling ; Can download and print off paper FAFSA by going to Cannot submit FAFSA on the Web Worksheet as a paper FAFSA. 18 West Virginia Higher Education Policy Commission

19 Basic Application Flow Student and school receive FAFSA information from federal processor (student receives the Student Aid Report (SAR), school receives the info electronically) School matches admissions record with financial aid application and determines eligibility School mails award letter to student Student mails award letter back to school 19 West Virginia Higher Education Policy Commission

20 Financial Aid Timeline Applying to schools, taking ACT/SAT, searching and applying for private and institutional scholarships (Throughout senior year) Apply for Aid (January-February 2014) Receive Award Letter (March-May) Comply with Information Requests (March-May) Verification and Aid Coordination (Spring&Summer) Financial Aid Disbursed (Start of first term) Re-apply for Aid (January-February 2015) 20 West Virginia Higher Education Policy Commission

21 Basic Equation of Need Cost of Attendance (COA) Expected Family Contribution (EFC) Students Financial Need (eligibility) 21 West Virginia Higher Education Policy Commission

22 Cost of Attendance (varies from school to school) Tuition and fees Room and board Books and supplies Transportation Miscellaneous personal expenses Loan fees, study abroad costs, dependent or elder care expenses. 22 West Virginia Higher Education Policy Commission

23 Determining the Expected Family Contribution (EFC) Income Asset Equity (excluding home equity) Family Size Number of Family Members in College (excludes parent enrolled in college) Age of Parents 23 West Virginia Higher Education Policy Commission

24 Federal Pell Grant Program Eligible students – Undergraduates pursuing first baccalaureate or professional degree – Aid administrator determines actual award amount based on enrollment status, and EFC (under 5,081) Award amounts – Up to $5,645 maximum (in ) 24 West Virginia Higher Education Policy Commission

25 Federal Supplemental Educational Opportunity Grant (FSEOG) Eligible students – Undergraduates pursuing first baccalaureate or professional degree – Awarded first to students with exceptional financial need (i.e., students with the lowest EFCs at that school) – Priority to Federal Pell Grant recipients Annual award amounts – $100 minimum – $4,000 maximum 25 West Virginia Higher Education Policy Commission

26 West Virginia Higher Education Grant Must be WV resident Awards range from $2,500 to $2,100 depending on the EFC. The student must enroll full-time at an approved institution, demonstrate need, and file the FAFSA by April 15, Students must have a 2.0 high school gpa to be eligible Students must maintain 2.0 gpa and complete 24 credits to renew it. 26 West Virginia Higher Education Policy Commission

27 Higher Education Adult Part-Time Student (HEAPS) Grant West Virginia Higher Education Policy Commission Need-based grant Decentralized administration – Contact Institutional Aid Office for more details and to apply Traditional part-time enrollment Maximum award cannot exceed part-time tuition and fee charges or $176 per credit hour at a non- public institution for 13-14

28 HEAPS Workforce Grant West Virginia Higher Education Policy Commission Application becomes available on July 1; Contact the school for application Student must complete FAFSA and have financial need Can receive up to $2,000 or tuition and fees For Certificate or short-term training programs like certified medical training, mining, gaming, etc.

29 Requirements for the PROMISE Scholarship Eligibility Requirements 3.0 GPA in the core and overall coursework 22 on the ACT (minimum of a 20 in each of the subject areas) or 1020 on the SAT (490 verbal, 480 Math) Writing sections NOT included Put SSN when registering for test June 14, 2014 last ACT date June 7, 2014 last SAT date Core Requirements English – 4 credits Mathematics – 4 credits Social Sciences – 4 credits Natural Sciences – 3 credits The core grade point average includes all core classes 29 West Virginia Higher Education Policy Commission

30 2014 Eligibility Criteria and Deadlines For the PROMISE Scholarship PROMISE application available November 1; deadline is March 1, 2014 Ensure student uses correct SSN when completing application Submit the FAFSA by March 1, 2014 When students submit PROMISE application, student will receive confirmation number; 30 West Virginia Higher Education Policy Commission

31 PROMISE Scholarship Students go to Create a WVSAM account with username and password Allows you to go back and make any corrections to your PROMISE application Allows you to see the status of your PROMISE application 31 West Virginia Higher Education Policy Commission

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33 PROMISE Scholarship Tuition and mandatory fees at any West Virginia public or private non-profit college up to $4,750 PROMISE is renewable (for up to 8 semesters for a 4 year degree or 4 semesters for a 2 year degree) as long as the student maintains a 3.0 in college and completes 30 credit hours in a 12 month period. Student may request consideration for deferment if going out of state for up to a year or if other circumstances, please contact our office 33 West Virginia Higher Education Policy Commission

34 Federal Work-Study Employment during school Job may be on or off campus Income is taxable (state and federal) Excluded from students total income reported on next years FAFSA Program varies from school to school 34 West Virginia Higher Education Policy Commission

35 Teach Grant Students can receive up to $4,000 a year; Cannot exceed $16,000 for undergraduates or $8,000 for graduates; Student must have 3.25 gpa; Commit to teach full-time for 4 years within their first 8 years out of school or it becomes a loan; Must teach either math, science, special education, foreign language, reading specialist, or field designated by a state as high-need at at at aTitle I school. 35 West Virginia Higher Education Policy Commission

36 Teach Grant If student does not fulfill commitment: – The grant becomes like an unsubsidized loan – Interest from the time grant was disbursed is added to the amount to be paid back. 36 West Virginia Higher Education Policy Commission

37 Engineering, Science and Technology Scholarship Merit-based scholarship/forgivable loan March 1 application deadline 3.0 overall GPA Enrolled or accepted for enrollment full-time in an engineering, science or technology program (4-yr, 2- yr or certificate) Maximum annual award amount is $3,000 Application at

38 Merit-based scholarship/forgivable loan March 1 application deadline Must be enrolled as a full-time student in a course leading to a certification as a teacher at the pre-k, elementary, middle or secondary level Must have a 3.25 GPA after completing 2 years of course work (due to limited funding, high school applicants are not eligible) Maximum annual award amount is $5,000 Application at West Virginia Higher Education Policy Commission Underwood-Smith Teacher Scholarship

39 Federal Perkins Loan *** Eligible students (priority to those with exceptional need) Annual and aggregate loan limits – $5,500 annually for undergraduates – $8,000 annually for graduates – $27,500 aggregate for undergraduates – $60,000 aggregate for graduates Interest rate: 5% Nine-month grace period Deferment and cancellation provisions available ***Subject to change 39 West Virginia Higher Education Policy Commission

40 Federal Stafford Loan (Subsidized and Unsubsidized) Annual loan limits Subsidized Stafford: must demonstrate need Unsubsidized Stafford: need is not a consideration Repayment does not begin until 6 months after student drops below 6 credit hours. Loan Fee of 1.051% Interest Rate (variable-fixed) 3.86% until July 1, 2014 for undergraduates 40 West Virginia Higher Education Policy Commission

41 Federal Stafford Loan Grade LevelSubsidizedUnsubsidizedTotal Dependent Student Additional Unsub Total Freshman$3,500$2,000$5,500$4,000$9,500 Sophomore$4,500$2,000$6,500$4,000$10,500 Junior$5,500$2,000$7,500$5,000$12,500 Senior$5,500$2,000$7,500$5,000$12,500 Graduate$20, West Virginia Higher Education Policy Commission

42 Federal PLUS Loan Parent borrows on behalf of dependent undergrad Approval subject to credit check Loan limits – Annual limit: cost of attendance less other aid – Aggregate limit: none Interest rate variable-fixed at 6.41% until July 1, 2014 Loan fee of 4.204% Repayment begins 60 days after final disbursement or 6 months after student drop below half-time; Graduate Students are eligible to apply for a PLUS loan 42 West Virginia Higher Education Policy Commission

43 Institutional Aid Academic Scholarships Performance Scholarships Entitlement Scholarships Merit and Need-based Scholarships and Grant Need-based Grants and Loans 43 West Virginia Higher Education Policy Commission

44 Private Aid Community Organizations Churches Employers and Labor Unions Professional Associations Corporations / Foundations Private Loans 44 West Virginia Higher Education Policy Commission

45 Additional Financial Resources Inquire about tuition installment plans – Spreads tuition payments over several months – Low sign-up fees, low to no interest charged Consider alternative loan programs – Federal non-need based educational loans – Private educational loans – Home equity or line-of-credit loans Using Smart529 Plan – 45 West Virginia Higher Education Policy Commission

46 Additional Financial Resources Check into tax benefits for education – American Opportunity Tax Credit – Lifetime Learning Credit – Educational IRAs – Deduction for interest payments on educational loans (consult your tax advisor) 46 West Virginia Higher Education Policy Commission

47 Consumer Protection As a general rule, never pay money to get scholarships or apply for financial aid. You do not have to pay to complete the FAFSA – do NOT use HEPC and colleges provide free financial aid counseling and assistance 47 West Virginia Higher Education Policy Commission

48 Sources of General FA Information Websites – – Financial Aid Information Page (www.finaid.org)www.finaid.org – U.S. Department of Education (www.studentaid.ed.gov)www.studentaid.ed.gov – – – – 48 West Virginia Higher Education Policy Commission

49 Academic Common Market Selected programs not offered by colleges and universities in West Virginia – Students can receive in-state tuition at participating institutions – Go to for more informationwww.sreb.org 49 West Virginia Higher Education Policy Commission

50 50

51 CollegeCost.ed.gov 51

52 StudentLoans.ed.gov 52

53 Credit Cards Credit Card balance of $2,000; Interest rate of 18%; How long to pay off with minimum monthly payment of interest plus 1% of principal? – Assumes the person stops using the credit card Years West Virginia Higher Education Policy Commission

54 How Much Does That Latté Really Cost? Suppose you buy a latté every weekday at a cost of $3 each: Daily cost - $3 54 Weekly cost - $15 Yearly cost - $780 4 Years in College - $3,120 West Virginia Higher Education Policy Commission

55 Identity Theft Report theft to 3 major credit reporting agencies; Notify bank and credit cards that you carry; Check online accounts; Contact local police to file criminal report; Contact Social Security Fraud Hotline; Notify Department of Motor Vehicles; File complaint with Federal Trade Commission Document and keep copies of all correspondence 55 West Virginia Higher Education Policy Commission

56 Identity Theft Experian – Equifax – TransUnion – FTC – Social Security Fraud Hotline –

57 February 9, locations throughout the state from 1pm-4pm for more information 57 West Virginia Higher Education Policy Commission

58 Customer Service ANY PROBLEMS: Call customer service for Federal Financial Aid: Call customer service for State Financial Aid: West Virginia Higher Education Policy Commission

59 PROMISE Scholarship What do students have to do to apply? – Fill out the PROMISE application and FAFSA What is the deadline? – March 1 Where do students go to complete the PROMISE application or get more information? – West Virginia Higher Education Policy Commission

60 Higher Education Grant What is the deadline? – April 15 What is the application? – FAFSA What is the web site for the FAFSA? – West Virginia Higher Education Policy Commission

61 Contact Information Tana Pendell Program Administrator WV Higher Education Policy Commission 1018 Kanawha Boulevard, East Charleston, West Virginia or


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