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Financial Aid Night Presented by Valerie Knopp St. Cloud State University.

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Presentation on theme: "Financial Aid Night Presented by Valerie Knopp St. Cloud State University."— Presentation transcript:

1 Financial Aid Night Presented by Valerie Knopp St. Cloud State University

2 Dear Dad… $ chool i $ really gr8. I am making lot $ of friend $ & $ tudying very hard. W/all my $ tuff, I $ imply cant think of anything I need, $ o if u would like, u can ju $ t $ end me a card, a $ I would love to hear from u. <3 ur $ on $ ent from my iPhone

3 Dear Son… I k NO w that astro NO my, eco NO mics and ocea NO graphy are e NO ugh to keep even an ho NO r student busy. Do NO t forget that the pursuit of k NO wledge is a NO ble task and you can never study e NO ugh. Love, Dad Sent by

4 Myths to Qualify for Financial Aid We make too much money to qualify We have too many assets to qualify Its not worth completing the application (FAFSA)

5 What well cover… Application Process Definition of Need Aid Types and Sources Need Analysis Formula (optional)

6 Application Process

7 Who is eligible? U.S. citizen or permanent resident High school graduate/GED holder/Home school Certificate Eligible degree/certificate program Valid Social Security number Registered with Selective Service (males 18 years old) No conviction for drug offense while receiving federal aid Satisfactory academic progress

8 How to Apply Free Application for Federal Student Aid (FAFSA) Online at – fastest, most efficient As soon as possible after January 1st – earlier the better Watch out! Only use site – anything else and you will be charged and your results may be delayed Check the schools deadlines Paper FAFSA Download from - select FAFSA Filing Options Order by phone FED-AID School Form or CSS Profile (if applicable)

9 Government Philosophy on Financial Aid Three partners who share responsibility for educational costs: students, parents, and taxpayers (government). Parent and student responsibility to pay for college expenses to the extent that they are able before federal or state funds are used. FAFSA – determines an EFC (Expected Family Contribution) to make a consistent evaluation of each familys financial circumstance.

10 FAFSA on the Web Apply/Reapply Apply for PIN Filing Deadlines IRS Data Tool (DRT) available late February 2013 Find college codes Check status of FAFSA Make corrections Print SAR FAFSA4caster

11 Filing Deadlines See state Deadlines at Minnesota State Grant deadline is 30 th day of the start of the term Check with the schools - college deadlines vary and may be early. Check with the individual college

12 Personal Identification Number (PIN) Apply for a PIN or have PIN and forgot it? When completing the FAFSA (real time), or at the PIN website Forgot your PIN? Request a Duplicate PIN at PIN website Student and at least one parent need a PIN Use your PIN to: IRS Data Retrieval Tool (DRT) to complete the FAFSA Sign your FAFSA electronically Check the status of your FAFSA or Make corrections to your FAFSA Sign Master Promissory Note (MPN) for federal loans (student and PLUS) Look up students loan and grant history ( )

13 FAFSA on the Web Main page once logged in Renewal or New FAFSA Remember to select the correct award year PIN status NOTE: After 1/1/13 the two options will be and

14 Step 1: Beginning a FAFSA

15 Step 2: Filling out the FAFSA

16 High School (high school grads only)

17 School Codes (up to 10) Finding School Codes: FAFSA on the Web search Paying for College booklet ( Minnesota schools only) Schools website

18 Dependency Questions If student answers NO to all questions, parent information must be included on the FAFSA.

19 Special Circumstances (dependent students only)

20 Who is a Parent for the FAFSA? Biological, adoptive, or step-parent Grandparent, foster parent, other relative or legal guardian (who are not the parent) are NOT considered parents unless they legally adopted the student.

21 Entering Parental Data

22 IRS Data Retrieval Tool (DRT) 22 Who can use it? Dependent and independent students (parents of dependent students) who meet ALL criteria: Valid SSN Filed a 2012 IRS tax return, AND Unchanged marital status since December 31, Available approx. late February 2013 Displays if student (or parent, for dependents) selects tax filing status of Already completed

23 Application Type (English) # of Applicants Completion Time (in minutes) FAFSA3,455,61637:04 EZ FAFSA329,12032:02 Renewal4,003,10927:13 EZ Renewal394,26819:52 Application Statistics* Average completion time for NEW FAFSAs filed January 1, September 30, Application Type (English) # of Applicants Completion Time (in minutes) FAFSA3,879,26919:03 EZ FAFSA594,76516:31 Renewal4,894,16914:36 EZ Renewal774,07910:60 *From 2012 Federal Student Aid Conference

24 What if I filed without using IRS DRT?

25 IRS DRT (cont.) Check tax filing status Already completed If Married Filing Separately applicant is ineligible to use IRS DRT NOTE: If you recently filed taxes, you wont see IRS DRT. 2-3 weeks after you file electronically, correct the FAFSA, change this to None of the Above, and then use IRS DRT

26 IRS DRT (cont.) IRS Interface Insert all information exactly as it appears on your federal tax return (e.g. St. for Street or Street for St.)

27 Transfer IRS data to FAFSA REMEMBER Select the box and the Transfer Now button. Include earnings from work on the FAFSA after data transfer

28 What if I dont use the IRS DRT? If youre selected for verification and did not use the IRS DRT, you must provide a Tax Return Transcript issued by the IRS. NOTE: A Tax Account Transcript does not provide sufficient information.

29 FAFSA saved up to 45 days

30 Entering Income Information (student view – same for parent) If entering estimated income information, click here. REMEMBER: Update your information once you complete your federal income tax return.

31 Sign and Submit the FAFSA Both student and parent must sign. Save: You store the data to retrieve later (up to 45 days). Submit: Your FAFSA will be processed.

32 Confirmation Page Transfer sameparent info for a (dependent) sibling need? Click the link on the confirmation page to forward parent info from your FAFSA to your siblings. Estimate based on data entered. School will determine eligibility.

33 NEW for : MN On-Line Student Eligibility Questionnaire First optional feature only appears for dependent students Student must click on MN link on Confirmation page to be redirected to OHE on-line questionnaire

34 Step 3: FAFSA Follow-up Make Corrections to a Saved FAFSA Check status of a submitted FAFSA Print Signature Page (if not signed electronically)

35 Application Status Check 1. Processed, not submitted 2. Processed, missing signatures (rejected to school)

36 Corrections on the Web REMEMBER: Save your correction(s) before submitting.

37 Completed FAFSA… …now what happens? Department of Education : your estimated Expected Family Contribution (EFC) Student : receive your Student Aid Report (SAR) by or mail Financial Aid Office : receives electronic copy of your FAFSA results If selected for verification, the school(s) listed on your FAFSA will contact you

38 Verification (not an audit) Some applications may be selected for verification by the Central Processing Service or the school School will send student/family : Verification worksheet to complete, sign and return School will request : Federal income tax transcript (not the return) and W-2 forms for student and parent, if applicable ( for transcript) If selected for verification, please do not make corrections to your FAFSA unless the school requests it

39 The Financial Aid Office Determines students eligibility based on FAFSA results (and verification, if required) Packages and offers financial aid to students based on eligibility in attempt to meet financial need Sends an award letter detailing: Cost of attendance Types and amount of financial aid Conditions of the award Disbursement procedure NOTE: Students must be admitted to (not enrolled at) the college before they can receive an award letter.

40 Eligibility for Financial Aid All students and families are encouraged to complete the FAFSA for need and non-need based aid. Submit the FAFSA by filing deadline (no later than the 30 th day after the start of the term if Minnesota state grant-eligible). Admitted to the school and enrolled at least half-time (6 credits) to receive most types of aid. Make satisfactory academic progress (GPA, credits completed v. attempted, maximum time frame) to receive aid.

41 Review of Application Steps PIN - student and at least one parent File federal income tax returns Complete FAFSA at Review Student Aid Report (SAR) Complete verification request from school (if applicable) Apply for financial aid each year Check priority dates and deadlines Do not share your federal PIN

42 Definition of Financial Need Cost of Attendance (variable) - Expected Family Contribution (EFC) (constant) Eligibility for need-based aid (variable) Factors used in determining EFC : Parent(s) income (taxed & untaxed) and assets Student income (taxed & untaxed) and assets Household size Number in college

43 Cost of Attendance Each schools will vary; all will include: TUITION/FEES ROOM/BOARD BOOKS PERSONAL TRAVEL

44 Need Varies Based on Cost NOTE: Your Expected Family Contribution (EFC) remains the same.

45 Estimators Minnesota Office of Higher Education Fafsa4caster

46 Types of Financial Aid Gift Aid Scholarships Grants Self Help Employment Loans

47 Gift Aid: Scholarships Merit-based aid Local or Private – visit with your school counselor College/University where you apply Scholarship search services Watch out for scams

48 "The scholarship is guaranteed or your money back. "You can't get this information anywhere else. "I just need your credit card or bank account number to hold this scholarship. "We'll do all the work. "The scholarship will cost some money. "You've been selected by a 'national foundation' to receive a scholarship." "You're a finalist.… in a contest you never entered Scholarship Scam Information: Federal Trade Commission: Beware of Scholarship Scams

49 Gift Aid: Grants Need-based gift aid* Federal Pell Grant Federal Supplemental Education Opportunity Grant (SEOG) Federal TEACH Grant * (not based on need; agreement to serve requirement) Minnesota State Grant Other

50 Self-Help Aid: Employment Earnings paid as hours are worked Federal Work-Study Minnesota Work-Study College Employment

51 Self-Help Aid: Loans Must be repaid with interest Need-based (guaranteed student loans) Federal Perkins Loan Federal Subsidized Stafford Loan Not need-based Federal Unsubsidized Stafford Loan (guaranteed student loan) Federal PLUS Loan (parent loan, credit check required) Private/Alternative Loans (variable rates/terms; credit check)

52 How to Save $$ While in School Determine needs vs. wants If you registered for a course, complete it Work part-time (10-15 hours per week) Avoid credit cards and card pushers (using credit and not paying it off can cost more than its worth) Buy used books and clothes Learn to cook Share living expenses with a roommate Use public transportation, a carpool, a bike, or your feet Stay healthy Buy food & supplies in bulk; buy generic, shop farmers markets Use student discounts Live like a college student so you dont need to do it later

53 Financial Literacy Websites - Select Financial Awareness Counseling (NOTE: Not the same as entrance loan counseling for new borrowers) - Select Manage Your Money

54 Discuss as a family the costs – how and how much – of financing college. Discuss as a family available resources to meet these costs. Carefully evaluate and understand the terms and renewal requirements for aid. To keep in mind…

55 5 Questions to Ask the Financial Aid Office 1.What do I need to finalize my award letter? 2.What academic requirements are there to keep my financial aid? 3.What are the terms of the loans? 4.Where can I find a job (work study or not)? 5.How and when will I receive my financial aid? Modified from

56 Additional Resources Minnesota College Goal (FAFSA Assistance) MN Office of Higher Education FAFSA Helpline FED-AID U.S. Department of Education or General Financial Aid

57 Questions about this presentation? St. Cloud State University Financial Aid Office Administrative Services Fourth Avenue South St. Cloud, MN (320)

58 Calculating the EFC (Expected Family Contribution)

59 Parent Contribution – Income P arent Income (AGI + Untaxed income) -Taxes and FICA -Employment expense allowance -Income protection allowance (variable) = Available Income

60 Parent Contribution - Assets Parent Asset Equity -Asset Protection Allowance (variable) = Discretionary Net Worth x 12% (Asset Conversion Rate) = Contribution from Assets

61 Parent Contribution - Total Available Income + Contribution from Assets = Adjusted Available Income x % (variable) = Parent Contribution ÷ Number of family members in college* *do not include parents in college

62 Student Contribution - Income Student Income -Taxes (federal, state, FICA) -$6,130 Income Protection Allowance = Available Income x 50% = Contribution from Income

63 Student Contribution - Total Contribution from Income + 20% of asset equity = Total Student Contribution

64 Expected Family Contribution (EFC) Parent Contribution + Student Contribution = Total EFC

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