Presentation on theme: "St. Cloud State University"— Presentation transcript:
1St. Cloud State University Financial Aid NightPresented byValerie KnoppSt. Cloud State University
2Dear Dad…$chool i$ really gr8. I am making lot$ of friend$ & $tudying very hard. W/all my $tuff, I $imply can’t 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
3Dear Son…I kNOw that astroNOmy, ecoNOmics and oceaNOgraphy are eNOugh to keep even an hoNOr student busy. Do NOt forget that the pursuit of kNOwledge is a NOble task and you can never study eNOugh. Love, Dad Sent by
4Myths to Qualify for Financial Aid We make too much money to qualifyWe have too many assets to qualifyIt’s not worth completing the application (FAFSA)
5What we’ll cover… Application Process Definition of “Need” Aid Types and SourcesNeed Analysis Formula (optional)
7Who is eligible? U.S. citizen or permanent resident High school graduate/GED holder/Home school CertificateEligible degree/certificate programValid Social Security numberRegistered with Selective Service (males 18 years old)No conviction for drug offense while receiving federal aidSatisfactory academic progress
8How to Apply Free Application for Federal Student Aid (FAFSA) Online at – fastest, most efficientAs soon as possible after January 1st – earlier the betterWatch out! Only use the “.gov” site – anything else and you will be charged and your results may be delayedCheck the schools’ deadlinesPaper FAFSADownload from - select “FAFSA Filing Options”Order by phone FED-AIDSchool Form or CSS Profile (if applicable)
9Government 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 family’s financial circumstance.
10FAFSA on the WebApply/ReapplyApply for PINFiling DeadlinesIRS Data Tool (DRT) available late February 2013Find college codesCheck status of FAFSAMake correctionsPrint SARFAFSA4caster
11Filing Deadlines See state “Deadlines” at www.fafsa.gov Minnesota State Grant deadline is 30th day of the start of the termCheck with the schools - college deadlines vary and may be early. Check with the individual college
12Personal Identification Number (PIN) www.pin.ed.gov 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 websiteStudent and at least one parent need a PINUse your PIN to:IRS Data Retrieval Tool (DRT) to complete the FAFSASign your FAFSA electronicallyCheck the status of your FAFSA or Make corrections to your FAFSASign Master Promissory Note (MPN) for federal loans (student and PLUS)Look up student’s loan and grant history (www.nslds.ed.gov)
13NOTE: After 1/1/13 the two options will be 2012-13 and 2013-14 FAFSA on the WebNOTE: After 1/1/13 the two options will be andMain page once logged inRenewal or New FAFSARemember to select the correct award yearPIN status
20Who is a “Parent” for the FAFSA? Biological, adoptive, or step-parentGrandparent, foster parent, other relative or legal guardian (who are not the parent) are NOT considered parents unless they legally adopted the student.
22IRS Data Retrieval Tool (DRT) Who can use it? Dependent and independent students (parents of dependent students) who meet ALL criteria:Valid SSNFiled a 2012 IRS tax return, ANDUnchanged marital status since December 31, 2012.Available approx. late February 2013Displays if student (or parent, for dependents) selects tax filing status of “Already completed”
23Application Type (English) Application Type (English) Application Statistics*Average completion time for NEW FAFSAs filedJanuary 1, September 30, 2012Application Type (English)# of ApplicantsCompletion Time(in minutes)FAFSA3,455,61637:04EZ FAFSA329,12032:02Renewal4,003,10927:13EZ Renewal394,26819:52Application Type (English)# of ApplicantsCompletion Time(in minutes)FAFSA3,879,26919:03EZ FAFSA594,76516:31Renewal4,894,16914:36EZ Renewal774,07910:60
25IRS DRT (cont.) Check tax filing status “Already completed” If “Married Filing Separately” applicant is ineligible to use IRS DRTNOTE: If you recently filed taxes, you won’t 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
26IRS 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.)
27Transfer IRS data to FAFSA REMEMBERSelect the box and the “Transfer Now” button.Include “earnings from work” on the FAFSA after data transfer
28What if I don’t use the IRS DRT? If you’re 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.
30Entering 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.
31Sign 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.
32Confirmation PageTransfer sameparent info for a (dependent) sibling need? Click the link on the confirmation page to forward parent info from your FAFSA to your sibling’s.Estimate based on data entered. School will determine eligibility.
33NEW for 2013-2014: MN On-Line Student Eligibility Questionnaire Student must click on MN link on Confirmation page to be redirected to OHE on-line questionnaireFirst optional feature only appears for dependent students
34Step 3: FAFSA Follow-up Make Corrections to a Saved FAFSA Check status of a submitted FAFSAPrint Signature Page (if not signed electronically)
35Application Status Check 1. Processed, not submitted2. Processed, missing signatures (rejected to school)
36Corrections on the Web REMEMBER: Save your correction(s) before submitting.
37Completed FAFSA… …now what happens? Department of Education: your estimated Expected Family Contribution (EFC)Student: receive your Student Aid Report (SAR) by or mailFinancial Aid Office: receives electronic copy of your FAFSA resultsIf selected for verification, the school(s) listed on your FAFSA will contact you
38Verification (not an audit) Some applications may be selected for verification by the Central Processing Service or the schoolSchool will send student/family: Verification worksheet to complete, sign and returnSchool will request: Federal income tax transcript (not the return) and W-2 forms for student and parent, if applicable (www.irs.gov for transcript)If selected for verification, please do not make corrections to your FAFSA unless the school requests it
39The Financial Aid Office Determines student’s eligibility based on FAFSA results (and verification, if required)Packages and offers financial aid to studentsbased on eligibilityin attempt to meet financial needSends an award letter detailing:Cost of attendanceTypes and amount of financial aidConditions of the awardDisbursement procedureNOTE: Students must be admitted to (not enrolled at) the college before they can receive an award letter.
40Eligibility 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 30th 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.
41Review of Application Steps PIN - student and at least one parentFile federal income tax returnsComplete FAFSA atReview Student Aid Report (SAR)Complete verification request from school (if applicable)Apply for financial aid each yearCheck priority dates and deadlinesDo not share your federal PIN
42Definition 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 assetsStudent income (taxed & untaxed) and assetsHousehold sizeNumber in college
43Cost of Attendance Each school’s will vary; all will include: TRAVEL ROOM/BOARDPERSONALBOOKSTUITION/FEES
44Need Varies Based on Cost NOTE: Your Expected Family Contribution (EFC) remains the same.
45Estimators Fafsa4caster Minnesota Office of Higher Education Fafsa4casterFinaid.org
46Types of Financial Aid Gift Aid Self Help Scholarships Grants EmploymentLoans
47Gift Aid: Scholarships Merit-based aidLocal or Private – visit with your school counselorCollege/University where you applyScholarship search servicesWatch out for scams
48Beware of Scholarship Scams "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 enteredScholarship Scam Information:Federal Trade Commission:
49Gift 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 GrantOther
50Self-Help Aid: Employment Earnings paid as hours are workedFederal Work-StudyMinnesota Work-StudyCollege Employment
51Self-Help Aid: Loans Must be repaid with interest Need-based (guaranteed student loans)Federal Perkins LoanFederal Subsidized Stafford LoanNot need-basedFederal Unsubsidized Stafford Loan (guaranteed student loan)Federal PLUS Loan (parent loan, credit check required)Private/Alternative Loans (variable rates/terms; credit check)
52How to Save $$ While in School Determine needs vs. wantsIf you registered for a course, complete itWork part-time (10-15 hours per week)Avoid credit cards and card pushers (using credit and not paying it off can cost more than it’s worth)Buy used books and clothesLearn to cookShare living expenses with a roommateUse public transportation, a carpool, a bike, or your feetStay healthyBuy food & supplies in bulk; buy generic, shop farmer’s marketsUse student discountsLive like a college student so you don’t need to do it later
53Financial Literacy Websites studentloans.gov - Select “Financial Awareness Counseling” (NOTE: Not the same as entrance loan counseling for new borrowers)- Select “Manage Your Money”
54To keep in mind…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.
555 Questions to Ask the Financial Aid Office What do I need to finalize my award letter?What academic requirements are there to keep my financial aid?What are the terms of the loans?Where can I find a job (work study or not)?How and when will I receive my financial aid?Modified from
56Additional ResourcesMinnesota College Goal (FAFSA Assistance) minnesotacollegegoal.org/Locations.cfmMN Office of Higher Education getreadyforcollege.orgFAFSA Helpline FED-AIDU.S. Department of EducationorGeneral Financial Aid
57Questions about this presentation? St. Cloud State UniversityFinancial Aid OfficeAdministrative Services 106720 Fourth Avenue SouthSt. Cloud, MN(320)
58(Expected Family Contribution) Calculating the EFC(Expected Family Contribution)
59Parent Contribution – Income Parent Income (AGI + Untaxed income)Taxes and FICAEmployment expense allowanceIncome protection allowance (variable)= Available Income
60Parent Contribution - Assets Parent Asset EquityAsset Protection Allowance (variable)= Discretionary Net Worthx 12% (Asset Conversion Rate)= Contribution from Assets
61Parent Contribution - Total Available Income+ Contribution from Assets= Adjusted Available Incomex % (variable)= Parent Contribution÷ Number of family members in college**do not include parents in college
62Student Contribution - Income Student IncomeTaxes (federal, state, FICA)$6,130 Income Protection Allowance= Available Incomex 50%= Contribution from Income
63Student Contribution - Total Contribution from Income + 20% of asset equity = Total Student Contribution
64Expected Family Contribution (EFC) Parent Contribution + Student Contribution = Total EFC