3 Prepare for College Types of Aid Who Gets Aid FAFSA: Apply for Aid Loan Information Quick Links & Checklists
FAFSA: Apply for Aid 4 Quick Links: –How Aid is Calculated –The PIN –Filling Out the FAFSA
5 www.pin.ed.gov PIN for student and parent Sign your FAFSA electronically Check status Review and correct answers Sign promissory notes electronically View info about federal loans & grants Reapply for financial aid in the future
6 How to Apply Submit the Free Application for Federal Student Aid (FAFSA) beginning January 1 st prior to every academic year File on-line www.fafsa.gov –Use FAFSA On the Web Worksheet.PDF FAFSA, print and mail
7 Web Advantage Built-in edits to help prevent costly errors Skip-logic allows student and/or parent to skip unnecessary questions More timely submission of original application and any necessary corrections More detailed instructions and “help” for common questions Ability to check application status on-line Simplified renewal application process
8 Organize Your Documents Social Security Numbers Driver’s License 2013 Income Tax Return (Estimate OK) 2013 W-2 Statements Asset information Investment records
IRS Data Sharing IRS Data Retrieval Tool if taxes completed Participation is voluntary Use FAFSA on the Web to electronically view tax information Tax information can also be securely transferred into the FAFSA 9
10 Meet Filing Deadlines Meet FAFSA and priority dates / deadlines College/University deadlines vary You can use estimated information in order to meet financial aid application deadlines
11 Verification The process of proving the accuracy of FAFSA information About a third of all applications selected –Random selection, –Do not meet federal edits or –Chosen by the college/university
IRS Tax Transcript If you do not use the IRS Data Retrieval Tool to provide tax information and your college requests a copy of your tax return or your parents’ tax return, you may be required to obtain an official tax transcript from the IRS. 12
13 General Eligibility Requirements Must be enrolled or accepted for enrollment in an eligible program of study Must be pursuing a degree, certificate, or other recognized credential Must be a U.S. citizen or eligible non-citizen Must be registered with Selective Service (if male and required to be) May not have eligibility suspended or terminated due to a drug-related conviction while enrolled
14 Principles of Need Analysis To the extent they are able, parents have primary responsibility to pay for their dependent children’s education Students also have a responsibility to contribute to their educational costs Families should be evaluated in their present financial condition A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect its ability to pay
15 Unusual Circumstances Loss of employment Loss of benefits Death or divorce Other changes to family income, assets or student status
16 Who Completes the FAFSA? Dependent student (for financial aid purposes) Parents provide information If parents are divorced or separated, –Parent with whom the student has lived the most in the last twelve months –If equal, parent who has provided the most financial support If remarried, parent & stepparent information is used Grandparent or guardian information is not used –This student may need to speak with the Financial Aid office to determine if they are Independent.
17 Evaluating Eligibility Parent’s Income Family Assets (Savings, Investments, etc.) Student’s Income and Assets Family Size Number in College
18 Investments: Current value minus Debt Real Estate (Not your Home) Trust Funds Money Market Funds Mutual Funds Certificates of Deposit Stocks & Stock Options Bonds & Other Securities Coverdell Savings Accounts College Savings Plans Installment & Land Sale Contracts UGMA and UTMA accounts Etc.
19 Investments Do Not Include The home in which you live The value of life insurance Retirement plans UGMA and UTMA accounts for which you are the custodian but not the owner
20 Independent Student Definition (partial) At least 24 years old by December 31st of the award year covered by the FAFSA; Graduate or professional student; Married; Has legal dependents other than a spouse; Orphan or ward of the court; Veteran of the U.S. Armed Forces; or Determined to be independent by the financial aid administrator
21 EFC Used for Need (Theoretical) Total Cost of Attendance minus EFC Federal Need
22 Need Varies Based on Cost
23 Costs of Attendance Billed Costs Tuition Fees Room Meals Indirect Costs Books Supplies Transportation Personal Expenses Child Care Ongoing Medical Needs
24 Bottom Line Estimated Billed Cost of Education… Tuition, Room & Board minus - Financial Aid (Grants & Loans) Billed Cost of Education
25 Types & Sources of Financial Aid Gift Aid –Grants –Scholarships Self-Help –Loans –Work –Federal –State –Institutional –Private / Other
NASFAA.org Cash for College Paying for college Expected Family Contribution Comparing aid packages Where can I get more info? Financial aid checklist 29
30 FAFSA Help Ohio College Goal Sunday February 9, 2014
31 Questions? Otterbein University Financial Aid Office 614-823-1502 email@example.com
Who is considered a Parent when completing the FAFSA?
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. 33
Changes for 2014-2015 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.” 34
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 35
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 36
Comparison FY14 and FY15 37 Dependent Student’s Parents’ Household Comprised Of: Data from 1 or 2 Parents Collected? 2013-2014 and Prior 2014-2015 and Forward Single legal parent1 Parent Two legal parents who are husband and wife 2 Parents Legal parent and stepparent2 Parents 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 1 Parent 2 Parents Note: Only the opposite sex spouse of a legal parent is considered a stepparent for FAFSA purposes. However, if a same sex partner has become a legal parent by adopting the dependent student, information from each legal parent would be collected.