1. Financing Education Beyond High School Financing Education Beyond High School 2010 - 2011 1

2. Cynthia Davidson, M.Ed. Assistant Director/Financial Aid Rutgers, The State University of New Jersey Campus at Camden Armitage Hall, B-44 311 N. Fifth Street Camden, New Jersey 08102 (856) 225-6039 cynthiad@camden.rutgers.edu 2

3. deadlines Complete your FAFSA before established deadlines. social security number is correct Be sure your social security number is correct. rounded off Dollar amounts should be rounded off to the nearest whole dollar. studentparent of dependent “PIN” n For FAFSA on the Web applicants, both student and parent of dependent student must secure a “PIN” which will serve as your signature when applying each year and to make corrections. copies n Keep copies of all documents. respond to the appropriate agencies n Remember to respond to all requests for additional information to the appropriate agencies. n Maintain Satisfactory Academic Progress 3

4. Rutgers University Office of Financial Aid 1-732-932-7057(New Brunswick) 1-973-353-5151(Newark) 1-856-225-6039(Camden) U.S. Department of Education 1-800-4FED AID NJ Higher Education Student Assistance Authority 1-800-792-8670 4

5.   www.rutgers.edu www.studentaid.rutgers.edu  Rutgers University Home Page  Rutgers Office of Financial Aid www.rutgers.edu www.studentaid.rutgers.edu    FAFSA on the Web  PIN Application or Update www.fafsa.gov www.pin.ed.gov    N.J. Higher Education Student  Financial Aid Information www.finaid.org www.hesaa.org Assistance Authoritywww.finaid.org www.hesaa.org   Internal Revenue Service 5 www.irs.gov

6. Avoid Being Scammed To check legitimacy of scholarship search services or individuals, for information about financial aid scams, and tips to avoid being scammed visit these Web sites: U.S. Department of Education: www.studentaid.ed.gov/students/publications/lsa/in dex.html Federal Trade Commission: www.ftc.gov/bcp/conline/publs/alerts/ouchart.htm Better Business Bureau: www.bbb.com 6

7. Private Scholarship Search Free Internet scholarship search engines: FinAid on the Web: www.finaid.org College Board: www.collegeboard.com FastWeb: www.fastweb.monster.com Scholarship Resource Network Express: www.srnexpress.com GoCollege: The Collegiate Websource: www.gocollege.com 7

8. Private Scholarship Search Local library resources Local businesses and civic organizations Parents’ employers 8

9. Agenda Definition of financial aid Definition of financial need and how it is determined Descriptions of major federal, state, and university financial aid programs How to apply for financial aid, including the Free Application for Federal Student Aid (FAFSA), and how to avoid errors 9

10. What is Financial Aid? Scholarships Grants Loans Employment opportunities 10

11. Types of Aid Gift aid: Grants and scholarships (need- based or merit-based) Self-help aid: Loans and employment (need- based or non-need- based) 11

12. Definition of Need Cost of attendance (COA) – Expected family contribution (EFC) = Need 12

13. Cost of Attendance Tuition and fees Room and board Books, supplies, transportation, and miscellaneous personal expenses, including documented costs for a personal computer Study abroad costs Disability-related expenses 13

14. Need Varies Based on Cost 14

15. WORK STUDY Subsidized StaffordUnsubsidized Stafford PLUS (P arent L oan for U ndergraduate S tudents ) Perkins LOANSGRANTS PELL SEOG SMART G rant 3 rd & 4 th yr A cademic C ompetitive G rant 1 st & 2 nd yr 15

16. Federal Pell Grants Awarded to eligible undergraduates pursuing first baccalaureate degree and certain students enrolled in post-baccalaureate teacher certification or licensing programs Portable Actual award amount based on COA, EFC, and enrollment status Maximum award for 2009-10 = $5,350 16

17. Federal Supplemental Educational Opportunity Grants (FSEOG) Eligible students: – Undergraduates pursuing first baccalaureate or professional degree – Awarded first to students with “exceptional financial need” (i.e., students with lowest EFCs at that school) – Priority to Federal Pell Grant recipients Annual award amounts: – $100 minimum – $4,000 maximum 17

18. Federal Work-Study (FWS) Earnings Eligible students: Undergraduate, graduate, and professional students Employment may be on or off campus Eligible employers: – Schools – Federal, state, or local public agencies Schools must use portion of FWS funds for community service employment activities 18

19. Federal Perkins Loans Eligible students: – Undergraduate, graduate, and professional students – Priority to students who show “exceptional need,” as defined by school Loan amount varies Maximum annual loan amounts: – $4,000—undergraduate students 19

20. Federal Perkins Loans Interest rate: 5% 9-month grace period Repayment period may be up to 10 years Deferment and cancellation provisions available 20

21. Stafford Loans School determines loan eligibility and delivers loan proceeds to students Fixed interest rate of 6.0 % 21

22. Stafford Loans Subsidized: Must demonstrate “need” Unsubsidized: Not based on “need” Base annual loan limits (combined subsidized and unsubsidized): – $3,500 for 1st year undergraduates – $4,500 for 2nd year undergraduates – $5,500 for each remaining undergraduate year – $2,000 additional Unsubsidized loan for all students 22

23. Stafford Loans After July 1, 2010 all Stafford Loans will be Direct Loans (legislation pending) Repayment begins after 6-month grace period Maximum repayment period between 10 and 30 years depending on repayment plan chosen Deferment and cancellation provisions available 23

24. ALTERNATIVE LOANS Parent loan program for parents of dependent undergraduate students (PLUS) NJCLASS Loan Other Private Loans Annual Alternative loan limit: COA minus other aid 24

25. T uition A id G rant E ducational O pportunity F und Grant B loustein NJ STARS I & II Scholarships 25

26. Grants College Scholarships Institutional Loan Program Loans Academic Payment Plan Institutional Tuition Payment Plan Institutional Assistance Grant 26

27. Application Process Submit FAFSA prior to school’s deadline Most aid awarded on “first-come, first-served” basis To ensure maximum consideration for federal, state, and institutional aid, check information from each school to determine: – Required application materials – Application deadlines 27

28. ERRORS can be COSTLY! Errors on the FAFSA or supplemental forms may DELAY application processing and result in the LOSS of financial aid funds. Read the instructions and complete all forms carefully! 28

29. Frequent FAFSA Errors Parent and student Social Security Numbers Divorced/remarried parental information Income earned by parents/stepparents Untaxed income U.S. income taxes paid Household size Number of household members in college Real estate and investment net worth 29

30. FAFSA on the Web Web site: www.fafsa.gov 2010-11 FAFSA on the Web available on January 1, 2010 FAFSA on the Web Worksheet: – Used as “pre-application” worksheet – Questions follow order of FAFSA on the Web 30

31. FAFSA on the Web Updates on Filing 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 any necessary corrections More detailed instructions and “help” for common questions Ability to check application status on-line Simplified renewal application process 31

32. Student Financial Aid (SFA) PIN Web site: www.pin.ed.gov Sign FAFSA electronically Can request PIN before January 1, 2010 Not required, but speeds processing May be used by students and parents throughout aid process, including subsequent school years 32

33. Application Processing Statistics Total Filers through Week 25 7.08% increase from 2007-08 to 2008-09 20.12% increase from 2008-09 to 2009-10 Paper applications >1% of total applications processed in 2009-10 33

34. 2010-11 Enhancements Students will receive more detailed information on their FOTW confirmation page and Student Aid Report (SAR) – An estimate of the Pell Grant award amount – An indication of student loan eligibility – Links to College Navigator for detailed college information – programs offered, tuition rates, graduation rates, etc. – Also, students can now e-mail the confirmation page to their own personal email address 34

35. 2010-11 Enhancements Retention, graduation and transfer rates within FAFSA on the Web – When students use the school code lookup within FOTW to lists colleges on the form, they will be presented with each college’s reported retention, graduation and transfer rates – This information will also display on the FAFSA on the Web confirmation page 35

36. 2010-11 Enhancements Enhanced skip logic – Selective Service registration Will only be offered to students who are male and younger than 26 – Simplification for students 24 and older and for married students If the applicant is determined to be independent due to date of birth or marital status, only two dependency questions will be displayed (questions 53 and 54 – to help independent applicants accurately report household size) 36

37. 2010-11 Enhancements Identifying Homeless Students – A new screening question will display asking applicants if they are homeless or at risk of being homeless – The three homeless determination questions will only be presented if student is 21 or younger and answers “Yes” to the homeless screening question – Students who are 22 or 23 and answer “Yes” to the homeless screening question, and students who are 21 or younger but answer “No” to all three homeless determination questions, will be – Taken down an alternate path to allow them to submit their FAFSA without parental data, and Directed to follow-up with their financial aid office 37

38. 2010-11 Enhancements Identifying students for Unsubsidized Loan Only – An applicant who is determined to be dependent but whose parents refuse to provide parental data on the FAFSA and refuse to provide financial support will have the option to submit the FAFSA for an unsubsidized loan only – FAFSA on the Web will present a path that allows the applicant to indicate that he or she will not provide parental data on the form and will allow the applicant to submit the FAFSA 38

39. The 2010 – 2011 FAFSA Expanded student marital status to four options to facilitate pending implementation of IRS data share process (Question 16) Removed veterans’ benefits questions because they are no longer required per HEOA Added text explaining that the value of military housing or a military housing allowance should not be included as untaxed income benefits (Question 45g and Question 93g) Added a question about earnings from work under a cooperative education program at an institution of higher education to be excluded from income (Question 44f and Question 92f) 39

40. FAFSA on the Web Status indicators will guide applicants through web modules (e.g., student demographics, basic eligibility, dependency status) Student and parent sections of the application will be more clearly identified Dynamic question labels, help text and instructions based on applicant profile (e.g., marital status, responses to tax filing status, type of tax return filed) 40

41. Examples of New Web Flow Logic State of Legal Residence The applicant’s state of legal residence is usually the same as mailing address state. The state of legal residence and date of residency questions will be suppressed for those who confirm the addresses are the same and have been for at least 5 years Drug Convictions Will not be presented to applicants who indicate that they will be a first-time college student 41 Additional Financial Information and Untaxed Income These questions will be presented in a much simplified “check box” format. Keywords will replace specific line references and applicants will be prompted to report amounts as needed

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43. IRS-FSA Interface Overview Federal Student Aid and the IRS are developing a collaborative solution that simplifies FAFSA completion The new process will allow FAFSA on the Web applicants to request and retrieve their income tax data from the IRS Once the data is retrieved it can be automatically transferred to FOTW 43

44. IRS Data Share  Populate with IRS Data  No taxpayer consent needed because data is not released to a third party  While in FAFSA on the Web, applicant (tax filer) submits a real-time request to IRS.  IRS sends real-time results to applicant (taxpayer) in new window.  Applicant (tax filer) transfers data to FAFSA on the Web. 44

45. How will this process work? 45

46. How will the IRS site be accessed? 46

47. How will applicants transfer data to FOTW? 47

48. 2010 -2011 FAFSA on the Web Worksheet A 4-page booklet containing: An introduction to the web application Approximately 45 questions in 4 sections student/parent demographic information and taxed/untaxed income information 48

49. FOTW Worksheet: Section 1 General student information: Name Citizenship Status Student Marital Status Selective Service Information 49

50. FOTW Worksheet: Section 1 General student information: Drug Conviction questions Parents’ educational background 50

51. FOTW Worksheet: Section 2 Student’s dependency status: If all “No” responses, student is dependent If “Yes” to any question, student is independent 51

52. FOTW Worksheet: Section 3 Data for parents of dependent students: Parent names and social security #s Parent’s Employment Status Parents’ income tax information 52

53. FOTW Worksheet: Section 3 Data for parents of dependent students: Did anyone in the parents’ household receive benefits from any of the federal programs listed? Parents’ Tax Credits Parents’ Untaxed Income 53

54. Tax Benefits for Education Hope Scholarship Tax Credit Lifetime Learning Tax Credit Student Interest Loan Deduction Tuition and Fees Deduction Employer Assistance Program 54

55. FOTW Worksheet: Section 3 Asset data for parents of dependent students (this question may or may not be asked of parents completing the FOTW): Cash, savings, and checking Net worth of investments Net worth of business and investment farms 55

56. FOTW Worksheet: Section 4 Financial data for student (and spouse): Tax Filing Status Student (and spouse’s) Income Tax Information 56

57. FOTW Worksheet: Section 4 Data about the independent student (and spouse): Did a member of the student’s household receive benefits from any of the federal programs listed? Student (and Spouse) Tax Credits Student (and Spouse) Untaxed Information 57

58. FOTW Worksheet: Section 4 Asset information for the student (and spouse), if requested: Cash, savings, and checking Net worth of investments Net worth of business and investment farms 58

59. 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 school’s financial aid office 59

60. Where Do I Go From Here? Obtain and review admissions and financial aid Web sites and materials for each school to which you are applying Meet all application deadlines – Complete FAFSA and other application materials, such as College Scholarship Service’s PROFILE application, if required by school or state agency – Submit all requested follow-up documents Investigate other sources of aid 60

61. Good Luck! 61