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Understanding the FAFSA A Financial Aid Overview Presented by Fred Stennis Office of Federal Student Aid Awareness & Outreach Division U.S. Department.

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Presentation on theme: "Understanding the FAFSA A Financial Aid Overview Presented by Fred Stennis Office of Federal Student Aid Awareness & Outreach Division U.S. Department."— Presentation transcript:

1 Understanding the FAFSA A Financial Aid Overview Presented by Fred Stennis Office of Federal Student Aid Awareness & Outreach Division U.S. Department of Education 1

2 Mission Federal Student Aids mission is to ensure that all eligible individuals benefit from federal financial assistance—grants, loans, and work-study programs—for education beyond high school. By championing the promise of postsecondary education, we uphold its value as a force for greater inclusion in American society and for the continued vitality of America as a nation 2

3 Today’s Topics What Is the FAFSA? Before Applying When to Apply How to Apply What to Expect After Applying Where to Get Help and Info Updates for

4 “…my parents make too much money, so I won’t qualify for aid.” Reality: There is no income cutoff to qualify for federal student aid. Myths About Financial Aid 4

5 “...the form is too hard to fill out.” Reality: The FAFSA is easier than ever, especially if you fill it out online at Myths About Financial Aid 5

6 “…only students with good grades get financial aid.” Reality: Maintain “C” average and complete enough courses in a timely manner. Myths About Financial Aid 6

7 Financial assistance for students enrolled in an eligible program at a Title IV participating school. 7 What is Federal Student Assistance?

8 Students must have:  High school diploma, GED or ATB  A Social Security Number (with limited exceptions)  U.S. citizenship or be an eligible noncitizen  Registered with the Selective Service (Males) Students also need to:  Be enrolled or accepted for enrollment in an eligible program  Be pursuing a degree, certificate or credential  Maintain ‘Satisfactory Academic Progress’ Basic Eligibility Requirements 17

9 1.Federal Grants 2.Federal Work-Study 3.Federal Student Loans Types of Federal Financial Aid In , the Federal Student Aid programs will provide more than $150 billion in aid 9

10 SMART Types of Federal Grants

11 Provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses.  Eligible employers (On-campus or off-campus employment)  Schools  Federal, state or local public agency  Private nonprofit organization  Community service activities  Students are paid at least federal minimum wage  Not all colleges participate in the Federal Work-study program  Funds depend on availability at the college Federal Workstudy

12 Federal Student Loans (Must be repaid – Loan amount varies) Federal Perkins Loan Subsidized Direct Loan Unsubsidized Direct Loan PLUS Direct Loan (Parents) 12

13 Current Interest Rates Up to June 30, 2012 Subsidized Loan3.4% fixed Unsubsidized Loan6.8% fixed PLUS Loan7.9% 13 Student Loan Interest Rate Student Loan Interest Rate

14 Application Methods Paper FAFSA – NOT recommended Order at FED-AID or orwww.edpubs.gov Download PDF at Apply through college (if college offers that option) Quickest and easiest: FAFSA on the Web at How To Apply

15  January 1: Submit FAFSA as soon possible  Check state and institutions’ deadlines  Obtain and review admission and financial aid information from each school you are applying 15 Key Dates: Students are encouraged to file their FAFSA as soon as possible after January 1 st of their senior year in high school. Application Availability

16 Homepage Makeover  Simplified options  Updated graphics  An announcement section for important updates throughout the year  Access to FAFSA4caster  Access to FAFSA PDF and information about getting a paper FAFSA 16

17 FAFSA Statistics As of January 1, 2012 FAFSA Submitted approx. 21 Mill.approx Mill. (Jan. 1, 2010 – Jun. 30, 2011) (Jan. 1, 2011-To Date) Avg. Submission Time Minutes 23 Minutes 17

18 Student completes the FAFSA and signs with FSA PIN FAFSA is processed by FSA; Student receives a SAR; College receives information if listed on the FAFSA College reviews info and assembles award package for the student Student reviews award package; compares to other award letters; student determines which college to attend High Level Overview of the FAFSA Steps 16

19 19 A Student Aid Report (SAR) is sent to all students that submit a FAFSA.  SAR information is sent to the students  electronic SAR ed to applicant within 3-5 days  not provided: paper SAR mailed to applicant within 7-10 days  SAR will reveal financial aid eligibility SAR Student Aid Report (SAR)

20 20 Student Aid Report (SAR)

21 Financial Aid Terminology Cost of Attendance  Tuition & Fees  Room & Board  Books & Supplies  Equipment & Transportation  Miscellaneous Personal Expenses  Child Care $Total Cost $ Parent Contribution + Student Contribution = Expected Family Contribution (EFC) Cost of Attendance (COA) - Expected Family Contribution (EFC) = Financial Need 21

22 If any of the following criteria applies, the student is considered independent : 24 years or older Married Master’s or Doctorate Program Children and you provide ½ support In foster care since turning 13 Emancipated minor Currently or was in legal guardianship Homeless Serving Active Duty in U.S. Armed Force 22 Independent Student

23 23  Divorce, Separation, Death  Job Loss  High Medical Expenses  Elementary and Secondary Expenses  Each Situation is Dealt With On A Case-By-Case Basis  Circumstances Must be Well Documented  Financial Aid Director Has Final Say… Special Circumstances

24 Available Feb. 1, 2012 for FAFSAs IRS Data Retrieval ,000 Retrievals 4.9 Mill. Retrievals Users who transferred IRS information into their FAFSA IRS Data Retrieval

25 IRS Data Retrieval

26

27 FED-AID (Customer Service) Further Information

28 The Federal Student Aid Information Center (FSAIC) operates a toll-free hotline to provide: Information about federal student aid programs; help completing the FAFSA; help in making corrections to a student’s SAR; information about the process of determining financial need and awarding aid; and information about federal student loans. has help text and live chat  FED-AID ( )  TDD for hearing impaired individuals:  Callers may choose English or Spanish Hours:Monday – Friday:8:00am – Midnight ET Saturday:9:00am – 6:00pm ET Sunday:Closed 28 FSA Contact Center

29 Scenarios

30  I am a senior this year and I want to fill out an FAFSA application, but my parents will not provide me with their income tax information. Can I still qualify for federal assistance? If yes, what program (s). Yes, Unsubsidized Loans. Common Question

31 Scenarios Continued  My wife and I both work and we currently have one child in college and another due to graduate from high school this year. As parents we know we will need federal assistance for our second child as well as the first, do we need another PIN ? No, however, each student applicant will need there own individual PIN. As parents you can use your current PIN to sign the FAFSA application.

32 Scenarios Continued  My parents are undocumented, but I was born in the United States and I am a senior in high school. Can I apply for federal student aid? The FAFSA application requires my parents information even though they are undocumented? Yes, you (the student) can apply for federal student aid because you are a U.S. citizen. If the parents cannot/will not provide the financial aid information, the student is on eligible for an unsubsidized loan from the federal government along with state/institutional aid

33 33 Paying for College: A Financial Aid Overview


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