2Understanding the College and Financial Aid Application Process Be patient, thorough, and organized as you go through the college admission and financial aid application processThe steps are fairly similar, regardless of collegeIt will be toward the end of your senior year when you will finally know what your out-of-pocket costs will be to attend a particular college(s).
3Senior Year College Process Apply for admission and merit-based scholarshipsfor all colleges you likeFile the FAFSA by March 10Apply for private, outside scholarshipsFinancial Aid Notification Letters come from colleges, likely between March 15-April 15Compare your aid offersMake final college decision by May 1Return all required forms to your chosen college
4Sources of Aid Types of Aid CollegesState of IndianaFederal governmentSchools, churches, clubs, businesses, foundations, parents’ employers, etc.Types of AidScholarships - “gift aid” based on student’s meritGrants - “gift aid” based on financial needStudent Loans - student repays after graduationWork-study - campus job
5Financial Aid “Package” Ultimately, you may have a financial aid “package” that is comprised of many different types of financial aid from several sources.Tonight we’ll discuss how to apply for all types of aid from all sources.
6Applying for Admission is the key! Student must be accepted for admission by the college(s) before any formal offer of scholarship or financial aid is made.
7APPLY FOR MERIT-BASED SCHOLARSHIPS FROM COLLEGES These may be based on academics, talents, athletics, or affiliations.Follow the steps and deadlines dictated by each college.Colleges decide criteria and amounts.
8APPLY FOR PRIVATE SCHOLARSHIPS Good info from Guidance Office about these!Private scholarships can be funded by community groups, churches, foundations, parents’ employers, businesses, etc.Don’t pay a person or service to do this for you!Good Online Scholarship search resources:https://bigfuture.collegeboard.org/scholarship-search https://mycollegedollars.hyfnrsx1.com/
9WHAT IS THE FAFSA?The Free Application for Federal Student Aid (FAFSA) collects demographic and financial information about the student and family.It is the ONLY way to apply for federal and state of Indiana financial aid and is the primary application used by most colleges to distribute their own need-based funds.Some colleges may ask you for a supplemental financial aid application, in addition to the FAFSA. Example of one such form is the “CSS Profile.”
10Beware of --- They will charge a fee! Official FAFSA is free.File the FAFSA -- NOT (it is for current year)Filing by March 10 is a MUST for Indiana residentsYou can direct your FAFSA to multiple colleges at once by listing their code.
11Why file the FAFSA even if you don’t think you will qualify for aid? The FAFSA must be filed in order to use federal student or parent loans, which typically have more favorable terms than private educational loans.Some families place a value on requiring the student to partner with them in funding college. Student can do this by using student loans.If you have more than one child in college at the same time, you may qualify for more aid.
12Why file the FAFSA?It is dangerous to make assumptions that you make too much money. Myths abound about the FAFSA and aid.It may allow college to re-evaluate eligibility in the event of unforeseen changes in family circumstances. College can more quickly assist you if things change mid-year.
14AFTER FAFSA HAS BEEN SUBMITTED: BEFORE YOU BEGIN:Parent and student PINs may be created at PIN site prior to starting the FAFSA - recommendedAFTER FAFSA HAS BEEN SUBMITTED:You can log back in to make corrections, etc. SAR may be printed after FAFSA has been processed.
15PINs for FAFSA Student AND one parent must each create a PIN atPIN serves as a “signature” for the online FAFSA; may submit without, but FAFSA will not be fully processed until “signed” with PINs.PIN will be needed to change/correct FAFSA; both PINs (student + parent) must be applied each time FAFSA is updated.
16FAFSA ID (new in Spring 2015) In late spring 2015, users who access FAFSA with their PINs will be prompted to create a FAFSA IDFAFSA ID will replace the PINPurpose is to enhance security of personal information and identity
17“Help” link opens a list of topics to help answer most FAQs “Help” link opens a list of topics to help answer most FAQs. “Help” boxes also found throughout the FAFSA. We will cover major issues tonight!
18GET ORGANIZED BEFORE YOU START! Make a “FAFSA folder” before you beginRecord Student and Parent PINs, passwordsLater add copies of submission confirmation page, etc., and note corrections you may later make to your original FAFSA
19FAFSA can be done in stages Student can begin FAFSA and enter all demographic information; parents can complete their pages at another timeEach page is saved when completedFAFSA can be reopened and continue to be completed prior to submission.You MUST know PIN and Passwords to reopen and continue to work on a saved FAFSA!!FAFSA can be corrected after submission
20Begin here for initial FAFSA File theFAFSABegin here for initial FAFSAAccess your FAFSA here after first time, whether submitted or just saved. Must know PIN.
21“Student“ or “Parent” info is needed on each screen. Watch carefully if“Student“ or “Parent” info is needed on each screen.STUDENT is the applicant, not the parent
22Help and Hints - lists question numbers and offers detailed explanation. The system automatically saves the application at the end of each step.Most questions have detailed help as you go along.FAFSA will be saved after each click of “next”
23Must correct obvious errors before going to next page
24Dependency StatusThe FAFSA narrowly defines the situations that make a student “independent” according to the FAFSA“My parents don’t plan to pay for my college” does NOT make the student independent“What if my parents don’t claim me on their taxes?” - NO -- still not independent for the FAFSA.
25Dependency StatusInclude parent information on the FAFSA, unless you can officially answer “yes” to one of the questions defining your Dependency Status
26PARENT INFORMATION Who is considered a parent? “Parent” refers to a biological or adoptive parent. Grandparents, foster parents, legal guardians, older siblings, and uncles or aunts are not considered parents for the FAFSA unless they legally adopted you.In case of divorce or separation give information about the parent you live with the most. If your divorced or widowed parent has remarried, your FAFSA household is your custodial parent + stepparent and all who live there and receive support.
27Household for FAFSA Figure out home base How many in college? Filling out the FAFSA is NOT connected to who pays the bill in the endIt is OK to get aid based upon one parent’s income, even if a different parent will pay the billChild support being received or paid has a place to be reported on the FAFSADoes NOT matter who claims child as dependent on taxesCount all dependent siblings as long as they will enroll for at least ½ time (6 credits per semester) in the UPCOMING school yearParents are NOT supposed to be counted. This should be discussed with college if parent is full-time and family is incurring expense.
28HOUSEHOLD INFORMATION HOUSEHOLD SIZE: When answering “How many people are in your parents’ household?” -- count all siblings who are under 24 years if they live with your parents (or they are away at college) and get at least ½ of their support from your parents. “Support” includes all costs of living in the world. Free shelter is automatically ½ of support. Also include other people if they live in your parents’ home and meet these criteria.
29Income/Financial Section of FAFSA Best to complete 2014 taxes as soon as documents available.Best to file taxes electronically.Best to complete FAFSA after taxes are filed.However, OK TO ESTIMATE tax information to meet the March 10 deadline.
30IRS Data Retrieval for Tax info Indicate if taxes are “already completed” or “Will file”IRS Data Retrieval for Tax infoAllows transfer of IRS data into FAFSA. Available for electronic filers after about 3 weeks; mail-in filers must wait approx weeks.May use to initially provide tax info , OR….Update later as a “correction” if estimated tax info used when filing FAFSA initiallyMay be used for BOTH student AND parent tax informationTry to use the IRS Data Retrieval Tool if conditions allow. Otherwise, put tax info in manually and correct later using IRS Data Retrieval.
33If a match is found, it displays the actual tax numbers. First screen in IRS Data Retrieval Tool will ask you to fill in filing status and address (must be exactly as shown on tax return.If a match is found, it displays the actual tax numbers.Note: The IRS pages are the same for the student and parent. If the parent and/or student are eligible to use the IRS DRT, they will follow the same process outlined in this slide.
34Note: If the parent and/or student are eligible to use the IRS DRT, they will follow the same process outlined in this slide. This page is dynamic and the information that displays is variable, depending on whether parent data or student data is displayed. The data is also dynamic; the type of tax form that is filed will determine what type of tax information is displayed.1) Check here2) Then here
35Successful IRS D/R will show messages on FAFSA Do NOT change any information that says “Transferred from the IRS”Note: This student’s parents are Auto Zero eligible and are from a state that allows the parents to skip questions. The final question on this page “Do you want to skip the remaining questions about your and your parents' (father’s) income and assets?” is displayed to the parents. In this case, the parents indicated that they do not want to skip the remaining financial questions. If they did choose to skip the remaining questions, the student/parents would be taken to the Sign & Submit page.
36If Required to Report Assets If asked to report assets – carefully read instructions about what to report and what is NOT to be includedNOT included: Home in which you live, cars, life insurance, amount accumulated in retirement plans (for example 401K, etc.)Detailed instructions re: assets are found online while filing FAFSA and on page 2 of paper FAFSA
37Business Value/Assets Note that family-owned businesses with fewer than 100 employees is EXCLUDED (see definition on page 2 of paper FAFSA or via online instructions)
38FARMNote that a family farm that family lives on and operates is EXCLUDED as an asset (see definition on page 2 of paper FAFSA or via online instructions)
39How much aid did I receive? Aid notification does not come from the FAFSA processor.Each college listed on your FAFSA will notify you about your financial aid in the spring, as long as you have been admittedAid types and amounts can be different from each college
41Student and one parent will “sign” with PIN. “Disagree” will be the default. Mustchange to “Agree” to continue.
42FAFSA is not officially submitted until you see Confirmation page Short-cut to second child’s FAFSAInitial EFC index displays here. Colleges will use to calculate aid.The confirmation page includes links to transfer parental data into a new FAFSA for another student.In addition, some states allow users to transfer FAFSA information into their state’s aid application. The link is included on the confirmation page. The states that allow this transfer are:New YorkNew JerseyPennsylvaniaVermontCaliforniaIowaMississippiMinnesotaIndiana
43VERIFICATION OF FAFSASome FAFSAs are selected for review in a process called “verification” by the FAFSA processor or the college.College must confirm accuracy of FAFSA information before disbursing aid. Must follow college’s instructions to comply.Using IRS Data Retrieval assists you in complying with requests for verification of your FAFSA.Offer of aid is an estimate until verification process is completed.
44SPECIAL CIRCUMSTANCES There is no way to explain special things on the FAFSA. Unusual circumstances must be discussed with a financial aid officer at the college(s) the student is considering.Examples include:Recent job lossDeath of parent in prior or current yearRecent divorce or separation of parentsLarge medical billsPrivate school tuition for younger siblings
45Direct Costs vs. Cost of Attendance These are costs that are billed by the university.May include tuition, student fees, room, and meal plan.Understand each colleges direct costs and how they may be paid.This is a figure used to calculate financial aid eligibility. Includes direct costs plus allowances for other educational expenses such as books, personal expenses, transportation.Maximum aid that student can receive.
46What is EFC?EFC is an index number used by the federal and Indiana governments and colleges to calculate financial aid eligibility.EFC is NOT a dollar amount that you owe. It is NOT the amount of money the government thinks you have.It is an index used to calculate and ration aid.“Cost of Attendance” – EFC = NEED
48Federal Pell GrantNeedy students may be offered a Federal Pell Grant – gift aid which is not repaid.Amount is often same at different colleges, and prorated for part-time enrollment.Eligibility is directly connected with EFC index.
49State of Indiana Grants FAFSA will load into State’s system – Division of Student Financial Aid for the Indiana Commission on Higher Education.FAFSA must be received by March 10 ! No exceptions!21st Century Scholars is one of the state’s aid programs; also Frank O’Bannon Higher Education (public colleges) and Freedom of Choice Award (private colleges).Amounts vary by college and diploma type. Amounts are related to EFC.
50State of Indiana Grants, cont. Create an eStudent Account to view your state aid recordFAFSA errors (“edits”) must be corrected by May 15 or eligibility is forfeited
51Create an “eStudent” account to view your status for state grants
52Federal Direct Stafford Loan Annual eligibility, up to maximum of $5,500 will be listed on colleges’ aid offersAll FAFSA filers are eligible for this loanLoan in student’s nameStudent repays loan after college
53Subsidized vs. Unsubsidized Loan Amounts Subsidized portions do not accrue interest during college. Maximum subsidized is $3,500 for first-year college student.Unsubsidized portions accrue interest during college. Current fixed rate is 4.66%.Sub vs. Unsub amounts may vary by college
54Other Aid You May be Offered Some colleges may offer a “grant” which does not have to be repaid.Federal Work-study – a job on campus where students earn wages. Understand how many hours per week are expected and how the student secures the job.Federal Perkins Loan – a loan in student’s name with repayment after college. Funds are limited and college determines who is offered the funds.
55How will you pay your balance? Understand how much you will owe the college after all financial aid has been subtractedUnderstand the ways you may elect to pay that balance: by the semester, monthly installments, Federal Parent PLUS Loan, additional private loan for student?
56Federal PLUS LoanOne way that parents may pay the part not covered by aid offered to the student.A credit-worthy loan for parents. Payments are approx. $60 for each $5,000 borrowed.Follow set-up instructions from your collegeIf parent is denied PLUS due to adverse credit, student may be eligible for additional Unsubsidized Loan.
57Go to studentloans.gov for more information about both federal student/parent loans.
58Private Educational Loans There are dozens of private educational lenders.Most offer loan in the student’s name with repayment after college. Interest will accrue during college.Most require an adult, credit-worthy co-signer, although it usually does NOT have to be a parent.
59Senior Year Checklist Apply for admission and merit-based scholarships for all colleges you likeFile the FAFSA before March 10Apply for private, outside scholarshipsFinancial Aid Notification Letters come from colleges, likely between March 15-April 15Compare your aid offersMake final college decision by May 1Return all required forms to your chosen college
60College Goal SundayFinancial Aid Counselors will be available to assist with questions while you file the FAFSA.Sunday, February 22 at IVY Tech at 2:00 p.m.
61Education is Important! “An investment in knowledge pays the best interest.” ~~ Benjamin Franklin“Energy and persistence conquer all things.” ~~ Benjamin Franklin“By failing to prepare, you are preparing to fail.” ~~ Benjamin Franklin“Education is the most powerful weapon you can use to change the world.” ~~ Nelson Mandela“Education is the golden key to unlock the door of freedom.” – George Washington Carver“Live as if you were to die tomorrow. Learn as if you were to live forever.” ~~ Mahatma Gandhi