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Student Financial Aid What High School Seniors & Parents Need to Know.

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Presentation on theme: "Student Financial Aid What High School Seniors & Parents Need to Know."— Presentation transcript:

1 Student Financial Aid What High School Seniors & Parents Need to Know

2 What is Financial Aid? Funds provided to students to help pay the cost of attending college Financial aid may awarded based on Financial need (need-based) Other criteria, such as academic or athletic ability (non-need or merit-based)

3 Different Types of Aid Scholarships Grants Work Study Loans Free Money Self-help aid

4 How to Apply To be considered for student aid, a student must complete all forms required by a college  Free Application for Federal Student Aid (FAFSA)  NYS Tuition Assistance Program (TAP) Application  Institutional Forms  Other as required

5 How to Apply FAFSA is the application required to receive financial aid New York State’s TAP application is a link at the end of the online FAFSA Colleges may require additional applications for institutional aid, such as the CSS Profile Private scholarship programs each have their own applications

6 How to Apply File the FAFSA application A standard form that collects demographic and financial information about the student and family Information is used to calculate Expected Family Calculation (EFC) Colleges use the EFC to award financial aid Used by states, colleges, scholarship programs to determine aid eligibility

7 FAFSA Filing Apply starting January 1 st of senior year  Check with each college for application deadlines Available online at fafsa.gov  Be careful of scam websites!  Remember: Application is free!

8 Starts with FAFSA.gov

9 Before Starting the FAFSA Student and parent should each apply for a Federal Student Aid PIN Used to access features and sign FAFSA electronically Can be done at points within the FAFSA application or directly at pin.ed.gov Gather important documents needed to file the FAFSA

10 Common Documents Needed Social Security Cards US Permanent Resident Card, if non-citizen Parent and/or Student Income Tax Information 2014 Federal 1040/A/EZ, 2014 W-2 form(s) Can use prior year taxes as estimate Records of untaxed income Such as child support received, interest income Information on cash; savings, checking account balances Investments, including stocks, bonds, real estate Excludes retirement accounts, value of primary residence

11 FAFSA: Student Sections Student Information & Eligibility Basic info: address, email, name of high school, citizenship status College Information Up to 10 colleges may be listed; can be updated by correction Dependency Determination Questions that will determine student’s dependency status

12 FAFSA: Parent, Income, & Signature Sections Parent Information & Income Demographic information Household size, Number in college Income reported on 2014 tax return, untaxed income; can be estimated Student Income Signature Section

13 Reporting Income: The IRS Data Retrieval Tool  Transfers required tax data to the FAFSA  Data usually available 2 weeks after filing taxes electronically  Can be used at first FAFSA submission or during corrections

14 FAFSA Confirmation Page Federal Aid Estimates EFC State Aid Link

15 The TAP Application

16 Common Questions: FAFSA If we don’t think we qualify for need-based financial aid, do we still file the FAFSA? Many families mistakenly believe they do not qualify Consult with colleges, FAFSA may be needed for merit-based aid

17 Common Questions: Citizenship What are the citizenship requirements for FAFSA? Students must be US Citizens or eligible non-citizens (such as a US Permanent Resident Card holder), to receive federal and NYS financial aid Consult with the financial aid office at your college if you do not meet this status

18 Common Questions: Dependence Does the student need to provide parents’ financial information? In most cases, students under 24 will be required to report parental information For special circumstances, consult with the financial aid office

19 Common Questions: Parents If a student’s parents are divorced or separated, whose info is provided? Custodial Parent What if both biological parents are living together but unmarried? Both parents file together If a custodial parent is remarried, does student include stepparent's income? Yes

20 Common Questions: Income If neither the parents nor the student earned any income, how do they file? Complete as best as possible, put zero where applicable, will be verified If we have not filed 2014 income taxes, should we wait to file FAFSA? No, estimate using 2013 tax returns, then update later by making corrections

21 Common Questions: Assets Do you report your home value or retirement accounts as assets? No, your primary residence and tax deferred retirement accounts are excluded from FAFSA What about 529 college savings plans? The value of 529 Plans, for all children, need to be reported as parent investment

22 Common Questions: Assets Students receive an email showing FAFSA results, including the Expected Family Contribution Schools listed on the FAFSA receive an electronic record with the Student’s FAFSA information Used to determine Financial Need

23 Expected Family Contribution (EFC) Based on the FAFSA data Amount family can reasonably be expected to contribute Includes parent and student info Stays the same regardless of college Used to determine financial need

24 How Financial Need is Determined Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need

25 Cost of Attendance (COA) Loan fees Study abroad costs Dependent care expenses Expenses related to a disability Tuition and fees Room and board Books and supplies Transportation Miscellaneous personal expenses COA – EFC = Financial Need

26 Examples of Financial Need CollegeACollegeBCollegeC COA COA $ 11,000 $30,000$60,000 - EFC 5,000 5,000 = Financial Need $ 6,000 $ 25,000 $55,000

27 Sources of Financial Aid Federal government New York State Colleges – Institutional aid Outside sources Businesses/Employers Foundations Clubs/Organizations

28 Federal Student Aid Programs Pell Grant Awarded based on EFC Up to $5,730 for 2014-15 Supplemental Educational Opportunity Grant (FSEOG) May not be offered at every college Based on exceptional financial need Up to $4,000

29 Federal Student Aid Programs Work-Study May not be offered at every college Must have financial need Part-time employment, on or off campus Federal Student Loan Programs Perkins Loan Direct Stafford Loan Direct PLUS Loan

30 NYS Student Aid Programs Tuition Assistance Program (TAP) Need-based, up to $5,165/year For New York State residents only Full or part-time study at approved school in New York State Based on NYS Income Tax information

31 Other NYS Student Aid Programs NYS Science, Technology, Engineering and Mathematics (STEM) Incentive Program NYS Scholarships for Academic Excellence NYS Math & Science Teaching Incentive Program Veterans Tuition Award Aid for Part Time Study

32 Institutional Aid Depends on funding at each college College determines eligibility criteria for need-based and non-need-based programs Academic, athletic, and other talent- based scholarships and grants May require an additional application

33 The CSS Profile Private application used by some colleges for institutional aid Collects more detailed income and asset information than FAFSA May have non-custodial parent portion Application is not free, fee waivers may be available Available online starting October 1 st of senior year at Collegeboard.org

34 Net Price Calculators

35 After Applications are Filed…. Schools begin financial aid packaging process Student may be required to provide additional documentation at this time When processing is finished, an award letter is sent to student

36 Financial Aid Award Letter College award letter contains Amount of federal aid for which students are eligible, including loan options Amount of state aid for which students are eligible Institutional aid Breakdown of costs

37 Award Letter Comparison Tool

38 HESC.ny.gov/CompareAwardLetter s

39 Other Sources: Outside Aid Private scholarship programs sponsored by charity, business, religious, civic and minority organizations are widely available Each have their own application process, eligibility criteria, and deadlines Inquire with each college about impact on financial aid package Be organized and start applying early!

40 Scholarship Searching Online scholarship search websites Fastweb.com Collegeboard.org Scholarships.com Local library, parents’ employers Avoid scholarship scams www.studentaid.ed.gov/types/scams

41 Tips for Receiving Private Scholarships Start searching and applying as early as possible Be organized, don’t miss a deadline! Apply for local, less competitive scholarships Proofread applications, have someone else read your application Get help from family, guidance counselors, teachers

42 For More Information Visit: hesc.ny.gov

43 StartHereGetThere.org

44 Thank You!


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