Welcome What IS the fafsa?

What is the FAFSA? The FAFSA® (Free Application for Federal Student Aid) is a federal form used to determine student eligibility for the following: Federal programs (studentaid.ed.gov) Pell Grants, campus-based aid, TEACH Grants and student loans State programs (www.pheaa.org) Pennsylvania State Grant, State Work-Study and other special programs School programs Need-based grants and scholarships

What is the FAFSA? The FAFSA® Information also used by PHEAA to determine state aid Some organizations use information to determine eligibility for scholarships Must be completed every year Will not qualify if you do not apply

What is the FAFSA? Who needs to apply? All students who wish to be considered for financial aid and plan to attend a post-secondary education school. Why is the info needed? All data is used to calculated the student’s Expected Family Contribution, which is the primary resource used to assist schools with awarding financial aid When should the form get completed? On or after October 1, using the Federal tax returns from the Prior-Prior Year (PPY)

FAFSA.gov Click here for initial FAFSA Click here for saved applications, corrections, or renewal FAFSA Click here for initial FAFSA

Login Review Help and Hints sections to answer questions Where you see the student bar, only enter student information. Parent information goes in a separate section.

Select the correct FAFSA year If starting classes in summer, check with your college.

More Help Information. If you don’t want to read these help topics, just click “NEXT”.

Know your Deadlines When To Apply?

Know When To Apply Federal Deadlines - Apply anytime after October 1st for the upcoming academic year (July 1st through June 30th) Seniors: after Oct 1st 2016 | Juniors: after Oct 1st 2017 School Deadlines – deadlines vary amongst schools PA State Grant Deadlines for FAFSA May 1, 2017 – First-time and renewal students attending colleges, universities & college transferrable programs (excluding community colleges) August 1, 2017 – First-time students attending community college; a business, trade or technical schools, hospital school of nursing; Open Admissions Institutions or a 2-year non-transferrable degree program at a Jr or 4-year college.

WHAT WILL I NEED?

Postsecondary School Selection List up to 10 schools at a time Do not have to be accepted to school to list them Enter school code or look them up

Items needed to complete the FAFSA Applicants may need the following items to file the FAFSA: FSA ID (UserName and Password obtained at fsaid.ed.gov) Social security numbers Prior Prior year’s Federal income tax returns (1040, 1040A or 1040EZ) W-2 forms from all employers Current bank statements (checking and savings) Current business and farm records Records of any stocks, bonds and other investments, including 529 accounts Additional untaxed income tax records may be needed such as: Veteran’s non educational benefits, child support paid/received and workers compensation. Alien registration or permanent resident card (if not a US citizen) **These items are also listed on the FAFSA Tipsheet

FSA ID Get your FSA ID PRIOR to sitting down to complete the FAFSA Sign the FAFSA Electronically The student and 1 parent will need an FSA ID Do NOT lose it; write it down and store in a safe place (write down the challenge question answers, too) Do NOT share it with anyone You will need your FSA ID every year you file a FAFSA and to log in to sign loan paperwork

Whose Info Goes on the FAFSA? Dependent Student and Parent(s) Divorced or Separated Parents -> Custodial Parent: the parent that you lived with most during the last 12 months, if equal: the parent that provided the most financial support Divorced/Separated parents who live in the same household Same Sex Parents Stepparents Adoptive parents Foster parents - No Legal guardians - No Anyone else the student is living with - No

(PA State Grant status can be different) Who Is Independent? 24 or older on Jan 1st of award year (January 1, 1994) Married Veteran (includes active duty personnel) Working on graduate level degree Emancipated minor in legal guardianship Orphan, in foster care or ward of the court at anytime when student was age 13 or older Have legal dependents other than spouse Student deemed homeless by proper authority (PA State Grant status can be different)

Parent Demographics Marital status (stepparent info is required) Determine household size and number in college Note: Parent’s last names must match SSN

Dependency All “no” answers = dependent student (most HS students) Any “Yes” answers = additional questions to determine independent status

Income & asset information

Complete the address information as it appears on your tax return These fields are pre-filled based on FAFSA responses Complete the address information as it appears on your tax return

Student Financial Information Use IRS DRT (or you can manually enter information) If student did not file or wasn’t required to file, answer appropriately (you would still report any income earned or untaxed income paid to the student)

Income Information The FAFSA always requires applicants to use prior-prior year income.

Asset Information

The Expected Family Contribution (EFC) Why Complete the FAFSA: The Expected Family Contribution (EFC)

Expected Family Contribution (EFC) Determining Need-Based Eligibility Student submits FAFSA Family undergoes Need Analysis Expected Family Contribution (EFC) is determined based on: Parent income and assets Student income and assets Family size Number of children in college Age of the older parent This is NOT necessarily the amount you will pay each year! Cost of Attendance Expected Family Contribution (EFC) COA – EFC = Financial Need

How is the EFC Calculated? EFC formula considers a family’s taxed & untaxed income, assets, size, how many will be attending college, and age of oldest parent Includes allowances for taxes and focuses mainly on income Parent + student contribution = EFC COA (Cost) - EFC = NEED

How is the EFC Calculated? Asset Protection Allowance is applied against parent’s reported assets EFC calculation roughly uses 6% of parent asset contribution and 20% of student contribution Student income contribution used in the calculation: 50% of amounts over $6,420 Parent contribution divided by number of children in college at the same time COA (Cost) - EFC = NEED

How is the EFC Calculated? Simplified formula – no student or parental assets are considered, and applies when: Anyone in the household receives means-tested benefits; or Parents filed or are eligible to file a 1040A or 1040 EZ, or filed a 1040 and were not required to do so, or were not required to file any income tax return; or Parent(s) is a dislocated worker; and/or Parents’ income is less than $49,999 Automatic Zero EFC – same conditions as above, but parental annual income $25,000 or less

Sign & Submit the Forms

Sign and submit (Parent) Select which parent has the FSA ID Agree to the statement Type in their FSA ID Click “Sign” Click “Submit My FAFSA Now”

Print this page for your records Confirmation Page Print this page for your records Shows your EFC, Pell, and Loan

State Grant Form (SGF) Click on “Start Your State Application” to complete the SGF First-time filers only

Print & Mail

Student receives an email from FSA What Happens Next Student receives an email from FSA

FAFSA TIPS

Special Circumstances Recent death or disability Reduced income Recent separation or divorce Contact the school and ask for a special consideration AND contact State Grant Division at PHEAA

FAFSA Tips Make sure you’re on the government site (fafsa.gov) Don’t mix answers for student and parent information Ensure SSN accuracy Use legal name as it appears on social security card Use e-mail addresses and phone numbers that will not change. Have federal income tax and other related information as references

More FAFSA Tips Don’t use your browser navigation buttons. Use the navigation buttons within the FAFSA. If you are unable to use the IRS Data Retrieval Tool, you can manually type your tax return info and try the IRS Data Retrieval Tool again later. Remember to complete the PA State Grant form from the confirmation page. Don’t delay – know your school deadlines and try to meet them!

Forms Are Filed… NOW WHAT?

Financial Aid Award Letter Presented by the school and typically includes: Cost of Attendance (COA) Types and amounts of financial aid offered Conditions that are placed on the awards Steps the student must take to accept the package Student’s rights and responsibilities Renewal, revision and appeal processes Policy on Satisfactory Academic Progress

What School Costs Are Considered? School costs include: Tuition and fees Room and board Books and supplies Transportation Miscellaneous living expenses Child care, if necessary You can receive financial aid up to the total of the school costs, regardless of your EFC!

Page 9 PA Student Aid Guide Net Price Calculators The Higher Education and Opportunity Act (HEOA) of October 2011 requires schools to offer a Net Price Calculator on their websites Enables current and prospective students, families and consumers to determine an estimate of an individual net price at a particular institution. ESTIMATED data must be provided by each institution: Total price of attendance Tuition, Fees, Room and Board Expenses (ie. personal, transportation) Estimated total merit and need-based grant aid Estimated net price (attendance minus grant aid) Does not include scholarships (www.nasfaa.org/publications/2009/rnpcposted110309.html) Usually on the Fin Aid pages, or Admission pages.. But it’s there to ESTIMATE costs… doesn’t account for internal or external scholarships.

Financial Need Schools/colleges receive financial aid information and calculate financial need Financial Aid Office (FAO) “packages” student based on financial need and available funding (varies from school to school) Financial aid award letter sent to student School cost $26,000 EFC – $3,000 Financial Need $23,000

Actual Cont. = (Cost – Free $) Comparing Packages Cost $20,000 $30,000 $50,000 EFC $ 3,000 Need $17,000 $27,000 $47,000 Free Money $ 6,000 $ 8,000 $18,000 Loans $ 5,500 $ 7,000 Work-Study $ 0 $ 2,000 TOTAL AID $11,500 $29,000 Gap = (Cost – Aid) $ 8,500 $13,000 $21,000 Actual Cont. = (Cost – Free $) $14,000 $22,000 $32,000

Things to Remember Get your FSA IDs PRIOR to completing the FAFSA (FAFSA.gov or FSAID.ed.gov) File your 2017-18 FAFSA at FAFSA.gov Use the IRS DRT If starting classes in summer, check with your school Complete your FAFSA and State Grant Form at the same time Meet your school’s priority filing DEADLINES State Grant Deadline is May 1, 2017 School Deadlines may be earlier! Research costs: mysmartborrowing.org

Resources for filing the FAFSA & SGF Federal Student Aid Center (call, chat or email) 800-433-3243 or 800-4FED-AID Studentaid.ed.gov PHEAA (state grant) 800-692-7392 www.pheaa.org

Your Presenter Your Presenter Tiffanie DeVan Higher Education Access Partner Cumberland Valley Region PA Higher Education Assistance Agency (PHEAA) 717-884-2200 tdevan@pheaa.org

Questions?