Financial aid Michael frames, Jessica presents

https://youtu.be/QdaGZASwjZU Quick Video https://youtu.be/QdaGZASwjZU

College affordability Learn basic financial aid resources Understand the college affordability timeline Plan accordingly for upcoming financial aid season

Type of financial aid GRANTS WORK-STUDY LOANS SCHOLARSHIPS Scholarships, Grants and Work-Study can be awarded to a student from the federal or state government, colleges/universities or private organizations

Direct Costs + Indirect Costs = Cost of Attendance Tuition and Fees Room and Board INDIRECT COSTS Books and Supplies Travel Expenses Miscellaneous or Personal Expenses Direct Costs + Indirect Costs = Cost of Attendance Direct Costs, on average, are the primary items which will be included in the student bill. Indirect costs will vary per student but do not have to be paid upfront.

college affordability philosophy Grants & Scholarships Work-Study Loans Student Contribution Family Contribution When colleges think of HOW a college education is financed the above picture depicts who makes the first, middle and last contribution. Think of this as a bucket. WHO makes the first drop into the bucket is important. Since a student will be the primary benefactor of a college education the family is expected to contribute to their child’s college education first. Then, students are expected to make a small contribution such as money saved with a summer job. Next, financial aid is applied. First, loans are awarded to the student, along with work-study and finally free money such as grants and scholarships. This picture demonstrates a family’s responsibility to help fund their child’s college education as best as they can. Note: Last year, students had to advocate for work – study. So, if a student did not see it on his/her package, the student had to request this resource through the school’s Office of Financial Aid.

2. Gather information Information you will need to fill out your FAFSA Student Social Security Number* Parent(s) Social Security Number* Student Drivers License Number (if applicable) Alien Registration Number for student/parent(s) Parent(s) Date of Birth Parent(s) Marriage/Divorce/Separation Date (MM/YYYY) *DACA students may submit the FAFSA with their DACA SSN *If a parent does not have a SSN, enter “0” in SSN *Tax information can be estimated. May use taxes from previous year TANF

2. Gather information Forms you will need to fill out your FAFSA Federal tax information or 2015 tax returns* (1040 Forms) Records of untaxed income (Child support, veterans, non-education benefits) Information on cash, savings, account balances, including real estate but not the home you live in *DACA students may submit the FAFSA with their DACA SSN *If a parent does not have a SSN, enter “0” in SSN *Tax information can be estimated. May use taxes from previous year TANF

3. Apply for financial aid (FAFSA) Get FSA ID Financial aid applications will be available October 1st Both student and parent(s) submit application FSA replaces PIN from past years (refer to handout)

4. Review student aid report Expected Family Contribution will be given to student upon submitting FAFSA Redefining what EFC is and what EFC is not. Refer back to “bucket” slide Pell grant eligibility

5. Tax transcript & update Tax transcripts may be required for some schools Tax transcript vs Data Retrieval Tool (tax filing status) Why would you need to order one Tax transcript is NOT an income tax return

Cost of attendance – Expected Family Contribution = Financial Need Determining need Cost of attendance – Expected Family Contribution = Financial Need $20,000 – ___$2,000 = $18,000 $20,000 – _____0 = $20,000 $20,000 – ___$25,000 = -$5,000 The point of the 3rd column is that you essentially will not be eligible for much need-based aid (grants, work study) Need of $20,000 Need of $18,000 NON-Need base of $5,000

Award letter sample- on time Assume EFC = $0 College A Award Description COA = $18,000 Aid Offered Pell Grant (fed) $5,775 Texas Grant $2,000 Scholarship $2,345 Loan (fed) $3,500 TOTAL $15,620 Estimated Bill $ 2,380 When are the deadlines? CSS Profile priority deadline is February 15th. For some schools, it’s February 1. FAFSA Priority deadline is Febryary 15th. A common institutionally-recognized deadline is March 15th. This ensures you can maximize funds available. The final deadline for submitting and completing FAFSA is June 30th.

Award letter sample – late submission College A Award Description COA = $18,000 Aid Offered Pell Grant (fed) $5,775 Texas Grant $0 Scholarship Loan (fed) $3,500 $2,000 TOTAL $11,275 Estimated Bill $ 6,725 Assume EFC = $0 Filing early matters! Federal aid is guaranteed and will remain the same State aid and scholarships and institutional grants are awarded by universities according to when they receive your application and can change.

Financial aid timeline Big Ticket Items MONTH ACTIVITY OCTOBER SCHOLARSHIP WORK BEGINS / LEARN ABOUT YOUR FINANCIAL SITUATION INTRO TO FAFSA / GATHER TAX FORMS & E-FILE TAXES NOVEMBER FILE FAFSA / ORDER TAX TRANSCRIPT / MEET WITH ADVISOR DECEMBER FEBRUARY FINANCIAL PACKAGES BEGIN TO ARRIVE / MEET WITH ADVISOR MAY DECLARE COLLEGE AND ACCEPT FINANCIAL AID SUMMER COMPLETE LOAN COUNSELING / ESTABLISH PAYMENT PLANS When are the deadlines? CSS Profile priority deadline is February 15th. For some schools, it’s February 1. FAFSA Priority deadline is February 15th. A common institutionally-recognized deadline is March 15th. This ensures you can maximize funds available. The final deadline for submitting and completing FAFSA is June 30th.

Next Steps Information Packet Same process EVERY year in college

Thank you for your attendance  Feedback or Questions? ____________________________________________ Upcoming: FAFSA ROAD SHOW Evening workshops to help fill out the FAFSA in Nov. 10th 4:30-6:30 in the Library