Federal Update and FAFSA Information NDASFAA High School Counselors Workshop October 2017

Federal Update and FAFSA Information Goals for Today: Overview of changes for upcoming award year Overview and updates of financial aid programs See some screens that students use to apply for federal aid Explain what Prior-Prior Year means and review impact from this past year Provide opportunity to ask questions Please ask questions – informal setting

Federal Student Aid Programs Federal Pell Grant Iraq and Afghanistan Service Grant (IASG) Teacher Education Assistance for College and Higher Education (TEACH) Grant Federal Supplemental Educational Opportunity Grant (FSEOG) Federal Work-Study (FWS) Federal Perkins Loans No longer offered Subsidized and Unsubsidized Federal Direct Student Loans (Direct Loans) Federal PLUS Loans

Federal Student Aid Programs FEDERAL PELL GRANT Maximum grant for 2017-2018 is $5,920 or $2,960 per semester. The amounts vary from approximately $600 to $5,920 but not all students are eligible. Amount based upon enrollment status (number of credits enrolled in) and EFC – expected family contribution. Typically, family income less than $45,000 for a family of three and then income goes up to qualify with more in family and more than one in college. No Deadline to apply. No figures available yet for 2018-2019 but most likely will see little to no increase

Federal Student Aid Programs Campus-Based Funds Priority Funding Deadline varies depending upon the college/university What does Priority Funding Deadline really mean??? ND February 1st to April 15th Supplemental Educational Opportunity Grant Funding varies between $200 - $1,000 Must be Pell Grant eligible Federal Work Study Program Funding typically at $1,500 - $2,000 per academic year Federal Perkins Loan* *2017-2018 is last year colleges/universities offered this program (unless Congress reauthorizes).

Federal Student Aid Programs Federal Subsidized Direct Loan Financial need is a determining factor. Federal Government pays interest while student is in school. Interest MAY begin accruing immediately after attendance ceases! No priority funding deadline. 1.066% origination fee In essence student is charged 1.066% for loan fees. Example – student borrows $3500 – federal government will collect $37.31 so student will receive $962.69 All federal loans are processed through federal government Budget Resolution – interest subsidy may be eliminated

Federal Student Aid Programs Federal Subsidized Direct Loan (continued) Base annual loan limits (combined subsidized and unsubsidized): $3,500 for 1st year undergraduates $4,500 for 2nd year undergraduates $5,500 for each remaining undergraduate year $23,000 maximum to borrow for undergraduate programs. (Subsidized) $31,000 maximum to borrow for undergraduate Dependent Federal Unsubsidized Direct Loan Additional $2,000 unsubsidized for dependent students Additional $6,000 unsubsidized for independent students (Freshman/Sophomore) Additional $7,000 unsubsidized for independent students (Junior/Senior) Example: Freshman dependent student could receive up to $5,500 in Federal Loan eligibility depending upon other financial student assistance but only $3500 is subsidized

Federal Student Aid Programs Parent Loan for Undergraduate Students (PLUS) Parent borrows money on behalf of student. Loan max. is difference between cost of education and other financial assistance (observation – parents are borrowing to cover miscellaneous expenses – indirect costs). Parents need to meet credit criteria. Fixed interest rate – currently 7.00%. Repayment begins after final disbursement – which normally means February 1. Parent applies for PLUS at: https://www.studentloans.gov ALL Federal Aid REQUIRES completion of FAFSA each year!

Federal Student Aid Programs   Interest Rate Origination Fee Direct Loan 4.45% 1.066% PLUS Loan 7.00% 4.264% Perkins Loan 5.00% 0.00% Private Loan 2.35% - 11.85% Typically 0.00%

State Financial Aid Programs North Dakota State Grant Award maximum is $1,950 per year. Award will be prorated based upon enrollment status so student need not be full time. Priority funding deadline – as soon as possible – first come, first serve. Requires completion of FAFSA Must be a graduate of a ND high school AND be a ND resident Must attend a ND college or university to receive a state grant ND State Grant is a need based program Other aid received can/may affect eligibility.

State Financial Aid Programs North Dakota Indian Scholarship $2,000 per year as a full time student July 1 deadline (separate application) North Dakota Scholars Program Typically 33+ ACT score by June of junior year Full tuition up to UND/NDSU rate Technology Occupations Loan Forgiveness Program $1,000 loan forgiveness for up to three years Teacher Shortage Loan Forgiveness Program NDUS Tuition Waivers Peace Officers, Fire Fighters, Senior Citizens

State Financial Aid Programs ND Academic and Career and Technical Scholarships A few changes for this year to note! No longer have the 12 credits first year and 15 credits thereafter requirement. Generally eligible for $1,500 per year for up to four years: Scholarships are renewable for full-time students who maintain GPAs of 2.75 or higher. Full-time for this scholarship means enrollment in at least twelve credits. If a student is not enrolled full-time (as defined above), the scholarship will be revoked until the student is enrolled full-time. The scholarship will be reinstated the next semester the student is enrolled full-time. One time exception for student who does not maintain a 2.75 gpa, if gpa falls below 2.75 for a second semester student will no longer be eligible for this scholarship.

ND Academic and Career and Technical Scholarships Anticipated Payment # Enrollment status and # of credits needed to have “earned” to qualify for the anticipated payment Payment #1 Enroll “Full Time” Payment #2 Payment #3 Enroll “Full Time” and must have earned 24 credits Payment #4 Enroll “Full Time” and must have earned 39 credits Payment #5 Enroll “Full Time” and must have earned 54 credits Payment #6 Enroll “Full Time” and must have earned 69 credits Payment #7 Enroll “Full Time” and must have earned 84 credits Payment #8 Enroll “Full Time” and must have earned 99 credits

Institutional Aid Grants Scholarships Determined by financial need – normally given by private schools. Scholarships Academic – Dependent upon each school’s criteria Participation (music, drama, athletic etc.). Students need to apply directly to the school – separate application(s) and deadline(s). Non-Guaranteed Scholarships – varying criteria. Awards vary depending on each school. Priority Funding Date and Guaranteed Scholarships Each college/university will have their own established deadline date Each college/university will have their own criteria for offering guaranteed scholarships

FAFSA on the Web Sign FAFSA electronically Not required, but speeds up processing May be used by students and parents throughout aid process, including subsequent school year Only the owner should create a FSA ID

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FAFSA Update These fields are pre-filled based on FAFSA responses

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Provide Signature(s), Dependent Student FAFSA Update Provide Signature(s), Dependent Student 2017-18 “Provide Signature(s)” page for a dependent student. Here the parent (of a dependent applicant) or the applicant (student) can provide his/her signature(s) electronically by clicking on “Sign Electronically With My FSA ID (Fastest).”

FAFSA Update

Prior-Prior Year (PPY)

Prior-Prior Year (PPY) What did PPY accomplish? Students and parents completed their FAFSA earlier as tax data was available prior to applying. Better informed decisions regarding their college/university of choice as the financial aid offer was more accurate and more timely. Need based scholarships were awarded to those who demonstrate financial need and not necessarily those who complete the FAFSA early. Example at NDSU: Over $4M more in aid awarded by end of September compared to previous year Over $40,000 less in late fee charges 681 - 2018-2019 FAFSA’s processed to date

Prior-Prior Year (PPY) What did this accomplish? More accurate payments in the Pell Grant Program reducing the cost of the program saving tax payer dollars estimated at $350 Million per year. Earlier financial aid offers than in years’ past – depending upon the school type. NDSU and UND went out mid-March No need to estimate earnings as the 2016 tax returns are already complete. Fewer financial aid files selected for verification

Determining Financial Aid Eligibility Basic Financial Aid Formula Cost of Attendance Minus Expected Family Contribution Equals Financial Need College will award institutional aid first College will award federal grant assistance next College will award state grants and state scholarships next College will award private scholarships next College will award federal loans next College will award private loans last College MAY adjust loans (and state and federal grants on rare occasions) if other aid awarded

Determining Financial Aid Eligibility Category Amount Tuition $7,902 Fees $1,344 Room $4,060 Board $4,526 Books $800 Miscellaneous $3,400 Total $22,032

Determining Financial Aid Eligibility ND Resident, HS GPA 3.95, ACT 32 Cost of Attendance $22,032 - Expected Family Contribution $12,000 = Financial Need $10,032 ND Academic Scholarship $1,500 NDSU Presidential $3,000 ND State Grant $1,950 Federal Direct Loan – subsidized $3,500 Federal DL – unsubsidized $2,000 Total Aid $11,950

Determining Financial Aid Eligibility Category Amount Tuition $7,902 Fees $1,344 Room $4,060 Board $4,526 Books $800 Miscellaneous $3,400 Total $22,032 Total Aid $11,950 Options to Pay Education Expenses ??? Total Dollar Amount $10,082

Additional Federal Aid Eligibility Special Circumstances If student and/or parent situation changes after filing financial aid forms, contact Financial Aid Office. Unusual Medical Expenses Unemployment Death of a spouse Divorce Independent status – those who answer no to all dependency questions – must be estranged from parents for school to process as an independent student

Questions Contact: Jeff Jacobs (701) 231-7537 Jeffrey.Jacobs@ndsu.edu Or – contact the school you are applying to directly.