Financial Aid Information Session

Goals for tonight’s presentation Financial Aid Information Session Goals for tonight’s presentation What is financial aid? Categories, types & sources of aid The Free Application for Federal Student Aid (FAFSA) What is financial need? Timeline of financial aid What if you have special circumstances? Resources available

Colleges or Universities Financial Aid Information Session Financial aid is the money provided to students and families to help pay for postsecondary education expenses. What is Financial Aid? Who provides the funds? Federal Government Colleges or Universities Private Sources Civic Organizations Employers State Government

Need Based Merit Based The Basics Financial Aid Information Session The Basics Nearly all financial aid can be divided into two basic types: Need Based Merit Based Awarded to students based on their family’s financial and economic status. Awarded to students based on academic achievement and other accomplishments or activities.

Financial Aid Categories: Financial Aid Information Session Financial Aid Categories: Grants Scholarships Work Loans

Scholarships What is a scholarship? Financial Aid Information Session A financial award given to a student based on merit and/or need. Each scholarship has its own unique criteria and requirements.

Why might I receive a scholarship? Financial Aid Information Session Scholarships Why might I receive a scholarship? Grade Point Average (GPA) ACT or SAT Score Community Service Extra-Curricular Involvement Athletic Ability Special & Unique Talent Music Talent Financial Need Ethnicity & Family Heritage Work History Military Service

Scholarships 2 1 3 4 Financial Aid Information Session Contact the colleges you are interested in to check on their scholarship application. Utilize your high school guidance counselor for local scholarship searches. 3 Check with local civic organizations & your employer. Use on-line search engines such as fastweb.com. 4

A financial award based on need that does not require repayment. Financial Aid Information Session Grants What is a grant? A financial award based on need that does not require repayment. How do I qualify? Fill out the FAFSA (Free Application for Federal Student Aid) as early as possible.

Grants Financial Aid Information Session Federal Pell Grant Maximum of $5,815/year for 2016-2017 Students must have high need to qualify Federal Supplemental Education Opportunity Grant (SEOG) Amount varies per school Students must have high need & be Pell eligible to qualify

Grants Financial Aid Information Session Ohio College Opportunity Grant (OCOG) Students must be Ohio residents & have high need Amount varies based on type of school: Public Main Campuses: $1416/year for 2016-2017 Most Private Non-profits: $2832/year for 2016-2017 Most Private For-profits: $1056/year for 2016-2017 Federal TEACH Grant Up to $3,724/year (subject to change every academic year) Students must serve as a full-time teacher for at least 4 years in a high-need field in a public or private elementary or secondary school that serves low-income students within 8 years of completing their degree. Turns into an Unsubsidized loan if these obligations are not met.

Money earned by a student who works a job on campus. Financial Aid Information Session Work Study Money earned by a student who works a job on campus. Examples: Front desk at an office on campus Lab assistant Grounds crew Recreation Center Scorekeeper for Athletic Department Campus Ambassadors

Work Study How do I get a work study job? What are the benefits? Financial Aid Information Session Work Study When filing the FAFSA, make sure you answer yes to indicate you are interested in federal work study. Awarded based on financial need Increases employment opportunities These wages are excluded from consideration on your financial aid application. How do I get a work study job? What are the benefits?

Loans What is a loan? Financial Aid Information Session Financial aid available to all students that requires repayment. Federal loans are obtained through the FAFSA, but private lenders offer loans as well. Everyone is entitled to some loan money.

4.29% Loans Federal Direct Stafford Loan SUBSIDIZED UNSUBSIDIZED Financial Aid Information Session 4.29% For 2015-2016 Loans What are the different types of federal loans available? Federal Direct Stafford Loan SUBSIDIZED (3.76%) U.S. Department of Education pays interest while borrower is in school. UNSUBSIDIZED Borrower is responsible for all interest accrued. First year: $5,500 (Up to $3,500 subsidized) Second year: $6,500 (Up to $4,500 subsidized) Third year and beyond: $7,500 (Up to $5,500 subsidized) *Repayment must begin six months after last date of attendance.

Loans Federal Parent PLUS Loan Financial Aid Information Session Loans What are the different types of federal loans available? Federal loans taken out by the parent of a dependent student. Federal Parent PLUS Loan (6.31%) Amount borrowed cannot exceed total costs minus other aid. *Repayment begins 60 days after full disbursement (typically Spring) OR you can choose to defer repayment while the student is in school.

Loans Private Education Loans Financial Aid Information Session Loans Private Education Loans Loan in student’s name with credit-worthy co-signer. Amount borrowed cannot exceed total costs minus other aid. *Repayment usually deferred until after graduation. Sometimes interest only payments are required while in-school.

Free Application for Federal Student Aid Financial Aid Information Session Where do we start? File the FAFSA Free Application for Federal Student Aid An application completed and filed by a student (along with parents if necessary) every academic year in order to receive financial aid.

Free Application for Federal Student Aid Financial Aid Information Session Where do we start? File the FAFSA Free Application for Federal Student Aid The FAFSA collects household size and financial information, and calculates your EFC, or Expected Family Contribution.

Expected Family Contribution Financial Aid Information Session When your family completes the FAFSA, it will calculate your EFC. EFC = Expected Family Contribution Amount a family can reasonably be expected to contribute, but not what the family will necessarily pay to the college. EFC is the same regardless of what college or university the student attends. Two components combined to form EFC: Parent contribution Student contribution Calculated using data from a federal application form and a federal formula - FAFSA A few of the things included to calculate the EFC: Family’s Taxable Income Family’s Untaxed Income The Number of People in your Household The Number of Students in College Family Assets* Child Support Paid or Child Support Received

Do I meet the requirements to receive Federal Student Aid? Financial Aid Information Session Do I meet the requirements to receive Federal Student Aid? Satisfactory Academic Progress (each institution sets their own standards) Not in default on other federal student loans Educational purpose High School completion Financial Need U.S. citizen or eligible non-citizen Valid Social Security Number Selective Service registration Enrollment (must be enrolled at least half-time for Direct Loans) Eligible non-citizen: U.S. permanent resident, with a Permanent Resident Card (formerly known as an Alien Registration Receipt Card or "Green Card”) Conditional permanent resident (I-551C) Other eligible noncitizen with an Arrival-Departure Record (I-94) from the Department of Homeland Security showing any one of the following designations: “Refugee,” “Asylum Granted,” “Indefinite Parole,” “Humanitarian Parole,” or “Cuban-Haitian Entrant” A citizen of the Republic of Palau (PW), the Republic of the Marshall Islands (MH), or the Federated States of Micronesia (FM). High school: Must have high school diploma, GED, or certificate of completion of a high school education in a homeschool setting approved under state law. *Repayment usually deferred until after graduation. Sometimes interest only payments are required while in-school.

How do I fill out a FAFSA? Materials Needed: Financial Aid Information Session How do I fill out a FAFSA? Materials Needed: You Your Parents Prior year tax returns Prior year W-2s Social Security Numbers Records of untaxed income Asset information A computer Patience

October 1, 2016 How do I fill out a FAFSA? When: Financial Aid Information Session How do I fill out a FAFSA? When: For the 2017-2018 academic year, the FAFSA is available beginning October 1, 2016. Students and parents will be using 2015 tax return/income information. October 1, 2016 Explain early FAFSA.

How do I fill out a FAFSA? Financial Aid Information Session Go to fafsa.gov and click on the “Start a New FAFSA” button. You can select up to 10 schools to send your FAFSA. Why file electronically at www.FAFSA.gov? Built-in edits to prevent costly errors Skip-logic allows you to skip unnecessary questions Option to use Internal Revenue Service (IRS) data share More timely submission of application and/or corrections More detailed instructions and “help” for common questions Ability to check application status on-line

How do I fill out a FAFSA? Financial Aid Information Session Get your FSA ID by going to fsaid.ed.gov Record your FSA ID in a safe place. Both students and parents will need an FSA ID.

FAFSA Frequently Asked Questions Financial Aid Information Session FAFSA Frequently Asked Questions What if my parents are divorced? Do I include the income of my stepparent? If I provide my own support, do I have to list parents? What if my parents are divorced? Use the parent with whom the student lived with the most in the last 12 months. If you did not live with one parent more than the other, give answers about the parent who provided more financial support during the past 12 months, or during the most recent year that you actually received support from a parent. Do I include the income of my stepparent? Yes, if the stepparent is married to the parent who is required to provide information on the FAFSA. If the student provides his/her own support, do I have to list parental income? Yes, until the student is 24 years old or meets the limited exceptions listed on the FAFSA worksheet. What if my family owns a business? The business value does not include the value of a small business if your family owns and controls more than 50% of the business and the business has 100 or fewer full-time employees.

FAFSA Frequently Asked Questions Financial Aid Information Session FAFSA Frequently Asked Questions Real estate (but not the home you live in) Trust funds Money market funds Certificates of deposit Mutual funds Stocks Stock options Bonds UGMA & UTMA accounts Other securities held Education savings accounts (i.e. Coverdell & 529 savings) Not the home you live in Value of life insurance Retirement plans (401k plans, pension funds, annuities, non-education IRAs, Keogh plans, etc.) What is included as an asset? What is NOT included as an asset? If I provide my own support, do I have to list parents? *Examples of what is NOT included in Assets: Value of your Primary Home Value of Life Insurance “Official” Retirement Plans (pension funds, annuities, non-education IRAs, Keogh plans, etc.) Value of Small Business that the family owns more than 50% of but has 100 or fewer employees

How much will college cost? Financial Aid Information Session Entertainment Books How much will college cost? Tuition Food Transportation Housing

C OLLEGE OSTS Tuition & Fees Housing Meals Direct Costs Financial Aid Information Session C OLLEGE Direct Costs OSTS Tuition & Fees Housing Meals

C OLLEGE OSTS Transportation Books & Supplies Financial Aid Information Session C OLLEGE Indirect Costs OSTS Transportation Books & Supplies Miscellaneous Living Expenses

C OST OF ATTENDANCE C.O.A. Financial Aid Information Session Tuition and Fees Room and Board Books and Supplies Miscellaneous Living Expenses Transportation Cost of Attendance varies widely among different types of college. Residency (in-state vs. out of state) Enrollment Status (full-time vs. part-time) Campus (main campus vs. regional campus) Living arrangements (on-campus vs. off-campus) It is important to compare the COA at each university alongside the student’s aid package. Remember that the COA is not necessarily what you are going to be billed, but it does represent the maximum amount of aid a student can receive.

What is financial need? EFC COA Financial Aid Information Session The difference between the cost of attendance (COA) and the expected family contribution(EFC). Your financial need is used to determine how much aid you may receive A college may not be able to offer enough aid to meet your demonstrated financial need, however it is our GOAL! COA EFC Financial Need

Financial Need Comparison Financial Aid Information Session Financial Need Comparison Private 4 Year College or University Public 4 Year College or University Public 2 Year College or University Cost of Attendance (COA) $45,080 $29,770 $10,818 - Expected Family Contribution (EFC) $12,000 Financial Need $33,080 $17,770 $0 The COA differs depending on the school, whereas the EFC is the same at every institution.

Special Circumstances Financial Aid Information Session Special Circumstances Change in employment status Medical bills not covered by insurance Change in marital status Student cannot obtain information from parents due to incarceration or abusive situation Have a situation you cannot report on FAFSA? Instead, send an explanation of your situation to the financial aid office at each college. The college will review your situation: Request additional documentation if appropriate Come to a decision based on their policy. Decisions are final and cannot be appealed to the US Department of Education

Deadlines are important! Financial Aid Information Session Deadlines are important! October 1, 2016 is the first day you can complete a FAFSA for 2017-2018. Check with each college to see what their priority deadline is. Missing deadlines might prohibit you from maximizing your aid!

Additional Resources finaid.org FAFSA.gov Financial Aid Information Session General Financial Aid finaid.org FAFSA on the Web Additional Resources FAFSA.gov Federal Student Aid studentaid.gov 1-800-4-FED-AID

Questions?