Welcome to Financial Aid 2019-2020 Presenter: Stan Werne Vincennes University Director of Financial Aid and Member of Indiana Student Financial Aid Association

FINANCIAL AID What to look for & how to apply Federal & State Aid College/university aid Private or local scholarships Web site searches

Your key to federal & state financial aid: FAFSA Free Application for Federal Student Aid

Why Free Application for Federal Student Aid (FAFSA) is key: 2/28/2019 Why Free Application for Federal Student Aid (FAFSA) is key: Student & parent information is used to calculate the expected family contribution (EFC). Why needed?

Financial Aid Need Calculation 2/28/2019 Financial Aid Need Calculation U.S. Department of Education Definition of Financial Aid Need Cost of Attendance (COA) Varies from school to school Minus Expected Family Contribution (EFC) Same for all schools--results of your FAFSA Scholarships & other resources Equals Financial Aid Need

Part of Financial Need Calculation 2/28/2019 Part of Financial Need Calculation Cost of Attendance (VU/VUJC 2018-2019) Direct costs = what appears on the bill Tuition & fees ($5902 – 30 credits/year) On-campus Room & board ($9990) Program expenses (vary by major) ********************************* Indirect costs = other expenses (At-home “room & board” ($2476)) Books & supplies ($1298) Transportation ($1908) Miscellaneous ($1104) Loan fees ($64) Total: $20,266/$12,752

Sample Aid Package #1 Suppose student lives on campus: EFC - 0 - 0 Full COA $20,266 Direct cost = $15,892 EFC - 0 - 0 $20,266 $15,892 Pell grant - 6,045 - 6,045 $14,221 $ 9,847 O’Bannon grant - 4,500 - 4,500 $ 9,721 $ 5,347 Subsidized loan - 3,500 - 3,500 $ 6,221 $ 1,847 Unsubsidized - 2,000 - 2,000 $ 4,221 $ -153

Sample Aid Package #2 Full COA $20,266 Direct cost = $15,892 Suppose EFC = 7,000 Full COA $20,266 Direct cost = $15,892 Subsidized loan - 3,500 - 3,500 $16,766 $12,392 Unsubsidized - 2,000 - 2,000 $14,766 $10,392 Many schools offer federal parent PLUS loans. Interest rate = 7.595%; processing fee = 4.248% (Denial of PLUS app = $4000 in unsubsidized student loan) Consider co-signing a student non-federal alternative loan. Shop at INvestED Marketplace or FASTChoice. Most non-federal lenders do not have processing fee.

FSA ID (username & password) https://fsaid.ed.gov Student and a parent each need an FSA ID to electronically sign the FAFSA. Directions on “How do I get an FSA ID”

https://fafsa.ed.gov Use 2017 tax & income info. 2019-20 FAFSA on the Web became available Oct. 1, 2018. Use 2017 tax & income info. State Grant deadline: April 15, 2019 2018-19 still available until June 30, 2019 for current academic year. Use 2016 tax & income info.

Students log in with FSA ID username and password. Be sure to start the correct year’s FAFSA: 2019-2020.

Parents log in with the student’s name, SSN, and DOB. REMEMBER: All questions are from the point of view of the student.

Remember: “you”/”your” = student FAFSA Step 1: Student information and plans: SSN, DOB, marital status, e-mail (for state notifications), Selective Service, school level 2019-20? Remember: “you”/”your” = student Step 2: School choices: Up to 10 schools (codes online). Housing plans: on/off campus or with parents?

FAFSA Step 3: Student must submit parent data if answers = “No.” Born before Jan. 1, 1996? Grad student, active duty military, or veteran? Provide more than half support for child or other dependent? Since age 13, in foster care, ward of court, or parents deceased? Emancipated minor or in legal guardianship (before turning 18)? Homeless or unaccompanied youth?

FAFSA Step 4: Parental information: SSN, DOB, marital status, residency, # in household, # in college? Marital status question about legal parents (biological or adoptive) regardless of gender: Never married & not living together = 1 Unmarried & both parents living together = both Married = both Remarried = parent & stepparent = both Divorced or separated (custodial parent or parent student lived with most past 12 mos.) = 1 Widowed = 1

FAFSA Step 5: Financial information Parents: 2017 income & federal tax info. Use the IRS Data Retrieval process if you can. Current checking & saving accts; investments? NOT retirement accounts, home you live in, farm you work, or business with 100 or fewer full-time employees. Parents: Additional info: Child support paid? Untaxed income? Dislocated worker? Recipient of federal benefits?

FAFSA Step 5: Continued: Student: 2017 federal tax/earnings info. Use the IRS Data Retrieval process if you can. Current checking, savings, investments? Untaxed income?

Cannot use IRS DRT Jamie– 2019 High School Senior Filing FAFSA on Oct. 28, 2018. Use 2017 tax data, but parents (still married) filed jointly. Parents divorced in July 2018; Jamie has lived with mom since then. Mom’s FAFSA marital status is “divorced,” so it’s different from her 2017 tax filing status. Jamie will file the FAFSA using only mom’s portion of the 2017 tax/income & mom’s current assets since she lived with her more since the divorce (or the past 12 months).

Cannot use IRS DRT Jennifer—2019 High School Senior Filing FAFSA on Oct. 28, 2018. Use 2017 tax data, when Jennifer’s mom filed HOH. But Jennifer’s mom remarried in May 2018. Jennifer will list mom & stepdad as “married/remarried” on the FAFSA. Combine mom’s 2017 tax info & income with stepdad’s 2017 tax info & income. Assets: both parents’ combined current value as of the date the FAFSA is filed.

FAFSA Step 6: E-sign with FSA IDs and submit: 2/28/2019 FAFSA Step 6: E-sign with FSA IDs and submit: Both student & parent e-sign. Be sure to click SUBMIT button, then print confirmation page. If submitting corrections, be sure both e-sign and submit. Print confirmation page.

FAFSA filed. Then what? One of three results: EFC without verification 2/28/2019 FAFSA filed. Then what? One of three results: EFC without verification OR FAFSA reject/no EFC: major error OR FAFSA processing center identifies student for verification. Return to FAFSA to use IRS data retrieval or request IRS tax return transcript to verify income and tax information. Submit other documentation as required by school.

But my tax return is misleading because…. What can I do? Ask at school to request consideration of special circumstances. Submit verification and other supporting documentation as requested. Financial aid officers can make professional judgments. Maybe grant or subsidized loan eligibility can result.

Special Circumstances Jimmy – 2019 High School Senior Filed FAFSA Oct. 28, 2018 using 2017 tax data. They use IRS data retrieval because mom’s FAFSA marital status (widow) is the same as her 2017 tax filing status (HOH). In March 2018 mom lost her job; found new one in August 2018, but making $15K less. Jimmy should talk with financial aid offices. Will ask for documentation about mom’s 2018 income or project her 2019 income.

Need not be academic, artistic, athletic star for scholarships. Other Sources of Aid College/university scholarships = Ask at admissions or financial aid offices. (VU priority deadline is Jan. 18, 2019.) Private/local scholarships = Employers’ programs Community foundation Web searches = Professional & retail organizations Web sites like fastweb.com. Need not be academic, artistic, athletic star for scholarships.

2/28/2019 Help is available Don’t pay a fee to file the Free Application for Federal Student Aid or search for scholarships. Contact any financial aid office for questions. College Goal Sunday: Oct. 28, 2018 & Feb. 24, 2019 VU or VUJC, 2:00-4:00.

Good Luck!