FAFSA Application What you need to know before you apply

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FAFSA ► FAFSA stands for Free Application for Federal Student Aid (the “for” is silent in the acronym) ► Most people mispronounce the acronym. They usually say “FASFA” ► It’s “FAFSA”

Undergraduate Student Aid by Source (in Billions), SOURCE: The College Board, Trends in Student Aid 2010, Figure 2A.

Everyone should apply for aid ► Many types and sources of aid are available ► On the fence?  67% of all students receive aid [88% at private colleges  Sometimes being rejected for federal aid is a prerequisite for receiving private awards

Cost of Attendance Cost of Attendance Family’s Contribution Family’s Contribution Financial Need Financial Need -= How is Financial Aid determined?

Current COA  Average Tuition, Fees, Room, Board 4 Year Public: $17,000 4 Year Public: $17,000 4 Year Private: $35,000 4 Year Private: $35,000  Average personal expenses [clothing, laundry, toiletries, recreation, entertainment] = $2,000  Books = $700 - $1,000 per year

Direct costs vs. Indirect Costs ► ► Direct costs = on tuition invoice   Tuition, fees, housing, meal plan ► ► Indirect costs = related educational expenses   Books, supplies, transportation, laundry, … ► ► COA should reflect direct and indirect expenses

► To the extent they are able, parents have primary responsibility to pay for their dependent children’s education ► Students also have a responsibility to contribute to their educational costs ► Families should be evaluated in their appropriate financial condition ► A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect its ability to pay Financial Aid is “A Partnership”

So... how does the process begin?

The FAFSA collects basic financial data is used to determine the student’s eligibility by calculating an “index” # To apply for all federal and state aid, families must complete the...

Overview of the FAFSA process ► FAFSA.GOV ► 4 Sections ► Signed and submitted electronically

FAFSA on the Web (FOTW) English or Spanish English or Spanish Skip logic and online editing Skip logic and online editing Electronic signature Electronic signature notification notification 19 million (99%) FOTWs processed 11/12 so far 19 million (99%) FOTWs processed 11/12 so far

FAFSA on the Web Worksheet 4-page booklet containing: ► Instructions ► 24 questions in 4 sections

Financial Information Reported on the FAFSA Form ► ► Estimate 2011 income on FAFSA; adjust later ► ► Divorced, separated, single parents ► ► Assets included   Savings, stocks, other real estate   529 Plans ► ► Assets not included   Home equity   Retirement accounts   Insurance policies, annuities ► ► One FAFSA per student ► ► Renewal of Aid

Timeline ► Complete FAFSA after January 1 ► Receive a Student Aid Report (SAR) hours later ► Review SAR for correctness ► Check if other additional application required or beneficial ► Receive Financial Aid Award Letter before May 1

The Financial Aid Award Letter (or “package” ) Will contain a combination of scholarship, grant, loan and work-study funds scholarship, grant, loan and work-study funds Why might “packages” be different? cost of attendance cost of attendance scholarship criteria and availability scholarship criteria and availability institutional philosophy and funding institutional philosophy and funding federal funding levels federal funding levels

Decoding the Award Letter Compare ► ► COA ► ► Total amount of aid ► ► Types and sources Ask questions ► Is aid renewable? ► Terms for renewing? ► Will aid change from year to year? ► Will costs increase? ► Is more aid available if EFC decreases?

Appeals ► ► Can request change in aid if there is a valid reason ► ► Will it make a difference?   Is need already fully met?   Is more aid available? ► ► Valid reasons   Special circumstances