2012 High School Advisor Training Federal and State Update

About OASFAA & this presentation OASFAA is a non-profit organization comprised of volunteer financial aid professionals. OASFAA has provided the information today as a free service to access staff and high school counselors. You have permission to copy and distribute these materials to your students and families. Charges may not be assessed for the material or for the information presented. Permission must be granted for other use of this information or these materials. Contact the OASFAA Outreach Chairperson(s) listed on the OASFAA website, or the OASFAA Outreach Committee at 2

3 “The Guide” “The Guide” refers to The Guide to Federal Student aid. “The Guide” is available free to download from A hard copy can also be requested for free from the same website.

But before we get started... Parents and students have the primary responsibility for meeting college costs. The distribution of financial aid resources should be based on the family’s ability to pay—not willingness to pay. The assessment of a family’s ability to pay should be independent of the amount of financial aid available and cost of attending college. 4

Definition of “Need” 5 Cost of Education (COA) - Expected Family Contribution (EFC) =Need

Today’s Agenda Deadline and FAFSA Overview Program Integrity Updates Update on Federal Aid Programs Update on State Aid Programs Review of Resources 6

Deadline and FAFSA Overview 7

8 Priority Deadlines Priority deadlines are very real, and should be treated as such! Schools may have a FAFSA deadline AND an admissions deadline-be aware of the difference.

9 Priority Deadlines If a FAFSA priority deadline exists, it is best to use completed tax information via the IRS Data Match process. If taxes have not been completed, use estimated income and tax information. Make sure to update your FAFSA with IRS Data Retrieval once tax filing is complete.

10 Federal PIN Homepage   Allows the student and parent to establish a federal pin number, which is needed to electronically sign the FAFSA.

11 FAFSA on the Web Homepage   Simplified options  An updateable announcement section  Access to FAFSA PDF and paper FAFSA information

12 Need a little help completing the FAFSA?  “Help” icon  Live online chat  option  FED-AID  College Goal Sunday  Ex6RMAHE8&feat ure=plcp Ex6RMAHE8&feat ure=plcp

13 Detailed College Info and Comparison College’s website School type Tuition and fees Net price average Graduation rates Retention rates Transfer rates

Higher Education Reconciliation Act of 2005 (HERA) College Cost Reduction and Access Act of 2007 (CCRAA) ▼ Increased income protection allowance for dependent students: 11-12$5, $6, $6,130 Bust the myth! A summer job won’t “count against me”! 14

Program Integrity Updates 15

Satisfactory Academic Progress (SAP) Policy What is Satisfactory Academic Progress (SAP)? SAP refers to ensuring that a student progresses toward the completion of a degree or certificate in a timely manner, as prescribed by The U.S. Department of Education (ED). ED is now requiring schools to have a SAP policy separate from an institution’s academic standards policy. 16

17 Elements of SAP ED states that every school’s SAP policy must include three (3) elements: Grade Point Average, or GPA 2.0 GPA or higher Completion Percent 67% cumulative completion percent Maximum timeframe for degree/certificate completion 150% of the program requirements.

Consequences of not meeting SAP elements ▼ Financial Aid Warning –A student will have one semester of financial aid warning. Students will still be eligible for federal aid during the financial aid warning period, but must meet all SAP elements before the beginning of the upcoming semester. –Schools are not required to extend a warning period if they only review SAP annually. 18

Consequences of not meeting SAP elements ▼ Financial Aid Suspension –A student who fails to meet all SAP elements by the end of the financial aid warning period will be subject to financial aid suspension. –The student loses all federal aid, and potentially lose state and private aid, as well. ▼ Schools may have separate financial aid and academic policies. Both will apply to the students! 19

SAP: Appealing Financial Aid Suspension ▼ Students who face financial aid suspension may have the ability to appeal the suspension. –Appeal avenues may vary from school to school; please check with the individual Financial Aid Office to review their specific appeals process. 20

 What is verification?  Financial Aid Verification is the process of establishing the accuracy of the information submitted on the FAFSA. Verification

▼ Why was I selected for verification? –The Common Processor (a.k.a. The U.S. Department of Education) selects applicants for verification based on statistical analysis. –Every institution is required to verify at least 30% of their FAFSA filers.

Verification ▼ How does a student complete the verification process? –The best thing to do is to read through any/all communication received from the institution, as it will guide you through the process.

Verification Changes in the verification requirements. High School completion status. Identity/Statement of Educational Purpose. Previous verification items are still in play!

Verification What documents are acceptable? Official High School Transcript to verify high school completion. State issued photo ID for identity. ED is to provide a form to complete for Statement of Educational Purpose.

Verification  What documents are acceptable for financial information?  IRS Data Retrieval Tool   IRS Tax Transcript     This can also be obtained in person if you have a local IRS office.  Students need the Tax Transcript, NOT the Account Transcript.  W2’s for non-tax filers.

Verification Challenges in using IRS Data Retrieval Tool It is only available 1-2 weeks after e-filing; 6-8 weeks when returns are mailed. Address must match EXACTLY as shown on return. Folks filing an amended return or who are married filing separately are not eligible.

Verification Documentation for Independent Students  Guardianship, ward of the court  Must have copy of court document  Homelessness  Homeless liaison, pastor, school counselor

Special Circumstances Sometimes, things outside of the federal mold happen. Financial Aid offices can make changes to a student’s FAFSA information based on special circumstances. 29

Net Price Calculator Strengths Designed to provide accurate and timely information about the net price of a college. Can assist families in comparing colleges based on net price and financial aid.

Net Price Calculator Weaknesses Inclusion of direct and indirect costs in “price of attendance” component can significantly inflate the price tag. Institution’s flexibility to customize template could make college costs comparisons an extremely complex process.

Shopping Sheet ▼ Many schools will be using what’s referred to as a “Shopping Sheet”. This could replace, or supplement, their current award letter. 32

Update on Federal Aid Programs 33

Political Climate ▼ Three current climate drivers: –Partisanship & Brinkmanship –Budget politics dictating policy –“The status quo” 34

Political Climate ▼ What’s the takeaway? –Student aid is caught up in a much larger political dysfunction & ideological impasse. –Student aid changes will likely continue through the budget process. 35

36 Federal Aid Programs, Pell Grant TEACH Campus Based Programs Direct Loans

Federal Pell Grant Maximum award amount increases slightly for $5,635 maximum award for full-time enrollment and an Expected Family Contribution (EFC) of zero. Maximum Expected Family Contribution (EFC) for Pell eligibility has been lowered to

Federal Pell Grant Students now have a maximum number of terms they can receive Pell Grant 600% of an annual award amount, or the equivalent of 12 full time semesters. 38

39 TEACH, No Changes! Grant of up to $4,000 per year to students who intend to teach in a public or private elementary or secondary school that serves students from low- income families. Service requirement upon graduation must be met, or grant becomes an Unsubsidized Stafford Loan that must be re-paid!!

40 Campus Based Programs, We are anticipating a reduction in funding for However, the decrease will vary from school to school, and exact funding amounts have yet to be announced. Federal Perkins Loan Federal Supplemental Education Opportunity Grant (SEOG) Federal Work Study

Undergraduate or graduate students are eligible Employment can be on or off campus FWS wages are excluded from EFC calculation!!! Ohio Minimum Wage in 2013 is $7.85/hour There is a difference between work study and “work” or “summer job” on an award letter. 41

Federal Supplemental Educational Opportunity Grant (FSEOG) ▼ Federal SEOG –Undergraduates with exceptional financial need. Pell Eligible students with the lowest EFC –Award ranges from $100 to $4000, depending on when student applies, financial need, and the funding and policies of school attending. 42

43 Federal Perkins Loan Eligible students (priority to exceptional need) Undergraduate or graduate students Must file the FAFSA Annual and aggregate loan limits up to $5,500 annually for undergraduates (actual awards, if any, will vary between schools) $27,500 aggregate for undergraduates Interest rate: 5% (fixed) during repayment Interest subsidized during in-school and nine-month grace period Deferment and cancellation provisions available

Direct Loans, SubsidizedUnsubsidized Need basedNot based on financial need Interest is fixed at 6.8% for all new undergraduate loans disbursed after July 1, Interest is subsidized while the student is in school during deferment. Interest is fixed at 6.8% for all new loans disbursed after July 1, Interest accrues from time of disbursement of the funds. ▼ Direct Subsidized and Unsubsidized Loans are two separate, unique types of loans that are awarded separately.

45 Direct Loans, ▼ Independent Students and Dependent Students whose parents have been denied the PLUS Loan are eligible for additional Unsubsidized Stafford Loans ($4,000 as Freshmen and Sophomores and $5,000 as Juniors and Seniors) Class YearBase Amount Additional Unsubsidized Amount Total Available to Borrow Freshman$3,500$2,000$5,500 Sophomore$4,500$2,000$6,500 Junior$5,500$2,000$7,500 Senior$5,500$2,000$7,500

Direct Loans, Subsidized and Unsubsidized Loans 1% default origination fee. Parent and Graduate PLUS 4% default origination fee. All fee rebates were eliminated as of July 1,

47 Direct Loans, FAFSA Follow instructions at school attending Entrance Counseling MPN Disbursement to student account Notification of servicer (instruct students to watch and save /snail mail)

Direct Loans, Parent PLUS Loans Loans to parents of dependent students. Loan limits are up to the cost of education less any financial aid received. Interest rate is 7.9% fixed. Repayment begins within 60 days of full disbursement. Payments may be deferred while the student is in school. FAFSA completion is required. 48

Update on State Aid Programs 49

50 Ohio Aid Programs, Ohio College Opportunity Grant (OCOG) War Orphans Scholarship National Guard Scholarship Safety Officers Memorial Fund Nurse Education Assistance Loan Program (NEALP) Choose Ohio First Scholarship

Historical look at need based Ohio aid 51

Ohio College Opportunity Grant (OCOG) Students must file the FAFSA, be Ohio residents and attend an Ohio public university main campus (not regional campuses or community colleges), Ohio private, non-profit colleges or universities, and Ohio private, for- profit institutions. The Expected Family Contribution (EFC) is the index number for awarding OCOG EFC eligibility range is from A part-time student will receive a pro-rated award Available for continuous enrollment (includes summer) 52

53 OCOG, ▼ is the first year of the new biennium budget. ▼ Although we are optimistic that awards will not change, we just don’t know.

War Orphans Scholarship For Ohio dependents of deceased or majority disabled veterans. Funding levels are reviewed annually, so funding for will not be determined until approximately July Initial reports indicated funding levels will stay the same as in The current annual, full-time award is 93% of tuition and general fees at all Ohio public colleges and universities. The current annual, full-time award for students at eligible private colleges and universities (both non-profit and for-profit) is $5,

Ohio National Guard Scholarship Eligibility determined by the Ohio Adjutant General. Funding levels are reviewed annually, so funding for will not be determined until approximately July Initial reports indicated funding levels will stay the same as in The current annual, full-time award is 100% of tuition and general fees at all Ohio public colleges and universities. The current annual, full-time award for students at eligible private colleges and universities (both non-profit and for-profit) is $8,

Safety Officers Memorial Fund Scholarship For Ohio dependents and spouses of safety officers killed in the line of duty. Funding levels are reviewed annually, so funding for will not be determined until approximately July Initial reports indicated funding levels will stay the same as in The current annual, full-time award is 100% of tuition and general fees at all Ohio public colleges and universities. The current annual, full-time award for students at eligible private colleges and universities (both non-profit and for-profit) is $9,

57 NEALP, Loans for RN candidates and graduate nurse faculty students Loans can be forgiven with 4 to 5 years of service as a nurse or nurse instructor in Ohio upon completion of degree Loans range from $1,500 to $5,000

58 Choose Ohio First Scholarship, Various programs with STEM concentrations State funding for these programs will increase slightly for , but individual awards will vary from school-to-school. Partnerships of private/public schools apply for funding (ex. Public community college and private four-year institution.

Ohio Education and Training Voucher Program Eligibility requirements: In foster care on their 18 th birthday and aged out at that time. Adopted from foster care with the adoption finalized after their 16 th birthday Foster care case closed between the ages of 18 and

Review of Resources 60

College Goal Sunday Sunday, February 10, sunday.orgwww.ohiocollegegoal sunday.org Student/Family registration is now available. Please check the website for locations near you. 61

Request a Financial Aid Night Presenter 62

Ohio School Counselor Resources “Binder” ▼ “Ohio School Counselor Resource Binder Inserts” 63

Resources 64

Resources 65

Resources 66

Resources mpletion.html 67

Resources Federal Student Aid Information Center (inside cover of “The Guide”) (800) Federal Student Aid Publications Website Ohio College Access Information Hotline (877)