Financial Aid 101 Jill Haley Independent College Counselor To Do List Jan Fill out the FAFSA

Agenda Overview of Financial Aid FAFSA Basics Financial Aid Tools Cal Grants  Will not discuss specific financial questions related to assets on the FAFSA 2

Handouts FAFSA on the Web worksheet Financial Aid Shopping Sheet List of resources College Admissions Newsletter 3

What is Financial Aid? Money to pay for college Grants- free money that you don’t have to pay back. Usually federal or state monies Scholarships- free money- private or corporate Work-study- paid jobs at college Loans- must pay back. Available to students and/or parents 4

Who can get student aid? U.S. citizen or permanent resident High school graduate/GED holder Valid Social Security number Males registered for Selective Service- No history of drug-related offenses (student) 5

Need-Based/Merit Based Aid Need based aid is financial support given to students whose families cannot afford the total cost of college. Usually in the form of grants, scholarships and loans. Merit based aid is aid given to students because of exceptional talent, high GPA or athletic ability. Usually in the form of scholarships. 6

3 Important Terms FAFSA- document used to determine financial aid eligibility COA- cost of attending specific colleges EFC- estimated family contribution- the amount of money the family is expected to contribute 7

FAFSA FAFSA- Free Application for Federal Student Aid- Be careful of fraudulent sites that ask for money. is free! Good News- FAFSA getting more user- friendly 8

FAFSA Document that is filled out using financial information from parent(s) and student. Used to apply for federal, state grants, work-study and loans. Used by most colleges to determine financial aid both need- based and merit. 9

FAFSA On The Web Worksheet FILL OUT AHEAD OF TIME SAVES TIME WHEN FILING 10

FAFSA and College FAFSA information is sent to each college’s financial aid office that you select on the form Can only list 10 colleges- make sure a CA college is in top 3 Once you receive your Student Aid Report (SAR) form back an go in and update list with other colleges 11

Philosophy of Financial Aid Students and their families have the primary responsibility to pay for postsecondary education expenses if they can..

EFC is the measure of a family’s financial strength as determined by the information on the FAFSA EFC is used to determine the student and parent ability to contribute towards the student’s cost of attendance at college(s) Expected Family Contribution (EFC)

What is Cost of Attendance (COA) Direct costs and indirect costs of going to college Varies widely from college to college

Cost of Attendance (COA) Note: Costs vary from institution to institution Standard CostsOptional Costs Tuition and fees Transportation Room and boardStudy-abroad Books and SuppliesDisability-related services

Calculating Eligibility For Need-Based Aid Cost of Attendance (COA)  Expected Family Contribution (EFC)  Eligibility for Need-Based Aid

How do I apply for student aid? File the FAFSA on or after Jan.1 but as early as possible to meet all deadlines. Based on income form January 1, 2012-December 31,

How do I apply for student aid? 2. Use FAFSA on the Web Worksheet to get ready. Get worksheet at Find a checklist of documents you need at (“What Information Do I Need When I Fill Out the FAFSA?”). Fill out worksheet to prepare your answers. 18

How do I apply for federal student aid? 1. Get a PIN at Parents and students will both need a PIN This is your electronic signature 19

FAFSA on the Web Reasons to file electronically: Faster processing Built-in edits prevent costly errors Skip logic allows student and/or parent to avoid unnecessary questions Use Internal Revenue Service (IRS) data retrieval Can have sent to 10 colleges (paper app only 4)

Watch for response by , from Double-check your information online at (use your PIN to log on Correct any mistakes and update any information as necessary 21

FAFSA information is sent to each financial aid office of the colleges you indicate on the FAFSA.  Watch for s or letters from the schools you are considering Give the schools any additional information they ask for Meet all deadlines or you could miss out on aid! 22

What Happens Next? After you receive your acceptance at a college you will receive a financial aid award letter. Once you decide which school to attend, keep in touch with the financial aid office to find out when and how you will get your aid. 23

Great Tools Financial Aid Shopping Sheet FAFSA4caster College Net Price Calculator 24

Financial Aid Shopping Sheet The Shopping Sheet will standardize award letters, making it easier to comparison shop and provide students with key information. Goal is to provide transparency in the total cost of attendance to families 25

EFC Remains the Same Student A- CSU Chico COA- $24,444 – EFC- $14,000= $10,000 eligibility for aid Student A- Santa Clara University COA= $55,830-EFC-$14,000= $41,830 Eligibility 26

How much student aid can I get? For early estimate, use FAFSA4caster: Go to Enter financial information and get an estimate of your EFC. 27

Net Price Calculator Also can use each Net Price Calculator. Each college is required to post. Estimate of what your net price will be at each college. 28

FAFSA Tips

Student Demographics- both student and parents must fill out financial information Check for: Name matches student social security card Transposed numbers Incorrect data on numeric fields Tip: Use the Help & Hints section on each page. Simple mistakes can delay determining eligibility for aid 30

Dependency Determination “No” to all questions: makes the student “dependent” 24 and under considered a dependent Must submit parent information

Parent Information Parent(s) must answer demographic and financial information to determine ability to contribute to student’s education expenses If married- both parents finances are reported

Divorced or Separated Provide parent’s information for the parent(s) with whom the student lived with most during the last 12 months If the student spent equal time with both parents, use the information for the parent who provided the greatest amount of financial support for the student

Remarried Parent Provide information about the parent and stepparent regardless of: ◦ Agreement of “nonsupport” ◦ Prenuptial agreement ◦ Divorce decree designating tax filing exemptions Note: parent claiming the student on the tax return need not be the parent required to provide data on the FAFSA

Parent Information Do not provide parent information for Foster parent(s) ◦ Student is automatically considered an independent student Grandparents, other relatives or legal guardian(s) ◦ Colleges may use professional judgment to allow the student to file as an independent student

Parent Information For upcoming year Household Size: Parent provides more than 50% financial support Number in College: Student enrolled at least half-time

IRS Date Transfer IRS Data Transfer Transfer information directly from the IRS ◦ Requires PIN ◦ Available January 31 st ◦ After filing tax return

Special Circumstances If students and families have unusual circumstances, contact the financial aid office at the college they plan to attend; the office will advise them on how to proceed.

CAL Grants Only for California colleges- must fill out FAFSA and GPA verification form. Submit the FAFSA by March 2 nd School will submit GPA verification if student turned in their Senior Contract 39

CAL Grants Provides tuition and college fee assistance at 2 and 4 year colleges. Can only be used at California Colleges Have GPA requirements Cal Grants are Free money!!! 40

Questions? 41 Need help? Use call FED-AID for FAFSA. Don’t forget to save or print confirmation page.

Who can get other kinds of financial aid? Colleges, and private scholarships have their own eligibility criteria. Be sure you know what you need to do to qualify. 42

CSS Profile Some colleges may require an additional form besides the FAFSA  The CSS Profile- ask information of both parents regardless of marital status. 43

Loans Money students and parents borrow to help pay college expenses Repayment usually begins after education is finished Only borrow what is really needed Most student financial aid packages have some loans

Loans Must fill out FAFSA for most loans Students should access subsidized loans first. Have lower fixed interest rates( 3.4%) and offer flexible repayment options Parents can take out PLUS loans (7.9%). 45

Summary Before Jan 1, 2013 ◦ Apply for a PIN number for FAFSA ◦ Gather all information needed for FAFSA (FAFSA worksheet) ◦ Narrow down college choices- ◦ Check to see if a CSS Profile is needed 46

Summary After January 1, 2013 ◦ Complete FAFSA ◦ Review your FAFSA information (SAR Report) for accuracy when it is available ◦ Revise income information once tax results are in 47

Summary Add or delete colleges to your FAFSA Respond to all inquiries from college financial aid offices Once admitted to a college you will receive a financial aid offer. Read and compare carefully. Respond to all deadlines (usually May 1 st ) Contact the college you will be attending to earn about additional scholarship opportunities 48

Thanks for coming 49 Contact information: Jill Haley Advantage College Consulting Phone: (530)