The Financial Aid Process Albina Grignon Grignon Educational Consultants

Introduction  How and When to Apply  Types of Aid Programs Available  Additional Financing Options  Outside Scholarships/Aid Renewal/Special Circumstances

How and When to Apply  Request a Federal PIN Number at  Collect Documents  Fill out the pre-application worksheet  Complete FAFSA online at after January 1 st.  Use link to apply for TAP  Keep records

How and When to Apply  Check “will file taxes”  Estimate financial information  Questions? FEDAID or  Terms-Expected Family Contribution EFC  Student Aid Report-SAR  Govt. conducts a “needs analysis” based on financial information submitted

TAP

Types of Aid Programs Available  Grants and Scholarships  - Pell Grant  - TAP Grant  - Merit Scholarships  Federal Work-Study  Federal Perkins Loan  Federal Stafford Loan (subsidized vs. unsubsidized interest around 6.8%) 66% of 4 year college graduates had loans

Additional Financing Options Parent Plus Loan Payment Plans Four Installment Payment Plans set by the college Home Equity Line of credit not a loan. If get a loan and don’t spend all money before next FA form, considered an asset and paying interest on full amount

Other Aid and Special Circumstances  Impact of Outside Scholarships-apply for local scholarships Rotary, Credit Union, professional organizations  Special Circumstances and Appeals  Disability, Death, Divorce will review immediately  Loss of Job, loss of income usually will review in October

Special Circumstances  The parents adjusted gross income is under $50,000 AND  All family members are eligible to file IRS form 1040A of 1040EZ  Then the family qualifies for the Simplified Needs Test which disregards assets when determining the expected family contribution

Avoid Common FAFSA Filing Errors  Missing Signatures  Reporting Income of parent no longer in household  Confusing “Tax paid” same figures as AGI  Reporting “taxes withheld”(W-2) instead of “taxes paid”  Missing income and asset information

Avoid Common FAFSA Filing Errors  Zeros for Worksheet A,B,C  Non custodial parent listed as family income (e.g. grandparent, aunt)  Wrong SSN/Birth date  USE FinAid’s EFC calculator in detailed mode to see where there is any contribution from parent assets.

Strategies 2012 and beyond  Save money in parent’s name not the child’s name or use a 529 savings plan-asset disregarded if owner is other than student or parent such as grandparent  Spend down the student’s assets and income first- student’s assets “taxed by FAFSA” at higher rate in needs formula than parents  If family’s financial circumstances are unusual, make an appointment with financial aid administrator at school  Do not withdraw money from retirement fund since it is viewed as income. Retirement funds not assessed in needs formula. Try to borrow from retirement fund.  Accelerate necessary expenses to reduce cash  Community College for first two years-45% of all first year students start at a community college

Questions?  Please feel free to call me at with any questions you may have.