1. 1 OCAN Advisor Training, August 8, 2012 Lawrence Matthews Director of Financial Aid Bluffton University matthewsL@bluffton.edu Financial Aid 101

2. 2 Information: financial aid process  The Key to obtaining Financial Aid is understanding how the system works. Introduction to training NCAN’s Advisor Training Module (ATM) – Chapter 7 (July 2011), The Guide to Federal Student Aid 2012-13, PowerPoint and handouts

3. 3 OASFAA Disclaimer The Ohio Association of Student Financial Aid Administrators (OASFAA) is a non-profit organization and provides the following information as a free service to access staff and high school counselors. Access staff and high school counselors have permission to copy and distribute these materials to their 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 Outreach Chairperson listed on the OASFAA web site or e-mail:outreach@oasfaa.org

4. 4 What is Financial Aid?  Scholarships  Grants  Loans  Employment opportunities Purpose is to provide: Choice and Access NCAN ATM, pg 4

5. 5 Categories of Aid  Merit-based - Scholarships (performance)  Need-based - Grants - Loans - Work-study jobs  Non-Need Based Aid - Loans - VA Benefits

6. 6 u To the extent they are able, Parents have the primary responsibility to pay for their dependent child’s education. Students also have a responsibility to contribute to their educational costs (The Guide pg.15). u Families should be evaluated in their present financial condition. u 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 a family’s ability to pay. Principles of Need Analysis NCAN ATM, pg 2

7. 7 Cost of Attendance - Expected Family Contribution (EFC) = Eligibility Tuition and fees Room and Board Books, supplies, Personal, travel Financial Aid Need Definition of Need The Guide pg.6; ATM pg.2 Student’s + Parent’s Contribution Because most federal student aid funds are limited, the total amount awarded to you might fall short of the amount for which you are eligible. FSA Guide, 07-08

8. 8 Expected Family Contribution u “The EFC is calculated…, according to a formula established by law.” The Guide pg.6,8 The formula does not measure willingness to pay! “ The questions on the FAFSA are required to calculate your Expected Family Contribution (EFC). The EFC measures your family’s financial strength and is used to determine your eligibility for federal student aid. Your state and the colleges you list may also use some of your responses. They will determine if you may be eligible for school or state aid, in addition to federal aid. ” from FAFSA paper instructions, 2012-2013, pg. 10 “The EFC is not the amount of money that your family must provide. Rather, you should think of the EFC as an index that colleges use to determine how much financial aid you would receive if you were to attend their school.” FAFSA4Caster

9. 99  Increased income protection allowance for dependent students: 06-07$2,550 07-08$3,000 (HERA) 08-09$3,080 09-10 $3,750 (CCRAA) 10-11$4,500 11-12$5,250 12-13$6,000 Higher Education Reconciliation Act of 2005 (HERA) College Cost Reduction and Access Act of 2007 (CCRAA) Asset conversion rate for dependent students is 20%

10. 10 Need Comparison Higher Cost Mid Cost Lower Cost Institution Institution Institution Cost of Attendance $40,000 $28,000 $13,000 - EFC $8,000 $ 8,000 $ 8,000 = Need / Eligibility $32,000 $20,000 $ 5,000 The Federal Expected Family Contribution (EFC) is the same at each institution. Handout: Cost comparison worksheetNet Price Calculator ED’s “Shopping Sheet”

11. Net Price Calculator http://www.netpricecalculator.info/

12. 12 How/When to file if dealing with early deadlines:  Use a completed tax return if possible Or follow a two-step process (The Guide pg 13, ATM pg 33): Step 1: Apply and estimate your tax information on your application Step 2: Make corrections later if your income or tax information was not accurate. Handout: FAFSA A Word about Deadlines They’re REAL FAFSA priority deadline survey

13. 13  10 page booklet containing: Instructions 103 questions organized into 7 steps Special Circumstances If you or your family has unusual circumstances that might effect your financial situation (such as loss of employment), complete this form to the extent you can, then submit it as instructed and consult with the financial aid office at the college you plan to attend. Deadlines

14. 14 Special Circumstances The Guide, pg.8,15; NCAN ATM pg.41 Examples: reported to the financial aid office  Medical  Parent or student loss of income –Loss of child support  Unusual debt or one-time income  Tuition expenses at an elementary or secondary school  Parent in College u The financial aid administrator must have compelling reasons to use professional judgment. u The financial aid administrator’s decision as to whether you have special circumstances is final and cannot be appealed to us (ED).

15. 15 Special Circumstances (cont’d) What about stepparent’s information?  Paper FAFSA, pg.9, column 2  The Guide, pg.15 What about dependency status?  The Guide, pg.14-15 (and errata)  NCAN ATM, pg.34, 41  2012-13 paper FAFSA, pgs.5,9

16. 16 Verification  Selected by the Central Processing System (CPS) or the Institution  Keep copies of 2011 Tax documents (for 12-13 FAFSA)  If selected, completion is required before aid can be disbursed  Verification materials are sent from the student or family to the financial aid office, not to the federal processor ATM pgs 27-29, 40

17. 17 Verification and IRS Data Retrieval ATM, pgs.27-29, 40  Available now (12-13)  Can be used with initial filing of the FAFSA For 12-13 and beyond (ATM, pgs.28-29):  Can and should be used when filing the initial FAFSA, making corrections, or when changing estimated tax information to actual tax information

18. FAFSA Worksheet IRS Data Retrieval tool Beginning February 1, 2012 students and parents who have completed their 2011 IRS tax return will be able to use FAFSA on the Web to electronically view their tax information. With just a few simple steps the tax information can also be securely transferred into the FAFSA.

19. Verification video of: IRS Data Retrieval Choose Step 5 Verification 7 Easy Steps to the FAFSA On YouTube Produced by UCSB Financial Aid Office

20. 20 Basic Steps for First-Time Filers  Apply for admission.  Complete and transmit (or mail) the FAFSA, The Guide, pgs.13-16; ATM pg.31ff Two ways to file : 1) If you have access to the internet, you are encouraged to file electronically, or…

21. 21  10 page booklet containing: Instructions 103 questions organized into 7 steps If mailing your FAFSA to the processor: Make A Copy 2) File a Paper FAFSA

22. 22  Simplified options  Updated graphics  An updateable announcement section  Access to FAFSA PDF and paper FAFSA information 22 www.FAFSA.gov FOTW Homepage

23. 23 FAFSA Filing Options Provides the three options for applying including the PDF FAFSA. 23

24. 24 08-09 changes that were retained ATM pg.31 Real-Time PIN  Issued upon request (FOTW or PIN Site)  Valid for FAFSA unless subsequent SSA match fails Number of School Choices  Increased to ten on FOTW  Remains four on paper PDF FAFSA filing option at: www.federalstudentaid.ed.gov www.federalstudentaid.ed.gov  Print a paper version to complete, sign/date, and mail.

25. 25 A parent only needs one PIN to sign for multiple children The PIN, www.pin.ed.gov The Guide pg.14; ATM pgs. 31-32www.pin.ed.gov

26. 26 FOTW Homepage 26 FAFSA worksheet discussion “Completing the FAFSA” www.studentaid.ed.gov/ completefafsaCompleting the FAFSA

27. FOTW demo  http://fafsademo.test.ed.gov/  ID: eddemo  PW: fafsatest Once logged in, scroll to bottom and select FAFSA on the Web Demo System FAFSA submissions by High School  Google: FAFSA submissions by High School

28. 28 Detailed College Info and Comparison when completing FOTW College’s website School type Tuition and fees Net price average Graduation rates Retention rates Transfer rates 28

29. 29  Complete and mail any supplemental forms required by the college or state agency. CSS PROFILE, ATM pg.38, State/Institutional/Access, ATM pg.45  Watch for your financial aid award letter or Financial Aid package or “Shopping Sheet” from the college/university. – Samples: ATM pgs.57ff  Apply for admission.  Complete the FAFSA after January 1.  Review your Student Aid Report (SAR, ATM p.43). Update estimated information, make corrections or contact the Financial Aid Office if corrections needed. Basic Steps for First-Time Filers

30. 30 Scholarship Searches & SCAMS  Free Scholarship searches vs. searches for a fee: ATM pgs.47ff  Protecting Identity  www.studentaid.ed.gov/LSA

31. 31 www.statevoucher.org

32. Ohio College Opportunity Grant (OCOG)  Students must file the FAFSA, be Ohio residents and attend an Ohio Public or Private Institution  The Expected Family Contribution (EFC) is the index number for awarding OCOG  EFC eligibility range is from 0000-2190  A part-time student will receive a pro-rated award  Available for continuous enrollment (includes summer)  Other Ohio programs http://regents.ohio.gov/sgs/  War Orphans  National Guard  Safety Officer Memorial  Nurse Education Assistance Loan Program (NEALP)  Choose Ohio First

33. 33 Ohio College Opportunity Grant 2011-2012$1872Private Colleges/Universities 2012-2013$2280 2011-2012$ 672Four-year public universities 2012-2013$ 856 2011-2012$ 192Private, For-Profit 2012-2013$ 480

34. 34

35. 35 Federal Pell / SEOG Grants  Pell Grant (2012-2013) EFC of 00000 = $5550 maximum Pell EFC of 04995 = $ 602 minimum Pell *Need Based *Must file FAFSA *Portable *Part-time eligibility *Life-time eligibility used (LEU): 6 full-time years  Federal SEOG Grant *Exceptional financial need *Lowest EFC’s (Pell Eligible students are priority) *Award ranges from $100 to $4000 FAFSA Priority Deadline for campus based programs Campus Based Handout: 2012-2013 FSA at a Glance

36. 36 Federal Work-Study  Undergraduate or graduate students are eligible  Employment can be on or off campus  FWS wages excluded from EFC calculation!!!  Eligible employers School Federal, state, or local public agency Private non-profit organization in academically relevant jobs For-profit organization in academically relevant jobs Community service activities Campus Based Ohio minimum wage in 2012: $7.70 per hour

37. 37 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 Campus Based The Guide, pg. 9, 17-18

38. 38 Budget Control Act of 2011 (August 2, 2011) Consolidated Appropriations Act of 2012 (December 23, 2011)

39. Takeaway: Student aid is caught up in a much larger political dysfunction & ideological impasse. Takeaway: Student aid changes will likely continue to come through the budget process

40. Takeaway: Important to keep in mind student aid has already taken a big hit this year: Elimination of Year-Round Pell; Elimination of LEAP; 0.2 percent across the board cut Loss of funding from ACG/SMART Increase in student loan interest rate in 2012-13 2013-14

41. 41 Budget Control Act Congress passed on August 2, 2011 DCL: GEN-11-16 (Aug. 31, 2011) Main provisions for student aid: ◦Eliminate in-school interest subsidy for graduate students ◦Eliminate Direct Loan repayment incentives ◦Provide $17 billion for Pell Grants for FYs 12 and 13

42. 42 Consolidated Appropriations Act of 2012 Congress passed on 12/17/11, President signed into law 12/23/11 Main provisions for student aid (GEN-12-01): ◦Saved maximum Pell at $5550 for 12-13 ◦Minimum Pell is $602 for EFC maximum of 4995 (was 5273) ◦Pell eligibility reduced from 18 FT semesters to 12 FT (prorated for PT) [impact on all students, not just new Pell recipients] ◦Reduce auto-zero-EFC threshold from $32,000 to $23,000 ◦Qualifying for federal aid through an ability-to-benefit test or successfully completing six credit hours is eliminated, eff. 7/1/12 ◦Subsidized loans between 7/1/12 and 6/30/14 will not be eligible for interest benefits during six-month grace period

43. Direct Loans, 2012-2013 43 Subsidized Unsubsidized Need basedNot based on financial need Interest is fixed at 6.8% for all new undergraduate loans disbursed after July 1, 2012. Interest is subsidized while the student is in school and during deferment. Interest is fixed at 6.8% for all new loans disbursed after July 1, 2006. 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. The Guide, pgs. 9-11, 17-18 3.4%

44. 44 Direct Loans, 2012-2013 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

45. Cost of Education (COA) - Expected Family Contribution (EFC) = Eligibility Financial Aid Need Definition of Need Unsubsidized Subsidized $2000 more in Unsubsidized

46. Federal Direct Loan Subsidized or Unsubsidized  Long-term loan; must be repaid (must file FAFSA) 10 year maximum repayment period –additional repayment options are available  Repayment begins 6 months after student graduates or drops below half-time enrollment status  Consolidated Appropriations Act of 2012: For subsidized direct loans between 7/1/12 and 6/30/14, Congress eliminated subsidized interest benefits during six-month grace period after a student graduates or falls below half-time enrollment (The Guide errata). Handout: repayment chart

47. Direct Parent PLUS, 2012-2013 Parent PLUS Loans Loans to parents of dependent students. Loan limits are up to the cost of education minus 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. 47 Private Education Loans are also available The Guide, pg. 9

48. Direct Loan Fees, 2012-2013 Direct Loan Fees for students (sub and unsub) 1% origination fee deducted from the borrowers disbursement so the borrower nets 99% of what is borrowed. Parent PLUS Loan Fees 4% origination fee deducted from the disbursement so the borrower nets 96% of what is borrowed. 48

49.  File the FAFSA  Complete admission process at the school you plan to attend.  Review the award letter from the school to learn about eligibility.  Go to www.studentloans.govwww.studentloans.gov Sign in using your Federal PIN Student: complete entrance counseling AND MPN (Master Promissory Note). Parent: complete PLUS application AND MPN. How do I apply for Federal Direct Loans?? (Deadline to apply is before the end of enrollment period)

50. 50 u TEACH grants Provides $4,000 per year (prorated for part-time) –Not to exceed $16,000 for undergraduate students and $8,000 for graduate students –Must be used for tuition and fees (but can be used for room & board if institutionally owned housing) Teacher Education Assistance for College and Higher Education (TEACH) ATM pp.14-16; The Guide, pg.8 www.teachgrant.ed.gov

51. 51 Getting Help  Federal Student Aid Information Center (inside cover of The Guide): 1-800-433-3243  www.federalstudentaid.ed.gov www.federalstudentaid.ed.gov

52. 52 www.federalstudentaid.ed.gov

53. 53 www.fsa4counselors.ed.gov

54. 54 www.oasfaa.org

55. 55 www.FinAid.org

56. 56 Training opportunities Visit www.oasfaa.org...www.oasfaa.org  For information on Counselor workshops to be held December 3-7, 2012: Locations TBA  OASFAA/OCAN Winter Conference  December 12-14, 2012, Renaissance Downtown Columbus OACAC Articulation Workshops: www.oacac.org  September 11-14, 2012  Tuesday, September 11 – Miami University Wednesday, September 12 – Ohio University Thursday, September 13 – University of Findlay Friday, September 14 – Baldwin-Wallace University

57. 57 OCAN Advisor Training, August 8, 2012 Lawrence Matthews Director of Financial Aid Bluffton University matthewsL@bluffton.edu Questions???