1. Figuring Out Financial Aid and the FAFSA December 11, 2014
Financial Aid Night:
Figuring Out Financial Aid and the FAFSA
December 11, 2014

2. Merit vs Need-Based Aid
Merit-based aid refers to monies that a student earns based on achievements or accomplishments
Could be for academics, athletics, community service, etc.
Usually in the form of SCHOLARSHIPS – money that is a gift and does not need to be repaid.
Need-based aid refers to monies that are awarded to a student based on the student’s financial status. Need-based aid is often referred to simply as “financial aid”.

3. What is financial aid?
Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses.
Federal funds
State funds
Institutional funds
Private funds

4. Costs for College
Financial aid is used to help cover direct costs, such as:
Tuition and fees
Room and board
Books
The Cost of Attendance (COA) is determined by each institution. This includes all of the direct and indirect costs to attend school here and helps to establish financial need.

5. How do I apply for Financial Aid??
FAFSA – Free Application for Federal Student Aid
Available online at fafsa.gov
You cannot fill out the FAFSA until after January 1st.
You must renew your FAFSA each school year.
There is a paper version, but the online form is much easier to complete. We will have a workshop in February to do this at the school.
This is FREE!!!! If you are asked to pay, it is not the FAFSA!
There are pay sites that offer to help you fill this form out – don’t use them!

6. Facts vs Myths
Myth: My parents make too much money so it’s not even worth filling it out!
FACT: There is no cut-off to qualify for financial aid. Any student that applies will get something
Higher incomes do mean less aid
Many colleges and private scholarships require a completed FAFSA for award consideration.
Financial aid is not based on grades, race, or gender.

7. Get your PIN and keep it!
The FAFSA PIN (Personal Identification Number) is a four digit number that serves as your electronic signature on your FAFSA application every year that you apply for aid.
 All students applying for federal aid and at least one parent if student is dependent need a PIN.
 PINs can be used for:
Electronic signature for submitting FAFSA every year
Making any corrections, IRS data retrieval and additions to the FAFSA
Checking the status, balances and online paying of student loans.
 Apply for a PIN now at pin.ed.gov
Make sure that your SSN is accurate!!!

8. FAFSA Required Information
Personal Info
Social Security Numbers (student and parent)
Birth dates
All financial records
Bank accounts, investments, child support, untaxed income, etc.
2014 Tax Returns and W-2s
Can estimate using 2013 Tax Returns

9. Dependent vs Independent
FAFSA will ask a series of questions to determine this.
Most students are dependent and parents must report their income.
Not living with your parents or not being claimed by them on their taxes is not enough to claim you as independent.
Even if parents refuse to help pay, student cannot be listed as independent unless he/she meets specific criteria.

10. Which Parent Should Report on FAFSA?
If married and living together, report both parents’ income.
If divorced, report that parent that has primary custody or the one that has provided the most financial support in the last 12 months.
Do not just claim the parent with the lower income! Tempting option, but not legal.

11. Entering your FAFSA Info
Can use the IRS Data Retrieval Tool to pull in accurate Tax Info
Won’t be available until at least two weeks after you submit an electronic return.
If you do not have taxes completed, you can estimate using tax returns.
Then after completing returns, update with IRS Data Retrieval Tool.

12. Sign & Submit the FAFSA You will sign the FAFSA using your PIN
Cannot be shared with others!
Students and parents will each have their own unique PIN

13. FAFSA Results: Estimated Family Contibution (EFC)
The FAFSA is used to calculate the EFC.
EFC determines eligibility for federal Pell Grants.
COA – EFC = Financial Need

14. Four Types of Financial Aid
Grants
Scholarships
Work-programs (Work-study)
Loans

15. Grants Free money! Usually need based.
Federal Pell Grant is the biggest source of grant money.
Awarded as part of college’s financial aid package.

16. Scholarships Free money!
Usually require a separate application as determined by the donor.
Can be local, regional, institutional, at state-level, or national
Many require essays!!!
Student is responsible for researching and applying!!!
Watch school website for updated lists!
Check college websites for scholarship opportunities.
NEVER PAY for scholarships!!!

17. Work Programs / Work-Study
Usually funded federally or at the institution level
Provide an on-campus job, but pay-check is considered part of financial aid package.
Each institution determines its own rules and regulations for awarding work-study money.

18. Loans This is money that has to be repaid! Federal Perkins Loans
Low interest rate loan available to the student
Federal Direct Loans
Subsidized – the government pays the interest while the student is still in school
Unsubsidized – the borrower is responsible for all of the interest
Repayment is not required until after student graduates from college.
Federal Direct PLUS Loan
Loan available to parents of dependent students. A credit check is required.
Private Loans
Usually highest interest – not preferable!

19. Financial Aid Package
College will send you a package that includes all of the aid that you qualify for.
Remember the formula: COA – EFC = Financial Need
Wait until you get the financial aid package before making a decision!
Don’t be afraid to call and ask for more! The worst they can say is “No”!
Don’t take more than you need!
Financial aid package can change based on outside scholarships received.

20. Questions???