1. Topics to discuss What is financial aid? Cost of Attendance
Expected Family Contribution
Financial Need
Sources of Financial Aid
Free Application for Federal Student Aid (FAFSA)
Timelines
Special Circumstances

2. What is financial aid?
Financial aid consists of funds provided to students and families to help pay for postsecondary education expenses.

3. fafsa
Free Application for Federal Student Aid

4. fafsa
A standard form that collects demographic and financial information about the student and family
May be filed electronically or using paper form
Available in English and Spanish
May be filed at any time during an academic year, but no earlier than the October 1st of the prior-prior year
For the academic year, the FAFSA may be filed beginning October 1st, 2016
MUST FILE FAFSA EVERY YEAR

6. IRS DATA RETREIVAL TOOL
While completing FOTW, applicant may submit real-time request to IRS for tax data
IRS will authenticate taxpayer’s identity
If match found, IRS sends real-time results to applicant in new browser window
Applicant chooses whether or not to transfer data to FOTW
Reduces documents requested by financial aid office
Some will be unable to use IRS DRT
Examples include:
Filed an amended tax return
No Social Security Number (SSN) was entered
Student or parent married but filed separately

8. FEDERAL STUDENT AID ID (fsa id)
Obtain an FSA ID for:
Student
Parent
Electronically sign the FAFSA
Electronically sign other federal documents (loan information etc)

9. Other fAFSA topics of discussion
Dependency Status
School selection
Selective Service
Parent Marital Status
Household Size
Making Corrections
Verification

10. Cost of Attendance

11. Cost of attendance (COA)
Direct Costs
Tuition
Fees
Room
Board
Books (at TMC)
Indirect Costs
Transportation
Personal Expenses
Direct and indirect costs combined into cost of attendance
Varies widely from college to college

12. Expected Family Contribution
EFC

13. Expected family contribution (EFC)
Amount family can reasonable be expected to contribute
Stays the same regardless of college
Two components
Parent contribution
Student contribution
Calculated using data from the FAFSA
The EFC itself CANNOT be changed by the student, parent or financial aid administrator
If subsequent information on the FAFSA is changed (due to error or other circumstances), the EFC has the potential to change

14. What is financial need? Cost of Attendance -
Expected Family Contribution =
Financial Need

15. Types of financial aid Need based aid vs. non-need based aid
Awarded on an academic year basis

16. categories Need-based aid Non-need based aid Federal Grants
State Grants
Some Scholarships
Some loans
Some Student Employment (work study)
Loans
Some Student Employment
Scholarships

17. Types of Financial aid Scholarships Grants Loans Employment Gift Aid
Self-Help Aid

18. Scholarships Money that does not have to be paid back
Awarded on the basis of merit, skill, or unique characteristic
Scholarships
Gift Aid

19. grants Money that does not have to be paid back
Gift Aid
Money that does not have to be paid back
Usually awarded on the basis of financial need
Pell Grant
Institutional Grants
State Grants

20. Federal grant programs
Federal Pell Grant
Iraq and Afghanistan Service Grant (IASG)
Teacher Education Assistance for College and Higher Education (TEACH) Grant
Federal Supplemental Educational Opportunity Grant (FSEOG)

21. Only available for Kentucky residents attending a college in Kentucky
Must complete the FAFSA to determine eligibility
Awarded on a first-come, first served basis (bases on FAFSA Filing Date
(funds usually exhausted first two months FAFSA is available)
Kentucky Tuition Grant (KTG)
$3,000 for the year
Only available at private colleges
College Access Program (CAP
$1,900 for year
Must be PELL (federal) Grant eligible to receive
Kentucky State Grants

22. Money students and parents borrow to help pay college expenses
Repayment usually begins after education is finished
Only borrow what is really needed
Look at loans as an investment in the future
Self-help aid
Loans

23. Federal loan programs
William D. Ford Direct Loan Program Federal Stafford Loan
Subsidized (need-based): interest does not accrue while student is in
school, fixed interest rate of 4.29% for
Unsubsidized (non need-based): interest accrues while student is in school at fixed rate of 4.29% for
Federal PLUS Loan – 6.84% for
Parent can borrow up to Cost of Attendance, less all other financial aid
If denied, student can receive up to $4,000 more per year in Stafford unsubsidized loan funds.
**Interest rates on Stafford and PLUS loans are pegged to market rates each year in June, which take effect July 1 for the upcoming award year.

24. Self help aid: student employment
Allows student to earn money to help pay educational costs
A paycheck; or
Nonmonetary compensation, such as room and board
Student may opt whether or not to work or number of hours to work

25. Special circumstances

26. Cannot be documented using FAFSA
Send written explanation and documentation to financial aid office at each college
College will review and request additional information if necessary
Decisions are final and cannot be appealed to U.S. Department of Education
Change in employment status
Unusual medical expenses not covered by insurance
Change in parent marital status
Unusual dependent care expenses
Student cannot obtain parental information

27. Financial aid process Complete FAFSA (Oct 1st)
FAFSA electronically sent to schools
Any documents needed by the school?
Student Receives Financial Aid Package
Student Accepts aid
Does student/parent want to borrow loans?
If so, complete required loan documents (using FSA ID)
Aid disburses to students bill (usually on semester basis)