1. What You Need to Know About Financial Aid Presented by: Scott W. Thum
Indiana Tech

2. Topics We Will Discuss Tonight
Definitions of terms used in Financial Aid
Free Application for Federal Student Aid (FAFSA)
Special circumstances

3. What is Financial Aid?
Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses

4. What is Cost of Attendance (COA)?
Direct costs
Indirect costs
Varies widely from college to college

5. What is Expected Family Contribution (EFC)?
Index number used to determine student’s aid
Stays the same regardless of college
Two components
Parent contribution (PC)
Student contribution (SC)
Calculated using data from a federal application form and a federal formula

6. What is Financial Need? – Expected Family Contribution (EFC)
Cost of Attendance (COA)
– Expected Family Contribution (EFC)
= Financial Need

7. Categories of Financial Aid
Need-based aid
Non-need-based aid

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

9. Sources of Financial Aid
Federal government
State
Colleges and universities
Private sources

10. Federal Government Largest source of financial aid
Aid awarded primarily on the basis of financial need
Must apply each year using the FAFSA

11. Federal Student Aid Programs
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)
Self-Help Programs:
Federal Work-Study (FWS)
Federal Perkins Loans
Subsidized and Unsubsidized Federal Direct Student Loans (Direct Loans)
Federal PLUS Loans

12. Federal Direct Loan Program
Guaranteed Student Loan – no credit check or co-signer
Annual Borrowing Limits established based on grade level
Dependent Student 1st year maximum is $5500.
Repayment is deferred while student is enrolled at least half-time
Subsidized – interest is paid by government while student is in school (1st year – up to $3500 of loan may be subsidized)
Unsubsidized – interest accrues quarterly while in- school
Fixed interest rate established for each academic year. Current rate is 4.45%

13. Parent PLUS Loan
Loan that allows Parent to borrow on behalf of the student.
Credit-based. (If parent has adverse credit, may add a credit-worthy co-signer.)
Parent may borrow up to COA minus other financial aid received.
Fixed interest rate. Rate for is 7.00%

14. State Financial Assistance (CHE)
Frank O’Bannon Grant Program
Higher Education Award – Public institutions
Freedom of Choice Grant – Private institutions
21st Century Scholarship
At public institutions – covers up to tuition and fees
At private institutions – Award amount is capped. (For the year, maximum amount $8,108.)

15. Additional CHE Programs
Child of Disabled Veteran – Available at public institutions only.
Minority Teacher Education Scholarship
Adult Student Grant
Mitch Daniels Early Graduation Grant – Must graduate a full year early from high school. $4000 one-time.

16. State Financial Assistance - Requirements
Student (and parents for dependent students) must be Indiana residents
FAFSA must be received by April 15
There is no deadline on correcting edits, but should be done as soon as possible to determine eligibility.
Part-time application is at the end of FAFSA and on SFA website
Minority Teacher Scholarship on SFA website
Child of Disabled Veteran application on SFA website

17. State Financial Assistance (CHE)
Renewal Requirements
O’Bannon Grant Credit Hour Completion:
Minimum of 30 hours each academic year for maximum awarding (On-time award)
Minimum of 24 hours each academic year for lower award level (Full-time award)
21st Century Scholarship
Must complete 30 hours each academic year

18. Colleges and Universities
Award aid on the basis of both merit and financial need
Aid may be gift aid or self-help aid
Use information from the FAFSA and/or institutional applications
Deadlines and application requirements vary by institution
Check with each college or university

19. Private Sources Research what is available in the community:
Foundations
Businesses
Employers
Charitable organizations
Organizations and churches student and/or parents belong to
Deadlines and application procedures vary widely
Generally late fall/spring of senior year
Begin researching private aid sources early
Small Scholarships add up!

20. 5 Tips for private scholarships
Create folders by application deadlines
Have transcripts, test scores and essays on hand
Keep eyes and ears open everywhere…you never know where scholarships will be advertised
Create a separate for scholarship search process (you can delete it after college graduation)
NEVER pay for scholarship information or applications

21. This form is filed annually File electronically at www.fafsa.gov
Beginning the Application Process -Free Application for Federal Student Aid
The FAFSA is a standard form that collects demographic and financial information about the student and family
This form is filed annually
File electronically at
Available in English and Spanish

22. FAFSA
May be filed at any time during an academic year, but no earlier than the October 1st prior to the academic year for which the student requests aid
For the 2018–19 academic year, the FAFSA may be filed beginning October 1, 2017.
Most colleges in Indiana use March 10 as the deadline for priority funding
State deadline is April 10, 2018

23. FAFSA
NEW
Report income for the 2015 tax year

24. https://fsaid.ed.gov/npas/indexhtm
FSA ID
Sign FAFSA electronically
Not required, but speeds up processing
May be used by students and parents throughout aid process, including subsequent school year
Only the owner should create a FSA ID

25. FAFSA Home Page
FAFSA on the Web home page (

26. Login (continued)
“Login” page.

27. My FAFSA 2017-18 “Get Started” page.
This page was revised to provide clarification on which school year the applicant should apply for based on the school year they are planning to attend college.
The applicant can view the status of his/her FSA ID in the FSA ID section of the My FAFSA page.

28. Create a Save Key
The “Save Key” allows an applicant to save his/her FAFSA application and return at a later time to complete and submit the application. The application is saved for 45 days or until the student submits his/her application for processing. Additionally, the Save Key allows applicants a way to share their application with their parents.

29. Introduction
“Introduction Page”.

30. Student Demographic Information
“Student Demographic Information” page.

31. Student Eligibility 2017-18 “Student Eligibility” page.
The word “college” was added to the question “What will your college grade level be when you begin the school year?”

32. Student Eligibility/High School Search
“Student Eligibility continued” page.

33. School Selection
“School Selection” page.

34. School Selection Summary
“School Selection Summary” page.

35. Dependency Determination
“Dependency Determination” page.

36. Dependency Status Results
“Dependency Status Results” page.
This page only displays if the applicant has been determined to be dependent.

37. Parent Demographics
“Parent Demographic Information” page.

38. Parent Tax Information
“Parent Tax Information” page.
New for , the 2015 tax information will be requested instead of the 2016 tax information. To emphasize this change for students and parents, an alert message will display indicating “Attention! You must provide financial information from your parents’ 2015 tax return on the following pages.”
Additionally, the IRS Data Retrieval Tool (DRT) section of the application has been revised to make the following changes:
The “Did you, the parents, file taxes electronically in the last 3 weeks (or by mail in the last 11 weeks)?” question has been removed.
Parents will not be requested to provide their FSA ID (if not already provided) on the “Parent Tax Information” page prior to clicking “Link to IRS”
The Amended Tax Return and Foreign Tax Return questions have been revised to include 2015 as part of the question.
The definition of the 1040 X amended tax return can be found by following the link that was added to the question.

39. Parent Tax Information (continued)
“Leaving FAFSA on the Web” page.
The “Leaving FAFSA on the Web” page has been revised to provide information on how to utilize the IRS DRT and what will occur if they opt to not use the IRS DRT. This page has been revised to request the parent’s FSA ID to access the IRS DRT.

40. IRS Data Retrieval Tool
Participation is voluntary, but highly recommended
Reduces documents requested by financial aid office
Starting for IRS transferred data will be masked from view to protect your information.

41. IRS Data Retrieval Tool
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

42. IRS Data Retrieval Tool (DRT)
Warning text appears as the IRS DRT site is displayed.

43. IRS DRT (Parent) with User Information
These fields are pre-filled based on FAFSA responses
IRS DRT (Parent) with User Information
IRS Data Retrieval Tool, page 1, containing user demographic information.
Even though the fields at the top are pre-filled based on FAFSA responses, the first name, last name, date of birth, and the filing status can be updated on this page. The Social Security Number cannot be updated.

44. IRS DRT (Parent) Submit and Return Options
IRS Data Retrieval Tool, page 1, containing user demographic information (continued, updated with user information). The user can click “Submit” to retrieve IRS data, or “Return to FAFSA” to discontinue use of the IRS DRT and return to FOTW.

45. IRS DRT (Parent) Data Transfer Options
IRS Data Retrieval Tool, page 2, containing user-specific IRS data.
The user can check the “Transfer My Tax Information…” box and click “Transfer Now” to carry this data back into FOTW.
The user can check the “Do Not Transfer…” box and click “Do Not Transfer” to discontinue use of the IRS DRT and return to FOTW.
The user can click the “Print this page” icon in order to print the data that is displayed on this page.

46. Parent Financial Information
“Parent Financial Information” page.
“Medicaid” has been added as an option under the Federal Means Tested Benefits. On all output documents, this will be listed as part of the Supplemental Security Income (SSI) response.
“School” has been added as part of the “Free or Reduced Price School Lunch” question.

47. Parent Financial Information (continued)
This is the top half of the “Parent Financial Information continued” page. The bottom half of the page is continued on the next slide.
The “Additional Financial Information” section was updated to include “2015” for clarity.

48. Parent Financial Information (continued) – Text Change
This is the bottom half of the “Parent Financial Information continued” page.
The “Untaxed Income” section was updated to include “2015” for clarity.

49. Independent Student, Student Tax Information
“Student Tax information” page.
New for , the 2015 tax information will be requested instead of the 2016 tax information. To emphasize this change for students and parents, an alert message will display indicating “Attention! You must provide financial information from your 2015 tax return on the following pages.”
Additionally, the IRS DRT section of the application has been revised to make the following changes:
The “Did you file taxes electronically in the last 3 weeks (or by mail in the last 11 weeks)?” question has been removed.
Students will not be requested to provide their FSA ID (if not already provided) on the Student Tax Information page prior to clicking “Link to IRS”
The student should click “Link to IRS” rather than “Next” on this page.
The Amended Tax Return and Foreign Tax Return questions have been revised to include 2015 as part of the question.
The definition of the 1040 X amended tax return can be found by following the link that was added to the question.

50. Independent Student, Leaving FAFSA on the Web
“Leaving FAFSA on the Web” page, displayed when the student is going to the IRS Web site.
The “Leaving FAFSA on the Web” page has been revised to provide information on how to utilize the IRS DRT and what will occur if they opt to not use the IRS DRT.
In this case, the FSA ID for the student was entered when logging into their FAFSA, so it is not requested on this page.

51. Independent Student, IRS DRT
Warning text appears as the IRS DRT site is displayed.

52. Independent Student, IRS DRT with user information
These fields are pre-filled based on FAFSA responses
Independent Student, IRS DRT with user information
IRS Data Retrieval Tool, page 1, containing user demographic information.
Even though the fields at the top are pre-filled based on FAFSA responses, the first name, last name, date of birth and the filing status can be updated on this page. The Social Security Number cannot be updated.

53. Independent Student, IRS DRT Submit and Return Options
IRS Data Retrieval Tool, page 1, containing user demographic information (continued, updated with user information). The user can click “Submit” to retrieve IRS data, or “Return to FAFSA” to discontinue use of the IRS DRT and return to FOTW.

54. Independent Student, IRS DRT Transfer Options
IRS Data Retrieval Tool, page 2, containing user-specific IRS data.
The user can check the “Transfer My Tax Information…” box and click “Transfer Now” to carry this data back into FOTW.
The user can check the “Do Not Transfer…” box and click “Do Not Transfer” to discontinue use of the IRS DRT and return to FOTW.
The user can click the “Print this page” icon in order to print the data that is displayed on this page.

55. Independent Student, Student Financial Information
“Student Financial Information” page.

56. Independent Student, Student Financial Information (continued)
Top half of the “Student Financial Information continued” page. Bottom half of the page is continued on the next slide.
The “Additional Financial Information” section was updated to include “2015” for clarity.

57. Independent Student, Student Financial Information Text Changes
This is the bottom half of the “Student Financial Information continued” page.

58. Sign and Submit
This is the top half of the “Sign & Submit” page, where the student signs and actively acknowledges the Certification Statement. Applicants must still actively agree with the certification statement.
Since the student entered his/her FSA ID to go to the IRS to transfers data, he/she is not requested to provide his/her FSA ID Username and Password again to sign the application.

59. Sign and Submit, Parent Signature
This is the bottom half of the “Sign & Submit” page for the dependent student, with the parent signature options and the active confirmation for the parent Certification Statement.
Since the student entered his/her FSA ID to go to the IRS to transfer data, he/she is not requested to provide his/her FSA ID Username and Password again to sign the application.

60. Confirmation Page 2017-18 “Confirmation Page”
Parents of dependent students are offered the option to transfer the parents’ data into another student’s new FAFSA. The link is found on the “Confirmation Page.”
If the applicant leaves the confirmation page before they click this link they will not be able to return to transfer data to the application of a sibling.

61. Frequent FAFSA Errors Social Security Numbers
Divorced/remarried parental information
Income earned by parents/stepparents
Untaxed income
U.S. income taxes paid
Household size
Number of household members in college
Real estate and investment net worth

62. FAFSA Processing Results
CPS notifies student of FAFSA processing results by:
notification containing a direct link to student’s online Student Aid Report (SAR) if student’s was provided on FAFSA.
Student with FSA ID may view Student Aid Report (SAR) online at
Review SAR for accuracy and correct any errors

63. FAFSA Processing Results
Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA is submitted
College reviews ISIR
May request additional documentation
Many colleges only process students who have applied/been accepted to their school

64. Making Corrections
If necessary, corrections to FAFSA data may be made by:
Using FAFSA on the Web ( if student has a FSA ID
Submitting documentation to college’s financial aid office
For State Grant purposes, FAFSA must be free from errors by May 15

65. Special Circumstances
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

66. Special Circumstances
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 (i.e. parents are incarcerated, abusive family environment, parent cannot be located)
Other special situations (discuss with your college/university)

67. Key Information to Remember
File FAFSA by April 15th (estimate if taxes are not complete)
College Goal Sunday is November 5, 2017
Help while filing FAFSA: FED-AID
Review SAR when available, correct any errors
Pay attention to scholarship and college deadlines
Watch out for scams
Contact the financial aid office at your prospective school. Financial Aid Administrators are great resources! Don’t be afraid to contact them.

68. Websites FAFSA: fafsa.gov CHE (state financial aid): in.gov/che
Additional information about student loans, grants, additional resources: studentaid.gov
FREE Scholarship Searches
Fastweb.com
Collegeboard.org
SchoolSoup.com
Scholarships.com