1. Financial Aid for College 2013 - 2014
Financial Aid Presentation NCASFAA/ NCSEAA

2. Financial Aid Presentation NCASFAA/ NCSEAA
Scope of this Workshop
What is financial aid
College costs
Determination of eligibility
Need-based programs
Alternatives
How to complete a FAFSA
Financial Aid Presentation NCASFAA/ NCSEAA

3. Types of Student Financial Aid
Grants
Scholarships
Loans
Employment
Grants and scholarships reduce the cost of college for students and families
Loans and work are considered “self-help” and help students and families manage the cost of college
Financial Aid Presentation NCASFAA/ NCSEAA

4. Financial Aid Presentation NCASFAA/ NCSEAA
Student Financial Aid
Merit-based
academics
talent
athletic
others
Need-based
financial considerations
Financial Aid Presentation NCASFAA/ NCSEAA

5. Need-based Aid Principles
Family is responsible for costs to the extent of its ability to pay college costs
Provides access and choice
Aid is based on a “snapshot” of the family situation, not a video…..
Financial Aid Presentation NCASFAA/ NCSEAA

6. Financial Aid Presentation NCASFAA/ NCSEAA
Basic Formula for Aid
Cost of Attendance (varies widely)
Expected Family Contribution
Eligibility for Need-Based Funds - =
Financial Aid Presentation NCASFAA/ NCSEAA

7. Financial Aid Presentation NCASFAA/ NCSEAA
Direct College Costs
Tuition
Required fees
Room
Meals
Books and Supplies
Financial Aid Presentation NCASFAA/ NCSEAA

8. Indirect College Costs
Transportation
Miscellaneous personal expenses, including documented costs for a personal computer
Loan fees
Financial Aid Presentation NCASFAA/ NCSEAA

9. Financial Aid Presentation NCASFAA/ NCSEAA
What is an EFC?
EFC---Expected Family Contribution
EFC is the end result after submitting a FAFSA
Parent Contribution: Uses parent income and assets (after protecting some assets and income for basic living expenses)
Student Contribution: Uses student income and assets (after protecting some assets and income of $6,130)
Financial Aid Presentation NCASFAA/ NCSEAA

10. Financial Aid Presentation NCASFAA/ NCSEAA
Determination of EFC
Parents’ contribution
+ Student’s contribution
= Expected Family Contribution
Resource to review: FAFSA Forecaster
Financial Aid Presentation NCASFAA/ NCSEAA

11. Applying for Federal Financial Aid
Free Application for Federal Student Aid (FAFSA)
Download the FAFSA on the Web Worksheet via to prepare your form
99.99% of forms are filed online!
Sign with a Personal Identification Number (PIN)
Can obtain paper form: FED-AID ( )
Complete FAFSA at after January 1, 2013 for the next academic year
Results available online in 48 hours and to the institutions you list on the FAFSA
Of the 18m FAFSAs completed last year, only 40,000 were paper!
Financial Aid Presentation NCASFAA/ NCSEAA

12. Financial Aid Presentation NCASFAA/ NCSEAA
What is a PIN?
What is a Personal Identification Number (PIN)?
Issued to an individual and is a “signature” for Federal Student Aid purposes
Faster than using paper signature
PIN will expire if not used for 18 consecutive months
Parent’s PIN may be used for multiple children
Each student must have own PIN
Obtain PIN from
Financial Aid Presentation NCASFAA/ NCSEAA

13. IRS Data Retrieval Tool
(within FAFSA)
Available February 3, 2013
Within several days for electronic tax
Within several weeks for paper tax filers
Available to those who have filed taxes and now are:
Completing the FAFSA
Correcting their FAFSA (updating with IRS data)
Does not apply to
Married but are filing separately
Filing status is Head of Household
Marital status changed after 12/31/12
Those filing amended or foreign tax returns

14. IRS Data Retrieval Tool
To use the Tool, must have:
A valid Social Security Number and
Filed a 2012 federal tax return
The exact street address used on the tax return!
Filtering question on FAFSA helps determine if you can use
IRS Data Retrieval Process meets verification requirements
Secure and FAST option
Students (and parents) not using the “Tool” and selected for verification:
In most cases, must submit an IRS Tax Return Transcript rather than a Tax Return

15. Applying for Financial Aid
Other forms ???
Institutional application
College Scholarship Service PROFILE
State applications
Outside scholarship applications
Financial Aid Presentation NCASFAA/ NCSEAA

16. Financial Aid Presentation NCASFAA/ NCSEAA
Need Help? FAFSA Day 2013
Saturday, February 23, 2013
Any time between 9 a.m. and noon in most locations
Get FREE help completing your FAFSA from college financial aid officers.
Visit CFNC.org/fafsaday or call toll-free at CFNC (2362) to:
Learn more
Find closest location
Register for FAFSA Day
Sponsored by:
College Foundation of North Carolina
North Carolina Association of Student Financial Aid Administrators, and
State Employees Credit Union
Financial Aid Presentation NCASFAA/ NCSEAA

17. Offers to help get aid are everywhere:
In the mail
Over the Internet
In newspapers
In magazines
Over the phone
Financial Aid Presentation NCASFAA/ NCSEAA

18. How do you identify offers that should be avoided?
Organizations that offer to locate more aid and then charge you a fee
Anyone who charges you a fee:
for information about financial aid
to complete the FAFSA
to apply/receive a scholarship
Organizations that guarantee you will get a scholarship or aid.
Financial Aid Presentation NCASFAA/ NCSEAA

19. Where can you find truly free information about financial aid?
Contact College Foundation of North Carolina at CFNC.org or toll free at CFNC
Service of the State of North Carolina
Talk to the college financial aid administrator
Ask your high school counselor
Visit the local library
Apply for federal financial aid at FAFSA.gov
(notice it is not FAFSA.com!)
Financial Aid Presentation NCASFAA/ NCSEAA

20. Applying for Financial Aid
Meet earliest deadline of colleges in which you are interested
Complete all questions accurately
Estimate if necessary to meet early deadlines
Don’t wait until you are admitted to file the FAFSA
Keep a photocopy of all documents for your records
Financial Aid Presentation NCASFAA/ NCSEAA

21. Applying for Financial Aid
Additional documentation may be required… for VERIFICATION of information
Adjusted Gross Income (AGI)
U.S. income tax paid
Untaxed Income – only if reportable on the FAFSA
Untaxed IRA distributions
Untaxed pensions
Education credits
IRA deductions
Tax exempt interest
Financial Aid Presentation NCASFAA/ NCSEAA

22. Applying for Financial Aid
Additional documentation may be required… for VERIFICATION of information – (continued)
Supplemental Nutrition Assistance Program (SNAP – Food Stamps)
Child Support Paid
AND – only for certain applicants
High School Completion Status
Identity/Statement of Educational Purpose
Financial Aid Presentation NCASFAA/ NCSEAA

23. Potential Institutional Adjustments to EFC for Institutional Funds
Minimum contribution from students to their educational costs (summer earnings)
Use home equity in determination of net assets
Make adjustments for medical/dental expenses
Make adjustments in the losses/depreciation claimed for business/farm operations
Financial Aid Presentation NCASFAA/ NCSEAA

24. Special Circumstances
Significant change in your family…
Unemployment of a parent
Death in the family
Change in parents’ marital status
Medical expenses not covered by insurance
Student cannot obtain parent information
Notify the financial aid office at your college of any special circumstances. Be prepared to provide documentation of any change, including the financial impact of the change.
Financial Aid Presentation NCASFAA/ NCSEAA

25. Sources of Financial Aid
Federal Government
State Programs
Institutional funds
Outside agencies
Financial Aid Presentation NCASFAA/ NCSEAA

26. Financial Aid Presentation NCASFAA/ NCSEAA
Federal Aid Programs
Federal Pell Grant
Federal Supplemental Educational Opportunity Grant
Federal Work-Study
Federal Perkins Loan
Ford Federal Direct Loan
Federal TEACH Grant (loan)
Financial Aid Presentation NCASFAA/ NCSEAA

27. North Carolina Aid Programs (partial listing)
NC Community College Grant
UNC Need-Based Grant
NC Education Lottery Scholarship
NC Need-Based Scholarship
Forgivable Education Loan for Service (NC FELS)
Financial Aid Presentation NCASFAA/ NCSEAA

28. NC Reach www.ncreach.org
Funding for former foster youth who:
Age(d) out of NC public foster care at age 18
Were adopted from foster care after age 12
Eligibility requirements
Age 18 – 25 and meet above criteria
NC Community College or one of UNC System’s 16 campuses
Enroll on half-time basis or more
Seek undergraduate degree/certificate /diploma
Program is designed to be combined with other aid and cover the full cost of attendance
Applications and additional information
Financial Aid Presentation NCASFAA/ NCSEAA

29. Institutional and Outside Aid
Institutional Aid
Grants & Scholarships
Loan Programs
Student Employment
Outside Agencies
Local organizations
Churches
Civic Groups
Parents’ employers
Veterans Administration
Financial Aid Presentation NCASFAA/ NCSEAA

30. What about Federal Loans?
Federal Direct Subsidized and Unsubsidized Loans
3.4% for subsidized for
6.8% for unsubsidized
Federal Perkins Loans—5%
Federal Direct PLUS Loans – 7.9%
Parents of dependent students
Graduate or professional students
Financial Aid Presentation NCASFAA/ NCSEAA

31. Financial Aid Presentation NCASFAA/ NCSEAA
Is that all there is?
Private alternative loans for students or parents
Last resort--Always apply for federal loans first!
College payment plans
Outside scholarships
Tax credits – American Opportunity &
Lifetime Learning
Financial Aid Presentation NCASFAA/ NCSEAA

32. Tax Credits - American Opportunity Tax Credit
Available for the first four years of college to assist with tuition, fees and required books.
Up to $2500 tax credit –reduces amount of taxes owed; up to 40% refunded when no income tax due.
100% of first $2,000 expenses and 25% of the next $2,000.
Examples:
Tuition of $8000 paid in May claim $2500 on the tax return completed for 2013 (filed in 2014).
Tuition of $1,200--May claim the full $1,200
Tuition of $3,000--May claim $2,250 (all of the first $2000, and 25% of the remaining tuition…which is $250).
Financial Aid Presentation NCASFAA/ NCSEAA

33. Tax Credits - Lifetime Learning
Available for all years
Can claim for remaining undergraduate years and graduate study as well as professional development classes.
Can claim credit for 20% of tuition & fees, up to maximum of $2,000.
Income restrictions on who can claim Lifetime and American Opportunity Tax Credits ….. Consult with your tax advisor!
Financial Aid Presentation NCASFAA/ NCSEAA

34. IRS Deductions and Credits for 2012
Families with adjusted gross incomes up to $80,000 (single filers) & $160,000 (joint filers) can claim tax credits.
Certain taxpayers will qualify to take a tax deduction for tuition and fees of up to $4,000 (even if they don’t itemize).
Cannot claim American Opportunity or Lifetime Learning Credit in the same year as deduction for same student.
Don’t miss out on the tax credits or deductions! Talk to your tax preparer or do your research.
Financial Aid Presentation NCASFAA/ NCSEAA

35. Additional Information
College Foundation of North Carolina
Federal Department of Education
Student Financial Aid for North Carolinians
The SmartStudent Guide to Financial Aid
Financial Aid Presentation NCASFAA/ NCSEAA

36. FAFSA on the Web’s Homepage

37. Before Beginning a FAFSA
Gather the documents you need
Print a FAFSA on the Web Worksheet
Apply for a PIN now!
Financial Aid Presentation NCASFAA/ NCSEAA

38. FAFSA on the Web Worksheet
Complete the Worksheet to help you complete the FAFSA on the Web
Questions on the Web are presented in a different order than the questions on the paper FAFSA
The questions on the Worksheet are ordered as they appear online
Worksheet is available in PDF form

39. Message for Applicants Who Indicate They “Will File” Their Taxes

40. IRS Data Retrieval Tool Filtering Question
Financial Aid Presentation NCASFAA/ NCSEAA

41. Financial Aid Presentation NCASFAA/ NCSEAA
Dependency
Students are independent if:
24 years old or older
Orphan, foster child/ward of the State
Have children for whom they provide more than 50% support
Have a legal guardian
Married
Veteran or on active duty
Graduate students
Legally emancipated
Homeless or at risk of homelessness
Students not meeting one of the above must include parental information for full aid consideration.
Financial Aid Presentation NCASFAA/ NCSEAA

42. Who Are Considered Parents
on the FAFSA?
Parents living and married to each other
Parent widowed or single
Parents divorced or separated—answer questions for parent
with whom student lived more during past 12 months
If student lived with each parent exactly the same amount
of time, answer for the parent who provided more
financial support during the past 12 months or during the
most recent year that the student actually received
support from a parent
If parent remarried, answer about that parent and the
person whom parent married (stepparent)
“Parent” refers to a biological or adoptive parent
An adoptive parent is treated just like a biological parent

43. Who Are NOT Considered Parents on the FAFSA? Foster parents
Legal guardians who have not adopted the student
Relatives, such as grandparents, who have not adopted the
student
Stepparents who have not adopted the student and the natural parent in the household is deceased. Must use remaining biological/adoptive parent, if any.
NOT considered parents: Grandparents, foster parents, legal guardians, older siblings, and uncles or aunts unless they have legally adopted student
A stepparent who did not adopt the student cannot be the sole parent for determining dependency status. If the other parent dies, the student is still a dependent of the remaining biological parent, not the stepparent. If no biological parent remains, the student is independent

44. Dependent Student Special Circumstance
If parents refuse to complete FAFSA:
Talk to financial aid office.
Student may be allowed to submit the FAFSA without parental information.
Student will only be eligible for an UNSUBSIDIZED Loan.
Parent section is not optional if the student wants total aid eligibility!!
Financial Aid Presentation NCASFAA/ NCSEAA

45. Financial Aid Presentation NCASFAA/ NCSEAA
Signing the FAFSA
After completing the FAFSA, student and parent (if dependent) must sign by:
Entering PIN
Both student and one parent should each have PINs OR
Print signature page, sign and mail to address provided within 7 days
Financial Aid Presentation NCASFAA/ NCSEAA

46. Sign the Application and Submit by clicking “Submit My FAFSA Now”
The Sign & Submit page includes the signature process for the student

47. Confirmation Page Next steps EFC estimate
Pell Grant & Direct Loan estimates

48. What happens after I file the FAFSA?
Complete verification if required.
Respond to any questions from the campus aid office.
Receive financial aid notification.
Reply to offers of aid (and admission).
Complete promissory note if borrowing money.
Notify campus of outside scholarships.
Respond promptly to colleges if additional information requested
Tax return transcripts or other information
College will notify via , Web or mail of aid eligibility
Student should follow colleges’ instructions to accept or decline aid offered.
Financial Aid Presentation NCASFAA/ NCSEAA

49. Financial Aid Presentation NCASFAA/ NCSEAA
Summary
Aid available from federal and state governments
Student and parent should each have a PIN
Get your taxes done before March, if possible!
Complete forms by deadlines
More important now than ever
Use to complete, sign and submit application.
Financial Aid Presentation NCASFAA/ NCSEAA

50. Financial Aid Presentation NCASFAA/ NCSEAA
Questions?
Financial Aid Presentation NCASFAA/ NCSEAA