1. Financial Aid Presentation
Genesee Community College
1 College Road
Batavia, New York 14020
(585)
Joseph A. Bailey
Assistant Dean for Enrollment services & Director of Financial Aid

2. And then a miracle happens… The Financial Aid process
Courtesy of My College Calendar

3. Topics We Will Discuss What is financial aid? Cost of attendance (COA)
Expected family contribution (EFC)
Financial need
Categories, types, and sources of financial aid
Free Application for Federal Student Aid (FAFSA)
Special circumstances

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

5. Goals For Financial Aid
To assist students in paying for their
educational investment.
To evaluate the family’s financial ability to pay
for educational costs.
To distribute limited resources
in an equitable manner.

6. What is Cost of Attendance (COA)?
Direct costs
Indirect costs
Direct and indirect cost combined into the cost of attendance
Varies widely from college to college

7. Cost of Attendance Tuition and fees Room and board Books and supplies
Transportation
Personal expenses
Loan fees

8. Principles of Needs Analysis
To the extent they are able, parents
have primary responsibility to pay for their
dependent children’s education
Students also have a responsibility to contribute to
their educational costs
Families should be evaluated in their present financial condition
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 its ability to pay

9. Federal Methodology
Federal methodology is the formula created by Congress to determine the Federal Expected Family Contribution (EFC).

10. What is the Expected Family Contribution (EFC)
Amount family can reasonably be expected to contribute
Calculated using data from a federal application and federal formula
Stays the same regardless of college
Two components
Parent Contribution
Student Contribution

11. Definition of Financial Eligibility
Cost of Attendance (COA)
-Expected Family Contribution (EFC)
Financial Eligibility

12. Price vs. Cost Happy College Cost $15,985 EFC $2,375
Eligibility $13,610
Fancy University
Cost $56,350
EFC $2,375
Eligibility $53,975

13. Applying for financial aid
Free Application for Federal Student Aid (FAFSA)
State Specific Applications-New York – TAP
College Scholarship Service (CSS) Profile Form
Institutional Applications

14. Who files the applications?
The student – the applications are always filed from the student’s perspective
The custodial parent and the custodial parent’s spouse
If the custodial parent is remarried (not to the student’s biological/adoptive parent) then the spouse must provide their information on the FAFSA.
As of students must provide information for biological parents who are unmarried, but living together

16. 2016-17 FAFSA on the Web available starting January 1, 2016
Web site:
FAFSA on the Web available starting January 1, 2016
Good reasons to file electronically:
Built in edits to prevent errors
Skip-logic allows student and/or parent to skip unnecessary questions
Option to use Internal Revenue Service (IRS) Data Retrieval Tool to import tax data

17. Good reasons to file electronically:
More timely submission of original application and any necessary corrections
More detailed instructions and “help” for common questions
Ability to check application status online
Simplified application process in the future

18. IRS Data Retrieval
While completing FAFSA online, applicant may submit real-time request to IRS for tax data
within 3 weeks of e-filing
within 8 weeks if filed by mail
Available early February 2016
IRS will authenticate taxpayer’s identity
If match found, IRS sends real-time results to applicant in new pop up window
Applicant chooses whether or not to transfer IRS data to FAFSA
Reduces documents requested by financial aid office

19. IRS Data Retrieval 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
IRS Data Retrieval

20. Federal Student Aid ID (FSAID)
Web site:
Sign FAFSA electronically
Can request before January 1, 2016
Only the owner should create a FSA ID
Not required, but speeds processing
May be used by students and parents throughout aid process, including subsequent school years

21. Federal Student Aid ID (FSAID)

22. Definition of an independent student
Be born before January 1, 1993
Married
Graduate or professional student
Currently serving on active duty in U.S. Armed Forces
Veteran of the U.S. Armed Forces
Have legal dependents (not spouse) who live with and receive more than half of support from student
Have children who receive more than half of their support from student

23. Definition of an Independent student
Age 13+ both parents were deceased, you were in foster care or are dependent/ward of the court
An emancipated minor (determined by court in state of legal residence)
In legal guardianship (determined by court in state of legal residence)
Homeless or risk of being homeless
Determined to be independent by the financial aid administrator

24. Income information to have available when filing
2015 Federal income tax
2014 if using estimates
All 2015 W-2’s
Balance of cash/savings/checking accounts
Net worth of investments (not primary residence!)
Net worth of business and/or farm investments
Child support paid/received
Veteran’s benefits

25. Frequent FAFSA Errors Parent and student 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

26. FAFSA Processing Results
CPS sends Institutional Information Record (ISIR) to colleges listed on FAFSA approximately 10 to 14 days after FAFS is submitted
CPS notifies student of processing results by:
Mail
Student with FSA ID can view Student Aid Report (SAR) online at
Corrections may be made at

27. Verification
Collect documentation from student to compare with data on FAFSA
If student/parent did not use IRS match, student/parent would have to submit IRS Tax Transcript. (Copies of tax returns no longer acceptable!)
Student/parent must request IRS Tax Transcript from IRS either online (tax filers can now set up accounts) or by phone (800)
Federal W-2 forms may be required
Household size will be verified
Untaxed income (including food stamps) will be verified
Keep everything that you get from employers, social services, etc. with respect to any type of income or support

28. Types of Financial Aid GRANTS AND SCHOLARSHIPS: Federal Pell Grant
Federal Supplemental Educational Opportunity Grant (SEOG)
Federal TEACH Grants
State Programs – TAP
University/College Scholarships and grants
External Sources (private scholarships, employee benefits, etc.)

29. Pell Grant Annual minimum and maximum vary $626 minimum for 2015-16
$5,775 maximum for
Maximum of 12 semesters
Only for undergraduate students without bachelor’s degree
Based on financial need

30. Federal Supplemental Educational Opportunity Grant (SEOG)
$100 annual minimum
$4,000 annual maximum
Amounts vary based on available funding at each college/university
Only for undergraduate students without bachelor’s degree
Based on financial need

31. Teacher Education Assistance for College and Higher Education Grant (TEACH)
$4,000 annual maximum ($16,000 undergraduate aggregate limit)
3.25 GPA or qualifying score on admissions test
Agree to teach full time for at least 4 years within 8 years of graduation at a school serving a high percentage of low income students
Agree to teach a specific subject
Repayment required if student does not fulfill teaching requirement. The grant funds turn into the Federal Direct Unsubsidized Stafford Loan

33. New York State Tuition Assistance Program (TAP)
Annual minimum and maximum vary based on the tuition cost of college/university
Maximum amount at SUNY schools can be 100% of tuition cost
Maximum amount at private schools can be up to $5,165
Maximum of 8 semesters (6 of which may be at a community college)
Must be enrolled for full time (at least 12 credits) study
Must meet income requirements

35. Types of Financial Aid Loans
Federal Direct Stafford Loans (Subsidized and Unsubsidized)
Federal Perkins Loans
Federal Direct Parent Loan for Undergraduate
Students (PLUS)
Private/Alternative Loans

36. Stafford Loans Subsidized: Must demonstrate “need”
Unsubsidized: Not based on “need”
Base annual loan limits (combined subsidized and unsubsidized):
$5,500 Freshman
$6,500 Sophomore
$7,500 Junior and Senior 27

37. Stafford Loans Subsidized loan has interest rate of 4.29%
Unsubsidized loan has interest rate of 4.29%
Up to 1.068% loan fee

38. Stafford Loans Repayment begins after 6-month grace period
Maximum repayment period between 10 and 30 years depending on repayment plan chosen
Deferment and cancellation provisions available

39. Federal Perkins Loans Eligible students:
Undergraduate, graduate, and professional students
Priority to students who show “exceptional need,” as defined by school
Loan amount varies
Maximum annual loan amounts:
$5,500—undergraduate students

40. Contact your congressional representative!
Federal Perkins Loans
Interest rate: 5%
9-month grace period
Repayment period may be up to 10 years
Deferment and cancellation provisions available
New Perkins loans not available after October 1, unless funding is put back into federal budget!
Contact your congressional representative! 25

41. PLUS (Parent Loan for Undergraduate Students)
Loan program for parents of dependent undergraduate students
Annual loan limit: COA minus other aid
Fixed interest rate of 6.84%
Fixed 4.272% loan fee based on principal amount of each loan
Repayment begins within 60 days after loan fully disbursed for parent borrowers 31

42. Private Loans Typically higher interest rates than federal loans
Creditworthy and/or require a co-borrower or co-signer
Repayment options not as flexible as the federal loan programs

43. (Internships, Co-Ops, etc.)
Types of Financial Aid
Federal Work Study
Non-Work Study
Alternative Programs
(Internships, Co-Ops, etc.)

44. Scholarships Institutional Local and National
Keep these things in mind when applying for scholarships:
Focus on you, the student
Understand where the scholarship is coming from
Never give your bank account or credit card information out!

45. Reviewing Awards Fancy University Eligibility $53,975 Happy College
Pell Grant $3,425
SEOG Grant $1,000
TAP Grant $5,165
Stafford Loan $5,500
Perkins Loan $2,500
Work Study $2,500
Fancy Grant $33,885
Total: $53,975
Happy College
Eligibility $13,610
Pell Grant $3,425
SEOG Grant $500
TAP Grant $3,000
Stafford Loan $5,500
Perkins Loan $500
Work Study $685
Total: $13,610

46. Lincoln Brutus University
Reviewing Awards
Bentley Burns College
Eligibility $24,500
Pell Grant $3,425
SEOG Grant $500
TAP Grant $5,165
Stafford Loan $5,500
Perkins Loan $1,500
Work Study $1,500
Sunny Grant $3,000
PLUS Loan $3,910
Total: $24,500
Lincoln Brutus University
Eligibility $34,500
Pell Grant $3,425
SEOG Grant $1,000
TAP Grant $5,165
Stafford Loan $2,000
Perkins Loan $1,000
Work Study $1,000
Snobby Grant $20,910
Total: $34,500

47. Good Questions to Ask
What are the financial aid application procedures and deadlines? Which forms are needed?
Does the school meet full eligibility?
What is the process for appealing if my circumstances change?
Is institutional aid based on merit or need?
What happens next year?

48. What Happens Next Year?
For the year, the FAFSA will be available October 1, 2016 (Not January 1, 2017)
The FAFSA will require student and parent income from 2015
Yes, that is the same income information you put on the FAFSA!
This is a big change of when you need to file the FAFSA!
Don’t Wait until January!
Check with your school to determine when they want the FAFSA

49. If you remember nothing else…..
The first “F” in FAFSA means FREE!
Apply for Financial Aid early!
If you don’t know, ask!

50. Resources of Information
Internet
U.S. Department of Education:
FSAID:
FAFSA On Line:
Federal Direct Student Loans:
College Board Online:
New York State Higher Education Services Corporation:
Internal Revenue Service:
Genesee Community College:
Fastweb Scholarship Search (free service):

51. Resources of Information
Telephone Contacts
U.S. Department of Education
(800)
NYS Higher Education Services Corporation
(888)
Genesee Community College
(585)
Internal Revenue Service
(800)