FINANCIAL AID APPLICATION OVERVIEW Free Application for Federal Student Aid 2011-2012 FAFSA Free Application for Federal Student Aid 2011-2012 FAFSA
WHY COMPLETE A FAFSA? Federal Student Aid uses the data on your FAFSA to calculate an Expected Family Contribution (EFC) Total cost of Attendance - EFC = Financial Need
Estimated Family Contribution (EFC) Your Expected Family Contribution (EFC) is the number that’s used to determine your eligibility for federal financial aid. This number results from the financial information you provided in your FAFSA application.
EFC Cont… Calculation takes into account the following: Adjusted Gross Income (AGI) Untaxed Income (Do not include BAH) Assets and Benefits Number in Household Number in Household Attending College
WHAT AM I ELIGIBLE FOR ? Grants – Free Money Federal Pell Grant (for 2010-2011) if EFC is 5273 or lower Maximum award $5550 Award amounts remain unchanged for 2011-2012 Federal Supplemental Educational Grant (FSEOG) Institutional funds –award amounts up to $1000
What else am I Eligible for? Loans Subsidized Loans –must show need. Unsubsidized Loans Perkins Loans Plus loans – Parents can borrow up to cost of attendance minus any other financial aid award amounts Federal Work Study
Enrollment Status Full time =12 credit hours per SEMESTER Half time = 6 credit hours per SEMESTER …Not sure?
Completing the 2011-2012 FAFSA Online (FAFSA on the web) at www.fafsa.ed.gov www.fafsa.ed.gov FAFSA on the web has built-in-help to guide you through the application process The schools you list on your application will receive your processed information faster.
2011-2012 FAFSA on the Web Worksheet Complete this Worksheet to assist you when you file your FAFSA online DO NOT SUBMIT THIS WORKSHEET!
Section 1 – Student Information To be completed with applicant information only General information such as name, SSN, state of legal residence Marital status (of student) Selective Service Registration for under 25’s (male) Drug Convictions
Section 2 STUDENT DEPENDENCY STATUS A student is considered independent ONLY if they can answer YES to ONE of the questions in section 2. Born before 1 January 1988 Married Have children or dependents other than children that you provide more than 50% support. Active duty Veteran of the U.S. Armed Forces
Section 3 PARENTAL INFORMATION If student answered NO to all questions in section 2, then parents must complete section 3 This section must still be completed even if the applicant does not live with their parents
Section 4 STUDENT FINANCES To be completed by independent students only If the applicant is dependent and has provided the requested parental information then this section does not need to be completed.
NEW FAFSA/IRS LINK On the IRS Web site, enter the requested information. Once the IRS has validated your identification, your IRS tax information will display. You can either transfer your information from the IRS, or choose to return to FAFSA on the Web from the IRS Web site. If you transfer your IRS tax information, questions that are populated with tax information will be marked with “Transferred from the IRS”
What Happens After you Apply Results sent to all schools listed on FAFSA Applicant will receive results via e-mail within 3-5 days (if submitted online) Student Aid Report (SAR) View and print the SAR SAR will have Estimated Family Contribution and Data Release Number (DRN)
How much can I borrow? (Independent Students) 1 st year undergrad $9,500 total Maximum of $3500 in subsidized 2 nd year undergrad $10,500 total Maximum of $4500 in subsidized 3 rd year and beyond $12,500 total Maximum of $5500 in subsidized Graduate students $20,500 total Maximum of $8500 in subsidized
… And the borrowing limit for Dependent Students 1 st year undergrad $5,500 total $3,500 Subsidized 2 nd year undergrad $6,500 total $4,500 Subsidized 3 rd year and beyond $7,500 total $5,500 Subsidized
Paying back Student Loans FIXED Interest Rates: Subsidized Loans: 3.4% Unsubsidized Loans: 6.8% Due to be paid back 6 months after Graduation, stop attending, drop to less than half time attendance Perkins Loan 5% interest rate Pay back 9 months after Graduation….. Plus Loan – 7.9% Fixed interest rate Pay back 60 days after disbursement (while still in school)
Repayment Options 1.Standard Plan - fixed payment, fixed time not to exceed 10 years. 2.Graduated Plan – payments gradually increase, fixed time not to exceed 10 years. 3.Extended Plan – must owe over $30, 000, not to exceed 25 years 4. Income Contingent Plan – terms vary.
Information can be found by visiting the following links: http://www.fastweb.org/
NEED MORE HELP ? For further assistance with the FAFSA application call 1-800-4-FED-AID or 1-800-433-3243 toll free or access www.fafsa.ed.gov You may also access the Departments federal student aid Web site at www.studentaid.ed.gov For scholarship searches check out www.fastweb.org and/or www.finaid.org