Presentation on theme: "FINANCIAL AID Information for High School Students & Their Families Rockville High School January 6, 2015 Suzanne Hanlon University of Connecticut."— Presentation transcript:
FINANCIAL AID Information for High School Students & Their Families Rockville High School January 6, 2015 Suzanne Hanlon University of Connecticut
Topics to Discuss Topics Cost of Attendance (COA) Expected Family Contribution (EFC) To Financial Need Types of Financial Aid Discuss Free Application for Federal Student Aid (FAFSA) Post – Application Processes
TuitionFees Room and Board (students living on campus) Direct Costs BooksTransportation Miscellaneous Indirect Costs What is Cost of Attendance (COA)?
What is the Expected Family Contribution (EFC)? The measure of a family’s financial strength as it relates towards subsidizing an education for one year Determines the types and amounts of aid that students are eligible to receive Calculated based on the information provided on the FAFSA
What is Financial Need? $ Cost of Attendance (COA) Expected Family Contribution (EFC) Expected Family Contribution (EFC) $ Financial Need $ Financial Need
“Need” Differs Based on Cost Cost of Attendance (variable) Expected Family Contributions (constant) $24,000 Need (variable) EFC$7,000 $33,000 $17,000 − = $40,000 $8,000 $1,000 EFC$7,000
Types of Financial Aid ScholarshipsGrantsLoansEmployment
Scholarships Local businesses and civic organizations State Department of Education School Counselor Places of Employment Internet http://fastweb.com http://fastap.org http://hfpgscholarships.org College or University Academic Athletic Departmental
How Do I Apply? Application Used primarily by private colleges www.collegeboard.com Institutional Applications Check school publications and websites FAFSA Required for Most Aid www.fafsa.ed.gov
Who is Eligible for Federal Aid ? Must be enrolled of accepted in eligible program of study Must be pursuing degree, certificate, or other recognized credential Must be a U.S citizen or eligible non-citizen May not have eligibility suspended or terminated due to drug-related conviction Must have a valid Social Security Number (SSN) Must continue to make Satisfactory Academic Progress (SAP) Must not be in default on a federal student loan Must not owe an overpayment of federal grant or loan funds. Males must be registered with Selective Service
Web site: www.pin.ed.gov Can request PIN now Sign FAFSA electronically May be used by students and parents throughout aid process, including subsequent school years FAFSAs and signing Federal Direct Loan MPNs 16 Obtain Financial Aid Personal Identification Numbers (PINs) for Student & Parent Tip: Get student AND parent PINs (1 each) now!
FAFSA: General Information Section Student Demographic Information Citizenship InformationDrug Conviction StatusType of Degree Grade Level for the 15-16 school year Parental Educational Background Dependency Status What is a Parent Definition Household Information
Tips for Student/Parent Income Information Section OK to estimate and correct later Tax Filing Status and type of return AGI not always the same as income from work on W-2 Income from work – include Self Employment Federal Income Tax – liability may not match W2
How the IRS Data Retrieval Works Data Retrieval Tool Imports Tax Information directly from IRS to FAFSA Data Retrieval is Available early February for the 2015-2016 processing cycle Student and parent choose whether or not to transfer data to the online FAFSA Data Retrieval is Not Available for all Filing Statuses Data Retrieval is available to use two to three weeks after parent or student tax returns have been processed by the IRS. if tax information is requested by the Financial Aid Office, can also obtain “IRS Tax Return Transcript” on IRS web site.
Additional Tips for Income Information Section Untaxed Income What to include? Include Annual IRA/pension contributions Workman’s Compensation Untaxed Disability Untaxed IRA Distributions/Pension/Interest Child Support Received Do Not Include Unemployment Compensation Untaxed Social Security Benefits SSI, IRA Rollovers Other Such Specified Income Scholarship Amounts Received
Tips for Asset/Investment Information Section Continued Cash, savings, checking account balances Net worth of rental/investment properties Educational benefit/savings accounts (529) Net worth of family business if employ over 100 employees Net worth of investment farm Include :
Additional Tips Federal School Codes needed for each college Can enter up to 10 school codes – Feds send data to each school listed Housing Plans On/Off Campus or Living with Parent For Dependent Students Both Parent and Student must sign with separate PINs each time the application is submitted.
31 What’s Next? Student submits completed FAFSA Federal processor determines Expected Family Contribution (EFC) Federal processor sends Student Aid Report (SAR), which includes your EFC Using your EFC, your prospective college determines your financial need Prospective college develops a financial aid package to try and meet need. Sends student an award package
Tips for Making Financial Aid Choices Never Decline Aid You Do Not Understand Is the aid guaranteed throughout the student’s academic career? Consider Federal Loans before Private Loans If needed, shop around for private loan lenders Consider the Long-Term Cost of Borrowing www.finaid.org – Great resourcewww.finaid.org
Federal Student Aid US Dept. of Education http://studentaid.ed.gov FAFSA Information http://studentaid.ed.gov/fafsa FAFSA4Caster: Online Eligibility Estimator http://studentaid.ed.gov/fafsa/estimate 1-800-4-FED-AID (1-800-433-3243) TTY: 1-800-730-8913 College Goal Sunday: www.collegegoalsundayct.org January 25, 2015 34 Resources