1. National Association of Student Financial Aid Administrators © NASFAA 2010 What You Need to Know about Financial Aid

2. Slide 2 © NASFAA 2010 Topics We Will Discuss Tonight Cost of attendance (COA) Expected Family Contribution (EFC) Free Application for Federal Student Aid (FAFSA) Categories, types, and sources of financial aid MD Higher Education Commission Programs

3. Slide 3 © NASFAA 2010 What is Cost of Attendance (COA) Direct costs: Tuition, fees, room and board Indirect costs: Books, transportation, miscellaneous expenses According to the College Board's Trends in College Pricing, the 2015-16 average cost of attendance is $24,061 for in state students and $38,544 for out of state students attending four-year public colleges and universities. Students attending private colleges can expect an average cost of attendance of $47,831.Varies widely from college to college: According to the College Board's Trends in College Pricing, the 2015-16 average cost of attendance is $24,061 for in state students and $38,544 for out of state students attending four-year public colleges and universities. Students attending private colleges can expect an average cost of attendance of $47,831.Trends in College PricingTrends in College Pricing

4. Slide 4 © NASFAA 2010 What is the Expected Family Contribution (EFC) Amount family can reasonably be expected to contribute Stays the same regardless of college Two components –Parent contribution –Student contribution Calculated using data submitted on the Free Application for Federal Student Aid (FAFSA)

5. Slide 5 © NASFAA 2010 How is the EFC Calculated? The EFC calculation is complex and takes into consideration many factors including: parent and student income, income tax liability, exemptions claimed, net asset value, household size, number in college, age of parents, etc.The EFC calculation is complex and takes into consideration many factors including: parent and student income, income tax liability, exemptions claimed, net asset value, household size, number in college, age of parents, etc. The 2016-17 EFC Formula Guide can be found at the following website: http://ifap.ed.gov/efcformulaguide

6. Slide 6 © NASFAA 2010 What is Financial Need? Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need Ex: COA = $25,000 EFC = $10,000 Financial Need = $15,000

7. Slide 7 © NASFAA 2010 FAFSA on the Web Website: www.fafsa.govwww.fafsa.gov 2016-17 FAFSA on the Web available on January 1, 2016 FAFSA on the Web Worksheet: Used as “pre-application” worksheet Questions follow order of FAFSA on the Web

8. Slide 8 © NASFAA 2010 FAFSA on the Web

9. Slide 9 © NASFAA 2010 FSA ID https://fsaid.ed.gov/npas/in dexhtmhttps://fsaid.ed.gov/npas/in dexhtm Sign FAFSA electronically Not required, but speeds processing May be used by students and parents throughout aid process, including subsequent school year Only the owner should create a FSA ID

10. Slide 10 © NASFAA 2010 FAFSA Filing File as early as possible after January 1 st for the upcoming academic year Your federal taxes DO NOT need to be completed to proceed with filing the FAFSA You may estimate your answers and indicate “will file” on the FAFSA

11. Slide 11 © NASFAA 2010 Verification Many students are selected for a process called verification Verification requires the institution to validate the information reported on the FAFSA You will be asked to provide IRS-confirmed tax information as well as W-2’s, and verification of household size

12. Slide 12 © NASFAA 2010 IRS Data Retrieval Families have the option of linking to the IRS to populate the financial information on the FAFSA Taxes must have been filed for a minimum of 2-3 weeks before the IRS tool can be utilized Timeline wise—it is better to file the FAFSA manually at first, then go back and re-populate through the IRS retrieval tool later

13. Slide 13 © NASFAA 2010 IRS Data Retrieval Tool While completing FOTW, applicant may submit real-time request to IRS for tax data IRS will authenticate taxpayer’s identity If match found, IRS sends real-time results to applicant in new browser window Applicant chooses whether or not to transfer data to FOTW

14. Slide 14 © NASFAA 2010 IRS Data Retrieval Tool Available February 7, 2016 for 2016–17 processing cycle Participation is voluntary Reduces documents requested by financial aid office

15. Slide 15 © NASFAA 2010 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

16. Slide 16 © NASFAA 2010 Financial Aid Flow Chart Student & Parents Complete FAFSA (Free Application for Federal Student Aid) Federal Processor Calculates EFC (Expected Family Contribution) FAO (Financial Aid Office) Determines aid based on EFC Send FAFSA to Federal Processor Processed FAFSA results are sent to the Financial Aid Office and to the student.

17. Slide 17 © NASFAA 2010 Types of Financial Aid Scholarships: money awarded on the basis of merit, skill or unique characteristicScholarships: money awarded on the basis of merit, skill or unique characteristic Grants: money awarded on the basis of financial need (usually)Grants: money awarded on the basis of financial need (usually) Loans: money borrowed by parents and students to help offset educational expensesLoans: money borrowed by parents and students to help offset educational expenses Employment: provides a paycheck or non-monetary compensation such as room or boardEmployment: provides a paycheck or non-monetary compensation such as room or board

18. Slide 18 © NASFAA 2010 Sources of Financial Aid Federal government States College/University Private sources Employers

19. Slide 19 © NASFAA 2010 Federal Government Largest source of financial aid FY2015 budget request for $143 billion to provide assistance to nearly 12.8 million students and familiesFY2015 budget request for $143 billion to provide assistance to nearly 12.8 million students and families Aid awarded primarily on the basis of financial need Must apply every year using the Free Application for Federal Student Aid (FAFSA)

20. Slide 20 © NASFAA 2010 Federal Aid Programs: Grants Federal Pell Grant: Award amount ranges from $626- $5,775 depending on EFC. Awards are phased out if EFC is greater than $5,199 (phase out EFC is lower for part- time attendance). Teacher Education Assistance for College and Higher Education Grant (TEACH Grant): Award amount ranges from $1,000-$4,000 per year. Award is specific to students majoring in high demand education specialties including math, science and foreign language. Requires a commitment to teach in a Title 1 school.

21. Slide 21 © NASFAA 2010 Federal Aid Programs: Campus-Based Federal Supplemental Educational Opportunity Grant (SEOG) :Federal Supplemental Educational Opportunity Grant (SEOG) : Award amounts range from $100 -$4,000. First priority given to Federal Pell Grant recipients with exceptional financial need Federal Perkins Loan: Award amounts determined by the institution, maximum award is $5,500/year. Interest is fixed at 5%, 9 month deferment before payments are required. Federal Work-Study:Federal Work-Study: Award amount determined by institution. Based on financial need.

22. Slide 22 © NASFAA 2010 Federal Aid Programs: Loans Stafford Loans: Fixed interest rate for 2015-16 is 4.29% Subsidized (no interest while in school) Unsubsidized (accrues interest while in school) Freshman:$3,500 Sophomore: $4,500 Junior/Senior:$5,500 Additional Unsubsidized Loan (4.29%)Additional Unsubsidized Loan (4.29%) All classifications: $2,000 PLUS Loans (up to COA) (6.84%)PLUS Loans (up to COA) (6.84%) Parent PLUS Loans are subject to a credit approval process and can be deferred while the student is enrolled.

23. Slide 23 © NASFAA 2010 MD Higher Education Commission: $112.8 Million for State Financial Aid/Grants for FY16 www.mhec.state.md.us

24. Slide 24 © NASFAA 2010 MD State Financial Assistance –Need Based Grants Guaranteed Access Grant Educational Assistance Grant –Legislative Scholarships Delegate & Senatorial –Career/Occupational- Based Grants & Scholarships Workforce Shortage Grants –Unique Populations

25. Slide 25 © NASFAA 2010 MD CAPS: https://mdcaps.mhec.state.md.us/MDCAPS/login.aspx https://mdcaps.mhec.state.md.us/MDCAPS/login.aspx

26. Slide 26 © NASFAA 2010 Questions & Answers Elizabeth Zimmerman, Director of Financial Aid Michael Elliott, Financial Aid Coordinator Salisbury University Financial Aid Office 1101 Camden Ave., Salisbury, MD 21801 Phone: 410-543-6165 Email: Finaid@Salisbury.eduFinaid@Salisbury.edu Website: http://www.salisbury.edu/admissions/finaid/http://www.salisbury.edu/admissions/finaid/