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Counselor resources on NT4CM “Materials and Resources” page:

www.fsa4counselors.ed.gov/nt4cm

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Financial Aid Philosophy

• Parents and students have the primary responsibility for meeting college costs

• The distribution of financial aid resources should be based on the family’s ability to pay—not willingness to pay

• The assessment of a family’s ability to pay should be independent of the amount of financial aid available and cost of attending college

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Money from a source other than the family to assist with the cost of attending college•Scholarships•Grants•Loans•Employment•Tuition Exemptions

What is Financial Aid?

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General Eligibility Requirements

• Be enrolled as a regular student in a degree or certificate program

• Not be simultaneously enrolled in an elementary or secondary school while enrolled in postsecondary school

• Provide a valid social security number

• Be registered with Selective Service

• Maintain satisfactory academic progress

• US citizen, national, permanent resident or eligible non-citizen

(continued)

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General Eligibility Requirements (continued)

• Have a high school diploma or its “equivalent”, or home school credential

* Recognized “equivalent” includes:

- GED certificate

- Certificate recognized by the state as an equivalent to a diploma

- Academic transcript showing successful completion of at least a 2-year program

fully acceptable toward a bachelor’s degree

- Documentation that the student excelled in high school (ie; ‘Doogie Howser syndrome’)

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Immigrant students: HB 1403 (SB 1528)

• This law permits some non-citizens to be classified as Texas residents for financial aid and admission purposes.

• May receive• In-state tuition• Texas Financial Aid (some programs)

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Undocumented Students HB 1403/SB 1528

• Eligibility Criteria• Live in Texas the 36 months leading up to high school graduation

or the completion of a GED; and• Lived in Texas the 12 months prior to enrollment; and• If they are not currently US citizens or Permanent Residents,

completed an affidavit indicating their intent to apply for Permanent Resident status as soon as they are eligible to do so.

• Must register with selective service (if required)

• Application • Submit a paper FAFSA or Texas Application for State Financial

Aid (TASFA) and submit to the financial aid office at the institution for processing

• www.collegefortexans.com

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Cost of Attendance (COA)

• Direct costs

• Indirect costs

• COA varies widely from college to college

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MSU’s Cost of Attendance2012-13

LIVING OFF-CAMPUS OR IN DORM:

Tuition & Fees $7,632

Room & Board $7,088

Books & Supplies $1,200

Transportation $1,872

Personal & Misc. $1,598

TOTAL $19,390

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Cost of AttendanceEstimates

• Two-Year College $13,294

• Private University $51,610

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Expected Family Contribution (EFC)

• An index used to calculate eligibility for aid

• Stays the same regardless of college

• Two components

– Parent contribution

– Student contribution

• Calculated using FAFSA data and a formula specified in law

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EFC Formula

Must be used to determine a student’s eligibility for federal student aid.

Determined by FAFSA information

Untaxed Income, Allowances and Assets are used in EFC formula.

*refer to the Handbook for specific details.

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Financial Need

Cost of Attendance (COA)

– Expected Family Contribution (EFC)

= Financial Need

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Sources of Aid

• Federal government

• States

• Colleges

• Private sources

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Federal Grants

(Based on Expected Family Contribution(EFC))

Pell Grant = 2012-13 ranges from $602 - $5550 per year for a full-time student. Pell amounts will be reduced for less-than-full-time

students.

SEOG = Schools receive limited amount of money; funds exhausted early. Must be Pell-eligible to receive SEOG funds.

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TEACH (Teacher Education Assistance for College and Higher Education Grant)– Max $4000 per year for initial award; max

$8000 if 2nd award given within same award year.

– Must be a sophomore, junior, senior or graduate student, seeking a degree in a high need field (Math, Science, Foreign Language, Bilingual or Special Education, Reading Specialist)

– Must be enrolled at least half-time– Must have a 3.25 cumulative GPA– Must commit to teach 4 years, full-time, within

8 years of degree completion. Failure to meet this obligation reverts the grant to a Federal Direct Unsubsidized Loan

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Federal/State Workstudy

Need based work programTypically pays minimum wage, but wage

varies at college/universityStudent allowed to work up to 20hrs/weekTypically on-campus jobsCan exclude this income on following year’s

financial aid application

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State GrantsTEXAS Grant (Toward Excellence, Access & Success)

Need-Based Award

Texas Resident

Completed the Recommended or Distinguished Achievement Program in high school

Have an EFC of 4000 or less

Enroll at least three-quarter-time in an undergraduate or certificate program within 16 months of HS graduation

Not been convicted of a felony or crime involving a controlled substance

Availability of Funds

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TEXAS Grant (continued) • In addition to the basic eligibility requirements, students must meet

requirements in at least 2 of the following 4 areas for priority consideration:

* Advanced Academic Program – 12 hours of college credit (dual credit or AP credit), complete the Distinguished Achievement Program (DAP), or complete the International Baccalaureate Program (IB).

* TSI Readiness – Meet the TEXAS Success Initiatives (TSI) assessment thresholds or qualify for an exemption.

* Class Standing – Graduate in the top 1/3 of the HS graduating class or have a B average.

* Advanced Math – Complete at least one math course beyond Algebra II.

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Encourages students who graduate in the top 10% of high school class to attend Texas public universities

Texas ResidentMust enroll full-timeComplete Recommended or Distinguished

Achievement Program in high school Award is $2000 per year (Fall award ONLY)Must submit FAFSA or TASFA and have a valid

SAR on file at the university by March 15, 2013(FAFSA or TASFA submitted after March 15 will be awarded on a first-come, first-served basis until available funds have been spent)

Top 10% Scholarship (sponsored by Coordinating Board)

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MSU’s Mustangs Guarantee Program Beginning freshman student OR new transfer student Texas Resident Must submit FAFSA and have a completed financial aid

file on/before May 31(including all verification documents) Pell Grant eligible Family’s combined AGI is $50,000 or less Covers remaining balance of tuition & mandatory fees

(for 15 credit hours or more for Fall and/or Spring semesters only) that are not paid by other grants, scholarships, exemptions, benefits or waivers the student may have

Enroll and maintain a minimum of 15 credit hours through 12th class day

Available up to 4 academic years (excluding summer)

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Federal Direct Student Loans

• Money students and/or parents borrow to help pay educational expenses

• Repayment usually begins after education is finished

• Student loans are the top source of financial aid

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Direct LoansSubsidized Unsubsidized

Need-based Not Need-Based

Interest: Fixed – 6.8%Student responsible for all interest that accrues

Repayment begins 6 months after graduation or dropping below half-time enrollment

For Direct loans, the “lender” is the Department of Education

Interest:Fixed – 3.4% for loans disbursed after July 1, 2012Government pays while enrolled at least half time

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Annual Loan Limits

$3,500 Freshman $4,500 Sophomore $5,500 Junior and Senior All students can request an

additional $2000 Unsubsidized Stafford loan annually

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Federal DirectParent (PLUS) Loans

Loan in Parent’s Name/SSN Based on parent’s credit-worthiness Current Fixed Interest Rate = 7.9% Payments begin 60 days after 2nd

disbursementThe parent, upon his or her request, can defer payments on a PLUS loan if the student is enrolled at least half time.

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STATE & ALTERNATIVE/PRIVATE Student Loans

• STATE• Texas B-On-Time Loan• College Access Loan

• ALTERNATIVE/PRIVATE

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Texas B-On-Time (BOT) LoanA STATE loan which provides eligible Texas students

with no-interest loans:

• Need established by filing FAFSA• Texas Resident• Completed the Recommended or Distinguished

Achievement Program in high school• Enroll full-time• Availability of funds is determined by the Texas

Higher Education Coordinating Board• Eligible for annual renewal, pending availability of

funds• Loan forgiveness provisions are available

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BOT Loan Forgiveness Requirements:• If student graduates “on time” with a 3.0 GPA or

higher, the B-On-Time loan will be forgiven

• To Graduate “on-time” a student must

• Finish a 4 year degree in 4 years

• Finish a 5 year degree in 5 years

• Finish a 2 year degree in 2 years, OR

• Finish a degree with no more than 6 semester hours beyond

• The BOT loan has a 15-year repayment period or a minimum monthly payment of $75.00 and a 0% interest rate.

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College Access Loan (CAL)

A STATE loan available to Texas students

• NOT Need-Based Loan but FAFSA must be filed

• Texas Resident

• Enroll at least half-time

• Student must have a credit-worthy co-signor

• Fixed interest rate is determined by the Texas Higher Education Coordinating Board; currently, 5.25%

• Availability of funds is determined by the Texas Higher Education Coordinating Board

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Alternative/ Private Loan

• Private consumer loans• Provided without consideration of financial

need• Usually a last option after other more

economical sources are exhausted• Credit checks are required• Variable interest rate – usually VERY HIGH!

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Other Federal Aid Programs• U.S. Department of Veterans Affairs

• Bureau of Indian Affairs (BIA) Grants

• Vocational rehabilitation benefits

• U.S. Department of Health and Human Services (HHS)

* see Handbook for a complete list of programs.

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Tuition Exemptions

* An exemption allows an individual to enroll in a Texas public institution while paying a reduced amount of tuition and fees – example Valedictorian tuition exemption, Foster Care exemption, etc.

* The State of Texas has authorized more than 30 exemption programs

* Exemptions have different eligibility requirements

* For a complete list & eligibility requirements, see www.collegefortexans.com

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Applying for Applying for Federal Financial AidFederal Financial Aid

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Resources To Help Your Students Complete the FAFSA

• www.fafsa.gov

• Completing the FAFSA available at: www.studentaid.ed.gov/completefafsa

• Do You Need Money for College? available at www.studentaid.ed.gov/resources

• College Goal Sunday: www.collegegoalsundayusa.org

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Free Application for Federal Student Aid (FAFSA)

• The application for federal aid

• A standard form that collects demographic and financial information about the student and family

• Information used to calculate the Expected Family Contribution or EFC

• Students must complete FAFSA for each school year

• Colleges may set FAFSA filing deadlines

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FAFSA on the Web

• Website: www.fafsa.gov

• 2013‒14 FAFSA on the Web available on

January 1, 2013

• FAFSA on the Web Worksheet:

– Used as optional “pre-application” checklist

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FAFSA on the Web

Good reasons to file electronically:

• Built-in edits to help prevent costly errors

• Simplification: Skip-logic allows student and/or parent to skip unnecessary questions

• Immediate submission of original application and any necessary corrections

• More detailed instructions than space allows on the paper FAFSA

• Ability to check application status on-line

• Simplified application process in subsequent years

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Modifications for 2013–14

• Minimal question changes

• One simplified log-in

• Expanded offering of IRS Data Retrieval

• Families expected to use IRS Data Retrieval if available at time of filing or they will instructed to make corrections once they have filed tax returns.

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Modified Question

• Name and location of high school from which student received diploma will have a “smarter” search feature

• FOTW will ask any student who answered high school question for 2012–13 the question again and advised to use “smarter” search feature

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Deleted Questions

No questions deleted for 2013–14

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IRS Data Retrieval

• Students completing a 2013–14 FOTW will be able to utilize IRS Data Retrieval beginning February 1, 2013

• Data available in English and Spanish

• IRS data available within several days for electronic filers or several weeks for paper tax filers

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IRS Data Retrieval

• FOTW includes logic to determine if applicant is eligible to use IRS Data Retrieval

• Applicant’s response will take him or her to the IRS system or provide a message that the applicant should use own financial figures to complete FOTW

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IMPORTANT INFO!

• Student/parent will transfer 2012 income tax return onto the 2013-14 FAFSA while completing the application.

• Students NOT using the IRS DRT will most likely be selected for ‘verification’ and, if selected, student/parent MUST submit an IRS TAX RETURN TRANSCRIPT to the MSU Financial Aid Office.

• Copies of signed tax returns will no longer be accepted.

• To request an IRS Tax Return Transcript, student/parent will be required to provide the following information:

* Social Security Number or IRS individual taxpayer identification number)

*Date of birth, Street Address and Zip Code

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PIN Registration

• Website: www.pin.ed.gov

• Not required, but speeds processing

• May be used by students and parents throughout aid process, including subsequent school years

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FAFSA on the Web Worksheet

• Very similar to last year’s worksheet

• Includes questions that may be applicable to all students

• Skip logic means all students will not see same number and sets of questions on FOTW

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FOTW Worksheet

Section 1 collects general information about the student

• Social Security Number

• Citizenship status

• Drug convictions

• Selective Service registration

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FOTW Worksheet

Section 2 collects information to determine the student’s dependency status

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FOTW Worksheet

Section 3 collects parental information

•Tax, income, and other financial information

•Dislocated worker status

•Assets

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FOTW Worksheet

Section 4 collects student information

•Tax, income, and other financial information

•Dislocated worker status

•Assets

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FOTW Worksheet

Additional Information Requested

• College and housing information

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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

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FAFSA Processing Results

• CPS notifies student of FAFSA processing results by:

– E-mail notification containing a direct link to student’s electronic SAR if student’s e-mail was provided on paper or electronic FAFSA

• Student with FSA PIN can view SAR on line at www.fafsa.gov

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FAFSA Processing Results

CPS notifies student of FAFSA processing results by:

- Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s e-mail address was NOT provided

- SAR Acknowledgement if filed electronically via FAFSA on the Web and student’s e-mail address was not provided

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Making Corrections

If necessary, corrections to FAFSA data may be made by:

•Using FAFSA on the Web (www.fafsa.gov) if student has a FSA PIN

•Updating and mailing paper SAR

•Submitting documentation to school’s financial aid office

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Student Dependency StatusStudent Dependency Status

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What Makes a Student Independent?

• Born before 1/1/90 (for 2013–14 year)

• Married

• Graduate or professional student

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What Makes a Student Independent?

• Active duty military for purposes other than training

• Veteran

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What Makes a Student Independent?

• Children

• Dependents other than children or spouse

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What Makes a Student Independent?

• Orphan, foster care, dependent/ward of the court

• Emancipated minor

• Legal guardianship

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What Makes a Student Independent?

• Homeless or at risk of becoming homeless

– As determined by agency specified in FAFSA instructions

– Or by financial aid administrator

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Professional Judgment (PJ):

“the authority of the financial aid administrator, on the basis of adequate documentation, to make adjustments on a case-by-case basis to the cost of attendance or the values of the data items required to calculate the expected student or parent contribution (or both) to allow for treatment of an individual eligible applicant with special circumstances.”

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The Basics

• Families cannot report special circumstances on the FAFSA

• Professional judgment generally exercised after the family files the FAFSA and completes verification (if required)

• Professional judgment exercised by the financial aid administrator

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The Basics

• Varies from college to college

• Documentation

• Authority of the financial aid administrator

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Dependency Overrides

• Financial Aid Administrators have authority to change the filing status from dependent independent

• Student must present documentation of situation

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Dependency Overrides

• Special circumstances:– Abuse at home

– Abandonment by parents

• NOT special circumstances:– Parents don’t claim student on taxes

– Student does not live with parents and supports self

– Parents don’t want to help pay for college

– Parents refuse to provide information for FAFSA

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Dependency Overrides

Documentation from third party:

• Teacher

• Social worker

• Member of clergy

• Court

• Law enforcement

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Who Qualifies Who Qualifies as a Parent for a as a Parent for a

Dependent Student?Dependent Student?

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Who Is a Parent?

• Biological parents

• Adoptive parents

• Stepparents, if they are married to the student’s biological or adoptive parent and the student is included in their household size

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Who Is NOT a Parent?

• Foster parents• Legal guardians who have not adopted the

student• Relatives who have not adopted the

student• Stepparents who have not adopted the

student and who would be the only person providing parental information

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After the FAFSAAfter the FAFSA

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Reviewing and Comparing Award Letters

• Out of pocket expenses after financial aid

• Mix of grants and self-help aid

• Future award packages

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Award Notification Process

• Award notifications usually contain• Types and amounts of aid offered• How and when aid will be disbursed• Terms and conditions of offer

• Students should• Accept or decline (if required)• Sign and return (if required)• Complete student loan process (if necessary)• Pay special attention to DEADLINE DATES!

Slide 76

Evaluating Aid Packages*Biggest is not always best –compare to cost of attendance

for each school

*Renewable vs non-renewable scholarships

*Terms and conditions of offered loan(s)

*Balance work with academic responsibilities

*Types of aid offered• Grants• Loans• Work-Study

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Establishing a Relationship with the Financial Aid Office

• Importance

• Questions to ask

• Benefits

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Searching for ScholarshipsSearching for Scholarships

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• Federal

• State

• Institutional

• Private

Scholarship Sources

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Private Sources

• Foundations

• Community organizations and civic groups

• Religious or ethnicity-based organizations

• Organizations related to student’s field

• Local businesses and employers

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Merit Based Scholarship Search Engines

• Always use free searches

• www.finaid.org

• www.collegeboard.com

• www.fastweb.com

• www.gocollege.com

• www.FederalStudentAid.ed.gov

• Other favorites??

• Your own scholarship file or database – how

do you make it available to students?

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Help Your Students Avoid Help Your Students Avoid Financial Aid FraudFinancial Aid Fraud

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Fraud Warning Signs

• Students unaware of free resources

• Students pay for help or “guaranteed” aid before seeking advice from knowledgeable adult

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Common Fraud Complaints

• Paying for guaranteed aid and not receiving anything

• Paying for help to find aid

• Paying to file the FAFSA

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U.S. Department of Education Website

• Looking for Student Aid

• Student publications page

• Office of the Inspector General hotline

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Federal Trade Commission Site

• Handouts

• Lists of individuals and companies found guilty of fraud

• Complaint form

• Publications to order

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Thank You

We know how important you are to students and their families, and we thank you for everything you do!

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Evaluations

• Please take time to complete an evaluation

• We will use your comments and suggestions to improve future training and outreach efforts

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Final Items

• Certificate of completion

• Continuing Education Report Log Form