14-15 FA Night 1

2014-15 What you need to know

about Financial Aid

1/4/2014

Free Application for Federal Student Aid (FAFSA)

IRS Data Retrieval Tool Special Circumstances Cost of Attendance and EFC Categories, types, and sources of financial

aid

Topics

Collects family’s personal and financial information used to calculate student’s EFC Amount of money a student and his or her family may reasonably

be expected to contribute towards the cost of the student’s education for an academic year

Completed each year after January 1st

However, most W-2s will not be available until the end of January

Use IRS Data Retrieval to download income information from your 2013 Federal Tax Return◦ IRS will not start accepting and processing the Federal Tax Forms

until sometime between January 28 and February 4, 2014.◦ From what we hear IRS Data Retrieval will be available starting

February 2, 2014◦ If the student and parent file electronically, IRS Data Retrieval

would be available 2 weeks after they filed◦ If the student and parent file by paper, IRS Data Retrieval would

be available 6-8 weeks after they filed

FAFSA Deadlines

PIN Registration Website:

www.pin.ed.gov

Sign FAFSA electronically

Not required, but speeds processing

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

Student Login

Chose the 2014/15 Year

Definition of Marriage:

For both students and parents-marriage now includes a same sex couple who are married under the authority of a state (or foreign country) that permits same-sex marriage, even if the state (or foreign country) in which they now live does not recognize same-sex marriage.

FAFSA Modifications (cont’d)

Never Married Unmarried and both parents living together

Biological Parents or Same Sex Parents (regardless of state authority related to marriage) should use this response if appropriate

Married or Remarried Divorced or Separated Widowed

Marital Status

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

Who is 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

Who Is NOT a Parent?

While completing FAFSA, student and parent may submit real-time request to IRS for tax data

IRS will authenticate taxpayer’s identityNeed to remember the exact address and spelling of names

on the Federal Tax Return

If match found, IRS sends real-time results to applicant in new browser window

Applicant chooses whether or not to transfer data to FAFSA

Available early February 2014 for 2014–15 processing cycle

Participation is voluntary Reduces documents requested by financial aid office

IRS Data Retrieval Tool

A student or parent who cannot remember the address used on their 2013 Federal Tax Return.

Marital Status-Unmarried and both parents living together A married student or married parents who did not file

joint returns but instead filed separate tax returns A married student or married parent who files as Head of

Household is not eligible to use the IRS Data Retrieval tool◦ This would mean they filed separate tax return◦ However, a single student or single parent who files as Head of

Household is eligible to use the IRS Data Retrieval tool A student or parent(s) who had a change in marital status

after December 31, 2013 The student or parent(s) filed and amended tax return

Cannot Use IRS Data Retrieval

Students and parent can start completing their FAFSA In order to use the IRS Data Retrieval Tool the Federal

Tax Return has to be completed and processed by the IRS◦ However, most W-2s will not be available until the end of

January◦ IRS will not start processing the Federal Tax Forms until

sometime between January 28 and February 4, 2014.◦ If the student and parent file electronically, IRS Data Retrieval

would be available 2 weeks after they filed◦ If the student and parent file by paper, IRS Data Retrieval

would be available 6-8 weeks after they filed From what we hear IRS Data Retrieval will be available

starting February 2, 2014

IRS Data Retrieval Tool Available

Both Student and Parent Sign

Confirmation Number Data Release Number (DRN) EFC estimate Pell Grant and Direct Loan estimates Option for parents to transfer parent’s info

to another application for another child Option for some states to apply for State

Grant

Confirmation Page

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

Paper SAR sent if no student e-mail provided Student with FSA PIN can view SAR online at

www.fafsa.gov Students should review SAR data for accuracy

and correct any errors Required to update estimated tax information

when actual figures become available

FAFSA Processing Results

Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA is submitted

College reviews ISIR◦ May request additional documentation:

Verification proof of homelessness or ward of the court status proof that a sibling is enrolled in college

◦ Will generally not send you an award letter unless an Admissions Application has been submitted

FAFSA Processing Results (cont’d)

Students should only correct information that was reported incorrectly when he or she completed the FAFSA

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

Corrections required if “estimated income” used for initial filing

Making Corrections

Institutions will call it either Special Circumstances or Professional Judgment

Families cannot report special circumstances on the FAFSA

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

Professional judgment exercised by the financial aid administrator

Special Circumstances: Basics

Dependency OverrideAbuse at home Abandonment by parents

Parents Refuse to Provide Information◦ Student only eligible for Unsubsidized Loan

Income Reduction Non-Recurring Income Unusually High Day Care Expenses Unusually High Medical or Dental Expenses

Special Circumstances

Each Institution has their own process Institutional Forms Documentation from third party:

Teacher Social worker Member of clergy Court Law enforcement

Documentation will be Required

www.fafsa.gov

Completing the FAFSA available at: http://studentaid.ed.gov/fafsa

2014/15 FAFSA on the Web Worksheet: http://studentaid.ed.gov/sites/default/files/2014-15-fafsa-worksheet.pdf

FAFSA Completion Resources

Direct Cost + Indirect Cost = COA

Direct costs TuitionFeesBooksRoom and Board if On Campus

Indirect costs Room and Board if Off Campus or With ParentTransportationPersonal Expenses

COA varies widely from college to college

Cost of Attendance (COA)

www.fafsa4caster.ed.gov

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

Expected Family Contribution (EFC)

Cost of Attendance (COA)

– Expected Family Contribution

(EFC)

= Financial Need

Financial Need

Mix of grants and self-help aid Future award packages

Reviewing and Comparing Award Letters Direct Costs School

ASchool B

School C

Tuition $6,093 $10,368 $11,772

Fees $1,524 $784.74 $410

Books $1,100 $2,200 $1,350

Room (On Campus) $3,060 $4,027 N/A

Meal Plan $2,885 $4,244 N/A

- Grants $5,645 $5,645 $5,645

- Scholarships $1,500 $4,500 $1,500

Net Price (Out of Pocket or Loans?) $7,517 $11,479 $6,387

Types of Aid Gift Aid

Scholarships

Money that does not have to be paid back

Awarded on basis of merit, skill, or unique

characteristic

Grants

Money that does not have to be paid back

Usually awarded on the basis of financial need

Self-Help Aid

Federal Work Study

LoansMoney students and parents borrow to help

pay college expenses

Repayment usually begins after education is finished

Only borrow what is really needed

Look at loans as an investment in the future

Types of Aid (cont’d)

The Federal Pell Grant Program provides need-based grants to low-income undergraduate students.

Grant amounts depend on the student’s:

Expected Family Contribution (EFC)

Enrollment status (full or part-time)

Attendance status (full academic year or less)

Pell Grant maximum award per academic year:

$5,645 (2013-2014)

* Maximum award may be subject to change pending legislative budgetary adjustments

Federal Pell Grant

The Federal Supplemental Educational Opportunity Grant (FSEOG) Program provides need-based grants to low-income undergraduate students (campus-based aid).

Grant recipients must be: Pell Grant-eligible Current award amounts are from $100 - $4,000 Not all colleges participate in the FSEOG

program and funds depend on availability at the college

FSEOG

The Teacher Education Assistance for College and Higher Education Grant Program (TEACH) provides assistance to students who intend to teach in a public or private elementary or secondary school that serves students from low-income families.

Grant recipients must be: Enrolled in an institution that participates in the TEACH

Grant Program Enrolled in coursework that is necessary to being a

career in teaching Able to demonstrate certain academic achievements

TEACH Grant

The Teach Grant:

Is not based on financial need Is available to both undergraduate and graduate students Provides the following maximum award $4,000 (2013-14)

TEACH Grant recipients must sign an ‘Agreement to Serve’ which states that the student will:

Teach at least four years in a public or private elementary or secondary school

Teach full-time in a high-need field Teach in a school that serves students from low-income

families If the teaching obligation is not completed, the entire

TEACH Grant must be repaid as a Direct Unsubsidized Stafford Loan

TEACH Grant (cont’d)

Students whose parent or guardian died as a result of military service in Iraq or Afghanistan after September 11, 2001, may be eligible for additional Title IV aid.

Additional Student Eligibility Requirements:

Less than 24 years old Enrolled in college at least part-time at the time

of the parent’s or guardian’s death

Iraq/Afghanistan Service Grant

Provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses (campus-based)

Eligible employers (On-campus or off-campus employment) Schools Federal, state or local public agency Private nonprofit organization Community service activities

Students are paid at least federal minimum wage

Not all colleges participate in the Federal Work-study program and funding depends on availability at the college

Federal Work-Study

Your college is the lender

Payment is owed to the college that made the loan

Interest charged on this loan is 5% Funds depend on financial need and availability at the

college

Undergraduate students – up to $5,500 a year

Graduate and professional degree students – up to

$8,000 Not all colleges participate in the Federal Perkins Loan

program

Federal Perkins Loan

Subsidized Loans Government PAYS the borrowers accrued

interest while you are attending college and other eligible periods

Based on Financial Need Fee 1.072% on each loanInterest currently 3.86%Undergraduate students Amount: $3,500-$5,500 If do not complete degree within 150% of the

published length of your lose interest subsidy benefits on all Direct Subsidized loans and only eligible for Direct Unsubsidized loans

Direct Stafford Loans (for undergraduate)

Unsubsidized Loans The borrowers is responsible for the interest

for the life of the loan NOT Based on Financial Need Fee 1.072% on each loanInterest currently 3.86%Undergraduate and graduate students

qualify Amount: $5,500-$12,500

Direct Stafford Loans (for undergraduate) (cont’d)

PLUS loans originate through the William D. Ford Federal Direct Loan Program (Direct Loans).

Loan characteristics: For parents of dependent students; parent is the

borrower and loan cannot be transferred into student’s name

Borrowers may receive loan amounts up to, but not exceeding the college’s ‘Cost of Attendance’

Borrower is responsible for all the interest Borrower must not have a negative credit history

Direct PLUS Loan (parent)

(July 1, 2013 to June 30, 2014) *

Fee +Interest Rate Repayment Additional

Info

Federal Perkins No Fee5% Fixed

9 Months after school

Direct Stafford Loan

1.072% Fee +3.86% Fixed*

6 months after school

Subsidized: no interest charged while in school Unsubsidized: interest accrues while in school

Federal Parent PLUS loan

4.288% +6.41% Fixed*

May be deferred until 6 months student drop ½ time or 60 days after loan is fully disbursed

* Fee & Interest Rates subject to change July 1 each award year

Federal Loan Programs

http://sdos.sdbor.edu/

Limited number of scholarships available Being designated as a Regents Scholar does not

automatically qualify the student for the South Dakota Opportunity Scholarship (SDOS).

Amount-$1,000 each year 1st – 3rd, $2,000 4th year Reminder – To establish initial eligibility, the student must

complete an application form (now available in electronic format) and submit this to the college he or she will attend.

Due Date (complete application package): Recommended:

Fall Term-June 1st Spring Term-November 1st

Actual Deadline: Fall Term-September 1st Spring Term-January 15st

South Dakota Opportunity Scholarship

1. Be a resident of South Dakota at time of high school graduation.

2. Have an ACT composite score of 24 or higher before the beginning of post-secondary education. If using a SAT score, the sum of the verbal and mathematics scores on the SAT must be at least 1090.

3. Complete high school course requirements with no final grade below a "C" (2.0 on a 4.0 scale) and a cumulative high school GPA of 3.0 on a 4.0 scale (grade of "B") prior to graduation (Note: One unit of high school credit equals 1 year of instruction).

4. If ACT composite score is at least 28 and meets the ACT college readiness benchmarks scores equaling or exceeding 18 for English, 21 for Reading, 22 for Math, and 24 for Science, the curriculum requirements specified in section 3 above are not required.

5. Attend a university, college, or technical school accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools and that provides instruction from a campus located in South Dakota.

6. Enter into the program1. within 5 years of high school graduation2. within 1 year of the student's release from active duty military service (if that

release is within 5 years of the date of the student's high school graduation)3. transfer from a regionally accredited university, college, or technical school

located outside of South Dakota may do so within two years following high school graduation and be eligible to receive partial award.

South Dakota Opportunity Scholarship (cont’d)

http://www.state.sd.us/dakotacorps/default.html

Limited number of scholarships availableGraduate from an accredited South Dakota high school

with a Grade Point Average (GPA of) 2.8 or greater on a 4.0 scale. 

Have a composite ACT score of 24 or greater (or the SAT equivalent).

Apply for the Dakota Corps Scholarship for a school period that begins within one year of high school graduation, or within one year of release from active duty of an active component of the armed forces. Deadline: applications must be postmarked by February 1st

Amount: Amount equal to tuition and fees for 16 undergraduate credits hours (per fall and spring semester) at a SD public four-year college or actual tuition and fees for same time frame and credits whichever is less

Dakota Corp Scholarship

Attend a participating South Dakota college as an undergraduate student in a program that will prepare the student to work in a critical need occupation. Note: not all South Dakota colleges participate. See website for participating colleges.

Be a U.S. citizen or U.S. national. Agree, in writing, to stay in South Dakota and work in a

critical need occupation after graduation for as many years as the scholarship was received, plus one yearTeacher (HS Math, Science, Career and Technical Education)Teacher (Elementary or Secondary Special Education)Accountant/AuditorEngineer (Except Mining) Information TechnologyRegistered Nurse

Dakota Corp Scholarship (cont’d)

http://www.sdbor.edu/students/JumpStart.htm

◦ Resident of South Dakota◦ Student graduates from High School within 3 years or less from

a public high school in South Dakota ◦ No student who enrolls in a high school for all or any part of a

fourth year is eligible for the Jump Start Scholarship program. ◦ For 2013/14 eligible for $1866.45 for their first year of post

secondary enrollment, distributed equally amount the terms of the year

◦ Within one year of graduating from high school, excluding any time served on active duty in the armed forces of the United States, enroll in a college, university, or technical school accredited by the North Central Association of Colleges and Schools that provides instruction from a campus located in South Dakota

◦ Deadline September 1st

South Dakota Jump Start Scholarship

Complete the Free Application for Federal Student Aid

Institutionally awarded Institutions may have their own application Awarded by institution to those students

who have the highest amount of unmet need on the campus

$500-$2000 per student Student must be a South Dakota resident Maintain Satisfactory Academic Progress

State: South Dakota Need Based Grant Program

Foundation Private nonprofit foundation Created when Education Assistance Corporation

affiliated with Great Lakes Higher Ed Corporation http://www.sdeducationaccess.org/

Mission 

To expand access to postsecondary education

Programs 

Grants to Postsecondary Students College Access Advising

South Dakota Education Access Foundation (SDEAF)

Corporation for National and Community

Service

U.S. Department of Veterans Affairs

Reserve Officers Training Corps (ROTC)

Bureau of Indian Affairs (BIA) Grants

Vocational rehabilitation benefits

U.S. Department of Health and Human Services

(HHS)

Other Federal Aid Programs

Foundations, businesses, charitable organizations, civic organizations, churches, etc.

Deadlines and application procedures vary widely

Begin researching private aid sources early

Your College may also have scholarships available

Private Sources

Research what is available in community

To what organizations and churches do student and family belong?

Application process usually occurs during spring of senior year

Small scholarships add up!

Civic Organizations and Churches

Companies may have scholarships available to the children of employees

Companies may have educational benefits for their employees

Employer-sponsored tuition plans

Employers

Other family resources

Home equity loans

Private/alternative loans

Tuition savings plans (529 plans)

Other Sources of Aid

Always use free searches!

Other resources available

Guidelines on when and how to apply

Applications, essays, videos, etc.

DO NOT PAY FOR A SCHOLARSHIP SEARCH

Typical On-line Scholarship Search

www.fafsa4caster.ed.gov

http

://studentaid.gov/types/grants-scholarships/finding-scholarships

http://www.careerinfonet.org/scholarshipsearch/Scholars

hipCategory.asp?searchtype=category&nodeid=22 www.fastweb.com

http://www.collegescholarships.org/

http://www.scholarships.com/

http

://www.aie.org/paying-for-college/Financial-aid/How-to-Find-More-Scho

larships.cfm

Financial Aid Web-based Resources (cont’d)