2009Annual Statewide Financial Aid Conference for High School Counselors

November 4, 2009

Conference Agenda

• PowerPoint presentation

• Break

• Financial aid administrator panel Q & A session

2

THANKS TO SPONSORS!!!

Great Lakes Higher Education Guaranty Corporation

• Minnesota Association of Financial Aid Administrators

(MAFAA)

3

College Access Champion Award • Great Lakes is offering College

Access Champion Awards of $5,000 to repay federal student loan debt

• For teachers, counselors, staff, administrators in Title I eligible high schools– Employed at school for 3 or more

years• Requires application, essay and

letter of reference• See application/brochure in right

side of packet

4

Presentation Overview• Application Process• FAFSA Changes• Parental Information• Post-application process• Sources of financial aid• Additional resources for counselors

5

Application Process

6

Applying for 2010-2011

• Submit FAFSA after Jan 1, 2010– Final 2010-2011 FAFSA deadline is June 30, 2011

– FAFSA must be received no later than 30 days after term start date to receive State Grant for a term

• College financial aid deadlines earlier – Posted on school web site or OHE counselor’s guide

• Carleton, Macalester, St. Olaf, Gustavus Adolphus (and many east coast colleges) require CSS Profile form in addition to FAFSA– https://profileonline.collegeboard.com

• Submit FAFSA even if family has high income/assets– Required for most loan programs

7

FAFSA Forms

• Students encouraged to use FAFSA on the Web– Catches errors up front and reduces delays

• No more bulk orders of paper FAFSA

• Students can use PDF version of paper 2010-2011 FAFSA available at: www.federalstudentaid.ed.gov

• Can complete PDF on the computer or by hand and mail in• Schools can download and make copies• Students can also call (800)433-3243 to order paper FAFSA

• 2010-2011 paper FAFSA # 6 in packet

8

FAFSA Forms

• Fall 2009: Limited supply of 2010-2011 FAFSA on the Web (FOW) Worksheets automatically mailed to schools by U.S. Department of Education– Also available in PDF at: www.fafsa.gov– Additional supply at: www.FSAPubs.org

• 2010-2011 FOTW Worksheet– Helps student determine answers prior to entering

data on-line– Question order follows FAFSA on the Web, so

different from paper FAFSA– Student can download from www.fafsa.gov

9

FAFSA on the Web

Shorter URL!!!

www.fafsa.gov

• Less likely for students to choose wrong web site (www.fafsa.com is commercial site that charges a fee)

• Old URL www.fafsa.ed.gov still works

10

FAFSA on the Web www.fafsa.gov

• Apply • Reapply • Apply for PIN• Find college codes• Check status of

FAFSA• Make corrections• Add additional

colleges• Print SARs

11

PIN Number

• Apply for PIN in real-time while completing FOTW• Make sure name/dob matches name/dob used on

Social Security card– Applies to both student and parent signing form

• PIN can be used:– As electronic signature on FAFSA on Web– Check application status– Make corrections– Sign master promissory note for federal loans– Look up student’s student loan and grant history

12

FAFSA on the WebChanges

• 2010-11 FOTW redesign facilitated by technology upgrade

• Updated navigation reduces the number of pages and length of the application

• Display of help text and instructions will be enhanced by:– use of field

instructions– flyover text– modal boxes 13

14

15

Examples of New Web Flow Logic

• State of legal residence (Questions 18, 19 - Step 1) and date of residency will be skipped if student confirms s/he has resided at same address for at least 5 years

• Drug conviction (Question 23, Step 1) question will not be presented to applicants who indicate that they will be a first-time college student

• Additional financial information and untaxed income questions will be presented in a much simplified “check box” format.

16

Examples of New Web Flow Logic

• Selective Service registration (Question #22, Step 1)

• Will only be offered to students who are male and younger than 26

• Simplification for students 24 and older and for married students (Step 3)

• If the applicant is determined to be independent due to date of birth or marital status, only two dependency questions will be displayed (questions 53 and 54 – to help independent applicants accurately report household size)

17

Questions Related to Being Homeless

• Effective 2009-2010, definition of independent student was expanded to include:– Homeless unaccompanied youths

(Questions 56 & 57 Step 3)

• Determination must be made by:– high school or district homeless liaison; or– director of HUD emergency shelter program; or – director of runaway or homeless youth basic center or

transitional living program

– Youths at risk of homelessness (Question 58 Step 3)

• Determination must be made by:– director of runaway or homeless youth basic center or

transitional living program

18

Examples of New Web Flow Logic

• Identifying Homeless Students– A new screening question will display asking applicants if

they are homeless or at risk of being homeless– The three homeless determination questions (# 56, 57, 58)

will only be presented if student is 21 or younger and answers “Yes” to the homeless screening question

– Students who are 22 or 23 and answer “Yes” to the homeless screening question, and students who are 21 or younger but answer “No” to all three homeless determination questions, will be –

• Taken down an alternate path to allow them to submit their FAFSA without parental data, and

• Directed to follow-up with their financial aid office

19

Verifying Student is Homelessor Emancipated

• Financial aid office may request documentation of homeless unaccompanied youth status– List of district or high school homeless liaisons is in

packet (#7)– List of shelters and transitional housing programs in

packet (#8)• Must be funded by HUD (shown on listing)

– If third party documentation not possible, financial aid administrator can verify based on documented interview with student

• Financial aid office likely to request documentation of emancipated status (#54 Step 3)

– Emancipation in MN limited to cases of legal marriages and parental consent

20

FAFSA on the WebChanges• Expanded student marital status to four

options to match those used by IRS (Question 16 Step 1)

• Removed veterans’ benefits questions because they are no longer required

• Added text explaining that the value of military housing or a military housing allowance should not be included as untaxed income benefits (Question 45g and Question 93g)

• Added a question about earnings from work under a cooperative education program (e.g. internship) at an institution of higher education to be excluded from income (Question 44f and Question 92f)

21

FAFSA on the WebChanges

• Federal Student Aid and the IRS are developing a collaborative solution that simplifies FAFSA completion

• The new process will allow FAFSA on the Web applicants to request and retrieve their income tax data from the IRS

• Once the data is retrieved it can be automatically transferred to FOTW

22

How will this process work?

23

How Will the IRS Site be

Accessed?

24

How Will Applicants Transfer Data to FOTW?

25

IRS Data Share Implementation Schedule

• 2009-2010 IRS data share will be implemented in

January 2010– Pilot to test proof of concept– Participation is voluntary

• 2010-2011 IRS data share will be implemented in the Summer of 2010– Full implementation– Participation is voluntary

• Verification– For school’s benefit, will set flag on ISIR to identify when

income data is from IRS versus self-reported

26

FAFSA on the WebChanges

• Retention, graduation and transfer rates within FAFSA on the Web– When students use the school code

lookup within FOTW to list colleges on the form, they will be presented with each college’s reported retention, graduation and transfer rates

– This information will also display on the FAFSA on the Web confirmation page

27

FAFSA on the WebChanges

• Students will receive more detailed information on their FOTW confirmation page and Student Aid Report (SAR). In addition to the EFC, students will receive: – An estimate of the Pell Grant award amount

– An indication of student loan eligibility

– Links to College Navigator for detailed college information – programs offered, tuition rates, graduation rates, etc.

– Also, students can now e-mail the confirmation page to their own personal email address

28

Future FAFSA Simplification

• New web technology used to significantly streamline the application form

• Enhanced skip logic used to reduce the number of questions many students have to answer

• IRS Data Share process used to reduce the number of income questions students and parents must answer

• Proposals to eliminate assets, untaxed income, dependent student income

29

FAFSAParental Information

30

When Student is a Parent

• ‘Do you have children who receive more than half of their support from you?” (#51 Step 3)– Answer “no” if student and child live with

student’s parents and they provide more than half of the support for student’s child

– Answer “yes” if student provides more than half the support for the child

• Public assistance to student can be considered student support of child

31

Other Relatives and Legal Guardians

• Parents’ information– Grandparents, foster parents, other relatives and

legal guardians are NOT considered parents on the FAFSA unless they legally adopted student

• Do NOT substitute information about above parties in parent section on FAFSA

• In many cases, these applicants will be able to apply as independent via:

– Meeting one of the independent criteria in Step Three; or

– Dependency override

32

Biological or Adoptive Parents • If biological/adoptive parents married, report

information for both parents• If biological/adoptive parents are divorced or

separated, provide information for parent:– Student lived with the most in last year– Or, if lived equal periods with each parent, parent who

provided the most financial support in last year or most recent year support provided

• If that parent remarried, include stepparent’s information, even if stepparent did not adopt student

– Note: Unlike FAFSA, CSS Profile form will require information for non-custodial parent

33

Biological or Adoptive Parents• If student’s biological/adoptive parents are

living together but not married, provide information for parent who provided the most financial support in the previous year or most recent year support was provided

• Generally, this is parent with highest income

• If biological/adoptive parent is single or widowed, provide information about surviving parent

• If surviving parent remarried, include stepparent’s information, even if stepparent did not adopt student

34

FAFSA Handouts for Students

• Tips for Completing the 2010-2011 FAFSA (#9 in packet)

• Completing the FAFSA: Special Guidance Related to Dependency Status and Providing Parental Information (#10 in packet)

• Completing the FAFSA Flowchart (#11 in packet)

35

Post-ApplicationProcess

36

FAFSA Results

• Student notified of FAFSA processing results by:– E-mail notification with link to student’s SAR

online if student’s e-mail address provided on:• Paper FAFSA (takes 2 weeks)• FAFSA on the Web (takes 1-2 days if electronically

signed with PIN; 2 weeks if mailed in signature page)

• Make sure student adds federal email address to address book to avoid delivery problems FederalStudentAidFAFSA@cpsemail.ed.gov

– If student has a PIN, can view SAR online at www.fafsa.gov

– Draft 2010-2011 SAR #12 in packet

37

Corrections

• If a correction to applicant data is needed, the correction may be made: – On the paper SAR;– Using Corrections on the Web if student has a

PIN (www.fafsa.gov); or– By the school, using software or web-access

system provided by the U.S. Dept of Ed

38

Verification

• Certain applications are selected for verification

• Family must complete verification worksheet sent by financial aid office– Must attach tax returns, W2

statements and other supporting documentation

– Don’t make corrections after verification without consulting financial aid administrator!!

39

Professional Judgment

• Normally, a family’s Expected Family Contribution (EFC) is based on income for the previous tax year– For 2010-2011 academic year, tax year 2009

• Federal and state financial aid laws allow financial aid administrators to use their “professional judgment” to alter data on the FAFSA for special circumstances

• Adjustments are typically performed as corrections after the original FAFSA is submitted

40

Professional Judgment

• Financial aid administrators have authority to make adjustments to cost of attendance, dependency status or data (income, assets, etc.) used to calculate EFC

• Adjustments must be documented, based on unusual circumstances and applied on a case-by-case basis

• Professional judgment is OPTIONAL– School not required to honor another

school’s professional judgment adjustment, but can

41

Professional Judgment

• Common examples include:– Significant change in income from past tax year based

on unemployment, underemployment, death, divorce, military service or natural disaster

– Unusually high medical expenses– Nursing home expenses– Elementary or secondary school tuition– Significant college costs for dependent student’s parent

attending college– Dependency override

• Family should contact financial aid administrator to discuss unusual circumstances

42

What is a Dependency Override?

• Gives financial aid administrator authority to allow otherwise dependent applicant to apply as independent applicant due to unusual circumstances– Parental abuse, abandonment, incarceration, etc.

– Not used simply because student lives outside parent household after age 18 or parents object to providing data

• Must be supported by documentation, preferably by someone outside immediate family

• Student should contact financial aid office for instructions after submitting FOTW without parental data 43

Completing FAFSA Without Parental Information

• For students who don’t qualify for a dependency override:– An applicant who is determined to be dependent but

whose parents refuse to provide parental data on the FAFSA and refuse to provide financial support will have the option to submit the FAFSA for an unsubsidized loan only

– FAFSA on the Web will present a path that allows the applicant to indicate that he or she will not provide parental data on the form and will allow the applicant to submit the FAFSA

– School will later require statement from one parent that parents refuse to complete the FAFSA and do/will not provide financial support to the student

44

Zero EFC for Dependents of Deceased Armed Forces Member

• EFC is automatically set to zero if: – Student’s parent or guardian was a member of

the Armed Forces who died as a result of performing military service in Iraq or Afghanistan after 9/11/01; and

– Student was under 24 or enrolled at an institution of higher education at the time of the death

• There is not a question on the FAFSA for this item

• Interface between FAFSA on the Web and Department of Defense will identify/confirm and send results to college

45

Award Notification

• Student should receive award notice from each college listed on the FAFSA once admitted to college– Important that student identifiers on FAFSA match

identifiers used in admissions process

• Financial aid varies depending on the cost and mix/composition of financial aid available

• Compare:– Ratio of grants to loans/work-study– Remaining unmet need

• NASFAA award comparison worksheet in packet – #28 on left side of packet

46

Sources of Financial Aid

47

Need Varies Based on Cost

X

Y

Z

Cost of Expected Family NeedAttendance Contribution (Variable) (Variable) (Constant)

1

2

3

EFC EFC

48

EFC Calculation

•Federal Methodology if formula created by Congress to calculate the Expected Family Contribution (EFC)

•Sample calculation in packet for future reference– #13 left side of packet

•EFC Formula Book available at www.ifap.ed.gov

•Check out Office of Higher Education’s on-line estimator for EFC, Pell Grant, State Grant and tax credits at:

www.getreadyforcollege.org

49

Federal General Student Eligibility Criteria

• Enrolled or accepted for enrollment in eligible program of study

• Pursuing recognized credential

• U.S. citizen or “eligible non-citizen”– Permanent residents with I-551 or I-551C card– Refugees, asylees, victims of human trafficking, T-Visa

holders with I-94 card

• Registered with Selective Service (if male and required)

• Not convicted for sale of illegal drugs while receiving federal aid– Last two bullets don’t affect state financial aid

50

Federal Pell GrantApplication: FAFSA

• Based on financial need

– For average family of 4, income < $58,000

– Higher income if larger family or more than one child in college

• Award does NOT vary based on cost of college

• Maximum award for 2010-2011 is $5,550

• Available for up to 4 full-time semesters per year

• Limited to a total of 18 semesters of Pell Grant

• Portable to eligible colleges in any state

• Funded as entitlement program (all eligible students receive funding)

51

Federal Supplemental Educational Opportunity Grant (FSEOG)Application: FAFSA

• Eligible students– Undergraduates pursuing first

bachelors or professional degree– Must have exceptional financial

need • Annual award amounts

– $100 minimum - $4,000 maximum

• Funding limited to school’s allocation

– Schools usually prioritize based on financial need, date of application

52

Possible Elimination of ACG and SMART GrantsApplication: FAFSA

• Handout on Federal ACG Grant and SMART Grant in packet (#14)

• Neither program is included in President’s proposed budget for FY12 (2011-2012 academic year)

• Federal budget bills still pending – stay tuned!

53

TEACH GrantsApplication: FAFSA, TEACH Agreement to Serve (https://teach-ats.ed.gov)

• $4,000 per year for students pursuing coursework necessary for teaching

• Must teach full-time in low-income school in certain fields for 4 years within 8 years of degree completion– Becomes a loan that must be repaid if teaching obligation not

met– Interest accumulates from initial date of disbursement

• Must have 3.25 GPA or ACT, SAT, GRE in 75th percentile• Not based on financial need• Eligible fields are math, science, special education,

foreign language, bilingual education, reading or another high-need field

54

Robert C. Byrd Honors Scholarship ProgramApplication: http://education.state.mn.us/MDE/Academic_Excellence/School_Choice/Sch_Choice_Serv/Robert_C_Byrd_Honors_Schlorship_Program/index.html

• Federally-funded, merit-based program administered by MN Department of Education

– MDE contact: Sarah.Smith@state.mn.us or 651.582.8629.

• Recognizes and promotes student excellence and achievement

• States establish selection criteria and select recipients

• Recipients may receive up to $1,500 a year for up to four years of undergraduate assistance

55

Federal and State Work StudyApplication: FAFSA, Contact Financial Aid Office for Job Placement

• Undergraduate or graduate students are eligible

• Employment may be on or off campus

• May work during summer

• Wages won’t count against student’s future financial aid eligibility on FAFSA

• Student should indicate interest in work study on question #31 on FAFSA

56

Federal Perkins LoanApplication: FAFSA, Promissory Note (see Financial Aid Office)

• Priority to students who show exceptional need

• Loan amount varies – Maximum $5,500 undergraduate; $8,000 graduate

• Lender is college (using federal funds)– Not all colleges participate

• Interest rate 5%; Nine-month grace period

• Several loan cancellation options

– Teaching, military service, law enforcement, child or family services, Head Start, early awareness, nursing

57

Federal Stafford LoansApplication: FAFSA, Promissory Note

• Subsidized: Must demonstrate “need”– Interest paid by government while in college

• Unsubsidized: Need is not a consideration– Interest not subsidized by government

• Base annual loan limits (combined sub and unsub)

– $5,500 for 1st year undergrad

– $6,500 for 2nd year undergrad

– $7,500 for each remaining undergraduate year

– $20,500 for each year of graduate/professional study (no more than $8,500 subsidized)

• Annual limits for undergraduates can be increased by $4,000-$5,000 for independent students or dependent students whose parents are unable to borrow PLUS loan

58

Repayment of Stafford Loans

• Current interest rate 5.6% (subsidized) and 6.8% (unsubsidized)

– Subsidized rate drops to 4.5% for initial loans made during the 2010-2011 academic year

• Six-month grace period

• Deferment and cancellation provisions available

– New borrower (after Oct 1998) can cancel up to $5,000 by teaching in low-income school district for 5 consecutive years

• Up to $17,500 if highly qualified full-time math or science teacher at secondary school or special education teacher

• For further details on repayment, see ‘Repaying’ at: www.studentaid.ed.gov

59

PLUS LoansApplication: FAFSA, PLUS Application & Promissory Note

• Application available from school or lender • Annual loan limit: cost of attendance minus

other aid– Family EFC not a factor

• Borrowers are graduate students or the parents of dependent undergraduate students

• New loans now have fixed interest rate of 8.5% for lender-based PLUS loans and 7.9% for direct PLUS loans through school

• Repayment begins 60 days after loan is fully disbursed OR can defer until 6 months after student no longer enrolled half-time

– Interest is capitalized during deferment unless paid • Loan comparison chart for all loans #15 in

packet60

Minnesota State Grant ProgramApplication: FAFSA

• Minnesota resident attending Minnesota college• Must be enrolled for at least 3 credits per term in

a program leading to credential• Ineligible after four years of full-time attendance• Award based on financial need and

calculated/disbursed by school– Award amount varies based on college cost,

enrollment level and type of college attended

(2-year or 4-year)– Ineligibility for Pell Grant does not necessarily rule out

State Grant (see handout on Pell and State Grant eligibility by income #16 in packet)

61

Pell and State GrantsFamily of 4, Married Parents, 1 in college – 2009-2010 Acad Year

FamilyIncome

2-Yr Public

State Univ U of M

4-Yr Private

PrivateCareer

$20,000

Pell $5,350 $5,350 $5,350 $5,350 $5,350

State $ 959 $1,975 $3,743 $3,743 $1,566

$40,000

Pell $3,900 $3,900 $3,900 $3,900 $3,900

State $1,024 $2,040 $3,808 $3,808 $1,631

$60,000

Pell $ 0 $ 0 $ 0 $ 0 $ 0

State $1,535 $2,551 $4,319 $4,319 $2,142

$80,000

Pell $ 0 $ 0 $ 0 $ 0 $ 0

State $ 0 $ 0 $ 0 $ 0 $ 0

62

MN ACHIEVE ScholarshipApplication: FAFSA, Achieve Application www.getreadyforcollege.org/achieve

• Program changed during 2009 legislative session• One-time $1,200 - $4,022 scholarship for students

graduating from high school after January 1, 2009– Must be used the year after high school graduation– Additional $150 for taking on-line course in high school

• Student must:– Complete ACHIEVE Scholarship application no later than 30

days after term starts– Be MN resident attending MN college for 15 or more credits– Show financial need for a Pell or State Grant– Be U.S. citizen or eligible non-citizen– Complete the FAFSA – Complete a rigorous course of study* in high school with

overall unweighted GAP of at least 2.5

*described in handout #17 in packet63

MN ACHIEVE Scholarship

• Program is administered by the Office of Higher Education (OHE)

• On-line application at: www.getreadyforcollege.org/achieve

• Students can apply on-line and submit copies of official high school transcripts or other supporting documentation to OHE

• PLEASE HELP GET THE WORD OUT !!!!– ACHIEVE Scholarship handout #17 in packet available

for duplication and distribution– Encourage students to complete rigorous course of

study in high school

64

Summer Transition Grant

• Passed by 2009 Legislature• Monetary grant to students attending summer

transition program following HS graduation• Programs must be offered by MN colleges and

address weaknesses identified by college placement exam– Remedial courses

– Support services (counseling, mentoring, etc.)

• Further information will be sent to HS counselors once summer transition programs approved for summer 2010

65

Student Educational Loan Fund (SELF) Application: FAFSA, SELF Loan Application www.selfloan.org

• Office of Higher Education is lender• Family income not a consideration• Can be used at participating college in any

state• Credit worthy co-signer who is U.S. citizen or

eligible non-citizen• Variable interest; quarterly interest paid while

in school; rate currently 3.9%• Maximum $7,500 undergraduate; $9,000

graduate• Apply on-line at: www.selfloan.org (#18 in

packet)

66

MN Indian Scholarship Program

• $1.9 million awarded to approximately 500-600 recipients per year

• Maximum award $4,000 undergraduate; $6,000 graduate

• Applicants submit applications to OHE• At least one quarter American Indian

ancestry• MN resident attending MN college• On-line application at:

www.getreadyforcollege.org/indianscholarship

• Handout #19 has contacts for tribal scholarships 67

MN G.I. Bill ProgramApplication: FAFSA, MN GI Bill Application

• Up to $1,000 per semester for students who are:– Veterans who serve/have served honorably in the

U.S. armed forces on or after 9/11/2001– Non-veterans who served honorably in the MN

National Guard (or other reserve) for 5 or more years and part of serviced occurred on or after 9/11/2001

– Surviving spouses or dependents of person who served on or after 9/11/2001 and died or sustained permanent disability as a result of military service

• For MN residents attending MN college• On-line application at:

www.getreadyforcollege.org

68

Other State Financial Aid Programs

Information in Your Guide to Paying for College:

• Postsecondary Child Care Grant (Page 11)

• Safety Officer’s Survivor Grant (Page 29)• Tuition waiver at public college for

visually or hearing impaired students (Page 28)

• $5,000 Education Vouchers for Former Foster Youth (Page 28)

• Several Health Professions Loan Forgiveness Programs (Page 31)

69

Tuition Reciprocity

• Allows MN residents to attend in neighboring states at rate similar to what they would have paid in MN (and vice versa)

• Apply directly to ND or SD college if recent MN high school graduate

• Apply directly to colleges in Manitoba• All other students must submit

application to Office of Higher Education in MN– Apply on-line for 2010-2011 after March

1, 2010 at: – www.getreadyforcollege.org

• With exception of the SELF loan, state financial aid not portable to other states

70

Midwest Student Exchange Program

• Minnesota participates in MSEP program with Indiana, Kansas, Michigan, Missouri and Nebraska– Participation is voluntary– High-demand programs/colleges can opt out

• Colleges can selectively grant MSEP rates – Many use as tool to recruit high ability students

• For listing of colleges/programs and criteria:

http://msep.mhec.org• Students charged no more than 150% of resident

tuition rate• Students apply directly to college for MSEP rates

71

Institutional Scholarships

• Variety of need-based, merit, athletic, and other talent-based scholarships and grants

• Many of these listed in OHE high school counselor guide and at: http://www.getreadyforcollege.org/sPagesGR/scholarshipsAll.cfm

• Average institutional scholarship offered by MN private four-year colleges during Fall 2006 was $8,357

72

Application: FAFSA

Power of You Application

MnSCU’s POWER OF YOU• For graduates of Minneapolis or St. Paul high school

attending Mpls CC & TC, St. Paul College or Metro State University

• Pays tuition and fees not covered by grants• Apply in senior year of high school as early as

possible - priority deadline is May 1• For additional information contact: MCTC: Nasreen Mohamed 612-659-6219 nasreen.mohamed@minneapolis.edu

Saint Paul College: Mee Yang (651) 846-1385 mee.yang@saintpaul.edu

Metro State Univ: Xy Johnson (651) 793-1509 xy.johnson@metrostate.edu

73

U Promise Scholarship

U of M campuses• FAFSA is application used

– March 1 priority deadline

• Tuition and fees will be covered by a combination of federal, state and institutional gift aid

• Student must:– be eligible for the Federal Pell Grant program– be a Minnesota resident – be taking 13 or more credits per term– Apply by completing FAFSA

• Middle Income scholarship of $500 - $1,750 for families with incomes too high for Pell Grant but under $100,000

74

Private Scholarships

• Student should check with local businesses, civic organizations, parents’ employers

• Free internet search sites:

www.collegeboard.com/pay

www.fastweb.com

www.studentscholarshipsearch.com

www.gocollege.com

www.finaid.org

www.scholarship.com

• Scholarship Opportunities for Students of Color (#20 in packet)

75

Resources for Undocumented Students

• Office of Higher Education’s web site has information on resources for undocumented students (#21 in packet)

– Listing of scholarships– Several public colleges and universities in MN no

longer have non-resident tuition rates– SELF loan available if co-signer is U.S. citizen

76

Higher Education Tax and Savings Incentives

77

Federal Higher EducationTax Advantages

• American Opportunity Tax Credit (formerly Hope Tax Credit)

• Lifetime Learning Tax Credit• Tuition and Fees Deduction• Penalty Free IRA Withdrawals• Coverdell Education Savings Account• Student Loan Interest Deduction

See Publication 970 at: www.irs.gov for details

78

American Opportunity Tax Credit (formerly Hope Tax Credit)

• Available for tax years 2009 and 2010• Covers up to $2,500 in tuition and fees

not covered by gift aid• 40% of calculated credit is refundable

– Occurs when tax liability is less than amount of credit

– Example: If taxes from tax table are $500 and calculated tax credit is $1,000, $500 will be applied to tax liability and $400 ($1,000 X 40%) will be refunded

• Available for incomes up to:– $90,000 single filer– $180,000 joint filers

79

• State-managed savings accounts for higher education offering different investment options

• Earnings exempt from federal and state taxes if used for qualified higher education expenses

• State provides annual matching grant to qualifying account beneficiaries who are MN residents

– To receive matching grant, account owner must contribute at least $200 in last calendar year and apply for matching grant by the following May 1st

– If account beneficiary’s family income under $50,000 could receive a 15% match, up to $400

– If account beneficiary’s family income between $50,000 and $80,000 could receive a 10% match, up to $400

• See brochure in packet

80

It Pays to Save

• Assets a factor in EFC if parents’ AGI is $50,000 or more and parents don’t qualify for short tax form or other federal need-based programs

• Parental net worth does NOT include family home, retirement or life insurance accounts, non-education IRAs, small business (100 or fewer employees) or family farm

• Roughly 6 percent of parental net worth OVER the asset protection allowance ends up in the EFC– Asset protection allowance is around $45,000

• Dependent student net worth assessed at 20%– No asset protection allowance

81

It Pays to Save - Handouts

• Does Saving in College Affect Financial Aid?

(#22 packet)

• Financial Impact of Savings Vehicles

(#23 in packet)

82

Helpful Resources

83

Helpful Resources

• College financial aid administrator knows best!!– (Contact info provided in back of Your

Guide to Paying for College)

• Questions on federal aid programs and application process (800) 433-3243

• Office of Higher Education financial aid staff (651) 642-0567 or (800) 657-3866

(see #30 in packet)

84

Student PublicationsOffice of Higher Education(all in packet)

Your Guide to Choosing a College

Focus on FinancialAid Summary Focus on(available in Spanish, Hmong Financial

Aid and Somali)

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Helpful Resources Office of Higher Education

• Bulk orders of student publications– www.getreadyforcollege.org/materials– Click on ‘ordered in bulk’– Select institution name– Enter password

• Schools were mailed instructions • with passwords• If you forget password, ask another counselor

at school or click email link on web page

– Can also download forms in PDF

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Helpful Resources Office of Higher Education

www.getreadyforcollege.org (#31 in packet)• OHE web site for students and parents

– Financial aid programs and application process– Preparing for college– Tuition and fees charged by colleges in MN and

neighboring states– EFC/Financial Aid Estimator for Families– On-Line Reciprocity Application– All student-focused publications– OHE Guide for High School Counselors– Financial Aid Night PowerPoint Presentation– Materials from conference (download in white to

duplicate) See material list #2 packet

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www.iseek.org

• Explore careers– Career planning, assessment tests, job outlook,

working conditions, wages

• Plan your education– Find a college, program, K-12 class, apprenticeship,

Adult Basic Education

• Find a job– Workforce centers, job listings, resumes,

unemployment benefits, interviewing

• www.iseek.org

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Helpful Resources for Counselors• www.nasfaa.org Counseling Tools

– Early Awareness– Counselor’s Advisor– Financial Aid Night kit for HS counselors

• www.ifap.ed.gov– High School Counselors’ Handbook– FAFSA on Web promotional materials– Order financial aid publications

• On-line tutorial for completing a FAFSA, including case study:

http://www.ed.gov/offices/OSFAP/fsacoach/module.htm#m-1004-1-3-0

• List of useful financial aid and higher education web sites #32 in packet

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MAFAA Regional Financial Aid Nights

• MAFAA will continue to put on regional financial aid nights at MN colleges throughout the state

• Location of events posted at:– www.mafaa.org (under

Students & Parents)

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College Goal Sunday!!

• Presenters at events will help families complete the FAFSA line by line

• Targeted to families of first-generation college students

• Parents and students should bring W2’s, tax return forms and records of untaxed benefits to event for reference

• Events will start in February• For further information and

dates/sites: www.mncollegegoalsunday.org

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Line-by-Line FAFSA Webinar for Counselors

• OHE will partner with Great Lakes Higher Education Guaranty to provide free webinar for new high school counselors– How to complete the FAFSA line-

by-line

– Major financial aid programs and how to apply

– Additional sources of information

• High school counselors will receive email with webinar date and registration

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High School Financial Aid Night

Hosting your own financial aid night

• PowerPoint presentation with script available at:– www.nasfaa.org (federal aid

programs only)– www.getreadyforcollege.org (this

presentation)– www.mafaa.org (short version)

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FAFSA on WEB Demo Site (for financial aid nights)

• In December 2009, FAFSA on the Web demonstration site will be available – To access, go to:

http://fafsademo.test.ed.gov– Enter:

• User Name: eddemo• Password: fafsatest

• Click on FOTW button at bottom of screen to access demonstration

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Thank you for your service to students!!

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