Brenda ThomasSarah Werkman

Financial Services Specialists

Office of Financial AidWestern Michigan University

WELCOMEFinancial Aid Night

with thanks to NASFAA

Tonight’s Agenda

What is Financial aid?

What types of aid are available?

What makes me eligible?

The FAFSA application process!

What should I expect after I file for aid?

Who do I call with questions or changes?

What is Financial Aid?Scholarships:

Money that does not have to be paid back.Awarded on the basis of merit, skill, or unique characteristic

Grants:Money that does not have to be paid backUsually awarded on the basis of financial need

Loans:Money students and parents borrow to help pay college expenses. Look at as an investmentRepayment usually begins after education is finishedOnly borrow what is really needed

Employment opportunities:Allows students to earn money to help pay educational costs in the form of a paycheck or non-monetary compensation, such as room and board

Free Application for Federal Student Aid (FAFSA)A standard form that collects demographic and financial information about the student and family

Used to calculate an [EFC] Expected Family Contribution

Colleges use EFC to award financial aid

For the 2015–16 academic year, the FAFSA may be filed beginning January 1, 2015

Most colleges set FAFSA filing deadlines

FAFSA on the Webwww.fafsa.gov

Access to FAFSA4caster

Parents with more than 1 college student can transfer data from original application to others

Option to use Internal Revenue Service (IRS) Data Retrieval Tool (DRT) to import tax data available early February 2015 for 2015-16

Federal Student Aid Personal Identification Number (FSA PIN)

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

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

IRS Data Retrieval ToolSome will be unable to use IRS DRT

Examples include:Filed an amended tax return

No SSN was entered

Student or parent married but filed separately

Filed your 2014 Taxes within previous 2 weeks

[If you do not use the IRS Data Retrieval Tool, you may need to supply a tax transcript from the IRS]

Frequent FAFSA Errors

Social Security NumbersDivorced/remarried parental informationIncome earned by parents/stepparentsUntaxed incomeU.S. income taxes paid Household sizeNumber of household members in collegeReal estate and investment net worth

FAFSA asks questions to determine dependency status for federal student aid (not IRS) purposes:

If all “No” responses, student is dependent

If “Yes” to any question, student is independent

Student Dependency Status

Am I Dependent or Independent? Born before January 1, 1992

Enrolled in a graduate program

Married

Veteran of the U.S. Armed Forces or currently serving on Active duty in the US Armed Forces for purposes other than training

Has child(ren)/dependents for whom he/she provides more than half support

Both parents are deceased

Is/was an orphan, ward of the court or in foster care at any time since student turned age 13

Is/was an emancipated minor as determined by a court in state of legal residence

Is/was under legal guardianship until age18, as determined by a court in state of legal residence

Is/was an unaccompanied youth who was homeless or at risk of being homeless

Dependent students are required to include income and other information from the dependent student’s legal parents (biological or adoptive) on the FAFSAregardless of the parents’ marital status or gender,if those parents live together

Dependent Students

Dependent Student Which parent files? If the parents are both living and married to each other, or living

together but NOT married answer the questions about both parents.

If the parents have divorced or separated: Where does the student live the most? If exactly equal time, who provides most support? NOT who claims student on taxes or who will result in highest eligibility.

If the parent is widowed or single, answer the questions about that parent only.

If this parent has remarried as of today, answer the questions about both that parent and the person to whom the parent is married (ie.Stepparent)

Who is NOT the Parent When completing the FAFSAGrandparents

Legal Guardians

Foster Parents

Aunts/Uncles

Older Siblings

What’s Next???

Student Aid Report

Making corrections

Completing the file

Determining need

Award Letters

FAFSA Results Notification

If FAFSA filed on line and student did not provide an e-mail address student will receive a SAR acknowledgement

If paper FAFSA or FAFSA filed on line and student provided an e-mail address, student will receive an email notification containing a direct link to the student’s SAR on line.

Student with FSA PIN may view SAR online at www.fafsa.gov

Student Aid Report (SAR)

The SAR summarizes the data provided on the FAFSA as well as the federal calculations.

Indicates how much Federal Pell Grant the student may be able to receive

Displays the official EFC [expected family contribution]

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 paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or

Submitting documentation to college’s financial aid office

Making Corrections on the Web

Student’s PIN required to access.

Parents must have PIN to correct parent information.

Pop-up message will appear when student tries to correct transaction already corrected by a school.

Completing the file

Financial Aid Office may request

Verification worksheets with documentation

Tax transcript from the IRS

Other……….

Determining Need:

Your School’s estimated

Cost of AttendanceTuition and feesRoom and boardBooks, personal and travel expenses

- Expected Family Contribution

= Financial Need

Calculating Financial Need [Example based on 2014-15 figures]

Cost of Attendance WMU(Fall & Spring)

FA Award with $0 EFC

FA Award with $3600 EFC

FA Award with $7000 EFC

Tuition and fees $11,249 $11,249 $11,249Room and Board $8,904 $8,904 $8,904 Books and supplies, Personal, Travel $3,243 $3,243 $3,243 Estimated Financial Contribution (subtract) $0 ($3,600) ($7,000) Total Financial Need $23,396 $19,796 $16,396

Potential AwardsPell $5,730 $2,000 $0 SEOG $2,000 $200 $0 WS $2,000 $2,000 $0 Perkins $2,000 $0 $0 Subsidized Loan $3,500 $3,500 $3500 Unsubsidized Loan $2,000 $2,000 $2000 Total Estimated Award $17,230 $9,700 $5,500

Remaining Need Total Cost of Attendance $23,396 $23,396 $23,396Total Estimated Award (subtract) $17,230 $9,700 $ 5,500 Remaining Need $6,166 $13,696 $17,896

Award Letters

Colleges will mail/email an Award Letter to the student, stating offered financial aid

Please read important information enclosed with Award Letter

– Instructions for accepting awards– How awards will be disbursed

Special Circumstances Change in employment status

Unusual medical expenses not covered by insurance

Change in parent marital status

Unusual dependent care expenses

Student can not obtain parental information

Cannot be documented using FAFSA

Send written explanation and documentation to financial aid office at each college

College will review and request additional information if necessary

Decisions are final and cannot be appealed to U.S. Department of Education

Special Circumstances

Michigan Financial Aid Programs

Deadline is March 1, 2015

Michigan Competitive Scholarship

Michigan Tuition Grant (private schools only)

Tuition Incentive Program (TIP)

www.Michigan.gov/osgosg@michigan.gov

1-888-4-GRANTS (888-447-2687)

Additional Financial Aid

College ScholarshipsFreshman ScholarshipsDepartment Scholarships

Private donor scholarshipsParents’ employersCommunity organizations

Don’t Get Scammed‘College aid offers’ are everywhere

Internet

Mail

Newspapers

Magazines

Telephone

Net Price CalculatorAll schools are required to have a “Net Price Calculator” on their web sites

The Net Price Calculator allows students to calculate how much they will pay (approximately) at the school

– School supplies info on cost and general gift aid for students in the family’s income range

– Cost minus gift aid equals “Net Price”– The family can then compare net price for the

school(s) they are considering

MI College GoalSunday, February 8, 2015www.micollegegoal.org

Here is what you need to do: 1. Save the date. Sign up for a reminder!

2. Get your FAFSA PIN Number. This Personal Identification Number is how you sign your electronic FAFSA at MI College Goal.

3. Print out a list of what you need to bring with you to the event.

4. Find your location.

Additional Resources:

udentaid.gov/fafsa/filling-out

www.studentaid.gov/fafsa/next-steps 

www.finaid.org

www.ed.gov

www.facebook.com/federalstudentaid

Contact your Financial Aid Office

Questions?