Federal Student Aid 101: Federal Student Aid Programs and the

FAFSA

U.S. Department of Education

Office of Federal Student Aid

January 2016

Today’s Topics

• Federal Student Aid Programs

• FAFSA Process

• College Costs

• Federal Student Aid Resources

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Sources of Money for College

Federal government

State government

Colleges and universities

Private foundations

Employers and private companies

Professional and service organizations

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How Do I Find Scholarships?

• Search for scholarships online

• the U.S. Department of Labor’s FREE scholarship search

• Employer

• The financial aid office at a college or career school

• Federal agencies and State grant agency

• Library’s reference section

• Foundations, religious or community organizations, local

businesses, or civic groups

• Organizations (including professional associations) related

to your field of interest

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There is more than $150 billion available

in federal aid to help students pay for college

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Loan Type Interest Rate

(First Disbursed between

July 1, 2015 and June 30,

2016)

Repayment

Federal Perkins Loan 5% Fixed 9 months after school

Federal Stafford/

Direct Loan

Undergraduate

Subsidized

4.29% Fixed

Unsubsidized

4.29% Fixed

6 months after school

Federal Direct PLUS

Loan (Parents,

Graduate &

Professional)

6.84% Fixed Direct Lending

Schools

May be deferred until 6 months

student drop ½ time or 60 days after

loan is fully disbursed

Interest Rates for Federal Loans

• Loans are an investment

• Only borrow what you need

• Private loans are an option but may

have higher interest rates

• Repayment doesn't start immediately

Loan Tips

FAFSA.gov

Questions?

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FSA ID: Needed for FAFSA.gov

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Free Application for Federal Student Aid (FAFSA)

• Eligibility for federal student aid programs is determined by the information provided on the FAFSA

• Students are encouraged to file their FAFSA as soon as possible after January 1st of their senior year in high school

• Must create an FSA ID to complete online application at FAFSA.gov

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Basic Eligibility Requirements

Students must have:

• High school diploma, GED, homeschool completion

certificate

• A Social Security Number (with limited exceptions)

• U.S. citizenship or be an eligible non-citizen

• Registered with the Selective Service (Males)

Students also need to:

• Be enrolled or accepted for enrollment in an eligible

program

• Be pursuing a degree, certificate or credential

• Maintain ‘Satisfactory Academic Progress’

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• Transfer tax information directly into the FAFSA

• Takes 2-3 weeks for information to become

available in Retrieval Tool Database

• Easiest way to provide tax information but NOT

required

• Usually available early February 2016

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IRS Data Retrieval Tool

If any of the following criteria applies, the student is

considered independent:

24 years or older

Married

Pursuing a Master’s or Doctorate Program

Children and you provide ½ support

In foster care since turning the age of 13

Emancipated minor

Currently or was in legal guardianship

Homeless or self supporting and at risk of being homeless

Veteran or serving active duty in U.S. Armed Force

FAFSA Dependency Status

Special Circumstances • Some examples of special circumstances are:

• Parents are incarcerated or deceased

• Left home due to an abusive family environment

• Unsure of parents whereabouts

• Circumstances must be well documented

• Financial aid office has final say (professional

judgement)

Helpful Hints

• Dependent students are only eligible for

unsubsidized loans without parent

information on the FAFSA

• FAFSA is used for more than just

federal aid

• Undocumented parents can use 000-00-

0000 in place of SSN

Scenario

“I am a student and my parents are divorced.

Do both of my parents need to complete the

FAFSA?”

Answer: If your parents are divorced or

separated and don’t live together, the parent

with whom you lived more during the past 12

months should be the only one to complete

the FAFSA.

“I am a student and I split my time living

equally between my divorced parents. The

FAFSA requires information from the

supporting parent. Which parent should fill

out the FAFSA?”

Answer: If you lived the same amount of time with

each divorced or separated parent,

the parent who provided more financial support during

the past 12 months should complete the FAFSA.

Scenario

Scenarios

“I am the grandmother and legal guardian of

a student. Can I fill out the FAFSA in place of

the parent?”

Answer: No. This student is considered independent

due to the courts placing the student in a legal

guardianship. Independent students are not

required to provide parental information on the

FAFSA.

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What To Expect

Student

completes

the

FAFSA

FAFSA is

processed

by FSA;

Student

receives a

SAR;

College

receives

information

if listed on

the FAFSA

College

reviews

FAFSA

and

assembles

award

package

for the

student

Student

reviews

award

letters and

determines

which

college to

attend

After the FAFSA Submission

• Check your email and snail mail

regularly

• Update and/or make corrections to the

FAFSA if necessary

• Follow up with the schools for your

award letter

• Continue to search for scholarships

Sample Award Letter

Financial Need = $13,000 Scholarships $2,000

Institutional Grant $2,000

Federal Grants $5,000

State Grants $2,000

Loans $2,000 - Unmet need

TOTAL = $13,000

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www.StudentAid.gov

Connect With Us!

TWITTER

@FAFSA

www.twitter.com/FAFSA

YOUTUBE

Federal Student Aid

www.youtube.com/FederalStudentAid

FACEBOOK

Federal Student Aid

www.facebook.com/FederalStudentAid

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FSAIC The Federal Student Aid Information Center (FSAIC) operates a toll-

free hotline to provide:

o Information about federal student aid programs;

o Help completing the FAFSA

o Information about the process of determining financial need

and awarding aid

1-800-4-FED-AID (1-800-433-3243)

www.StudentAid.gov

www.fafsa.ed.gov

Hours: Monday – Friday: 8:00am – 10:00pm ET Saturday: 9:00am – 6:00pm ET Sunday: Closed

http://nces.ed.gov/collegenavigator/

Comparison Shopping – College Navigator

College Scorecard

An online tool that will make it easier for students and families to compare colleges by comparing information such as: net price; graduation rates; default rates; student loan debt; and earnings potential

http://collegecost.ed.gov/scorecard/index.aspx

College Scorecard