Financial Aid Information2013-2014

Mike Johnson, Director of Financial AidPacific University

Community Colleges$ 4,200 tuition, $16,000 total

Public Colleges and Universities$ 8,300 tuition, $23,000 total

Private Colleges and Universities$29,900 tuition, $43,000 total

Higher Education Prices

Gift Aid◦ Scholarships◦ Grants

Self-Help Aid◦ Employment◦ Loans

Financial Aid Programs

Awarded to applicants based primarily on academic merit, talents, and activities

Institutional scholarships◦ Institutions’ websites

State-administered scholarships◦ www.oregonstudentaid.gov

Outside scholarships◦ www.fastweb.com ◦ www.studentscholarshipsearch.com◦ www.finaid.org

Scholarships

Awarded primarily to applicants who demonstrate significant financial “need”

Federal Grants◦ Federal Pell Grant◦ Federal Supplemental Educational Opportunity Grant

(FSEOG) State Grants

◦ Oregon Opportunity Grants Institutional Grants

Grants

Awarded on a funds available basis primarily to applicants who demonstrate financial “need”

Federal Work-Study Institutional employment

Employment

Applicants do not have to demonstrate financial “need” to be awarded certain loans

Need-based Federal Perkins Loan Federal Direct Subsidized LoanNon-need-based Federal Direct Unsubsidized Loan Federal Direct Parent PLUS Loan Private alternative loans

Loans

Admissions application Financial aid application (FAFSA) Student Aid Report (SAR) Eligibility determination (ISIR) Need analysis (FM) Award notification Award disbursement

Financial Aid Process

Free Application for Federal Student Aid (FAFSA) – applicants and parents can request Personal Identification Numbers (PINs) now at www.pin.ed.gov, then apply as soon as possible after January 1st at www.fafsa.gov

Collect relevant documents (2012 income statements, current bank balances, etc.)

Skip logic will result in different questions for different applicants

FAFSA on the Web

Follow instructions and enter information carefully

Use close estimates if actual income information is not available

List up to ten schools that can receive the information

Sign the form electronically; the applicant and one parent will each need a PIN

FAFSA on the Web

FAFSA on the Web home page

Social Security number and name agreement

Parent definition Student independency criteria Household size/number in college Taxable income Taxes paid Untaxed income Assets

FAFSA on the Web information challenges

If reported names and social security numbers do not match Social Security Administration records, applicants must provide copies of social security card(s) to the school

Social Security number/name

Biological/adoptive parents, and stepparents Not legal guardians or relatives who have not

adopted the applicant For divorced/separated parents, and parents in

domestic partnerships: The parent(s) with whom the applicant lived the most

during the previous 12 months, or The parent(s) who provided the most financial

support to the applicant during the previous 12 months, or

The parent(s) who provided the most financial support to the applicant most recently

Parent definition

Applicants who will attend college directly from high school are usually dependent.

Under 24 years old, not married, not supporting a child, not a veteran of the US Armed Forces

Ways applicants can be independent include: Orphans, wards of the court, or in foster care Emancipated minors In a legal guardianship Unaccompanied youth who are homeless or at risk of

being homeless Made independent as a result of documented special

circumstances

Student independency criteria

Household size includes: The applicant and his or her parent(s) The parents’ other children if they receive more

than half of their support from the parents or if those children would be required to provide parent information on a FAFSA

Other people if they live with and receive more than half of their support from the parents

Household size

Number in college includes: The applicant The parents’ other children and/or other

household members if they will attend college at least half time in a degree or certificate program

Parents of dependent applicants cannot be listed as college students on the applicant’s FAFSA

Number in college

When estimating income: Look at year-end earnings statements and other

available income summaries Refer to the previous year’s tax return for income

categories to report When estimating taxes paid:

Do not report taxes withheld shown on W2s Refer to the previous year’s tax return for an idea

of the percentage of the Adjusted Gross Income that was paid in taxes

Taxable income and taxes paid

Untaxed income includes: Payments to tax-deferred pension and savings

plans IRA deductions Child support received Tax-exempt interest income Veterans non-education benefits

Untaxed income does not include: Untaxed Social Security payments Supplemental Security Income Welfare payments

Untaxed income

Assets include: Current cash, savings, and checking balances Investments (including stocks, bonds, CDs,

mutual funds, trust funds, and 529 plans for other children that are in the parents’ names)

Rental properties and second homes Assets do not include:

Primary residences Family owned businesses and farms Retirement accounts

Assets

College Scholarship Service’s PROFILE – available in the fall to apply for institutional aid at participating schools. The PROFILE asks for information not required on the FAFSA.

Institutional supplemental forms – provide schools with information not requested on the FAFSA

Supplemental Financial Aid Applications

The Student Aid Report (SAR) is the output document that results from filing the FAFSA

It will indicate the applicant’s Expected Family Contribution (EFC)

It may be used to correct or update certain information; changes can be made online at www.fafsa.gov

Schools receive information electronically and use it to determine eligibility, perform need analysis, and make and revise awards

Student Aid Report

High school diploma or equivalent U.S. citizen or eligible non-citizen Registered for Selective Service if male

aged 18 to 26 Admitted to an eligible academic program

Eligibility Determination

Standardized assessment of a family’s financial strength measured primarily by past year income and current assets

Federal Methodology is the set of formulas used for all federal aid and most state and institutional aid

Schools may require additional information to confirm or correct reported amounts

Federal “need” calculation: Cost of Attendance (COA)

- Expected Family Contribution (EFC) “Need”

Need Analysis

Federally required process for certain FAFSA filers Requires schools to request documentation of

some FAFSA data, including taxable income, certain untaxed income, household size, number in college

IRS Data Retrieval Tool, available February 3, 2013, should ideally be used to document income. Some tax filers will have to provide Tax Return Transcripts

New for 2013-2014: some applicants will have to document high school completion and identity

Verification

Indicates “package” of aid from school Requires careful scrutiny since content and

format may vary◦ May show costs in different ways and in different

detail◦ May include student loan amounts, varying detail

on the loan application process◦ May include Federal Direct Parent PLUS Loans◦ May require written acceptance by an

institutionally determined deadline

Award Notification

Cost of Attendance: $16,000EFC 03000“Need” $13,000Federal Pell Grant $ 2,800FSEOG $ 600Federal Work-Study $ 2,200Federal Perkins Loan $ 1,800Federal Direct Subsidized Loan $ 3,500Federal Direct Unsubsidized Loan $ 2,000Total Award $12,900

Example Award Package: Community College

Cost of Attendance $23,000EFC 03000“Need” $20,000Federal Pell Grant $ 2,800FSEOG $ 800University Scholarship $ 3,500Federal Work-Study $ 2,200Federal Perkins Loan $ 2,000Federal Direct Subsidized Loan $ 3,500Federal Direct Unsubsidized Loan $ 2,000Total Award $ 16,800

Example Award Package: Public College/University

Cost of Attendance $43,000EFC 03000“Need” $40,000Federal Pell Grant $ 2,800FSEOG $ 800Presidential Scholarship $ 16,000Institutional Grant $ 7,500Federal Work-Study $ 2,200Federal Direct Subsidized Loan $ 3,500Federal Direct Unsubsidized Loan $ 2,000Total Award $34,900

Example Award Package: Private College/University

Financial Aid Shopping Sheet

Most financial aid funds are applied to students’ charges when school starts if required processes have been completed◦ Federal Work-Study and institutional employment

funds must be earned◦ Master Promissory Notes/applications and

entrance counseling must be completed for loans. Some schools must wait 30 days to disburse loan proceeds

Funds that exceed billed charges are given to students◦ Funds from Federal Direct Parent PLUS Loans are

given to the parent borrower unless that parent has authorized the student to receive them

Award Disbursement

Award amounts may change if◦ Families correct or update FAFSA data, including

providing income from their tax returns using the IRS Data Retrieval Tool

◦ Schools revise FAFSA data based on new information

◦ Students receive outside scholarships after financial aid has been packaged

◦ Students drop classes, or their credit completion and/or grades do not meet minimum standards

◦ Anticipated federal or state funds are not received

Award Revisions

Schools’ costs may be difficult to compare and contrast

The EFC is really a financial aid eligibility index; for that reason, federally defined “need” may not reflect a family’s actual financial situation;

Schools may not be able to meet all of a family’s “need”

Despite those two disclaimers, a school’s net price (cost of attendance minus grants and scholarships) may be surprisingly affordable

Additional Considerations

Future indebtedness should be carefully considered when accepting loans since the total cost of the student’s education includes the total loan amount repaid

Families should report to the school any special circumstances that will affect their ability to pay for college. Such circumstances may include: Parent job loss or reduction in hours Significant unreimbursed medical expenses Private tuition for younger children in the family

Additional Considerations

Any college or university financial aid office The Federal Student Aid site at

www.studentaid.gov The Financial Aid Information Page at

www.finaid.org College Goal Oregon sites each Saturday in

January 2013 – information at www.collegegoaloregon.org

Financial Aid Day (PCC) – January 5, 2013 at each PCC campus – information at www.pcc.edu

Additional Information