Slide 1 © NASFAA 2010

Financial Aid Workshop

Heritage High School

December 13, 2011

National Association of Student Financial Aid Administrators

© NASFAA 2010

What You Need to Know

About Financial Aid

Slide 3 © NASFAA 2010

Admissions & Financial Aid Timeline

• August-November……………..College Search• November-February……....College Applications• December-March……….Admissions Decisions• January-February…..Financial Aid Applications• February-April…………Financial Aid Decisions• December-May 1st……………..College Choice

Slide 4 © NASFAA 2010

Topics We Will Discuss Tonight

• What is financial aid• Cost of Attendance (COA)• Expected Family Contribution (EFC)• What is financial need• Categories, types, and sources of financial aid• Free Application for Federal Student Aid (FAFSA)• CSS Profile• Special circumstances

Slide 5 © NASFAA 2010

Cost of College

Average college total cost, 2011-2012

Private 4 year: $38,590 (with grants/scholarships: $23,000)

Public 4 year: $17,030 (with grants/scholarships: $11,380)

Public 2 year: $6,600 - $10,370

NOVA: $137.75/credit ($4,959/36 hrs)

Slide 6 © NASFAA 2010

Median Earnings by Educational Level -2010

• Dropout: $23,088• High School Graduate: $32,552• Some college but no degree: $37,024• Associate’s degree: $39,884• Bachelor’s Degree: $53,976• Master’s Degree: $66,144• Doctorate: $80,600• Professional degree: $83,720

Slide 7 © NASFAA 2010

Myths About Paying for college

• College is too expensive• There is less aid available now• My family’s income is too high• My parents saved for college so we won’t qualify for aid• I’m not a straight “A” student• If I apply for a loan, I have to take it• Working will hurt my academic success• Millions of scholarship dollars go unused• My parents will have to sell their house• Private schools are out of reach

Slide 8 © NASFAA 2010

Some Interesting Statistics courtesy of Mark Kantrowitz of FinAid and FastWeb

• 65.6% of bachelor degree students graduate with an average of $25,250 in educational debt

• In 2007-2008, 2.3 million Pell Grant eligible students did not apply for federal aid, and 1.1 million would have qualified for a

full Pell Grant ($5,500/free money).• 40% of undergraduates do not submit the FAFSA, and of these, about

27% would qualify for a Pell Grant (free money).• Of students who borrowed private student loans (at presumably higher

interest rates) but not federal loans, 60% did not submit the FAFSA.

• If you do not qualify one year, it does not mean you will not qualify the next. Apply every year.

Slide 9 © NASFAA 2010

What is Financial Aid?

Financial aid is funds provided to students and families to help pay for postsecondary educational expenses

Slide 10 © NASFAA 2010

What is Cost of Attendance (COA)

• Direct costs: Tuition, fees, room & board (Paid directly to college)

• Indirect costs: Books, computers, transportation (gas), off-campus housing, personal expenses (entertainment, clothing, laundry), other costs

(lab fees)

• Direct and indirect costs combine into cost of attendance

• Varies widely from college to college

Slide 11 © NASFAA 2010

What is the Expected Family Contribution (EFC, figured by the

FAFSA)• Amount family can reasonably be expected

to contribute (but not what will actually pay due to possible added college aid)

• Stays the same regardless of college• Two components

– Parent contribution– Student contribution

• Calculated using data from a federal application form and a federal

formula

Slide 12 © NASFAA 2010

What is Financial Need

Cost of Attendance

– Expected Family Contribution

= Demonstrated Financial Need

Slide 13 © NASFAA 2010

Categories of Financial Aid

• Need-basedAwarded based on family’s ability to payMust file financial aid application(s)

Based on Expected Family Contribution (EFC)

• Non-need-based aid (merit based)Academic, athletic, talent, leadership scholarships

based strictly on student’s achievementsAllows schools to “shape” their student body

•

Slide 14 © NASFAA 2010

Types of Financial Aid

• Scholarships

• Grants

• Loans

• Employment / Work Study

Slide 15 © NASFAA 2010

Scholarships

• Money that does not have to be paid back

• Awarded on the basis of merit, skill, or unique characteristic

Slide 16 © NASFAA 2010

Grants

• Money that does not have to be paid back

• Usually awarded on the basis of financial need (e.g. Pell Grants)

Slide 17 © NASFAA 2010

Loans

• Money 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

Slide 18 © NASFAA 2010

Employment / Work Study

Allows student to earn money to help pay educational costs

• A paycheck; or

• Non-monetary compensation, such as room and board

• Research says that students who enroll part-time and work full time are more likely to

drop out of college.

Slide 19 © NASFAA 2010

Sources of Financial Aid

• Federal government

• States

• Private sources

• Civic organizations and churches

• Employers

Slide 20 © NASFAA 2010

Federal Government

• Largest source of financial aid

• Aid awarded primarily on the basis of financial need

• Must apply every year using the Free Application for Federal Student Aid (FAFSA)

Slide 21 © NASFAA 2010

Common Federal Aid Programs

• Federal Pell Grant: Can qualify for a second grant if in summer school and graduating early

• Teacher Education Assistance for College and Higher Education Grant

• Federal Supplemental Educational Opportunity Grant

• Federal Perkins Loan

• Federal Work-Study

• Stafford Loans

• PLUS Loans

Slide 22 © NASFAA 2010

States

• Residency requirementsState residents often qualify for lower in-state tuition

rates and state education grantsThe average surcharge for full-time

out-of-state students at public 4-year institutions is $11,990 (www.collegeboard.com)

• Award aid on the basis of both merit and need

• Use information from the FAFSA

Slide 23 © NASFAA 2010

Virginia State Aid

• Tuition Assistance Grant - $2650 in 2011-2012• College Scholarship Assistance Program - $400 - $5,000• Commonwealth Award – varies by school• Virginia Part-Time Assistance Program for community colleges –

amount varies • National Science and Math Access to Retain Talent Grant (SMART):

for years 3 and 4 for math & science talent• Virginia Guaranteed Assistance Program – Up to the cost of tuition,

fees, and books

• Additional information available at www.schev.edu

Slide 24 © NASFAA 2010

Private Sources

• Foundations, businesses, charitable organizations

• Deadlines and application procedures vary widely

• Begin researching private aid sources early

Slide 25 © NASFAA 2010

Heritage Career Center Webpage

Slide 26 © NASFAA 2010

www.naviance.com

Slide 27 © NASFAA 2010

Civic Organizations and Churches

• Research what is available in community

• To what organizations and churches do student and family belong?

• Application process usually spring of senior year

• Small scholarships add up!

Slide 28 © NASFAA 2010

Local, Loudoun County Money

Slide 29 © NASFAA 2010

Employers

• Companies may have scholarships available to the children of employees

• Companies may have educational benefits for their employees

Slide 30 © NASFAA 2010

www.fastweb.com

Slide 31 © NASFAA 2010

www.finaid.org

Slide 32 © NASFAA 2010

Protect Yourself from Scholarship Scams

Rules of Thumb:

If you must pay money to get money, it might be a scam.

If it sounds too good to be true, it probably is.

Nobody can guarantee that you will win a scholarship

Make certain you are on the correct FAFSA website.

Slide 33 © NASFAA 2010

Free Application for Federal Student Aid (FAFSA)

• A standard form that collects demographic and financial information about

the student and family

• May be filed electronically or using paper form

– Available in English and Spanish

Slide 34 © NASFAA 2010

FAFSA

• Information used to calculate the Expected Family Contribution or EFC (EFC is a guess for the parent but

is specific for the financial aid administrator)

– The 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

• Colleges use EFC to award financial aid

Slide 35 © NASFAA 2010

FAFSA

• May be filed at any time during an academic year, but no earlier than the January 1st prior to the

academic year for which the student requests aid

• For the 2012–13 academic year, the FAFSA may be filed beginning January 1, 2012

• Colleges may set FAFSA filing deadlines by which students must have filed the FAFSA if students wish to be

guaranteed consideration for financial aid.

– Examples: George Mason’s is March 1 Old Dominion’s is February 15

Slide 36 © NASFAA 2010

FAFSA on the Web

• Website: www.fafsa.gov (Using another website can cost $80-$100; using private financial aid

advisors can cost $400-$500.)• 2012–13 FAFSA on the Web available on January 1, 2012• FAFSA on the Web Worksheet:

– Used as “pre-application” worksheet– Questions follow order of FAFSA on the Web

Slide 37 © NASFAA 2010

FAFSA on the Web

Good reasons to file electronically:• Built-in edits to prevent costly errors• Skip logic allows student and/or parent to skip

unnecessary questions• More timely submission of original application and any

necessary corrections• More detailed instructions and “help” for common

questions• Ability to check application status on-line• Simplified application process in the future

Slide 38 © NASFAA 2010

IRS Data Retrieval Tool

• While completing FOTW (FAFSA on the Web), 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 window

• Applicant chooses whether or not to transfer data to FOTW

Slide 39 © NASFAA 2010

IRS Data Retrieval Tool

• Available late January 2011 for 2011–12 processing cycle

• Participation is voluntary

• Could reduce documents requested by financial aid office

• Cannot use if both parents have filed separately

Slide 40 © NASFAA 2010

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

Slide 41 © NASFAA 2010

FAFSA Pin Numbers

Student needs a pin,

AND

One parent needs a pin

You should get these now!

Slide 42 © NASFAA 2010

FAFSA on the Web Worksheet

• 2012-13 FAFSA on the Web

Worksheet: Four page bookletcontaining:– Instructions– 24 questions in 4

sections

Slide 43 © NASFAA 2010

FOTW Worksheet: Section 1(This is not the actual FAFSA application.)

General Student Information:- Social Security Number- Citizenship Status- Marital Status- Selective Service

registration (males 18-25)- Drug convictions- Parent education

Slide 44 © NASFAA 2010

FOTW Worksheet: Section 2

Student’s dependency status:

- If “No” to all responses, student is dependent

- If “Yes” to any question, student is independent

Slide 45 © NASFAA 2010

Dependency Status

• Students are considered dependent unless they answer yes to any of the following:Born before January 1, 1989?

Married?Working on a master’s or doctorate program?

Serving on active duty in U.S. Armed Forces? Veteran of the U.S. Armed Forces?

Have children and provide more than half their support? Since I turned 13, both parents deceased? Since I turned 13, I have been In foster care? Have dependents (other than children or my spouse) who live with them and student provides more than half their support?Dependent or ward of the court since turning 13?

Emancipated minor?Currently are or were in legal guardianship after age 13?

Homeless or at risk of being homeless?

(If abused, abandoned, neglected, or cannot contact the parent, can tell college financial aid office and they will make the determination,)

Slide 46 © NASFAA 2010

Undocumented Students

• Financial aid is generally not available for undocumented students. The majority of all student aid,

including Federal student aid, requires the recipient to be a US citizen or permanent resident (green card holder) or an eligible non-citizen.

• Undocumented students will pay out-of-state tuition rates.• There are several private scholarships available to

undocumented students.

Slide 47 © NASFAA 2010

FOTW Worksheet: Section 3

Information about the parents of dependent students:

- Tax, income, & other financial information

- Dislocated worker status

- Assets (Note: FAFSA is more focused on income than assets.)

Slide 48 © NASFAA 2010

Additional Information

• College and housing information

Slide 49 © NASFAA 2010

Understanding Who They Mean When They Say Parents

• If parents are both living and married to each other, answer the question for both of them.

• If parents are separated, divorced, or were never married, answer the questions only about the parent with whom the

student lived with most during the past 12 months. If time was spent equally with both parents, give answers about the parent who provided the most financial support (not necessarily who claims the student on their tax return).

• If parents are remarried, you must also include information about the stepparent. (Pre-nuptial agreements between the

parent and a step-parent will not eliminate the step-parent.)

• If student has a legal guardian, answer the questions about the guardian.

Slide 50 © NASFAA 2010

FOTW Worksheet: Section 4

Information about the student (and spouse)

- Tax, income, and other financial information

- Dislocated worker status- Assets (What they are worth at

the time you apply. Not expected to constantly readjust as the stock market goes up and down. Assets are a small part of the EFC. Not trying to take retirement funds. Will look at second home.)

Slide 51 © NASFAA 2010

Dislocated Worker?

• You may be if:

- You have been terminated, laid off, or received a ‘notice of termination’ and are unlikely to return to your usual occupation or industry because of:

- A permanent plant closure

- A substantial layoff

- Foreign competition

- Lack of demand for you skills

- You are self-employed, but the economy or a natural disaster has put you out of work (probably ineligible for unemployment)

- You are a displaced homemaker who is either unemployed or working a job that does not support your household (probably ineligible for unemployment)

Source: WorkSource

Slide 52 © NASFAA 2010

Additional Information for FAFSA

• College and housing information

Slide 53 © NASFAA 2010

Signatures for FAFSA

• Required– Student

– One parent (dependent students)

• Format– Electronic using PIN

– Signature page

– Paper FAFSA

Slide 54 © NASFAA 2010

Super Saturday

• Free assistance in completing the FAFSA online• Saturday, February 4, 2012• Devry University/Arlington - Lisa Branson 703 414-4029• Stonewall Jackson High School/Manassas – Nancy

Pomaranski 703 365-2992• Skyline High School – Joyce Jenkins-Wimmer

joyce@warrencoalition.org• Lord Fairfax Community College/Middletown – Tracy

Shepherd 540 868-7131

Slide 55 © NASFAA 2010

Frequent FAFSA Errors

• Name exactly as written on social security card• Date of Birth• Social Security Numbers (if do not submit, colleges cannot access

your information from FAFSA)• Divorced/remarried parental information• Income earned by parents/stepparents• Untaxed income• U.S. income taxes paid • Household size (For whom are you providing support?)• Number of household members in college (Mom cannot claim son

living with Dad in a divorced situation.)• Real estate and investment net worth• Both parents claim “Head of Household” on taxes when both live in

the same house.

Slide 56 © NASFAA 2010

FAFSA Processing Results

Central Processing System (CPS) notifies student of FAFSA processing results by:

• Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s e-mail address was

not provided

• SAR Acknowledgement if filed FAFSA on the Web and student’s e-mail address was not provided

Slide 57 © NASFAA 2010

FAFSA Processing Results

• 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

• Student with PIN may view SAR on-line at www.fafsa.gov

Slide 58 © NASFAA 2010

FAFSA Processing Results

• Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA submitted. Will take MUCH longer if submit the FAFSA by paper.

• College reviews ISIR– May request additional documentation, such

as copies of federal tax returns

Slide 59 © NASFAA 2010

Student Aid Report

• Review data for accuracy: If you find you made a mistake after submitting your FAFSA, you will have to wait until after it has been processed to make corrections. Corrections can be made online through “Corrections on the Web” (Note: You must have a pin to correct your FAFSA

data online.)

• Update estimated information when actual figures are available

Slide 60 © NASFAA 2010

Adding or Deleting a School Code

• If you want to add or remove any of the school codes that you listed on your FAFSA, you

will have to wait until it has been processed.

• If sending to more than 10 schools, will have to submit the first 10, then make certain

each of the first ten schools have downloaded the FAFSA, before deleting the old schools and putting in the new schools.

• Note: You must have a pin to add or delete schools.

Slide 61 © NASFAA 2010

Making Corrections

If necessary, corrections to FAFSA data may be made by: • Using FAFSA on the Web (www.fafsa.gov) if

student has a PIN;• Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or• Submitting documentation to college’s financial aid office

Slide 62 © NASFAA 2010

Help!

• FAFSA on the Web Customer ServiceFor assistance while using FAFSA on the Web, call

1-800-4FED-Aid (1-800-433-3243). If you are hearing impaired and have questions, contact the TTY line at 1-800-730-8913.

• From 8 am – midnight, you can also receive help live customer service help, online, by selecting the

“Live Help” button conveniently located within the pages of the application.

• Select the “Need Help?” button at the bottom of the lower part of each screen.

Slide 63 © NASFAA 2010

Help!......Locally

Financial Aid Counselors at Shenandoah University:

- Nancy Bragg (Director) – 540-665-4621

- Brian De Young (Associate Director) – 540 665-4707

Financial Aid Counselor at NOVA:

- Jenna Griffin – 703-948-7784

- Renee McLaurin – 703-948-7784

Financial Aid Counselor at George Mason:

Super Saturday: February 4, 2012

Slide 64 © NASFAA 2010

Special Circumstances

• Cannot report on FAFSA (e.g. medical expenses, parent laid off late in the calendar year affecting anticipated income for the next calendar year)

• Send written explanation to financial aid office at each college

• College will review special circumstancesMay request additional documentationDecisions are final and cannot be appealed to U.S.

Department of Education

Slide 65 © NASFAA 2010

Special Circumstances

• Change in employment status

• Medical expenses not covered by insurance

• Change in parent marital status

• Unusual dependent care expenses

• Student cannot obtain parent information

Slide 66 © NASFAA 2010

CSS Profile (Review)

• Complete Profile beginning Oct. 1, 2011, for 2012-2013 school year

• Watch for early deadlines• $25 ($9 + $16) for registration and first school

report, $16 for each additional college (fee waivers automatically considered)

• FAFSA must also be completed to be considered for federal student aid

Slide 67 © NASFAA 2010

CSS Profile Review

• Complete Profile beginning Oct. 1, 2011, for the

2012- 2013 school year• Watch for early deadlines• $25 ($9 + $16) for registration

and first school report, $16 for each

additional college (fee waivers automatically considered)

• FAFSA must also be completed to be considered for

federal student aid

Slide 68 © NASFAA 2010

CSS Profile

• https://profileonline.collegeboard.com

Slide 69 © NASFAA 2010

CSS Profile: Sample of Participating Colleges

Check website for complete list….

American University

George Washington University

Georgetown University

Johns Hopkins University

Patrick Henry College

University of Richmond

University of Virginia

Washington and Lee University

Slide 70 © NASFAA 2010

Calculate Financial Aid Possibilities

• www.finaid.org/calculators/finaidestimate.phtmlThis form is used to calculate the Expected Family

Contribution (EFC) and financial need and to estimate your student financial aid

• www.fafsa4caster.comFAFSA4caster will help you get an early start

on the financial aid process by providing you with an early estimate of your eligibility for federal student aid.

• https://www.vawizard.org/vccs/Main.action

The Virginia Wizard will give you a sense of the need-based aid you will receive from Virginia colleges

Slide 71 © NASFAA 2010

Financial Aid Award Letters

• After you submit your application for financial aid, you will receive an award letter from the colleges to which you applied, typically by April 1 with your college acceptance letter. Must reply by May 1. Some students do not reply!!!! A financial aid package is a collection of different types of financial aid from multiple sources. It is intended to help you fill the gap between your ability to pay and college costs.

• After you receive the award letter, you may be asked to return a signed copy of the letter in which you accept or reject each source of financial aid.

Slide 72 © NASFAA 2010

ReminderExpected Family Contribution (EFC)

• Expected Family Contribution(EFC)=

• Parent Contribution

+

Student Contribution

Slide 73 © NASFAA 2010

ReminderDefinition of Financial Need

• Demonstrated Financial Need=

Cost of Attendance

-

Expected Family Contribution(EFC)

Slide 74 © NASFAA 2010

• Community College

Cost $15,000

EFC-$2,000

_____________

Need $13,0000

4 Year Public University

Cost $19,000

EFC - $2,000

_________________

Need $17,0000

Private University

Cost $50,000

EFC-$2,000

________________

Need $48,0000

Slide 75 © NASFAA 2010

• Community College

Cost $15,000

EFC-$2,000

_______________

Need $ 13,000

Fall Spring Total

Pell Grant $1180 $1180 $2360

SEOG $250 $250 $250

VA Grant $2000 $2000 $2000

FWS $1000 $1000 $1000

________________________________

Total Award $4430 $4430 $8860

Slide 76 © NASFAA 2010

• 4 Year Public University

Cost $19,000

EFC-$2000

_________________

Need $17,000

Fall Spring Total

Pell Grant $1180 $1180 $2360

SEOG $200 $200 $400

VA Grant $2390 $2390 $4780

FWS $1000 $1000 $1000

Stafford Loan $1750 $1750 $3500

________________________________

Total Award $6520 $6520 $13,040

Slide 77 © NASFAA 2010

• Private University

Cost $50,000

EFC-2,000

_____________

Need $48,0000

Fall Spring Total

Pell Grant $1180 $1180 $2360

SEOG $1000 $1000 $1000

Private Univ. Grant $12,500 $12,500 $12,500

FWS $1500 $1500 $3000

Stafford Loan $1750 $1750 $3500

Outside School $1000 $1000 $1000

PLUS Loan $5070 $5070 $10,140

________________________________

Total Award $24,000 $24,000 $48,000

Slide 78 © NASFAA 2010

Unique Ways to Lower/Handle Costs

• Transfer from a community college to a 4-year college. Note: Honors Programs exist at community colleges as well.

• Academic Common MarketArrangement among southern states allowing students to pay in-state tuition rates at out-of-state schools while studying in select programs not available at Virginia public institutionshttp://www.schev.edu/Students/AcademicCommonMkt.asp Click on “Undergraduate Programs”

• Graduate in 3 years• Make good college decisions so do not have to transfer schools or spend extra time in

college if a student changes majors

Slide 79 © NASFAA 2010

Unique ways to Lower/Handle costs

• Payment Plan• ROTC• Early repayment of loans• Pay more than the minimum on loans• Consolidate loans• Unusual payment plans: e.g. Berea College• Budgeting with your student to control their costs• Book rental agreement with Barnes & Noble for

some schools

Slide 80 © NASFAA 2010

Remember!

• Fill out the FAFSA ASAP after 1/1/12• Do not wait until you file your taxes – you can estimate if

necessary• You must fill out the FAFSA every year• Apply directly to the financial aid office of the school you

are applying to for individual college scholarships

• Your financial aid officer is your ally• Watch college scholarship deadlines (may differ from

application deadlines)

Slide 81 © NASFAA 2010

Financial Aid Terms

• For a comprehensive glossary of financial aid terms, please visit:

http://www.nasfaa.org/Redesign/FANight/PDFs/2009/FinancialAidGlossary.pdf

Slide 82 © NASFAA 2010