WELCOME Financial Aid Night January 24, 2013 Brenda Thomas Financial Services Specialist

1. WELCOME Financial Aid Night January 24, 2013 Brenda Thomas Financial Services Specialist Office of Financial Aid Western Michigan University

2. 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?

3. 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 thatdoes not have to be paid back Usually awarded on the basis of financial need • Loans: Money students and parents borrow to help pay college expenses. Look at as an investment Repayment usually begins after education is finished Only borrow what is really needed • Employment opportunities: Allows student to earn money to help pay educational costs in the form of a paycheck or non-monetary compensation, such as room and board

4. PIN Web Site • PIN serves as electronic signature on ED documents, including electronic promissory notes. • PIN is used to gain access to ED systems, including: Corrections on the Web NSLDS Direct Loan Origination Direct Loan Servicing Loan Consolidation Sign FAFSA electronically

5. Free Application for Federal Student Aid (FAFSA) • Initial step in the application process • Core document to apply for financial aid • Used to calculate an [EFC] Expected Family Contribution • Confirms certain eligibility requirements • Cannot submit earlier than 1/1/2013 • Access to FAFSA4caster

6. CAUTION! • Avoid being charged a fee to file the FAFSA Completion and processing of the FAFSA are FREE • To complete and file the FAFSA on the Web go to www.fafsa.gov • Contact the financial aid office if you need help in completing the FAFSA

7. Completing FAFSA on the Web • www.fafsa.gov • Access to FAFSA4caster • Parents with more than 1 college student can transfer data from original application to others

8. IRS Data Retrieval MatchWill be available Mid February 2013 NOTE: after the IRS Data Retrieval Match is available… Recently filed, data may not be available to transfer –tax information electronically filed (within the last 2 weeks) or submitted by mail (within the last 8 weeks) may not be available. There is a “View option to link to the IRS” link where you can check to see if tax information from the IRS is available.

9. IRS Data Retrieval Tool • Allows you to securely transfer your tax information directly to the FAFSA • You must complete and submit your 2012 federal income tax return to use this tool • If you submit the FAFSA before your taxes are filed or you use estimated data, you WILL need to go back and update the FAFSA after taxes are filed [If you do not use the IRS Data Retrieval Tool, you will need to supply a tax transcript from the IRS]

10. IRS Data Retrieval Match • The student and parents, when applicable, are required to respond to the following filtering question. Check all that apply or check None of the Above. • My tax filing status is Married Filing Separately • My tax filing status is Head of Household • I filed an amended tax return • I filed a Puerto Rican or foreign tax return • I recently filed my taxes • None of the above

11. IRS Data Retrieval Match If response is anything but “None of the Above” An applicant will receive the message, “Based on your response, you are not eligible to transfer your information from the IRS into this FAFSA.” Those who select “None of the Above”, would be encouraged to use the tool. Message: “Based on your response, we recommend that you transfer your information from the IRS into this FAFSA.

12. You Can Not Use the IRS Data Retrieval Tool if your tax filing status is: • Married – filing separately • Head of Household • Residents of U.S. territories: Puerto Rico, Guam etc. • You amend your 1040 [1040X] • Recently filed your 2012 Taxes • If you have an outstanding balance due to the Federal Government

13. How The Data Are Used? • In a statutory formula called the Federal Methodology • Looks at income, assets, and size of family to determine family’s “ability to pay” for education • Result is called the [EFC] Expected Family Contribution

14. …One Log-In for all Applicants

15. Frequent FAFSA Errors • Social Security Numbers • Divorced/remarried parental information • Income earned by parents/stepparents • Untaxed income • U.S. income taxes paid • Household size • Number of household members in college • Real estate and investment net worth

16. Am I Dependent or Independent? • Born before January 1, 1990 • 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 Most high school students will not be independent but, in extraordinary circumstances, the college aid administrator can override dependency. Contact the college aid office for help.

17. Dependent Students…Which parent files? • If the parents are both living and married to each other, answer the questions about both of them. • If the parent is widowed or single, answer the questions about that parent only. • 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 * who will result in highest eligibility • 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... Step parent)

18. Who is NOT the ParentWhen completing the FAFSA • Grandparents • Legal Guardians • Foster Parents • Aunts/Uncles • Older Siblings –Unless the student was legally adopted prior to age 13

19. A student is eligible for homeless youth status if he/she meets the homeless definition and was determined to be homeless by his/her high school or school district homeless liaison, the director of a runaway or homeless youth center, or HUD. A student is also eligible for homeless youth status if he/she meets the homeless definition, but was determined to be homeless by the financial aid office. FAFSA Homeless Youth Questions 55-57

20. FAFSA Household Question 72 Siblings of dependent student are included in the parents’ household if Parent will provide more than 50% of support for sibling during award year OR Sibling would be dependent if filed FAFSA Foster children are not in the household and foster payments are not income

21. TIDBITS • In-kind support is not untaxed income on FAFSA Examples – support other than money • Food • Clothing • Living rent-free • Federal law defines marriage as legal union of man and woman Same-sex couples cannot be married on the FAFSA

22. What’s Next??? • Student Aid Report • Making corrections • Completing the file • Determining need • Award Letters

23. FAFSA Results Notification • If paper FAFSA was filed and student did not provide an e-mail address a Paper Student Aid Report (SAR) will be mailed to the student. • 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.

24. 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 they maybe able to receive • Displays the official EFC [expected family contribution] • Only last 4 digits of parent’s SSN will display on paper and electronic SARs. • Submit to college only if requested.

25. Making Corrections on the Web • Available regardless if original application was paper or electronic. • 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.

26. Completing the file • Financial Aid Office may request Verification worksheets with documentation Tax transcript from the Other……….

27. Determining Need: Your School’s estimated Cost of Attendance • Tuition and fees • Room and board • Books, personal and travel expenses - Expected Family Contribution = Financial Need Your School’s estimated Cost of Attendance • Tuition and fees • Room and board • Books, personal and travel expenses - Expected Family Contribution = Financial Need

28. Calculating Financial Need[Example based on 2012-13 figures]

29. 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

30. Special Circumstances • Change in employment status • Medical expenses not covered by insurance • Change in parent marital status • Unusual dependent care expenses

31. Michigan Financial Aid Programs • Deadline is March 1, 2013 • Michigan Competitive Scholarship • Michigan Tuition Grant (private schools only) • Tuition Incentive Program (TIP) www.Michigan.gov/osg osg@michigan.gov 1-888-4-GRANTS (888-447-2687)

32. Additional Financial Aid • College Scholarships Freshman Scholarships Department Scholarships • Private donors Parents’ employers Community organizations www.fastweb.com

33. Don’t Get Hooked by Misleading Scholarship Offers • College aid offers are everywhere Internet Mail Newspapers Magazines Telephone

34. Warning Signs of Scam • High application fees • Guaranteed winnings • Everybody is eligible • Masquerading as federal agency • Claims of government approval • Time pressure • Unusual requests for personal information • Visit: http://www.ftc.gov/scholarshipscams

35. Net Price Calculator • All schools are required to have a “Net Price Calculator” on their web sites as of October 29, 2011 • 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

36. College Goal Sundaywww.micollegegoal.org STUDENTS!

37. Additional Resources: www.studentaid.gov/fafsa/filling-out www.studentaid.gov/fafsa/next-steps www.finaid.org www.ed.gov www.facebook.com/federalstudentaid

38. Questions? Contact your Financial Aid Office