Financial aid resource guide for counselors leandra ross iupui office of student financial services
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Parts of this presentation come from the National Association of Student Financial Aid Administrators (NASFAA). Financial Aid Resource Guide for Counselors LeAndra Ross, IUPUI Office of Student Financial Services. Financial Aid Basics & New Regulations.

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Financial aid resource guide for counselors leandra ross iupui office of student financial services

Financial Aid Resource Guide for CounselorsLeAndra Ross, IUPUI Office of Student Financial Services


Financial aid basics new regulations

Financial Aid Basics & New Regulations Association of Student Financial Aid Administrators (NASFAA)


General eligibility requirements

  • Must be enrolled or accepted for enrollment in an eligible program of study, pursuing a degree, certificate or other recognized credential.

  • Must be a U.S. citizen or eligible non-citizen.

  • If male student, must be registered with Selective Service. Can register on-line at: www.sss.gov.

  • Must not have had eligibility suspended or terminated due to a drug-related conviction while receiving financial aid.

  • Must have a valid social security number .

  • May not be in default of a student loan or owe repayment of a federal grant.

  • Must meet Satisfactory Academic Progress as defined by college (Quantitatively-GPA Qualitatively-credit hours taken and completed.)

General Eligibility Requirements


Types and sources of financial aid

TYPES: program of study, pursuing a degree, certificate or other recognized credential.

  • Grants and Scholarships

  • Loans and Work – Self Help

    SOURCES:

    • Federal Government

    • State Government

    • College

    • Private Donors

    • Lenders

Types and Sources of Financial Aid


Federal Title IV Programs program of study, pursuing a degree, certificate or other recognized credential.

  • Grants/Scholarships

  • Supplemental Educational Opportunity Grant (FSEOG) (Campus-Based)

  • Pell Grant

  • T.E.A.C.H Grant

    Self Help

  • Work Study (FWS) (Campus-Based)

  • Perkins Loan (Campus-Based)

  • Direct Loan

  • Parent Loan for Undergraduate Students (PLUS Loans)


Federal pell grant

  • Awarded to eligible undergraduates pursuing first bachelor program of study, pursuing a degree, certificate or other recognized credential.’s or professional degree and certain students enrolled in post-baccalaureate teacher certification or licensing programs. Considered an “entitlement” program.

  • Actual award amount based on Cost of Attendance, Expected Family Contribution (EFC), and Enrollment Status. Unlike other financial aid, other aid that the student qualifies for will not affect the amount of the Pell Grant.

  • $5,550 Maximum for 2012-2013 AY

Federal Pell Grant


New federal pell grant regulation

New Federal Pell Grant Regulation


T e a c h grant

  • Prepares students to teach in high-need field limits the duration of a student

  • Must teach 4 years at Title I school

  • School determines additional eligibility requirements

  • Reverts to loan if requirements of grant are not met

  • Not all schools participate

T.E.A.C.H. Grant


Campus based federal programs

  • Supplemental Educational Opportunity Grant, Work Study, Perkins Loan

  • Federal government provides a defined amount of money to the college, the college determines the recipients and award amount.

  • Some colleges choose not to participate in the campus-based aid programs, so when comparing award letters among institutions this point should be noted.

Campus-based Federal Programs


Federal supplemental education opportunity grant fseog

  • Students pursuing first bachelor Perkins Loan’s or professional degree

  • Awarded first to students with exceptional “need”

  • Awarded on a first-come, first-serve basis

  • Can be awarded to students attending less than full-time

  • Annual award maximum: $4,000

Federal Supplemental Education Opportunity Grant (FSEOG)


Federal work study

  • Allows student to earn a set amount of dollars for their education in exchange for employment.

  • Eligible employers may be on/off campus (federal, state, or local public agency).

  • Student usually awarded funding to work 15-20 hours per week. Studies indicate workload does not negatively impact student’s grades.

  • Schools must use a portion of funding offered for community service.

Federal Work-Study


Another new regulation for 12-13 AY education in exchange for employment.

Ability to Benefit

  • Students who pass an ability-to-benefit test or who satisfactorily complete six credit hours will no longer be eligible for federal student aid.

  • Students who have a high school diploma or the equivalent, as well as home-schooled students, will continue to be eligible for federal student aid.

  • The loss of aid eligibility applies only to students who first enroll in a program of study on or after July 1, 2012.


Federal loan programs

Federal Loan Programs education in exchange for employment.


Federal perkins loan

  • Priority to students who show exceptional need. education in exchange for employment.

  • Maximum annual loan

    • $5,500 undergraduate students/$27,500 maximum

  • Revolving loan fund – amount college has to lend depends upon repayments received – very little capital contribution from the feds each year.

  • Interest rate: 5%

  • Nine-month grace period.

  • Repayment period may be up to 10 years.

  • Deferment and cancellation provisions available.

Federal Perkins Loan


Federal stafford loans

Federal Stafford Loans


Federal Stafford Loans Program) with funds provided directly by the federal government.(Subsidized and Unsubsidized)

  • Subsidized Stafford: Must demonstrate need

    • Cost of Attendance – EFC – other aid

  • Unsubsidized Stafford: “Need” is not a consideration.

  • Base annual loan limits (combined subsidized and unsubsidized)

    • $3,500for 1st year undergrad

    • $4,500 for 2nd year undergrad

    • $5,500 for each remaining undergraduate year

    • Students have the option to apply for an additional unsub loan of $2,000

  • Undergraduate Aggregate Loan Limits

    • $31,000 dependent student ($23,000 is subsidized)

    • $57,500 independent student ($23,000 is subsidized)


Additional Unsubsidized Stafford Loan Program) with funds provided directly by the federal government.

  • Additional unsubsidized loan eligibility for independent undergraduates and dependent students whose parents are unable to borrow under the PLUS Loan Program:

    • $4,000 per year for first and second years of undergraduate study

    • $5,000 per year for remaining years of undergraduate study


Federal Stafford Loans Interest Rates Program) with funds provided directly by the federal government.2012-2013

  • Subsidized Loan – 3.4% fixed rate (7/1/2012 – 6/30/2013)

  • Unsubsidized Loan – 6.8% fixed rate


New Federal Stafford Loan regulation for 12-13 AY Program) with funds provided directly by the federal government.

New subsidized Stafford loans made from July 1, 2012 to June 30, 2014 (12-13 & 13-14 AY) will not be eligible for subsidized interest benefits during the six-month grace period after a student graduates or falls below half-time enrollment. Interest will accrue during the grace period and will be capitalized if unpaid by the borrower.


Federal Parent PLUS Loan Program) with funds provided directly by the federal government.

  • Borrowers are parents of dependent.

  • Annual loan limit: cost of attendance minus other aid

  • Interest rate for a Direct PLUS loan is 7.9% fixed rate


Federal Parent PLUS Loan Program) with funds provided directly by the federal government.

  • Repayment begins 60 days after loan is fully disbursed - i.e. after second semester disbursement

  • Deferment provisions; only principal is deferred, but interest may be capitalized

  • Credit check required – if not passed, undergraduate student may be able to borrow additional unsubsidized Stafford loan funds


Other Government Resources Program) with funds provided directly by the federal government.

  • Veterans benefits

  • ROTC scholarships and/or stipends

  • Bureau of Indian Affairs (BIA) grants

  • Health and Human Services loan and scholarship programs

  • State Divisions of Vocational Rehabilitation

  • State grants, scholarships, loans, and work programs


Other Miscellaneous Sources of Funds Program) with funds provided directly by the federal government.

  • College need-based and non-need based programs:

    • Academic, athletic, merit, other talent-based scholarships, and need-based grants.

  • Private/Civic business grants and scholarships.

    • Scholarships/awards which are not federal, state, or college funded must be reported to the Financial Aid Office at the college so that they may be included in the student’s financial aid package.

  • Alternative education loans

  • IRS – federal tax income credits (tax credits offer dollar-for-dollar reduction in tax liability for education expenses (Hope Tax Credit – first and second year up to $1500 per student; and Lifetime Learning Tax Credit – tax benefit to 20% of tuition expenses up to $10,000.) Students should check with their accountant for all possible tax benefits available to them.


Free application for federal student aid fafsa
Free Application For Federal Student Aid (FAFSA) Program) with funds provided directly by the federal government.


Free Application for Federal Program) with funds provided directly by the federal government.Student Aid (FAFSA)

  • Provides a snapshot of the family’s personal and financial information (number in household, number in college, income and assets to determine financial strength)

  • Federal Methodology is applied to calculate Expected Family Contribution (EFC).

  • EFC = Parent Contribution (PC) + Student Contribution (SC)

  • May file the FAFSA by:

    • FAFSA on the Web (FOTW) at www.fafsa.gov. Parents and students must each get a PIN at www.pin.ed.gov prior to completing FAFSA on the Web. Helps to complete pre-application worksheet as well.


FAFSA Application Requirements Program) with funds provided directly by the federal government.

  • Submit the FAFSA prior to the college or state deadline, whichever is first.

  • To ensure maximum consideration for federal, state, and college aid, check with each school to determine:

    • + Required application materials

    • + Application deadlines


To file fafsa on the web

  • FIRST Program) with funds provided directly by the federal government., must register for a Personal Identification Number (PIN) at www.pin.ed.gov The PIN is available immediately. Student/parent may self select a number. PIN is used for all federal resources.

  • If the student is dependent for financial aid purposes: BOTH student and parent must each apply for their own PIN .

  • Go to www.fafsa.gov (not fafsa.com!)

To File FAFSA On The Web


FAFSA4caster Program) with funds provided directly by the federal government.

  • Free financial calculator that gives an early estimate of eligibility for federal student aid.

  • Can be completed by anyone who is not ready to file a FAFSA.

  • Once financial and other questions are answered, the tool displays  a worksheet to help student/parent determine the net cost of attending chosen school.

  • Important to remember that the FAFSA4caster is not an application for aid; it’s a planning tool. https://fafsa.ed.gov/FAFSA/app/f4cForm?execution=e2s1


FAFSA4caster Program) with funds provided directly by the federal government.


Financial aid package

Financial Aid Package Program) with funds provided directly by the federal government.


What happens after the school receives the fafsa

What happens after the school receives the FAFSA


Packaging awarding processObjectives

  • Finding the best combination of aid to meet a student’s financial need given limited resources and constraints

  • Distribute resources fairly and equitably

  • Set realistic self-help expectations

  • Offer relevant work experience

  • Recruit students


Considerations in Packaging awarding process

  • Type and amount of funds available

  • Institutional priorities

  • Length of academic year

  • Cost of attendance

  • Community service

  • Programs requirements

  • Student’s year in school

  • Academic major

  • Availability of other resources

  • Debt level of students

  • Family financial strength

  • Enrollment for multiple start dates


Construction of the financial aid package

  • Generally speaking, a college will construct a financial aid package in this order:

    • 1st: gift aid from the federal and state programs for which a student is eligible;

    • 2nd: college and/or private donor gift aid (can include non-need based aid); and

    • 3rd: self-help programs (loan and work) are added last.

  • But, each college will have its own packaging philosophy, subject to aid program regulations and availability of funds

Construction of the Financial Aid Package


No matter how good the financial aid package

  • If a package in this order: “full-ride” package is presented to a student for a college which is not a good personal fit or does not offer the academic programs in which the student is interested, the “economics” at play may lead the student to accept that package and enroll at the college anyway.

  • An unhappy student is not likely to complete the term and that is time and money that can not be recovered.

No Matter How Good The Financial Aid Package…..


Searching for scholarships

Searching for Scholarships package in this order:


Scholarship Sources package in this order:

  • Institutional

  • Federal

  • State

  • Private


Federal Sources package in this order:

  • U.S. Department of Education

    • www.students.gov

      • Click “Scholarship Searches”

  • U.S. Department of Health and Human Services

    • http://www.hrsa.gov/loanscholarships/index.html

  • U.S. Armed Forces

    • http://aid.military.com/scholarship/search-for-scholarships.do


State Sources package in this order:

  • Check with your state’s financial aid division

  • For Indiana, Division of SFA – Grants and Scholarships Overview

    • http://www.in.gov/ssaci/2359.htm

  • For more information on the grant/scholarships offered by SFA:

    • Contact SFA’S office at [email protected]

    • Or call 317-232-2355 or 1-888-528-4719


Private sources

  • Foundations package in this order:

  • Community organizations and civic groups

  • Religious or ethnicity-based organizations

  • Local businesses and employers

  • Organizations related to student’s field

Private Sources


Private Scholarship Search Sites package in this order:

Free Internet scholarship search engines:

  • FastWeb: www.fastweb.com

  • College Board: www.collegeboard.com

  • CollegeNet: www.collegenet.com/mach25


Avoiding financial aid fraud

Avoiding Financial Aid Fraud package in this order:


Fraud Warning Signs package in this order:

  • “Buy now or miss this opportunity”

  • “We guarantee you’ll get aid”

  • “I’ve got aid for you; give me your credit card or bank account number”

  • Social Media messages that may be too good to be true


Common Fraud/Scam Complaints package in this order:

  • Paying for “guaranteed financial aid” and not receiving as much aid as you paid for

    • Remember that loans are considered financial aid

  • Paying to file the FAFSA

    • Always remember the first “F” in FAFSA stands for “Free”

    • Make sure you use www.fafsa.gov


Resources for Avoiding Financial Aid Fraud package in this order:

  • Knowledge

    • Awareness of free resources prevents fraud/scam opportunities

  • US Department of Education Website

  • Federal Trade Commission Website

  • Office of the Inspector General hotline

  • Institution’s Financial Aid Office


Knowledge package in this order:

  • College Goal Sunday

    • Free, on-site professional assistance completing the FAFSA

    • Typically held in February

    • Nationwide

    • www.collegegoalsundayusa.org

  • ISFAA Financial Aid Nights

    • Regional Coordinators

    • Check w/ your state or region for FA associations


Federal Resources package in this order:

  • US Department of Education Website

    • www.ed.gov/misused

  • Federal Trade Commission Website

    • http://www.ftc.gov/bcp/edu/microsites/scholarship/index.shtml

  • Office of the Inspector General hotline

    • 1-800-MIS-USED


Common websites phone numbers or reference materials available

  • Federal Student Aid Information for Counselors package in this order: http://www.fsa4counselors.ed.gov/PORTALSWebApp/cotw/main.jsp

  • Federal Student Aid Information (General Public)

    http://studentaid.ed.gov/

  • 2012-2013 FAFSA on the Web Worksheet (Available in Spanish and in Braille) Order: www.FSAPubs.org or call 1-800-394-7084. Shipping will begin in October

  • 2012-2013 Free Application for Federal Student Aid (FAFSA) (Available in Spanish or Braille). Order: www.FSAPubs.org or call 1-800-394-7084

  • Counselors and Mentors Handbook on Federal Student Aid: A Guide for those advising students about Financial Aid for Postsecondary Education: Available to order NOW! Order: www.FSAPubs.org or call 1-800-394-7084

Common Websites/Phone Numbers or Reference Materials Available


Questions? package in this order:


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