2014-15 What you need to know about Financial Aid

1. 2014-15 What you need to know about Financial Aid 14-15 FA Night

2. Topics • Free Application for Federal Student Aid (FAFSA) • IRS Data Retrieval Tool • Special Circumstances • Cost of Attendance and EFC • Categories, types, and sources of financial aid

3. FAFSA Deadlines • Collects family’s personal and financial information used to calculate student’s EFC • 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 • Completed each year after January 1st • However, most W-2s will not be available until the end of January • Use IRS Data Retrieval to download income information from your 2013 Federal Tax Return • IRS will not start accepting and processing the Federal Tax Forms until sometime between January 28 and February 4, 2014. • From what we hear IRS Data Retrieval will be available starting February 2, 2014 • If the student and parent file electronically, IRS Data Retrieval would be available 2 weeks after they filed • If the student and parent file by paper, IRS Data Retrieval would be available 6-8 weeks after they filed

4. PIN Registration • 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

6. Student Login

7. Chose the 2014/15 Year

17. FAFSA Modifications (cont’d) Definition of Marriage: • For both students and parents-marriage now includes a same sex couple who are married under the authority of a state (or foreign country) that permits same-sex marriage, even if the state (or foreign country) in which they now live does not recognize same-sex marriage.

18. Marital Status • Never Married • Unmarried and both parents living together • Biological Parents or Same Sex Parents (regardless of state authority related to marriage) should use this response if appropriate • Married or Remarried • Divorced or Separated • Widowed

19. Who is a Parent? • Biological parents • Adoptive parents • Stepparents, if they are married to the student’s biological or adoptive parent and the student is included in their household size

20. Who Is NOT a Parent? • Foster parents • Legal guardians who have not adopted the student • Relatives who have not adopted the student • Stepparents who have not adopted the student and who would be the only person providing parental information

23. IRS Data Retrieval Tool • While completing FAFSA, student and parent may submit real-time request to IRS for tax data • IRS will authenticate taxpayer’s identity • Need to remember the exact address and spelling of names on the Federal Tax Return • If match found, IRS sends real-time results to applicant in new browser window • Applicant chooses whether or not to transfer data to FAFSA • Available early February 2014 for 2014–15 processing cycle • Participation is voluntary • Reduces documents requested by financial aid office

24. Cannot Use IRS Data Retrieval • A student or parent who cannot remember the address used on their 2013 Federal Tax Return. • Marital Status-Unmarried and both parents living together • A married student or married parents who did not file joint returns but instead filed separate tax returns • A married student or married parent who files as Head of Household is not eligible to use the IRS Data Retrieval tool • This would mean they filed separate tax return • However, a single student or single parent who files as Head of Household is eligible to use the IRS Data Retrieval tool • A student or parent(s) who had a change in marital status after December 31, 2013 • The student or parent(s) filed and amended tax return

25. IRS Data Retrieval Tool Available • Students and parent can start completing their FAFSA • In order to use the IRS Data Retrieval Tool the Federal Tax Return has to be completed and processed by the IRS • However, most W-2s will not be available until the end of January • IRS will not start processing the Federal Tax Forms until sometime between January 28 and February 4, 2014. • If the student and parent file electronically, IRS Data Retrieval would be available 2 weeks after they filed • If the student and parent file by paper, IRS Data Retrieval would be available 6-8 weeks after they filed • From what we hear IRS Data Retrieval will be available starting February 2, 2014

31. Both Student and Parent Sign

32. Confirmation Page • Confirmation Number • Data Release Number (DRN) • EFC estimate • Pell Grant and Direct Loan estimates • Option for parents to transfer parent’s info to another application for another child • Option for some states to apply for State Grant

33. 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 • Paper SAR sent if no student e-mail provided • Student with FSA PIN can view SAR online at www.fafsa.gov • Students should review SAR data for accuracy and correct any errors • Required to update estimated tax information when actual figures become available

34. FAFSA Processing Results (cont’d) • Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA is submitted • College reviews ISIR • May request additional documentation: • Verification • proof of homelessness or ward of the court status • proof that a sibling is enrolled in college • Will generally not send you an award letter unless an Admissions Application has been submitted

35. Making Corrections Students should only correct information that was reported incorrectly when he or she completed the FAFSA Corrections to FAFSA data may be made by: • Using FAFSA on the Web (www.fafsa.gov) if student has a FSA PIN • Updating and mailing paper SAR • Submitting documentation to school’s financial aid office • Corrections required if “estimated income” used for initial filing

36. Special Circumstances: Basics • Institutions will call it either Special Circumstances or Professional Judgment • Families cannot report special circumstances on the FAFSA • Professional judgment exercised after the family files the FAFSA and completes verification (if required) • Professional judgment exercised by the financial aid administrator

37. Special Circumstances • Dependency Override • Abuse at home • Abandonment by parents • Parents Refuse to Provide Information • Student only eligible for Unsubsidized Loan • Income Reduction • Non-Recurring Income • Unusually High Day Care Expenses • Unusually High Medical or Dental Expenses

38. Documentation will be Required • Each Institution has their own process • Institutional Forms • Documentation from third party: • Teacher • Social worker • Member of clergy • Court • Law enforcement

39. FAFSA Completion Resources • www.fafsa.gov • Completing the FAFSA available at: http://studentaid.ed.gov/fafsa • 2014/15 FAFSA on the Web Worksheet: http://studentaid.ed.gov/sites/default/files/2014-15-fafsa-worksheet.pdf

40. Cost of Attendance (COA) Direct Cost + Indirect Cost = COA • Direct costs • Tuition • Fees • Books • Room and Board if On Campus • Indirect costs • Room and Board if Off Campus or With Parent • Transportation • Personal Expenses • COA varies widely from college to college

41. Expected Family Contribution (EFC) • www.fafsa4caster.ed.gov • An index used to calculate eligibility for aid • Stays the same regardless of college • Two components –Parent contribution –Student contribution • Calculated using FAFSA data and a formula specified in law

42. Financial Need Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need

43. Reviewing and Comparing Award Letters • Mix of grants and self-help aid • Future award packages

44. Types of Aid • Gift Aid • Scholarships • Money that does not have to be paid back • Awarded on basis of merit, skill, or unique characteristic • Grants • Money thatdoes not have to be paid back • Usually awarded on the basis of financial need

45. Types of Aid (cont’d) • Self-Help Aid • Federal Work Study • 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

46. Federal Pell Grant The Federal Pell Grant Program provides need-based grants to low-income undergraduate students. Grant amounts depend on the student’s: • Expected Family Contribution (EFC) • Enrollment status (full or part-time) • Attendance status (full academic year or less) • Pell Grant maximum award per academic year: $5,645 (2013-2014) * Maximum award may be subject to change pending legislative budgetary adjustments

47. FSEOG The Federal Supplemental Educational Opportunity Grant (FSEOG) Program provides need-based grants to low-income undergraduate students (campus-based aid). Grant recipients must be: • Pell Grant-eligible • Current award amounts are from $100 - $4,000 • Not all colleges participate in the FSEOG program and funds depend on availability at the college

48. TEACH Grant The Teacher Education Assistance for College and Higher Education Grant Program (TEACH) provides assistance to students who intend to teach in a public or private elementary or secondary school that serves students from low-income families. Grant recipients must be: • Enrolled in an institution that participates in the TEACH Grant Program • Enrolled in coursework that is necessary to being a career in teaching • Able to demonstrate certain academic achievements

49. TEACH Grant (cont’d) The Teach Grant: • Is not based on financial need • Is available to both undergraduate and graduate students • Provides the following maximum award $4,000 (2013-14) TEACH Grant recipients must sign an ‘Agreement to Serve’ which states that the student will: • Teach at least four years in a public or private elementary or secondary school • Teach full-time in a high-need field • Teach in a school that serves students from low-income families • If the teaching obligation is not completed, the entire TEACH Grant must be repaid as a Direct Unsubsidized Stafford Loan

50. Iraq/Afghanistan Service Grant Students whose parent or guardian died as a result of military service in Iraq or Afghanistan after September 11, 2001, may be eligible for additional Title IV aid. Additional Student Eligibility Requirements: • Less than 24 years old • Enrolled in college at least part-time at the time of the parent’s or guardian’s death