Financial Aid for College 2013 - 2014

1. Financial Aid for College2013 - 2014 Financial Aid Presentation NCASFAA/ NCSEAA

2. Scope of this Workshop • What is financial aid • College costs • Determination of eligibility • Financial aid programs • How to apply for financial aid (FAFSA) and next steps Financial Aid Presentation NCASFAA/ NCSEAA

3. Types of Student Financial Aid • Grants • Scholarships • Loans • Employment Financial Aid Presentation NCASFAA/ NCSEAA

4. Student Financial Aid • Merit-based • academics • talent • athletic • others • Need-based • financial considerations Financial Aid Presentation NCASFAA/ NCSEAA

5. Sources of Financial Aid • Federal Government • State Programs • Institutional funds • Outside agencies Financial Aid Presentation NCASFAA/ NCSEAA

6. Need-based Aid Principles • Family is responsible for costs to the extent of its ability to pay college costs • Provides access and choice, but full costs and need are not always met • Aid is based on a “snapshot” of the family situation, not a video….. Financial Aid Presentation NCASFAA/ NCSEAA

7. Basic Formula for Aid Cost of Attendance (varies widely) Expected Family Contribution • Eligibility for Need-Based Funds - = Financial Aid Presentation NCASFAA/ NCSEAA

8. Direct College Costs • Tuition • Required fees • Room & Meal Plan if residence student • Books and Supplies Financial Aid Presentation NCASFAA/ NCSEAA

9. Indirect College Costs • Transportation • Miscellaneous personal expenses, including documented costs for a personal computer • Loan fees • Room & Meals if living off campus Financial Aid Presentation NCASFAA/ NCSEAA

10. Cost of Attendance Examples North Carolina Averages 2 Year Public 4 Year Public 4 Year Private $ 11,860 $16,643 $35,967 National Averages 2 Year Public 4 Year Public 4 Year Private $15,286 $21,447 $33,973 NC averages calculated by NCSEAA for 2011-12 academic year. National averages from College Board Financial Aid Presentation NCASFAA/ NCSEAA

11. Cost Saving Ideas • Tuition - compare • Room and Meals - conserve • Books and Supplies – shop around • Transportation – be creative • Personal expenses - budget • Most importantly, finish on time Financial Aid Presentation NCASFAA/ NCSEAA

12. What is the Expected Family Contribution (EFC)? • Amount family can reasonably be expected to contribute • Stays the same regardless of college • Two components • Parent contribution from income & assets • Student contribution from income & assets • Calculated using data from a federal application form and a federal formula Financial Aid Presentation NCASFAA/ NCSEAA

13. Examples of Financial Need 3 different students at 3 different schools: COA 9,000 15,000 30,000 -EFC 2,00018,0006,500 Need 7,000 (3,000) 23,500 Financial Aid Office helps with need-based aid towards need amount and non need-based aid toward remaining costs Financial Aid Presentation NCASFAA/ NCSEAA

14. Federal Aid Programs • Federal Pell Grant • Federal Supplemental Educational Opportunity Grant • Federal Work-Study • Ford Federal Direct Loan • Federal Perkins Loan • Federal TEACH Grant (loan) Financial Aid Presentation NCASFAA/ NCSEAA

15. North Carolina Aid Programs (partial listing) • NC Community College Grant • UNC Need-Based Grant • NC Education Lottery Scholarship • NC Need-Based Scholarship • Forgivable Education Loan for Service (NC FELS) • NC REACH Financial Aid Presentation NCASFAA/ NCSEAA

16. Institutional Aid Grants & Scholarships Loan Programs Student Employment Outside Agencies Local Organizations Churches Civic Groups Parents’ Employers Veterans Administration Institutional and Outside Aid Financial Aid Presentation NCASFAA/ NCSEAA

17. Scholarship Sources • Internet searches: • www.cfnc.org • www.finaid.org • www.fastweb.com • https://bigfuture.collegeboard.org/ • High school counselor • College website Financial Aid Presentation NCASFAA/ NCSEAA

18. What about Federal Loans? • Federal Direct Subsidized and Unsubsidized Loans • 3.4% for subsidized for 2012-13 • 6.8% for unsubsidized • Federal Perkins Loans—5% • Federal Direct PLUS Loans – 7.9% • Parents of dependent students • Graduate or professional students Financial Aid Presentation NCASFAA/ NCSEAA

19. Is that all there is? • Private alternative loans for students or parents • Last resort--Always apply for federal loans first! • College payment plans • American Opportunity Credit, Lifetime Learning Credit, Tuition & Fees Deduction, Student Loan Interest Deduction Financial Aid Presentation NCASFAA/ NCSEAA

20. Applying for Financial Aid • Meet earliest deadline of colleges in which you are interested • Complete all questions accurately • Estimate if necessary to meet early deadlines • Don’t wait until you are admitted to file the FAFSA • Keep a FA Folder of all documents for your records Financial Aid Presentation NCASFAA/ NCSEAA

21. Applying for Federal Financial Aid • Free Application for Federal Student Aid (FAFSA) • File the FAFSA at www.fafsa.gov • 99.99% of forms are filed online! • Can download worksheet if needed • Can obtain paper form: 800-4-FED-AID (1-800-433-3243) • Complete FAFSA after January 1, 2013 for the 2013-2014 academic year • Results available online in approx. 48 hours and then sent to the colleges you list on the FAFSA Financial Aid Presentation NCASFAA/ NCSEAA

22. What is a PIN? • What is a Personal Identification Number (PIN)? • Issued to an individual and is a “signature” for Federal Student Aid purposes • Faster than using paper signature • PIN will expire if not used for 18 consecutive months • Parent’s PIN may be used for multiple children • Each student must have own PIN • Obtain PIN from www.pin.ed.gov Financial Aid Presentation NCASFAA/ NCSEAA

23. IRS Data Retrieval Tool (within FAFSA) • Starts in late February 2013 • Available within 2-3 weeks of electronic tax filing • Available within 8 weeks for paper tax filers • Available to those who have filed taxes and now are: • Completing the FAFSA • Correcting their FAFSA (updating with IRS data) • Does not apply to • Married but file taxes separately • Married, but file taxes Head of Household • Marital status changed after 12/31/12 • Those filing amended or foreign tax returns

24. IRS Data Retrieval Tool • To use the Tool, must have: • A valid Social Security Number and • Filed a 2012 federal tax return • The exact street address used on the tax return! • Filtering question on FAFSA helps determine if you can use • IRS Data Retrieval Process meets verification requirements • Secure and FAST option • Students (and parents) not using the “Tool” and selected for verification: • In most cases, must submit an IRS Tax Return Transcript rather than a Tax Return

25. Applying for Financial Aid • Other forms ??? • Institutional application • College Scholarship Service PROFILE • State applications • Outside scholarship applications Financial Aid Presentation NCASFAA/ NCSEAA

26. Dependency • Students are independent if: • 24 years old or older • Orphan, foster child/ward of the State • Have children or other dependents for whom they provide more than 50% support • Were legally emancipated or have a legal guardian as established by a court of law before turning 18 • Married • Veteran or on active duty • Graduate students • Homeless or at risk of homelessness Students not meeting one of the above must include parental information for full aid consideration. Financial Aid Presentation NCASFAA/ NCSEAA

27. Who Are Considered Parents on the FAFSA? • Parents living and married to each other • Parent widowed or single • Parents divorced or separated—answer questions for parent • with whom student lived more during past 12 months • If student lived with each parent exactly the same amount • of time, answer for the parent who provided more • financial support during the past 12 months or during the • most recent year that the student actually received • support from a parent • If parent remarried, answer about that parent and the • person whom parent married (stepparent)

28. Who Are NOT Considered Parents on the FAFSA? • Foster parents • Legal guardians who have not adopted the student • Relatives, such as grandparents, who have not adopted the • student • Stepparents who have not adopted the student and the natural parent in the household is deceased. Must use remaining biological/adoptive parent, if any.

29. Dependent Student Special Circumstance If parents refuse to complete FAFSA: • Talk to financial aid office about exact circumstances. • Student may be allowed to submit the FAFSA without parental information. • Some students may only be eligible for an UNSUBSIDIZED Loan. Financial Aid Presentation NCASFAA/ NCSEAA

30. Before Beginning a FAFSA • Gather the documents you need—tax returns, bank statements, SSNs, college list • Print a FAFSA on the Web Worksheet if desired (optional) • Apply for a PIN now for student and parent Financial Aid Presentation NCASFAA/ NCSEAA

31. FAFSA on the Web’s Homepage

32. Student Section (one screen) Financial Aid Presentation NCASFAA/ NCSEAA

33. Parent Section (one screen) Financial Aid Presentation NCASFAA/ NCSEAA

34. Message for Applicants Who Indicate They “Will File” Their Taxes

35. IRS Data Retrieval ToolFiltering Question Financial Aid Presentation NCASFAA/ NCSEAA

36. Signing the FAFSA • After completing the FAFSA, student and parent (if dependent) must sign by: • Entering PIN • Both student and one parent should each have PINs OR • Print signature page, sign and mail to address provided within 7 days Financial Aid Presentation NCASFAA/ NCSEAA

37. Sign the Application and Submitby clicking “Submit My FAFSA Now” The Sign & Submit page includes the signature process for the student

38. Save Your Confirmation Page • Next steps • EFC estimate • Pell Grant & Direct Loan estimates

39. Saturday, February 23, 2013 Any time between 9 a.m. and noon in most locations Get FREE help completing your FAFSA from college financial aid officers. Visit CFNC.org/fafsaday or call toll-free at 866-866-CFNC (2362) to: Learn more Find closest location Register for FAFSA Day Sponsored by: College Foundation of North Carolina North Carolina Association of Student Financial Aid Administrators, and State Employees Credit Union Need Help?FAFSA Day 2013 Financial Aid Presentation NCASFAA/ NCSEAA

40. What happens after I file the FAFSA? • Complete verification if required. • Respond to any questions from the campus aid office. • Receive financial aid notification. • Reply if asked to aid offers (and admission). • Complete promissory note if borrowing money. • Notify campus of outside scholarships. Financial Aid Presentation NCASFAA/ NCSEAA

41. Verification • School may be required to request additional documentation for VERIFICATION of information • Most common items: • Requirement to go back and use IRS Data Retrieval Tool or provide IRS Tax Return Transcript • Listing of number in household and in college • Untaxed Income – only if reportable on the FAFSA • Confirmation of SNAP benefits or child support paid Financial Aid Presentation NCASFAA/ NCSEAA

42. Student Responsibility • Review initial Student Aid Report for accuracy and correct any errors, or contact school if unsure • Find out if your school requires other application materials such as CSS Profile • Respond promptly to school’s request for information • Read thoroughly award package, and take follow up steps, if required Financial Aid Presentation NCASFAA/ NCSEAA

43. Other Eligibility Criteria • Men over 18 must register with Selective Service if not selected on FAFSA • Student must be a U.S. citizen or eligible non-citizen • Student must not have a drug conviction while receiving federal aid • Students must make Satisfactory Academic Progress to continue receiving aid Financial Aid Presentation NCASFAA/ NCSEAA

44. Special Circumstances • Eligibility is based on the federal rules using prior year income, and assets at time FAFSA is filed • Contact school’s Financial Aid Office to discuss changes or issues such as: • Change in employment status • Unusually high medical expenses • Inability to get parent information • College will request additional documentation and make a decision about how to handle • Decisions made at each school are final Financial Aid Presentation NCASFAA/ NCSEAA

45. Offers to help get aid are everywhere: • In the mail • Over the Internet • In newspapers • In magazines • Over the phone Financial Aid Presentation NCASFAA/ NCSEAA

46. How do you identify offers that should be avoided? • Organizations that offer to locate more aid and then charge you a fee • Anyone who charges you a fee: • for information about financial aid • to complete the FAFSA • to apply/receive a scholarship • Organizations that guarantee you will get a scholarship or aid. Financial Aid Presentation NCASFAA/ NCSEAA

47. Where can you find trulyfree information about financial aid? • Contact College Foundation of North Carolina at CFNC.org or toll free at 866-866-CFNC • Service of the State of North Carolina • Talk to the college financial aid administrator • Ask your high school counselor • Visit the local library • Apply for federal financial aid at FAFSA.gov • (notice it is not FAFSA.com!) Financial Aid Presentation NCASFAA/ NCSEAA

48. Additional Information • College Foundation of North Carolina • www.cfnc.org • Federal Department of Education • http://studentaid.gov/ • Student Financial Aid for North Carolinians • www.cfnc.org/fabook • The Smart Student Guide to Financial Aid • www.finaid.org Financial Aid Presentation NCASFAA/ NCSEAA

49. Learn Good Financial Habits • Financial Literacy Information • www.cfnc.org Financial Aid Presentation NCASFAA/ NCSEAA

50. Summary • Aid available from multiple sources • Get your taxes done before March, if possible! • Pay attention to all deadlines • More important now than ever • School and scholarship deadlines • Use www.fafsa.gov to complete, sign and submit application. Financial Aid Presentation NCASFAA/ NCSEAA