CHOICES Applying for Financial Aid at James Madison University

1. CHOICESApplying for Financial Aidat James Madison University February 17, 2014

2. FAFSA The 2014-15 Free Application for Federal Student Aid (FAFSA) is the only application students at JMU need to complete to apply for all of the federal and state financial aid offered through the Office of Financial Aid & Scholarships That’s it! One form!

3. Financial Aid Process • Submit FAFSA (preferably before March 1st) • Receive Student Aid Report • Receive Preliminary Financial Aid Award Notice prior to May 1st • After May 1st receive Verification request and/or Official Financial Aid Award Notice • The process of sending Official Financial Aid Award Notices generally begins the middle to end of June • Submit required acceptance documents

4. 2014-15 FAFSA Priority Filing Date • March 1st, 2014 • This means your FAFSA should have been logged in at the federal processor by March 1st to be considered “on-time” • You can still complete a FAFSA after March 1st, but the funds available for awarding at that time could be limited

5. Importance of Priority Filing Date • In some cases, meeting the priority filing date can increase your eligibility for specific types of financial aid • Allows appropriate amount of time for processing before the 2014-15 school year begins

6. Professional Judgment • Unexpected issues not reflected on the FAFSA • Tuition expenses at an elementary or secondary school • Medical or dental expenses not covered by insurance • Unusually high child care costs • Job loss or unemployment • Parents enrolled at least half-time in a degree or certificate program • Roth IRA rollovers • Dependency overrides • Contact the financial aid administrator to discuss if these items can be considered in a Professional Judgment review • Issues such as credit card expenses, car payments, standard living expenses, and other “normal” daily items cannot be considered under Professional Judgment for federal and state aid purposes

7. PACKAGING 101

8. Cost of Attendance(2013-14 Figures) COMPONENTS • Tuition & fees • Room & board • Books & supplies • Transportation • Personal • Loan fees EXAMPLES • Full-time In-state • $22,740 • $17,816 = average billable • $4,924 = estimate • Full-time Out-of-state • $37,218 • $32,294 = average billable • $4,924 = estimate • Note: Average billable includes tuition/fees, room/board, & internet fee

9. EFC = Expected Family Contribution • The federal government determines a family’s ability to pay for post-secondary expenses (including living expenses) • The figure schools use to determine a student’s eligibility for need-based aid • EFC below $9,501 will be considered for state grants and Perkins, assuming other criteria are met as well

10. Definition of Need Cost of attendance (COA) – Expected family contribution (EFC) = Financial need

11. Sample Award Notice In-State (1) FAFSA Filed by March 1 22,740 COA - 100 EFC 22,640 Need 5,595 Pell Grant 5,625 VGAP Grant 3,500 Subsidized Direct Loan 1,000 Perkins Loan 2,030 Workstudy 2,000 Unsubsidized Direct Loan - 2,990 PLUS (includes EFC) = Fully Packaged FAFSA Filed after March 1st 22,740COA - 100 EFC 22,640 Need 5,595 Pell Grant 3,500 Subsidized Direct Loan 1,000 Perkins Loan 2,030 Workstudy 2,000 Unsubsidized Direct Loan - 8,615 PLUS (includes EFC) = Fully Packaged Note: These are provided for example purposes only, based on 2013-14 figures, and are not a guarantee of award amounts as VGAP, the Perkins Loan, and Workstudy eligibility are subject to funding availability and other criteria.

12. Sample Award Notice In-State (2) FAFSA Filed by March 1 22,740 COA - 9,600 EFC 13,140 Need 3,500 Subsidized Direct Loan 2,030 Workstudy 2,000 Unsubsidized Direct Loan - 15,210 PLUS (includes EFC) = Fully Packaged* *Even though applied by March 1st, no VGAP and Perkins because EFC is too high. FAFSA Filed after March 1st 22,740 COA - 9,600 EFC 13,140 Need 3,500 Subsidized Direct Loan 2,030 Workstudy 2,000 Unsubsidized Direct Loan - 15,210 PLUS (includes EFC) = Fully Packaged *Missed March 1st FAFSA date and EFC too high for VGAP and Perkins • Note: These are provided for example purposes only, based on 2013-14 figures, and are not a guarantee of award amounts.

13. Sample Award NoticeOut-of-State SAMPLE 1 37,218 COA - 100 EFC 37,118 Need 5,595 Pell Grant 3,500 Subsidized Direct Loan 2,000 Perkins Loan 2,030 Workstudy 2,000 Unsubsidized Direct Loan - 22,093 PLUS (includes EFC) = Fully Packaged SAMPLE 2 37,218 COA - 9,600 EFC 27,618 Need 3,500 Subsidized Direct Loan 2,030 Workstudy 2,000 Unsubsidized Direct Loan - 29,688 PLUS (includes EFC) = Fully Packaged • Note: These are provided for example purposes only, based on 2013-14 figures, and are not a guarantee of award amounts. Additionally, meeting the March 1st FAFSA Priority Filing Date does not provide a funding advantage in the awarding formulas, but does allow a Preliminary Financial Aid Award Notice to be sent in a timely fashion.

14. JMU Net Price Calculator • Get your Expected Family Contribution (EFC) by completing the FAFSA • Go to www.jmu.edu/finaid • Select “JMU Net Price Calculators” on the top bar • Answer the applicable questions • Receive an estimated award immediately

15. OTHER RESOURCES

16. Options • Personal savings • Investments (e.g., 529 plans, ESA’s, Mutual Funds, etc.) • Payment plans • Part-time employment • Grants (federal and state) • Scholarships (institutional and private) • Federal Loans (student and parent) • Private Loans (student and parent)

17. Loan Repayment Example • Dependent student beginning in 2013-14 and eligible for maximum Direct Loans for 4 years (assume student accepts the loans): • 1st year - $5,500 - no more than $3,500 subsidized (3.86%)* • 2nd year - $6,500 - no more than $4,500 subsidized (3.86%)* • 3rd year - $7,500 - no more than $5,500 subsidized (3.86%)* • 4th year - $7,500 - no more than $5,500 subsidized (3.86%)* • Total debt - $27,000 (aggregate maximum $31,000, no more than $23,000 subsidized) • Standard Repayment Plan is 10 year • $271/month in loan payments • $32,588 repaid over the 10 year period • $5,588 paid in interest • This does not include any capitalized interest, which will increase the cost *interest rates on all Direct Loans disbursed July 1, 2013 – June 30, 2014 are fixed at 3.86%. Rates on new loans will be set July 1, 2014.

18. Payment Plan Example(2013-14 figures) • Payment Plan (5 months per term) • Full-time, in-state, on-campus example • $8,908 per term / 5 months = $1,781.60 (make payment monthly) • Averages to $445.40 per week in a 4 week month (figure for budgeting purposes) • Full-time, out-of-state, on-campus example • $16,147 per term / 5 months = $3,229.40 (make payment monthly) • Averages to $807.35 per week in a 4 week month (figure for budgeting purposes) • Are there items you can reduce in your budget or debt you can eliminate before college to help “cash flow” some of this? • Car payments • Improve food budgets • Credit card or other consumer debt • Other sacrifices to make for next 4 years to avoid long term college loan debt (Opportunity Cost of debt) • See the University Business Office at www.jmu.edu/ubo for more details

19. Types of InstitutionalFinancial Aid Available • Institutional Employment • Off-Campus Employment • Scholarships (some may require a FAFSA be on file) Note: You will not see these on a Financial Aid Award Notice

20. Prospective Student Scholarships www.jmu.edu/scholarships • Admissions & University Departments • Thomas and KarynDingledine Scholarship for Achievement in Academics and Service • Madison Achievement Scholarships • Second Century Scholars Scholarship Program • Naquin Family Scholarship • Foundation Scholarships • Departmental Scholarships • Financial Aid • Sarah Lanier Tabb Oliver Scholarship • Private • Private Scholarship Search Engines

21. Scholarships and Financial Aid Important Note! • Receipt of scholarship funds from any source may reduce your eligibility for need based federal and state financial aid • Please use the Supplemental Information Sheet to inform the Office of Financial Aid & Scholarships as soon as you are aware you will receive a scholarship

22. Thomas and Karyn Dingledine Scholarship for Achievement in Academics and Service • Award amount is equivalent to full in-state tuition for four years at JMU • Generally five new students awarded each year • Early Action freshman application to JMU is required • Application and recommendations must have been postmarked no later than November 1, 2013 to be considered • Top candidates were notified no later than February 1, 2014 and invited to campus for an interview scheduled for mid-February • The final scholarship recipients will be mailed an award letter mid-March

23. Madison Achievement Scholarships • Award amounts are determined by the individual awarding department and can vary in amount from: • $2,000 to $5,000 per year, depending on department • No additional application is required for the Madison Achievement Scholarships, as students will be reviewed using their application for admission to JMU • Recipients will be notified in mid-April

24. Second Century Scholarships (STEM Majors) This program financially supports exemplary students entering any of the following STEM majors: • Biology • Biotechnology • Chemistry • Computer Science • Earth Science • Engineering • Geographic Science • Geology • Information Analysis • Integrated Science and Technology • Mathematics • Physics

25. Second Century Scholarships (STEM Majors) • The amount of the scholarship is set at 75 percent of in-state tuition of the year recipients enter the university and continues at this amount for the four consecutive years • Applications deadline is March 15, 2014 • Apply at http://www.jmu.edu/scholarships/propectstudents.shtml • Recipients will be mailed an award notice by mid-April • Potential applicants must meet the following criteria to apply for the SCS scholarship: • SAT 1200 or higher (ACT equivalent is 27) • GPA 3.5 or higher (performance in science, technology and mathematics courses will receive additional consideration) • Demonstrated interest and commitment to study in a STEM area • Declaration of major in a designated STEM area

26. Private Scholarships • Private scholarships can originate from any non JMU source • You can find some private scholarship searches at www.jmu.edu/scholarships • If you receive a private scholarship, complete an online Supplemental Information Sheet to inform the financial aid office regarding your good fortune • According to state and federal regulations, we must consider outside sources of financial assistance when awarding aid

27. AWARDNOTICES

28. Types of Financial Aid Available(FAFSA Related) • Federal Grants (Pell SEOG) • State Grants (VGAP and CA) • University Grants • Federal Loans (Direct Loans, Perkins Loan & Parent PLUS Direct Loan) • Federal Work-Study Note: You will see these on a Financial Aid Award Notice

29. Preliminary Financial Aid Award Notice • E-mailed to the same e-mail address Admissions used to notify the student of his/her acceptance to JMU • This is an estimate, as the 2014-15 tuition/fees and room/board figures were not set at the time the award was generated • Students and parents cannot accept aid based on this notice • Verification has not been conducted

30. Preliminary Financial Aid Award Notice • The notice will contain tentative eligibility for aid from: • Federal aid programs • State aid programs • JMU scholarship notifications typically come from individual campus departments

31. After May 1, 2014 • Preliminary financial aid awards will be canceled • New JMU students will receive: • Verification request to secure additional information to complete a final FAFSA review (generally in May), or • Official Financial Aid Award Notice (generally begins around the middle to end of June)

32. If information is needed to verify elements on the FAFSA, then JMU will request it Examples: Verification Worksheet Federal tax forms W-2’s Loan Applications Master Loan Promissory Notes Other Additional Information

33. Official Financial Aid Award Notice • Beginning in the middle to end of June, eligible students will be awarded and sent an Official Financial Aid Award Notice • These notices are sent electronically to the student’s JMU e-mail address (note the change from the Preliminary process) • Parents will receive a separate notice regarding Parent PLUS Direct Loan eligibility • These notices are sent to the parental e-mail address listed on the FASFA • Each notice will contain instructions for how to accept or decline the offered aid • Students will do this through MyMadison • Parents will do this through the www.jmu.edu/finaid web site

34. CLOSING ITEMS

35. Subsequent Years • The FAFSA must be filed each year for need-based scholarships • Scholarships for continuing JMU students are typically awarded through: • Academic departments, and • Office of Financial Aid & Scholarships • Application procedures may vary by department • Scholarship applications are required for the Office of Financial & Scholarships

36. Communication • The majority of communications (e.g. letters, e-mails, etc.) sent from our office are sent directly to students, not parents • The primary means of communicating with students are through their JMU e-mail and MyMadison accounts

37. Helpful Tools www.jmu.edu/finaid • Click on “Prospective Students” • Click on “Freshmen Checklist” • Click on “Financial Aid Timeline” • Click on “Choices – Financial Aid Presentation” (February) • Click on “JMU Terms & Conditions for Financial Aid – Consumer Information” • Many other options available

38. Questions If you have any questions, please do not hesitate to contact our office via one of the following methods: • In person at our 3rd floor counter in Warren Hall • By phone at (540) 568-7820 • By e-mail at fin_aid@jmu.edu • On the web at www.jmu.edu/finaid

39. Happening on CHOICES DAY FEBRUARY 17th! Smooch the Pooch for good luck at JMU! There will be free bumper stickers! Sponsored by The Madison Society 1:10 - 3:00 @ The Duke Dog Statue #jmusmoochthepooch