Financial Aid from A-Z

1. Financial Aid from A-Z Presented by: Sandy Neel Director Financial Aid University Of Tennessee-Martin

2. A= Application Process • Free Application for Federal Student Aid • Collects family’s income, asset, other information to complete Need Analysis Process • FAFSA on the Web • Paper FAFSA

3. B = Budget • Used interchangeably with Cost of Attendance • Includes- Tuition and Fees, Room, Board, Books and Supplies, Travel, and Miscellaneous expenses. • Can include – Study Abroad Cost. Costs Associated with a Disability, Computer Cost, Child/Elder Care Expenses, CO-OP expenses, Disability-related cost, Fees for 1st professional credentials, and loan fees. Categories are defined by ED.

4. C= Campus Based Programs Administrative Requirements SEOG, FWS, & Perkins -Reasonable portion Criterion (independent and part-time students) • Matching Requirements (75%-25%) • Transferring Funds Between Programs (25%) • Administrative Cost Allowance • Carry Forward and carry back (10% SEOG & FWS)

5. C= CCRAACollege Cost Reduction and Access Act • Signed by President on 9/27/07 Increases Pell by: $490 for 08-09 & 09/10 ($4800) $690 10-11 & 11-12 ($5000) $1,090 12-13 ($5400) These funds are appropriated so congress could add additional funds to Pell when they go through their yearly appropriations bills.

6. C- Continued • Created the TEACH Grant for 2008-09. This is a revertible grant which means if the student does not teach Math, Science, Foreign Language, or other high need field in a Title I school, then must be repaid as a Direct Unsubsidized loan. • Aggregate limit is $16,000

7. C-continued • Adds to independent student definition: • Is in foster care or ward of court status at any time when the individual is 13 years of age or older • Is an emancipated minor, or is in a legal guardianship • Has been verified as an unaccompanied youth who is a homeless child or youth

8. D = Department of Education • Created in 1980 ED's mission is to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access. ED's 4,500 employees and $71.5 billion budget are dedicated to: • Establishing policies on federal financial aid for education, and distributing as well as monitoring those funds. • Collecting data on America's schools and disseminating research. • Focusing national attention on key educational issues. • Prohibiting discrimination and ensuring equal access to education.

9. E = EFC Expected Family Contribution The amount of money a family can reasonably expect to contributed toward the students education. This is determines through a process called Need Analysis/Federal Methodology

10. F = FISAP • FIScal Operations report and APplication to Participate The FISAP must be completed for your school by October 1st of each year to: • be allocated funds for the campus-based programs for the next award year, • report cumulative activity in the Federal Perkins Loan Program, and • report on the expenditure of any campus-based program funds in the completed award year. • You must also complete and submit a FISAP if you wish to discontinue participation in the Federal Perkins Loan Program.

11. G = Grants • Pell- the foundation of all aid programs. Quasi-entitlement but must go through appropriations each year. Need based. • ACG- For 1st and 2nd year students who completed a rigorous HS program. • SMART- For 3rd and 4th year students in eligible program • SEOG- Campus based must be awarded to neediest students

12. H - HERA Enacted February, 2006 • Created two new grant programs- ACG and SMART • Changed Drug Conviction question • Made Active Duty Military Independent • Redefined a week • Changed the 50% rule for telecommunication courses • Changed SNT and Auto Zero • Changed how Educational Savings plans are counted • Changed R2T4 calculations

13. I = ISIR • Institutional Student Information Record • Output document from FAFSA • Provides EFC • Comment Codes

14. J= Judgment of the Professional Kind • Authority given the Financial Aid Administrators by HEA to exercise their discretion in specific areas in FA administration. Provides flexibility to deal with unique circumstances affecting individual students Allows for personal intervention when needed Enables FAA to respond appropriately to student's individual circumstances that were not anticipated in legislation or regulation.

15. K= KY State Programs • KEES • CAP • KTG • KHEAA Work-Study • KHEAA Teacher Scholarship

16. L= Loans • Perkins – Campus based 5% interest loan, 9 months grace period, Teacher, nursing and law enforcement forgiveness. Schools no longer receive FCC • FFEL/Direct Stafford subsidized and Unsubsidized • PLUS/Grad PLUS • Alternative Loans With loans, schools can not delay processing for students using lenders not on their list and schools can not set arbitrary deadline dates for application. These date are set by law.

17. M=Management of Cash Effective cash management ensures that: • Only eligible students receive Title IV funds • Students receive money when needed • Title IV loan interest does not accrue needlessly • Overawards and overpayments are avoided • Institutional fiscal needs are met Funds drawn down: Advanced method, Just-in-time, Reimbursement, Cash Monitoring • Excess federal cash is not held by school • Accounting and audit trails are clear

18. N= Neg-Reg Negotiated Rulemaking of Regulations • Mandated by the Higher Education Act • All rules implementing change to HEA or revisions to regulations go through this process • an advisory committee made up of disparate interest groups negotiates the terms of an administrative rule and proposes it to an ED

19. O= Over Awards • Aid that exceeds student’s financial need • Occur when there are changes to EFC, COA, or additional financial assistance received • $300 tolerance with campus based aid but no tolerance with FFEL or Direct loans

20. P= Participation Agreement A school must be certified by ED to participate in any FSA programs. This is done through the E-APP Checks three major factors: institutional eligibility, administrative capabilities, and financial responsibilities Schools usually eligible for 6 years Must update when certain changes occur

21. Q = Quality Assurance MissionQuality Assurance helps schools Attain, Sustain, and Advance exceptional student aid delivery and service excellence School develop their own process of verification instead of using the verification process prescribed ED

22. R= Reauthorization • The Higher Education Act of 1965, as Amended is reauthorized every 5 years. Last Reauthorization was done in 1998. Should have been done in 2003. Originally enacted as part of President Johnson’s Great Society” programs - Authorizations “sunset” and must be renewed • Authorizes virtually all Federal Higher Education Programs

23. S = Satisfactory Academic Progress • Qualitative – work completed and grades • Quantitative- Maximum time frame in which student must complete a degree. Must be consistently applied to all students. The policy must address the effect of course repetition, remedial classes, incompletes, and withdrawals Procedures for appealing SAP and regaining eligibility must be provided,

24. New Professionals FSA Coach – on-line very basic training Financial Aid Basics- held at regional training sites. More in-depth 3 day workshop Web Demo: FAFSA on the Web and FAA Access to CPS Online FISAP Webinar EFC Training-instructor led on-line training NSLDS Aggregate Loan Calculation NSLDS Overview Training Applicant Data Resolution FSA Conference T= TFAPTraining for Financial Aid Professionals

25. U = Unsubsidized Stafford Loan • Government does not pay the interest while student is in school. Student can choose to pay the interest or have it capitalize. Principle balance is deferred until 6 months after graduation.

26. V= Verification • 30% of population must be verified. Selected by CPS or School. • Required verification data elements: • Number in household • Number in college • Adjusted Gross Income • U.S. Income tax paid • Certain untaxed income and benefits

27. IFAP.ed.gov FSA4Schools.ed.gov FAFSA.ed.gov FAFSA4caster.ed.gov Mapping-your-future.org KHEAA.com GoHigherKY.org KASFAA.com SASFAA.org NASFAA.org W= Web sites

28. X- XAP • Powers the Go Higher KY website

29. Y= YOU • Financial aid is a noble profession. You make a difference in student lives! IT’S KIND OF FUN TO DO THE IMPOSSIBLE. - Walt Disney

30. Z = Zip Decision • For PLUS and Grad PLUS at KHEAA’s Website