financial aid overview. agenda kasfaa financial aid overview financial aid overview aid programs...

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Financial Aid Overview Financial Aid Overview


AGENDAAGENDA

•KASFAA•Financial Aid OverviewFinancial Aid Overview

Aid ProgramsAid Programs•FAFSAFAFSA

Filing the FAFSA Filing the FAFSA Dependency statusDependency status Special CircumstancesSpecial Circumstances Processing the FAFSA Processing the FAFSA VerificationVerification

•Resources for Counselors and StudentsResources for Counselors and Students

Kentucky Association of Kentucky Association of Student Financial Aid Student Financial Aid AdministratorsAdministrators

Our mission is to pledge support to professional Our mission is to pledge support to professional activities and communications in all areas concerned activities and communications in all areas concerned with the administration of student educational with the administration of student educational financing programs programs

Upcoming EventsUpcoming Events–High School Workshop, 10 sitesHigh School Workshop, 10 sites–KET/Financial Aid Call In Show – KET/Financial Aid Call In Show – JanuaryJanuary–College Goal Sunday, 16 sites – Jan. College Goal Sunday, 16 sites – Jan. 1313

College Goal SundayCollege Goal Sunday

January 13, January 13, 20132013

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FINANCIAL AID OVERVIEWFINANCIAL AID OVERVIEW


Financial Aid IncludesFinancial Aid Includes

ScholarshipsScholarships GrantsGrants Work-StudyWork-Study LoansLoans

Sources of Financial Sources of Financial AidAid

Federal governmentFederal government State governmentState government CollegesColleges Private sourcesPrivate sources

FEDERAL AID PROGRAMSFEDERAL AID PROGRAMS


Federal Aid ProgramsFederal Aid Programs

Aid awarded primarily on the Aid awarded primarily on the basis of financial needbasis of financial need

Students must apply every year Students must apply every year using the Free Application for using the Free Application for Federal Student Aid (FAFSA)Federal Student Aid (FAFSA)

Federal Pell GrantFederal Pell Grant

– Need-based grantNeed-based grant– Available to undergraduate students Available to undergraduate students

who have not received a bachelor’s who have not received a bachelor’s or first professional degree or first professional degree (exception for teacher certification (exception for teacher certification students)students)

TEACH GrantTEACH Grant

Teacher Education Assistance for Teacher Education Assistance for College and Higher Education GrantCollege and Higher Education Grant– For undergraduate, post-baccalaureate, or graduate For undergraduate, post-baccalaureate, or graduate

students who are/will be taking course work necessary students who are/will be taking course work necessary to become elementary or secondary teachersto become elementary or secondary teachers

– Must attend a participating college and meet certain Must attend a participating college and meet certain academic achievement requirements academic achievement requirements

– Must agree to serve, for a minimum of four years Must agree to serve, for a minimum of four years (within eight years of completing academic program), (within eight years of completing academic program), as a full-time teacher in a high-need field in a school as a full-time teacher in a high-need field in a school that serves low-income students that serves low-income students oror TEACH Grant TEACH Grant reverts to student loanreverts to student loan

Campus-Based AidCampus-Based Aid

– Federal Supplemental Educational Federal Supplemental Educational Opportunity Grant (SEOG)Opportunity Grant (SEOG)

– Federal Work-StudyFederal Work-Study– Federal Perkins LoanFederal Perkins Loan

Awarded by schools on a “first come, Awarded by schools on a “first come, first served” basis within guidelines for first served” basis within guidelines for each programeach program

Federal Work-studyFederal Work-study

Undergraduate and graduate studentsUndergraduate and graduate students Need-based, part-time employmentNeed-based, part-time employment No minimum or maximum awardNo minimum or maximum award May look at willingness to workMay look at willingness to work Must pay at least federal minimum Must pay at least federal minimum

wagewage The program encourages community service The program encourages community service

work and work related to the recipient's work and work related to the recipient's course of study.course of study.

Federal Direct Stafford Federal Direct Stafford Student LoansStudent Loans

Loan application is the FAFSALoan application is the FAFSA Student borrows from and repays Student borrows from and repays

to federal governmentto federal government School facilitates loan processSchool facilitates loan process Annual and aggregate borrowing Annual and aggregate borrowing

limitslimits Amounts increase for subsequent Amounts increase for subsequent

years of study, with higher years of study, with higher amounts for graduate students.amounts for graduate students.

Federal Direct Stafford Federal Direct Stafford Student LoansStudent Loans

In-school defermentIn-school deferment Six month post-enrollment grace Six month post-enrollment grace

periodperiod Low, fixed interest ratesLow, fixed interest rates Various repayment options Various repayment options

available to students entering available to students entering repaymentrepayment

Federal Direct PLUS Federal Direct PLUS LoansLoans

Parents of dependent Parents of dependent undergraduate students may undergraduate students may apply for the Parent PLUS loan apply for the Parent PLUS loan

Graduate or professional students Graduate or professional students may apply for the Graduate PLUS may apply for the Graduate PLUS loan loan

Parent PLUS loans require Parent PLUS loans require approval based on credit.approval based on credit.

Veterans Benefits


Veterans BenefitsPost-9/11 GI Bill

http://www.gibill.va.gov

1-888-GIBILL-1(1-888-442-4551)

Veterans BenefitsPost-9/11 GI Bill

Individuals who serve at least 90 days of aggregate service after 9/10/01 are eligible at varying percentages for length of service.

Benefits may include: Tuition and fees (paid directly to school) Monthly housing allowance (paid to student) Books and supplies stipend (paid to student)

Benefits are payable only for approved training and education programs offered by a college or university.

Veterans BenefitsPost-9/11 GI Bill -Transferability Allows career service members (6 years + of service)

the opportunity to share their education benefits with immediate family.

Immediate family includes:

- The individual’s spouse

- The individual’s children (under 26 years of age)

- Any combination of spouse and children

Yellow Ribbon Program

Allows colleges and universities to enter a voluntarily agreement with VA to fund tuition expenses that exceed the highest public in-state undergraduate rate for individuals eligible for the GI Bill 100% payment tier.

http://www.gibill.va.gov/benefits/post_911_gibill/yellow_ribbon_program.html

STATE AID PROGRAMSSTATE AID PROGRAMSKentuckyKentucky


State Aid ProgramsState Aid Programs

Residency requirements for eligibilityResidency requirements for eligibility

Merit and need-based aid typesMerit and need-based aid types

May use information from the FAFSA May use information from the FAFSA to determine eligibilityto determine eligibility

Grant program eligibility determined Grant program eligibility determined upon when the FAFSA is completedupon when the FAFSA is completed

Kentucky Aid Kentucky Aid ProgramsPrograms Administered by the Kentucky Administered by the Kentucky

Higher Education Assistance Higher Education Assistance Authority (KHEAA)Authority (KHEAA)

Information and applications Information and applications for Kentucky grant and for Kentucky grant and scholarship programs at scholarship programs at www.kheaa.comwww.kheaa.com

KHEAA ProgramsKHEAA Programs

Below are a few popular state programs most Below are a few popular state programs most relevant to high school students and parents:relevant to high school students and parents:College Access Program (CAP) GrantCollege Access Program (CAP) GrantKentucky Tuition Grant (KTG)Kentucky Tuition Grant (KTG)Kentucky Educational Excellence Scholarship Kentucky Educational Excellence Scholarship (KEES)(KEES)Go Higher GrantGo Higher GrantKentucky Education Savings Plan TrustKentucky Education Savings Plan TrustKentucky's Affordable Prepaid TuitionKentucky's Affordable Prepaid Tuition

INSTITUTIONAL AID INSTITUTIONAL AID PROGRAMSPROGRAMS


Institutional AidInstitutional Aid

Differs from one college to Differs from one college to anotheranother

Contact colleges directly when Contact colleges directly when applyingapplying

Apply earlyApply early Submit polished applicationsSubmit polished applications Respond promptly to offersRespond promptly to offers

PRIVATE AID SOURCESPRIVATE AID SOURCES


Private SourcesPrivate Sources

Foundations and professional Foundations and professional organizations in the student’s field organizations in the student’s field of studyof study

Local businesses and employersLocal businesses and employers Community organizations and civic Community organizations and civic

groupsgroups Religious groupsReligious groups Ethnicity-based groupsEthnicity-based groups

FREEFREE Online Online Scholarship Search Scholarship Search EnginesEngines www.kheaa.comwww.kheaa.com www.finaid.orgwww.finaid.org www.collegeboard.comwww.collegeboard.com www.fastweb.comwww.fastweb.com www.studentaid.ed.govwww.studentaid.ed.gov

FILING THE FAFSAFILING THE FAFSA

Avenues to Achievement Avenues to Achievement 2012 2012 High School Counselor High School Counselor WorkshopsWorkshops

FAFSA on the WebFAFSA on the Web

Website: www.fafsa.govWebsite: www.fafsa.gov 2013-14 FAFSA on the Web 2013-14 FAFSA on the Web

available on January 1, available on January 1, 20132013

FAFSA Demo for FAFSA Demo for CounselorsCounselors

Allows counselors to increase their own understanding of FAFSA on the Web and to show it to students and parents before they apply

http://fafsademo.test.ed.gov When you visit the site, you will be

prompted for a user name and password User name: eddemo Password: fafsatest

Application ProcessApplication Process

Student completes FAFSAStudent completes FAFSA FAFSA results are transmitted to the FAFSA results are transmitted to the

school(s) listed on the FAFSAschool(s) listed on the FAFSA School uses the EFC amount to determine School uses the EFC amount to determine

eligibility for financial aideligibility for financial aid School communicates eligibility to the School communicates eligibility to the

student through an award “package”student through an award “package”

Expected Family Expected Family Contribution (EFC)Contribution (EFC)

Amount a family can reasonably Amount a family can reasonably be expected to contribute to be expected to contribute to collegecollege

EFC is calculated using data EFC is calculated using data provided on the FAFSA provided on the FAFSA

EFC remains the same from EFC remains the same from college to collegecollege to college

FAFSA Filing DeadlinesFAFSA Filing Deadlines

Encourage families to file early:Encourage families to file early:– Families encouraged to file Families encouraged to file as soon as soon

as possible after January 1stas possible after January 1st– Some types of aid are “first come, Some types of aid are “first come,

first served” and funding is limitedfirst served” and funding is limited– Likely to receive more timely award Likely to receive more timely award

information from schools for information from schools for students to make college students to make college decisions/plansdecisions/plans

Documents needed to Documents needed to complete the FAFSAcomplete the FAFSAThe following information and documents are

necessary for completing the FAFSA: Social Security number Parents’ Social Security number Driver’s license number Alien Registration Number if not a U.S.

citizen

Documents needed to Documents needed to complete the FAFSAcomplete the FAFSAThe following information and documents are

necessary for completing the FAFSA: Federal tax information or tax returns, including IRS

W-2 information, for the year prior to the academic year for which you are applying

Income tax information for yourself and spouse, if you are married, and for your parents if you must provide parent information

Estimated tax information if tax return not yet completed

Records of untaxed income, such as child support and interest income

Using Estimated Tax Using Estimated Tax Information on the Information on the FAFSAFAFSA Students and/or parents who have not Students and/or parents who have not

completed their 2012 tax returns may submit completed their 2012 tax returns may submit a FAFSA using estimatesa FAFSA using estimates

Filing FAFSA with estimated numbers allows Filing FAFSA with estimated numbers allows students to file early to meet priority students to file early to meet priority deadlinesdeadlines

Resources to assist with estimating tax data Resources to assist with estimating tax data may be obtained through the IRS website may be obtained through the IRS website www.irs.gov/formspubs/index.html www.irs.gov/formspubs/index.html

After tax returns are completed, income or tax information should be submitted on the FAFSA

IRS Data RetrievalIRS Data Retrieval

Families are STRONGLY encouraged to use IRS Data Retrieval process to import tax information directly from the IRS database into the FAFSA

Prompts in the tax information section of the FAFSA on the Web will guide student/parent through IRS data retrieval option

IRS Data RetrievalIRS Data Retrieval

If using estimated tax information to file the FAFSA early, as recommended, later corrections to submit completed tax information should be made using IRS data retrieval

Federal Student Aid Federal Student Aid PIN PIN

Students and parents of dependent students Students and parents of dependent students must have PIN to complete FAFSA on the must have PIN to complete FAFSA on the WebWeb

Students and parents may apply for a PIN Students and parents may apply for a PIN early and early and do not have to wait do not have to wait until the until the FAFSA is available January 1, 2013FAFSA is available January 1, 2013


Sunday, January 13 at 2:00 p.m.Sunday, January 13 at 2:00 p.m. 16 sites across Kentucky16 sites across Kentucky Information:Information:

– 1-888-4-KASFAA1-888-4-KASFAA– www.kasfaa.com/cgswww.kasfaa.com/cgs– Join us on Facebook!

Financial aid professionals provide Financial aid professionals provide help to families in completing the FAFSAhelp to families in completing the FAFSA

FILING THE FAFSAFILING THE FAFSADependency Status Dependency Status


Dependency Status:Dependency Status:Criteria for Independent Criteria for Independent StudentsStudents At least 24 years of age on or before At least 24 years of age on or before

December 31st of the award year December 31st of the award year Graduate or professional student Graduate or professional student Married Married Has children or dependents other than a Has children or dependents other than a

spouse for whom the student provides more spouse for whom the student provides more than half supportthan half support

Serving on active duty in the U.S. Armed Serving on active duty in the U.S. Armed Forces for other than training purposes Forces for other than training purposes

Veteran of the U.S. Armed Forces Veteran of the U.S. Armed Forces

Dependency Status:Dependency Status:Criteria for Independent Criteria for Independent StudentsStudents Orphan (i.e. both parents are deceased) or is a Orphan (i.e. both parents are deceased) or is a

ward/dependent of the court, or was a ward/dependent of the court, or was a ward/dependent of the court until age 18 ward/dependent of the court until age 18

Emancipated minors or in legal guardianship as Emancipated minors or in legal guardianship as determined by a court of competent jurisdiction in the determined by a court of competent jurisdiction in the applicant's state of legal residenceapplicant's state of legal residence

Unaccompanied youth who is homeless or at risk of Unaccompanied youth who is homeless or at risk of homelessness and is self-supportinghomelessness and is self-supporting

Dependency Override forDependency Override forSpecial CircumstancesSpecial Circumstances

If the student has no contact with a parent and is If the student has no contact with a parent and is unable to provide parental data on the FAFSA, a unable to provide parental data on the FAFSA, a review of special circumstance may be donereview of special circumstance may be done

Examples of special circumstances for Examples of special circumstances for professional judgment may include, but are not professional judgment may include, but are not limited to:limited to:Parent(s) are incarcerated Parent(s) are incarcerated Whereabouts of parents unknownWhereabouts of parents unknownStudent left home due to an abusive situation Student left home due to an abusive situation

Financial aid office requires documentation for Financial aid office requires documentation for such situationsuch situation

Dependency Override for Dependency Override for Special CircumstancesSpecial Circumstances

FAFSA on the Web filers: Answer FAFSA on the Web filers: Answer questions regarding special questions regarding special circumstance and remaining student circumstance and remaining student questions and sign and submit for questions and sign and submit for processingprocessing

Students should contact schools listed Students should contact schools listed on FAFSA for further assistance to on FAFSA for further assistance to complete their FAFSAcomplete their FAFSA

Definition of “parent” for Definition of “parent” for parental data on FAFSAparental data on FAFSA

If parents are living and married to each other, answer the questions about both.

If parent is widowed or single, answer questions about that parent. If widowed parent is remarried as of the day you sign the FAFSA, answer questions about that parent and the person whom the parent married (stepparent).

If parents are living together and are not married but meet the criteria in your state for a common-law marriage, answer the questions about both. If state does not consider them to be married fill out the parental information as if they are divorced. (See next slide.)

– Kentucky does not recognize common-law marriage


If parents are divorced or separated, answer the questions about the parent with whom student lived more during the past 12 months.

If student lived exactly six months with each parent, give answers about the parent who provided more financial support during the past 12 months OR during the most recent year that student received support from a parent.

If this parent is remarried, answer the questions on the FAFSA about that parent and the person whom the parent married (stepparent).


The following people are not parents and should not provide FAFSA data except in cases of adoption:– grandparents– foster parents– legal guardians– older brothers or sisters– uncles or aunts

FILING THE FAFSAFILING THE FAFSASpecial Circumstances and Special Circumstances and

Professional JudgmentProfessional Judgment


Special CircumstancesSpecial Circumstances

Students should contact the school with special Students should contact the school with special circumstances such as: circumstances such as:

Dislocated Worker Dislocated Worker Change in employment statusChange in employment status Medical expenses not covered by insuranceMedical expenses not covered by insurance Change in parent marital statusChange in parent marital status Unusual dependent care expensesUnusual dependent care expenses Student cannot obtain parent informationStudent cannot obtain parent information

The school may use professional judgment to The school may use professional judgment to review extenuating circumstances for review extenuating circumstances for possible adjustments to FAFSA data.possible adjustments to FAFSA data.

FILING THE FAFSAFILING THE FAFSAProcessing of the Processing of the

ApplicationApplication


FAFSA Processing FAFSA Processing ResultsResults Student will receive a Student Aid Student will receive a Student Aid

Report (SAR)Report (SAR)

Student should review and make Student should review and make any necessary changesany necessary changes

VerificationVerification

Verification is a process in which schools Verification is a process in which schools must collect information to verify must collect information to verify accuracy of data entered on the FAFSAaccuracy of data entered on the FAFSA

Reasons for verification: Reasons for verification: Chosen randomly Chosen randomly FAFSA contains estimated informationFAFSA contains estimated information Data provided on the FAFSA is Data provided on the FAFSA is inconsistentinconsistent

Verification Verification

For verification of information on FAFSA, For verification of information on FAFSA, student/parent may be asked to provide student/parent may be asked to provide the school with : the school with : 2012 Federal tax return transcript 2012 Federal tax return transcript

– Transcript may be obtained by contacting Transcript may be obtained by contacting IRS online at www.irs.gov or by phone 1-800-IRS online at www.irs.gov or by phone 1-800-908-9946908-9946


Student/parents may also be asked to Student/parents may also be asked to provide documentation which may provide documentation which may include, but is not limited to: include, but is not limited to: Copies of W-2 forms Copies of W-2 forms Verification worksheet provided by school Verification worksheet provided by school Record of untaxed income such as child Record of untaxed income such as child support, support,

food stamps, untaxed pensions, etc.food stamps, untaxed pensions, etc. Record of child support paid, if reported on Record of child support paid, if reported on FAFSAFAFSA


HELPFUL HINT:HELPFUL HINT:

To limit documentation required for To limit documentation required for verification purposes, verification purposes, families are families are encouraged to utilize the IRS Data encouraged to utilize the IRS Data Retrieval ProcessRetrieval Process when completing when completing or correcting tax information on the or correcting tax information on the FAFSA. FAFSA.

VerificationVerification

Eligibility for aid cannot be determined Eligibility for aid cannot be determined by the school until the verification by the school until the verification process is completedprocess is completed Students should provide requested Students should provide requested verification documentation promptly to verification documentation promptly to ensure timely processing for aid ensure timely processing for aid determination purposesdetermination purposes

FILING THE FAFSAFILING THE FAFSAErrors and Myths Errors and Myths


Frequent FAFSA ErrorsFrequent FAFSA Errors

Social Security Numbers incorrectSocial Security Numbers incorrect Divorced/remarried parental Divorced/remarried parental

information improperly reportedinformation improperly reported Income earned by stepparent not Income earned by stepparent not

includedincluded Untaxed income not included Untaxed income not included U.S. income taxes paid U.S. income taxes paid

misreportedmisreported

Frequent FAFSA ErrorsFrequent FAFSA Errors

Household size discrepanciesHousehold size discrepancies Number of household members in Number of household members in

collegecollege Asset information unreportedAsset information unreported Wrong “degree seeking” type Wrong “degree seeking” type Parent/student has not signed Parent/student has not signed

with PINwith PIN

FAFSA MythsFAFSA Myths

“I won’t file the FAFSA since my family makes too much money so I won’t qualify for aid.”

Reality:Reality:– No income cut-off to qualify for federal student aid– Many factors besides income—from the size of your

family to the age of your older parent—are taken into account.

– FAFSA may also be the application for funds from your state, and possibly from your school as well

– Don’t assume! File the FAFSA and find out.


“Only students with good grades and high ACT scores get financial aid.”

Reality:Reality:– Most federal student aid programs do not

take a student’s grades into consideration– As long as a student maintains satisfactory

academic progress, federal student aid can help a student with an average academic record


“You have to be a minority to get financial aid.”

Reality:Reality:– Funds from federal student aid

programs are awarded on the basis of financial need, not on the basis of race.

– The FAFSA doesn’t even collect this kind of information about an applicant.


“The FAFSA is too hard to fill out.”

Reality:Reality:– Detailed instructions provided for every

question, and the form walks you through step by step

– Help available through online real-time chat and by phone

– Assistance available through school financial aid offices

– Free advice and Free to file!

Student Aid Resources Student Aid Resources


Net Price CalculatorNet Price Calculator

All colleges are required to provide All colleges are required to provide online net price calculators online net price calculators

Benefits of net price calculators:Benefits of net price calculators:– Provide estimate of college costsProvide estimate of college costs– Provide estimated financial aid packagesProvide estimated financial aid packages– Students can compare estimated financial Students can compare estimated financial

aid and expenses at multiple schoolsaid and expenses at multiple schools

FAFSA4casterFAFSA4casterhttps://fafsa.ed.gov/FAFSA/app/f4cForm?https://fafsa.ed.gov/FAFSA/app/f4cForm?execution=e1s1execution=e1s1

Early start on the financial aid processEarly start on the financial aid process Provides early estimate of eligibility for federal aid Provides early estimate of eligibility for federal aid

based on current laws and student informationbased on current laws and student information Helps families begin the financial planning Helps families begin the financial planning

process for collegeprocess for college Reduce time to file FAFSA as information will pre-Reduce time to file FAFSA as information will pre-

populate from FAFSA4caster when filing FAFSA on populate from FAFSA4caster when filing FAFSA on the Webthe Web

Federal Student Aid Federal Student Aid Contact InfoContact Info

Federal Student Aid Information Federal Student Aid Information Center (FSAIC)Center (FSAIC)

• • Toll-free number for questions about federal Toll-free number for questions about federal student aid student aid 1-800-4-FED-AID (1-800-433-1-800-4-FED-AID (1-800-433-3243)3243)

• • TTY (for the hearing impaired) TTY (for the hearing impaired) 1-800-730-1-800-730-89138913

• • E-mail: E-mail: [email protected]@ed.gov

Federal Resource for Federal Resource for StudentsStudents

http://StudentAid.ed.gov/http://StudentAid.ed.gov/Student Aid on the Web—planning for college, paying Student Aid on the Web—planning for college, paying for college, and repaying student loansfor college, and repaying student loansFunding Your Education: The Guild to Federal Student Funding Your Education: The Guild to Federal Student AidAidHow to Qualify for Financial AidHow to Qualify for Financial AidTypes of Financial AidTypes of Financial AidHow to Apply for Financial aidHow to Apply for Financial aidLooking for Student Aid Without Getting ScammedLooking for Student Aid Without Getting ScammedFact sheets on various topicsFact sheets on various topics

FSA for Counselors—FSA for Counselors—resources to help you help yourresources to help you help yourstudentsstudents

www.fsa4counselors.ed.govwww.fsa4counselors.ed.gov Online training and information about Online training and information about

live traininglive training Financial Aid Night PowerPoint Financial Aid Night PowerPoint

presentation and scriptpresentation and script

www.fsapubs.gov/www.fsapubs.gov/ Federal Student Aid Publications Federal Student Aid Publications

Ordering SystemOrdering System


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Thanks to our workshop Thanks to our workshop sponsors!sponsors!

Kentucky Association of Student Kentucky Association of Student Financial Aid Administrators Financial Aid Administrators

(KASFAA)(KASFAA)

Kentucky Higher Education Kentucky Higher Education Assistance Authority (KHEAA)Assistance Authority (KHEAA)

ACT, Inc.ACT, Inc.


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