Learning About Financial Aid

Sally FosterFinancial Aid Night

November 18, 2015

Topics for Today

• College Costs

• Types of Financial Aid

• All About the FAFSA

• What Happens Next?

Direct Cost

• Tuition and Fees• Registration, Technology, and Course Fees

Expenses paid directly to the college

• Room & Board• If living in college owned

dormitories or buildings

Indirect Cost

• Books and SuppliesNew, Used, Rented or Online

Expenses accrued during the school year

• TransportationCommuting Expense

• Room & BoardOff Campus or At Home (usually estimated allowance)

• Personal ExpensesToiletries, Personal Money

Cost of Attendance Example• U-M Dearborn’s cost of attendance is $17,732*

• Average tuition for 15 credits for two semesters is $11,600 (including mandatory fees)

• Allowance for books and supplies is $1,300

*Freshman/sophomore at home budget for 2015-2016

What is Financial Aid?

Financial aid is any source of funds available to assist students in meeting the cost of a college education beyond the resources of a family.

What is the Expected Family Contribution (EFC)?

• Calculation using FAFSA data and a federal formula• Measures family financial strength based on student

and parent income, student and parent assets, household size, number in college, and age of parent

• Stays the same regardless of college • Two components

Parent contribution (income and assets) Student contribution (income and assets)

• EFC represents that family financial strength—the higher the EFC, the lower the financial need

What is Financial Need?

What is Financial Need?

$27,000 - $10,000 =$17,000

Types of Financial Aid

Need-based funds: no repaymentGRANTS

SCHOLARSHIPS

Merit or performance based funds: no repayment

WORK STUDY

Need-based campusjobs--earnings go toward personal expenses

LOANSFixed low-interestRate money that must be repaid

Sources of Financial Aid

State of Michigan

Sources of Financial Aid

State Government Federal Government

Sources of Financial Aid

Federal GovernmentState Government

College/Universities

Sources of Financial Aid

Federal Government

College/Universities

State Government

Private Organizations/Foundations

Sources of Financial AidFederal Government

NEED-BASED

• Federal Pell Grant (from $602-$5775)

• Federal SEOG (ranges from college to college)

• Federal Work Study (ranges from college to

college)

• Federal Direct Subsidized Loan (maximums)

o $3,500 for Freshmen

o $4,500 for Sophomores

o $5,500 for Juniors

o $5,500 for Seniors

Sources of Financial AidFederal GovernmentNON NEED-BASED

• Federal Direct Unsubsidized Loan

o Dependent student $2,000, but can be as

high as $7,500-if replacing Subsidized Loan

• Federal Direct PLUS

o Credit-based, but can cover entire cost of

attendance and budget

Sources of Financial AidState of Michigan

• Michigan Competitive Scholarship (up to $676)

o Demonstrate Financial Need

o Eligible ACT Score (24 composite of higher)

o Deadline is March 1st (date FAFSA is

received by Federal Student Aid Processor)

NEED-BASED

Sources of Financial AidState of Michigan

• Michigan Tuition Grant Program

o Demonstrate Financial Need

o Must attend Michigan independent college

o Estimated grant maximum of $1,830

o Deadline is March 1st (date FAFSA is

received by Federal Student Aid Processor)

NEED-BASED

Sources of Financial Aid

College and University Grants

Colleges and universities award need-based grants. • Be careful of deadlines (usually March 1st or

before)• Complete document requests as quickly as

possible

Other factors that are considered:• EFC (Expected Family Contribution)• Other resources of aid• Timely completion of required documents

Sources of Financial Aid

College and University Scholarships

• College and university scholarships are usually awarded on the basis of merit (academic, athletic, musical talent)

• Many scholarships are for more than one year (will usually need to meet certain requirements for renewal)

• Check with Admissions Office or research online

Sources of Financial Aid

Private Scholarships

• Private scholarships can be a valuable resource for students to help meet educational costs. Many students apply, but few are selected.

• Students can begin planning for scholarships as early as their freshman or sophomore year in high school

• Many private scholarships can be divided into two groups: • You are like us, we want to help you.• You want to be like us, we want to help

you.

Sources of Financial Aid

Private Scholarships

• Grades, standardized test scores, and class rank.

• Grades are more than GPA—the classes that you take matter too. Take a rigorous academic courses.

• Many programs look at the breadth and depth of accomplishments—not just a large number of activities in a senior year.

• There is often an emphasis on leadership and initiative—not just membership

All About The FAFSA

• Free Application for Federal Student Aid (FAFSA)www.fafsa.gov

• Federal Student Aid IDwww.fsaid.ed.gov

• Student Loanswww.studentloans.gov

FSA ID: Do This Now

All About The FAFSA

• May be filed at any time during an academic year, but no earlier than the January 1st prior to the academic year for which the student requests aid

• For the 2016–17 academic year, the FAFSA may be filed beginning January 1, 2016

• Most colleges set FAFSA filing deadlines

All About The FAFSA

• Login and create password

• Student Demographics

• School Selection

• Dependency Status

• Parent Demographics

• Financial Information

• Sign, Submit & Confirmation

What to Expect... Seven Steps No need to be confused

Student Demographics

School Selection

Dependency Status

Dependency Status

Parent Demographics

Parent Demographics

The parental residence will determine the state of residence of the student.

Parental Financial Information

If eligible, you should use the IRS Data Retrieval Tool (DRT)

Using the IRS Data Retrieval (DRT)

Enter basic information, submit, if correct, press transfer.

Financial Information

Additional Financial Information

Financial Information: Reporting Assets

Student Information

• Very much like the parental section

• Student information is usually less complicated than parent information

Student Information

Next Step: Sign and Submit

• Both the student and one parent must sign the FAFSA.

• The signature indicates that the information is correct and applicants are aware that there are penalties for intentionally false information and agree to submit additional information if requested by the financial aid office.

• The FAFSA can be signed using the FSA ID (preferred) or by printing a signature page.

Steps in Submission

All About The FAFSA

Frequent FAFSA Errors• Social Security Numbers

• Divorced/remarried/living together and not married parental information

• Income earned by parents/stepparents

• Untaxed income

• U.S. income taxes paid

• Household size

• Number of household members in college

• Real estate and investment net worth

What Happens Next?

• Initial calculation by Federal Student Aid Processing Center providing the EFC

• Student Aid Report (SAR) sent by email within less than one week for official results to student

• FAFSA information released to universities which the student has requested the application be sent and can list up to ten colleges and universities

• Reviews for federal requirements• Most common: documentation of citizenship status,

selective service registration, final high school transcript

• Verification documentation for such items as income, household information, SNAP (food stamps), child support paid or received

• Financial Aid Award Offers sent to students for review and acceptance (by postal mail or email)

What Happens Next?

Making Corrections• Using FAFSA on the Web at fafsa.gov

(preferred and faster)• Updating paper SAR (SAR Information

Acknowledgement cannot be used to make corrections); or

• Submitting documentation to the financial aid office at the college (may be required for verification)

Special Circumstances

• Students and their families apply for consideration for special circumstances through your Financial Aid Office using their Special Circumstances Appeal Form

• Documentation is required• Appeal must reflect a significant loss of income

as well as a special circumstance• Appeal must be completed at each college to be

considered

Special Circumstances• Change in employment status

• Termination or separation, change from full-time to part-time, reduction in salary

• High medical expenses not covered by insurance and paid out of pocket

• Divorce or separation

• Death of parent or spouse

• Loss of untaxed income or taxable benefits

• Child Support, worker compensation

Your New Best FriendSeven Easy Steps to the FAFSA

Thank You

Any Questions?