Today’s Agenda

Application Application ProcessProcess

How Financial Aid How Financial Aid is Determinedis Determined

Types of AidTypes of Aid

QuestionsQuestions

How Do I Apply for Financial Aid?

Complete the Free Complete the Free Application for Federal Application for Federal Student Aid (FAFSA) Student Aid (FAFSA)

Complete school’s Financial Complete school’s Financial Aid Application (if Aid Application (if applicable)applicable)

Meet Priority DeadlineMeet Priority Deadline

Apply for Scholarships Apply for Scholarships

Contact school directly if you Contact school directly if you have Special Circumstances have Special Circumstances

Free Application for Federal Student Aid (FAFSA)

Collects Family’s Personal and Financial Information used to Calculate EFCFederal Central Processor Computes all DataApply Every YearTakes 1-3 Weeks to Process—Apply EarlyGenerates Student Aid Report (SAR)

2011-12: 18 million FAFSAs filed; 5% increase over 2010-11

College Scholarship Service: CSS ProfileFile in Fall of Senior year; not free*Carleton, St. Olaf, Macalester, Gustavus

PIN Registration

www.pin.ed.govwww.pin.ed.govElectronic Electronic SignatureSignature

Student and Student and Parent Must Have Parent Must Have OneOne

Parent Can Use Parent Can Use Same PIN for Same PIN for Multiple ChildrenMultiple Children

Access to Loan Access to Loan Info (National Info (National Student Loan Student Loan Database Database System)System)

Where to Start…

FAFSAFAFSA——FreeFree Application for Application for Federal Student AidFederal Student Aid

www.fafsa.govwww.fafsa.gov

Be Prepared:Be Prepared:Adjusted Gross IncomeAdjusted Gross Income

WagesWages

Federal Taxes paidFederal Taxes paid

Tax Deferred incomeTax Deferred income

Investment infoInvestment info

Savings/Checking Savings/Checking balancesbalances

You You CANCAN estimate your estimate your income!!income!!

FAFSA – Student Information

Social security Social security numbernumber

Date of birthDate of birth

The name The name entered for the entered for the student MUST student MUST match the name match the name on their social on their social security card. security card.

Selective Service Selective Service (male students (male students only)only)

FAFSA – Student Information

Students must Students must file a renewal file a renewal FAFSA every FAFSA every year in order year in order to continue to continue financial aidfinancial aid

Make sure you Make sure you complete the complete the correct aid correct aid year’s year’s

FAFSA: FAFSA: 2014-20152014-2015

FAFSA – School Information

Enter the Enter the college school college school codescodes

You can either You can either enter the enter the number number provided by the provided by the school or use school or use the “search” the “search” functionfunction

Housing choice Housing choice requested for requested for each collegeeach college

FAFSA – Student Information

Several Several questions questions determine determine student student dependency dependency information for information for FAFSA purposes.FAFSA purposes.

In general, In general, students under students under the age of 24 the age of 24 are considered are considered to be dependent to be dependent for FAFSA for FAFSA purposes.purposes.

FAFSA – Student Information

Students will be Students will be prompted to answer prompted to answer the same tax and the same tax and asset information as asset information as parents.parents.

Students who filed Students who filed taxes can also use taxes can also use IRS-Data Retrieval IRS-Data Retrieval

(DRT)(DRT)

Income EstimatorIncome Estimator

FAFSA – Parent Information

Dependent Dependent students must students must provide parent provide parent information on information on the FAFSAthe FAFSA

If parent If parent information is information is not available, not available, student should student should contact the contact the college to college to proceed.proceed.

FAFSA – Parent InformationIf student’s biological parents are divorced, only If student’s biological parents are divorced, only list household tax information for custodial list household tax information for custodial parent. If joint custody, include information parent. If joint custody, include information where student lives more than 50% of the time. where student lives more than 50% of the time.

New New 2014-152014-15—Unmarried parents who live —Unmarried parents who live together need to report together need to report bothboth their incomes to their incomes to FAFSA; includes same sex couples who are FAFSA; includes same sex couples who are legally legally marriedmarried and/or who has and/or who has adoptedadopted the student the student

If custodial parent is remarried, both parent and If custodial parent is remarried, both parent and step-parent information is required for FAFSA step-parent information is required for FAFSA purposes. purposes.

If your student has a child of her/his own and If your student has a child of her/his own and

both live with you, you may still be required on both live with you, you may still be required on the FAFSAthe FAFSA

FAFSA – Parent Information““Household Household size” includes a size” includes a help button to help button to determine who determine who should count as should count as household household membersmembers

Parents in Parents in college do NOT college do NOT count as # in count as # in college for the college for the student’s FAFSAstudent’s FAFSA

Data Retrieval Tool (DRT)Use the IRS Retrieval--Use the IRS Retrieval--available last week in available last week in Feb!Feb!Eligible to be used when Eligible to be used when taxes are filed online in taxes are filed online in advance of at least 3 advance of at least 3 weeks; paper could be 6-weeks; paper could be 6-10 weeks10 weeks

Does NOT populate wages, Does NOT populate wages, tax deferred or investment tax deferred or investment informationinformation

Address on FAFSA must Address on FAFSA must match address on tax match address on tax returnreturn

You can return to your You can return to your FAFSA after you file taxes FAFSA after you file taxes and use DRT!and use DRT!

Data Retrieval Tool (DRT)

Are you married, but filed separate taxes from Are you married, but filed separate taxes from your spouse?your spouse?

File a Puerto Rican tax return?File a Puerto Rican tax return?

Filed an Amended tax return?Filed an Amended tax return?

Do not have a valid Social Security NumberDo not have a valid Social Security Number

Only recently filed (last 3-4 weeks) online, (8 – Only recently filed (last 3-4 weeks) online, (8 – 10 weeks) for paper filings10 weeks) for paper filings

Do not owe money back to the IRSDo not owe money back to the IRS

If you say no to any of these, you should If you say no to any of these, you should use DRT!use DRT!

Data Retrieval Tool (DRT)

FAFSA – Parent Information

Income tax: Income tax:

1040, line 55 1040, line 55 1040A, line 35 1040A, line 35 1040EZ, line 101040EZ, line 10

Exemptions are Exemptions are found on 1040 or found on 1040 or 1040A, line 6d1040A, line 6d

Untaxed IncomeUntaxed Income: : Payments to tax-Payments to tax-deferred savings deferred savings found on W-2, boxes found on W-2, boxes 12a-d, codes D-H & S12a-d, codes D-H & S

FAFSA – Parent Information

Asset FAFSA information requested:Asset FAFSA information requested:

Amount in cash, checking and savingsAmount in cash, checking and savings

Net value of investments (value minus debt):Net value of investments (value minus debt):

DO NOT INCLUDE: Value of family home, a farm the DO NOT INCLUDE: Value of family home, a farm the family lives on, family-owned business with fewer family lives on, family-owned business with fewer than 100 employees, value of retirement/pension than 100 employees, value of retirement/pension plans in a qualified retirement account plans in a qualified retirement account

INCLUDE: Net value of rental properties, net value of INCLUDE: Net value of rental properties, net value of investment farms, investments, college savings investment farms, investments, college savings plans (529 in parent or student’s name), etc… plans (529 in parent or student’s name), etc…

There is an automatic asset protection built into the federal formula—There is an automatic asset protection built into the federal formula—

the average amount calculated from parents’ assets is 6%.the average amount calculated from parents’ assets is 6%.

FAFSA – Parent InformationAdd’l Financial Information and Untaxed Income that Add’l Financial Information and Untaxed Income that

must bemust be

reported:reported:

Education Credits Education Credits

Total child support Total child support paidpaid in that calendar year in that calendar year

Taxable combat pay or special combat pay (would Taxable combat pay or special combat pay (would be included in your AGI if taxable)be included in your AGI if taxable)

Parents’ own student grants and scholarship if Parents’ own student grants and scholarship if reported as part of the parents’ AGIreported as part of the parents’ AGI

Child support Child support receivedreceived that calendar year for all in that calendar year for all in the householdthe household

Other untaxed income (first time homebuyers tax Other untaxed income (first time homebuyers tax

credit)credit)

FAFSA – Signature PageFAFSA must be FAFSA must be signed by both signed by both student and a student and a parentparent

Any FAFSA changes Any FAFSA changes mustmust be signed by be signed by both student and a both student and a parentparent

FAFSA may be FAFSA may be signed with pin or signed with pin or signature page – signature page – pin leads to pin leads to significantly faster significantly faster processingprocessing

Success!

VerificationRoughly 1 out of 4 FAFSAs will be randomly Roughly 1 out of 4 FAFSAs will be randomly selected for “verification”selected for “verification”

Student and Parent must provide official Student and Parent must provide official tax tax transcript transcript to the school (not copy of tax return) or to the school (not copy of tax return) or use use DRT (Data Retrieval Tool)DRT (Data Retrieval Tool)

www.IRS.govwww.IRS.gov ( (Get a transcriptGet a transcript) )

––OR-- OR-- call 800-908-9946 call 800-908-9946 (2-4 weeks)(2-4 weeks)Must also submit the Federal Verification Must also submit the Federal Verification Worksheet (provided by the school)Worksheet (provided by the school)

If needed for eligible non-citizenship If needed for eligible non-citizenship documentation, student must bring in documentation, student must bring in original original for for FA office to copyFA office to copy

Expected Family Contribution (EFC)

Parent IncomeStudent IncomeUntaxed IncomeFamily AssetsFamily SizeNumber Attending College

Student and parent contributions are Student and parent contributions are determined by the federal formula (FAFSA determined by the federal formula (FAFSA application)application)

Colleges use your EFC to determine your Colleges use your EFC to determine your family’s aid eligibility at their schoolfamily’s aid eligibility at their school

Cost of Attendance

Tuition and FeesTuition and Fees

Room and BoardRoom and Board

Books and Supplies Books and Supplies

Transportation Transportation

Miscellaneous Personal ExpensesMiscellaneous Personal Expenses

FAFSA Determines Your Expected Family

Contribution (EFC)

Cost of Attendance Cost of Attendance (COA)(COA)

-- -- EFC____________________EFC____________________ == Eligibility for need-Eligibility for need-

based based financial financial aidaid

The COA is different at each The COA is different at each school, but a student’s EFC school, but a student’s EFC stays the same. A student’s stays the same. A student’s need will be different from need will be different from school to school.school to school.

Cost of Attendance vs. Direct Costs

Direct Costs (DC)Direct Costs (DC):: TuitionTuition @ fulltime (16cr) @ fulltime (16cr)+ + FeesFees+ + RoomRoom+ + BoardBoard= Direct Costs= Direct Costs

These are costs that are set These are costs that are set and standard that students and standard that students will be chargedwill be charged

Cost of Attendance Cost of Attendance (COA):(COA): TuitionTuition @ fulltime @ fulltime (16cr)(16cr)+ + FeesFees+ + RoomRoom+ + BoardBoard+ + Transportation* Transportation* + + Books & Supplies*Books & Supplies*+ + Misc. Expenses*Misc. Expenses*= Cost of Attendance= Cost of Attendance*Estimated; you may not *Estimated; you may not actually pay this amountactually pay this amountNet Price Calculators: All colleges must have

one; be aware of COA vs. DC for actual costs

Need Varies Based on Cost

X

Y

Z

Cost of Expected Family NeedAttendance Contribution

(Variable) (Constant)

1

2

3

EFC EFC

(Variable)

Types of Financial Aid

Grants

Scholarships

Loans

Student Employment

Where does it come from?Federal and State Government, Schools, Employers, and Other Public and Private Sources like Clubs and Organizations

Federal GrantsFederal Pell GrantFederal Pell Grant: given to students with : given to students with exceptional financial need; annual awards range exceptional financial need; annual awards range from $4,574-anticipated maximum $5,645; maximum from $4,574-anticipated maximum $5,645; maximum lifetime limit of 12 semesters of enrollment (based on lifetime limit of 12 semesters of enrollment (based on 13-14)13-14)

Federal SEOG GrantFederal SEOG Grant: : limited funding; priority given limited funding; priority given to students with exceptional need; each school can to students with exceptional need; each school can determine how much they will awarddetermine how much they will award

The Teacher Education Assistance for College The Teacher Education Assistance for College and Higher Education Grant (TEACH)and Higher Education Grant (TEACH): : must meet must meet certain pre-requisite academic requirements; must certain pre-requisite academic requirements; must declare Education as a major; must work as a declare Education as a major; must work as a fulltime teacher in a designated area after fulltime teacher in a designated area after graduation. See Financial Aid Counselor for details.graduation. See Financial Aid Counselor for details.

State & Institutional Grant Programs

Minnesota State GrantMinnesota State Grant: : Must be a MN resident Must be a MN resident attending eligible MN school; award to students from low attending eligible MN school; award to students from low to moderate income families; annual awards up to $10,450 to moderate income families; annual awards up to $10,450 (13-174); maximum lifetime limit equal to 4 years of (13-174); maximum lifetime limit equal to 4 years of enrollmentenrollment

FAFSA will have a MN State Grant Questionnaire link if you FAFSA will have a MN State Grant Questionnaire link if you indicated your legal state of residency is MN indicated your legal state of residency is MN

Minnesota GI BillMinnesota GI Bill: : Eligible MN veterans who served on or after Sept. 11, 2001; full-time undergraduates may be eligible to receive up to $1,000/semester or term and part-time students may be eligible for $500/semester

Institutional GrantInstitutional Grant: : College or university funds award College or university funds award to students with financial needto students with financial need

Search for Scholarships

Typically awarded based Typically awarded based on on meritmerit, not need, not need

Where to look:Where to look:On the webOn the webYour college(s) of choiceYour college(s) of choiceHS counselor; Guidance HS counselor; Guidance Office or Career CenterOffice or Career CenterIn the community: church, In the community: church, civic, and business civic, and business organizationsorganizationsParent employerParent employer

LoansFederal Perkins LoanFederal Perkins Loan: : 5% fixed interest; no fees; interest and repayment begin after school

Federal Stafford/Direct LoanFederal Stafford/Direct Loan: : Loans awarded after July 1, 2013 will have an interest rate of 3.86%; 1.072% fee; repayment of principle begins 6 months after school ends/student withdraws

Subsidized: no interest charged while in school; interest will begin to accrue from the last date of attendanceUnsubsidized: interest accrues while in school

Federal Parent PLUS LoanFederal Parent PLUS Loan: : Parent borrows loan on behalf of dependent student; fixed interest rate 6.41%; 4.288% fee; repayment begins after disbursement (i.e. while student is in school)

Alternative/Private Student LoansAlternative/Private Student Loans: : Variable interest rates and fees; can require cosigner

Student Employment

RetentionRetention

Flexible HoursFlexible Hours

Spending MoneySpending Money

On-Campus or Non-Profit OrganizationsOn-Campus or Non-Profit Organizations

Federal and State Employment is not Federal and State Employment is not used in Determining Student’s used in Determining Student’s Contribution on next year’s FAFSAContribution on next year’s FAFSA

Financial Aid AwardA “package” is a combination of grants & scholarships, A “package” is a combination of grants & scholarships,

student employment, and/or low-interest student student employment, and/or low-interest student loans. loans.

Example:Example:

Total COA $16,000(includes tuition, fees, room and boardand estimated books, supplies and misc)

Outside Scholarship: $1,000Pell Grant: $2,200MN State Grant: $3,612

Federal Work Study: $2,000Federal Perkins Loan: $2,000Federal Stafford Loan: $3,500

Total AidTotal Aid $14,312 $14,312

Family Contribution Family Contribution = = $1,688$1,688

Where Can I Get More Information?

Federal Student Aid InfoFederal Student Aid Info studentaid.govstudentaid.gov

FastWeb Scholarship Search: FastWeb Scholarship Search: www.fastweb.comwww.fastweb.com

FinAid - The Financial Aid FinAid - The Financial Aid Information Page: Information Page: www.finaid.orgwww.finaid.org

Minnesota Office of Higher Minnesota Office of Higher Education Student Website: Education Student Website: www.getreadyforcollege.www.getreadyforcollege.orgorg

Financing Your FutureAn Investment in You!

Mai Nhia Xiong-ChanMai Nhia Xiong-Chan Director of Recruitment Director of Recruitment

St. Catherine UniversitySt. Catherine University

mxchan@stkate.edumxchan@stkate.edu