Understanding Financial Aid

“Education is when you read the fine print.Experience is what you get if you don’t!”

Pete Seeger

Idaho Go On FAFSA DayFirst Saturday in February

February 2, 2013

Computer lab locations throughout Idahohttp://findyourpath.idaho.gov

Goals for TonightReduce financial aid anxiety

Help you complete the FAFSA in an accurate and timely manner

Explain the types of financial aid

Evaluate financial aid offers

Respond to your unique situations

What is Financial Aid?

Grants

Scholarships

Employment Opportunities

Loans

Scholarship ConsiderationsHigh school counselor is your best

resource

School need-based and non-need based programs

Local businesses, civic organizations, and professional associations

Parents’ places of employment

Web sites www.collegeboard.org

www.fastweb.com

Will I be eligible for aid?Yes --if non-income eligibility items are met

Selective Service, citizen/permanent resident

Admitted as “degree-seeking

Valid Social Security Number

Income used to determine type of financial aid and amounts

New student eligible for minimum of $5,500 federal loan

Federal Parent PLUS Loans when extra is needed

Financial Aid Lingo

The PINPersonal Identification Numbers – you may

choose a numberIssued online by the U.S. Dept. of EducationUsed as your (student AND parent)

electronic signature and view account infosign online FAFSAsign electronic promissory notemake corrections to FAFSAApply for a federal Parent PLUS Loanview loan balances and manage account

business

The FAFSAOnline application preferredUse 2013-2014 application if starting Fall

2013Used by nearly all post-secondary schoolsOne application does nearly everything

grantsloanswork studyOther: Information for need-based scholarships

Contact 1.800.4FED AID or the financial aid office if you need help

www.fafsa.gov

The IRS Data Retrieval ToolElectronically transfers 2012 data from your

federal tax return into the electronic FAFSAVery particular.

Official U.S. Postal AddressNo Punctuation O’Malley = O MalleyUse a space where you would have punctuation

Date taxes filed and method of filing = availability

SIGN and SUBMIT the FAFSA transactionWe offer a Timely Tip on the Boise State web

site

The Student Aid Report (SAR)Provides confirmation of application

information

Is sent to email addresses provided

Also available on www.FAFSA.gov

Alerts you to “Reject” status Inconsistent information

Signatures needed

Provides your Expected Family Contribution (EFC)

Expected Family Contribution (EFC) for a Dependent Student

Student Income Parent IncomeUntaxed IncomeAssetsFamily SizeNumber Attending

College

Your EFC is Universal

Cost of Attendance (COA)Tuition and Fees

Room and Board

Books and Supplies

Transportation

Personal ExpensesClothes

Entertainment

Toiletries

Other

CompareSimilarCollegeCosts!

Need Varies Based on Cost

Completing the FAFSA

FAFSA Processor

Sends Student Aid Report (SAR) to student. Contains EFC & comments.

Sends all student information electronically to schools

Contacts student for verification documents, to resolve problems or send aid award notice

Starting Application ProcessInclude all of the colleges you

could possibly attend, even if you are waiting to apply for admission

Submit the FAFSA before school’s deadline

2013-2014 FAFSA available January 1, 2013

Check instructions from each school to ensure maximum consideration for aid

Estimate 2012 income to meet deadline

FAFSA on the Web: www.fafsa.gov

Dependent or Independent?Born before January 1, 1990MarriedActive military in U.S. Armed Forces Veteran of the U.S. Armed ForcesSupporting a dependent child more

than 50%Orphan, Foster Care, HomelessLegal guardian OTHER than a parent!

FAFSA TipsIncome Information

Never miss a deadline!Use estimated income if tax return is not

completedUse federal tax data from tax return, if

completedCorrect estimated income and data on the

FAFSA after taxes are completedUse the online IRS Data Retrieval Tool

whenever possibleIncome protections

Retirement funds are excluded from the FAFSAValue of home or farm w/your home excludedConsideration for number in household

FAFSA TipsParents must provide information on

FAFSA

Grandparents, foster parents, and legal guardians are not parents

If parents are both living and married to each other –

both parents provide information

If parent is single – that parent provides information

If single/divorced parent has remarried, both parent and step-parent provide information (regardless of any prenuptial agreement)

Who is considered a parent?

FAFSA TipsIf parents are divorced or legally separated -

identify parent in the following order:

Parent you have lived with more over the past 12 months.

Parent who provided more financial support over the past 12 months.

Parent who provided more financial support during the most recent year you received financial support.

Who is considered a parent?

FAFSA TipsDetermining Household Size

Student

The FAFSA Parents

Include parents’ other children if:

Parents will provide more than half of their support between July 1, 2013 & June 30, 2014

ORChildren would answer “no” to dependency

status questions

Include others living in the household IF parents provide more than half of their support

Most Common MistakesIncorrect Social Security Number or legal

name

Incorrect parent’s income or portion of income from tax form

Incorrect amounts given for untaxed income and taxes paid

Missing signatures

Incomplete form

Completing the wrong year’s FAFSA

Role of the Financial Aid OfficeDetermines eligibility for financial aid

Awards financial aid

Provides an award notification explaining the programs and amount of aid

Assists student and family when special circumstances occur

Comparing Aid Offers

Comparing College Offers

* Work? Renewable Scholarships? Savings? Parent Loans? Private Loans?

School X

School Y School Z

COA $ 38,800 $ 18,000 $ 11,200

- EFC - 2,500 - 2,500 - 2,500

Unmet Need

$ 36,300 $ 15,500 $8,700

Pell Grant Scholarship

s

$ 2,900$ 10,000

$ 2,900$ 500

$ 2,900$ 500

Federal Loans

$ 5,500 $ 5,500 $ 5,500

Unmet Need

$ 17,900 6,600 $0

Unmet COA $ 20,400 $ 9,100 $ 2,500

Comparing Aid OffersAre the scholarships renewable? If so, what arethe

criteria for renewal?What is the balance of grants/scholarships, student

loans, and work?Is aid available that is not listed on the offer?

Parent PLUS loans Work-study Perkins Loans Alternative Student Loans

How will the offered aid change if outside scholarships are received?

What factors may cause the aid package to change?

financialaid.boisestate.edustudentaid.ed.gov