financial aid 101 financial aid information for 2016-2017 the webinar will begin at 1:30pm. we...
TRANSCRIPT
Financial Aid 101Financial Aid Information for 2016-
2017
The webinar will begin at 1:30pm.
We recommend that you download the power point and handouts found at
Jeff JohnstonSenior Account ExecutiveSallie [email protected]
om
Mary CannonDirector of Financial AidHondros [email protected]
Financial Aid 101Financial Aid Information for 2016-
2017Today’s webinar in an introduction to financial aid. For a more in-depth presentation and discussion you are encouraged to attend an OASFAA counselor workshop on December 7,8, 9,10, or 11
Go to: www.oasfaa.org
Click on the High School Counselor Workshop Registration link.
Financial Aid 101Financial Aid Information for 2016-
2017This webinar is sponsored by OASFAA:
Ohio Association of Student Financial Aid Administrators
Materials for this presentation come from OASFAA, the National Association of Student Financial Aid Administrators (NASFAA) and Federal Student Aid (FSA).
Financial Aid 101Financial Aid Information for 2016-
2017• OASFAA is a non-profit organization comprised of volunteer financial aid professionals.
•OASFAA has provided the information today as a free service.
•You have permission to copy and distribute these materials to your students and families. Charges may not be assessed for the material or for the information presented. Permission must be granted for other use of this information or these materials.
•Contact the OASFAA Outreach Chairperson(s) listed on the OASFAA website, or e-mail the OASFAA Outreach Committee at [email protected]
Additional resources for counselors are available for download at the OASFAA website:http://www.oasfaa.org/docs/toc_counselors.html
Financial Aid 101Financial Aid Information for 2016-
2017•The Key to obtaining Financial Aid is understanding how the system works.
•Program:
•Part 1: Process & Programs
•Part 2: Filing out and filing the FAFSA
• Handouts: Funding Your Education (FSA,ED)
Cost Comparison Worksheet (OASFAA)
Scholarship Scams Tip Sheet (FastWeb)
Who is a Parent (FSA,ED)
Dependency Status (FSA,ED)
Financial Aid 101Types of Aid
• Scholarships
• Grants
• Loans
• Employment
Gift Aid
Self-Help Aid
Purpose is to provideChoice and Access
• Merit Based• Scholarships (performance)
• Need-Based• Grants• Loans• Work-Study Jobs
• Not Need-Based• Loans• VA Benefits
Education Tax Credits – A way to defray costs!
Types of AidThree Categories of Aid
8
• Budget Control Act (BCA) of 2011 (August 2, 2011)• Sequestration enacted on March 1, 2013 when Super Committee failed to reach an agreement.
• Consolidated Appropriations Act (CAA) of 2012 (December 23, 2011)
• Moving Ahead for Progress in the 21st Century Act (MAP‐21) (July 6, 2012)
- introduced 150% rule for Subsidized Stafford Loans
• American Taxpayer Relief Act (ATRA) of 2012 (January 2, 2013)
• Bipartisan Student Loan Certainty Act of 2013 (August 9, 2013)• Interest rates on direct loans recalculated annually
• To the extent they are able, Parents have the primary responsibility to pay for their dependent child’s education. Students also have a responsibility to contribute to their educational costs.
• Families should be evaluated in their present financial condition.
• A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect a family’s ability to pay.
Financial Aid 101Principles of Need Analysis
Financial Aid 101Definition of Need
Tuition and FeesRoom and BoardBooks and SuppliesPersonal ExpensesTransportation
Cost of Attendance
- Expected Family Contribution (EFC)
= Eligibility (Need-Based Aid)
Student’s + Parent’s Contribution
Financial Aid NeedFinancial Aid Need
www.StudentAid.gov/how-calculated
• Your EFC is calculated according to a formula established by law.
• Stays the same regardless of college.
• The formula does not measure willingness to pay!
• The EFC is a number that college financial aid professionals use to determine need. The information you report on your FAFSA is used to calculate your EFC. Cost of Attendance determines total financial aid eligibility.
Financial Aid 101Expected Family Contribution (EFC)
www.StudentAid.gov/how-calculated
Financial Aid 101Higher Education Reconciliation Act of 2005 (HERA)
College Cost Reduction & Access Act of 2007 (CCRAA)Increased income protection allowance for dependent students:
06-07$2,55007-08$3,000 (HERA)08-09$3,08009-10 $3,750 (CCRAA)10-11$4,50011-12$5,25012-13$6,00013-14$6,13014-15$6,26015-16 $6,310
Financial Aid 101Need Comparison
The Federal Expected Family Contribution (EFC) is the same at each institution.
Handout: OASFAA’s Cost comparison worksheet
Net Price Calculator
Financial Aid 101A Word about DEADLINES
FAFSA Priority Deadlines
How/When to file if dealing with early deadlines:
• If possible, complete the necessary 2015 income tax returns prior to completing the FAFSA and utilize the DRT (IRS Data Retrieval Tool) so you can complete the FAFSA more easily and accurately, or…• Follow a two-step process:
1. Step 1: Apply and estimate your tax information on your application
2. Step 2: Make corrections later after completing the tax return, using the IRS Data Retrieval Tool.
Financial Aid 101Changes to Federal FAFSA Process
for 2017-2018 • FAFSA Availability: The 2017-2018 FAFSA will be available annually as early as October 1st
(Available October 1st, 2016 for the 2017-2018 Aid Year) • “Prior-Prior” Tax Info Required: Student and Parent will report income from 2 years prior (E.g. If a student will be attending beginning 2017-2018, 2015 tax information would be required)
COMING
SOON!!
Financial Aid 101Scholarship Searches & SCAMS
• Scholarship Scams Tip Sheet (free vs. paying a fee)
• Buyer beware • Project Scholarship Scam
www.ftc.gov/scholarshipscams• Pursue local scholarships!• Civic Organizations, Churches, and Employers• Check with Colleges and Universities as they may also be
aware of external scholarships (as well as institutional scholarships)
Handout: OASFAA’s Scholarship Scams Tip Sheet
Historical Look at Need-Based Ohio Aid
17Source: AICUO
18
Ohio Aid Programs 2015-2016
Ohio College Opportunity Grant (OCOG)
War Orphans Scholarship
National Guard Scholarship
Safety Officers Memorial
Nurse Education Assistance Loan Program (NEALP)
Choose Ohio First
Ohio College Opportunity Grant (OCOG)OH Department of Higher Ed (ODHE) formerly the OH Board of Regents (OBR)
Eligibility for OCOG Student must file the FAFSA
be an Ohio resident
attend an Ohio public university’s main campus (not a regional campus or a community college)
or attend an Ohio private, non-profit college or university, or an Ohio private, for-profit institution
• Students at community colleges and university regional branch campuses are not excluded from the OCOG program; however, tuition level/costs are the determining factor in receipt of an OCOG award.
• Therefore, students in this sector have a $0 OCOG award amount unless the student attends an eligible institution year-round. In this case only, awards may be distributed for one term in the academic year once Pell Grants have been exhausted for the year.
19
2015-2016:$2592 Private 4-year$1296 Public 4-year
$888 Private, For-Profit
Ohio College Opportunity Grant (OCOG), 2015-2016
From https://www.ohiohighered.org/ocog 20
Students attending community colleges and regional campuses are eligible to receive OCOG if they are eligible for ETV, as foster youth students.
Federal Grants: Pell & SEOG
21
Pell Grant (2015-2016)EFC of 00000 = $5775 maximum PellEFC of 05198 = $ 626 minimum Pell*Need Based*Must file FAFSA *Portable
Federal SEOG Grant: (Campus Based)*Exceptional financial need*Lowest EFC’s (Pell Eligible students are priority)*Award ranges from $100 to $4000
FAFSA Priority Deadline for
campus based programs
• Undergraduate or graduate students are eligible• Employment can be on or off campus• FWS wages excluded from EFC calculation!!!• Eligible employers
• School• Federal, state, or local public agency• Private non-profit organization in academically relevant
jobs• For-profit organization in academically relevant jobs• Community service activities
FAFSA Priority Deadline for
campus based programs
Federal Self Help: Work-study
Ohio minimum
wage in 2015: $8.10 per
hour
Program has expired. No new loans originated after October 1st 2015 Previous terms:• Eligible students (priority to exceptional need)
• Undergraduate or graduate students• Must file the FAFSA
• Annual and aggregate loan limits• up to $5,500 annually for undergrads (varied by school)• $27,500 aggregate for undergraduates
• Interest rate: 5% (fixed) during repayment• Interest subsidized during in-school and nine-month grace period• Deferment and cancellation provisions available
Federal Self Help: Perkins Loan
Federal Student Aid https://studentaid.ed.gov/sa/types/loans The school you are attending has information on their web
site (especially related to process) Only borrow what is really needed Look at loans as an investment in the future
Federal Self Help: Loans
• File the FAFSA
• Complete admission process at the school you plan to attend.
• Review the award letter from the school to learn about eligibility.
• Go to www.studentloans.gov
• Sign in using your Federal Student Aid ID (FSA ID)
• Student: complete entrance counseling AND MPN (Master Promissory Note)
• Parent: complete PLUS application AND MPN
Federal Self Help: LoansHow do I apply for Federal Direct Loans?
(Deadline to apply is before the end of enrollment period)
How do I apply for financial aid?• Apply for Admission
• Complete admission process at the school you plan to attend.
• Apply for FSA ID
• Complete the Free Application for Federal Student Aid (FAFSA) online at www.fafsa.gov after January 1 for 2016-17
• Review your Student Aid Report (SAR). Update estimated information, make corrections or contact the Financial Aid Office if corrections needed.
• Complete and mail any supplemental forms required by the college or state agency.• Watch for your financial aid award letter or Financial Aid package from the college/university.
Financial Aid 101Basic Steps for First-Time Filers
If you or your family experienced significant changes to your financial situation, complete the FAFSA to the extent you can and submit it as instructed. Consult with the financial aid office at the college(s) you applied to or plan to attend.
Financial Aid 101FAFSA: Special Circumstances
• Child support ending• Medical not covered by
insurance• Parent loss of income• Property loss not covered by
insurance
• Unusual debt or one-time income
• Tuition expenses at an elementary/secondary school
• Parent in College
The financial aid administrator must have compelling reasons to use professional judgment to make adjustments because of special circumstances.
The financial aid administrator’s decision as to whether you have special circumstances is final and can’t be appealed to us (the US Department of Education).
Financial Aid 101FAFSA Filing Options
www.FAFSA.gov
Provides the three options for applying including the PDF FAFSA.
Financial Aid 101FAFSA: Verification
The process of documenting the information you provided on the FAFSA is called verification. If your application is selected for verification and you do not
provide the documents requested on time, you will not receive federal student aid and you might not receive aid
from other nonfederal sources.
Financial AidFAFSA: Verification and the IRS Data Retrieval Tool
• VERIFICATION• Selected by the Central
Processing System (CPS) or the Institution
• Tax documents (transcripts) may be required
• If selected, completion is required before aid can be disbursed
• Verification materials are sent to the financial aid office, not federal processor
IRS DATA RETRIEVAL TOOL
• Participation is Voluntary
• Reduces documents requested by the financial aid office
Financial Aid 101FAFSA: FAFSA on the Web Worksheet
IRS DATA RETRIEVAL TOOLStudents and parents who have
completed their IRS tax return may be able to use FAFSA on the Web to electronically view their tax information. With just a few simple steps the tax information can also be securely transferred into the FAFSA.
Handout: FOTW worksheet
FSA IDhas replaced the PIN
PINFSA is Federal Student Aid, which, asa part of the U.S. Department of Education, is the largest provider of student financial aid in the nation.
Financial Aid 101FSA ID
www.fsaid.gov
A parent only needs one FSA ID for multiple childrem
New in 15-
16!
Financial Aid 101FAFSA Homepage
www.fsaid.gov
Financial Aid 101FAFSA…One Log-in for all Applicants
www.fsaid.gov
All application options are accessible with one log in:• Starting a FAFSA• Continue a FAFSA• Corrections• Adding a School
Code• Signing the FAFSA• Status Check• View SAR
Financial Aid 101FAFSA - Need Help?
www.fsaid.gov
Customer service options include Live Chat Help, a toll-free number, and e-mail.
Financial Aid 101FAFSA: Frequent Errors
• Social Security Numbers• Divorced/remarried parental information• Income earned by parents/stepparents• Untaxed income• U.S. income taxes paid• Household size & number in college• Real estate and investment net worth
Financial Aid 101FAFSA: FAFSA on the Web Worksheet
• Used as pre-application worksheet
• Questions follow order of FOTW
Reasons to file electronically:
• Built-in edits to prevent costly errors
• Skip logic allows student and/or parent to skip unnecessary questions
• Option for IRS Data Retrieval Tool
• More timely submission
• More detailed instructions and “help”
• Can check application status online
Financial Aid 101College and Housing Information
Page 2 of Worksheet:After you are online you can add up to 10 colleges on your FAFSA.
•College’s website•School type•Tuition and fees•Net price average•Graduation rates•Retention rates•Transfer rates
Financial Aid 101FOTW Worksheet: Review of Key Elements
Page 2 of Worksheet:After you are online you can add up to 10 colleges on your FAFSA.
•Student’s information, pg. 2
• Dependency questions, pg.2
• Who is a parent? pg.3
Handout(s):“Who is a parent” and “Assets Directions”
Financial Aid 101Sign & Submit Page
Financial Aid 101FAFSA Corrections
Important! Read the forms…..AND complete all forms carefully
Errors made in completing the FAFSA and/or supplemental forms may delay application processing and result in the loss
of financial aid funds.
Financial Aid 101Avoid Errors!
• Federal Student Aid Information Center: 1-800-433-3243
Phone system available 24/7 Agents available 8 a.m. – 10pm EST (M-F)
• FSA ID Help:1-800-557-7394
Financial Aid 101Need Help?
College Goal Sunday
• Sunday, February 14, 2016
www.ohiocollegegoalsunday.org• Registration for students and
volunteers will open in late fall.
• Please check the website for locations near you.
Our Contact Information Email: [email protected] Web: http://www.oasfaa.org/ (page for counselors)
Request an OASFAA volunteer High School Financial Aid Night presenter.
Register for December Counselor Workshops (we anticipate registration being live within a week).
Sign up for our email database to be sure you are notified for all events.