financial aid 101- the basics. agenda financial aid history & philosophy of o free application...
TRANSCRIPT
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Financial Aid 101- The Basics
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Agenda
•Financial aid history & philosophy ofoFree Application for Federal Student Aid
• Calculating financial aidoCost of attendance (COA)oExpected Family Contribution (EFC)
•Categories, types, and sources of financial aid
•Special circumstances
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1.
3.
2.
Economic
Social
National defense
History of Financial Aid
U.S. Congress passes laws that promote national prosperity:
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Philosophy of Financial Aid
•Students and their families have the primary responsibility to pay for postsecondary education expenses
Note: even if the student has left the household
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Philosophy of Financial Aid
•Making a college education more attainable
•Providing a consistent and equitable evaluation
•Ensuring eligible students benefit from financial assistance
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Federal Application Processing System
General Application Process
IRS Data
Match
FAFSA via Telephone
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FAFSA on the Web
Reasons to file electronically:
•Faster processing
•Built-in edits prevent costly errors
•Skip logic allows student and/or parent to avoid unnecessary questions
•Use Internal Revenue Service (IRS) data retrieval
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FAFSA on the Web
Reasons to file electronically:
•Easier corrections & updates
•Comprehensive instructions and “help” for common questions
•Check status on-line
•Simplified renewal application
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Frequent FAFSA Errors
•Social Security numbers
•Divorced/remarried 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
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• High school diploma or equivalent
• U.S. citizen or eligible non-citizen
• Valid Social Security number
• Enroll in an eligible degree or certificate program
• Register with Selective Service (males only)
• Sign a statement of educational purpose
Initial Student Eligibility
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• Not be in default or owe an overpayment on a grant
• Maintain Satisfactory Academic Progress (SAP)
• No drug convictions based on Department of Education standards
Maintaining Student Eligibility
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Calculating Financial Aid Eligibility
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What is Financial Aid?
Funds provided to students to help pay for postsecondary education expenses. Financial aid includes
• Grants• Scholarship• Work study• Loans
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Cost of Attendance (COA)
Note: Costs vary from institution to institution
Standard Costs Optional Costs
Tuition and fees Dependent care
Room and board Study-abroad
Books and Supplies Disability-related services
TransportationEmployment expenses for co-op study
Miscellaneous personal expenses Student loan fees
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•EFC is the measure of a family’s financial strength
•EFC is used to determine the student and parent ability to contribute towards the student’s cost of education
•Need analysis is the consistent formula used in determining a family’s EFC
Expected Family Contribution (EFC)
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Expected Family Contribution:The Counselor’s Role
Do• Encourage students at all income levels to
apply• Refer students to the college’s Net Price
Calculator*
Do not• Assess eligibility • Promise eligibility
* only an estimate not a guarantee
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Calculating EligibilityFor Need-Based Aid
Cost of Attendance (COA)- Expected Family Contribution
(EFC)
=Eligibility for Need-Based Aid
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Types of Financial Aid
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Program Award Amount Notes
Pell Grant Up to $5550 President’s budget request
FSEOG (grant) Between $100 and $4000 Funding at FY2011 levels
TEACH Grant Up to $4000Proposal: replace TEACH with Presidential Teaching Fellows
Iraq & Afghanistan Service Grant
Up to $5550 equal to Pell Grant – not to exceed the COA
Work Study Determined by each school Funding at FY2011 levels
Perkins Loan Up to $5500 (UG)/ $8000 (Grad)
Proposal: modify Perkins loans into unsubsidized Direct Loans
Subsidized Direct Loan
Between$3500- $5500 (based on UG grade level)
Elimination of subsidized loans for Graduate students
Calculating EligibilityNeed-Based Aid—2012-2013 Federal Programs
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California Programs Award Amount Cal Grant A Up to $12,192
Cal Grant B $1551 (1st yr) ; $13743
Cal Grant C Up to $3168 (non CCC) $576 (at CCC)
Chafee Grant Up to $5000
UC Student Aid $100 or more
State University Grant Covers full system-wide fees
Child Development Grant $1000 (CCC) or $2000 (4 yr)
Law Enforcement & Personnel Dependents Grant
Up to $11259 (for up to four years)
Robert C. Byrd Scholarship Up to $1500 (contingent on federal funding)
CCC Board of Governors Fee Waiver Covers all Enrollment Fees
Calculating EligibilityNeed-Based Aid-2012-2013 California Programs
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Students who do not demonstrate eligibility for need-based aid may still quality for:
•Federal unsubsidized Direct loan
•Federal Direct PLUS loan
•Private sector scholarships
•Institutional scholarships and employment programs
Calculating EligibilityNon Need-Based Aid
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Special Circumstances
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•If students and families have unusual circumstances, advise them to contact the financial aid office at the college they plan to attend; the office will advise them on how to proceed.
Special Circumstances
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Special Circumstances
•Cannot be reported on the FAFSA
•Contact the financial aid office for procedures
•School’s decision is final and cannot be appealed to Department of Education
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Special CircumstancesExamples•Change in employment statuso Dislocated workers/Loss of employment
•Change in parent marital status
•Medical expenses not covered by insuranceo Elder care expenses
•Unusual dependent care expenses
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What if…student related changes
•Student cannot obtain parent information
•Homeless individuals
Special CircumstanceExamples:
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The Financial Aid Office has authority to make a dependent student independent if unusual circumstances exist:
•An abusive family environment
•Abandonment by parents
•Inability to locate parents
Professional Judgment and Dependency Status
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Do not qualify as “unusual circumstances”
• Parents refuse contribution towards education
• Parents unwilling to provide information on the application or for verification
• Parents not claiming the students as a dependent for income tax purposes
• Student demonstrating total self-sufficiency
Professional Judgment and Dependency Status
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Remember…
If your student and family have unusual circumstances, advise them to contact the financial aid office at the college they plan to attend; the office will advise them of how to proceed.
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Questions?