Kaitlyn Ka tlyn Lamb amber ert Assistant Director of Fi Fina nanci ncial al Ai Aid: d: Financial Aid Breaking It Down klambert@lfcc.edu 20 2020 20-21 21
Wh What is is Fi Fina nanci ncial al Ai Aid? d? – Funds provided to students and their families to help pay for postsecondary educational expenses.
My Myth th: : My parents make too much money, so I won’t qualify for aid. Reality lity: There is no income cut-off to qualify for federal student aid. Many factors – such as family size and year in school – are taken into account. Remember: Filling out the FAFSA automatically applies you for state funds and possibly from your school as well. In fact, some schools wont even consider you for any of their scholarships until the FAFSA is submitted.
Wh What at is is Co Cost t of Att f Attend endanc ance? e? (COA (C OA) Estimation of expected costs Direct Costs Indirect Costs Transportation Tuition and fees Miscellaneous Room and board personal expenses Books and supplies
Wh What at is is Ex Expec pecte ted d Fa Fami mily ly Co Contribut ntribution? ion? (E (EFC FC) Stu tude dent nt co contr trib ibution tion Measurement ment of of student’s and family’s ability ty to to pay pos osts tseconda condary edu duca cati tiona onal expense nses Parent t co contr trib ibution ution (for dependent students)
Wh What at is is Fi Fina nancial ncial Ne Need? ed? Co Cost st of atte tendance ndance (C (COA) A) – Exp xpected ected family mily cont ntributio ribution n (E (EFC) C) = Fina nanc ncial ial ne need
My Myth: : Federal Student Aid is just “free money” like grants. Reality lity: Federal student aid includes three different kinds of financial help: grants, low-interest loans, and work-study funds .
Ty Types pes of of Fi Fina nancial ncial Ai Aid Scholarships Loans Self-Hel Help p Gift t Aid Aid id Work-Study Grants
So Sources urces of of Fi Fina nancial ncial Ai Aid Fede dera ral Gov overnm nment ent Employe loyers rs Sta tate tes Col ollege e and d Priva vate te Sou ource ces Un Univ iversities ersities
Fed Federal eral Go Government vernment Largest source of financial aid Aid awarded primarily on the basis of financial need Must apply each year using the FAFSA Eligibility requirements must be met
Federal Fed eral St Student udent Ai Aid d Pr Prog ograms rams Federal Supplemental Iraq Afghanistan Educational Federal Pell Grant Service Grant Opportunity Grant (FSEOG) Teacher Education Assistance for Federal Direct Federal Work-Study College and Higher Student Loans (FWS) Education (TEACH) (Direct Loans) Grant Federal PLUS Loans
St States tes Residency requirements usually apply Award aid on the basis of both merit and need Use information from the FAFSA and/or state aid applications Deadlines vary by state
Co Coll lleges eges & Un & Universi iversiti ties es Award aid on the basis of both merit and need Aid may be gift aid or self-help aid Use information from the FAFSA and/or institutional applications Deadlines and application requirements vary by institution
Pr Priv ivate ate So Sources urces Foundations, businesses, churches, civic, and charitable organizations Deadlines and applications procedures vary Begin researching private sources early
Em Empl ployers oyers Companies may have scholarships available to the children of employees Companies may have educational benefits for their employees
One of the fastest growing colleges in the We offer 70 degrees & Virginia Community certificates. College System (VCCS) LFCC LF Commercial Co mmercial Br Break eak Any Questions? Designated as a Military Friendly Campus for the We offer 37 guaranteed past 10 years by G.I. Jobs admission agreements magazine
Fr Free e Ap Application plication for r Fe Federal eral St Stud udent ent Ai Aid FA FAFSA FSA
My Myth: : The FAFSA form takes forever to fill out, and it’s really hard to do. Reality lity : If you’ve got 30 minutes to spare, you’re good! Because that’s about how long it takes to fill out the FAFSA form. It’s also note nearly as hard as you might think.
FA FAFS FSA – Collects demographic and financial information – Information used to calculate the expected family contribution (EFC) – Colleges use EFC to award financial aid 2020/21 FAFSA Opens: October 1, 2019 – Available in English and Spanish For Fall 2020 & Spring 2021 – May be filed at any time during an academic year, but no earlier than October 1st prior to the academic year for which the student requests aid – Most colleges set FAFSA filing deadlines
Wher Wh ere e to to beg begin? in? – Collect Student & Parent documents – Social Security Number – Citizenship Status – Marital Status Make sure the SSN is – 2018 tax, income, and other financial information typed in correctly! – Selective Service registration – Dislocated worker status – Untaxed Income – Highest education level completed by father/mother – Assets
My Myth: : My parent’s aren’t US Citizens, so there’s no way I’ll get aid. Realit lity : Your parent’s citizenship status is NOT a factor, and the FAFSA form won’t even ask about it. If your parent’s don’t have SSNs, they must enter 000-00-0000 in the FAFSA
St Step ep 1: 1: Cr Creat eate e an an FS FSA A ID ID – Student and at least one parent MUST create one. – Used for FAFSA completion and allows access to certain U.S. Department of Education websites – May be used by students and parents throughout financial aid process, including subsequent school years – Only the owner should create a FSA ID – Apply at https://fsaid.ed.gov/npas/index.htm Parents with multiple college-bound children can use the same FSA ID for all!
St Step ep 2: 2: Co Comp mplete lete th the e FA FAFSA FSA – Go to www.fafsa.gov – Secti tions s of th the e FAFSA SA – Student Demographics – School Selection – Dependency Status – Parent Demographics – Financial Information – Sign & Submit – Confirmation
Wh What t Cou ounts nts as s an Ass n Asset? et? – Asset net worth means current value of the assets minus what is owed on those assets. – Assets inclu lude: – Money in cash, savings, and checking accounts – A 529 college savings plan account that is owned by the student or the student's parent – Businesses – Investment farms – Other investments, such as real estate (other than the home in which you live), UGMA and UTMA accounts for which you are the owner, stocks, bonds, certificates of deposit, etc. – Assets do not inclu lude: – The home in which you live – UGMA and UTMA accounts for which you are the custodian, but not the owner – The value of life insurance – Retirement plans (401[k] plans, pension funds, annuities, non-education IRAs, Keogh plans, etc.)
52 529 9 Pl Plans ans as as an n As Asse set – They are an asset of the owner ( not the beneficiary because the owner can change the beneficiary at any time ) except when the owner is a dependent student, in which case they are an asset of the parent. – When the owner is some other person ( including a noncustodial parent ), distributions from these plans to the student count as untaxed income, as “money received.” – When a parent owns a plan for a child and the parent is filing a FAFSA as a student himself, the plan counts as an asset on his FAFSA.
My Myth: : I can’t file my FAFSA in October because I haven’t applied to any schools Reali lity ty: Actually, you CAN complete your FAFSA before submitting any college or career school applications. You’ll need to list at least one, but add every school you are considering (up to 10 per correction).
Wa Ways ys to to Ap Appl ply myStu tuden dentA tAid id App FAFSA FSA on th the Web eb(FOTW FOTW) Pap aper PDF
Be Benef nefit its s of usi f using ng FO FOTW TW or or my myStu tude dent nt Ai Aid – Built-in edits to prevent costly errors – Skip-logic allows student and/or parent to skip unnecessary questions – Option to use Internal Revenue Service (IRS) Data Retrieval Tool to import tax data – More timely submission of original application and any necessary corrections – More detailed instructions and “help” for common questions – Ability to check application status online – Simplified application process in the future
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