FINANCIAL AID 101 Kristen Isaksen Associate Director of Financial - PDF document

9/25/2018 FINANCIAL AID 101 Kristen Isaksen Associate Director of Financial Aid Monmouth University Topics We’ll Cover  Terms & tools  Filing the 2019-20 Free Application for Federal Student Aid (FAFSA) – NEW FAFSA webpage & app  Types & sources of aid  Aid programs  Tips 1

9/25/2018 What is Financial Aid?  Financial aid is money that helps a student pay for education expenses at a postsecondary school (e.g., college, vocational school, graduate school). The FAFSA 2

9/25/2018 Federal Methodology Federal Methodology is the formula created by Congress to determine the Federal Expected Family Contribution (EFC). Expected Family Contribution  Index number that the financial aid office uses to determine aid eligibility  Stays the same regardless of college choice  The EFC is not : – The amount of money you will pay – The amount of federal aid you will receive 3

9/25/2018 Expected Family Contribution Cost of Attendance Direct Expenses Indirect Expenses  Tuition and fees  Books and supplies  Room and meal plan  Transportation (on campus)  Personal expenses 4

9/25/2018 Definition of Need Cost of Attendance (COA) - Expected Family Contribution (EFC) = NEED Financial Need Examples Cost of Attendance $40,000 - EFC $15,000 = Need $25,000 Cost of Attendance $65,000 - EFC $15,000 = Need $50,000 5

9/25/2018 Net Price Calculator  All institutions have a net price calculator on their website. – Generally found on the financial aid page. – Complete for each institution in which you are interested. – Provide income information. – Provides you with an estimate of the aid you are eligible for and the net price at that specific institution. FAFSA4caster fafsa.gov 6

9/25/2018 About the FAFSA 2019-20  File as early as October 1, 2018.  Prior-Prior-Year format – Use 2017 income – Some questions, like marital status & assets, are as of the day the FASFA is completed.  Check with college(s) for filing deadline.  Studentaid.gov/resources File the FAFSA fafsa.gov  File every year for each student in college 7

9/25/2018 FAFSA on the Web General Eligibility Requirements  Have a high school diploma or equivalent.  Must be enrolled or accepted for enrollment in an eligible program of study leading to a degree, certificate, or other recognized credential.  Must be U.S. citizen or eligible non- citizen. 8

9/25/2018 General Eligibility Requirements  Must have valid Social Security Number (SSN) – www.ssa.gov  Must be registered with Selective Service (if male and required) – www.sss.gov FSA ID fsaid.ed.gov  Username and password – Legal signature on the FAFSA – Access to other U.S. Department of Education sites – Student and 1 parent need an FSA ID – Email address and mobile phone number cannot be used with more than one FSA ID 9

9/25/2018 FSA ID fsaid.ed.gov SSN  Name  Date of Birth  Challenge questions  Email  Mobile Phone Number  myStudentAid Mobile App  Android or Apple  Must have FSA ID  Save, complete submit the FAFSA  IRS DRT available for 19-20 10

9/25/2018 Completing the FAFSA IRS Data Retrieval Tool (DRT) 11

9/25/2018 IRS Data Retrieval Tool (DRT) IRS Data Retrieval Tool (DRT) 12

9/25/2018 Data Retrieval Tool (DRT)  Tips – Schools and state agencies can view the data – Screening question for IRA/pension rollovers – Joint filers manually enter income earned from work – Do not change the IRS data – Do NOT update the FAFSA to 2018 income! Signing the FAFSA 13

9/25/2018 FAFSA Confirmation Page FAFSA and State Aid NJ residents remaining in NJ  The New Jersey Higher Education Student Assistance  Authority (NJHESAA) collects several additional items not specifically requested on the FAFSA. FAFSA confirmation page – blue box.  – Start your state application to apply for New Jersey state- based financial aid. 14

9/25/2018 FAFSA and State Aid Earned Income Credit (EIC)  – A tax credit, not your total earned income Untaxed Social Security Income  Driver’s License State/Number (student only)  SSN, last name, first initial (parents only)  Process  Free Application for Federal Student Aid (FAFSA) – Use the DRT  Complete Institutional forms (if required)  Receive Student Aid Report (SAR)  Receive/Return Award Letter  Provide Additional Documentation  Process Student Loans 15

9/25/2018 Sources of Aid  Institutional – Merit – Need  Federal  State  Other Tax Credits American Opportunity Tax Credit  Lifetime Learning Tax Credit  Tuition and Fees Deduction  Student Loan Interest Deduction  16

9/25/2018 Types of Financial Aid Scholarship  – Does not have to be repaid – Awarded on the basis of merit, skill or a unique characteristic Grants  – Does not have to be repaid – Usually awarded on the basis of financial need Loans  – Money that is borrowed and repaid with interest Employment  – Student earns money to help pay educational costs – Paycheck or non-monetary compensation, such as room and board Grants and Scholarships  Federal – Federal Pell Grant – Federal Supplemental Educational Opportunity Grant (SEOG) – Teacher Education Assistance for College and Higher Education (TEACH) Grant – Iraq and Afghanistan Service Grants 17

9/25/2018 Grants and Scholarships  STATE – New Jersey Tuition Aid Grant (TAG) – NJSTARS and NJSTARS II – Educational Opportunity Fund (EOF) www.njgrants.org More Grants and Scholarships  Private Sources – Think local and global – Use the Counseling Office’s Resources – Internet Resources  www.fastweb.com 18

9/25/2018 Federal Direct Loans  Federal Direct Loan Program – Borrowed by the student – No cosigner, no credit check – Must file the FAFSA – Entrance counseling and master promissory note must be completed Federal Direct Loans – Subsidized – Unsubsidized – Need Based – Not need based – Interest rate is fixed – Interest rate is fixed at 5.05% for 18-19 at 5.05% for 18-19 – No interest accrual – Accrues from time during in-school and of disbursement grace periods – 1.066% origination – 1.066% origination fee fee $5500 maximum for first-year students with no  more than $3500 in the subsidized loan 19

9/25/2018 Supplemental Loans  Institutional Loans  Federal Parent PLUS  New Jersey College Loans to Assist State Students (NJCLASS)  Private/Alternative Loans Employment  Federal Work Study  Institutional Work Programs  Off-Campus Jobs 20

9/25/2018 Tuition Payment Plans  Not a loan – Enrollment fee  Make tuition payments in monthly installments  Fit payments into your monthly budget  Various payment options Tips  READ, READ, READ – All mail/email promptly – All instructions carefully – Review before submitting  Maintain copies of all documents  Do not sign your son or daughter’s name/FSA ID to financial aid documents  Involve your student  Consult a financial aid officer 21

9/25/2018 Questions to ask a Financial Aid Administrator Are scholarship and grant awards  renewable? What criteria must be met? What are the policies for work-study  positions? Is a job guaranteed? How are outside scholarships treated?  How can I use financial aid to pay for  books? Are there any banking options on campus?  What if there’s been a job loss, loss of  untaxed benefit, or other special circumstance? Questions  Like us on Facebook www.facebook.com/MUFinAid  Follow us on Twitter  twitter.com/MUFinAid 22