FINANCIAL AID 101 Claire Alasio Associate Vice President for Enrollment Management Director of Financial Aid Monmouth University
Financial aid is money that helps a student pay for education expenses at a postsecondary school (e.g., college, vocational school, graduate school).
Evaluate a family’s ability to pay for educational costs. Distribute limited resources in an equitable manner. Identify additional resources. Provide counseling to students and parents. Processing and record keeping.
Complete Federal Income Tax Return Complete an application Free Application for Federal Student Aid (FAFSA) www.fafsa.gov CSS Profile www.profileonline.collegeboard.com
www.pin.ed.gov
You may need to answer more questions than those listed on the worksheet. Skip logic will remove unnecessary questions. Some questions are optional, but it is recommended that you answer all of them- especially the driver’s license question.
www.fafsa.gov
Allow approximately 2 weeks after electronic filing of taxes and 4-6 weeks for paper filing to ensure the data is available. Using this process will reduce documents requested by financial aid office-provided data is not changed. The DRT is not available to applicants with a recent change in marital status. The DRT may also be used to make FAFSA corrections. The DRT does not fill in all of the income questions. Review the income section of the FAFSA before submitting!
Applicants may submit a real-time request for IRS tax data. The IRS will authenticate the taxpayer’s identity. If a match is found, the IRS will send the results in real- time (a new window will open). Applicants may choose whether or not to transfer the data.
New question Tax Filing Status Single Head of Household Married, filing jointly Married, filing separately Qualifying widow(er) Don’t know
Changes due to the Supreme Court overruling the Defense of Marriage Act Parent(s) now referred to as Parent 1/Parent 2 Refers to father/mother/stepparent Legal parents biological and/or adoptive Gender no longer a consideration
New marital status for legal parent(s) Never married Unmarried and both parents living together Married or remarried Divorced or separated Widowed
Complete Federal Income Tax Return Complete an application Free Application for Federal Student Aid (FAFSA) www.fafsa.gov CSS Profile www.profileonline.collegeboard.com Receive Student Aid Report (SAR) Receive/Return Award Letter
Cost of Attendance (COA) - Expected Family Contribution (EFC) = NEED
Tuition and Fees Room and Board Books and Supplies Transportation Miscellaneous Personal Expenses Computer Study Abroad Dependent Care Expenses related to a disability
The amount a family can reasonably be expected to contribute from all sources Formula determined annually by Congress. Based on student and parent(s)’ income and assets Colleges use the EFC to award financial aid. Stays the same regardless of college choice.
Cost of Attendance $28,000 - EFC $15,000 = Need $13,000 Cost of Attendance $55,000 - EFC $15,000 = Need $40,000
Complete Federal Income Tax Return File Free Application for Federal Student Aid (FAFSA) www.fafsa.gov Complete Institutional forms (if required) Receive Student Aid Report (SAR) Receive/Return Award Letter Provide Additional Documentation Process Student Loans
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.
Must have valid Social Security Number (SSN) www.ssa.gov Must be registered with Selective Service (if male and required) www.sss.gov
Institutional Merit Need Federal State Other
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
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
STATE New Jersey Tuition Aid Grant (TAG) NJSTARS and NJSTARS II Educational Opportunity Fund (EOF) www.hesaa.org
Private Sources Think local and global Use the Counseling Office’s Resources Internet Resources www.fastweb.com
Federal Direct Loans Subsidized Need based No interest accrual during in-school or deferment periods Fixed rate of 3.86% for 13-14 Market-based fixed rate Adjusted annually by Congress
Federal Direct Loans Unsubsidized Not need based Accrues interest from disbursement Fixed 3.86% interest rate Maximum award amount for first year students: $5500 with no more than $3500 in Subsidized funds
Need based No interest accrual during in-school and grace periods (9 months) 5% fixed interest rate during repayment Limited funding Maximum is $5,500 per year, will vary by school
Institutional Loans Federal Parent Loan for Undergraduate Students (PLUS) New Jersey College Loans to Assist State Students (NJCLASS) Private/Alternative Loans
Federal Work Study Institutional Work Programs Off-Campus Jobs
Not a loan Enrollment fee Make tuition payments in monthly installments Fit payments into your monthly budget Various payment options
BEWARE OF DEADLINES!! Read all mail promptly Read instructions carefully, review before submitting anything! Maintain copies of all documents Do not sign your son or daughter’s name to financial aid documents Involve your student Consult a financial aid officer
American Opportunity Tax Credit Lifetime Learning Tax Credit Tuition and Fees Deduction Student Loan Interest Deduction
www.fafsa4caster.ed.gov
All institutions are required to post a net price calculator on their website. It helps current and prospective students, families, and other consumers estimate the individual net price of an institution of higher education for a student. Based on full time, first degree/certificate-seeking undergraduate students.
Federal Student Aid www.studentaid.ed.gov National Association for Student Financial Aid Administrators www.nasfaa.org New Jersey Higher Education Student Assistance Authority www.hesaa.org FinAid www.finaid.org
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