Financial Aid Overview Presented by: Jennifer Pr Prus usko Financial Aid Representative Office of Student Financial Assistance College of DuPage
Types of Financial Aid Available • Grants • Loans • Work Study/Student Employment • Scholarship
General Eligibility Requirements U.S Citizen or eligible non-citizen Valid Social Security Number Received a H.S Diploma or GED Be pursuing an eligible degree and/or certificate program Registered for Selective Service (males age 18 to 24) Maintain Satisfactory Academic Progress! Complete 67% of your classes Maintain a 2.0 GPA No Attendance = No Financial Aid!
What is A FAFSA?! • F ree A pplication for F ederal S tudent A id – apply online at www.fafsa.gov • Collects tax information, asset information, household size so as to gauge an individual family’s financial need • Used to determine eligibility for Federal grants, State grants, Federal loans, Federal work study, and scholarships. • EVERYTHING STARTS WITH THE FAFSA!!
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E xpected F amily C ontribution, EFC A calculation of what the family is expected to put forth towards your schooling for the academic school year The number is used as an INDEX to determine your eligibility for Federal Grants, State Grants, Federal Stafford loans, and Federal work study
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NEW for 2014-2015 Parent * information to be reported on the FAFSA Legal Parent Marital Status – at time of application Married or remarried 2 parents income reported (mother &father) (step-mother & father) (father & step-mother) Divorced/Separated 1 parent income reported Widowed 1 parent income reported Never married 1 parent income reported Unmarried AND both parents live together 2 parents income reported *The collection of information from both of a dependent student’s parents is statutorily supported in the section of the Higher Education Act (HEA) that provides the information to be used in the calculation of a dependent student’s Expected Family Contribution. HEA section 475 includes the terms “parent” and “parents” and not gender specific terms such as “mother” and “father.”
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What If Parent’s Are Divorced and parents do not live with each other . . . Whose Information is reported on the FAFSA?? • If your parents are divorced or separated (and they live in separate residences), answer the questions about the parent you lived with more during the past 12 months • If you did not live with one parent more than the other, give answers about the parent who provided more financial support during the past 12 months, or during the most recent year that you actually received support from a parent. • If this parent is remarried as of day you filed the FAFSA, answer the questions about that parent and your step-parent. General Rule – It’s the parent who is providing more than 50% of the student’s support – not necessarily the one who claims the student on their taxes
IRS Data Retrieval Who is eligible? Must have a Valid Social Security Number Must have filed a 2013 Federal Tax Return – depends on filing status Must have an unchanged marital status since December 31, 2013 Why you may not be able to use the IRS Data Retrieval? Tax Filing status is Married Filling Separately – if marital status is married Tax Filing Status is Single – if your legal parents live together and not married Tax Filing status is Head of Household – if marital status is married If you are married you cannot file as Head of Household * Filed an amended Tax Return Filed a Puerto Rican or foreign tax return Recently filed your taxes (within the last 2 weeks) * May be some exceptions
IRS Data Retrieval Why use the IRS Data Retrieval? Tax information is transferred directly by the IRS from your Tax Return Streamlines the Verification process Less paperwork to submit to the Financial Aid Office Cuts down on incorrect information What if you don’t use the IRS Data Retrieval? Create delays in receiving your award letter If selected for Verification you must contact the IRS and get a Tax Transcript. **Students and parents are strongly encouraged to use the IRS Data Retrieval for 2014-2015 **
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VERIFICATION . . . The process whereby certain information provided on the FAFSA is reviewed for accuracy and completeness: ◊ H OUSEHOLD S IZE ◊ Number of household members enrolled in college at least ½ time (excluding parents, if dependent) ◊ Tax & Income Information ◊ Income – ◊ Includes cash jobs regardless of W2 Form received (babysitting, cutting grass, etc) ◊ Adjusted Gross Income ◊ Tax Paid ◊ Untaxed income – i.e. untaxed IRA/pension distributions; education credits; IRA deductions; tax exempt interest; housing allowances, , veterans non-education benefits, money paid and/or received on the student’s behalf ◊ FAFSA questions 45 & 94 ◊ SNAP (Food Stamps) ◊ Child Support paid & received ◊ High School Diploma or GED ◊ Identity
VERIFICATION . . . ◊ Marital Status – at time of application ◊ Filing Status ◊ Single ◊ Head of Household ◊ Married Filing Separately ◊ Married Filing Jointly ◊ Exemptions ◊ Student can only be claimed on one tax return ◊ Assets/Investments STOP: All conflicting information must be resolved before financial aid can be awarded.
Investments • Include: Real estate, trust funds, money market funds, mutual funds, CDs, stocks, bonds, other securities, Coverdell savings, 529 college savings plan, refund value of 529 pre-paid tuition plans, commodities, etc. • Don’t include: Home you live in, life insurance, retirement plans (pension funds, annuities, non- education IRAs, Keogh Plans), UGMA and UTMA accounts for which you are the custodian, but not the owner Net Worth: Current value minus debt.
Special Circumstances 2014-2015 School year • Dislocated Worker question? • Change in Income » Income reported in 2013 is different than income in in 2014 » Fired, laid off, downsizing, etc. » Must be able to document extenuating circumstances » Just because you quit your job is not sufficient enough to qualify for a special circumstance • Decrease or loss of benefits » Decrease or loss of benefits » i.e. Child support, Unemployment, etc.
Types of Aid
Federal Pell Grant • 2013 – 2014 academic school year – Maximum yearly award is $5,645 based on full time enrollment – Minimum yearly amount is $706 based on full time enrollment – Covers tuition, fees, and books – Must be registered for at least three hours in an eligible academic program – Amount is dependent upon EFC – Not all students will qualify for the Pell Grant
Pell Grant Lifetime Eligibility Since the maximum amount of Pell Grant funding a student can receive each year is equal to 100%, the six-year equivalent is 600%. Example: Year 1 - 2014-2015 – Student uses 100% of their award Year 2 - 2015-2016 – Student uses 100% of their award Year 3 - 2016-2017 - Student uses 100% of their award Year 4 - 2017-2018 - Student uses 100% of their award Year 5 - 2018-2019 - Student uses 100% of their award Year 6 - 2019-2020 - Student uses 100% of their award Year 7 – No Pell Grant eligibility
Illinois MAP Grant • Need-based • Undergraduate student • Must be an Illinois Resident for ONE year prior to the start of the academic school year • Covers a prorated amount of the cost of tuition • Amount is dependent upon EFC and college you are attending • Not all students will qualify for the MAPGrant 2013-2014 Deadline was March 1, 2013!!!
Federal Stafford Direct Loan Program Subsidized Loan – Packaged first when possible Need based No credit check Government pays the interest – Variable interest of 3.86% Repayment begins 6 months after graduation or you drop below half time Freshman . . . . . .$3,500/academic school year Sophomore . . . . .$4,500/academic school year Junior/Senior . . . .$5,500/academic school year ** You can borrow no more than $23,000 TOTAL in Subsidized Loans as an Undergraduate student **
Federal Stafford Direct Loan Program Unsubsidized Loan Non - Need based No credit check You are responsible for the interest – Variable Interest of 3.86% Repayment begins 6 months after graduation or you drop below half time Freshman - $5,500 ( $3,500 sub) / school year Sophomore - $6,500 ($4,500 sub) / school year Junior - $7,500 ($5,500 sub) / school year ** You can borrow no more than $31,000 TOTAL in Stafford Loans as an Undergraduate student (no more than $23,000 can be Subsidized Loans) **
Federal Stafford Direct Loan Program Students will also need to: Accept or reject their award You are not required to accept the full loan award Complete Entrance Loan Counseling Can be completed online at www.studentloans.gov Complete a Master Promissory Note Can be completed online at www.studentloans.gov ***Loans must be paid back! They cannot be discharged, not even through bankruptcy. Borrow wisely and just what you need ***
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