Financing Your Education Shorewood High School: December 3rd , 2015 High School Nights E N G A G I N G T H E C U L T U R E , C H A N G I N G T H E W O R L D .
* What is financial aid? * Who is eligible? * How is eligibility for need based aid determined? * How do I apply? * Where does it come from? * What aid is available? Topics
Goal of Financial Aid The primary goal is to assist students with paying for their educational investment by: • Evaluating family’s ability to pay • Distributing limited resources in an equitable manner • Balancing gift and self-help aid
Vocab Lesson FAFSA: AFSA: EFC: EFC: Expected Family Contribution Free Application for Federal Student Aid NEE NEED D BASE ASED D AID: AID: COST COST OF OF ATT TTEND ENDANCE: E: Awarded based on the amount of financial T otal expense for the average resources undergraduate: tuition, room, books, incidentals, etc. Varies widely from ME MERIT RIT BASE ASED D AID: AID: college to college. Awarded for recognition (scholarships)
1) Enrolled at least half-time in an eligible program of study 2) Have a high school diploma or recognized equivalent 3) Pursuing a degree, certificate, or other recognized credential 4) U.S. citizen or eligible noncitizen 5) Registered with Selective Service (if male and required) 6) Valid Social Security Number (SSN) 7) May not be in default on a federal student loan 8) Must not owe an overpayment of federal grant or loan funds 9) Must be making satisfactory academic progress (as defined by school) Student Eligibility Criteria
How to Apply Free Application for Federal Student Aid (F (FAFSA) AFSA) is available on January 1 st each year. SPU’s priority deadline is Feb. 1 st st . File FAFSA in one of two ways: online at www www.f .fafsa.go afsa.gov Paper FAFSA Can use estimated tax information Be mindful of both admissions and financial aid deadlines
Available JANUARY 1 , 2016 Need Ne ed Hel elp? ? http://w ttp://www.r .readys ysetg tgrad.or .org/e /educato tors/g s/grad/c /coll llege-goal goal-washing ashington ton
FSA ID • Your electronic fsaid.ed fsaid.ed.go .gov signature • Both parent and student need an FSA ID • Can complete any time • Will be used to sign-in to FAFSA, Student Loans, and other Federal Aid websites
INCOME : Parent and student from base year ASSETS : Parent and student as of filing date ESTIMATE TAX INFORMATION to meet deadlines HOUSEHOLD SIZE / NUMBER IN COLLEGE AGE of the oldest parent What will the FAFSA ask for?
IRS Data Retrieval While completing your FAFSA, an applicant may submit real- time request to IRS for tax data. IRS will authenticate taxpayer’s identity If match is found, IRS will send real-time results to applicant in a new window Applicant chooses whether or not to transfer data to FAFSA on the web. Typically available FEBRUARY 2016 for 2016-17 FAFSA Participation is voluntary
File le your ur FAFS FSA by st fo Fe Feb. 1 st for r prio iority ity aid Financia ncial l aid will l disbur urse FAFS FSA is sent START 10 days prio ior to the schoo hools ls to th to the sta tart of f you u select ct each h quarter Comple lete all Your ur FAFS FSA A requir uirement nts result ults are listed on your ur sent to you u Offer Of via SA vi SAR Financia ncial l Aid Fin. Aid offic ice Offer will l be will l use FAFS FSA sent late se to determine ine March/ ch/early ly elig igib ibili lity April il The FAFSA Cycle
• 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 Common Errors We Find!
Department of Education may randomly select students for verification Verification Items can include: Household size Number in College Adjusted Gross Income (AGI) US taxes paid Certain types of untaxed income and benefits Verification Process
Are you a DREAM er? If you are a non-citizen, you may be eligible for Washington State Financial Aid by completing the WASFA application at www.readysetgrad.org/wasfa IT IS REALLY IMPORTANT TO COMPLETE THIS APPLICATION AS EARLY AS POSSIBLE !
Federal Need Formula
Need Varies Based on Cost 1 X 2 Y 3 Z EFC EFC EFC EFC EXPECTED FAMILY NEED COST OF ( VARIABLE ) ATTENDANCE CONTRIBUTION ( VARIABLE ) ( CONSTANT )
• DIRECT COSTS Tuition Room and board Fees • INDIRECT COSTS Books/supplies Cost of Attendance Incidentals Transportation • VARIES FROM COLLEGE TO COLLEGE
Expected Family Contribution (EFC) • Your EFC represents what a college will expect you to pay at a minimum for one year of a child's college • Two components - PARENT CONTRIBUTION - STUDENT CONTRIBUTION GY : the formula created by FED EDER ERAL METHOD ETHODOLOGY Congress to determine the EFC.
Calculates your estimated aid at a given institution. Uses the Cost of Attendance of the school and subtracts estimated gift aid to arrive at the NET COST of that school. This is available, at a minimum, to calculate eligibility for first-time/full- time Freshmen. Should be available at all schools. Net Price Calculator
YES , ALL STUDENTS MUST PROVIDE PARENTAL INFORMATION UNLESS : Unaccompanied Youth/Emancipated Minor Supporting a dependent child Active duty in the military Orphan/ward of the court 24 years old Married Veteran Graduate Student Do I need my parent’s info?
If my parents are divorced or separated, whose information goes on the FAFSA? DIV DIVOR ORCED: CED: If your parents are divorced, you would report the parent and st and steppar epparent ent (if applicable) whom you lived with longer during the 12 months prior to the date you complete your FAFSA. If you lived with your parents equally or didn’t live with either one, you should report who provided more financial support. SE SEPAR ARATION TION: : Same rules as divorced parent scenario, but your parents would need to be living in separate residences or be legally separated to mark this option on the FAFSA.
What do I do with 529 /Qualified Tuition Programs on the FAFSA ? 529 plans, like GET, are reported under • the investments section on the FAFSA. Dependent students who must report • parent information on the FAFSA should list 529 plans (student or parent-owned) as a parent asset. Independent students who are not • required to report parent information would only include 529 plans as a student asset if the student is the owner of the account. If someone other than the parent/s or • student is the owner, then distributions from the plan are reported on the following year’s FAFSA under “money received/paid on your behalf”.
Want to find out your EFC ? Calculates an www.f www .fafs afsa.g a.gov estimate of your family's EFC Instantly calculates eligibility for Federal aid Saves info: data submitted on the FAFSA4caster will automatically pre- populate on the official FAFSA for that school year
FAFSA represents a snapshot in time Loss of employment Reduction in wages or income Out of pocket medical expenses Private tuition expenses Special Circumstances
Required by some • private schools → UPS, Whitman and Heritage in WA state Determines eligibility for • non-government financial aid: institution's own grants, loans and scholarships List of schools on the • College Board website CSS Profile
Profile Differs from the FAFSA TES : PROFILE can be submitted October 1 • SUBMISSIO UBMISSION DATES FAFSA cannot be submitted before January 1. QUESTIONS : PROFILE contains questions specific • SPEC PECIF IFIC IC QUESTIONS to the school or program you're applying to; FAFSA contains the same questions for everyone. OGY : PROFILE determines your • DIF IFFERENT FERENT METHODOL METHODOLOGY financial need differently than the FAFSA, in general asking for more detailed information than FAFSA. OST : PROFILE costs $25 plus $16 for each school or • COST scholarship program selected; the FAFSA, as the name implies, is free. pr profileonlin ofileonline.colle e.college geboar board.com d.com
Sources of Financial Aid ES : Sources of Financial Aid FEDERA FEDERAL WASHI WAS HING NGTON ON COLLEG OLLEGES TE : PRIVATE PRIV ERNMENT : TE : grants, scholarships, GOVERNMENT GO ST STATE scholarships and grants, part-time Pell grants, work- scholarships, work loans jobs, loans study, Direct loans study
Let schools know about outside scholarship awards Continue seeking outside scholarships WHAT IS A SCHOLARSHIP ? MONEY awarded to students, based on achievements, that does NOT have to be paid back. AKA ALSO FREE MONEY Scholarships
Grants WHAT IS A GRANT ? AKA FREE MONEY MONEY awarded to students, based on need as determined by their FAFSA, that does NOT have to be paid back. Awards divided evenly between quarters
Federal Pell Grant AWARDED TO ELIGIBLE UNDERGRADUATES with exceptional need who are pursuing their first college degree ACTUAL AWARD AMOUNT BASED ON COA , EFC , AND ENROLLMENT STATUS Maximum award for 2015-16 = $5,775 Portable
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