TASFAA High School Workshop 20062007

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TASFAA HIGH SCHOOL WORKSHOP 20072008 Your
guide to helping students and parentsfind
financial aid for college.
Presented by
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Agenda
Click to add text
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Introduction
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What is financial aid?

• Need-based aid
• Merit-based aid

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Need-based aid

• Types
• Grants
• Work-Study
• Student loans
• Sources
• Federal
• State
• Institutional
• Private

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Merit-based aid

• One type
• Scholarships
• Two main sources
• Institutional
• Private

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Goal of financial aid

• Help students pay for college
• Achieved by
• Evaluating family's ability to pay for
  educational costs, and
• Distributing limited resources in a fair and
  equitable manner.

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General eligibility criteria
Grants Work-study Loans

• Enrolled in degree or certificate program
• Not enrolled in elementary or secondary school
  while in college

• Valid SSN
• HS diploma/GED
• U.S. citizen/national (federal aid)

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General eligibility criteria (cont.)
Grants Work-study Loans

• Eligible non-citizen
• Registered with Selective Service

• Demonstrate need, if required
• Maintain academic progress

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Undocumented students HB 1403 / SB 1528

• Certain non-citizens qualify for
• Texas financial aid
• Texas resident (in-state) tuition
• Non-citizen eligibility for state aid
• Lived in Texas the 36 months prior to high school
  graduation or completion of GED and
• Lived in Texas the 12 months prior to enrollment
  (this can overlap the 36-month period) and
• Complete an affidavit indicating their intent to
  apply for Permanent Resident status as soon as
  they are eligible to do so.

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Applying for financial aid and FAFSA types
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Free Application for Federal Student Aid (FAFSA)

• The application for federal aid
• Many states and schools use it for their own aid
• Collects students and parents financial and
  demographic information
• Information used to calculate Expected Family
  Contribution (EFC)

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Two FAFSA formats

• Electronic (FAFSA on the Web)
• www.fafsa.ed.gov
• Most common and easiest way to apply
• Check status and make corrections online
• Electronic signature
• www.pin.ed.gov
• Paper
• Beginning 2008-2009, students must call the
  Federal Student Aid Information Center at
  1-800-4-FED-AID to request a paper FAFSA
• May also download pdf FAFSA at www.FederalStudentA
  id.ed.gov

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FAFSA types

• Standard application
• English and Spanish
• Renewal application
• For previous-year applicants
• English only
• Online only

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FAFSA for 2007-2008
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Priority deadlines

• Deadlines are determined by each state.
• In Texas, each school sets its own priority
  deadline.
• Apply in January to make most deadlines in Texas.

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The process
US Department of Ed (Calculates EFC)
Submit FAFSA
SAR to student
College Private/Public/2-Year
Award student
Notify student
Loan Process
School releases funds
School determines need
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Dependency status

• Determines whose information is included on
  FAFSA
• Student (and spouse)
• Student and parents
• Questions on FAFSA determine dependency status
• Department of Education and IRS criteria to
  determine dependency are different.

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Special circumstances

• Assessed on a case-by-case basis
• Student contacts financial aid office at their
  college
• Circumstances that may call for a reevaluation of
  students status include
• Reduction in income
• Catastrophic illness that resulted in depletion
  of assets or increase in debt
• Dependency issues

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Common errors

• Incomplete applications
• No signature
• Typos
• Transposing numbers and decimal point errors
• Missed deadlines
• Not submitting supplemental applications or
  documents
• School applications
• Verification documents

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Texas Application for State Financial Aid (TASFA)

• New form available for students ineligible to
  complete the FAFSA (e.g., certain international
  students including undocumented students)
• Available online at www.collegefortexans.com/resid
  ency/TASFA.doc
• Sample copy in workbook

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Need analysis and need
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Need analysis

• To the extent they are able, parents and student
  have primary responsibility to pay for that
  students education

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Definition of need
Private
Private
Public
Public
2-year
2-year
EFC 7k
EFC 7k
8k
4k
14k
21k
11k
15k
COA (Variable)
EFC (Constant)
Need (Variable)
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Cost of Attendance (COA)

• Tuition and fees
• Room and board
• Books and supplies, equipment, transportation,
  and miscellaneous personal expenses
• Loan fees
• Study abroad costs
• Dependent or elder care expenses
• Expenses associated with a disability
• Expenses for cooperative education program
• Cost of obtaining a first professional license or
  certificate

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Expected Family Contribution (EFC)

• Income
• Assets/savings
• Family size
• Age of older parent
• Number of family members in college
• Not to include parents

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Awarding
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Awarding

• Packaging
• Award notification
• Type of aid
• Grant, work-study, or loan
• Source of aid
• Federal, state and/or institutional aid
• Amount of award
• May need to be signed and returned to school
• Evaluating award offers

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Average sample aid package4-year, public
university

• Budget (COA) 11,746
• Expected Family Contribution (EFC) 1,350
• Need 10,396
• Federal Pell Grant 2,700
• State Grant 1,000
• Subsidized Federal Stafford Loan 3,500
• Federal Perkins Loan 700
• Federal SEOG 500
• Unmet Need 1,996
• Unmet need up to COA could be covered by
  unsubsidized Stafford and/or PLUS.

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Case studies
1

• Jessicas parents have filed separate tax
  returns. They are not
• separated nor have any intention of divorcing.
  How should Jessica
• complete the FAFSA on parental information? Which
  parents
• information should she include on the FAFSA?
• Jessica is required to include both parents
  information. AGI, taxes
• paid and earned income, if any, need to be
  combined.

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Case studies
2

• A student has filed as head of household for tax
  purposes including
• his brother as a foster child. The student and
  his brother live with
• their parents. When completing the FAFSA, the
  student asks how
• he should answer the question, Do you have legal
  dependents.
• How could you advise the student?
• Advise student that if the child did live with
  his parents, it is very
• likely that the parents provided more than 50 of
  support and not
• the student, therefore, he should answer no.

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Case studies
3

• April is a 20-year-old student who has been
  living on her own since
• she graduated from high school two years ago. Her
  parents
• divorced five years ago. She keeps in contact
  with her father more
• so than with her mother. She lived with him
  before she moved.
• Should she be considered independent? Should she
  provide
• fathers or mothers information?
• April is considered a dependent student. She does
  not qualify for a
• dependency override. Since she has more contact
  with her father,
• she needs to provide his information on her
  application.

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Case studies
4

• Jeannie, 18, does not work and has a
  three-month-old baby.
• Jeannie lives with her boyfriend and his parents.
  She does not
• consider him her husband. Her parents help
  provide support for the
• baby. Is she independent? Besides her own
  information, whose
• information should also be provided on the
  application?
• Since Jeannie does not consider herself
  common-law and she
• does not provide more than 50 support for the
  baby, she is
• dependent and needs to provide her parents
  information.

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Financial aid programs
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Federal financial aid programs(Excluding loans)

• Federal Academic Competitiveness Grant (ACG)
• Federal SMART Grant
• Federal Pell Grant
• Federal SEOG (FSEOG)
• Federal Work-Study

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Maximum awards for 2007-2008

• Academic Competitiveness Grant (ACG)
• 750 for 1st year students
• 1,300 for 2nd year students
• SMART Grant
• 4,000 for 3rd and 4th year students

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Maximum awards for 2007-2008

• Federal Pell Grant
• 4,310 for students with Estimated Family
  Contribution (EFC) of zero.
• Full time award for academic year
• FSEOG
• 4,000 for students who are Pell eligible only
• - Maximum award for academic year
• - Depends on availability of funds
• Federal Work-Study
• Amount determined by school
• - Must work to earn
• - Depends on availability of funds

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Other federal programs

• AmeriCorps
• Veterans Educational Benefits
• Military Service Scholarships (ROTC)
• Bureau of Indian Affairs
• Vocational Rehabilitation

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State programs

• Texas Public Education Grant (TPEG)
• Toward EXcellence, Access, and Success (TEXAS)
  Grant
• Texas Educational Opportunity Grant (TEOG)
• Texas Work-Study

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Maximum awards for 2007-2008

• Texas Public Education Grants
• Students financial need.
• TEXAS Grants
• 4,750 at 4-year institutions and state colleges
  1,730 at community colleges 2,650 at public
  technical colleges.
• TEOG
• 5,170 at state colleges 1,470 at community
  colleges 2,650 at public technical colleges.
• Texas College Work-study
• Students financial need.

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Eligibility requirements for state programs

• Must be
• Texas resident
• Demonstrate need
• Registered for Selective Service
• College/University awards funds
• Awards vary at each institution depending on
  allocation and program restrictions
• Other requirements as specified by program

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State exemptions

• Temporary Assistance for Needy Families (TANF)
  Exemption Program
• Valedictorian Exemption Program
• Foster Care or Adopted Students Exemption
  Program
• Blind Students Exemption Program
• Deaf Students Exemption Program

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State exemptions, cont.

• Children of MIA/POWs Exemption Program
• Orphans of the U.S. Military or Texas National
  Guard Exemption Program
• Surviving spouse and dependent children of
  deceased public servants
• Children of professional nursing program faculty
  and staff
• Clinical preceptors and their children

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Exemption requirements

• Every exemption has different
• requirements for eligibility.
• See Texas Tuition Exemption Programs
• in workbook for details

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Student loans
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Federal student loan programs

• Federal Family Education Loan Program (FFELP)
• Subsidized and Unsubsidized Stafford
• PLUS
• William D. Ford Federal Direct Loan Program
  (Direct)
• Subsidized and Unsubsidized Stafford
• PLUS
• Federal Perkins Loan Program

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Stafford Loan (FFELP and Direct)

• Subsidized

Unsubsidized

• Need-based

• Not need-based

• Interest
• Fixed 6.8
• Student responsible for all
• Can be capitalized

• Interest
• Fixed 6.8
• Governmt pays during
• In-school
• Grace
• Deferment
• Student pays during
• Repayment

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Stafford Loan repayment and annual amounts

• Repayment
• Begins six months after graduation or dropping
  below half time
• Maximum Annual Amounts
• 3,500 1st year undergrad
• 4,500 2nd year undergrad
• 5,500 3rd, 4th or 5th year undergrad
• 8,500 graduate and professional

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Stafford Loan aggregate amounts

• Dependent undergraduates
• 23,000 (subsidized and unsubsidized)
• Independent undergraduates
• 46,000
• No more than 23,000 in subsidized
• Graduates and professionals (including amounts
  borrowed as undergraduate)
• 138,500
• No more than 65,000 in subsidized

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Federal PLUS Loan

• Borrowers are parents of dependent undergraduate
  students and graduate/professional students
• Loan limits
• Annual limit cost of attendance less other aid
• Aggregate limit none
• Interest rate fixed at 8.5 (FFELP) 7.9
  (Direct)
• Up to 3 origination fee up to 1 federal
  default fee
• (TG currently subsidizes 1 default fee)
• Repayment begins final disbursement
• First payment due no later than 60 days after
  final disbursement

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Federal Perkins Loan

• Interest rate 5 fixed
• Subsidized
• 9-month grace period
• Annual limits
• 4,000 for undergraduates
• 6,000 for graduate/professional
• Aggregate limits
• 8,000 for 1st and 2nd year undergraduates
• 20,000 for other undergraduates
• 40,000 for graduate/professional

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Texas student loans and alternative loan programs

• State
• College Access Loan Program (CAL)
• Texas B-On-Time Loan
• Funding limited
• Alternative education loan programs
• Private consumer loans
• Usually a last option after other more economical
  sources are exhausted

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Scholarships and educational tax benefits
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Scholarships

• Federal
• Robert C. Byrd
• State
• Early High School Graduation Scholarship
• Scholarships for Professional Nursing Students
• Scholarships for Vocational Nursing Students
• Institutional
• Private

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Scholarship tips

• What committees look for
• How students enhance their chances
• Be realistic
• Common scholarship myths
• Millions unclaimed
• Scholarship search services

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Educational tax benefits

• Hope Credit
• Lifetime Learning Credit
• Tuition and Fees Deduction
• Student Loan Interest Deduction
• www.irs.gov
• Publication 970

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Money management

• Establish a monthly budget
• Step 1 income
• Step 2 expenses
• Step 3 discretionary income
• Avoid budget traps
• Pay bills
• Open a checking account
• Choose a financial institution
• Credit card tips
• Managing credit wisely

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Admissions information

• Texas Common Application (public schools)
• Paper
• Electronic
• www.applytexas.org
• Top 10 eligible for automatic college admission
• Texas Higher Education Coordinating Board Rules
  Chapter 5, Subchapter A. General Provisions 5.9
  Uniform Admission Policy
• Texas Mentor (private schools)
• Private school applications and information
• www.texasmentor.org

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Helpful information
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Helpful numbers

• Texas Financial Aid Information Center
• [phone]
• Texas Higher Education Coordinating Board
• [phone]
• Department of Education
• [phone]

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Helpful Web sites

• www.AIE.org college planning and financial aid
  info for counselors, students, parents, educators
• www.CollegeForTexans.com state-specific
  information about higher education, financial aid
• www.ed.gov/studentaid/ - federal site on student
  financial aid

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• Please turn in all evaluations.
• Thank you,
• and have a great 2008!