Financial Aid Workshop

1
Financial Aid Workshop

• Heritage High School
• December 2, 2008

2
Admission Financial Aid Timeline

• August- NovemberCollege Search
• November- January.....College Applications
• December- March.Admissions Decisions
• January- February...Financial Aid Applications
• February- April...Financial Aid Decisions
• December- May 1st...College Choice

3
Cost of College

• Average college tuition and fees, 2008-09
  (www.collegeboard.com)
• Private 4 year 25,143
• Public 4 year 6,585
• Public 2 year 2,402
• Typical undergraduate student faces 20,000 in
  debt upon graduation

4
Myths About Paying for College

• College is too expensive
• There is less aid available now
• My familys income is too high
• My parents saved for college so we wont qualify
  for aid
• Im not a straight-A student

• If I apply for a loan, I have to take it
• Working will hurt my academic success
• Millions of scholarship dollars go unused
• My parents will have to sell their house
• Private schools are out of reach

5
Cost of Attendance (COA)

• Direct costs
• Indirect costs
• Direct Indirect costs Cost of Attendance
• Varies widely from college to college

6
Student Aid Report (SAR)

• Your SAR summarizes the data from your FAFSA and
  indicates your official Expected Family
  Contribution (EFC).

7
Expected Family Contribution (EFC)

• Amount family can reasonably be expected to
  contribute
• Stays the same regardless of college
• Two components
• Parent contribution
• Student contribution
• Calculated using FAFSA data and a federal formula

8
What is Financial Need?

• Cost of Attendance
• Expected Family Contribution
• Financial Need

9
Residency

• State residents often qualify for lower in-state
  tuition rates and state education grants.
• The average surcharge for full-time out-of-state
  students at public 4-year institutions is 10,867
  (www.collegeboard.com).

10
Undocumented Students

• Financial aid is generally not available for
  undocumented students. The majority of all
  student aid, including Federal student aid,
  requires the recipient to be a US citizen or
  permanent resident (green card holder) or an
  eligible non-citizen.
• Undocumented students will pay out-of-state
  tuition rates.
• There are several private scholarships available
  to undocumented students.

11
Dependency Status

• Student are considered dependent unless they
  answer yes to any of the following
• Were you born before January 1, 1986?
• Will you be working on a degree beyond a
  bachelor's degree, such as a master's or
  doctorate, in school year 2009-2010?
• As of the date you will be submitting the FAFSA,
  are you married?
• Do you have children who receive more than half
  of their support from you, or do you have
  dependents (other than your children or spouse)
  who live with you and receive more than half of
  their support from you, now and through June 30,
  2010?
• Are you an orphan or ward of the court or were
  you a ward of the court until age 18?
• Are you a veteran of the U.S. Armed Forces?
• Are you currently serving on active duty in the
  Armed Forces for other than training purposes?

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Understanding Who They Mean When They Say Parents

• If parents are both living and married to each
  other, answer the questions for both of them.
• If parents are separated, divorced, or were never
  married, answer the questions only about the
  parent with whom the student lived with most
  during the past 12 months. If time was spent
  equally with both parents, give answers about the
  parent who provided the most financial support.
• If parents are remarried, you must also include
  information about the stepparent.
• If student has a legal guardian, answer the
  questions about the guardian.

13
Categories of Financial Aid

• Need-based aid
• Awarded based on familys ability to pay
• Must file financial aid application(s)
• Non need-based aid (merit based)
• Academic, athletic, leadership scholarships based
  strictly on students achievements
• Allows schools to shape their student body

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Types of Financial Aid

• Scholarships
• Grants
• Loans
• Employment/ Work study

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Scholarships

• Money that does not have to be paid back
• Awarded on the basis of merit, skill, or a
  unique characteristic

16
Grants

• Money that does not have to be paid back
• Usually awarded on the basis of financial need

17
Loans

• Money students and parents borrow to help pay
  educational expenses
• Repayment usually begins after education is
  finished
• Only borrow what is really needed
• Look at loans as an investment in the future

18
Employment/ Work Study

• Allows student to earn money to help pay
  educational costs
• A paycheck
• Non-monetary compensation, such as room and board

19
Sources of Financial Aid

• Federal government
• States
• Private sources
• Civic organizations and churches
• Employers

20
Federal Government

• Largest source of financial aid
• Aid awarded primarily on the basis of financial
  need
• Must apply every year using the FAFSA

21
Common Federal Aid Programs

• Federal Pell Grant
• Academic Competitiveness Grant and National
  Science and Mathematics Access to Retain Talent
  Grant
• Teacher Education Assistance for College and
  Higher Education Grant

• Federal Supplemental Educational Opportunity
  Grant
• Federal Perkins Loan
• Federal Work-Study
• Stafford Loans
• PLUS Loans

22
States

• Residency requirements
• Award aid on the basis of both merit and need
• Use information from the FAFSA
• Deadlines vary by state check paper FAFSA or
  FAFSA on the Web site

23
Virginia State Aid

• Tuition Assistance Grant (VTAG)
• College Scholarship Assistance Program (CSAP)
• Commonwealth Award (COMA)

• Virginia Part-Time Assistance Program (PTAP)
• Higher Education Teacher Assistance Program
  (HETAP)
• Virginia Guaranteed Assistance Program (VGAP)

24
Private Sources

• Foundations, businesses, charitable organizations
• Deadlines and application procedures vary widely
• Begin researching private aid sources early

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www.finaid.org
26
www.fastweb.com
27
www.salliemae.com
28
www.connection.naviance.com
29
LCPS Scholarship Handbook
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Civic Organizations and Churches

• Research what is available in community
• To what organizations and churches do student and
  family belong?
• Application process usually spring of senior year
• Small scholarships add up!

31
Employers

• Companies may have scholarships available to the
  children of employees
• Companies may have educational benefits for their
  employees

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Protect Yourself from Scholarship Scams

• Rules of Thumb
• If you must pay money to get money, it might be a
  scam.
• If it sounds too good to be true, it probably is.
  
• Nobody can guarantee that you'll win a
  scholarship.

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Free Application for Federal Student Aid (FAFSA)

• A standard form that collects demographic and
  financial information about the student and
  family
• May be filed electronically or using paper form
• Available in English and Spanish

34
FAFSA

• Information is used to calculate the Expected
  Family Contribution or EFC
• EFC- The amount of money a student and his or her
  family may reasonably be expected to contribute
  towards the cost of the students education for
  an academic year
• Colleges use EFC to award financial aid

35
FAFSA

• May be filed at any time during an academic year,
  but no earlier than the January 1st prior to the
  academic year for which the student requests aid
• For the 2009-10 academic year, the FAFSA may be
  filed beginning January 1, 2009
• Colleges may set FAFSA filing deadlines

36
FAFSA on the Web www.fafsa.ed.gov

• 2009-10 FAFSA on the Web available on January 1,
  2009
• FAFSA on the Web Worksheet
• Used as pre-application worksheet
• Questions follow order of FAFSA on the Web

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FAFSA on the Webwww.fafsa.ed.gov
38
FAFSA on the Web

• Good reasons to file electronically
• Built-in edits to prevent costly errors
• Skip-logic allows student and/or parent to skip
  unnecessary questions
• More timely submission of original application
  and any necessary corrections
• More detailed instructions and help for common
  questions
• Ability to check application status on-line
• Simplified renewal application process

39
Student Financial Aid PIN

• Web site www.pin.ed.gov
• Sign FAFSA electronically
• Can request PIN before January 1, 2009
• Not required, but speeds processing
• May be used by students and parents throughout
  aid process, including subsequent school years

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Pin Request Websitewww.pin.ed.gov
41
FAFSA Follow-Up

• You have successfully submitted your FAFSA
  electronically.
• Now Federal Student Aid will process your
  application and send you a Student Aid Report
  (SAR).
• An electronic copy of your SAR is also made
  available to the schools you've listed on your
  FAFSA.
• Note Social Security Number on applications

42
What Happens Now?

• Check Status of a Submitted FAFSA or Print
  Signature Page You may check the status of your
  application at any time, but they recommend
• 1 week after submission - if you used a PIN to
  sign your application
• 2-3 weeks after submission - if you printed,
  signed and mailed a signature page.
• View and Print Your Student Aid Report You can
  view your SAR once they have received all
  required signatures and processed your FAFSA or
  correction form. Note you must have a PIN to
  view your SAR.

43
What Happens Now?

• Make Corrections to a Processed FAFSA If you
  find you've made a mistake after submitting your
  FAFSA, you will have to wait until after it has
  been processed to make corrections. Corrections
  can be made online through Corrections on the
  Web.
• Note you must have a PIN to correct your FAFSA
  data online.
• Add or Delete a School Code If you want to add
  or remove any of the school codes that you listed
  on your FAFSA, you will have to wait until it has
  been processed.
• Note you must have a PIN to add or delete school
  codes.

44
Help!

• FAFSA on the Web Customer Service
• For assistance while using FAFSA on the Web, call
  1-800-4-FED-AID (1-800-433-3243). If you are
  hearing-impaired and have questions, contact the
  TTY line at 1-800-730-8913.
• From 8 am midnight, you can also receive help
  live, online, by selecting the Live Help button
  conveniently located within the pages of the
  application.

45
Super Saturday

• Free assistance in completing the FAFSA online
• Saturday, January 31, 2009
• 10 am 3 pm
• Lord Fairfax Community College (Middletown
  campus)
• Washington-Lee High School (Arlington)

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Frequent FAFSA Errors

• 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

47
Special Circumstances

• Change in employment status
• Medical expenses not covered by insurance
• Change in parent marital status
• Unusual dependent care expenses

48
Special Circumstances

• Cannot report on FAFSA
• Send explanation to financial aid office at each
  college
• College will review special circumstances
• Request additional documentation
• Decisions are final and cannot be appealed to
  U.S. Department of Education

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CSS Profile

• Complete Profile beginning Oct. 1, 2008 for
  2009-10 school year
• Watch for early deadlines
• 25 registration fee includes first school, 16
  for each additional college (fee waivers
  automatically considered)
• FAFSA must also be completed to be considered for
  Federal Student Aid

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CSS Profilehttps//profileonline.collegeboard.com

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CSS ProfileSample of Participating Institutions

• Check website for complete list
• Hampden-Sydney College
• Patrick Henry College
• Washington and Lee University
• American University
• George Washington University
• Georgetown University
• Johns Hopkins University
• Dickinson College
• University of Pennsylvania

52
Calculate Financial Aid Possibilities

• www.finaid.org/calculators/finaidestimate.phtml
• This form is used to calculate the Expected
  Family Contribution (EFC) and financial need, and
  to estimate your student financial aid
• www.fafsa4caster.com
• FAFSA4caster will help you get an early start on
  the financial aid process by providing you with
  an early estimate of your eligibility for federal
  student aid

53
Financial Aid Award Letters

• After you submit your application for financial
  aid, you will receive an award letter from the
  colleges to which you applied, typically in early
  to mid-April.
• A financial aid package is a collection of
  different types of financial aid from multiple
  sources. It is intended to help you fill the gap
  between your ability to pay and college costs.
• After you receive the award letter, you may be
  asked to return a signed copy of the letter in
  which you accept or reject each source of
  financial aid.

54
Unique Ways to Lower Costs

• Transfer from Community College to 4-year college
• Academic Common Market
• Arrangement among Southern states allowing
  students to pay in-state tuition rates at
  out-of-state schools while studying in select
  programs not available at Virginia public
  institutions
• http//www.schev.edu/Students/AcademicCommonMkt.as
  p

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Unique Ways to Lower Costs

• Tuition discount for some schools in neighboring
  states
• i.e. Frostburg State University (MD), Concord
  University (WV), Indiana University of
  Pennsylvania (PA)
• Graduate in 3 years
• Payment plan
• ROTC
• Early repayment of loans
• Pay more than minimum payment on loans
• Consolidate loans

56
Remember

• Fill out FAFSA ASAP after 1/1/09
• Do not wait until you file taxes- estimate!
• You must fill out a new FAFSA every year
• Apply directly to the financial aid office of the
  school you are applying to
• Your financial aid officer is your ally
• Watch college scholarship deadlines (may differ
  from application deadlines)

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Filling out the FAFSA on the Web Worksheet
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FOTW Worksheet Section 1

• General student information
• Name
• Social Security Number
• Drivers license number

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FOTW Worksheet Section 1

• General student information
• Citizenship
• Marital status
• State and date of legal residence
• Selective Service registrationstatus

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FOTW Worksheet Section 1

• General student information
• Drug conviction status
• Parents educational background
• Plans for the 2009-10 school year
• Self-help preferences

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FOTW Worksheet Section 2

• Students dependency status
• If all No responses, student is dependent
• If Yes to any question, student is independent

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FOTW Worksheet Section 3

• Data for parents of dependent students
• Parents marital status
• Date of parents marital status
• E-mail address (optional)

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FOTW Worksheet Section 3

• Data for parents of dependent students
• Social Security Number
• Last name
• Date of birth

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FOTW Worksheet Section 3

• Data for parents of dependent students
• State and date of legal residence

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FOTW Worksheet Section 3

• Financial data for parents of dependent students
• Tax filing status and return type
• If parents filed or will file a 1040, were they
  eligible to file a 1040A or 1040EZ?

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FOTW Worksheet Section 3

• Data for parents of dependent students
• Did anyone in the parents household receive
  benefits from any of the federal programs listed?
• Dislocated worker status

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FOTW Worksheet Section 3

• Financial data for parents of dependent students
• Adjusted Gross Income (AGI) for 2008
• Income earned from work
• Income tax paid for 2008

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FOTW Worksheet Section 3

• Data for parents of dependent students
• Exemptions claimed for 2008
• Household size
• Number in college

69
FOTW Worksheet Section 3

• Financial data for parents of dependent students
• Complete the tables on page 8 (left-hand side)
• Additional financial data
• Untaxed income

70
FOTW Worksheet Section 3

• Asset data for parents of dependent students
• Cash, savings, and checking
• Net worth of investments
• Net worth of business and investment farms

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FOTW Worksheet Section 4

• Financial data for student (and spouse)
• Tax filing status and return type
• If student (and spouse) filed or will file a
  1040, was he or she eligible to file a 1040A or
  1040EZ?

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FOTW Worksheet Section 4

• Financial data for student (and spouse)
• Adjusted gross income (AGI) for 2008
• Income earned from work

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FOTW Worksheet Section 4

• Receipt of veterans educational benefits
• Type of benefits that will be received

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FOTW Worksheet Section 4

• Financial data about the independent student (and
  spouse)
• Household size
• Number in college
• Receipt of benefits from one of the federal
  programs listed
• Dislocated worker status

75
FOTW Worksheet Section 4

• Data about the student (and spouse)
• Income tax paid for 2008
• Exemptions for 2008

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FOTW Worksheet Section 4

• Financial data for student (and spouse)
• Complete the worksheets on page 8 (right-hand
  side)
• Additional financial information
• Untaxed income

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FOTW Worksheet Section 4

• Asset information for the student (and spouse)
• Cash, savings, and checking
• Net worth of investments
• Net worth of business and investment farms

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FOTW Worksheet Section 5

• List up to 10 colleges to receive FAFSA data
• Federal School Code for each college
• Housing plans for each college

79
Signatures

• Required
• Student
• One parent (dependent students)
• Format
• Electronic using PIN
• Signature page
• Paper FAFSA

80
FAFSA Processing Results

• Central Processing System (CPS) notifies student
  of FAFSA processing results by
• Paper Student Aid Report (SAR) if paper FAFSA
  was filed and students e-mail address was not
  provided
• SAR Acknowledgement if filed FAFSA on the Web
  and students e-mail address was not provided

81
FAFSA Processing Results

• CPS notifies student of FAFSA processing results
  by
• E-mail notification containing a direct link to
  students online SAR if students e-mail was
  provided on paper or electronic FAFSA
• Student with PIN may view SAR on-line at
  www.fafsa.ed.gov

82
FAFSA Processing Results

• Institutional Student Information Record (ISIR)
  sent to colleges listed on FAFSA approximately 10
  to 14 days after FAFSA submitted
• College reviews ISIR
• May request additional documentation, such as
  copies of federal tax returns

83
Student Aid Report

• Review data for accuracy
• Update estimated information when actual figures
  are available

84
Making Corrections

• If necessary, corrections to FAFSA data may be
  made by
• Using FAFSA on the Web (www.fafsa.ed.gov) if
  student has a PIN
• Updating paper SAR (SAR Information
  Acknowledgement cannot be used to make
  corrections) or
• Submitting documentation to colleges financial
  aid office