1/4/2014 14-15 FA Night1. Free Application for Federal Student Aid (FAFSA) IRS Data Retrieval Tool Special Circumstances Cost of Attendance and.
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14-15 FA Night 1
2014-15 What you need to know
about Financial Aid
1/4/2014
Free Application for Federal Student Aid (FAFSA)
IRS Data Retrieval Tool Special Circumstances Cost of Attendance and EFC Categories, types, and sources of financial
aid
Topics
Collects family’s personal and financial information used to calculate student’s EFC Amount of money a student and his or her family may reasonably
be expected to contribute towards the cost of the student’s education for an academic year
Completed each year after January 1st
However, most W-2s will not be available until the end of January
Use IRS Data Retrieval to download income information from your 2013 Federal Tax Return◦ IRS will not start accepting and processing the Federal Tax Forms
until sometime between January 28 and February 4, 2014.◦ From what we hear IRS Data Retrieval will be available starting
February 2, 2014◦ If the student and parent file electronically, IRS Data Retrieval
would be available 2 weeks after they filed◦ If the student and parent file by paper, IRS Data Retrieval would
be available 6-8 weeks after they filed
FAFSA Deadlines
PIN Registration Website:
www.pin.ed.gov
Sign FAFSA electronically
Not required, but speeds processing
May be used by students and parents throughout aid process, including subsequent school years
Student Login
Chose the 2014/15 Year
Definition of Marriage:
For both students and parents-marriage now includes a same sex couple who are married under the authority of a state (or foreign country) that permits same-sex marriage, even if the state (or foreign country) in which they now live does not recognize same-sex marriage.
FAFSA Modifications (cont’d)
Never Married Unmarried and both parents living together
Biological Parents or Same Sex Parents (regardless of state authority related to marriage) should use this response if appropriate
Married or Remarried Divorced or Separated Widowed
Marital Status
Biological parents
Adoptive parents
Stepparents, if they are married to the student’s biological or adoptive parent and the student is included in their household size
Who is a Parent?
Foster parents
Legal guardians who have not adopted the student
Relatives who have not adopted the student
Stepparents who have not adopted the student and who would be the only person providing parental information
Who Is NOT a Parent?
While completing FAFSA, student and parent may submit real-time request to IRS for tax data
IRS will authenticate taxpayer’s identityNeed to remember the exact address and spelling of names
on the Federal Tax Return
If match found, IRS sends real-time results to applicant in new browser window
Applicant chooses whether or not to transfer data to FAFSA
Available early February 2014 for 2014–15 processing cycle
Participation is voluntary Reduces documents requested by financial aid office
IRS Data Retrieval Tool
A student or parent who cannot remember the address used on their 2013 Federal Tax Return.
Marital Status-Unmarried and both parents living together A married student or married parents who did not file
joint returns but instead filed separate tax returns A married student or married parent who files as Head of
Household is not eligible to use the IRS Data Retrieval tool◦ This would mean they filed separate tax return◦ However, a single student or single parent who files as Head of
Household is eligible to use the IRS Data Retrieval tool A student or parent(s) who had a change in marital status
after December 31, 2013 The student or parent(s) filed and amended tax return
Cannot Use IRS Data Retrieval
Students and parent can start completing their FAFSA In order to use the IRS Data Retrieval Tool the Federal
Tax Return has to be completed and processed by the IRS◦ However, most W-2s will not be available until the end of
January◦ IRS will not start processing the Federal Tax Forms until
sometime between January 28 and February 4, 2014.◦ If the student and parent file electronically, IRS Data Retrieval
would be available 2 weeks after they filed◦ If the student and parent file by paper, IRS Data Retrieval
would be available 6-8 weeks after they filed From what we hear IRS Data Retrieval will be available
starting February 2, 2014
IRS Data Retrieval Tool Available
Both Student and Parent Sign
Confirmation Number Data Release Number (DRN) EFC estimate Pell Grant and Direct Loan estimates Option for parents to transfer parent’s info
to another application for another child Option for some states to apply for State
Grant
Confirmation Page
CPS notifies student of FAFSA processing results by: E-mail notification containing a direct link to student’s
electronic SAR if student’s e-mail was provided on paper or electronic FAFSA
Paper SAR sent if no student e-mail provided Student with FSA PIN can view SAR online at
www.fafsa.gov Students should review SAR data for accuracy
and correct any errors Required to update estimated tax information
when actual figures become available
FAFSA Processing Results
Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA is submitted
College reviews ISIR◦ May request additional documentation:
Verification proof of homelessness or ward of the court status proof that a sibling is enrolled in college
◦ Will generally not send you an award letter unless an Admissions Application has been submitted
FAFSA Processing Results (cont’d)
Students should only correct information that was reported incorrectly when he or she completed the FAFSA
Corrections to FAFSA data may be made by: Using FAFSA on the Web (www.fafsa.gov) if student has a
FSA PIN
Updating and mailing paper SAR
Submitting documentation to school’s financial aid office
Corrections required if “estimated income” used for initial filing
Making Corrections
Institutions will call it either Special Circumstances or Professional Judgment
Families cannot report special circumstances on the FAFSA
Professional judgment exercised after the family files the FAFSA and completes verification (if required)
Professional judgment exercised by the financial aid administrator
Special Circumstances: Basics
Dependency OverrideAbuse at home Abandonment by parents
Parents Refuse to Provide Information◦ Student only eligible for Unsubsidized Loan
Income Reduction Non-Recurring Income Unusually High Day Care Expenses Unusually High Medical or Dental Expenses
Special Circumstances
Each Institution has their own process Institutional Forms Documentation from third party:
Teacher Social worker Member of clergy Court Law enforcement
Documentation will be Required
www.fafsa.gov
Completing the FAFSA available at: http://studentaid.ed.gov/fafsa
2014/15 FAFSA on the Web Worksheet: http://studentaid.ed.gov/sites/default/files/2014-15-fafsa-worksheet.pdf
FAFSA Completion Resources
Direct Cost + Indirect Cost = COA
Direct costs TuitionFeesBooksRoom and Board if On Campus
Indirect costs Room and Board if Off Campus or With ParentTransportationPersonal Expenses
COA varies widely from college to college
Cost of Attendance (COA)
www.fafsa4caster.ed.gov
An index used to calculate eligibility for aid
Stays the same regardless of college
Two components –Parent contribution –Student contribution
Calculated using FAFSA data and a formula specified in law
Expected Family Contribution (EFC)
Cost of Attendance (COA)
– Expected Family Contribution
(EFC)
= Financial Need
Financial Need
Mix of grants and self-help aid Future award packages
Reviewing and Comparing Award Letters Direct Costs School
ASchool B
School C
Tuition $6,093 $10,368 $11,772
Fees $1,524 $784.74 $410
Books $1,100 $2,200 $1,350
Room (On Campus) $3,060 $4,027 N/A
Meal Plan $2,885 $4,244 N/A
- Grants $5,645 $5,645 $5,645
- Scholarships $1,500 $4,500 $1,500
Net Price (Out of Pocket or Loans?) $7,517 $11,479 $6,387
Types of Aid Gift Aid
Scholarships
Money that does not have to be paid back
Awarded on basis of merit, skill, or unique
characteristic
Grants
Money that does not have to be paid back
Usually awarded on the basis of financial need
Self-Help Aid
Federal Work Study
LoansMoney students and parents borrow to help
pay college expenses
Repayment usually begins after education is finished
Only borrow what is really needed
Look at loans as an investment in the future
Types of Aid (cont’d)
The Federal Pell Grant Program provides need-based grants to low-income undergraduate students.
Grant amounts depend on the student’s:
Expected Family Contribution (EFC)
Enrollment status (full or part-time)
Attendance status (full academic year or less)
Pell Grant maximum award per academic year:
$5,645 (2013-2014)
* Maximum award may be subject to change pending legislative budgetary adjustments
Federal Pell Grant
The Federal Supplemental Educational Opportunity Grant (FSEOG) Program provides need-based grants to low-income undergraduate students (campus-based aid).
Grant recipients must be: Pell Grant-eligible Current award amounts are from $100 - $4,000 Not all colleges participate in the FSEOG
program and funds depend on availability at the college
FSEOG
The Teacher Education Assistance for College and Higher Education Grant Program (TEACH) provides assistance to students who intend to teach in a public or private elementary or secondary school that serves students from low-income families.
Grant recipients must be: Enrolled in an institution that participates in the TEACH
Grant Program Enrolled in coursework that is necessary to being a
career in teaching Able to demonstrate certain academic achievements
TEACH Grant
The Teach Grant:
Is not based on financial need Is available to both undergraduate and graduate students Provides the following maximum award $4,000 (2013-14)
TEACH Grant recipients must sign an ‘Agreement to Serve’ which states that the student will:
Teach at least four years in a public or private elementary or secondary school
Teach full-time in a high-need field Teach in a school that serves students from low-income
families If the teaching obligation is not completed, the entire
TEACH Grant must be repaid as a Direct Unsubsidized Stafford Loan
TEACH Grant (cont’d)
Students whose parent or guardian died as a result of military service in Iraq or Afghanistan after September 11, 2001, may be eligible for additional Title IV aid.
Additional Student Eligibility Requirements:
Less than 24 years old Enrolled in college at least part-time at the time
of the parent’s or guardian’s death
Iraq/Afghanistan Service Grant
Provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses (campus-based)
Eligible employers (On-campus or off-campus employment) Schools Federal, state or local public agency Private nonprofit organization Community service activities
Students are paid at least federal minimum wage
Not all colleges participate in the Federal Work-study program and funding depends on availability at the college
Federal Work-Study
Your college is the lender
Payment is owed to the college that made the loan
Interest charged on this loan is 5% Funds depend on financial need and availability at the
college
Undergraduate students – up to $5,500 a year
Graduate and professional degree students – up to
$8,000 Not all colleges participate in the Federal Perkins Loan
program
Federal Perkins Loan
Subsidized Loans Government PAYS the borrowers accrued
interest while you are attending college and other eligible periods
Based on Financial Need Fee 1.072% on each loanInterest currently 3.86%Undergraduate students Amount: $3,500-$5,500 If do not complete degree within 150% of the
published length of your lose interest subsidy benefits on all Direct Subsidized loans and only eligible for Direct Unsubsidized loans
Direct Stafford Loans (for undergraduate)
Unsubsidized Loans The borrowers is responsible for the interest
for the life of the loan NOT Based on Financial Need Fee 1.072% on each loanInterest currently 3.86%Undergraduate and graduate students
qualify Amount: $5,500-$12,500
Direct Stafford Loans (for undergraduate) (cont’d)
PLUS loans originate through the William D. Ford Federal Direct Loan Program (Direct Loans).
Loan characteristics: For parents of dependent students; parent is the
borrower and loan cannot be transferred into student’s name
Borrowers may receive loan amounts up to, but not exceeding the college’s ‘Cost of Attendance’
Borrower is responsible for all the interest Borrower must not have a negative credit history
Direct PLUS Loan (parent)
(July 1, 2013 to June 30, 2014) *
Fee +Interest Rate Repayment Additional
Info
Federal Perkins No Fee5% Fixed
9 Months after school
Direct Stafford Loan
1.072% Fee +3.86% Fixed*
6 months after school
Subsidized: no interest charged while in school Unsubsidized: interest accrues while in school
Federal Parent PLUS loan
4.288% +6.41% Fixed*
May be deferred until 6 months student drop ½ time or 60 days after loan is fully disbursed
* Fee & Interest Rates subject to change July 1 each award year
Federal Loan Programs
http://sdos.sdbor.edu/
Limited number of scholarships available Being designated as a Regents Scholar does not
automatically qualify the student for the South Dakota Opportunity Scholarship (SDOS).
Amount-$1,000 each year 1st – 3rd, $2,000 4th year Reminder – To establish initial eligibility, the student must
complete an application form (now available in electronic format) and submit this to the college he or she will attend.
Due Date (complete application package): Recommended:
Fall Term-June 1st Spring Term-November 1st
Actual Deadline: Fall Term-September 1st Spring Term-January 15st
South Dakota Opportunity Scholarship
1. Be a resident of South Dakota at time of high school graduation.
2. Have an ACT composite score of 24 or higher before the beginning of post-secondary education. If using a SAT score, the sum of the verbal and mathematics scores on the SAT must be at least 1090.
3. Complete high school course requirements with no final grade below a "C" (2.0 on a 4.0 scale) and a cumulative high school GPA of 3.0 on a 4.0 scale (grade of "B") prior to graduation (Note: One unit of high school credit equals 1 year of instruction).
4. If ACT composite score is at least 28 and meets the ACT college readiness benchmarks scores equaling or exceeding 18 for English, 21 for Reading, 22 for Math, and 24 for Science, the curriculum requirements specified in section 3 above are not required.
5. Attend a university, college, or technical school accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools and that provides instruction from a campus located in South Dakota.
6. Enter into the program1. within 5 years of high school graduation2. within 1 year of the student's release from active duty military service (if that
release is within 5 years of the date of the student's high school graduation)3. transfer from a regionally accredited university, college, or technical school
located outside of South Dakota may do so within two years following high school graduation and be eligible to receive partial award.
South Dakota Opportunity Scholarship (cont’d)
http://www.state.sd.us/dakotacorps/default.html
Limited number of scholarships availableGraduate from an accredited South Dakota high school
with a Grade Point Average (GPA of) 2.8 or greater on a 4.0 scale.
Have a composite ACT score of 24 or greater (or the SAT equivalent).
Apply for the Dakota Corps Scholarship for a school period that begins within one year of high school graduation, or within one year of release from active duty of an active component of the armed forces. Deadline: applications must be postmarked by February 1st
Amount: Amount equal to tuition and fees for 16 undergraduate credits hours (per fall and spring semester) at a SD public four-year college or actual tuition and fees for same time frame and credits whichever is less
Dakota Corp Scholarship
Attend a participating South Dakota college as an undergraduate student in a program that will prepare the student to work in a critical need occupation. Note: not all South Dakota colleges participate. See website for participating colleges.
Be a U.S. citizen or U.S. national. Agree, in writing, to stay in South Dakota and work in a
critical need occupation after graduation for as many years as the scholarship was received, plus one yearTeacher (HS Math, Science, Career and Technical Education)Teacher (Elementary or Secondary Special Education)Accountant/AuditorEngineer (Except Mining) Information TechnologyRegistered Nurse
Dakota Corp Scholarship (cont’d)
http://www.sdbor.edu/students/JumpStart.htm
◦ Resident of South Dakota◦ Student graduates from High School within 3 years or less from
a public high school in South Dakota ◦ No student who enrolls in a high school for all or any part of a
fourth year is eligible for the Jump Start Scholarship program. ◦ For 2013/14 eligible for $1866.45 for their first year of post
secondary enrollment, distributed equally amount the terms of the year
◦ Within one year of graduating from high school, excluding any time served on active duty in the armed forces of the United States, enroll in a college, university, or technical school accredited by the North Central Association of Colleges and Schools that provides instruction from a campus located in South Dakota
◦ Deadline September 1st
South Dakota Jump Start Scholarship
Complete the Free Application for Federal Student Aid
Institutionally awarded Institutions may have their own application Awarded by institution to those students
who have the highest amount of unmet need on the campus
$500-$2000 per student Student must be a South Dakota resident Maintain Satisfactory Academic Progress
State: South Dakota Need Based Grant Program
Foundation Private nonprofit foundation Created when Education Assistance Corporation
affiliated with Great Lakes Higher Ed Corporation http://www.sdeducationaccess.org/
Mission
To expand access to postsecondary education
Programs
Grants to Postsecondary Students College Access Advising
South Dakota Education Access Foundation (SDEAF)
Corporation for National and Community
Service
U.S. Department of Veterans Affairs
Reserve Officers Training Corps (ROTC)
Bureau of Indian Affairs (BIA) Grants
Vocational rehabilitation benefits
U.S. Department of Health and Human Services
(HHS)
Other Federal Aid Programs
Foundations, businesses, charitable organizations, civic organizations, churches, etc.
Deadlines and application procedures vary widely
Begin researching private aid sources early
Your College may also have scholarships available
Private Sources
Research what is available in community
To what organizations and churches do student and family belong?
Application process usually occurs during spring of senior year
Small scholarships add up!
Civic Organizations and Churches
Companies may have scholarships available to the children of employees
Companies may have educational benefits for their employees
Employer-sponsored tuition plans
Employers
Other family resources
Home equity loans
Private/alternative loans
Tuition savings plans (529 plans)
Other Sources of Aid
Always use free searches!
Other resources available
Guidelines on when and how to apply
Applications, essays, videos, etc.
DO NOT PAY FOR A SCHOLARSHIP SEARCH
Typical On-line Scholarship Search
www.fafsa4caster.ed.gov
http
://studentaid.gov/types/grants-scholarships/finding-scholarships
http://www.careerinfonet.org/scholarshipsearch/Scholars
hipCategory.asp?searchtype=category&nodeid=22 www.fastweb.com
http://www.collegescholarships.org/
http://www.scholarships.com/
http
://www.aie.org/paying-for-college/Financial-aid/How-to-Find-More-Scho
larships.cfm
Financial Aid Web-based Resources (cont’d)
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