Transcript
Financial Aid 101
Steve Booker, Director of Financial Aid
What is Financial Aid? Paying for college is primarily the
responsibility of the family Financial aid consists of funds provided to
students and families to help pay for postsecondary educational expenses
Most aid is need-based but some is based on academic talent or achievement (merit scholarships)
Types of Financial Aid Scholarships Grants Loans Employment
Gift Aid
Self-Help Aid
Sources of Financial Aid Federal government States Institutions Private sources
Scholarships Money that does not have to be paid
back Awarded on the basis of merit, skill,
or unique characteristic Considered ‘Non-Need’
Scholarship Sources State
Florida Bright Futures Awards Florida Academic Scholars Fund - $103 per credit Florida Medallion Scholars Award - $77 per credit Florida Vocational Gold Seal Award - $77 per credit, 2 yr
Institutional Merit-based awards Talent-based awards
Athletic aid Performance scholarships
Music, Art, Theatre, etc. Private Sources
www.fastweb.com www.scholarships.com
Grants Money that does not have to be paid back Usually awarded on the basis of financial
need In general, FAFSA is required
Grant Sources State- 2015-2016 Academic Year
Florida Resident Access Grant - $3,000 Florida Student Assistance Grant - $2,610 max
Federal- 2015-2016 Academic Year Pell Grant - $5,775 max Supplemental Ed Opportunity Grant (SEOG) -
$4,000 max Institutional Florida Pre-Paid Plan
Loans Borrow to help pay college expenses Repayment usually begins after education
(federal loans have a six or nine month grace period depending on loan type)
Only borrow what is really needed Look at loans as an investment in the future
Loan Sources Federal:
Federal Stafford Loan Subsidized versus Unsubsidized
Subsidized Maximums $3,500, $4,500, $5,500
Perkins Loan- no longer available, program expired October 2015
Federal Parent Loan for Undergraduate Students (PLUS loan)
Private: Always consider federal loans first!
EmploymentAllows student to earn money to help pay educational costs A paycheck; or Non-monetary compensation, such as room
and board
Employment Sources Federal College Work Study
Need-based Experiential Income is excluded from future FAFSA
Institutional work programs State work programs (Florida Work
Experience Program)
Applying for Financial Aid: the Free Application for Federal Student Aid (FAFSA)
A standard form that collects demographic and financial information about the student and family.
Filed electronically or using paper form.
Information used to calculate the Expected Family Contribution or EFC.
Colleges use EFC to award financial aid.
FAFSA
January 1st
What is the Expected Family Contribution (EFC) Factor Stays the same regardless of college Two components
Parent contribution Student contribution
Calculated using data from a federal application form (Free Application for Federal Student Aid) and a federal formula (EFC Formula)
College Costs
Direct Costs Tuition Required Fees Room and Board
Indirect Costs Books and Supplies Personal Misc
How is financial need calculated?
Cost of Attendance (direct and indirect costs)
– Expected Family Contribution (from FAFSA)
Gross Financial Need
Cost Comparison
Private University
60,000 (COA)- 10,000 (EFC) 50,000 (Need)
Public University
20,000 (COA)- 10,000 (EFC) 10,000 (Need)
TimelineJanuary/February Complete all admission requirements Complete federal tax returns Complete the FAFSAFebruary/March Complete verification of information (if necessary) Respond to any questions from the Financial Aid OfficeMarch/April Receive financial aid award letter Reply to offers of aidMay 1 Confirm admission decision Complete all steps necessary to secure offered aid you
intend to accept Notify Financial Aid Office of outside scholarships
Benefits of Filing Electronically
Avoid unnecessary questions Built-in edits to prevent costly errors Timely submission Detailed instructions and “help” Ability to check application status on-line Simplified application process in the future Use Internal Revenue Service (IRS) data
retrieval
IRS Data Retrieval
Submit real-time request to IRS for tax data IRS will authenticate taxpayer’s identity IRS sends real-time results to applicant Choose whether or not to transfer data
IRS Data Retrieval
Available early February 2016 for 2016–17 processing cycle
Participation is voluntary Reduces documents requested
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
Special Circumstances Cannot report on FAFSA Send written explanation to financial aid
office at each college Examples:
Change in employment status Medical expenses not covered by insurance Change in parent marital status Other
Net Price Calculator (NPC) Every college must provide an NPC More detailed, but it’s only an estimate
IMPORTANT: On the Horizon…Changes to the FAFSA for 2017-18
Students will be able to submit a 2017-18 FAFSA as early as October 1, 2016, rather than beginning on January 1, 2017
Students and parents will report income information from an earlier tax year (2015 instead of 2016)
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*Slide obtained from the U.S. Department of Education
Helpful Websites www.fafsa.gov File the FAFSA online. www.studentaid.ed.gov Information and links. www.fastweb.com Private scholarship
database. www.scholarships.com Outside scholarships. www.nasfaa.org/AnnualPubs/CashforCollege.PDF www.FloridaStudentFinancialAid.org http://www.fasfaa.org/cgs
**Portion of slides provided by NASFAA.
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