2016 Financial Aid Night Gary Schindler Dean of Students Riverland.

2016Financial Aid NightGary SchindlerDean of StudentsRiverland

Application Process

FAFSA

Tips

Programs2

74% OF ALL JOB OPENINGS IN MINNESOTA BY 2018 WILL REQUIRE A COLLEGE EDUCATION

Take note…..

Have you had the conversation?

2015-2016 College Costs (Tuition and fees)

Two-year technical/community college $5,500State university $8,000-$8,500University of Minnesota $13,000Private college/university $25,000-$40,000Private career college/university $15,000-$20,000

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Cost of Attendance

• Tuition and fees• Books, supplies and equipment• Room and board• Transportation• Personal expenses• Typically, COA = Bottom line: T&F + Books + $10,000

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Free Application for Federal Student Aid - FAFSA

• Apply on-line at: www.fafsa.gov• 2016-2017 FAFSA available January 1, 2016

– The earlier, the better (for some types of aid)• Check colleges’ web sites for priority deadlines

– Can complete with estimated tax figures and make corrections later

– TIP #1 The earlier…the better – Tip #2 Do you know…the college’s priority deadlines?– Tip #3 Use estimated tax figures..make corrections later– Tip #4 Do you know…institutional application?– Tip #5 Do you know..Freshman Scholarship process?

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FAFSA on the Web (FOTW) www.fafsa.gov

• Apply• Retrieve IRS data • Reapply • Apply for FSA ID• Find college codes• Check status of

FAFSA• Make corrections• Add additional

colleges• Print SARs

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FAFSA NOTE:

Customized…IRS download and

Assets

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Federal Student Aid ID(FSA ID) • FSA ID• Required for both student and parent (if

dependent) to electronically sign FAFSA• Is username and password• User also has 5 challenge questions

– 2 from a list of possible questions– 2 created by user– 1 with important date

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FAFSA on the WebIRS Data Retrieval• If applicant indicates filed taxes IRS data interface

• NOTE…IRS data available:– 2 to 3 weeks after federal tax forms filed electronically

(70% of filers)– 8 to 11 weeks after paper federal tax forms filed (some

have experienced longer delays)

• If there is unpaid tax obligation to IRS, tax returns won’t be processed until May or June 2016

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FAFSA on the Web IRS Data Retrieval

• IRS data retrieval can be used:– While completing original FOTW– As a later correction to FOTW

• Applicants will receive automatic reminder emails to go back to FOTW and use IRS data retrieval if:– They provided estimated tax figures on

the FOTW– Provided actual tax figures on FOTW but

did not use IRS data retrieval

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Items Populated on FOTW from IRS Data Retrieval

• Adjusted gross income• U.S. income taxes paid• Untaxed IRA distributions, pensions• Education credits• IRA deductions• Tax exempt interest• Student’s and parents’ income from work if:

– Marital status is other than married– If ‘married’, total income from work from tax

form will appear on screen and will need to separated by student or parent for entry into FOTW fields

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FAFSA on the Web IRS Data Retrieval• Who CAN’T use IRS data retrieval:

– Married couples who filed separate tax returns

– Married couples if one filed as head of household

– Student’s legal parents are unmarried and living together

– Filed an amended return

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Criteria for Independent Applicant• At least 24 years old by December 31st of the award year

covered by the FAFSA• Graduate or professional student• Married (does NOT include cultural marriage)• Has legal dependents other than a spouse who receive more

than one half of their support from the student during school year

• Any time since turning 13 was/is an orphan, in foster care, or ward of the court

• On active duty or veteran of the U.S. Armed Forces• Emancipated minor or in legal guardianship as determined by a

court (by someone other than parent)• Unaccompanied homeless youth as documented by:

– (high school/district homeless liaison, authorized shelter administrator, financial aid administrator interview)

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Assets

• Asset protection allowance question• Cash, savings, checking• Other investments• Home• Farm• Small business

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Other FAFSA Questions

1) Additional Financial InformationNote…subtractions from AGIExample…Child support paid

2) Untaxed IncomeNote…additions from AGI

Examples…Child support receivedTax deferred contributions to retirement plans

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FAFSA Results

• Student notified of FAFSA processing results by:– E-mail notification with link to student’s

SAR (Student Aid Report) online if student’s e-mail address provided:• FAFSA on the Web (takes 1-2 days if

electronically signed with FSA ID; 2 weeks if mailed in signature page)

• Make sure student adds federal email address to address book to avoid delivery problems [email protected]

– If student has a FSA ID, can view SAR online at www.fafsa.gov and make corrections• Don’t forget to sign corrections!

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If Selected for Verification

• Verification items tailored to each student and indicated on SAR/ISIR– Some students may need to verify all items;

others not

• If items limited to data from tax return, verification can be accomplished through IRS data retrieval process alone

• If verification items include both tax return and other items– Verification worksheet sent by college

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Professional Judgment

• Normally, a family’s Expected Family Contribution (EFC) is based on income for the previous tax year– For 2016-2017 academic year, tax year 2015

• Financial aid administrators can use their “professional judgment” to alter data on the FAFSA for special circumstances (e.g., unemployment)– E.g. use 2016 income rather than 2015

• Adjustments are typically performed as corrections by the financial aid office after the original FAFSA is submitted and verified

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Professional Judgment

• Common examples include:– Significant change in income from past tax

year based on unemployment, underemployment, death, divorce, military service or natural disaster

– Unusually high medical expenses– Nursing home expenses– Elementary or secondary school tuition paid– Significant college costs for dependent

student’s parent attending college– Dependency override

• Family should contact financial aid administrator to discuss unusual circumstances

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What is a Dependency Override?• Gives financial aid administrator authority to allow

otherwise dependent applicant to apply as independent applicant due to unusual circumstances– Parental abuse, abandonment, incarceration,

parents in another country, etc.– Not used simply because student lives outside

parent household after age 18 or parents object to providing data

• Must be supported by documentation, preferably by someone outside immediate family

• Student should contact financial aid office for instructions after submitting FOTW without parental data

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Changes Coming for 2017-2018 FAFSA

• Will use prior-prior year tax information– 2015 instead of 2016

• FAFSA processing will start:– October 1, 2016 instead of January 1, 2017

Sources of Financial Aid

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Awarding Financial Aid

Cost of Attendance

-EFC________________ Aid awards (Package)

Loans & Work Study

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Federal Grants & Scholarships

Name Application Amount Eligibility

Pell Grant(2016-17 amounts not yet announced)

FAFSA $626 - $5,775 EFC < $5,198(Income < $65k for family of 4).

FSEOG FAFSA Up to $4,000Average $700

Low-EFC Pell Grant recipients.Limited funding.

TEACH Grant FAFSA + TEACH Agreement(https://teach-ats.ed.gov)

$4,000(slight reductions under sequestration)

Not need-based. Becomes loan if 4-year teaching requirement not met.

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Federal Changes

Limited Ability-to-Benefit reinstated for students lacking high school credential

– Students first enrolled in college on/after July 1, 2015, in eligible Career Pathways* program

– Awarded Federal Pell Grant from alternate Pell Grant award table (Maximum award is $4,860, not $5,775)

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State Grants & Scholarships(for MN residents attending college in MN)Check out Handout #10 for Pell & State Grant Look-Up Chart!

Name Application Amount EligibilityMN State Grant FAFSA no later than

30th day of term. $100 - $11,334Avg: $1,700

Higher income ranges than Pell. Varies based on price of college. Limited to 4 years of attendance.

MN Indian Scholarship

FAFSA + On-line program application.Priority deadline July 1.

Up to $4,000 undergrad; $6,000 graduate

¼+ American Indian ancestry. Show need for Pell or State Grant.

Postsecondary Child Care Grant

FAFSA + Paper program application available at college.

$100 - $2,800 per child for FT student. Less if PT.

Based on income and household size. Limited to 4 years of attendance.

MN GI Bill FAFSA + On-line program application prior to end of term

$1,000 Semester$3,000 Year

Cost minus Pell Grant, State Grant, Federal military benefits. Military service requirements.

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MN Dream Act

• Qualifying undocumented students eligible for:– In-state tuition rates at MnSCU and U of M– State financial aid programs

• State Grant, Child Care Grant, Work Study (if DACA), SELF Loan

– Private scholarships administered by MnSCU/UM• To meet MN Dream Act requirements:

– Attend MN high school for at least 3 years– Graduate from a MN high school or earn MN GED– Comply with Selective Service requirements

• Males 18 to 25 years old must register– Apply for lawful immigration status once a federal process for

doing so exists (not yet applicable)

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MnSCU Two-Year Occupational Scholarship Program

• Administered by Office of Higher Education– Selection, awarding may take

place on campus• Pilot program for 2016-17 and

2017-18 school years• For students enrolled in

occupational programs in high-demand fields

• Emphasis on getting recent high school graduates through short-term vocational programs and into employment

$3.9Million

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MnSCU Two-Year Occupational Scholarship Program

Eligible Student:•Enroll in qualifying vocational program for fall term immediately following:

– High school graduation– Completing ABE or passing GED– Completing Americorp

•Meet MN resident definition used for state financial aid

– Includes Dream Act applicants•Adjusted gross income•e ≤ $90,000 •Agree to participate in free mentoring services

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MnSCU Two-Year Occupational Scholarship Program

Scholarship Award = “Last Dollar In”Tuition & Fees

- Federal Pell Grant*- MN State Grant

= Occupational Scholarship

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Student Loans

• Direct/Stafford Student LoanSubsidized or Unsubsidized

• PLUS Loan• SELF Loan

• Educational Loans (Lender)

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Institutional Scholarships• Many of these listed in central location on OHE

website: • http://www.ohe.state.mn.us/sPages/scholarshipsAll.cfm

• Tend to have early deadlines• Average scholarship per first-time, full-time

undergraduate for 2012-2013College Type Average Scholarship % ReceivingMnSCU 2-Year $ 1,069 5%MnSCU 4-Year $ 2,017 32%U of M $ 4,368 56%Non-Profit 4-Year $16,933 95%Private Career $ 2,411 35%

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Private Scholarships• Student should check with local businesses, civic

organizations, parents’ employers• Most high schools compile lists of local scholarships• Free internet search sites:

www.collegeboard.com/paywww.scholarshipamerica.orgwww.fastweb.comwww.studentscholarshipsearch.comwww.gocollege.comwww.scholarshiphelp.org

• Students should be sure to report any private scholarships to the financial aid office

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Federal and State Work Study

• Undergraduate or graduate students are eligible

• Employment may be on or off campus – resume builder!

• May work during summer• Wages won’t count against student’s

future financial aid eligibility on FAFSA

• Respond ‘Yes’ to Work Study question on FAFSA– Contact financial aid office for further

information

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Tuition Reciprocity

• Allows MN residents to attend in neighboring states at rate similar to MN resident rate

• Students need to apply (some assume it’s automatic)– Apply directly to ND or SD college if recent MN

high school graduate– Apply directly to colleges in Manitoba– All other students must submit application to

Office of Higher Education in MN– Apply on-line for 2016-2017 after March 1, 2016 at: – www.getreadyforcollege.org

• Reduced rates for MN residents attending select schools in Illinois, Indiana, Kansas, Michigan, Missouri, Nebraska under Midwestern Student Exchange Program (MSEP)

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Federal Higher EducationTax Advantages

• American Opportunity Tax Credit • Lifetime Learning Tax Credit• Tuition and Fees Deduction• Penalty Free IRA Withdrawals• Coverdell Education Savings Account• Student Loan Interest Deduction