Financial Aid 101- The Basics. Agenda Financial aid history & philosophy of o Free Application for Federal Student Aid Calculating financial aid o Cost.

Financial Aid 101- The Basics

Agenda

•Financial aid history & philosophy ofoFree Application for Federal Student Aid

• Calculating financial aidoCost of attendance (COA)oExpected Family Contribution (EFC)

•Categories, types, and sources of financial aid

•Special circumstances

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3.

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Economic

Social

National defense

History of Financial Aid

U.S. Congress passes laws that promote national prosperity:

Philosophy of Financial Aid

•Students and their families have the primary responsibility to pay for postsecondary education expenses

Note: even if the student has left the household

Philosophy of Financial Aid

•Making a college education more attainable

•Providing a consistent and equitable evaluation

•Ensuring eligible students benefit from financial assistance

Federal Application Processing System

General Application Process

IRS Data

Match

FAFSA via Telephone

FAFSA on the Web

Reasons to file electronically:

•Faster processing

•Built-in edits prevent costly errors

•Skip logic allows student and/or parent to avoid unnecessary questions

•Use Internal Revenue Service (IRS) data retrieval

FAFSA on the Web

Reasons to file electronically:

•Easier corrections & updates

•Comprehensive instructions and “help” for common questions

•Check status on-line

•Simplified renewal application

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

• High school diploma or equivalent

• U.S. citizen or eligible non-citizen

• Valid Social Security number

• Enroll in an eligible degree or certificate program

• Register with Selective Service (males only)

• Sign a statement of educational purpose

Initial Student Eligibility

• Not be in default or owe an overpayment on a grant

• Maintain Satisfactory Academic Progress (SAP)

• No drug convictions based on Department of Education standards

Maintaining Student Eligibility

Calculating Financial Aid Eligibility

What is Financial Aid?

Funds provided to students to help pay for postsecondary education expenses. Financial aid includes

• Grants• Scholarship• Work study• Loans

Cost of Attendance (COA)

Note: Costs vary from institution to institution

Standard Costs Optional Costs

Tuition and fees Dependent care

Room and board Study-abroad

Books and Supplies Disability-related services

TransportationEmployment expenses for co-op study

Miscellaneous personal expenses Student loan fees

•EFC is the measure of a family’s financial strength

•EFC is used to determine the student and parent ability to contribute towards the student’s cost of education

•Need analysis is the consistent formula used in determining a family’s EFC

Expected Family Contribution (EFC)

Expected Family Contribution:The Counselor’s Role

Do• Encourage students at all income levels to

apply• Refer students to the college’s Net Price

Calculator*

Do not• Assess eligibility • Promise eligibility

* only an estimate not a guarantee

Calculating EligibilityFor Need-Based Aid

Cost of Attendance (COA)- Expected Family Contribution

(EFC)

=Eligibility for Need-Based Aid

Types of Financial Aid

Program Award Amount Notes

Pell Grant Up to $5550 President’s budget request

FSEOG (grant) Between $100 and $4000 Funding at FY2011 levels

TEACH Grant Up to $4000Proposal: replace TEACH with Presidential Teaching Fellows

Iraq & Afghanistan Service Grant

Up to $5550 equal to Pell Grant – not to exceed the COA

Work Study Determined by each school Funding at FY2011 levels

Perkins Loan Up to $5500 (UG)/ $8000 (Grad)

Proposal: modify Perkins loans into unsubsidized Direct Loans

Subsidized Direct Loan

Between$3500- $5500 (based on UG grade level)

Elimination of subsidized loans for Graduate students

Calculating EligibilityNeed-Based Aid—2012-2013 Federal Programs

California Programs Award Amount Cal Grant A Up to $12,192

Cal Grant B $1551 (1st yr) ; $13743

Cal Grant C Up to $3168 (non CCC) $576 (at CCC)

Chafee Grant Up to $5000

UC Student Aid $100 or more

State University Grant Covers full system-wide fees

Child Development Grant $1000 (CCC) or $2000 (4 yr)

Law Enforcement & Personnel Dependents Grant

Up to $11259 (for up to four years)

Robert C. Byrd Scholarship Up to $1500 (contingent on federal funding)

CCC Board of Governors Fee Waiver Covers all Enrollment Fees

Calculating EligibilityNeed-Based Aid-2012-2013 California Programs

Students who do not demonstrate eligibility for need-based aid may still quality for:

•Federal unsubsidized Direct loan

•Federal Direct PLUS loan

•Private sector scholarships

•Institutional scholarships and employment programs

Calculating EligibilityNon Need-Based Aid

Special Circumstances

•If students and families have unusual circumstances, advise them to contact the financial aid office at the college they plan to attend; the office will advise them on how to proceed.

Special Circumstances

Special Circumstances

•Cannot be reported on the FAFSA

•Contact the financial aid office for procedures

•School’s decision is final and cannot be appealed to Department of Education

Special CircumstancesExamples•Change in employment statuso Dislocated workers/Loss of employment

•Change in parent marital status

•Medical expenses not covered by insuranceo Elder care expenses

•Unusual dependent care expenses

What if…student related changes

•Student cannot obtain parent information

•Homeless individuals

Special CircumstanceExamples:

The Financial Aid Office has authority to make a dependent student independent if unusual circumstances exist:

•An abusive family environment

•Abandonment by parents

•Inability to locate parents

Professional Judgment and Dependency Status

Do not qualify as “unusual circumstances”

• Parents refuse contribution towards education

• Parents unwilling to provide information on the application or for verification

• Parents not claiming the students as a dependent for income tax purposes

• Student demonstrating total self-sufficiency

Professional Judgment and Dependency Status

Remember…

If your student and family have unusual circumstances, advise them to contact the financial aid office at the college they plan to attend; the office will advise them of how to proceed.

Questions?