Financial Aid Information for 15-16 November 19, 2014 Welcome - The webinar will begin at 1:30 PM. We will be posting both the PowerPoint handout and additional recommended handouts on OASFAA’s website within 24-48 hours: http://www.oasfaa.org/docs/toc_counselors.html Lawrence Matthews Director of Financial Aid Bluffton University [email protected] MorraLee Keller Director of Outreach & Member Services Ohio & National College Access Networks [email protected]
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Financial Aid Information for 15-16
November 19, 2014
Welcome - The webinar will begin at 1:30 PM.
We will be posting both the PowerPoint handout
and additional recommended handouts on
OASFAA’s website within 24-48 hours:
http://www.oasfaa.org/docs/toc_counselors.html
Lawrence Matthews
Director of Financial Aid
Bluffton University
MorraLee Keller
Director of Outreach &
Member Services
Ohio & National College
Access Networks
Information for 15-16
Today’s webinar in an introduction to financial aid. For a
more in-depth presentation and discussion you are
encouraged to attend an OASFAA counselor workshop on
December 8, 10, 11, or 12
Go to: www.oasfaa.org
Click on the OASFAA School Counselor Workshops Registration link.
Financial Aid Information for 15-16
November 19, 2014
Welcome - The webinar will begin at 1:30 PM.
We will be posting both the PowerPoint handout
and additional recommended handouts on
OASFAA’s website within 24-48 hours:
http://www.oasfaa.org/docs/toc_counselors.html
Lawrence Matthews
Director of Financial Aid
Bluffton University
MorraLee Keller
Director of Outreach &
Member Services
Ohio & National College
Access Networks
About OASFAA & this presentation
• OASFAA is a non-profit organization comprised of volunteer
financial aid professionals.
• OASFAA has provided the information today as a free service.
• You have permission to copy and distribute these materials to
your students and families. Charges may not be assessed for the
material or for the information presented. Permission must be
granted for other use of this information or these materials.
• Contact the OASFAA Outreach Chairperson(s) listed on the
OASFAA website, or e-mail the OASFAA Outreach Committee at
4
Additional resources for counselors are available for
download at the OASFAA website:
http://www.oasfaa.org/docs/toc_counselors.html
The Key to obtaining Financial Aid is
understanding how the system works.
Available for download:
-PowerPoint Handout
-“Funding Your Education: The Guide to
Federal Student Aid (FSA)”
Information for 15-16
Program
Part 1. Process & Programs
Part 2. Filling out and filing
the FAFSA
Types of Financial Aid
Scholarships
Grants
Loans
Employment
Gift Aid
Self-Help Aid
Purpose is to provide:
Choice and Access
7
Three Categories of Aid
Merit-based
• Scholarships (performance)
Need-based• Grants• Loans• Work-study jobs
Not-need-based• Loans• VA Benefits
8
• Budget Control Act (BCA) of 2011 (August 2, 2011)• Sequestration enacted on March 1, 2013 when Super Committee failed to reach an agreement.
• Moving Ahead for Progress in the 21st Century Act (MAP‐21) (July 6, 2012)• introduced 150% rule for Subsidized Stafford Loans
• Bipartisan Student Loan Certainty Act of 2013 (August 9, 2013)• Interest rates on direct loans recalculated annually
• Bipartisan Budget Act of 2013 (December 26, 2013)• Sequester cuts slowed for next two years
9
To the extent they are able, Parents have the primary
responsibility to pay for their dependent child’s
education. Students also have a responsibility to
contribute to their educational costs.
Families should be evaluated in their present financial
condition.
A family’s ability to pay for educational costs must be
evaluated in an equitable and consistent manner,
recognizing that special circumstances can and do affect
a family’s ability to pay.
Principles of Need Analysis
10
Cost of Attendance
- Expected Family
Contribution (EFC)
= Eligibility
Tuition and fees
Room and Board
Books, supplies,
Personal, travel
Financial Aid Need
Definition of Need
Student’s +
Parent’s
Contribution
Expected Family Contribution
Your EFC is calculated according to a formula
established by law.
Stays the same regardless of college.
The EFC is an index number that college financial aid staff
use to determine how much financial aid you would
receive if you were to attend their school. The information
you report on your FAFSA is used to calculate your EFC.
The Guide to Federal Student Aid, Page 7
12
Increased income protection allowance for dependent
students:
• 06-07 $2,550
• 07-08 $3,000 (HERA)
• 08-09 $3,080
• 09-10 $3,750 (CCRAA)
• 10-11 $4,500
• 11-12 $5,250
• 12-13 $6,000
• 13-14 $6,130
• 14-15 $6,260
• 15-16 $6,310
Higher Education Reconciliation Act of 2005 (HERA)
College Cost Reduction and Access Act of 2007 (CCRAA)
Higher Cost Mid Cost Lower Cost
Institution Institution Institution
Cost of Attendance $58,000 $40,000 $22,000
- EFC $8,000 $ 8,000 $ 8,000
= Need / Eligibility $50,000 $32,000 $14,000
The Federal Expected Family Contribution (EFC) is the
same at each institution.
Net Price Calculator
Available for download:
OASFAA’s Cost comparison worksheet
Need Comparison
How/When to file if dealing with early deadlines:
If possible, have the necessary 2014 income tax returns finished so you can complete the FAFSA more easily and accurately, or…
Follow a two-step process:• Step 1: Apply and estimate your tax information on your application
• Step 2: Make corrections later if your estimated income or tax information was not accurate.
A Word about Deadlines
They’re REALAvailable for download:
FAFSA Priority
Deadlines
Scholarship Searches & SCAMS
Scholarship Scams Tip Sheet
(free vs. paying a fee)
• Buyer beware
Available for download:
FastWeb handouts
Tips for Smart Money Management!
Pursue local scholarships!
OCAN, Civic Organizations,
Churches, and Employers
Ohio College Opportunity Grant (OCOG)
Must file the FAFSA, be Ohio residents and attend an Ohio
Public or Private Institution
The EFC is the index number for
awarding OCOG
EFC eligibility range is from 0000-2190
A part-time student will receive a pro-rated award
Available for continuous enrollment (includes summer)
Other Ohio programs
http://regents.ohio.gov/sgs/
2014-2015:
$2568 Private 4-year
$1048 Public 4-year
$ 744 Private, For-Profit
War Orphans
National Guard
Safety Officer Memorial
Nurse Education Assistance Loan
Program (NEALP)
Choose Ohio First
17
Appropriations for 2013-14 & 2014-15
18
Federal Pell / SEOG Grants
Pell Grant (2014-2015)EFC of 00000 = $5730 maximum PellEFC of 05157 = $ 602 minimum Pell*Need Based*Must file FAFSA *Portable
Federal SEOG Grant*Exceptional financial need*Lowest EFC’s (Pell Eligible students are priority)*Award ranges from $100 to $4000
FAFSA Priority
Deadline for campus
based programs
Campus Based
FSA at a Glance
2015-16
19
Federal Work-Study
Undergraduate or graduate students are eligible
Employment can be on or off campus
FWS wages excluded from EFC calculation!!!
Eligible employers
• School
• Federal, state, or local public agency
• Private non-profit organization in academically relevant jobs
• For-profit organization in academically relevant jobs
• Community service activities
Campus Based
Ohio minimum
wage in 2015:
$8.10 per hour
20
Federal Perkins Loan
Eligible students (priority to exceptional need)
• Undergraduate or graduate students
• Must file the FAFSA
Annual and aggregate loan limits
• up to $5,500 annually for undergraduates(actual awards, if any, will vary between schools)
• $27,500 aggregate for undergraduates
Interest rate: 5% (fixed) during repayment
Interest subsidized during in-school and nine-month grace period
Deferment and cancellation provisions available
Campus Based
The Guide, pg. 11
Federal Direct Student Loans
No credit check for Federal Direct Student Loans
Available at all Title IV eligible schools
Must complete the FAFSA
Only borrow what is really needed
Look at loans as an investment in the future
Direct Loans, 2014-2015
22
Subsidized Unsubsidized
Need based Not based on financial need
Interest is fixed at 4.66% for new
undergraduate loans disbursed
during 2014-15*. Interest is
subsidized while the student is in
school and during deferment.
Interest is fixed at 4.66% for all new
loans disbursed during 2014-15*.
Interest accrues from time of
disbursement of the funds.
*interest rates recalculated annually and are
effective July 1st based on the 10-year
Treasury note index plus 2.05%, capped at
8.25%
• Direct Subsidized and Unsubsidized Loans are two
separate, unique types of loans that are awarded separately.
The Guide, pgs. 10-13, 21-24
Handout: Federal Loan Information andthe 150% rule for receiving subsidized Federal Direct Loans
23
Direct Loans, 2014-2015
Independent Students and Dependent Students whose
parents have been denied the PLUS Loan are eligible for
additional Unsubsidized Stafford Loans ($4,000 as
Freshmen and Sophomores and $5,000 as Juniors and
Seniors)
Class Year Base Amount
Additional
Unsubsidized
Amount
Total Available
to Borrow
Freshman $3,500 $2,000 $5,500
Sophomore $4,500 $2,000 $6,500
Junior $5,500 $2,000 $7,500
Senior $5,500 $2,000 $7,500
Federal Direct LoanSubsidized or Unsubsidized
Standard repayment begins 6 months after student
graduates or drops below half-time enrollment
status
Long-term loan; must be repaid (must file FAFSA)
10 year maximum repayment period
– additional repayment options are available
Direct Parent PLUS, 2014-2015
• Parent PLUS Loans
• Loans to parents of dependent students.
• Loan limits are up to the cost of education minus any
financial aid received.
• Interest rate is 7.21*% fixed.
• Repayment begins within 60 days of full
disbursement.
– Payments may be deferred while the student is in school.
• FAFSA completion is required.*interest rates recalculated annually and are effective July 1st
based on the 10-year Treasury note index plus 4.60%,
capped at 10.5%
25
The Guide, pgs. 3,11
Direct Loan Fees, 2014-2015
• Direct Loan Fees for students (sub and unsub)
• 1.073% origination fee deducted from the
borrowers disbursement so the borrower
nets 98.927% of what is borrowed.
• Parent PLUS Loan Fees
• 4.292% origination fee deducted from the
disbursement so the borrower nets
95.708% of what is borrowed.
26
Private Education Loans
are also available
Basic Steps for First-Time Filers
Apply for admission.
Complete and transmit (or mail) the FAFSA after
January 1 (and filing the FAFSA is FREE!!!)
Two ways to file:
1) If you have access to the
internet, you are encouraged
to file electronically, or…
28
10 page booklet
containing:
• Instructions
• 105 questions
organized into 7 steps
If mailing your FAFSA to
the processor:
Make A Copy2) File a Paper FAFSA
If you or your family experienced
significant changes to your financial
situation (such as loss of
employment), complete this form to
the extent you can and submit it as
instructed. Consult with the financial
aid office at the college(s) you applied
to or plan to attend.
Available for download:
Draft 2015-16 paper FAFSA
29
Special Circumstances
Examples: reported to the financial aid office
Child support ending
Medical not covered by insurance
Parent loss of income
Property loss not covered by insurance
Unusual debt or one-time income
Tuition expenses at an elementary/secondary school
Parent in College
The financial aid administrator must have compelling reasons to use professional judgment to make adjustments because of special circumstances.
The financial aid administrator’s decision as to whether you have special circumstances is final and can’t be appealed to us (the US Department of Education).
31
FAFSA Filing Options
Provides the
three options
for applying
including the
PDF FAFSA.
31
Available for download:
Current PDF
FAFSA
Use for counseling
32
Verification
The process of documenting the information you
provided on the FAFSA is called verification. If your
application is selected for verification and you do not
provide the documents requested on time, you will not
receive federal student aid and you might not receive
aid from other nonfederal sources.
33
Verification and the IRS Data Retrieval Tool
IRS DATA RETRIEVAL TOOL
If possible, attend an OASFAA
Counselor workshop in
December for more information
VERIFICATION
Selected by the Central
Processing System (CPS) or
the Institution
Keep copies of 2014 Tax
documents
If selected, completion is
required before aid can be
disbursed
Verification materials are sent
to the financial aid office, not
federal processor
34
The PIN
A parent only needs one PIN to sign for multiple children
www.pin.ed.gov
FAFSA Home Page www.FAFSA.gov
Effective Jan. 1, 2015
Students will access a homepage where...
…One Log-In for all Applicants
36
All application options are
accessible with one log in:
• Starting a FAFSA
• Continue a FAFSA
• Corrections
• Adding a School Code
• Signing the FAFSA
• Status Check
• View SAR
Contact Us
Customer service
options include
Live Help, a toll-
free number, and
e-mail.
37
1.34 million inquiries in 2012
FAFSA Worksheet
• Used as pre-application worksheet
• Questions follow order of FOTW
Reasons to file electronically:
• Built-in edits to prevent costly errors
• Skip logic allows student and/or
parent to skip unnecessary questions
• Option for IRS Data Retrieval Tool
• More timely submission
• More detailed instructions and “help”
• Can check application status online
available for download:
- FOTW worksheet 2014-2015
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 in college
Real estate and investment net worth
• College’s website
• School type
• Tuition and fees
• Net price average
• Graduation rates
• Retention rates
• Transfer rates
40
Page 2 of Worksheet:
After you are online you
can add up to 10
colleges on your FAFSA.
College and housing information
FOTW Worksheet
• Student’s information, pg. 2
• Dependency questions, pg.2
• Who is a parent? pg.3
Handouts available for download:
- General Change “who is a parent”
- Asset directions
42
“Sign & Submit” Page
43
Confirmation Page
44
Apply for admission.
Complete the FAFSA after January 1.
Review your Student Aid Report (SAR). Update estimated information, make corrections or contact the Financial Aid Office if corrections needed.
Basic Steps for First-Time Filers
FAFSA Corrections
45
46
Complete and mail any supplemental forms required by the college or state agency.
Watch for your financial aid award letter or Financial Aid package from the college/university.
Apply for admission.
Complete the FAFSA after January 1.
Review your Student Aid Report (SAR). Update estimated information, make corrections or contact the Financial Aid Office if corrections needed.
Basic Steps for First-Time Filers
Need Help?
Federal Student Aid Information Center:1-800-433-3243
8 a.m. - midnight EST (M-F)9 a.m. - 6 p.m. EST (Sa)
College Goal Sunday, February 8, 2015
• 2 PM at 56 locations throughout Ohio• www.ohiocollegegoalsunday.org
handout: Save the Date flyer 2015
48
Avoid ERRORS!
Errors made in completing the
FAFSA and/or supplemental
forms may delay application
processing and result in the loss
of financial aid funds.
Important: Read the forms,
And complete all forms carefully!
THE END
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