NYSFAAA School Counselor Financial Aid Presentation St. Bonaventure, October 5th, 2011 11:00 am Daniel M. Tramuta Associate Vice President for Enrollment.

NYSFAAA School Counselor Financial Aid Presentation

St. Bonaventure, October 5th, 2011 11:00 am

Daniel M. TramutaAssociate Vice President for Enrollment ServicesSUNY [email protected]

How & When to Apply?

• Apply for Admission (Fall of Senior Year)• Collect documents• Request a federal PIN at www.pin.ed.gov• Fill out the 2012-13 FAFSA on the Web Worksheet (Do

Not Mail this Worksheet) (Dec.)• Complete FAFSA online at www.fafsa.ed.gov in

January 2012 (Estimate the information)• Print the confirmation page• Use the corresponding state scholarship link to apply

for TAP • Keep records

Download and Complete the 2012-13 FAFSA on the Web Worksheet

Collect Information Student’s and parent’s SSN and DOB Parent’s marital status Tax returns for student and parents W-2’s for student and parents Records of untaxed income for student and parents bank, stock, real estate, and business records for student and parents Student’s driver’s license number Student’s alien registration number (for non U.S citizens) PINs for student and one parent

5

•ED will process PIN applications in real time

•Students and parents have three ways to receive a PIN

• Choose a personal PIN

• Have a system-generated PIN display on the fafsa.ed.gov Web page

• Receive a system-generated PIN by e-mail

•Student & Parent can select the same PIN

Get a PIN now!! Every student and parent needs one.The PIN replaces the need for having to mail in a signature page.

6

The on-line FAFSA allows students to list up to 10 colleges.

The paper FAFSA allows only 4 colleges to be listed.

File the FAFSA as soon as possible after January 1st of each school year.

Verification-IRS DATA Retrieval Process

• Beginning in 2011-12 all FAFSA on the Web applicants and the parents of dependent applicants, who indicate that they have filed their federal tax returns prior to completing their FASFA, will be directed to use the FASFA-IRS Data-Retrieval process to complete their FASFA more easily and accurately.

• Applicants who choose not to use the FAFSA-IRS Data Retrieval process will be informed that they need to explain to their institutions why information they provided is more accurate than info that would have been obtained directly from the IRS.

• A tax transcript would then need to be requested from the IRS and sent to the school along with any other requested documentation – this will cause aid processing delays!!

Updating Your FAFSA – IRS Data Share

Verification – IRS Data Share

IRS Data Share-Updating Your FAFSA

FAFSA Confirmation Page

12

• Apply for TAP from the FAFSA confirmation page• Establish your TAP PIN; You may choose to use the same number as your federal PIN.• If you miss the TAP link from the FAFSA, go to www.tapweb.org 24-48 hours after completing the FAFSA.

• Please be aware that the first school code listed on the FAFSA is automatically populated on the TAP application.

Should I pay someone to help me find or apply for student financial aid?

• FREE help is available• Make sure you are not paying

for free information• Know what you are getting for

your money• Need more information: 1-800-4FEDAID

14

Beware of www.fafsa.com

FAFSA4caster

• Lets students and parents receive an early estimate of eligibility for federal student aid.

• It will increase knowledge of the financial aid process and provide an opportunity to investigate other sources of aid (e.g.; grants, scholarships).

16

How Need is Determined for Dependent Financial Aid Applicants?

•EFC is determined by• Student’s income and assets• Parent’s income and assets• Size of family• Number of children in college

•Annual Cost minus EFC = Need

Cost of Education: $30,500 $30,500 $30,500

(minus) FAFSA Calculated EFC $-0- $15,500 $33,000

__________________________________Financial Need $30,500 $15,000 -0-

Defining Student Financial Need

18

For the 2012-13 year, the 1st $6,000 a student earns is protected. 50% of any funds earned above $6,000 is used in the EFC calculation.

20% of the total student’s assets (i.e. Checking/Savings, Investment &/or Business/Farm Net Worth) is used in the EFC calculation.

Generally, the parent’s assets are protected if you take the age of the older parent (if married), subtract 1, and multiply by 1,000.

Ex. Age of Older Parent = 50Approximately the first $49,000 in parental assets are

protected

The EFC is automatically $0 if:- anyone in the household received benefits in 2010

or 2011 from any of the designated means-tested Federal benefit programs (Food Stamps, SSI, Free/Reduced Lunch, WIC, or TANF)

OR- the adjusted gross income for 2010 or 2011 is

$31,000 or below

A student is independent federal student aid purposes only if they are:

• At least 24 years of age by December 31st of the award year• A graduate or professional student• Married• Both parents are deceased • Claim legal dependent other than spouse• Foster care or ward of the court• Emancipated minor or in legal guardianship• Accompanied youth who is homeless• A veteran of the U.S. Armed Forces

• Determined to be independent by the financial aid administrator

(Professional Judgment)

Tuition Assistance Program (TAP)

• Grant Program• Funding levels are

determined each year by the NYS budget process

• Maximum Grant is tuition plus the College Fee ($5,000)

• Minimum Grant is $500• New SUNY Tuition

Credit for students who receive a TAP award

Federal Pell Grant

• Pell Eligibility is restricted to FAFSA calculated Expected Family Contributions (EFC’s) that are $5,273 or below

• Current maximum grant is $5,550 in 2011-12

TEACH Grant The Teacher Education Assistance for College and Higher

Education (TEACH) Grant Program that provides up to $4,000 per year in grants for graduate and undergraduate students to students who intend to teach full-time in high-need subject areas for at least four years at schools that serve students from low-income families.

Students may receive up to $16,000 for undergraduate study.

• IF YOU FAIL TO COMPLETE THE FOUR-YEAR TEACHING OBLIGATION YOU WILL HAVE TO REPAY THE GRANT WITH INTEREST!!!

• For more information go to http://www.fredonia.edu/finaid/forms/TEACHGrant.pdf

• To see the eligible majors go to http://www.fredonia.edu/finaid/forms/Teach%20Eligible%20Majors.pdf

.

Federal Work Study Program

• Need based• Early FAFSA application is

critical• Will not impact Student

income portion of EFC calculation

• Most likely will not appear on college bill since students will receive a check!

Federal Perkins Loan

• Awarded to eligible undergraduate students with financial need

• 5% interest rate with a 9 month grace period

*Early FAFSA application is critical at most schools in order to be awarded this need based student loan!

Federal Subsidized Stafford Loan

Must demonstrate financial need and accept loan

Federal Loan Interest Rate fixed at 6.8% (2012-13)

Current annual loan maximum for Freshmen borrowers is $3,500

Sophomore year students will be able to borrow up to $4,500 annually ; Juniors and seniors can borrow up to $5,500 annually

Federal Unsubsidized Stafford Loan

• Not need based• Interest rate is fixed at 6.8%• Same annual maximum ($3,500) as Subsidized Stafford Loan• All students are eligible for an additional $2,000 in an

unsubsidized Stafford loan• Interest begins accruing upon 1st disbursement of funds.

/

Alternative Financing Options

• Federal Parent PLUS Loan Program: -fixed 7.9% interest rate with repayment typically beginning 60 days after the second disbursement-on-line credit check/application process

• Private Alternative Loans:-may borrow up to Cost of Attendance

minus other aid for both of the above

• Monthly Payment Plans through the Office of Student Accounts

NYHELPS Private Loan Program• NYHELPs offers New York State students and their families the

following fixed rates:– 7.55% interest on loans where principal and interest

payments begin when the loan is issued; – 8.25% interest on loans where students pay only interest

costs while in school and pay full principal and interest costs six months after graduation; and

– 8.75% interest on loans where both principal and interest payments are deferred until six months after graduation.

– These rates could be further reduced by another 0.25% if the borrower opts to have their payments automatically debited.

– A school must be a participating member so be sure to check with your school.

Appeals Based on Unusual Circumstances

• Loss of Income in 2011 vs. 2012• Medical/Dental expenses NOT PAID by

insurance• Death, separation, divorce......• 1-Time Fluctuation in Income• Elementary/Secondary Private School

Tuition Expenses• Follow the procedures of the Financial

Aid Office where student is attending.

29

Questions?