The Montana Association of Student Financial Aid Administrators

The Montana Association of Student Financial Aid

Administrators

Presented by:Presented by:

Judy Chapman, Judy Chapman, DirectorDirector

MSU-Billings Financial Aid & ScholarshipsMSU-Billings Financial Aid & Scholarships

&&

Kalie PorterKalie Porter

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About the FAFSA

Types of Financial Aid

Other Resources

Overview

What the heck is the “FAFSA?”

FAFSA = Free Application For Federal Student Aid

Emphasis on the “FREE” Part!

Federal Financial Aid Eligibility Requirements

Student must have the following: Be a U.S. citizen or eligible noncitizen Have a valid Social Security number (unless you're from the

Republic of the Marshall Islands, the Federated States of Micronesia, or the Republic of Palau)

Comply with Selective Service registration, if required (see www.sss.gov for more information)

Have a high school diploma or a General Education Development (GED) Certificate or pass an approved ability-to-benefit (ATB) test

Be enrolled or accepted for enrollment as a regular student working toward a degree or certificate in an eligible program at a school that participates in the federal student aid programs

Also: You must not owe a refund on a federal grant or be in default

on a federal student loan You must have financial need (except for unsubsidized

Stafford Loans) You must not have certain drug convictions

Applying for DifferentTypes of Aid

USE THE FAFSA FOR : Grants – Free or “gift” aid Work Study – Self- help – must be

earned Loans – Self-help – must be repaid

USE SEPARATE APPLICATION FOR: Scholarships Waivers Follow the process at your school

FAFSA - Two Ways to Apply

Electronic - Recommended: FAFSA on the WEB @ www.fafsa.ed.gov Reminder - get your PIN number first

www.pin.ed.gov (parent and student)

Paper FAFSA Forms available from financial aid office or

high school guidance counselor The paper FAFSA colors: YELLOWYELLOW for

student info, PURPLE for parent info

PIN Registration

Web site: www.pin.ed.gov

Apply now - Both student and parent need a PIN

PIN is used for FAFSA, MPN, NSLDS access

Add to your address book [email protected]

The Form

FAFSA on the WEB - Sample Worksheet

• Use of the worksheet is optional; it should NOT be submitted to the US Dept of Ed or to your school.• Not all of the questions from FAFSA on the Web appear in this worksheet, but questions are generally ordered as they appear online.• Once you are online, you may be able to skip some questions based on your answers to earlier questions. The FAFSA on the WEB will determine for you which questions can be skipped.

You must complete and submit a Free Application for Federal StudentAid (FAFSA) to apply for federal student aid and to apply for moststate and college aid. Applying online with FAFSA on the Web atwww.fafsa.ed.gov is faster and easier than using a paper FAFSA.For state or college aid, the deadline may be as early as January 2007.See the table to the right for state deadlines. Check with your highschool counselor or your college’s financial aid administrator aboutother deadlines.

DO NOT MAIL THIS WORKSHEET.

FAFSA on the WEB - Sample

Filling Out the FAFSA

Tax information Use 2006 Federal tax information Do not send any other forms with the paper FAFSA If using paper, then mail the paper form in the envelope provided – it is

pre-coded for faster processing

Student and Parent Information Use correct SSNs Use LEGAL NAME from Social Security Card Accurate Date of Birth

School Information Identify at least one school Can list up to four schools at a time

Contact Financial Aid Office for assistance

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.

Please complete all forms carefully!

Frequent FAFSA Errors

Divorced/remarried parent information Income earned by parents/stepparents Untaxed income U.S. income taxes paid Household size Number in postsecondary education Real estate and investment net worth

Timelines

Submit as early as possible after January 1st

Estimated tax return Completed tax return

Processing Times 1 – 3 days if submitted electronically 2 – 3 weeks if paper FAFSA is mailed School processing times vary

Check Student Aid Report (SAR) immediately for: EFC (on upper right of pg 1) Any mistakes or omissions If you haven’t received any information within 4

weeks, contact the financial aid office or Federal Processor @ 1.800.4.FEDAID.

Print and keep your confirmation number for tracking!

Components of the FAFSA

The Philosophy

The FormulaCOA, EFC, NEED

Parents and students are primarily responsible

Families are evaluated in their present financial condition

A family’s ability to pay is evaluated in an equitable and consistent manner

Special situations can be considered

The Philosophy(Why Is All This Information Needed?)

Divorced/Separated Parents

Whose information goes on the FAFSA? 1. Who did student live with most in last 12

months? 2. If #1 is not clear, who provided the most

financial support in the last 12 months? 3. If neither #1 or #2 clarifies it, choose the

parent from whom the student most recently received the most support.

Stepparent’s information is ALWAYS included!

What if I have a special situation?

A special conditions appeal may be filed when your income has changed due to: Loss of job Death of wage earner Divorce Unusually high medical bills paid

Special conditions are considered after initial awards have been determined.

Contact your financial aid office for assistance

The Formula

Cost of Attendance (COA)

Expected Family Contribution (EFC)

Need

What’s in the Cost of Attendance?

Main componentsTuition & fees Room & board Books & supplies Transportation Miscellaneous personal expenses

Other possible components Loan Fees Study abroad costs Dependent or elder care expenses Expenses associated with a disability Expenses for co-op education programs

E F C

What is it? How is it determined? Why do we need it?

The Processor uses a formula to determine “EFC” or

“Expected Family Contribution”

Fill out and submit FAFSA

Fill out and submit FAFSA

Federal processor will determine Expected

Family Contribution

School receives FAFSA info.

School determinesneed

School createsFinancial Aid

Award Package

Student receivesAward Letter

Student Responds to Award Letter

(Verification)

The Process

Types of Financial Aid

Need Based Scholarships Grants Employment Loans

Non-Need Based Loans Some scholarships Some work-study

Merit Based Scholarships

Sources of Financial Aid

Federal

State

Institutional (school)

Private

Available Grants

Federal Pell Grant

Federal Supplemental Educational Opportunity Grant (FSEOG)

Montana Higher Education Grant (MHEG)

Montana Guaranteed Student Loan Program Grant (MGSLP)

Baker Grant (Formerly MTAP)

Acce$$ Grant

Available Grants, ContinuedNEW FEDERAL GRANT PROGRAMS

National Academic Competitive Grant (ACG) First and second year students “Rigorous Course of Study” 3.00 GPA in second year $750 first year, $1,300 second year

National “Science and Mathematics Access to Retain Talent” (SMART)

Third and Fourth year students Must be in Specific Major Cumulative GPA 3.00 $4,000 max per year

For both ACG and SMART Grants: Must be US Citizens Must be Pell eligible and a Pell recipient in the

term the grant is awarded Must be enrolled full-time Questions on the 2007-2008 FAFSA will help

determine student’s eligibility

Federal & State Work Study

Can be need or non-need based

On or off campus

Earnings do not count as income on next year’s FAFSA

Amount awarded is not guaranteed to be earned

If you did not receive a work-study award,most schools have a waiting list.

Types of Educational Loans

Federal LoansStafford PerkinsGraduate PLUSParent PLUS

Private Loans

Federal Loan Eligibility

Loans are a type of financial aid

Need and Non-need based

Enrolled at least half-time

Federal Perkins Loan

Need based Interest rate: 5% fixedNine month grace periodDeferment & cancellation provisions Limited funding – apply early

FFELP / Direct Loans

There are four types of FFELP/Direct loans

Subsidized Stafford Loan Need based

Unsubsidized Stafford Loan Non–need based

Parent Loan for Undergraduate Students (PLUS)

Graduate PLUS Loan

Stafford Loans

FFELP/Direct Loans

Subsidized Stafford LoanNeed based

Unsubsidized Stafford LoanNon-need based

FFELP /DirectAnnual Loan Limits

Freshman - $3,500

Sophomore - $4,500

Junior/Senior - $5,500

Graduate and Professional - $8,500

FFELP / Direct Loans

Interest rate: 6.8% fixed FFELP - 1.5% origination fee, 1% default

fee Direct – 2.5% loan fees Deferment/Cancellation provisions 6 month grace period 10 year repayment

Federal Plus (Parent) Loan

Interest rate: 8.5% fixed

Borrowers are parents of dependent undergraduate students – credit check is performed

FFELP - 3% origination fee; 1% insurance fee

Direct – 4% loan fees

Loan limits: Cost of attendance less other aid No aggregate limit

Repayment begins 60 days after fully disbursed

Scholarship Types

Merit (Honors)

Institutional

Activities

Community

Montana University System Honor Scholarship

MUS Honor Scholarship Minimum GPA 3.5 In top 25% of graduating class Montana resident Met college preparatory requirements Accepted to a Montana University System

College or University Application and copy of college acceptance

letter due January 31st

Governor’s Postsecondary Scholarship Programs

Governor’s Merit Scholarship Top 25% of graduating class Minimum GPA 3.0 Same application as MUS Honor Scholarship Due March 31st

Cannot be a MUS Honor Scholarship recipient

Governor’s Merit-At-Large Scholarship Application online at www.mgslp.org Can begin applying January 2, 2007 Application, list of activities participated in, 250 word

essay, college acceptance letter, copy of high school transcript, and Student Aid Report (SAR)

Due March 31st

Scholarship Searches

Colleges

Internet www.safmt.org (MCIS) www.collegeboard.org www.finaid.org

Avoid Scams

Free, Free, Free!

Other Resources

Health & Human Services

Veteran’s Benefits

Military Service Scholarship (ROTC)

Bureau of Indian Affairs (BIA) Grants

Tribal Assistance

Vocational Rehabilitation

Taxpayer Relief Act

Hope Scholarship Tax Credit

Lifetime Learning Tax Credit

Student Loan Interest Deduction

Education IRA College Savings Plans

See IRS Publication 970 @ http://www.irs.gov/publications/p970/index.html

Financial Aid Mistakes to Avoid

Four Most Common MistakesSubmitting an Incomplete or Inaccurate

FAFSAProcrastinationFalling for Scholarship and FASFA

ScamsAssuming that Financial Aid is for

Someone Else

Free HelpSUNDAY, FEBRUARY 11, 2007

COLLEGE GOAL SUNDAY

Come to College Goal Sunday to get FREE assistance on completing the FAFSA.

Financial Aid experts will be on hand to answer your questions, assist with application process.

See information card in your packet. Get a PIN number before you come . . .

Thank you for your time and attention!

Judy Chapman657-2188

[email protected]

Kalie Porter657-1639

[email protected]