What you Need to Know Presented by Michael Corso Director of Financial Aid William Paterson University 1.

What you Need to Know Presented by Michael Corso Director of Financial Aid William Paterson University 1

Topics We Will Discuss Tonight What is financial aid Cost of attendance (COA) Expected Family Contribution (EFC) What is financial need Categories, types, and sources of financial aid Free Application for Federal Student Aid (FAFSA) Special circumstances 2

The Higher Education Student Assistance Authority is the only State agency with the sole mission of providing students and families with the financial and informational resources to pursue their education beyond high school. The Mission Higher Education Student Assistance Authority

The Application Process The financial aid process begins with the Free Application for Federal Student Aid (FAFSA) Typically students only need to complete the FAFSA CSS / Financial Aid PROFILE Institutional Application or Scholarship Application Students and parents must complete the FAFSA annually within established deadlines to determine eligibility for: Federal aid State aid Institutional aid 4

Get Organized Have a 3 ring binder for each college Break up into Admissions, Fin Aid, Other Go on the Website of each college Net Price Calculator Ask questions 5

What is Cost of Attendance (COA) Direct costs Indirect costs Direct and indirect costs combined into cost of attendance Varies widely from college to college 6

What is the Expected Family Contribution (EFC) An index used to determine eligibility Stays the same regardless of college Two components Parent contribution Student contribution Calculated using data from a federal application form and a federal formula 7

What is Financial Need Cost of Attendance Expected Family Contribution = Financial Need 8

Categories of Financial Aid Need-based Non need-based 9

Example of Need Cost of Attendance $30,000 EFC 2,000 Need $28,000 10

Example of No Need Cost of Attendance $30,000 EFC 30,000 Need 0 11

Types of Financial Aid Scholarships Good Grades Pay! Grants Loans Employment 12

Federal Government Largest source of financial aid Aid awarded primarily on the basis of financial need Must apply every year using the Free Application for Federal Student Aid (FAFSA) A word about Veteran Benefits 13

Common Federal Aid Programs General Programs Federal Pell Grant Teacher Education Assistance for College and Higher Education Grant Direct Loans PLUS Loans Campus Based Federal Supplemental Educational Opportunity Grant Federal Perkins Loan Federal Work- Study 14

Loans Federal Perkins Loan (5%) Federal Direct Loan Program Subsidized Direct Loan (4.66%) Unsubsidized Direct Loan (4.66%) PLUS (7.21%) Parent only NJCLASS Supplemental Loan Program Fixed rate loan with varying repayment options. Interest rates range from 4.88% to 8.05% for the 2014/2015 award year. Can borrow up to cost of attendance and student can be the borrower. Each option has a 3% fee. Institutional/Private Loans 15

Direct Student Loans Year Subsidized Unsubsidized Fresh $3,500$2,000 Soph $4,500 $2,000 Junior $5,500$2,000 Senior $5,500 $2,000 www.Studentloans.gov 16

If a Parent is denied a PLUS Loan Student can get additional Unsubsidized Direct Loan Fresh $4,000 Soph $4,000 Junior $5,000 Senior $5,000 17

State Aid Residency requirements Award aid on the basis of both merit and need Use information from the FAFSA Deadlines vary by state; check paper FAFSA or FAFSA on the Web site 18

Higher Education Student Assistance Authority Types of Aid State of New Jersey TAG (Tuition Aid Grant) & Part-Time TAG for County Colleges Total Disbursed FY 2011 (July 2011 to June 2012) - $302.3 M Total Number of Grants Awarded 73,000 EOF (Educational Opportunity Fund) Governors Urban Scholarship Rank in the top 5% of the high school graduating class Attain a 3.0 GPA at the end of the junior year Must graduate from a traditional public, public charter, county vocational or non-public school and reside in an eligible area Have a New Jersey Eligibility Index below 10,500

State Scholarships NJ STARS Students who graduate in the top 15% of their high school class Complete a rigorous high school course of study Achieve the required score on a college placement test to determine college readiness Students must take at least 12 college credits Students must attain a cumulative GPA of 3.0 or higher Must file a Free Application for Federal Student Aid (FAFSA ) NJ STARS II Received NJSTARS funding and have a family taxable income of less than $250,000 Must earn an associates degree and graduate with a 3.25 GPA or higher May receive up to $2,500 annually for a public or private 4-year NJ college or university Must enroll full time (12 credit hours) Higher Education Student Assistance Authority Types of Aid (continued)

State Scholarships Governors Industry Vocation Scholarship for Women & Minorities (NJ - GIVS) Up to $2,000 per year for the cost of enrollment at one of New Jerseys 19 County Colleges Benefits women and minorities pursuing certificate or degree programs in construction related fields Must be NJ resident Must file a FAFSA Some of the programs eligible for the scholarship include o Construction Supervision o Solar Energy Technology o Architectural Engineering Technology Higher Education Student Assistance Authority Types of Aid (continued)

State Verification Additional Information Request (AIR) Further information requested by HESAA Tax return(s) Bank statements Selected for State verification Unlike federal verification, which is completed by colleges, HESAA conducts State verification. HESAA should be informed if first college listed on FAFSA is not the college the student is attending; change online at www.hesaa.org. Student Eligibility Notice (SEN) Mailed to student from HESAA 22

Higher Education Student Assistance Authority Institution/college web sites Local library resources Local businesses, civic organizations and churches Parents employer(s) www.hesaa.org www.fastweb.com www.bigfuture.collegeboard.org www.mappingyourfuture.org Private Scholarship Search

When to complete the FAFSA May be filed at any time during an academic year, but no earlier than the January 1 st prior to the academic year for which the student requests aid For the 2015-16 academic year, the FAFSA may be filed beginning January 1, 2015 Colleges may set FAFSA filing deadlines 24

FAFSA on the Web Web site: www.fafsa.gov 2015-16 FAFSA on the Web available on January 1, 2015 FAFSA on the Web Worksheet: Used as pre-application worksheet www.finaid.ucsb.edu/FAFSASimplification/in dex.html 25

Important Line Items Adjusted Gross Income (AGI) - 1040 line 37; 1040A line 21; 1040EZ line 4 Income tax - 1040 line 55; 1040A line 35; 1040EZ line 11 Wages - 1040 lines 7, 12,18; 1040A line 7; 1040EZ line 1 The advantage of filing a 1040A - No assets are counted 26

Higher Education Student Assistance Authority FAFSA 2014/15 Major Changes Enhanced instructions for question 14 and 15 will read, If you have a social security number but are not a US Citizen or Eligible Non- Citizen, you should still complete the FAFSA because you may be eligible for state or college aid. Revised Question #59 to read, As of today, what is the marital status of your legal parents? Revised Single to Never Married Added a new response, Unmarried and both parents living together

Higher Education Student Assistance Authority General Highlighted Eligibility Requirements Must have a valid Social Security Number Must be enrolled or accepted for enrollment in an eligible program of study Must be pursuing a degree, certificate, or other recognized credential Must be a U.S. citizen or eligible noncitizen Must be registered with Selective Service (males are required)

HESAA Services Web Site www.hesaa.org Financial Aid Hotline 609-584-4480 NJBEST MappingYourFuture.org Higher Education Student Assistance Authority

Estimated FAFSA 30

Federal Verification Must complete Verification Process 1.Down load a Tax Return Transcript from IRS - www.irs.gov 2. Use IRS Data Retrieval Process 2 Ways - as part of the original application - to complete verification requirements Youtu.be/W47_YTRVYD4 31

IRS Data Retrieval Available February 2015 Allows an applicant who has already filed their tax return with IRS to electronically transfer data from tax return to FAFSA Participation is strongly encouraged reduce documents requested by financial aid office Not available to applicants with a recent change in marital status If married use the husbands information. 32

IRS Data Retrieval While completing FAFSA, applicant may submit real-time request to IRS for tax data If a tax filer files taxes electronically, they need to wait 1 to 2 weeks to do FAFSA If a tax filer files taxes by paper, they need to wait 6 to 8 weeks to do FAFSA If do estimated FAFSA, can use IRS DATA retrieval to correct FAFSA 33

Signatures Important! Pin.ed.gov Pin.ed.gov Required Student One parent (dependent students) Format Electronic using PIN Signature page 34

Click to Apply for State Aid 2015-2016

Frequent FAFSA Errors Social Security Numbers and DL Divorced/remarried parental information Income earned by parents/stepparents Untaxed income Wages left blank Household size Number of household members in college Real estate and investment net worth 36

Making Corrections If necessary, corrections to FAFSA data may be made by: Using FAFSA on the Web (www.fafsa.gov) if student has a PIN; If estimated taxes are used, correct FAFSA with real taxes or use IRS Data Retrieval; or Submitting documentation to colleges financial aid office 37

Special Circumstances Cannot report on FAFSA Send explanation to financial aid office at each college College will review special circumstances Request additional documentation Decisions are final and cannot be appealed to U.S. Department of Education 38

Special Circumstances Change in employment status Medical expenses not covered by insurance Change in parent marital status Unusual dependent care expenses Student cannot obtain parent information 39

CSS Profile Why is it required? Request additional information, i.e., non-custodial parent, home equity, pensions. Used by some schools to distribute institutional funds. Who requires it? Typically, institutions with significant institutional aid Over 250 schools nationally When do families file? Available October 1, 2014 Submit by school deadline To download CSS Profile, go to http://student.collegeboard.org/css-financial-aid-profile http://student.collegeboard.org/css-financial-aid-profile Customer Service 305-829-9793 [email protected] 40

Outside Scholarships Campus Administered Payment Plans Campus Employment Specialized Campus Opportunities Residential Advisors Student Ambassadors Student Tour Guides Internships/CO-OPS Higher Education Student Assistance Authority Other Resources

Additional Web sites www.studentaid.ed.gov www.studentaid.ed.gov www.finaid.org www.finaid.org http://nces.ed.gov/collegenavigator/ http://nces.ed.gov/collegenavigator/ http://www.college.gov/wps/portal http://www.college.gov/wps/portal Scholarship.org Scholarship.org

FAFSA4caster For High School Juniors and their parents http://www.fafsa4caster.ed.gov 43

What you Need to Know Presented by Michael Corso Director of Financial Aid William Paterson University 1.

Documents

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