William Paterson University Aim High Academy 2013 The Road to College Day 4.

William Paterson UniversityAim High Academy 2013

The Road to CollegeDay 4

AN INTRODUCTION TO FINANCIAL AIDTHERE’S MONEY OUT THERE! LET’S GET SOME!

Today’s Topic:

The Road to College

WHAT IS THE FAFSA?

• And Why should I fill out a FAFSA? • The Free Application for Federal Student Aid

(FAFSA) is the first step in the financial aid process. You use the FAFSA to apply for federal student aid, such as grants, loans and work-study. In addition, most states and colleges use information from the FAFSA to award nonfederal aid.

FEDERAL STUDENT AID PROGRAMS

• There are three categories of federal student aid: – Grants provide financial aid that does not have to be repaid. – Loans provide borrowed money that must be repaid with

interest. – Work-study allows students to earn money to help pay for

education expenses while enrolled in school.

• Your financial aid “package”—the aid your school awards you—is likely to include funds from the federal student aid programs. Note that not all schools participate in all of the federal student aid programs administered by the U.S. Department of Education.

FEDERAL STUDENT AID PROGRAMS

• Federal Pell Grants are available to undergraduate students only (with one minor exception for teacher certification students).

• Grants do not have to be repaid. – For the 2013-14 award year (July 1, 2013 to June

30, 2014), Pell Grant awards will range up to a maximum of $5,645.

FEDERAL STUDENT AID PROGRAMS

• William D. Ford Federal Direct Loans are student loans that must be repaid and are available to both undergraduate and graduate students. The federal government provides the funds for your Direct Loan through your school.

• First-year dependent undergraduates are eligible for a subsidized loan up to $3,500 and an additional unsubsidized amount of up to $2,000 for a total of up to $5,500.

 Undergraduate students

Dependent1 Independent2

1st-year $5,500 ($3,500)3 $9,500 ($3,500)

2nd-year $6,500 ($4,500) $10,500 ($4,500)

3rd- and 4th-year $7,500 ($5,500) $12,500 ($5,500)

Aggregate $31,000 ($23,000) $57,500 ($23,000)

1Except those whose parents are unable to borrow a PLUS loan.2These limits also apply to dependent students whose parents are unable to borrow a PLUS loan.3The numbers in parentheses represent the maximum amount that may be subsidized.

FEDERAL STUDENT AID PROGRAMS

• Direct PLUS Loans are unsubsidized loans made to parents of dependent undergraduate students and to graduate or professional students.

• A dependent undergraduate student whose parent is unable to obtain a PLUS Loan may borrow additional Direct Loan funds at the higher loan limits otherwise available only to independent undergraduates.

FEDERAL STUDENT AID PROGRAMS

Campus-Based Programs are administered by participating schools. There are three of these programs.

• Federal Supplemental Educational Opportunity Grants are grants available for undergraduates only; awards range from $100-$4,000.

• Federal Work-Study provides jobs to undergraduate and graduate students, allowing them to earn money to help pay education expenses.

• Federal Perkins Loans are low-interest (5 percent) loans that must be repaid; the maximum annual loan amount is $5,500 for undergraduate students and $8,000 for graduate students.

IMPORTANT!

• The official website for the FAFSA on the WEB is:– www.fafsa.ed.gov

• Do NOT go to a FAFSA.com site– This is a business site that will expect you to pay

for assistance in completing the FAFSA.– There is NO CHARGE for completing and

submitting the FAFSA online!

THE FAFSA

• Let’s take a quick look !!

FAFSA FILING OPTIONS

• Paper FAFSA – processes in (7-10) days • FAFSA on the Web – processes in (3-5) days • Electronic filing eliminates delays that can occur by

mailing the application. Also, FAFSA on the Web edits the application prior to submitting it to Federal Student Aid, which significantly reduces the number of errors on the application.

• For help with filling out the FAFSA, you can go to www.studentaid.ed.gov/students/publications/completing_fafsa/index.html

HOW DO I START?

• Create a Federal Student Aid PIN– www.pin.ed.gov

• This PIN will be used throughout your academic career as you apply for financial aid to sign your financial aid documents electronically.

• Parents require their own PIN … allowing them to sign electronically as the parent.

THEN …

• Go to the FAFSA site– www.fafsa.ed.gov

ANOTHER HELPFUL SITE:

• Another helpful site: Federal Student Aid– http://Studentaid.ed.gov

Back to the FAFSA

• Let’s look at a few more screen shots of the FAFSA…

• … … no binoculars required!

AM I ELIGIBLE FOR FINANCIAL AID?The following is a list of some of the requirements:• You must be a United States citizen or eligible noncitizen of the United States with a valid

Social Security Number (SSN). • You must have a high school diploma or a General Education Development (GED)

certificate, complete homeschooling, or pass an approved "ability to benefit" test. • You must enroll in an eligible program as a regular student seeking a degree or certificate. • You must be making satisfactory academic progress. • If you are a male between the ages of 18 and 25, you must register or already be

registered with Selective Service. You must also register if you are not currently on active duty in the U.S. Armed Forces.

• If you have been convicted for the possession or sale of illegal drugs for an offense that occurred while you were receiving federal student aid (such as grants, loans, or work-study), you must complete the Student Aid Eligibility Worksheet to determine if you are Eligible for aid or Partially Eligible for aid.

• You must not owe a refund on a federal grant or be in default on a federal education loan. • You must have financial need (except for unsubsidized Stafford loans). • Other requirements may apply. Contact the financial aid office at your college for more

information.

WHAT’S UP WITH ALL THE QUESTIONS?

• The questions on the FAFSA are required to calculate your Expected Family Contribution (EFC).

• The EFC measures your family’s financial strength and is used to determine your eligibility for federal student aid. Your state and the colleges you list may also use some of your responses. They will determine if you may be eligible for school or state aid, in addition to federal aid.

How do I find out what my Expected Family Contribution (EFC) is?

• Your EFC will be listed on your Student Aid Report (SAR). Your SAR summarizes the information you submitted on your FAFSA.

• It is important to review your SAR to make sure all of your information is correct and complete. Make corrections or provide additional information, as necessary.

HOW MUCH WILL I GET?• It will vary, student by student.• Using the information on your FAFSA and your EFC, the financial

aid office at your college will determine the amount of aid you will receive.

• The college will use your EFC to prepare a financial aid package to help you meet your financial need.

• Financial need is the difference between your EFC and your college’s cost of attendance (which can include living expenses), as determined by the college.

• If you or your family have unusual circumstances that should be taken into account, contact your college’s financial aid office. Some examples of unusual circumstances are: unusual medical or dental expenses or a large change in income from last year to this year.

WHEN WILL I GET IT?

• Any financial aid you are eligible to receive will be paid to you through your college.

• Typically, your college will first use the aid to pay tuition, fees and room and board (if provided by the college).

• Any remaining aid is paid to you for your other educational expenses. If you are eligible for a Federal Pell Grant, you may receive it from only one college for the same period of enrollment.

How can I have more colleges receive my FAFSA information?

• Use the Federal Student Aid PIN you will receive after your FAFSA has been processed and go to FAFSA on the Web at www.fafsa.gov. – Click the “Start Here” button to log in and then select the “Make FAFSA

Corrections” link.• Use the Student Aid Report (SAR), which you will receive after

your FAFSA is processed. Your Data Release Number (DRN) verifies your identity and will be listed on the first page of your SAR. You can call 1-800-4-FED-AID and provide your DRN to a customer service representative, who will add more school codes for you.

• Provide your DRN to the financial aid administrator at the college you want added, and he or she can add their school code to your FAFSA.

HOW MANY COLLEGES CAN RECEIVE MY FAFSA INFORMATION?

• Your FAFSA record can only list up to ten school codes.

• If there are ten school codes on your record, any new school codes that you add will replace one or more of the school codes listed.

WHERE CAN I RECEIVE MORE INFORMATION ON STUDENT AID?

• The best place is the financial aid office at the college you plan to attend. The financial aid administrator can tell you about student aid available from your state, the college itself and other sources.

• You can also visit www.studentaid.ed.gov • For information by phone you can call the

Federal Student Aid Information Center at – 1-800-4-FED-AID (1-800-433-3243)

ANYPLACE ELSE?

• Information about other nonfederal assistance may be available from foundations, religious organizations, community organizations and civic groups, as well as organizations related to your field of interest, such as the American Medical Association or American Bar Association.

• Check with your parents’ employers or unions to see if they award scholarships or have tuition payment plans.

WHY DOES THE FAFSA ASK FOR INCOME TAX & SOCIAL SECURITY INFO?

• This information is used to determine if you are eligible to receive federal student financial aid and …

• the amount that you are eligible to receive. • State and institutional student financial aid

programs may also use this information to determine if you are eligible to receive state and institutional aid and the need that you have for such aid.

MORE ABOUT INCOME TAX AND SOCIAL SECURITY INFO …

• By submitting this application, you are giving your state financial aid agency permission to verify any statement on this form and to obtain income tax information for all persons required to report income on this form.

• If there are any discrepancies – your application for aid may be delayed or rejected.

WARNING!!!

• If you receive federal student aid based on incorrect or fraudulent information, you will have to pay it back.

• You may also have to pay fines and fees. If you purposely provide false or misleading information on the FAFSA, you may be fined $20,000, sent to prison, or both.

GUYS – TAKE NOTE OF QUESTION 22!

• Almost all men—ages 18 through 25—must register with the Selective Service.

• For more information about Selective Service, visit www.sss.gov.

• The Selective Service System, and the registration requirement for young men, preserves America’s ability to provide manpower in an emergency to the U.S. Armed Forces.

WHAT IF I AM NOT A US CITIZEN?

• If you are an eligible noncitizen, write in your eight- or nine-digit Alien Registration Number.

• Generally, you are an eligible noncitizen if you are – (1) a permanent U.S. resident with a Permanent

Resident Card (I-551); – (2) a conditional permanent resident with a

Conditional Green Card (I-551C);

WHAT IF I AM ON A STUDENT OR OTHER VISA?

• If you are in the U.S. on an F1 or F2 student visa, a J1 or J2 exchange visitor visa, or a G series visa (pertaining to international or government organizations), select “No, I am not a citizen or eligible noncitizen.”

• You will not be eligible for federal student aid; however, you should still complete the application because you may be eligible for state or college aid.

WHAT ARE THEAPPLICATION DEADLINES?

For the 2013-14 school year:• Federal Aid Deadline - June 30, 2014 • State Aid Deadlines vary … for New Jersey– Must be received by:

October 1, 2013, for fall & spring terms March 1, 2014, for spring term only

For the 2014-15 school year – the dates should be similar.