College Financial Aid Night
Agenda Financial aid timeline
What is financial aid
College costs
Determination of eligibility
Need-based programs
Alternatives
How to complete a FAFSA
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Financial Aid Timeline
Net price calculator list: http://www.usnews.com/education/best-colleges/features/net-price-calculator
Types of Student Financial Aid
Grants
Scholarships
Loans
Employment
Student Financial Aid
Merit-based* academics talent athletic others
Need-based financial considerations
*Average merit aid granted at over 600 colleges and universities: http://thechoice.blogs.nytimes.com/2012/07/23/merit-aid-chart/
Basic Formula for Aid
Cost of Attendance (varies widely)
Expected Family Contribution
Eligibility for Need-Based Funds
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=
Direct College Costs Tuition
Required fees
Room
Meals
Books and Supplies
Indirect College Costs Transportation Miscellaneous personal expenses,
including documented costs for a personal computer
Loan fees
What is an EFC?EFC---Expected Family ContributionEFC is the end result after submitting a
FAFSAParent Contribution: Uses parent income
and assets (after protecting some assets and income for basic living expenses)
Student Contribution: Uses student income and assets (after protecting some assets and income of $6,130)
Determination of EFC
Parents’ contribution
+ Student’s contribution
= Expected Family Contribution
Resource to review: FAFSA Forecaster www.fafsa.gov
Applying for Federal Financial Aid
Free Application for Federal Student Aid (FAFSA) Download the FAFSA on the Web Worksheet via
www.fafsa.gov to prepare your form99.99% of forms are filed online!Sign with a Personal Identification Number (PIN)
Can obtain paper form: 800-4-FED-AID (1-800-433-3243)
Complete FAFSA at www.fafsa.gov after January 1, 2014 for the next academic year
Results available online in 48 hours and to the institutions you list on the FAFSA
Other forms:
Institutional application – ex. YU
CSS (College Scholarship Service) PROFILE – ex. UMich, Brandeis, Case
Outside scholarship applications
Applying for Financial Aid
Applying for Financial Aid Meet earliest deadline of colleges in which
you are interested – ex. YU, Brandeis 2/1, OSU 2/15
Complete all questions accurately
Estimate if necessary to meet early deadlines
Don’t wait until you are admitted to file the FAFSA
Keep a photocopy of all documents for your records
Applying for Financial AidDownload a financial aid deadline
organizer!
http://collegeadmissionbook.com/worksheets
Need Help?College Goal Sunday 2014
• Sunday, February 9, 2014– Starts at 2PM – Get FREE help completing your FAFSA from college
financial aid officers. • Visit http://www.ohiocollegegoalsunday.org to:
– Learn more– Find closest location– Register
Other options:
College Now Cleveland’s walk-in resource center Level 3 of Tower City Center
Hours: Monday – Friday: 10 a.m. – 5 p.m.
Potential Institutional Adjustments to EFC for
Institutional Funds Minimum contribution from students to
their educational costs (summer earnings) Use home equity in determination of net
assets Make adjustments for medical/dental
expenses Make adjustments in the
losses/depreciation claimed for business/farm operations
Special Circumstances Significant change in your family…
Unemployment of a parent
Death in the family
Change in parents’ marital status
Medical expenses not covered by insurance
Student cannot obtain parent information
Notify the financial aid office at your college of any special circumstances. Be prepared to provide documentation of any change, including the financial impact of the change.
Sources of Financial Aid
Federal Government
State Programs
Institutional funds
Outside agencies
Federal Aid Programs
Federal Pell Grant
Federal Supplemental Educational Opportunity Grant
Federal Work-Study
Federal Perkins Loan
Ford Federal Direct Loan
Federal TEACH Grant (loan)
What about Federal Loans?
Federal Direct Subsidized and Unsubsidized Loans 3.86% for unsubsidized and subsidized loans
Federal Perkins Loans—5%
Federal Direct PLUS Loans – 6.41% Parents of dependent students
Graduate or professional students
Ohio Aid Programs (partial listing)
Choose Ohio First Scholarship (for STEM)
Nurse Education Assistance Loan
Program
Ohio College Opportunity Grant
Institutional and Outside Aid
Institutional AidGrants & ScholarshipsLoan ProgramsStudent Employment
Outside AgenciesLocal organizationsCivic GroupsParents’ employersJFSA: http://www.jfsa-cleveland.org/financialaid.asp Hebrew Free Loan Association of Cleveland: http://www.hflaclev.org/
Is that all there is? Private alternative loans for students or
parents Last resort--Always apply for federal loans first!
College payment plans
Outside scholarships – see guidance manual!
Tax credits – American Opportunity &
Lifetime Learning
Tax Credits - American Opportunity
Tax Credit
• Available for the first four years of college to assist with tuition, fees and required books.
• Up to $2500 tax credit –reduces amount of taxes owed; up to 40% refunded when no income tax due.─ 100% of first $2,000 expenses and 25% of the next
$2,000. • Examples:
─ Tuition of $8000 paid in 2013-- May claim $2500 on the tax return completed for 2013 (filed in 2014).
─ Tuition of $1,200--May claim the full $1,200─ Tuition of $3,000--May claim $2,250 (all of the first
$2000, and 25% of the remaining tuition…which is $250).
Tax Credits - Lifetime Learning Available for all years Can claim for remaining undergraduate
years and graduate study as well as professional development classes.
Can claim credit for 20% of tuition & fees, up to maximum of $2,000.
Income restrictions on who can claim Lifetime and American Opportunity Tax Credits ….. Consult with your tax advisor!
IRS Deductions and Credits for 2013
Families with adjusted gross incomes up to
$80,000 (single filers) & $160,000 (joint filers) can claim tax credits.
Certain taxpayers will qualify to take a tax deduction for tuition and fees of up to $4,000 (even if they don’t itemize).
Cannot claim American Opportunity or Lifetime Learning Credit in the same year as deduction for same student.
Don’t miss out on the tax credits or deductions! Talk to your tax preparer or do your research.
Less expensive options to consider:
Low-cost pathways: Many universities have partnerships that allow students to
start their degree at a less-expensive community college and finish it on a main university campus. Some Ohio options:
Less expensive options to consider:
Plan for summer classes! Ex. Can transfer 10 credits/summer to YU. Many CSU
courses are pre-approved.
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Additional Information Federal Department of Education
http://studentaid.gov/
Ohio Association of Student Financial Aid Administrators http://www.oasfaa.org
Ohio Means Success http://www.ohiomeanssuccess.org
The SmartStudent Guide to Financial Aid www.finaid.org
Collegeboard: Big Futurehttps://bigfuture.collegeboard.org/pay-for-college
A Closer Look at the FAFSA
Breaking news!
http://www.insidehighered.com/news/2013/10/28/colleges-use-fafsa-information-reject-students-and-potentially-lower-financial-aid
What is a PIN?
What is a Personal Identification Number (PIN)? Issued to an individual and is a “signature” for
Federal Student Aid purposes Faster than using paper signature PIN will expire if not used for 18 consecutive
months Parent’s PIN may be used for multiple children Each student must have own PIN Obtain PIN from www.pin.ed.gov
FAFSA on the Web Worksheet
Complete the Worksheet to help you complete the FAFSA on the Web
Questions on the Web are presented in a different order than the questions on the paper FAFSA
The questions on the Worksheet are ordered as they appear online
Worksheet is available in PDF form www.fafsa.gov
Message for Applicants Who Indicate They “Will File”
Their Taxes
• Available (early Feb.) to those who have filed taxes and are:
• Completing the FAFSA• Correcting their FAFSA (updating with IRS
data)
• Does not apply to• Married but are filing separately• Marital status changed after 12/31/13• Those filing amended or foreign tax returns
IRS Data Retrieval Tool (within FAFSA)
• To use the Tool, must have: • A valid Social Security Number and• Filed a 2013 federal tax return• The exact street address used on the tax return!
• Filtering question on FAFSA helps determine if you can use
• IRS Data Retrieval Process meets verification requirements
• Secure and FAST option
IRS Data Retrieval Tool (within FAFSA)
IRS Data Retrieval ToolFiltering Question
Financial Aid Presentation NCASFAA/ NCSEAA
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DependencyStudents are independent if: 24 years old or older Orphan, foster child/ward of the State Have children for whom they provide more than 50%
support Have a legal guardian Married Veteran or on active duty Graduate students Legally emancipated Homeless or at risk of homelessness
Students not meeting one of the above must include parental information for full aid consideration.
• Parents living and married to each other• Parent widowed or single • Parents divorced or separated—answer questions for parent
with whom student lived more during past 12 months
– If student lived with each parent exactly the same amount
of time, answer for the parent who provided more
financial support during the past 12 months or during the
most recent year that the student actually received
support from a parent• If parent remarried, answer about that parent and the
person whom parent married (stepparent)
Who are considered parents on the FAFSA?
Signing the FAFSA After completing the FAFSA, student and
parent must sign by:
Entering PIN Both student and one parent should each have PINs
OR
Print signature page, sign and mail to address provided within 7 days
Sign the Application and Submitby clicking “Submit My FAFSA
Now”
The Sign & Submit page includes the signature process for the student
Confirmation Page
• Next steps
• EFC estimate
• Pell Grant & Direct Loan estimates
What happens after I file the FAFSA?
1. Complete verification if required.2. Respond to any questions from the
campus aid office.3. Receive financial aid notification.4. Reply to offers of aid (and admission).5. Complete promissory note if borrowing
money.6. Notify campus of outside scholarships.
Questions?