What is financial aid? Cost of attendance (COA) Expected family contribution (EFC) Financial need Categories, types, and sources of financial aid

Transcription

1

2 What is financial aid? Cost of attendance (COA) Expected family contribution (EFC) Financial need Categories, types, and sources of financial aid Free Application for Federal Student Aid (FAFSA) Prior-prior year and early FAFSA Special circumstances Maryland State Awards

3 Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses

4

5 Amount family can reasonably be expected to contribute Stays the same regardless of college Two components Parent contribution Student contribution Calculated using data from a federal application form and a federal formula

6 Cost of Attendance Expected Family Contribution = Financial Need

7

8 Need-based aid Non-need-based aid

9 Grants Loans Employment Scholarships

10 Money that does not have to be paid back Awarded on the basis of merit, skill, or unique characteristic

11 Money that does not have to be paid back Usually awarded on the basis of financial need

12 Money students and parents borrow to help pay college expenses Repayment usually begins after education is finished Only borrow what is really needed Look at loans as an investment in the future

13 Allows student to earn money to help pay educational costs A paycheck; or Nonmonetary compensation, such as room and board Student may opt whether or not to work or number of hours to work

14 Federal government States Colleges and universities Private sources Civic organizations and churches Employers

15 Largest source of financial aid Aid awarded primarily on the basis of financial need Must apply each year using the FAFSA

16 Federal Pell Grant Iraq and Afghanistan Service Grant (IASG) Federal Supplemental Educational Opportunity Grant (FSEOG Federal Perkins Loan Federal Work- Study (FWS) Subsidized and Unsubsidized Federal Direct Student Loans (Direct Loans) PLUS Loans

17

18 Award aid on the basis of both merit and need Aid may be gift aid or self-help aid Use information from the FAFSA and/or institutional applications Deadlines and application requirements vary by institution Check with each college or university

19 Foundations, businesses, charitable organizations Deadlines and application procedures vary widely Begin researching private aid sources early

20 Research what is available in community To what organizations and churches do student and family belong? Application process usually occurs during spring of senior year Small scholarships add up!

21 Companies may have scholarships available to the children of employees Companies may have educational benefits for their employees

22 By filling out one form, you can apply online for nonfederal financial aid from almost 400 colleges and scholarship programs. WHAT does the PROFILE cost? The fee for the initial application and one college or program report is $25. Additional reports are $16. Payment may be made via credit or debit card. Fee waivers are granted automatically based on the information entered on the PROFILE application to students who are first-time college applicants and are from families with low incomes and assets. International students are not eligible for fee waivers. This waiver covers the application fee and the reporting fees for up to eight colleges or scholarship programs.

23 A standard form that collects demographic and financial information about the student and family May be filed electronically or using paper form Available in English and Spanish

24 Information used to calculate the expected family contribution (EFC) Amount of money a student and his or her family may reasonably be expected to contribute towards the cost of the student s education for an academic year Colleges use EFC to award financial aid

25

26 FAFSA on the Web Worksheet: Used as pre-application worksheet Questions follow order of FAFSA on the Web

27 Built-in edits to prevent costly errors Skip-logic allows student and/or parent to skip unnecessary questions Option to use Internal Revenue Service (IRS) Data Retrieval Tool to import tax data More timely submission of original application and any necessary corrections More detailed instructions and help for common questions Ability to check application status online Simplified application process in the future

28 While completing FOTW, applicant may submit real-time request to IRS for tax data IRS will authenticate taxpayer s identity If match found, IRS sends real-time results to applicant in new browser window Applicant chooses whether or not to transfer data to FOTW

29 Some will be unable to use IRS DRT Examples include: Filed an amended tax return No Social Security Number (SSN) was entered Student or parent married but filed separately

30 The FSA ID is a username and password that has replaced the Federal Student Aid Pin If you have a Federal Student Aid Pin, you will be able to enter it and link it to your FSA ID The FSA ID allows you to electronically sign your Federal Student Aid documents It may be used by students and parents throughout aid process, including subsequent school years The FSA ID confirms your identify when accessing your financial aid information

31 Social Security Number Citizenship status Marital status Drug convictions Selective Service registration Level of parents school completion

32 FAFSA asks questions to determine dependency status for federal student aid (not IRS) purposes: If all No responses, student is dependent If Yes to any question, student is independent

33 Tax, income, and other financial information Dislocated worker status Receipt of federal means-tested benefits Assets Untaxed income

34 Assets include: Money in cash, savings, and checking accounts Businesses Investment farms Other investments, such as real estate (other than the home you live in), UGMA and UTMA accounts, stocks, bonds, certificates of deposit, etc.

35 Assets do not include: The home you live in UGMA and UTMA accounts for which you are the custodian, but not the owner The value of life insurance Retirement plans (401[k] plans, pension funds, annuities, non-education IRAs, Keogh plans, etc.)

36 Tax, income, and other financial information Dislocated worker status Receipt of federal means-tested benefits Assets Untaxed income

37 College and housing information FAFSA preparer information Certification of Statement of Educational Purpose

38 Required Student One parent (dependent students) Format for submitting signatures Electronic using FSA ID Signature page Paper FAFSA

39 Social Security Numbers Divorced/remarried parental information Income earned by parents/stepparents Untaxed income U.S. income taxes paid Household size Number of household members in college Real estate and investment net worth

40 Central Processing System (CPS) notifies student of FAFSA processing results by: Paper Student Aid Report (SAR) if paper FAFSA was filed and student s address was not provided SAR Acknowledgement if FAFSA filed on the Web and student s address was not provided

41 Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA is submitted College reviews ISIR May request additional documentation

42 Review data for accuracy and correct any errors Update estimated tax information when actual figures become available

43 If necessary, corrections to FAFSA data may be made by: Using FAFSA on the Web ( if student has an FSA ID; Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or Submitting documentation to college s financial aid office

44 You ll be able to submit your FAFSA earlier. You can file your FAFSA as early as Oct. 1, 2016, rather than beginning on Jan. 1, If you file the FAFSA earlier, you ll have an earlier indication of how much your family is expected to contribute, which will help with budgeting for the upcoming school year.

45 You ll use earlier income and tax information. Beginning with the FAFSA, students will be required to report income and tax information from an earlier tax year. For example, on the FAFSA, you and your parent(s), as appropriate will report your 2015 income and tax information, rather than your 2016 income and tax information. This change will make the FAFSA easier because you ll already have done your taxes by the time you fill out your FAFSA, and you may be able to automatically import your tax information into your FAFSA.

46 Cannot be documented using FAFSA Send written explanation and documentation to financial aid office at each college College will review and request additional information if necessary Decisions are final and cannot be appealed to U.S. Department of Education

47 Change in employment status Unusual medical expenses not covered by insurance Change in parent marital status Unusual dependent care expenses Student cannot obtain parental information

48 An Overview of State Financial Aid Programs gramdescriptions/prog_ea.asp

49 Need-based Programs Legislative Programs Unique Population Programs Other State Aid Programs

50 File the Free Application for Federal Student Aid FAFSA File on-line at Complete all items Include minimum of one Maryland Institution All schools included will receive the FAFSA information If eligible, first Maryland school s COA will be used

51 Howard P. Rawlings Educational Assistance & Guaranteed Access Grant Part-Time Grant

52 New and renewal students must file the FAFSA by March 1 Each Year OSFA will electronically receive FAFSA information if submitted on time Students must demonstrate financial need (Students with the greatest need and lowest EFC are awarded first) Students must enroll as full-time, degreeseeking undergraduates at a 2-year or 4-year college or university in Maryland Parents and students must be Maryland residents

53 Apply as a high school senior, unless extenuating circumstances prevents it Must submit a Guaranteed Access Grant application and FAFSA FAFSA encouraged by March 1 Minimum 2.5 GPA cumulative, unweighted high school GPA Must complete a college preparatory program Students must have a high school diploma; those with a GED are not eligible Must enroll as a full-time, degree seeking undergraduates at a 2-year or 4-year college or university in Maryland Parents and students must be Maryland residents

54 Funds are allocated directly to Maryland colleges College financial aid offices select students: Enrolled as part-time (6-11 credits per semester) undergraduates, or Dually enrolled in high school Students must demonstrate financial need

55 All students may apply: High school seniors Undergraduates Graduates Career or technical school students May be used for: Full-time or part-time enrollment Maryland residents

56 File FAFSA by March 1 Demonstrate financial need Some awards are renewable for an additional 3 years Contact Senator for application and renewal procedures Note: Senators have the option to award; some do not select recipients but put their funds into other programs administered by OSFA

57 Contact Delegate for application procedure Must apply each year for an award; they are not renewable FAFSA may not be required Note: Delegates have the option to award; some do not select recipients but put their funds into other programs administered by OSFA

58 Funds awarded for the Senatorial and Delegate scholarships may be used at an outof-state institution if the student s academic program is not offered at a Maryland institution Review OSFA website under Financial Aid Applications, Senatorial and Delegate Scholarship programs, for more information on how to apply

59 Apply through the institution s financial aid office You must be: The son or daughter of a member of the United States Armed Forces who died or who suffered a service connected 100% permanent disability as a result of military service A veteran who suffers a service connected disability of 25% or greater as a result of military service and has exhausted or is no longer eligible for federal veterans educational benefits The son, daughter, or surviving spouse (who has not remarried) of a victim of the September 11, 2001 terrorist attacks who died as a result of the attacks on the World Trade Center in New York City, the attack on the Pentagon in Virginia, or the crash of United Airlines Flight 93 in Pennsylvania

60 You must be (continued): A POW/MIA of the Vietnam Conflict or his/her son or daughter The son, daughter, or surviving spouse (who has not remarried) of a State or local public safety employee or volunteer who died in the line of duty or who was 100% disabled in the line of duty A State or local public safety employee or volunteer who became 100% disabled in the line of duty

61 Students who resided in an out of home placement in Maryland: On their 13th birthday and were then adopted from the out of home placement after their 13th birthday; or At the time they graduated high school or earned a GED Attend a public college in Maryland File the FAFSA every year Tuition and fees not covered by grants or scholarships are waived Must enroll as a degree-seeking student before age 25 Be sure to discuss with the financial aid officer at the college or university List of eligible students is sent to the public colleges and universities Contact social worker if not on the list

62 Be declared as an unaccompanied homeless youth who is not in the physical custody of a parent or guardian AND Be declared a homeless child or youth as defined by the McKinney-Vento Homeless Assistance Act The Financial Aid Administrator must verify that the youth qualifies as an Independent student under the federal College Cost and Reduction & Access Act.

63 The tuition waiver provides exemption from paying any tuition and mandatory fees at a Maryland public institution of higher education You are exempt from paying tuition and mandatory fees at a public college in Maryland. The tuition waiver only applies to tuition and fees. Tuition is determined by the individual public institution of higher education and includes cost for tuition, registration fees as well as all fees that are required as a condition of enrollment. Tuition does not include room, board, books, and transportation.

64 The youth must: Complete and file the Free Application for Federal Student Aid (FAFSA) each year. Be enrolled on or before he or she reaches the age of 25.The youth continues to be exempt from paying tuition and fees until 5 years after first enrolling as a candidate for an associate, bachelors, or a vocational certificate at a Maryland public institution of higher education. Be enrolled full time or part time for an associate, bachelors, or a vocational certificate at a Maryland public institution of higher education. Students are eligible to receive the Unaccompanied Homeless Youth Tuition Waiver for the following semesters: A. Fall B. Winter C. Spring D. Summer

65 Phone: Notice of Nondiscrimination: AACC is an equal opportunity, affirmative action, Title IX, ADA Title 504 compliant institution. For information on AACC s compliance and complaints concerning sexual assault, sexual misconduct, discrimination or harassment, contact the federal compliance officer at or Maryland Relay 711.