FINANCING YOUR COLLEGE EDUCATION Columbia High School October 4, 2017 Presenter Douglas Wilson Kean University 1
Overview Types of Assistance Scholarship Information Applying for Need-Based Aid Eligibility Requirements Application Process Award Notification Federal, State and Alternative Programs Resources Next Steps 2
Preparing for College Parents Research College Costs College Savings Plan (529): NJBEST Students Extra Curricular Activities Research College(s): Curriculum, etc. Research Scholarships Underclassmen & Parents FAFSA4caster (http://fafsa4caster.ed.gov) 3
Preparing High School Seniors Obtain/Review Admissions, Financial Aid Materials (Brochures, Web sites) for Each School to Which You are Applying Complete FAFSA and Other Application(s) Required by School or State Agency Gather 2016 Data (Tax Forms, Untaxed Income), Current Bank Statements, Asset Info Apply for FSA ID if filing FAFSA on the Web Meet all Application Deadlines 4
Student Aid Philosophy Primary Responsibility of Financing Student s Education: Family Supplemental Sources Federal Government State Government Colleges & Universities Others Community Organizations Student or Parent s Employer Veterans Administration (including Dependents) Financial Institutions 5
Types of Aid Scholarships Based on Merit Do Not Have to be Repaid Grants Based on Need Do Not Have to be Repaid Loans Must be Repaid!! Subsidized or Unsubsidized Student Employment Part-Time; On or Off-Campus For Stipend, Remission 6
Scholarship Sources High School Guidance Department Public Library Community Organizations Colleges/Universities World Wide Web (ex: www.fastweb.com) Watch out for scams! Mail, Telephone, or E-Mail Processing fees (check, CC, ABA #) 7
Applying for Student Aid Complete Need Analysis Form(s) FAFSA CSS Profile (if applicable) Institutional Application (if applicable) Respond to Request(s) for Additional Info Tax Returns/Transcripts, Citizenship, Etc. Promissory Note (After Award Offer) Re-Apply Each Year: Aid Not Renewable 8
Student Eligibility Requirements for Federal Student Aid Have a Valid Social Security Number Enrolled in a Degree or Certificate Program at an Eligible Institution U.S. Citizen or Eligible Non-Citizen Registered with Selective Service (if required) Cannot Be in Default on a Federal Student Loan or Owe Repayment on a Federal Grant Maintain Satisfactory Academic Progress as Defined by School Drug-Related Conviction May Result in Denial 9
Free Application for Federal Student Aid (FAFSA) Determines Eligibility for Federal Grants, Loans, Student Employment Available in English and Spanish Submission of FAFSA Online: https://fafsa.gov **recommended** Paper (pdf) FAFSA available October 1 each year; aid is not automatically renewable 10
Changes to the FAFSA 2016-2017 and earlier Report Prior Year Income (2015 for 16-17) FAFSA available January 1 each year Beginning 2017-2018 Report Prior-Prior Year Income (Tax Year 2016 for 2018-2019) FAFSA available in October 1 each year No Need to Estimate Income Data Earlier Notification of Aid Packages 11
https://fafsa.gov Free!! 12
FSA ID Electronic Signature: FAFSA on the Web Can Apply now: https://fsaid.ed.gov Other Uses E-Sign Master Promissory Note View Financial Aid History Student and Parent must apply for Separate FSA IDs **FSA ID replaced PINs 05/10/15** 13
FAFSA Sections 1. Student Information 2. Student (Dependency) Status 3. Parent Income & Assets 4. Student/Spouse Income & Assets 5. College(s) to Receive FAFSA Data 6. Review, E-Sign FAFSA 7. Submit FAFSA 8. Confirmation Page: Submit State Info 14
Section 1: Student Information Demographic Information Name, Address, Phone, SSN, DOB Driver License Number E-Mail Address Citizenship Provide ARN if Non-Citizen Marital Status Selective Service Registration (Male Applicants) 15
Section 2: Dependency Status Student Must Meet One of the Following Conditions to Be Considered Independent: Born Before January 1, 1995 Married (or Separated but not Divorced) Enrolled in Master s or Doctorate Program 2018-2019 Currently Serving Active Duty Other than Training Veteran of U.S. Armed Forces Have Dependents Other Than Spouse Children who receive more than half their support from student Dependent who lives with and receives >1/2 support from student Orphan, in Foster Care, or Ward of Court (Since Age 13) 16
Dependency Status (Continued) Emancipated Minor as Determined by a Court in Applicant s State of Legal Residence In Legal Guardianship as Determined by a Court in Applicant s State of Legal Residence On or After 07/01/17, Determined to be Unaccompanied Youth who was Homeless by: Applicant s High School or School District Homeless Liaison; Director of an Emergency Shelter Program funded by the U.S. Department of Housing and Urban Development; or Director of a Runaway or Homeless Youth Basic Center or Transitional Living Program Otherwise, Parents Information Must be Reported 17
Definition of a Parent Biological or Adoptive Not Parents for FAFSA Purposes: Grandparents Foster Parents Siblings Legal Guardians, etc. If parents are divorced or separated, report information for custodial parent. If custodial parent has remarried, include stepparent s information. 18
Sections 3 & 4: Income & Assets Section 3: Parent(s) Name, SSN, DOB Household Size, Number in College 2016 Income AGI*, Tax Paid, and/or Wages 2016 Untaxed Income (With Some Exclusions) Current Assets (In Bank, Investments, Bus/Farm) Section 4: Student (and Spouse, if Married) 2016 Income* & Current Assets (See Above) * Tax Filers Can Use IRS Data Retrieval Tool 19
Section 5: Colleges to Receive Info List Up to Ten (Four on Paper FAFSA) Housing Plans: On/Off Campus, with Parent Section 6: Review FAFSA, Sign FSA ID or Print Signature Page (Web Only) Preparer s Information (if Applicable) Section 7: Submit FAFSA Confirmation Additional Information for NJ Residents College Navigator 20
FAFSA Confirmation Page
Deadline For Submitting FAFSA 2018-2019 New Jersey State Aid (Date Received): New Applicants: September 15, 2018 Spring Only: February 15, 2019 Renewal Applicants: April 15, 2018 Institutional and Campus Based Aid: Check with College(s) for Priority Filing Date(s) Additional Form(s) May Be Required Federal Deadline: June 30, 2019 22
After Filing the FAFSA Matches with Federal Databases e.g., SSA, USCIS, Selective Service Results Forwarded to: Applicant Student Aid Report College(s) Inst. Student Info Record State Agency Award Notification from College(s) Paper or Electronic Response May Be Necessary May Be Selected for Verification 23
Verification of Tax Data IRS Data Retrieval Tool - from FAFSA Transfer Tax Data from IRS Database to FAFSA Submit FAFSA (initial or correction) Request for Paper Tax Return Transcript Waived IRS Tax Return Transcript Online (www.irs.gov) or Form 4506-T Tax Return Transcript, not Account Transcript Colleges Will Not Accept Tax Return
Federal Student Aid Programs Pell Grant 2017-2018 Award Range: $596 - $5,920 Direct Loans Subsidized/Unsubsidized Maximum Award: $5,500 (freshmen) Campus Based Aid SEOG (grant), Work-Study (self-help) Award Amounts Determined by Schools TEACH Grant Maximum Annual Award: $4,000 25
Apply for State Aid (New Jersey) Link from FAFSA Confirmation Page; or Login at https://njfams.hesaa.org Additional Information to Report Student s Driver License Number, State (If Not Reported on FAFSA) Student s Untaxed Social Security Benefits Student s Earned Income Tax Credit Parent s Untaxed Social Security Benefits (D) Parent s Earned Income Tax Credit (D) Veterans Educational Benefits (I)
State Programs (New Jersey) Tuition Aid Grant (TAG) Awards Vary by Sector (2-yr,4-yr,public,private..) Part-Time TAG (County College Students) Educational Opportunity Fund (EOF) NJSTARS (County College) Up to Five Semesters of Fulltime Tuition Scholarship Programs NJCLASS Loan http://www.hesaa.org 27
Institutional Programs Grant and Loan Programs May Be Determined from FAFSA/Profile Data Institutional Scholarships May Not Be Administered By FA Office Additional Forms May Be Required Check with College(s) for Additional Information 28
CSS Profile Used to Award Non-Federal Funds 400 Scholarship Programs and Private Colleges Customized for College/Program $25 Initial Fee (incl. one College/Program) + $16 per Additional College/Program) Apply Online: https://cssprofile.collegeboard.org 29
Additional Educational Loans Federal Parent Loan for Undergraduate Students (PLUS) Private Educational Loans Truth in Lending (Disclosures) Based on Borrower s Creditworthiness Non-Subsidized Limit: COA EFA Before Applying: Explore FSA and Other Resources Consider Payment Plans with College 30
Changes in Circumstance Examples Loss of Employment, Income Divorce, Separation, or Death Unable to Obtain Parent s Info Due to Unusual Circumstances (Dependency Override) Contact FA Office for Instructions Must File Initial FAFSA with Base Year Income Submit Forms, Documentation Decisions are Institution-Specific 31
Financial Aid Office Determines Aid Eligibility Packages Aid Based on Availability of Funds Provides Counseling to Students/Parents Financial Planning Special Circumstances Review Loan Entrance/Exit Counseling Provides Information at Outreach Programs Open Houses/Orientation High School Nights FAFSA Day (formerly College Goal Sunday) http://njfafsadays.org 32
FAFSA4caster Simulates FAFSA Process Estimates EFC, Federal Student Aid College Cost Worksheet Time-Saver for Real FAFSA Processing Student Demographics Pre-populated Student & Parent FSA IDs are Valid https://fafsa.ed.gov/fafsa/app/f4cform 33
Federal and State Government Resources Federal Student Aid Information Center 1-800-4FEDAID (1-800-433-3243) https://studentaid.ed.gov Federal Trade Commission (fraud) 1-877-FTC-HELP (1-877-382-4357) https://www.ftc.gov NJ Higher Education Student Assistance Authority 1-800-792-8670 http://www.hesaa.org 34
Remember Apply Early Apply Annually Respond to College and/or State Request(s) for Information in a Timely Manner Contact Financial Aid Office if there are Changes in Family Financial Circumstances Watch Out for Scams! QUESTIONS? COMMENTS? 35