1/22/2015 Financial Aid Information Session 2015-2016 January 22, - - PDF document

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Financial Aid Information Session 2015-2016 January 22, 2015 Farmington High School

Tina Kukowski Assistant Director of Student Financial Services Carleton College

What is “Financial Aid”?

• Financial Aid refers to specific borrowed, given, or

earned money that can be obtained from various sources to help pay for college

• It is intended to make up the difference between

what your family can afford to pay and what college costs

Need Based Aid

• Grants

Awarded based on the basis of financial need

• Scholarships

Awarded based on merit, skill or unique characteristics

• Federal or State Work-Study

A need based employment program that provides on and off campus jobs to students Allows a student to earn money to help pay educational costs

• Federal Perkins Loan & Federal Direct Subsidized Loans

Awarded based on the basis of financial need Interested is covered by government while student is in school

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Non Need Based Aid

• Federal Direct Unsubsidized Loans
• Federal Direct Parent Loan for

Undergraduate Student (PLUS) Loans

• MN SELF Loan
• Private Loans

Repayment usually begins after student is out of school Only borrow what is needed!

Cost of Attendance (COA)

Direct Expenses (paid to the institution) Tuition and fees Campus Room & Board Indirect Expenses (may vary by student, estimated for the “average” student expenses) Book & Supplies Transportation Living Expenses Miscellaneous

• The cost of attendance for a student is an estimate
• f that student’s educational expenses for the

period of enrollment.

• COA varies from school to school

What does it cost to go to college?

Comprehensive Cost 2014-15 (tuition, room, board, and required fees)

• St. Cloud State: $16,302

University of Minnesota (Twin Cities): $25,374 Metro State: $25,556

• St. Catherine’s: $41,027
• St. Olaf: $51,200

Carleton College: $60,102

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Expected Family Contribution (EFC)

• Result of the FAFSA calculation – determines

eligibility for federal, state and institutional need- based grants, loans and work-study.

• Parent and Student Component
• Factors in income, net assets, number in the family,

number in college

• Assumes that you need some money left for

expenses other than college

• EFC is a constant for each student- does not change

based on the cost of the school

Determining Financial Need

The Formula Cost of Attendance (COA)

• Expected Family Contribution (EFC)

Financial Need

Financial Aid Examples

School A School B School C COA $16,500 $25,000 $55,000 EFC

• $4,000
• $4,000
• $4,000

Need $14,500 $21,000 $51,000 Federal Pell Grant

• $2,000
• $2,000
• $2,000

Work Study

• $1,000
• $2,000

Institutional Grant

• $3,000
• $43,500

Student Loan

• $5,500
• $5,500
• $3,500

PLUS Loan

• $4,000
• $9,500

Remaining

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How to Apply

To be considered for student aid, a student must complete all forms required by a college. Free Application for Federal Student Aid (FAFSA) Institutional Forms or requirements (such as CSS/Financial Aid PROFILE Respond promptly for any requests for additional information (such as verification documents) Communicate with each college to find out what is required for a complete application and any school specific deadlines.

Completing the FAFSA – www.fafsa.gov Completing the FAFSA

What information is needed?

• Social Security Number – Be sure this is correct!
• Alien Registration Number/Permanent Resident

card if you are not a US Citizen

• Driver’s License Number if you have one

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Completing the FAFSA

What information is needed?

• You (and your spouse’s) signed 2014 Federal

Income Tax Return

• IRS 1040, 1040A, 1040EZ forms
• W-2 forms
• Use the IRS Data Retrieval feature on the FAFSA to

transmit your 2014 taxes into your FAFSA.

• Available 2-3 weeks after filing taxes online, 8-11

weeks after filing on paper

Completing the FAFSA

What information is needed?

• Records of untaxed income, such as:
• Child support paid/received
• Veterans non-educational benefits
• Worker’s Compensation
• Any other untaxed income information
• Asset information
• Bank statements
• Investment real estate, business, and farm

Completing the FAFSA

What information is needed?

• Asset information
• Stock/Bond options
• 529 plans and other college savings programs

Parental information is required unless a student is at least 24 years of age or meets the criteria for filing as an independent student

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Avoid FAFSA Errors

Name must be the same as it is on your social security card. If entry is zero or none, enter 0. Don’t leave blank. Enter your school’s code Make sure student and parent sign the FAFSA.

Born before 1/1/1992 Married as of the day the FAFSA is filed

Have dependent children who they support Are an orphan or ward of the court Emancipated Minor Homeless or at the risk of being homeless In Legal guardianship Are a veteran of the Armed Forces Will be working on a Graduate Degree during the 2015-2016 school year

Dependent or Independent

A student is Independent if they can answer “yes” to any of the following: Students who cannot answer yes are considered dependent and must include parental information.

Dependent Student – Who Is Considered a Parent?

Grandparents, foster parents, other relatives and legal guardians are NOT considered parents on the FAFSA unless the student has been legally adopted If biological/adoptive parents are married OR are living together but not married, provide information for both parents If biological/adoptive parents are divorced or separated, provide information for the parent with whom the student lives for the majority of the time If that parent is remarried, include stepparent information, even if the stepparent did not adopt the student

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FAFSA PIN Registration www.pin.ed.gov Personal Identification Number (PIN)

Serves as an electronic signature and provides access to personal records PIN is conditional until relevant information is verified with Social Security Administration (1-3 days) Parents and students need separate PINs to sign the FAFSA New FSA ID coming April 26, 2015

Types of Aid - Grants

Federal Pell Grant - awards from $602 - $5,730/year in 2014-15 – based on EFC. Federal Supplemental Educational Opportunity Grant (FSEOG) – Limited funding, priority given to student with exceptional need, awards from $100- $4000/year. Minnesota State Grant – Must be a MN resident enrolled at an eligible MN

• school. Awarded to students from low and moderate income families, the

maximum award per year at a public 2-year college is $6,927 and at a 4- year private $10,745 in 2014-15. Minnesota Dream Act – For undocumented students that attended a MN high school for at least 3 years, or graduated from a MN high school or earned a GED in MN. Allows the student who can’t fill out a FAFSA possible MN state aid and instate tuition rates. See the MN Office of Higher Education website for more details www.ohe.state.mn.us/MNDreamAct Institutional Grants – Can me need based or merit based and awarded from funds the college or university has.

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Types of Aid - Scholarships

Scholarships Count!

Scholarships help fill the financial gap Scholarships do not have to be paid back Never pay for a scholarship search There are scholarships with deadlines in every month of the year

Apply regularly and apply often

Continue searching for scholarships after you have enrolled in college Notify your college of any scholarships received

Scholarships Search

Don’t forget to check in your local area as well High School and College Counselors College Fairs/Events College websites Employer’s Church, Unions, Clubs, etc. Word of mouth

• Do you know anyone who received scholarships? Ask

them about their search.

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Scholarships Search

Internet Resources

• Fastweb.com
• Scholarshipsamerica.com
• Scholarships.com
• Zinch.com
• Collegesholarships.org
• Collegeboard.com

Types of Aid – Work Study

Part-time student employment Earnings paid to student Work study earnings not included when determining EFC on the next years FAFSA Funded by Federal, State, or Institution

Types of Aid - Loans

Only borrow what is needed!

Federal Perkins Loan – 5% interest rate, no fees, interest and repayment begins after leaving school. Federal Stafford/Direct Loan – low interest loans (4.66% for the 2014-2015) repayment on principal starts after leaving school. Interest may or may not be charged while in school. Federal Direct Parent Loan for Undergraduate Student (PLUS) – Loan in parents name for their child's education. Interest rate of 7.21% in the 2014- 15 year. Credit check is required and repayment starts 60 days after last disbursement. MN SELF Loan – For any MN Resident attending any school. Requires co-

• signer. Please see the MN Office of Higher Education website for more

details on interest and repayments. www.ohe.state.mn.us Alternative Loan – Through a bank or credit union, requires credit check, interest varies. Most will require co-signer. Repayment may be required in school or after.

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Special Circumstance Review or Professional Judgment

Common examples include:

Significant change in income from past tax year based on unemployment, death, divorce, military service or natural disaster Unusually high medical expenses Nursing home expenses Elementary or secondary school tuition paid Significant college costs for a dependent student’s parent attending college Dependency override

Talk to the financial aid administrator at your school to discuss any unusual circumstances

Additional Resources

U.S. Department Of Education www.ed.gov MN Office of Higher Education www.ohe.state.mn.us The CollegeBoard www.collegeboard.org Internet System for Education and Employment Knowledge www.iseek.org

Questions