[PPT] - 2017-18 Financial Aid High School Presentation Presented by: Jim PowerPoint Presentation

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2017-18 Financial Aid High School Presentation

Presented by: Jim Anderson Director of Financial Aid Montclair State University

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What is financial aid?
How do you apply? Forms? Deadlines?
How is eligibility determined?
What is the Expected Family Contribution?
Types and sources of financial aid
Financial aid packaging; comparing offers
Special circumstances
Consumer Issues
Review of the FAFSA

WHAT WE WILL DISCUSS TONIGHT

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Generally speaking, financial aid includes all funds made

available to students that do not come from their family.

Sources are the federal and state governments, the

colleges themselves and private sources

It comes in the form of grants, scholarships, loans and

student employment

What is Financial Aid?

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Free Application for Federal Student Aid (FAFSA)
College Board Profile Form
Institutional Forms
Verification
Tax documentation
Business Supplement
Non-custodial parent information
Know your schools requirements and deadlines

What Forms are Required and When?

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The amount that a family can reasonably be expected to

contribute

Derived from contributions from the parents and the student
Federal EFC
Institutional EFC
EFC Calculator: Available on the College Board Web Site:

https://bigfuture.collegeboard.org/pay-for-college/paying-your-sh are/expected-family-contribution-calculator

Expected Family Contribution

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Cost of Attendance (COA) - direct and indirect costs
Expected Family Contribution (EFC)
Federal vs. Institutional EFC; differences in assessment
Special circumstances

How is Eligibility Determined

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Cost of Attendance Less Expected Family Contribution Equals Need

Need

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Sources of Aid

Federal
State of New Jersey
Institutional
Outside Organizations

– Civic organizations (ex.-local Rotary Club), parent’s employer, high school awards

Scholarships
Grants
Loans
Student Employment

Types of Financial Aid

Sources - Types of Aid

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A form of “gift aid,” does not have to be paid back
Awarded on the basis of academic, artistic, athletics or
ther merit attribute

Scholarships

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Gift aid; does not have to be repaid
Most often awarded on the basis of need

Grants

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Must be repaid
Federal loans
Privately financed loans
Terms vary significantly by program
Borrow wisely
Is it a good investment?

Loans

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Offered by colleges using federal or institutional funds
Part time
Paid via a paycheck
Not generally applied to the college bill

Student Employment

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Federal Aid Programs 2017-2018

Federal programs provide by a wide

margin the largest portion of assistance

Awarded primarily on the basis of need
Students must apply each year
Federal Pell Grant up to $5,920
Federal Stafford Loan
Federal PLUS Loan
Campus-Based Programs: SEOG and

Federal Work-Study

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Federal Stafford Loans

Interest rate for Federal Stafford Loans for the 2017-2018 academic year is 4.45% fixed plus a 1.069% origination fee

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New Jersey State Programs Administered by the New Jersey Higher Education Student Assistance Authority (HESAA)

Award Type Award Amounts

Tuition Aid Grant (TAG) full-time $528 - $12,686 Tuition Aid Grant (TAG) part-time $576 -$1970 Equal Opportunity Fund (EOF) Up to $2,500 NJ STARS Tuition Only NJ STARS II Up to $2,500 Governor’s Urban Scholarship Up to $1,000 NJ-GIVS Up to $2,000

The amounts listed above are yearly amounts.

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State of New Jersey Programs

– TAG (Tuition Aid Grant) 2017 - 2018

Demonstrate Financial Need
Be a U.S. citizen or eligible non-citizen
Must be New Jersey Resident & attend a New Jersey

Institution

Must be full time at an approved degree program
Meet all state deadlines

– Part-Time TAG for County Colleges 2017 -2018

Meet all TAG requirements
With the exception of being enrolled for 6-11 credits

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State of New Jersey Programs - (cont.)

– EOF (Educational Opportunity Fund)

Award ranges from $200 - $2,500 annually depending on type of institution
Must demonstrate educational and economically disadvantaged background
File FAFSA

– Governor’s Urban Scholarship

Rank within the top 5% of their class at the end of junior year
Attain a 3.0 GPA at the end of the junior year
Attend an approved New Jersey college or University and reside in a designated

community

Have a New Jersey Eligibility Index below 10,500

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State Scholarships

– NJ STARS

NJ residents who rank in the top 15% of their class at either the end of junior or senior year
Achieve the required score on a college placement test to determine college readiness
Students must take at least 12 college credits
Students must attain a cumulative GPA of 3.0 or higher at the start of the third semester at

the county college to remain an NJ STAR

Must file a Free Application for Federal Student Aid (FAFSA)

– NJ STARS II

Received NJSTARS funding and have a family taxable income of less than $250,000
Must earn an associates degree and graduate with a 3.25 GPA or higher
May receive up to $2,500 annually for a public or private 4-year NJ college or university
Must enroll full time (12 credit hours)
Must file a Free Application for Federal Student Aid (FAFSA)

State of New Jersey Programs - (cont.)

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State Scholarships

– Governor’s Industry Vocation Scholarship for Women & Minorities (NJ - GIVS)

Up to $2,000 per year for the cost of enrollment at one of New

Jersey’s 19 County Colleges, Technical / Vocational Schools, some Proprietary Schools

Benefits women and minorities pursuing certificate or degree

programs in construction – related fields

Must be NJ resident
Must file a FAFSA & complete separate application online at

www.njgrants.org

Some of the programs eligible for the scholarship include
Construction Supervision
Solar Energy Technology
Architectural Engineering Technology

State of New Jersey Programs - (cont.)

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Loans/Other Resources for Students/Parents

State NJCLASS LOAN, fixed and variable repayment options

Interest rates range from 4.48% to 8.36% for the 2017-2018 award

year. Students can borrow up to the cost of attendance and must be

the borrower (along with a co-borrower). All fixed rate NJCLASS loans have a 3% origination fee.

Federal PLUS Program (7.0% & 4.264% Origination fee) Parent is the

borrower.

Private Educational Loans – Sallie Mae, Wells Fargo, PNC, Etc.

Interest rates vary based on credit score.

Payment Plans

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Foundations, businesses, charitable organizations, employers
Start research early.

Resources:

www.hesaa.org
www.collegeboard.org
www.mappingyourfuture.org
High school guidance office

Free internet search engine:

www.fastweb.com
https://bigfuture.collegeboard.org/scholarship-search
https://www.scholarships.com/

Other Resources

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Other Resources

http://www.hesaa.org/Pages/PlanforCollege.aspx

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Entitlement/formula driven awards

– Pell Grants – Tuition Aid Grants (TAG)

Federal Stafford Loan
Other Federal aid: SEOG and Federal Work-Study
Institutional aid

Financial Aid Packaging

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Institutionally funded grants and scholarships
Need-based or merit-based?
Schools meeting full need – far and few between
Differential or preferential aid packaging
Need gaps
What is your bottom line?
Difficult decisions

Financial Aid Packaging

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If it is need-based be prepared to make your case
If it is merit-based, be sure you have a case to make
Set the right tone; do not try to “negotiate”
Disclosing offers from other schools; is it a good idea?

Appeals

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Renewability of awarded aid; minimum GPA?
Need-based aid? Changes in need from year to year;

will there be an adjustment?

Treatment of outside scholarships
Scholarship scams
Consultants: good or bad idea?
Award letters; review them carefully

Consumer Issues

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Sample Award Letter

Award letter format may

vary by institution

Available in hard copy
r on-line
Available after FAFSA

filed and student is accepted

Used to compare aid

packages

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Net Price Calculator

All institutions must

have a net price calculator posted on their websites.

Students will be able to

estimate the individual net price per institution.

Based on full-time, first

degree/certificate-seeki ng undergraduate students.

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The Shopping Sheet standardizes award letters, making it easier to comparison shop and provide students with key information including:

How much one year of school will

cost.

Financial aid options to pay this

cost, with a clear differentiation between grants and scholarships, which do not have to be repaid, and loans, which do.

The net costs after grants and

scholarships are taken into account.

Information comparing default

rates, graduation rates, and median debt levels for the school.

Potential monthly payments for the

federal student loans the typical student would owe after graduation.

Shopping Sheet

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Shopping Sheet Breakdown

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Applications

f a f s a . e d . g

v

student.collegeboard.org/profile

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Submit the Free Application for Federal Student Aid

(FAFSA) prior to the earliest school’s deadline & complete the NJ State Specific Questions.

Available October 1st
To ensure maximum consideration for federal, state,

and institutional aid, check information from each school to determine:

– Required application materials – Application deadlines

Be sure to answer all optional questions on the FAFSA

like “Gender” & “Driver License” to speed up processing.

Application: FAFSA

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Application: FAFSA

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Collects family’s personal and financial information used to

calculate the student’s Expected Family Contribution.

File the FAFSA electronically

– FAFSA on the Web at www.fafsa.ed.gov – Student & Parent must create a Federal Student Aid ID

(FSA ID) at fsaid.ed.gov

Use the IRS Data Retrieval Tool to populate

income & tax information.

Free Application for Federal Student Aid (FAFSA)

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What is a Federal Student Aid (FSA) ID?

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The FSA ID is a username and password

that gives you the unique benefit of logging into your accounts — while removing all personally identifiable information. The FSA ID is your official Federal Student Aid ID, which you will use to log in to use FSA websites like FAFSA, StudentLoans.gov, and more.

The parent AND student will need their
wn FSA ID

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How to Create An FSA ID

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Must have a valid Social Security Number
Must be enrolled or accepted for enrollment in

an eligible program of study AND pursuing a degree, certificate, or other recognized credential

Must be a U.S. citizen or eligible noncitizen
Must be registered with Selective Service

(males are required)

General Eligibility Requirements

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Key Components of the FAFSA

Student Demographics

– Last Name – Social Security Number – Date of Birth – NJ applicants must provide an answer to the driver’s license questions. – ALL applicants must indicate their gender.

Student Income and Assets

– IRS Data Retrieval – Income earned from work

Student Status: Dependent/Independent
Parent Demographics-Who is a Parent?

– Social Security Number – Last Name – Date of Birth

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Household Size

– Number in college

Parent(s) Income and Assets

– IRS Data Retrieval - Tax filers who file Married filing separately, amended tax returns, and foreign tax returns cannot use DRT – Income earned from work – Dislocated Worker

Federal Means Tested Benefits

– SSI, SNAP, Free or Reduced Price Lunch, TANF, WIC

College Choice

– List all colleges of interest (up to 10 on first submission)

Once submitted, use the link from the FAFSA confirmation page to HESAA’s webpage to

complete the additional data elements for Tuition Aid Grant (TAG) and NJ STARS (II) eligibility.

– May also come to HESAA website to complete additional data elements if a student forgets to go there from the FAFSA confirmation page.

Key Components of the FAFSA (cont.)

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Common Mistakes Made

n the FAFSA
Student’s name as it appears on the social

security card, social security number, and date of birth.

Parent section vs. Student section
Number of people in the household
Divorced/remarried households
Taxes paid vs. taxes withheld
Parental and student assets

– “Zero” is a number

College grade level
Skipping the gender question

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How To Be Considered for State Aid

Complete the FAFSA by established State deadlines
Once you submit the FAFSA, NJ residents will be given the option to

link to the Higher Education Student Assistance Authority’s NJFAMS portal to respond to additional questions to be considered for TAG, NJ STARS, NJ STARS II and other state programs.

Click the link and complete the additional New Jersey State questions. If

questions not answered, student may log into “https://njfams.hesaa.org” to complete the additional questions for state aid

Students MUST log in to NJFAMS to check the status of their NJ State

Grant

‒ It is highly recommended to use a personal email address: all correspondence will go to the email address listed on the FAFSA

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Click to Apply for State Aid

2016-2017

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NJFAMS

All students must have a HESAA NJFAMS userid and password

to access the portal on “https://njfams.hesaa.org” to:

View their eligibility for state grants and scholarship programs
Receive notification about possible State verification requirements
Students should visit njgrants.org to:
Learn about New Jersey grants and scholarships
Utilize the NJ TAG Estimator
Upload requested documentation through our electronic document collection

portal

Students should always check their award status online before

calling HESAA’s customer care line.

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Nearly 400 Colleges and Organizations use the CSS

profile to determine how they will award institutional funds

Available 10/1 each year and collects more

comprehensive income, asset and household information than the FAFSA (i.e. assets for business owners regardless of number of employees Register - Complete Application – Make payment - Submit

Application: CSS Profile

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CSS Profile

Website to apply for profile

www.student.collegeboard.org/profile

Website to apply for Noncustodial Profile:

www.ncprofile.collegeboard.org

Customer Service 305-829-9793 help@cssprofile.org

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Other Information

Financial Aid Timeline: October – March:

Complete college search
Apply for Admissions
Complete the FAFSA
Complete the CSS Profile – if applicable

December – April:

Acceptance notices sent
Award letters sent

June-July:

Fall semester term bills sent

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CAUTION!

Please, avoid being charged a fee to

file the FAFSA

– Completing and processing the FAFSA is FREE – If filing FAFSA on the Web, make sure you go directly to: www.fafsa.gov – Contact the financial aid office or HESAA at 609-584-4480 if you need help in completing the FAFSA

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Thank you

Higher Education Student Assistance Authority

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Questions?

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