2020 - 2021 Financial Aid High School Presentation New Jersey - - PowerPoint PPT Presentation

2020 - 2021 Financial Aid High School Presentation

New Jersey Higher Education Student Assistance Authority

Presenter – Aisha Hill

• 1. How Do I Apply?
• 2. How Awards Are Determined?
• 3. What is Financial Aid?
• 4. What Happens Next?

Higher Education Student Assistance Authority

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Topics We Will Discuss

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Higher Education Student Assistance Authority

How Do I Apply?

Higher Education Student Assistance Authority

NJ HESAA

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Higher Education Student Assistance Authority

FAFSA

The Free Application for Federal Student Aid (FAFSA) is used to ensure maximum consideration for Federal, NJ State, and institutional financial aid.

PLEASE NOTE: On September 13, 2015, the U.S. Department of Education announced a change in how & when students complete the FAFSA. Families can begin to complete their FAFSA on October 1st using income from two (base) years prior. The change aligns the financial aid application with the admission’s application.

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Higher Education Student Assistance Authority

✓ 2020-2021 FAFSA is available October 1, 2019 ✓ The application can be completed on the app for iOS & Android ✓ FSA ID will be used for student & parent to sign electronically ✓ FAFSA will use prior prior (base) year (2018) income information ✓ IRS Data Retrieval Tool is a convenient option

✓ Deadline to complete 2020-2021 FAFSA is June 30, 2021

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Higher Education Student Assistance Authority

To Be Eligible, Students Must: 1. Have a Valid Social Security Number 2. Be Enrolled in a Program of Study (Degree, Certificate,

• r other recognized credential)

3. Be a U.S. Citizen or Eligible Noncitizen 4. Be Registered with Selective Service Administration (males between 18-25 years old)

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Higher Education Student Assistance Authority

FAFSA Components:

1. Student Demographics 2. Student Income &/or Assets, if applicable 3. Student Status: Dependent or Independent 4. Parent Demographics, if Dependent 5. Household Size 6. Parent(s) Income &/or Assets, if applicable 7. Federal Benefits, if applicable 8. College Choices (up to 10) Once submitted, the U.S. Department of Education will send students an e- mail summary (within 3 days) in a Student Aid Report (SAR). It includes what they submitted on their FAFSA and an estimate of financial aid eligibility.

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Higher Education Student Assistance Authority

Common FAFSA Mistakes:

✓ Names on Social Security Card ✓ Social Security Number ✓ Date of Birth (Parents) ✓ Parent Section vs. Student Section ✓ Divorced vs. Remarried Households ✓ Parental & Student Assets ✓ Missing Parent Signature, if Dependent ✓ Gender Question

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Higher Education Student Assistance Authority

• 1. Use the link in the FAFSA confirmation for HESAA
• 2. Students can also log onto the NJ Financial Aid Management

System (NJFAMS) www.njfams.hesaa.org

• 3. Complete the ‘Additional Data Elements’ for NJ awards
• 4. HESAA will notify students of their status via e-mail & portal
• 5. Deadline to complete the 2020-2021 FAFSA for NJ is September

15, 2020

NJ HESAA

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Higher Education Student Assistance Authority

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OR

Higher Education Student Assistance Authority

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All students must have a HESAA NJFAMS (Financial Aid Management System) User ID & Password to access:

1.

Their eligibility for NJ Grants & Scholarship programs

2.

Notification about verification requirements Students should visit NJFAMS to:

✓ Learn about New Jersey grants & scholarships ✓ Utilize the NJ TAG Estimator ✓ Upload requested documents

*Students should always check their award status online before calling Customer Care

Higher Education Student Assistance Authority

Under a policy signed into law by Governor Phil Murphy, graduates of New Jersey high schools who do not have documented immigration status may be eligible for financial aid.

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Higher Education Student Assistance Authority

CSS Profile

Nearly 400 Institutions use the College Scholarship Service (CSS) profile to determine how they will award institutional funds. 1. 2020-2021 CSS Profile will be available 10/1/19 2. Collects more comprehensive income, asset & household information than the FAFSA 3. Use of prior prior (base) year income (2018) 4. Payment required *$25 for first profile & $16 for additional profiles 5. Deadline to complete 2020-2021 CSS Profile is February, 15 2020 (12/1/20 for Early Decision I & 1/15/20 for Early Decision II)

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Higher Education Student Assistance Authority

How Awards Are Determined?

Higher Education Student Assistance Authority

Cost of Attendance

• Tuition & Fees
• Room & Board
• Books & Supplies
• Transportation
• Personal Expenses
• Study Abroad Costs
• Dependent Care
• Disability Equipment/Services

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Higher Education Student Assistance Authority

Unexpected Costs

• Remedial Classes
• Change in Major
• Transferring Schools
• Winter & Spring Breaks
• Pledging Costs
• Moving Expenses/Storage
• Supplies (specific laptops, calculators, etc.)

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Expected Family Contribution

✓ Uses a Federal formula that calculates ‘need’ from the information on the FAFSA ✓ Is the guideline used to determine Federal financial aid awards ✓ EFC is not equal to a family’s out-of-pocket costs

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Higher Education Student Assistance Authority

Sample EFC

• Hayes Family lives in New Jersey
• Married Parents
• Household Size = 4 (1 child going to college)
• Parent’s 2018 Income = $140,000
• Parent’s Assets = $20,000
• Student’s 2018 Income = $0
• Student’s Assets = $0

EFC = $20,830

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Higher Education Student Assistance Authority

Financial Need for Hayes Family

College Bergen Community College

(County College)

Rutgers University

(State College)

• St. Peter’s

University

(Private College)

COA

(Annual)

$5,860 $25,561 $45,676 EFC $20,830 $20,830 $20,830 Financial Need $0 $4,731 $24,846

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Higher Education Student Assistance Authority

Sample EFC

• Jones Family lives in New Jersey
• Single Parent
• Household Size = 2 (1 child going to college)
• Parent’s 2018 Income = $32,000
• Parent’s Assets = $0
• Student’s 2018 Income = $2,000
• Student’s Assets = $0

EFC = $0

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Higher Education Student Assistance Authority

Financial Need for Jones Family

College Ocean County College

(County College)

Rowan University

(State College)

Centenary University

(Private College)

COA

(Annual)

$5,860 $25,561 $45,676 EFC $0 $0 $0 Financial Need $5,860 $25,561 $45,676

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Higher Education Student Assistance Authority

What is Financial Aid?

Higher Education Student Assistance Authority

✓ U.S. Department of Education (Federal) ✓ New Jersey (State) ✓ Institutions ✓ Outside Organizations ✓ Grants ✓ Scholarships ✓ Loans ✓ Employment

Types Sources

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Higher Education Student Assistance Authority

U.S. Department of Education

➢ Pell Grant ➢ Supplement Educational Opportunity Grant ➢ TEACH Grant ➢ Work Study ➢ Perkins Loan ➢ Direct Loan

• Subsidized Stafford Loan (no interest accrued)
• Unsubsidized Stafford Loan (interest accrued)

➢ Direct Parent Loan for Undergraduate Students (PLUS)

.

Higher Education Student Assistance Authority

New Jersey

➢ Tuition Aid Grant (TAG) ➢ Educational Opportunity Fund (EOF) ➢ Governor’s Urban Scholarship ➢ Governor’s Industry Vocation Scholarship ➢ Community College Opportunity Grant (C.C.O.G.) ➢ NJ STARS (Community College)

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Higher Education Student Assistance Authority

Scholarships

Awarded annually based upon various criteria, which usually reflect the values and purposes of the donor or founder of the award. They are not required to be paid back. Factors that may influence eligibility:

*Athletic awards offered by NCAA Division I & Division II schools only

✓ Academics ✓ Athletic Ability* ✓ SAT’s ✓ Geographic Diversity ✓ AP Courses ✓ Legacy (child of alumni) ✓ Activities ✓ Talent ✓ Academic Track ✓ Gender/Ethnicity ✓ H.S. Attended ✓ Class Rank

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Higher Education Student Assistance Authority

Alternative Solutions

1. 2020 -2021 – NJ CLASS Loan

• 10 Year Fixed Rate (starting at 3.99% APR with a 3% origination fee)
• 15 Year Fixed Rate (starting at 4.45% APR with a 3% origination fee)
• 20 Year Fixed Rate (starting at 6.50% APR with a 3% origination fee)

*families can make interest only payments while student is in school

• 2. Monthly Payment Plans
• 3. Campus Employment
• 4. Specialized Campus Opportunities
• Resident Advisors
• Student Ambassadors
• Student Tour Guides
• Internships
• CO-OP’S

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Higher Education Student Assistance Authority

College Savings Plan

1. HESAA’s NJ BEST is the only 529 College Savings Plan to award scholarships ranging from $500-$1,500, plans are tax free when used to pay for the qualified education expenses of an NJ BEST beneficiary & there are limits on amount contributed annually 2. Uniform Gifts to Minors (UGMA) Accounts 3. Education Savings Accounts (ESA)

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Higher Education Student Assistance Authority

What Happens Next?

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Financial Aid Cycle

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October - January Complete Admission Applications, FAFSA, & CSS Profile (if applicable) February - May Colleges Send Award Letters June –July Colleges Send Fall Bills

*Remember to also meet all deadlines from Institution, Scholarships, CSS Profile, & NJ State

Higher Education Student Assistance Authority

✓ All institutions are required to have a this posted on their websites ✓ Students can estimate the price of the institutions they’re interested in ✓ Based on full-time enrollment & first year

Net Price Calculator

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Higher Education Student Assistance Authority

Verification

Verification is a process that the U.S. Department of Education and NJ HESAA uses to confirm the information provided on the FAFSA. If your FAFSA is randomly selected, please remember:

✓ Institutions are responsible for verification to determine Federal financial aid eligibility ✓ Institutions send requests for information &/or documentation by mail, e-mail, or portal ✓ NJ HESAA is responsible for verification to determine NJ State financial aid eligibility ✓ Check your NJFAMS account for ‘to-do’ list (this will contain the request for information &/or documentation) ✓ Be sure to meet deadlines

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Higher Education Student Assistance Authority

Award Letter

An official notification that

• utlines financial aid
• awards. It is intended to help

you understand your COA, EFC, and ability to pay. It also defines the financial assistance offered and helps determine if you need additional help to afford the institution.

Higher Education Student Assistance Authority

Contact

U.S. Department of Education www.studentaid.ed.gov

1-800-433-3243

NJ HESAA www.hesaa.org

609-584-4480

CSS Profile www.student.collegeboard.org

305-829-9793

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Thank you for your time.

Higher Education Student Assistance Authority