Financial Aid Overview Presented by: Jennifer Pr Prus usko - - PowerPoint PPT Presentation

Presented by: Jennifer Pr Prus usko Financial Aid Representative Office of Student Financial Assistance College of DuPage

Financial Aid Overview

• Grants
• Loans
• Work Study/Student Employment
• Scholarship

Types of Financial Aid Available

General Eligibility Requirements

 U.S Citizen or eligible non-citizen  Valid Social Security Number  Received a H.S Diploma or GED  Be pursuing an eligible degree and/or certificate program  Registered for Selective Service (males age 18 to 24)

 Maintain Satisfactory Academic Progress!

 Complete 67% of your classes  Maintain a 2.0 GPA  No Attendance = No Financial Aid!

• Free Application for Federal Student Aid

– apply online at www.fafsa.gov

• Collects tax information, asset information,

household size so as to gauge an individual family’s financial need

• Used to determine eligibility for Federal

grants, State grants, Federal loans, Federal work study, and scholarships.

• EVERYTHING STARTS WITH THE FAFSA!!

What is A FAFSA?!

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Expected Family Contribution, EFC

 A calculation of what the family is expected to put forth towards your schooling for the academic school year  The number is used as an INDEX to determine your eligibility for Federal Grants, State Grants, Federal Stafford loans, and Federal work study

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NEW for 2014-2015

Parent* information to be reported on the FAFSA

Legal Parent Marital Status – at time of application Married or remarried 2 parents income reported

(mother &father) (step-mother & father) (father & step-mother)

Divorced/Separated 1 parent income reported Widowed 1 parent income reported Never married 1 parent income reported Unmarried AND both parents live together 2 parents income reported

*The collection of information from both of a dependent student’s parents is statutorily supported in the section of the Higher Education Act (HEA) that provides the information to be used in the calculation of a dependent student’s Expected Family Contribution. HEA section 475 includes the terms “parent” and “parents” and not gender specific terms such as “mother” and “father.”

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What If Parent’s Are Divorced and parents do not live with each other. . . Whose Information is reported on the FAFSA??

• If your parents are divorced or separated (and they live in separate

residences), answer the questions about the parent you lived with more during the past 12 months

• If you did not live with one parent more than the other, give answers

about the parent who provided more financial support during the past 12 months, or during the most recent year that you actually received support from a parent.

• If this parent is remarried as of day you filed the FAFSA, answer the

questions about that parent and your step-parent. General Rule – It’s the parent who is providing more than 50% of the student’s support – not necessarily the one who claims the student on their taxes

IRS Data Retrieval

 Who is eligible?

 Must have a Valid Social Security Number  Must have filed a 2013 Federal Tax Return – depends on filing status  Must have an unchanged marital status since December 31, 2013

 Why you may not be able to use the IRS Data Retrieval?

 Tax Filing status is Married Filling Separately – if marital status is married  Tax Filing Status is Single – if your legal parents live together and not married  Tax Filing status is Head of Household – if marital status is married

 If you are married you cannot file as Head of Household*

 Filed an amended Tax Return  Filed a Puerto Rican or foreign tax return  Recently filed your taxes (within the last 2 weeks)

* May be some exceptions

IRS Data Retrieval

 Why use the IRS Data Retrieval?

 Tax information is transferred directly by the IRS from your Tax Return  Streamlines the Verification process  Less paperwork to submit to the Financial Aid Office  Cuts down on incorrect information

 What if you don’t use the IRS Data Retrieval?

 Create delays in receiving your award letter  If selected for Verification you must contact the IRS and get a Tax Transcript.

**Students and parents are strongly encouraged to use the IRS Data Retrieval for 2014-2015 **

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VERIFICATION . . .

The process whereby certain information provided on the FAFSA is reviewed for accuracy and completeness:

◊ HOUSEHOLD SIZE ◊ Number of household members enrolled in college at least ½ time (excluding parents, if dependent) ◊ Tax & Income Information ◊ Income –

◊ Includes cash jobs regardless of W2 Form received (babysitting, cutting grass, etc)

◊ Adjusted Gross Income ◊ Tax Paid ◊ Untaxed income – i.e. untaxed IRA/pension distributions; education credits; IRA deductions; tax exempt interest; housing allowances, , veterans non-education benefits, money paid and/or received on the student’s behalf ◊ FAFSA questions 45 & 94 ◊ SNAP (Food Stamps) ◊ Child Support paid & received ◊ High School Diploma or GED ◊ Identity

VERIFICATION . . .

◊ Marital Status – at time of application ◊ Filing Status ◊ Single ◊ Head of Household ◊ Married Filing Separately ◊ Married Filing Jointly ◊ Exemptions ◊ Student can only be claimed on one tax return ◊ Assets/Investments

STOP: All conflicting information must be resolved before financial aid can be awarded.

Investments

• Include:

Real estate, trust funds, money market funds, mutual funds, CDs, stocks, bonds, other securities, Coverdell savings, 529 college savings plan, refund value of 529 pre-paid tuition plans, commodities, etc.

• Don’t include:

Home you live in, life insurance, retirement plans (pension funds, annuities, non- education IRAs, Keogh Plans), UGMA and UTMA accounts for which you are the custodian, but not the owner Net Worth: Current value minus debt.

Special Circumstances 2014-2015 School year

• Dislocated Worker question?
• Change in Income

» Income reported in 2013 is different than income in in

2014

» Fired, laid off, downsizing, etc. » Must be able to document extenuating circumstances » Just because you quit your job is not sufficient enough to

qualify for a special circumstance

• Decrease or loss of benefits

» Decrease or loss of benefits » i.e. Child support, Unemployment, etc.

Types of Aid

• 2013 – 2014 academic school year

– Maximum yearly award is $5,645 based on full time enrollment – Minimum yearly amount is $706 based on full time enrollment – Covers tuition, fees, and books – Must be registered for at least three hours in an eligible academic program – Amount is dependent upon EFC – Not all students will qualify for the Pell Grant

Federal Pell Grant

Since the maximum amount of Pell Grant funding a student can receive each year is equal to 100%, the six-year equivalent is 600%. Example: Year 1 - 2014-2015 – Student uses 100% of their award Year 2 - 2015-2016 – Student uses 100% of their award Year 3 - 2016-2017 - Student uses 100% of their award Year 4 - 2017-2018 - Student uses 100% of their award Year 5 - 2018-2019 - Student uses 100% of their award Year 6 - 2019-2020 - Student uses 100% of their award

Year 7 – No Pell Grant eligibility

Pell Grant Lifetime Eligibility

• Need-based
• Undergraduate student
• Must be an Illinois Resident for ONE year prior to

the start of the academic school year

• Covers a prorated amount of the cost of tuition
• Amount is dependent upon EFC and college you

are attending

• Not all students will qualify for the MAPGrant

2013-2014 Deadline was March 1, 2013!!!

Illinois MAP Grant

Federal Stafford Direct Loan Program

Subsidized Loan – Packaged first when possible

 Need based  No credit check  Government pays the interest – Variable interest of 3.86%  Repayment begins 6 months after graduation or you

drop below half time

 Freshman . . . . . .$3,500/academic school year  Sophomore . . . . .$4,500/academic school year  Junior/Senior . . . .$5,500/academic school year

** You can borrow no more than $23,000 TOTAL in Subsidized Loans as an Undergraduate student **

Federal Stafford Direct Loan Program

Unsubsidized Loan

 Non - Need based  No credit check  You are responsible for the interest – Variable Interest of 3.86%  Repayment begins 6 months after graduation or you drop

below half time

 Freshman - $5,500 ( $3,500 sub) / school year  Sophomore - $6,500 ($4,500 sub) / school year  Junior - $7,500 ($5,500 sub) / school year ** You can borrow no more than $31,000 TOTAL in Stafford Loans as an Undergraduate student (no more than $23,000 can be Subsidized Loans) **

Federal Stafford Direct Loan Program

Students will also need to:

 Accept or reject their award

 You are not required to accept the full loan award

 Complete Entrance Loan Counseling

 Can be completed online at www.studentloans.gov

 Complete a Master Promissory Note

 Can be completed online at www.studentloans.gov

***Loans must be paid back! They cannot be discharged, not even through

• bankruptcy. Borrow wisely and just what you need ***

Parent PLUS Loan

 Available to parents of dependent, undergraduate

students

 Based on parent’s credit  Parents may borrow up to the Cost of Attendance minus

financial aid

 Repayment begins 60 days after loan is fully disbursed –

no grace period

 Fixed interest rate of 6.41%

Federal Work Study

Earn up to $5,000 per academic year** Student aide Work up to 20 hours per week Convenient Earn at least the current federal minimum wage Undergraduates and Graduates

**at the College of DuPage

• Need based
• Merit Based
• Population Specific – freshman, single parents,

ethnicity

• Field of Study
• Beware Scholarship Scams!!!!

Scholarships

Golden Rule: If you have to pay it’s usually not legit!

Best Sources

 The best place to search for scholarships is on the website of your prospective college.  Some are under Financial Aid. Some can be found under their Foundation, the fundraising arm of universities  Illinois Student Assistance Commission – www.collegeillinois.org  U.S. Department of Education - www.ed.gov

Determining Your Financial Aid Award

Cost of Attendance Minus Expected Family Contribution Unmet Need Minus Grants Scholarships Federal Work Study Remaining Unmet Need Loans

Cost of Attendance

♦ Tuition/Fees ♦ Books and supplies ♦ Room and Board ♦ Transportation ♦ Personal Expenses

Please Note: This is a very generic number applied to all students

Determining Your Financial Aid Award

$11,717 Minus 1,000 (EFC) $10,717 – remaining unmet need Minus $4,695- Pell $2,208 - MAP $3,909 - FWS $0 – remaining unmet need $28,204 Minus 1,000 (EFC)

$27,204 – remaining unmet need

Minus $4,695 - Pell $4,000 - MAP $5,000 - FWS $13,509 – remaining unmet need $5,500 – Loans $8,009 still remaining

College A College B

Determining Your Financial Aid Award

$11,717 Minus 1,000 (EFC) $10,717 – remaining unmet need Minus $4,695- Pell $5,500 - Loans $522– remaining unmet need $28,204 Minus 1,000 (EFC)

$27,204 – remaining unmet need

Minus $4,695 – Pell $5,500 - Loans $17,009 – remaining unmet need

College A College B

Determining Your Financial Aid Award

$11,717

minus 15,000 (EFC) 0 – remaining unmet need $5,500 Unsubsidized Loan $7,600 still remaining $49,050 Minus 15,000 (EFC) $34,050 – remaining unmet need $3,500 Subsidized Loan $2,000 Unsubsidized Loan $28,550 still remaining

College A College B

Financial Aid Process

1. Complete the Free Application for Federal Student Aid (FAFSA) 2. College will contact the student to request additional information, as needed – usually via e-mail or student portal

• Federal Tax Transcripts and W2 Forms
• Verification of Citizenship; Selective Service
• Verification of untaxed income
• Verification of assets/investments
• Promissory Note
• CSSF Profile Form – based on college/university

3. Award Letters

FAFSA4caster

 Provide general information about federal student aid  Foster early awareness and create familiarity with the financial aid application process and form  Serve as an early analysis tool informing college affordability  Provide you with an estimate of your financial need  Use FAFSA4caster anytime prior to January of your senior year in High School  www.fafsa4caster.ed.gov

How to make the FAFSA process easier?? (Yes, it is possible)

 Apply Early! Apply Early!! Apply Early!!!

 2014-2015 FAFSA is available January 1, 2014.  Do not wait until June or July to file your FAFSA

 Apply for a PIN before filing your FAFSA

 Student and one parent must apply for a PIN at www.pin.ed.gov

 Do not leave questions blank

 Take your time in completing the FAFSA  Cause delays in processing  Cause inaccurate results

 Submit requested paperwork in a timely manner AND all at once

 Submitting paperwork one document at a time delays the processing

Use the IRS Data Retrieval!

Final Tho houghts . s . . .

1. Apply Early! Apply Early!! Apply Early!!! 2. Be sure to check your school e-mail address. 3. You are applying for student financial aid – No Attendance means No Financial Aid 4. You cannot rely on financial aid to cover all of your expenses – tuition and books are first consideration. 5. Do not spend the money until you have received

• it. Have a Plan B . . and C.

6. Keep copies of everything – W2 Forms, 1099 Forms

Websites

Department of Education

www.ed.gov www.studentaid.ed.gov www.studentloans.gov

Illinois Student Assistance Commission

www.collegeillinois.org

Free Application for Federal Student Aid

www.fafsa.gov www.fafsa4caster.ed.gov www.pin.ed.gov

Internal Revenue Service

www.irs.gov

College of DuPage

www.cod.edu