Understanding Financial Aid Presented by Deniesha Newby Assistant - - PowerPoint PPT Presentation

Understanding Financial Aid

Presented by Deniesha Newby Assistant Director of Student Financial Aid The University of Akron

Federal Educational Rights & Privacy Act (FERPA)

S t u d e n t s m u s t c o n t a c t p r o s p e c t i v e s c h o o l s t o e n s u r e t h e y k n o w h o w t o a d d a p a r e n t a n d / o r a d v o c a t e !

The Basic Process . . .

Student applies for admission to preferred schools Student files FAFSA on Oct. 1 Student is accepted for admission School requests additional documents Student completes/submits documents Student receives financial aid award offers Student decides which school to attend, notifies school, declines

• ffers from other

schools and finalizes financial aid with chosen school!

How Do I Apply?

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www.fafsa.gov

How Do I Apply?

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• Obtain an FSA ID (federal student aid ID) for

student and parent which will serve as your legal signature on federal financial aid documents. www.studentaid.gov/fsaid

• Create a password for student and parent
• Complete the Free Application for Federal

Student Aid (FAFSA) at www.fafsa.gov

2020-2021 FAFSA

Prior-Prior Year (2018)

STUDENT WILL NEED

• Student’s 2018 federal tax info

– If not applicable, indicate as such on FAFSA OR USE THE DATA RETRIEVAL TOOL

• Student’s income information

– Use W2s, 1099s, or other docs if your student had income but was not required to file 2018 taxes

• Student’s asset information

– Including, but not limited to: cash on hand, balances in checking/savings accounts, college savings plans in the student’s name, etc.

PARENT WILL NEED

• Parent’s 2018 federal tax

info

– USE THE DATA RETRIEVAL TOOL

• Parent’s income information
• Parent’s asset information

– Including, but not limited to: cash on hand, balances in checking/savings accounts, college savings plans in the parent’s name, etc.

The IRS Data Retrieval Tool (DRT)

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Avoid Common Errors

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• Using the incorrect social security number
• Failing to list your full legal name
• Incorrect amount of federal taxes paid
• Incorrect adjusted gross income
• Failure to electronically sign application

Who Is My Parent?

• Dependent students’ FAFSAs must include income and other

information about both of the students’ legal parents (biological or adoptive) if the parents are living together, regardless of the parents’ marital status or gender.

• Students raised by grandparents (whether or not they are

legal guardians) should never list a grandparent as a

• parent. Contact the college or university for information

about a dependency status appeal.

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Selective Service Requirement

• To be eligible for federal student aid, male citizens and male

immigrants residing in the U.S. aged 18 – 25 are required to register with the Selective Service System.

• This requirement is applied to any person assigned the sex
• f male at birth.
• The Selective Service System and the registration

requirement for males preserve America’s ability to provide resources in an emergency to the United States Armed Forces.

www.sss.gov

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When Do I Apply?

The 2020-21 FAFSA will be available on October 1. Check your college or university’s priority deadline on their website Need Help: FAFSAHelpOH.org

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Event is Free and Open to the public, but registration is required

What if I have experienced a change in income since 2018?

Families who have experienced a loss of income or special circumstance that has impacted their household should contact the college or university for assistance. Special circumstances cannot be reported on the FAFSA, but should be considered when financial aid eligibility is determined.

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COST OF ATTENDANCE

Tuition & Fees Room & Board Books & Supplies Personal Expenses Transportation

BILLED BY THE COLLEGE/UNIVERSITY ESTIMATED PERSONAL EXPENSES

What is Financial Aid?

Financial aid is a broad group of funding sources that assists students in meeting their cost of attendance and includes grants, scholarships, work-study programs, and student loans.

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Federal Aid

• Grants

➢ Federal Pell Grant

➢ Supplemental Educational Opportunity Grant (SEOG) ➢ TEACH Grant

• Federal Work-Study

➢ Part-time employment opportunities for students with financial need. Funds earned are paid directly to the student for educational expenses.

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State Aid

The Ohio Department of Higher Education

(formerly known as the Ohio Board of Regents) ➢Ohio War Orphans Scholarship ➢Ohio Safety Officers College Memorial Fund ➢Ohio College Opportunity Grant

www.ohiohighered.org

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Scholarships

• Universities and colleges
• Private foundations, businesses, charitable
• rganizations
• Civic organizations, employers, credit unions
• High schools counselors
• Scholarship sites
• www.fastweb.com
• www.scholarships.com
• www.collegenowgc.org

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Student Loans

• Federal Direct Loans

➢ Subsidized or unsubsidized ➢ 6-month grace period ➢ Repay to the U.S. Department of Education’s Loan Servicing Company ➢ Interest rate is 4.53% (changes July 1 of each year)

• Private (Alternative) Student Loans

➢ Interest rates vary by lender and loan terms ➢ Credit-based (may require a cosigner) ➢ Repay to lender

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Parent Loans

• Parent Loan for Undergraduate Students (PLUS)

➢ Parent is the borrower—not the student ➢ Interest rate is 7.08% ➢ Interest begins accruing as funds are disbursed ➢ May choose to defer payments while student is in school ➢ May have remaining funds (after school charges are paid) sent to the student for other educational expenses (books, supplies, transportation, etc.) ➢ Credit-based, may use an endorser if initially denied ➢ If parent is ineligible, student will have additional eligibility from the Unsubsidized Direct Loan

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Financial Aid Offer Letters

• Schools will begin sending financial aid award

letters in December-January timeframe.

• Will arrive either by U.S. Mail to the student’s

home or email to the student’s college or university assigned email address.

• Award notifications are sent to students, not

parents.

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What’s in a Financial Aid Offer letter?

• Summary of charges

– Cost of Attendance (COA) – tuition, room, board (meal plan). Some schools have board plans that include a book

• allowance. Each school has a different COA!

– Cost of Education (COE) – tuition, room, board (meal plan), books, health insurance, personal expenses, etc. Each school has a different COE!

• Summary of Gift Aid – “free money”

– Merit/talent scholarships (different for each school) – Need-based - need to complete a FAFSA

• State (Ohio College Opportunity Grant)
• Federal (Pell Grant, Supplemental Opportunity Education

Grant)

• Institutional

What’s in a Financial Aid Offer letter? (cont’d.)

• Summary of Self-Help Aid – need(s) to be repaid or

earned – Federal Direct Subsidized/Unsubsidized Loan(s) – Work-study – Parent loans (PLUS) – Private Loans

• The next steps you should take

– How to accept the award – How to accept loans + additional requirements to receive loans (Entrance Interviews, Master Promissory Notes, etc.) – Other helpful information

Sample Costs

Private Four-Year University Tuition and Fees $32,586 Room and Board $11,282 Total $43,868 Public Four-Year University Tuition and Fees $10,756 Room and Board $11,362 Total $22,118 Community College Tuition and Fees $4,322

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What About Books and Supplies?

Books and supplies are usually not included with the cost of tuition and fees billed by the school. Students should be prepared to purchase books and supplies prior to the beginning of the semester. Many schools disburse remaining financial aid to students before the semester begins so that they can use these funds for books and supplies.

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We’ve received several award

• letters. How do we compare?
• Start by determining the COA (actual charges).
• Deduct gift aid.
• If you know your student will need to borrow loans, deduct the student

loans included in award (Federal Direct Subsidized/Unsubsidized). If your student does not need to borrow loans, perhaps you don’t want to deduct

• them. NOTE: I said need loans, not want loans. No student wants loans,

but he may need to borrow to be able to afford an education.

• What is left is your out-of-pocket contribution towards your student’s

charges.

Determine the bottom line (“out-of-pocket” contribution) for each school.

Out-of-Pocket Examples

School A Tuition $13,000 Room $3,500 Board $3,600 COA $20,100 Less gift aid -$9,400 $10,700 Less loans -$5,500 Out-of-pocket $5,200 School B Tuition $22,000 Room $3,700 Board $3,800 COA $29,500 Less gift aid -$17,500 $14,000 Less loans -$5,500 Out-of-pocket $6,500

• There are several resources available to

students and families to help cover the out-of- pocket contribution.

– Work-study – Payment Plans – PLUS Loans (Parent Loans for Undergraduate Students) – Private Education Loans – Outside scholarships (schools, community

• rganizations, www.fastweb.com, etc.)

Financing Out-of-Pocket

Helpful Tips

• Stay organized!

– Keep separate folders for each school your student has applied for admission. – To help you complete the financial aid application, locate the Federal School Code (6 digits) of each

• school. Write this number on the school folder.
• Prepare!

– Print a copy of the FAFSA on the Web Worksheet, available online: www.studentaid.ed.gov

Remember:

• Don’t pay for the FAFSA or scholarship info.
• Read everything sent to you by the FAO.
• Turn in requested documentation in a timely

manner.

• Call or email if you have questions.
• Finalize everything in June/early July.
• Involve your student!!

We’ve Made a Decision. Now What?

• (Student) Handle the FERPA release!
• (Student/Parent/Advocate) Talk to the

Financial Aid Office

• (Student) Accept the award offer at the

chosen school; decline all others – NOTE: you do not need to accept all the loans offered to you; only borrow what you need

• (Student) Complete remaining

requirements such as Master Promissory Note (MPN) and Entrance Loan Counseling at studentloans.gov

• (Student/Parent/Advocate) Watch the

mail and/or student’s e-mail for the bill from the Bursar’s Office (Billing, Cashier’s, Student Accounts, etc.)

QUESTIONS

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