Financial Aid NightPresented by

Valerie KnoppSt. Cloud State University

Dear Dad…$chool i$ really gr8. I am

making lot$ of friend$ & $tudying very hard.

W/all my $tuff, I $imply can’t think of anything I need, $o if u would like, u can ju$t $end me a card, a$ I would love to hear from u.

<3 ur $on$ent from my iPhone

Dear Son…

I kNOw that astroNOmy, ecoNOmics and oceaNOgraphy are eNOugh to keep even an hoNOr student busy. Do NOt forget that the pursuit of kNOwledge is a NOble task and you can never study eNOugh.

Love,DadSent by e-mail

Myths to Qualify for Financial Aid

We make too much money to qualify We have too many assets to qualify It’s not worth completing the

application (FAFSA)

What we’ll cover…

Application Process Definition of “Need” Aid Types and Sources Need Analysis Formula (optional)

Application Process

Who is eligible? U.S. citizen or permanent residentHigh school graduate/GED holder/Home school

CertificateEligible degree/certificate programValid Social Security numberRegistered with Selective Service (males 18 years old)No conviction for drug offense while receiving

federal aidSatisfactory academic progress

How to ApplyFree Application for Federal Student Aid (FAFSA)

Online at www.fafsa.gov – fastest, most efficient As soon as possible after January 1st – earlier the better Watch out! Only use the “.gov” site – anything else

and you will be charged and your results may be delayed Check the schools’ deadlines

Paper FAFSA Download from www.fafsa.gov - select “FAFSA Filing

Options” Order by phone - 1-800-4-FED-AID

School Form or CSS Profile (if applicable)

Government Philosophy on Financial Aid

Three partners who share responsibility for educational costs: students, parents, and taxpayers (government).

Parent and student responsibility to pay for college expenses to the extent that they are able before federal or state funds are used.

FAFSA – determines an EFC (Expected Family Contribution) to make a consistent evaluation of each family’s financial circumstance.

FAFSA on the Web www.fafsa.gov

Apply/Reapply Apply for PIN Filing Deadlines IRS Data Tool (DRT)

available late February 2013

Find college codes Check status of

FAFSA Make corrections Print SAR FAFSA4caster

Filing DeadlinesSee state “Deadlines” at

www.fafsa.gov

Minnesota State Grant deadline is 30th day of the start of the term

Check with the schools - college deadlines vary and may be early. Check with the individual college

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

Apply for a PIN or have PIN and forgot it? When completing the FAFSA (real time), or at the PIN website

Forgot your PIN? “Request a Duplicate PIN” at PIN websiteStudent and at least one parent need a PINUse your PIN to:

IRS Data Retrieval Tool (DRT) to complete the FAFSA Sign your FAFSA electronically Check the status of your FAFSA or Make corrections to your FAFSA Sign Master Promissory Note (MPN) for federal loans (student and

PLUS) Look up student’s loan and grant history (www.nslds.ed.gov)

FAFSA on the Web www.fafsa.gov

Main page once logged in

Renewal or New FAFSA

Remember to select the correct award year

PIN status

NOTE: After 1/1/13 the two options will be 2012-13

and 2013-14

Step 1: Beginning a FAFSA

Step 2: Filling out the FAFSA

High School (high school grads only)

School Codes (up to 10)

Finding School Codes:• FAFSA on the Web search •“Paying for College” booklet (Minnesota schools only)• School’s website

Dependency Questions

If student answers “NO” to all questions, parent information must be included on the FAFSA.

Special Circumstances (dependent students only)

Who is a “Parent” for the FAFSA?

Biological, adoptive, or step-parent

Grandparent, foster parent, other relative or legal guardian (who are not the parent) are NOT considered parents unless they legally adopted the student.

Entering Parental Data

IRS Data Retrieval Tool (DRT)

22

Who can use it? Dependent and independent students (parents of dependent students) who meet ALL criteria:

Valid SSN Filed a 2012 IRS tax return, AND Unchanged marital status since December 31,

2012.Available approx. late February 2013Displays if student (or parent, for dependents) selects tax filing status of “Already completed”

2011-2012

Application Type

(English)

# of Applicants

Completion Time

(in minutes)

FAFSA 3,455,616 37:04

EZ FAFSA 329,120 32:02

Renewal 4,003,109 27:13

EZ Renewal 394,268 19:52

Application Statistics* Average completion time for NEW FAFSAs filed

January 1, 2012 - September 30, 20122012-2013

Application Type

(English)

# of Applicants

Completion Time

(in minutes)

FAFSA 3,879,269 19:03

EZ FAFSA 594,765 16:31

Renewal 4,894,169 14:36

EZ Renewal 774,079 10:60

*From 2012 Federal Student Aid Conference www.ifap.ed.gov/presentations/attachments/2012FSAConfSession26FAFSAApplicationProcessingUpdate

What if I filed without using IRS DRT?

IRS DRT (cont.) Check tax filing status “Already completed”

If “Married Filing Separately” applicant is ineligible to use IRS DRT

NOTE: If you recently filed taxes, you won’t see IRS DRT. 2-3 weeks after you file electronically, correct the FAFSA, change this to “None of the Above”, and then use IRS DRT

IRS DRT (cont.)IRS Interface

Insert all information exactly as it appears on your federal tax return (e.g. St. for Street or Street for St.)

Transfer IRS data to FAFSA

REMEMBER •Select the box and the “Transfer Now” button.

•Include “earnings from work” on the FAFSA after data transfer

What if I don’t use the IRS DRT?

If you’re selected for verification and did not use the IRS DRT, you must provide a Tax Return Transcript issued by the IRS.

NOTE: A Tax Account Transcript does not provide sufficient information.

FAFSA saved up to 45 days

Entering Income Information (student view – same for parent)

If entering estimated income information, click here. REMEMBER: Update your information once you complete your federal income tax return.

Sign and Submit the FAFSA

Both student and parent must sign.

“Save”: You store the data to retrieve later (up to 45 days).

“Submit”: Your FAFSA will be processed.

Confirmation PageTransfer sameparent info for a (dependent) sibling need? Click the link on the confirmation page to forward parent info from your FAFSA to your sibling’s.

Estimate based on data entered. School will determine eligibility.

NEW for 2013-2014: MN On-Line Student Eligibility Questionnaire

First optional feature only appears for dependent students

Student must click on MN link on Confirmation page to be redirected to OHE on-line questionnaire

Step 3: FAFSA Follow-up

Make Corrections to a Saved FAFSA

Check status of a submitted FAFSA

Print Signature Page (if not signed electronically)

Application Status Check

1. Processed, not submitted2. Processed, missing signatures (rejected to school)

Corrections on the Web REMEMBER: Save your correction(s) before submitting.

Completed FAFSA……now what happens?

Department of Education: your estimated Expected Family Contribution (EFC)

Student: receive your Student Aid Report (SAR) by e-mail or mail

Financial Aid Office: receives electronic copy of your FAFSA results

If selected for verification, the school(s) listed on your FAFSA will contact you

Verification (not an audit)Some applications may be selected for

verification by the Central Processing Service or the schoolSchool will send student/family: Verification

worksheet to complete, sign and returnSchool will request: Federal income tax transcript

(not the return) and W-2 forms for student and parent, if applicable (www.irs.gov for transcript)

If selected for verification, please do not make corrections to your FAFSA unless the school requests it

The Financial Aid Office Determines student’s

eligibility based on FAFSA results (and verification, if required)

Packages and offers financial aid to students based on eligibility in attempt to meet

financial need

Sends an award letter detailing: Cost of attendance Types and amount of

financial aid Conditions of the award Disbursement procedure

NOTE: Students must be admitted to (not enrolled at) the college before they can receive an award letter.

Eligibility for Financial Aid

All students and families are encouraged to complete the FAFSA for need and non-need based aid.

Submit the FAFSA by filing deadline (no later than the 30th day after the start of the term if Minnesota state grant-eligible).

Admitted to the school and enrolled at least half-time (6 credits) to receive most types of aid.

Make satisfactory academic progress (GPA, credits completed v. attempted, maximum time frame) to receive aid.

Review of Application Steps

PIN - student and at least one parent

File federal income tax returns

Complete FAFSA at www.fafsa.gov

Review Student Aid Report (SAR)

Complete verification request from school (if applicable)

Apply for financial aid each

year

Check priority dates and

deadlines

Do not share your federal PIN

Definition of Financial Need

Cost of Attendance (variable)

- Expected Family Contribution (EFC) (constant)Eligibility for need-based aid (variable)

Factors used in determining EFC:• Parent(s) income (taxed & untaxed) and assets• Student income (taxed & untaxed) and assets• Household size• Number in college

Cost of AttendanceEach school’s will vary; all will include:

TUITION/FEES

ROOM/BOARD

BOOKS

PERSONAL

TRAVEL

Need Varies Based on Cost

NOTE: Your Expected Family Contribution (EFC) remains the same.

Estimators

• Minnesota Office of Higher Educationwww.getreadyforcollege.org/Estimator/firstQuestions.cfm

• Fafsa4casterwww.fafsa4caster.ed.gov

• Finaid.orgwww.finaid.org/calculators

Types of Financial Aid

Gift Aid Scholarships Grants

Self Help Employment Loans

Gift Aid: Scholarships

Merit-based aid Local or Private – visit with your

school counselor College/University where you

apply Scholarship search services Watch out for scams

www.ftc.gov/bcp/edu/microsites/scholarship/index.shtml

"The scholarship is guaranteed or your money back.“ "You can't get this information anywhere else.“ "I just need your credit card or bank account number to hold this scholarship.“ "We'll do all the work.“ "The scholarship will cost some money.“ "You've been selected by a 'national foundation' to receive a scholarship." "You're a finalist.“… in a contest you never entered

Scholarship Scam Information: Federal Trade Commission:

www.ftc.gov/scholarshipscams

Beware of Scholarship Scams

Gift Aid: GrantsNeed-based gift aid* Federal Pell Grant Federal Supplemental Education Opportunity Grant

(SEOG) Federal TEACH Grant* (not based on need; agreement to serve

requirement) Minnesota State Grant Other

Self-Help Aid: Employment

Earnings paid as hours are worked

Federal Work-StudyMinnesota Work-StudyCollege Employment

Self-Help Aid: Loans Must be repaid with interest• Need-based (guaranteed student loans)

Federal Perkins Loan Federal Subsidized Stafford Loan

• Not need-based Federal Unsubsidized Stafford Loan (guaranteed student

loan) Federal PLUS Loan (parent loan, credit check required) Private/Alternative Loans (variable rates/terms; credit check)

How to Save $$ While in School Determine needs vs. wants

If you registered for a course, complete it Work part-time (10-15 hours per week) Avoid credit cards and card pushers (using credit and not

paying it off can cost more than it’s worth) Buy used books and clothes Learn to cook Share living expenses with a roommate Use public transportation, a carpool, a bike, or your

feet Stay healthy Buy food & supplies in bulk; buy generic, shop

farmer’s markets Use student discounts Live like a college student so you don’t need to do it

later

Financial Literacy Websites studentloans.gov - Select “Financial

Awareness Counseling” (NOTE: Not the same as entrance loan counseling for new borrowers)

www.igrad.com www.mappingyourfuture.org - Select

“Manage Your Money” www.smartaboutmoney.org

Discuss as a family the costs – how and how much – of financing college.

Discuss as a family available resources to meet these costs.

Carefully evaluate and understand the terms and renewal requirements for aid.

To keep in mind…

5 Questions to Ask the Financial Aid Office

1. What do I need to finalize my award letter?2. What academic requirements are there to

keep my financial aid?3. What are the terms of the loans?4. Where can I find a job (work study or not)?5. How and when will I receive my financial

aid?

Modified from www.ed.gov/blog

Additional Resources

Minnesota College Goal (FAFSA Assistance)minnesotacollegegoal.org/Locations.cfm

MN Office of Higher Education getreadyforcollege.org

FAFSA Helpline 1-800-4-FED-AID U.S. Department of Education

www.ed.gov or http://nces.ed.gov/collegenavigator

General Financial Aid www.studentaid.ed.gov

Questions about this presentation?St. Cloud State University

Financial Aid OfficeAdministrative Services 106720 Fourth Avenue South

St. Cloud, MN 56301www.stcloudstate.edu/financialaid

financialaid@stcloudstate.edu(320) 308-20471-877-654-7278

Calculating the EFC(Expected Family Contribution)

Parent Contribution – Income

Parent Income (AGI + Untaxed

income)- Taxes and FICA- Employment expense allowance- Income protection allowance

(variable)= Available Income

Parent Contribution - Assets Parent Asset Equity- Asset Protection Allowance (variable)= Discretionary Net Worthx 12% (Asset Conversion Rate)= Contribution from Assets

Parent Contribution - Total Available Income+ Contribution from Assets= Adjusted Available Incomex % (variable)= Parent Contribution÷ Number of family members in college*

*do not include parents in college

Student Contribution - Income

Student Income- Taxes (federal, state, FICA)- $6,130 Income Protection Allowance = Available Incomex 50%= Contribution from Income

Student Contribution - Total Contribution from Income+ 20% of asset equity = Total Student Contribution

Expected Family Contribution (EFC)

Parent Contribution + Student Contribution= Total EFC