Financial resources intended to help pay for college expenses.
Scholarships/Grants = Free Money Work Study = Must work to earn
funds Loans = Must pay back What is financial aid? Grants Work
Study Loans Scholarships
Slide 3
Who is eligible to receive financial aid? Must be enrolled in
(or accepted for enrollment in) an approved program of study Must
be pursuing a degree or certificate Must be a U.S. citizen or
eligible non-citizen Must have a valid Social Security number Must
be registered with Selective Service (if male and required) Must be
making Satisfactory Academic Progress (as defined by the
school)
Slide 4
1. File the Free Application for Federal Student Aid (FAFSA).
www.fafsa.gov 2. If required, file the CSS/PROFILE.
www.collegeboard.org 3. If required, file an Institutional
Financial Aid Application. 4. If required, submit tax documents and
other forms requested by the school. Every school is different.
Check the schools website to confirm requirements! FAFSA: Free
Application for Federal Student Aid How do students apply for
financial aid?
Slide 5
Slide 6
Schools use the expected family contribution (EFC) to determine
eligibility for need-based financial aid and to prepare an award
package. Cost of Attendance (minus) EFC (equals) Financial Need
DETERMINING FINANCIAL NEED
Slide 7
Cost of Attendance Direct + Indirect Costs = Cost of Attendance
Direct Costs Tuition and Fees Room and Board Indirect Costs Books
and Supplies Transportation Costs Personal Expenses Loan Fees
Computer Expense
Slide 8
Financial Aid Packages Because Cost of Attendance varies by
institution, so does financial need. Financial aid offices attempt
to meet a students financial need with various types of financial
aid available to them.
Slide 9
Sample Financial Aid Package Cost of Attendance $26,000 EFC
$3,200 Financial Need$22,800 Federal Pell Grant $2,495 Perkins Loan
$3,000 University Grant $11,805 Federal Subsidized Loan$3,500
Federal Work Study$2,000 TOTAL AID PACKAGE $22,800
Slide 10
Sample Financial Aid Package Financial Aid Award Letter Federal
Pell Grant $2,495 Perkins Loan $3,000 University Grant $11,805
Federal Subsidized Loan$3,500 Federal Work Study$2,000 TOTAL AID
PACKAGE $22,800 *Note: This students school has met all of his
demonstrated financial need. All schools are different in this
way.
Slide 11
LETS TRY ONE! Luke is applying to a school where the COA is
$28,405. He completes his FAFSA and all other application
requirements, and his EFC is determined to be $8,100. What is Lukes
demonstrated financial need?
Slide 12
LETS TRY ONE! Lukes need is the COA minus the EFC: Luke has
$20,305 in demonstrated financial need. $28,405 - $8,100
$20,305
Slide 13
Slide 14
Need Based Aid given to a student based on the amount of
demonstrated need, as determined by information within the
application. Examples include the Pell Grant, Subsidized Loans and
Federal Work Study. Non-need Based Aid given to a student not based
on need. Examples include credit-based loans or regional
scholarships. Merit Based Aid given to a student based on
scholastic or talent achievement. Examples include awards based on
GPA, extracurricular activities, unique talents, and/or leadership
potential. Types of Financial Aid
Slide 15
Federal Grants (need-based) Pell Grant SEOG (Supplemental
Educational Opportunity Grant) Federal Work Study (need-based)
Part-time jobs for students through eligible employers, such as
their school, or even federal, state or local public agencies Even
though this is a federal program, schools set eligibility criteria
Federal Direct Loans Subsidized Loans are need-based Unsubsidized
Loans are non-need-based Federal Financial Aid
Slide 16
Subsidized Loans Available to undergraduate students with
financial need Loan is in the students name, guaranteed by the
Federal government through the Department of Education The
government pays the interest while the student is in school Fixed
interest rate for 2013-2014 is 6.8% Unsubsidized Loans Non-need
based loan in the students name, guaranteed by the Federal
government through the DOE Federal Government does not pay the
interest while the student is in school Fixed interest rate for
2012-2013 is 6.8% SUBSIDIZED VS. UNSUBSIDIZED
Slide 17
Perkins Loans (need based) Federal government pays the interest
while the student is in school Fixed interest rate of 5.0% Direct
Parent Loan for Undergraduate Students (PLUS) Credit-based
educational loan in the parents name guaranteed by the Federal
government Fixed interest rate of 7.9% The government does not
subsidize this loan Maximum amount a student can borrow is the cost
of attendance minus all other financial aid OTHER LOANS
Slide 18
Alternative/Private Loans for Students available through banks
or other financial institutions Loan in the students name Credit
check required, student may need a credit-worthy cosigner May
borrow up to the Cost of Attendance minus other financial aid Other
LOANS
Slide 19
College Scholarship Assistance Program Public & private
colleges, need-based Virginia Commonwealth Award Public colleges,
need-based Virginia Guaranteed Assistance Program Public colleges,
need-based Virginia Tuition Assistance Grant Program Private
colleges, non-need-based, separate application required. Estimated
:$3,100. Types of VA State Financial Aid
Slide 20
Some colleges and universities offer their own institutional
scholarships, grants, and loans. Check out their individual school
websites for deadlines and required applications. Outside
Scholarships Know what kinds of scholarships students can apply for
locally. Encourage them to pay close attention to deadlines, and to
contact donors with any questions. Other Types of Financial
Aid
Slide 21
LETS TRY ANOTHER ONE! Desiree will be attending a school with
the following costs: Tuition: $24,800 Fees: $3,200 Dorm: $5,640
Meal Plan: $4,400 Books and Supplies: $1,250 Other Expenses: $2,935
She completes her FAFSA and all other application requirements, and
her EFC is determined to be $44,615. What is Desirees demonstrated
financial need?
Slide 22
LETS TRY ANOTHER ONE! The schools COA is $42,225. Desirees EFC
($44,615) is higher than the COA. Therefore, Desiree has no
demonstrated financial need. Can Desiree still receive financial
aid?
Slide 23
LETS TRY ANOTHER ONE! Although Desiree has no financial need,
there are non- need-based resources available to her! What are
they?
Slide 24
Slide 25
Obtain and review admissions and financial aid information from
each school. Submit all applications and requested documentation by
the deadlines. Investigate other sources of aid every year. Talk to
financial aid offices if you or the student has questions or
special circumstances. Helpful Tips FOR STUDENTS
Slide 26
Net Price Calculator
Slide 27
College ABaCus
Slide 28
Slide 29
July 2014
Slide 30
EFC Expected Family Contribution The number used to determine
the students eligibility for financial aid; it results from
information provided within the application. FOTW FAFSA on the Web
Online version of the FAFSA, available at www.fafsa.gov, its faster
and easier than the paper version. So what does FAFSA stand for?
FINANCIAL AID ACRONYMS
Slide 31
SAR Student Aid Report A summary of the information that the
applicant submitted on his or her FAFSA, its available to the
student a few days after the FAFSA has been processed. AGI Adjusted
Gross Income Reported on a tax filers return (1040, 1040A and
1040EZ), the number represents gross income minus specific
deductions and is asked on the FAFSA. FINANCIAL AID ACRONYMS
Slide 32
FAFSA ON THE WEB www.FAFSA.gov
Slide 33
To create an application, the student will enter his or her
Name Social Security Number Date of birth IMPORTANT: ALL of these
must be correct since this data is matched with information on
record with the Social Security Administration. If the application
is submitted with an error in one of these fields, the student must
start a new, correct application, per guidance from the US Dept. of
Education. LOGGING IN
Slide 34
Currently, applicants can apply for a Federal PIN from this
screen: However, this spring the Department of Education will be
retiring the FAFSA PIN and will transition to user IDs and
passwords. LOGGING IN
Slide 35
Spring 2015 implementation of new login process for the
Department of Educations student websites (FOTW, NSLDS,
studentloans.gov & studentaid.gov) User name and password will
replace the PIN as the method of authentication used to access
student aid information Will not be in place until about April, so
the FAFSA season will begin with the current authentication method
in place. More guidance will be available before the unveiling!
LOGGING IN
Slide 36
The student answers a series of yes or no questions to
determine if they are dependent on their biological or adoptive
parent(s), or independent for financial aid purposes. How the
student responds here will determine the content of the rest of the
application. It is very important that all students answer this
section with 100% accuracy. DEPENDENCY DETERMINATION
Slide 37
Here are the questions currently in use in the 2014-2015 FAFSA:
DEPENDENCY DETERMINATION
Slide 38
Legal Guardianship: A legal guardianship is a relationship
established by the court where one person acts for the benefit and
protection of another personguardianship This student is an
Independent Custody: is granted to one or both parents of the
child. In contrast, a legal guardian is not the parent of the
child, and is usually a close relative of the child or parent. This
student is a dependent Legal Guardianship and Custody
Slide 39
What is skip logic ? Skip logic is a sophisticated tool that
allows respondents to be directed to a future question or page
based on the answer or answers they select for an earlier item.
Skip logic is a feature in both FOTW and the CSS PROFILE (but not
the paper FAFSA!). POP QUIZ!
Slide 40
From the FAFSA help screen: PARENT DEMOGRAPHICS
Slide 41
New in 2014-2015, continues in 2015-2016 Applicants must report
the information of both legal (biological or adoptive) parents,
regardless of their marital status, if the parents live together.
PARENT DEMOGRAPHICS
Slide 42
New in 2014-2015, continues in 2015-2016 The Supreme Court
holds that Section 3 of DOMA is unconstitutional because it
violates due process and equal protection. What does this mean for
financial aid? A couple whose marriage is recognized as valid in
any domestic or foreign jurisdiction is considered married for all
FAFSA and EFC calculation purposes. This applies to opposite- sex
and same-sex couples, regardless of where the couple resides. DOMA:
THE DEFENSE OF MARRIAGE ACT
Slide 43
New in 2014-2015, continues in 2015-2016 Applies to both
parents and students A student who does not meet any of the other
independent criteria will be considered independent for financial
aid purposes if he or she is legally married, without regard to
whether the student is in a same-sex or opposite-sex marriage.
DOMA: THE DEFENSE OF MARRIAGE ACT
Slide 44
What is verification? Verification is the process that schools
use to confirm that the data reported on an applicants FAFSA is
accurate. It may involve requesting additional documentation to
corroborate the information reported and authenticated by the
applicant (and, if dependent, the applicants parents). Students can
be selected by the school, or by the US Department of Education.
VERIFICATION
Slide 45
How does verification work? When the student submits the FAFSA,
the application is processed by CPS (the Central Processing
System), who analyzes the data and may or may not select the
application for verification. Contrary to what many believe,
selection is not random. CPS uses a complex algorithm to identify
applications that may be more prone to errors than others. The
Department of Education does not discuss the selection algorithm.
VERIFICATION
Slide 46
What information must the school verify? The list of
possibilities is quite long! Verification is organized into certain
tracking groups (V-1, V-3, V-4, V-5 and V-6) and the information to
be verified is specific to the group. In most cases, its a piece or
pieces of data reported directly on the FAFSA. It can be anything
from only one field like child support paid (V-3) to a lengthier
range of tax return data (either V-1, V-5 and V-6). It could also
be the students identity and educational purpose (V-4).
VERIFICATION
Slide 47
How does verification work? A student can only be selected for
one tracking group. He or she may or may not be selected in
subsequent years, and if selected, the tracking group may differ
from year to year. The school has the right to ask for any
documentation that it feels would be necessary to complete
verification. If the family does not supply the required
documentation, the school is prohibited from disbursing federal aid
to the student. VERIFICATION
Slide 48
How does verification work? Example: A dependent student who
filed a tax return, and whose parents also filed a tax return, is
selected for V-1 verification. The school must verify: Adjusted
Gross Income US Income Tax Paid Untaxed Portions of IRA
Distributions and Pensions IRA Deductions and Payments Tax Exempt
Interest Income Education Credits Number of Household Members
Number in College SNAP, if reported on the FAFSA VERIFICATION
Slide 49
What documentation may be required? A tax return transcript, or
successful usage of the IRS Data Retrieval Tool (DRT) in FOTW Not
available until February A signed statement to confirm the number
in the students family and where any other dependents may be
attending college All W-2s received by the student and parent(s) A
signed statement to certify that any Federal student financial
assistance received will only be used for educational purposes and
to pay the cost of attending the school VERIFICATION
Slide 50
Why does this matter to you? As College Advisers, you may be
called upon to help the student navigate the documentation that is
being requested. Though all schools listed on the students FAFSA
can see that the applicant was selected, the documentation that
each school requires may be slightly different from one to the
next. Therefore, completing verification for students entering
college can be complex, confusing, and sometimes intimidating.
VERIFICATION
Slide 51
18,827,577 The number of applicants who filed the FAFSA between
January 1 and November 1, 2013 5,722,505 The number of those that
were selected for verification (about 30.39%) VERIFICATION BY THE
NUMBERS
Slide 52
Three tax forms, all different lengths. What difference does it
make, and why is it asked on the FAFSA? 1040 vs. 1040A vs.
1040EZ
Slide 53
Have you ever seen a FAFSA that essentially skips all of the
asset questions? Maybe even the entire student portion, too? The
response to the tax return questions may be used in part to
determine which EFC calculation formula through which a students
data feeds. In other words, based on the response, the applicant
may qualify for a formula that doesnt use asset data or student
data! 1040 vs. 1040A vs. 1040EZ
Slide 54
Financial aid regulation provides a simplified EFC calculation,
as well as an automatic-zero EFC calculation, for a student who
meets certain income and tax filing requirements. If the applicant
is eligible, the Central Processing System (CPS) will exclude
assets from the calculation, and the applicant may not be asked
asset or student questions. 1040 vs. 1040A vs. 1040EZ
Slide 55
Note: For the purposes of determining the EFC calculation,
being eligible to file a 1040A/EZ instead of a 1040 is the same as
filing one. Thats why the FAFSA asks if the parent was eligible to
file a 1040A/EZ! So if the parents filed a 1040, but were eligible
to file a 1040A, they may qualify for one of the alternative
formulas! 1040 vs. 1040A vs. 1040EZ
Slide 56
A VERY OVER-SIMPLIFIED EXAMPLE: What tax form did your parent
file in 2014? 1040EZ What was their AGI in 2014? $19,849 Possible
Outcome: ASSETSSTUDENT INFORMATION EFC = 0 1040 vs. 1040A vs.
1040EZ
Slide 57
In general, you are eligible to file a 1040A or 1040EZ if you:
Make less than $100,000 per year Do not itemize deductions Do not
receive income from your own business or farm Do not receive
self-employment income or alimony Are not required to file Schedule
D for capital gains If you filed a 1040 and were not required to
file a tax return, you should answer "Yes" to this question. 1040
vs. 1040A vs. 1040EZ
Slide 58
The 2015-2016 CSS PROFILE is now available at
www.collegeboard.org! It hasnt changed much from last year, but a
reimagination is currently taking place that will enhance the look
and functionality of the application for 2016-2017. CSS PROFILE
REIMAGINATION
Slide 59
$9 for the application, $16 for each school Same username and
password as SAT 2016-2017 reimagination will involve the ability to
upload a tax document and through Optical Character Recognition
(OCR), prefill certain fields CSS PROFILE: LOGISTICS
Slide 60
5 schools in Virginia currently require the CSS PROFILE: The
University of Virginia The University of Richmond Washington and
Lee University College of William and Mary Patrick Henry College
VIRGINIA PROFILE SCHOOLS
Slide 61
The logic is built into the application. A student will know if
he or she has received a waiver because there will be no charge at
the end. Allows the student to submit the application to a maximum
of six schools free of charge. Fee Payment Codes, provided by the
school, allow a student to submit their application free of charge
to that particular school. UVa generally does not offer these. FEE
WAIVERS
Slide 62
Registration 21-item Registration section Applicants must
submit the Registration before proceeding to the application. The
application builds around the responses to the Registration.
Therefore, if the student alters Registration questions, the
application part may alter in accordance with the changed
Registration questions. HOW IT WORKS
Slide 63
Application The application section may consist of about 50 to
130 questions. Help codes are available throughout by selecting the
question mark icons or the blue links near the questions. Students
should use whole numbers and enter a zero for questions that will
not have an amount. HOW IT WORKS
Slide 64
Many people find that the PROFILE is more extensive and may be
longer in number of questions asked. The PROFILE does not have
simplified EFC or automatic-zero EFC calculations. The PROFILE
provides an opportunity for students and families to provide
additional written information in the Special Circumstances
section. FAFSA VS. PROFILE
Slide 65
When the CSS PROFILE asks for the current marital status of the
students biological or adoptive parents, the options are the
following: Married Separated Divorced Never married, living
separately Never married, living together Widowed Single adoptive
parent (at time of adoption) Single parent of donor conceived child
(at time of conception) FAFSA VS. PROFILE
Slide 66
REMINDER The FAFSA and the PROFILE define parents in the SAME
way. They also define the custodial parent in the SAME way. But
unlike the FAFSA, if a student has a legal guardian, then all of
the parent questions on the PROFILE apply to the students legal
guardian. FAFSA VS. PROFILE
Slide 67
http://fafsademo.test.ed.gov/ http://fafsademo.test.ed.gov/
Username: eddemo Password:fafsatest FAFSA Practice