2016/17 Financial Aid High School Presentation · SSI, SNAP, Free or Reduced Price Lunch, TANF,...

2016/17 Financial Aid High School Presentation

:

Dorothy J Gilliard, FASNA LLC Consultant and

HESAA Representative

Higher Education Student Assistance Authority 2

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WHAT WE WILL COVER

The Types/Sources of Aid

The Application Process

The Financial Aid Package What Happens After the Application is Submitted


Sources of Aid • Federal • State of New Jersey • The College/University • Outside Organizations – Civic organizations (ex.-local Rotary Club), parent’s employer, high school awards

Types of Financial Aid • Grants • Scholarships • Loans • Employment Opportunities

Section I Sources - Types of Aid


Types of Aid - Federal

• Federal Government Grants 2015/16

–Pell ($5,815 projected award)

–SEOG ($4,000 max award)

–TEACH ($3,728 max award)


• •

Types of Aid – PP/Loans for Students Monthly Payment Plans – offered by the college/private entities (not a loan) Federal Direct Undergraduate Direct Loans are 4.29% plus a 1.068% origination fee 2016 – 2017 Rates and fees are subject to change


Types of Aid – Loans for Students/Parents • Variable Rate NJCLASS LOAN, starting at 4.53% This option has no origination fee • Fixed Rate NJCLASS LOAN, varying repayment options Interest rates range from 4.99% to 7.85% for the 2016 -2017 award year. Students can borrow up to the cost of attendance and must be the borrower. All fixed rate NJCLASS loans have a 3% origination fee • Federal PLUS Program (6.84% & 4.272% Origination fee) Parent is the borrower • Private Educational Loans – Sallie Mae, Wells Fargo, PNC, Etc. • Home Equity Loans – For Homeowners

2016 – 2017 Rates and fees are subject to change

Higher Education Student Assistance Authority

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Types of Aid – State • State of New Jersey

– TAG (Tuition Aid Grant) 2016 – 2017 • Demonstrate Financial Need • Be a U.S. citizen or eligible non-citizen • Must be New Jersey Resident & attend a New Jersey

Institution • Must be full time at an approved degree program • Meet all state deadlines

– Part-Time TAG for County Colleges 2016 -2017 • Meet all TAG requirements • With the exception of being enrolled for 6-11 credits

Amounts range from $2,628 - $12,196 (FT)

NJ EOF Program

Must demonstrate an educationally and economically disadvantaged

background Must be a New Jersey resident 12 consecutive months prior to receiving

the award (parent and student) Must apply and be accepted to a participating New Jersey college or

university Must meet the academic criteria as set by the institution of choice Must file a Free Application for Federal Student Aid (FAFSA) Gross Income must fall within specified categories

ach additional member of the household add 2 $31,460 3 $39,580 4 $47,700 NJ J5 $55,820 6 $63,940 7 $72,060 NJ8 $80,180

$8,120 Academic Year 2016 2017

Types of Aid – State (cont.)

Must apply and be accepted to a participating New Jersey college or university Must meet the academic criteria as set by the institution of choice

Must file a Free Application for Federal Student Aid (FAFSA) Gross Income must fall within the criteria shown:

Academic Year 2015-2016E Fora Household Size of Gross Income

ach additional member of the household add 2 $EOF Income Limits31,460 3 $39,580 4 $47,700 NJ J5 $55,820 6 $63,940 7 $72,060 NJ8 $80,180

$8,120 Academic Year 2016-2017

Applicants with a Household Size of Gross Income

EOFNot to Exceed ADD $8320 for each addtl person in the household

3 $40,180 4 $48,500 5 $56,820 6 $65,140 7 $73 460


Gross Income not to Exceed

1 $23,540

2 $31,860

3 $40,180

4 $48,500

5 $56,820

6 $65,140

7 $73,460



• State Scholarships – NJ STARS • NJ residents who rank in the top 15% of their class at either the end of junior or senior year • Achieve the required score on a college placement test to determine college readiness • Students must take at least 12 college credits • Students must attain a cumulative GPA of 3.0 or higher at the start of the third semester at the county college to remain an NJ STAR • Must file a Free Application for Federal Student Aid (FAFSA) • Covers Tuition only

– NJ STARS II • Received NJSTARS funding and have a family taxable income of less than $250,000 • Must earn an associates degree and graduate with a 3.25 GPA or higher • May receive up to $2,500 annually for a public or private 4-year NJ college or university • Must enroll full time (12 credit hours) • Must file a Free Application for Federal Student Aid (FAFSA)

Academics AthleticAbility SAT’s GeographicDiversity APCourses Legacy(childofalumni) Activities Talent AcademicTrack Gender/Ethnicity H.S.Attended ClassRank


Types of Aid - Institutional & Private Scholarships

• Factors that may influence eligibility:

* .


Section II - Applications


Application: CSS Profile • Nearly 300 Colleges and Organizations use the CSS profile to determine how they will award institutional funds • Available 10/1 each year and collects more comprehensive income, asset and household information than the FAFSA (i.e. assets for business owners regardless of number of employees Register - Complete Application – Make payment - Submit

CSS Profile

• Website to apply for profile www.student.collegeboard.org/profile

• Website to apply for Noncustodial Profile: www.ncprofile.collegeboard.org Customer Service 305-829-9793 [email protected]



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• Submit the Free Application for Federal Student Aid (FAFSA) prior to the earliest school’s deadline & complete the NJ State Specific Questions

• Available January 1st • To ensure maximum consideration for federal, state,

and institutional aid, check information from each school to determine: – Required application materials – Application deadlines

• Be sure to answer all optional questions on the FAFSA like “Gender” & “Driver License” to speed up processing

Application: FAFSA

A Change for 2017-18

Both the CSS Profile and the FAFSA will have a new Beginning Processing Date for the 2017-18 School Year

October 1, 2016

Senior HS Students will apply in January, 2016 for September; again in October for September 2017-18

Use same Income Information; Assets could change

Will facilitate the IRS Data Retrieval Process

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FAFSA on the Web at www.fafsa.ed.gov Student & Parent must create a Federal Student Aid ID

(FSA ID) at fsaid.ed.gov

• Estimated income or actual prior year tax information (2014)

• Use the IRS Data Retrieval Tool to populate income & tax information Higher Education Student Assistance Authority 16

Free Application for Federal Student Aid (FAFSA) • Collects family’s personal and financial information used to calculate the student’s Expected Family Contribution

• File the FAFSA electronically


What is a Federal Student Aid (FSA) ID? • In order to enhance security, FAFSA has replaced the PIN number with the FSA ID

• If you already have a PIN, you can link your information to your new FSA ID by entering your PIN while registering for your FSA ID PIN number is not necessary to create a FSA ID • If you are a parent of a dependent student, you will need your own FSA ID


General Highlighted Eligibility Requirements

• Must have a valid Social Security Number

• Must be enrolled or accepted for enrollment in an eligible program of study

• Must be pursuing a degree, certificate, or other recognized credential

• Must be a U.S. citizen or eligible noncitizen

• Must be registered with Selective Service (males are required)


• • • •

Key Components of the FAFSA Student Demographics – Last Name – Social Security Number – Date of Birth – NJ applicants must provide an answer to the driver’s license questions. – ALL applicants must indicate their gender. Student Income and Assets – IRS Data Retrieval – Income earned from work Student Status: Dependent/Independent Parent Demographics-Who is a Parent? – Social Security Number – Last Name – Date of Birth

• • • • •

webpage to complete the additional data elements for Tuition Aid Grant (TAG) and NJ STARS (II) eligibility. – May also come to HESAA website to complete additional data elements if a student forgets to go there from the FAFSA confirmation page. Higher Education Student Assistance Authority 21

Key Components of the FAFSA (cont.) Household Size – Number in college Parent(s) Income and Assets – IRS Data Retrieval – Income earned from work – Dislocated Worker Federal Means Tested Benefits – SSI, SNAP, Free or Reduced Price Lunch, TANF, WIC College Choice – List a New Jersey college first !! – IMPORTANT - !! – List all colleges of interest (up to 10) Once submitted, use the link from the FAFSA confirmation page to HESAA’s

New Information About College Listings on the FAFSA

In response to some parental concerns that some institutions have been using the list of colleges that a student includes on the FAFSA for purposes unrelated to the awarding of financial aid the Federal Government will only provide the receiving school’s information on the ISIR record.


• • • • • • •

Common Mistakes Made on the FAFSA

Student’s name as it appears on the social security card, social security number, and date of birth. Parent section vs. Student section Number of people in the household Divorced/remarried households Taxes paid vs. taxes withheld (estimated income) Parental and student assets - “Zero” is a number

Skipping the gender question

Assets to Be Reported on the FAFSA

Cash, Savings, Checking

• Certificates of Deposit (CDs)

• Brokerage accounts

• Stocks, bonds, mutual funds, money market accounts, stock options

commodities and precious metals

• Businesses if a business employees 100+ persons

• Real estate (other than your primary residence

• Custodial accounts (UTMA. UGMA)

• Trust funds

*College Savings Plans

Assets That Are NOT Reported on the FAFSA

*The family’s principal place of residence (the family home)

• Qualified retirement plans, such as 401(k) plans, 403(b) plans, pension plans, annuities, traditional IRAs, Roth IRAs, Keogh, profit sharing, SEP and SIMPLE plans

• Life insurance policies, including cash value and whole life insurance policies

• Personal possessions, such as clothing, furniture, a car, computer equipment and software, television and stereo equipment


Cost of Attendance

• Tuition and fees • Room and board

• Books and supplies, equipment, transportation, and miscellaneous personal expenses

• Loan fees • Study abroad costs

• Other unexpected educational costs

The Expected Family Contribution (EFC)

• Basis of financial aid package

• EFC is determined by a federal formula that calculates need using the information you supplied on the FAFSA

• EFC & Financial Need are guidelines used by schools to determine an aid package

• EFC is not necessarily equal to a family’s out-of- pocket costs



• Family lives in New Jersey • Married parents, both age 46 • Household size of 5 with 1 child going to

college • 2015 adjusted gross income = $73,500 • Assets = $10,000 • Student income / assets = 0

EFC = $5,545

Sample EFC for Family X

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• Family lives in New Jersey • Single parent, aged 38 • Household size of 3 with 1 child going to

college • 2015 adjusted gross income = $45,000 • Assets = $5,000 • Student income / assets = 0

EFC = $2380

Sample EFC for Family X

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Simplified Needs Test. This version disregards all asset information, including student assets and parent assets (if applicable). Auto-Zero EFC. This version sets the applicant’s expected family contribution (EFC) automatically to zero.

(1) Anyone included in the parents’ household size (as defined on the FAFSA) received benefits during 2014 or 2015 from any of the designated means-tested federal benefit programs: OR the student’s parents: • filed or were eligible to file a 2015 IRS Form 1040A or 1040EZ • filed a 2015 IRS Form 1040 but were not required to do so , or • were not required to file any income tax return; OR the student’s parent is a dislocated worker. (2) Combined parental income is $49,999 or less

Simplified Needs Test

The income threshold for the parents of dependent students and for independent students and their spouses is $25,000 or less (for an automatic zero EFC) instead of $49,999 or less (for the simplified EFC calculation) The other criteria cited in the previous slide also applies regarding Federal Means Tested Benefits , type of Tax Return filed, and employment status

Auto Zero EFC

Once the EFC is determined and the student has been accepted by a school they will receive either a Financial Aid Award Letter or a Financial Aid Shopping Sheet.


Click to Apply for State Aid

2016-2017



Award Letter

• Award letter format may vary by institution

• Available in hard copy or on-line

• Available after FAFSA filed and student is accepted

• Used to compare aid packages


Section IV – Other Information

Financial Aid Timeline:

Oct-Jan - Complete college search, application process, and CSS Profile

Jan-March - Student/Parents complete FAFSA

March-May - Schools send award letters

June-July - School sends Fall Semester bill

Where Do I Go From Here?

• Obtain and review admission, financial aid materials and deadlines from each school to which you are applying

• Meet all application deadlines

– CSS Profile if applicable

– Complete the FAFSA and any other application materials required by the school or your state agency - NJ State deadlines are: • October 1 for Fall and Spring term awards; March 1 – Spring awards only



• • • • • • • •

Private Scholarship Search Institution/college web sites Local library resources Local businesses, civic organizations and churches Parent’s employer(s) www.cappex.com www.fastweb.com www.zinch.com https://colleges.niche.com/scholarships


Other Resources

• Outside Scholarships • Campus Administered Payment Plans • Campus Employment • Specialized Campus Opportunities Residential Advisors Student Ambassadors Student Tour Guides Internships/CO-OP’S


For More Information Please visit these sites or call:

HESAA

www.hesaa.org

800-792-8670 Dept. of Education

www.studentaid.gov

800-4 FED AID FASNA LLC:

www.fasnaservices.com

800-706-9413

http://www.hesaa.org/

http://www.studentaid.gov/

http://www.fasnaservices.com/

Thank you


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2016/17 Financial Aid High School Presentation · SSI, SNAP, Free or Reduced Price Lunch, TANF,...

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