The Montana Association of Student Financial Aid
Administrators
Presented by:Presented by:
Judy Chapman, Judy Chapman, DirectorDirector
MSU-Billings Financial Aid & ScholarshipsMSU-Billings Financial Aid & Scholarships
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Kalie PorterKalie Porter
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About the FAFSA
Types of Financial Aid
Other Resources
Overview
What the heck is the “FAFSA?”
FAFSA = Free Application For Federal Student Aid
Emphasis on the “FREE” Part!
Federal Financial Aid Eligibility Requirements
Student must have the following: Be a U.S. citizen or eligible noncitizen Have a valid Social Security number (unless you're from the
Republic of the Marshall Islands, the Federated States of Micronesia, or the Republic of Palau)
Comply with Selective Service registration, if required (see www.sss.gov for more information)
Have a high school diploma or a General Education Development (GED) Certificate or pass an approved ability-to-benefit (ATB) test
Be enrolled or accepted for enrollment as a regular student working toward a degree or certificate in an eligible program at a school that participates in the federal student aid programs
Also: You must not owe a refund on a federal grant or be in default
on a federal student loan You must have financial need (except for unsubsidized
Stafford Loans) You must not have certain drug convictions
Applying for DifferentTypes of Aid
USE THE FAFSA FOR : Grants – Free or “gift” aid Work Study – Self- help – must be
earned Loans – Self-help – must be repaid
USE SEPARATE APPLICATION FOR: Scholarships Waivers Follow the process at your school
FAFSA - Two Ways to Apply
Electronic - Recommended: FAFSA on the WEB @ www.fafsa.ed.gov Reminder - get your PIN number first
www.pin.ed.gov (parent and student)
Paper FAFSA Forms available from financial aid office or
high school guidance counselor The paper FAFSA colors: YELLOWYELLOW for
student info, PURPLE for parent info
PIN Registration
Web site: www.pin.ed.gov
Apply now - Both student and parent need a PIN
PIN is used for FAFSA, MPN, NSLDS access
Add to your address book [email protected]
The Form
FAFSA on the WEB - Sample Worksheet
• Use of the worksheet is optional; it should NOT be submitted to the US Dept of Ed or to your school.• Not all of the questions from FAFSA on the Web appear in this worksheet, but questions are generally ordered as they appear online.• Once you are online, you may be able to skip some questions based on your answers to earlier questions. The FAFSA on the WEB will determine for you which questions can be skipped.
You must complete and submit a Free Application for Federal StudentAid (FAFSA) to apply for federal student aid and to apply for moststate and college aid. Applying online with FAFSA on the Web atwww.fafsa.ed.gov is faster and easier than using a paper FAFSA.For state or college aid, the deadline may be as early as January 2007.See the table to the right for state deadlines. Check with your highschool counselor or your college’s financial aid administrator aboutother deadlines.
DO NOT MAIL THIS WORKSHEET.
FAFSA on the WEB - Sample
Filling Out the FAFSA
Tax information Use 2006 Federal tax information Do not send any other forms with the paper FAFSA If using paper, then mail the paper form in the envelope provided – it is
pre-coded for faster processing
Student and Parent Information Use correct SSNs Use LEGAL NAME from Social Security Card Accurate Date of Birth
School Information Identify at least one school Can list up to four schools at a time
Contact Financial Aid Office for assistance
Avoid ERRORS!
Errors made in completing the FAFSA and/or supplemental forms may delay application processing and result in the loss of financial aid funds.
Please complete all forms carefully!
Frequent FAFSA Errors
Divorced/remarried parent information Income earned by parents/stepparents Untaxed income U.S. income taxes paid Household size Number in postsecondary education Real estate and investment net worth
Timelines
Submit as early as possible after January 1st
Estimated tax return Completed tax return
Processing Times 1 – 3 days if submitted electronically 2 – 3 weeks if paper FAFSA is mailed School processing times vary
Check Student Aid Report (SAR) immediately for: EFC (on upper right of pg 1) Any mistakes or omissions If you haven’t received any information within 4
weeks, contact the financial aid office or Federal Processor @ 1.800.4.FEDAID.
Print and keep your confirmation number for tracking!
Components of the FAFSA
The Philosophy
The FormulaCOA, EFC, NEED
Parents and students are primarily responsible
Families are evaluated in their present financial condition
A family’s ability to pay is evaluated in an equitable and consistent manner
Special situations can be considered
The Philosophy(Why Is All This Information Needed?)
Divorced/Separated Parents
Whose information goes on the FAFSA? 1. Who did student live with most in last 12
months? 2. If #1 is not clear, who provided the most
financial support in the last 12 months? 3. If neither #1 or #2 clarifies it, choose the
parent from whom the student most recently received the most support.
Stepparent’s information is ALWAYS included!
What if I have a special situation?
A special conditions appeal may be filed when your income has changed due to: Loss of job Death of wage earner Divorce Unusually high medical bills paid
Special conditions are considered after initial awards have been determined.
Contact your financial aid office for assistance
The Formula
Cost of Attendance (COA)
Expected Family Contribution (EFC)
Need
What’s in the Cost of Attendance?
Main componentsTuition & fees Room & board Books & supplies Transportation Miscellaneous personal expenses
Other possible components Loan Fees Study abroad costs Dependent or elder care expenses Expenses associated with a disability Expenses for co-op education programs
E F C
What is it? How is it determined? Why do we need it?
The Processor uses a formula to determine “EFC” or
“Expected Family Contribution”
Fill out and submit FAFSA
Fill out and submit FAFSA
Federal processor will determine Expected
Family Contribution
School receives FAFSA info.
School determinesneed
School createsFinancial Aid
Award Package
Student receivesAward Letter
Student Responds to Award Letter
(Verification)
The Process
Types of Financial Aid
Need Based Scholarships Grants Employment Loans
Non-Need Based Loans Some scholarships Some work-study
Merit Based Scholarships
Sources of Financial Aid
Federal
State
Institutional (school)
Private
Available Grants
Federal Pell Grant
Federal Supplemental Educational Opportunity Grant (FSEOG)
Montana Higher Education Grant (MHEG)
Montana Guaranteed Student Loan Program Grant (MGSLP)
Baker Grant (Formerly MTAP)
Acce$$ Grant
Available Grants, ContinuedNEW FEDERAL GRANT PROGRAMS
National Academic Competitive Grant (ACG) First and second year students “Rigorous Course of Study” 3.00 GPA in second year $750 first year, $1,300 second year
National “Science and Mathematics Access to Retain Talent” (SMART)
Third and Fourth year students Must be in Specific Major Cumulative GPA 3.00 $4,000 max per year
For both ACG and SMART Grants: Must be US Citizens Must be Pell eligible and a Pell recipient in the
term the grant is awarded Must be enrolled full-time Questions on the 2007-2008 FAFSA will help
determine student’s eligibility
Federal & State Work Study
Can be need or non-need based
On or off campus
Earnings do not count as income on next year’s FAFSA
Amount awarded is not guaranteed to be earned
If you did not receive a work-study award,most schools have a waiting list.
Types of Educational Loans
Federal LoansStafford PerkinsGraduate PLUSParent PLUS
Private Loans
Federal Loan Eligibility
Loans are a type of financial aid
Need and Non-need based
Enrolled at least half-time
Federal Perkins Loan
Need based Interest rate: 5% fixedNine month grace periodDeferment & cancellation provisions Limited funding – apply early
FFELP / Direct Loans
There are four types of FFELP/Direct loans
Subsidized Stafford Loan Need based
Unsubsidized Stafford Loan Non–need based
Parent Loan for Undergraduate Students (PLUS)
Graduate PLUS Loan
Stafford Loans
FFELP/Direct Loans
Subsidized Stafford LoanNeed based
Unsubsidized Stafford LoanNon-need based
FFELP /DirectAnnual Loan Limits
Freshman - $3,500
Sophomore - $4,500
Junior/Senior - $5,500
Graduate and Professional - $8,500
FFELP / Direct Loans
Interest rate: 6.8% fixed FFELP - 1.5% origination fee, 1% default
fee Direct – 2.5% loan fees Deferment/Cancellation provisions 6 month grace period 10 year repayment
Federal Plus (Parent) Loan
Interest rate: 8.5% fixed
Borrowers are parents of dependent undergraduate students – credit check is performed
FFELP - 3% origination fee; 1% insurance fee
Direct – 4% loan fees
Loan limits: Cost of attendance less other aid No aggregate limit
Repayment begins 60 days after fully disbursed
Scholarship Types
Merit (Honors)
Institutional
Activities
Community
Montana University System Honor Scholarship
MUS Honor Scholarship Minimum GPA 3.5 In top 25% of graduating class Montana resident Met college preparatory requirements Accepted to a Montana University System
College or University Application and copy of college acceptance
letter due January 31st
Governor’s Postsecondary Scholarship Programs
Governor’s Merit Scholarship Top 25% of graduating class Minimum GPA 3.0 Same application as MUS Honor Scholarship Due March 31st
Cannot be a MUS Honor Scholarship recipient
Governor’s Merit-At-Large Scholarship Application online at www.mgslp.org Can begin applying January 2, 2007 Application, list of activities participated in, 250 word
essay, college acceptance letter, copy of high school transcript, and Student Aid Report (SAR)
Due March 31st
Scholarship Searches
Colleges
Internet www.safmt.org (MCIS) www.collegeboard.org www.finaid.org
Avoid Scams
Free, Free, Free!
Other Resources
Health & Human Services
Veteran’s Benefits
Military Service Scholarship (ROTC)
Bureau of Indian Affairs (BIA) Grants
Tribal Assistance
Vocational Rehabilitation
Taxpayer Relief Act
Hope Scholarship Tax Credit
Lifetime Learning Tax Credit
Student Loan Interest Deduction
Education IRA College Savings Plans
See IRS Publication 970 @ http://www.irs.gov/publications/p970/index.html
Financial Aid Mistakes to Avoid
Four Most Common MistakesSubmitting an Incomplete or Inaccurate
FAFSAProcrastinationFalling for Scholarship and FASFA
ScamsAssuming that Financial Aid is for
Someone Else
Free HelpSUNDAY, FEBRUARY 11, 2007
COLLEGE GOAL SUNDAY
Come to College Goal Sunday to get FREE assistance on completing the FAFSA.
Financial Aid experts will be on hand to answer your questions, assist with application process.
See information card in your packet. Get a PIN number before you come . . .
Thank you for your time and attention!
Judy Chapman657-2188
Kalie Porter657-1639