What You Need To Know About Financial Aid

Presented by Suzanne Hanlon, Financial Aid Officer from the University of Connecticut’s Office of Student Financial Aid Services

Ellington High SchoolNovember 24, 2015

Topics to Discuss

Topics •Cost of Attendance (COA)•Expected Family Contribution (EFC)

To •Financial Need•Types of Financial Aid

Discuss •Free Application for Federal Student Aid (FAFSA)•Post – Application Processes

Tuition Fees

Room and Board (students living on

campus)

Direct Costs

Books Transportation

Miscellaneous

Indirect Costs

What is Cost of Attendance (COA)?

What is the Expected Family Contribution (EFC)?

• The measure of a family’s financial strength as it relates towards subsidizing an education for one year

• Determines the types and amounts of aid that students are eligible to receive

• Calculated based on the information provided on the FAFSA

What is Financial Need?

$ Cost of Attendance(COA)

Expected Family Contribution (EFC)

$ Financial Need

“Need” Differs Based on Cost

Cost of Attendance(variable)

Expected FamilyContributions

(constant)

$24,000

Need(variable)

EFC$7,000

$33,000

$17,000

− =

$40,000

$8,000 $1,000

EFC$7,000

Types of Financial Aid

Scholarships Grants

Loans Employment

Scholarships

Local businesses and civic organizations

State Department of Education

School Counselor Places of Employment Internet• http://fastweb.com• http://fastap.org• http://hfpgscholarships.org

College or University• Academic• Athletic• Departmental

Federal Grants

Pell Grant

TEACH

Federal Supplemental

Education Opportunity

Grant (FSEOG)

Federal Loans

Perkins Loan

Direct Subsidized

Stafford Loans

Direct Unsubsidized Stafford

Loans

Parent Plus Loan

http://studentaid.ed.gov/types/loans

Federal Work Study

Institutional Labor

Student Employment

Financing Alternatives

Monthly Payment Plans

Alternative/Private LoansStrongly consider Federal loans first

THE FINANCIAL AID APPLICATION PROCESS

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How Do I Apply?

Application Used primarily by private colleges

www.collegeboard.com

Institutional Applications Check school publications and websites

FAFSA – The Free Application for Federal Student Aid Required for Most Aid

www.fafsa.ed.gov

Who is Eligible for Federal Aid ?

Must be enrolled or accepted in eligible program of study

Must be pursuing degree, certificate, or other

recognized credential

Must be a U.S citizen or eligible non-citizen

Eligibility may be suspended due to drug-

related conviction

Must have a valid Social Security Number (SSN)

Must continue to make Satisfactory Academic

Progress (SAP)

Must not be in default on a federal student loan

Must not owe an overpayment of federal

grant or loan funds

Males must be registered with Selective Service

www.sss.gov

Web site: fafsa.ed.gov Click the FSA ID icon to apply Sign FAFSA electronically May be used by students and

parents throughout aid process, including subsequent school years FAFSAs and signing Federal Direct Loan Master Promissory Notes (MPN)

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Obtain Federal Student Aid ID (FSA ID) for Student & Parent

Tip: Get student AND parent FSA ID (1 each) now!

FAFSA: General Information Section

Student Demographic Information

Citizenship Information

Drug Conviction StatusType of Degree

Grade Level for the 2016-2017 school

year

Parental Educational Background

Dependency Status

What is a Parent

Definition

Household Information

Tips for Student/Parent Income Information Section

OK to estimate and correct later using

the IRS Data Retrieval Tool (DRT)

Tax Filing Status and

type of return

AGI not always the same as income

earned from work on W-2 form

Income from work – include

Self Employment

Federal Income Tax –liability may

not match W2

•Net worth of the home you live in•Retirement accounts (401K, IRA, Pensions)•Net worth of a family-owned business employing less than 100 people•Net worth of family farm on which you live

Do NOT Include:

Tips for Asset/Investment Information Section

Tips for Asset/Investment Information Section Continued

Cash, savings, checking account

balances

Net worth of rental/investme

nt properties

Educational benefit/savings accounts (529)

Net worth of family business if over 100 employees

Include:

How the IRS Data Retrieval Works

Data Retrieval Tool Imports

Tax Information directly from IRS to FAFSA

Data Retrieval Tool is available early February for the 2016-

2017 processing cycle

Student and parent choose whether or not to transfer data

to the online FAFSA

Data Retrieval Tool is not

available for all filing statuses

Data Retrieval is available to use two to three weeks after parent or student tax returns have been processed by the IRS.

If tax information is requested by the Financial Aid Office, you may also obtain “IRS Tax Return Transcript” on IRS web site.

Additional Tips for Income Information Section

Untaxed Income Include

•Annual IRA/pension contributions•Workman’s Compensation•Untaxed Disability•Untaxed IRA Distributions/Pension/Interest•Child Support Received

Do Not Include

Additional Tips

Federal School Codes needed for each college

Can enter up to 10 school codes – FAFSA information is sent to each school listed

Housing Plans

On/Off Campus or Living with Parent

For Dependent Students

Both Parent and Student must sign with separate FSA ID each time the application is submitted

Prior PriorFor aid applications beginning for the 2017-2018 award

year

Available Fall 2016

Use tax information from

two years ago

Enables more users to use the IRS DRT

2015 tax information will be used for 2016-2017 and for 2017-2018

What To Do After You File Your FAFSA

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What’s Next?

Student submits completed FAFSA

Federal processor determines Expected Family Contribution (EFC)

Federal processor sends Student Aid Report (SAR), which includes your EFC and comments for review

Using your EFC, your prospective college determines your financial need

Prospective college sends student a financial aid award

What’s Next? Continued…..

School Creates Financial Aid Package

Verification

Special Circumstance Appeal

Tips for Making Informed Financial Aid Decisions

Never Decline Aid You Do Not Understand

•Do your research•Contact you school’s Financial Aid Office

Consider Federal Loans before Private Loans

•If necessary, research for private loan lenders

Consider the Long-Term Cost of

Borrowing

Federal Student Aid

US Dept. of Education http://studentaid.ed.gov

Free Application for Federal Student Aid (FAFSA) www.fafsa.ed.gov

FAFSA Information http://studentaid.ed.gov/fafsa

FAFSA4Caster: Online Eligibility Estimator http://studentaid.ed.gov/fafsa/estimate

1-800-4-FED-AID (1-800-433-3243) TTY: 1-800-730-8913

College Goal Sunday: www.collegegoalsundayct.org January 2016

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Resources

QUESTIONS???

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