Understanding Financial Aid - Presented by Deniesha Newby Assistant Director of Student Financial Aid - St. Vincent ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Understanding Financial Aid
Presented by Deniesha Newby
Assistant Director of Student Financial Aid
The University of Akron
Students must
Federal
contact
prospective
schools to
Educational
ensure they
know how to
Rights &
add a parent
and/or Privacy Act
advocate!
( F E R PA )
The Basic Process . . .
Student applies
for admission to
preferred schools Student is Student receives
accepted for financial aid Student decides which
admission award offers school to attend,
notifies school, declines
offers from other
Student files
schools and finalizes
FAFSA on Oct. 1 School requests financial aid with
additional chosen school!
documents
Student Student receives
completes/submits financial aid
documents award offers
How Do I Apply? www.fafsa.gov 4
How Do I Apply?
• Obtain an FSA ID (federal student aid ID) for
student and parent which will serve as your legal
signature on federal financial aid documents.
www.studentaid.gov/fsaid
• Create a password for student and parent
• Complete the Free Application for Federal
Student Aid (FAFSA) at www.fafsa.gov
5
2020-2021 FAFSA
Prior-Prior Year (2018)
STUDENT WILL NEED PARENT WILL NEED
• Student’s 2018 federal tax info • Parent’s 2018 federal tax
– If not applicable, indicate
as such on FAFSA OR USE
info
THE DATA RETRIEVAL TOOL – USE THE DATA RETRIEVAL
TOOL
• Student’s income information
– Use W2s, 1099s, or other
docs if your student had • Parent’s income information
income but was not
required to file 2018 taxes
• Student’s asset information • Parent’s asset information
– Including, but not limited – Including, but not limited to:
to: cash on hand, balances cash on hand, balances in
in checking/savings checking/savings accounts,
accounts, college savings college savings plans in the
plans in the student’s parent’s name, etc.
name, etc.
The IRS Data Retrieval Tool (DRT)
7
Avoid Common Errors
• Using the incorrect social security number
• Failing to list your full legal name
• Incorrect amount of federal taxes paid
• Incorrect adjusted gross income
• Failure to electronically sign application
8
Who Is My Parent?
• Dependent students’ FAFSAs must include income and other
information about both of the students’ legal parents
(biological or adoptive) if the parents are living together,
regardless of the parents’ marital status or gender.
• Students raised by grandparents (whether or not they are
legal guardians) should never list a grandparent as a
parent. Contact the college or university for information
about a dependency status appeal.
9
Selective Service Requirement
• To be eligible for federal student aid, male citizens and male
immigrants residing in the U.S. aged 18 – 25 are required to
register with the Selective Service System.
• This requirement is applied to any person assigned the sex
of male at birth.
• The Selective Service System and the registration
requirement for males preserve America’s ability to provide
resources in an emergency to the United States Armed
Forces.
www.sss.gov
10When Do I Apply?
The 2020-21 FAFSA will be
available on October 1.
Check your college or university’s
priority deadline on their
website.
11What if I have experienced a change in
income since 2018?
Families who have experienced a loss of income or special
circumstance that has impacted their household should
contact the college or university for assistance. Special
circumstances cannot be reported on the FAFSA, but
should be considered when financial aid eligibility is
determined.
12BILLED BY THE COLLEGE/UNIVERSITY
Tuition & Room &
Fees Board
COST OF
ATTENDANCE
Books & Transportation Personal
Supplies Expenses
ESTIMATED PERSONAL EXPENSESWhat is Financial Aid?
Financial aid is a broad group of funding sources
that assists students in meeting their cost of
attendance and includes grants, scholarships,
work-study programs, and student loans.
14Federal Aid
• Grants
Ø Federal Pell Grant
Ø Supplemental Educational Opportunity Grant (SEOG)
Ø TEACH Grant
• Federal Work-Study
Ø Part-time employment opportunities for students with
financial need. Funds earned are paid directly to the
student for educational expenses.
15State Aid
The Ohio Department of Higher Education
(formerly known as the Ohio Board of Regents)
ØOhio War Orphans Scholarship
ØOhio Safety Officers College Memorial Fund
ØOhio College Opportunity Grant
www.ohiohighered.org
16Scholarships
• Universities and colleges
• Private foundations, businesses, charitable
organizations
• Civic organizations, employers, credit unions
• High schools counselors
• Scholarship sites
- www.fastweb.com
- www.scholarships.com
- www.collegenowgc.org
17Student Loans
• Federal Direct Loans
Ø Subsidized or unsubsidized
Ø 6-month grace period
Ø Repay to the U.S. Department of Education’s Loan Servicing
Company
Ø Interest rate is 4.53% (changes July 1 of each year)
• Private (Alternative) Student Loans
Ø Interest rates vary by lender and loan terms
Ø Credit-based (may require a cosigner)
Ø Repay to lender
18Parent Loans
• Parent Loan for Undergraduate Students (PLUS)
Ø Parent is the borrower—not the student
Ø Interest rate is 7.08%
Ø Interest begins accruing as funds are disbursed
Ø May choose to defer payments while student is in school
Ø May have remaining funds (after school charges are paid) sent to
the student for other educational expenses (books, supplies,
transportation, etc.)
Ø Credit-based, may use an endorser if initially denied
Ø If parent is ineligible, student will have additional eligibility from the
Unsubsidized Direct Loan
19Name Type FAFSA Merit Scholarship (institution) Gift No Talent Scholarship (institution) Gift No Pell, etc. (federal) Gift Yes SEOG (institution/federal) Gift Yes Ohio College Opportunity Grant Gift Yes (state) Work-study (federal) Self-help Yes Direct Student Loans (federal) Self-help Yes formerly “Stafford Loans” Parent Loans (federal) Self-help Yes Private Education Loan Self-help No
Sample Costs
Private Four-Year University
Tuition and Fees $32,586
Room and Board $11,282
Total $43,868
Public Four-Year University
Tuition and Fees $10,756
Room and Board $11,362
Total $22,118
Community College
Tuition and Fees $4,322
21Financial Aid Offer Letters
• Schools will begin sending financial aid award
letters in December-January timeframe.
• Will arrive either by U.S. Mail to the student’s
home or email to the student’s college or university
assigned email address.
• Award notifications are sent to students, not
parents.
22What’s in a Financial Aid Offer letter?
• Summary of charges
– Cost of Attendance (COA) – tuition, room, board (meal
plan). Some schools have board plans that include a book
allowance. Each school has a different COA!
– Cost of Education (COE) – tuition, room, board (meal plan),
books, health insurance, personal expenses, etc. Each
school has a different COE!
• Summary of Gift Aid – “free money”
– Merit/talent scholarships (different for each school)
– Need-based - need to complete a FAFSA
• State (Ohio College Opportunity Grant)
• Federal (Pell Grant, Supplemental Opportunity Education
Grant)
• InstitutionalWhat’s in a Financial Aid Offer letter?
(cont’d.)
• Summary of Self-Help Aid – need(s) to be repaid or
earned
– Federal Direct Subsidized/Unsubsidized Loan(s)
– Work-study
– Parent loans (PLUS)
– Private Loans
• The next steps you should take
– How to accept the award
– How to accept loans + additional requirements to receive
loans (Entrance Interviews, Master Promissory Notes, etc.)
– Other helpful informationWhat About Books and Supplies?
Books and supplies are usually not included with the cost of
tuition and fees billed by the school. Students should be
prepared to purchase books and supplies prior to the
beginning of the semester. Many schools disburse remaining
financial aid to students before the semester begins so that
they can use these funds for books and supplies.
25We’ve received several award
letters. How do we compare?
Determine the bottom line (“out-of-pocket” contribution)
for each school.
• Start by determining the COA (actual charges).
• Deduct gift aid.
• If you know your student will need to borrow loans, deduct the student
loans included in award (Federal Direct Subsidized/Unsubsidized). If your
student does not need to borrow loans, perhaps you don’t want to deduct
them. NOTE: I said need loans, not want loans. No student wants loans,
but he may need to borrow to be able to afford an education.
• What is left is your out-of-pocket contribution towards your student’s
charges.Out-of-Pocket Examples
School A School B
Tuition $13,000 Tuition $22,000
Room $3,500 Room $3,700
Board $3,600 Board $3,800
COA $20,100 COA $29,500
Less gift aid -$9,400 Less gift aid -$17,500
$10,700 $14,000
Less loans -$5,500 Less loans -$5,500
Out-of-pocket $5,200 Out-of-pocket $6,500Financing Out-of-Pocket
• There are several resources available to
students and families to help cover the out-of-
pocket contribution.
– Work-study
– Payment Plans
– PLUS Loans (Parent Loans for Undergraduate
Students)
– Private Education Loans
– Outside scholarships (schools, community
organizations, www.fastweb.com, etc.)EFC = out-of-pocket? • Families often assume that the amount of the EFC will be the exact amount they are asked to contribute to college costs. But this isn't always the case. • The actual amount your family is expected to contribute may vary for a number of reasons, including: – A college's admission and aid policies – The amount of aid available at a particular college
Expected Family Contribution (EFC)
• The EFC determines the amount that a student (family) is
expected to contribute toward the cost of attendance at the
college or university.
• The EFC is calculated according to a formula established by
law. The family’s taxed and untaxed income, assets, and
benefits could be considered in the formula. Also
considered is family size and the number of family members
who will attend a college or university during the year.
• The EFC is the determining factor in the amount of financial
aid that students may receive. It is subtracted from the Cost
of Attendance to before any need-based aid is awarded.
30Can I make payments?
After all financial aid opportunities have been
exhausted, colleges and universities may offer
payment plans to students and parents. Check with
your school for more information.
31Helpful Tips
• Stay organized!
– Keep separate folders for each school your student
has applied for admission.
– To help you complete the financial aid application,
locate the Federal School Code (6 digits) of each
school. Write this number on the school folder.
• Prepare!
– Print a copy of the FAFSA on the Web Worksheet,
available online: www.studentaid.ed.govRemember: • Don’t pay for the FAFSA or scholarship info. • Read everything sent to you by the FAO. • Turn in requested documentation in a timely manner. • Call or email if you have questions. • Finalize everything in June/early July. • Involve your student!!
We’ve Made a Decision.
Now What?
• (Student) Handle the FERPA release!
• (Student/Parent/Advocate) Talk to the
Financial Aid Office
• (Student) Accept the award offer at the
chosen school; decline all others
– NOTE: you do not need to accept all
the loans offered to you; only
borrow what you need
• (Student) Complete remaining
requirements such as Master Promissory
Note (MPN) and Entrance Loan
Counseling at studentloans.gov
• (Student/Parent/Advocate) Watch the
mail and/or student’s e-mail for the bill
from the Bursar’s Office (Billing,
Cashier’s, Student Accounts, etc.)QUESTIONS
35You can also read
