Applying for Financial Aid 2014-2015 Academic Year

1. Applying for Financial Aid2014-2015 Academic Year Elaine Solinga Financial Aid Services Telephone: 860-439-2058 E-Mail: finaid@conncoll.edu

2. What you will learn: • What financial aid is • Sources of financial aid • When and how to apply • How to pay the bill

3. Helpful Advice • Learn the college’s financial aid application requirements and deadline date. • Use the Net Price Calculator available on each college’s web site.

5. More Advice www.finaid.com

6. Studentaid.gov

7. How Much Financial Aid Will Be Offered? • Dependent on a family’s ability to pay • Dependent on the funding available from the federal and state governments and the college. • Were the financial aid applications and supporting documentation submitted by the deadline date?

8. Definition of Financial Need Cost of Attendance LESS Expected family contribution (EFC) LESS Other financial assistance EQUALS Financial need

9. Comparison of Need by Cost(Assumes full-time enrollment)

10. Meeting the Full Need and Gapping

11. Cost of Attendance • Tuition and Fees • Room and Board • Books and Supplies • Transportation • Miscellaneous and Personal Expenses (purchase of a computer)

12. Family Contribution Components • Parent(s)’ 2013 income • Student’s 2013 income • Value of parent’s assets • Value of student’s assets • Number of household members • Number of dependents attending college at least half-time

13. Eligibility Assessed Using Federal Methodology • Based on information reported on the FAFSA (Free Application for Federal Student Aid, 2014-2015) • Formula determined by Congress that is used to determine eligibility for federal and most state funds • No information required from the non-custodial parent • Custodial parent and stepparent financial information is included • If student’s parents live together, regardless of marital status or gender, financial information must be reported. • Home value and debt and value of retirement accounts are excluded • Parent contribution divided by the # of dependents attending college at least half-time

14. Eligibility Assessed Using Institutional Methodology • Based on information provided on the CSS Profile or a custom institutional application • Used by schools to award their own funds • Home equity might be added in • Information from the non-custodial parent is required • Tax losses may be added back • Depreciation associated with a business or investment property may be added back • Parent contribution might not be divided equally • No allowance for sibling enrolled in graduate school • Minimum student contribution

15. Student Eligibility Requirements • U.S. Citizen or eligible non-citizen • If male and age 18 must register for Selective Service; • Have a valid social security number; • Must be enrolled as a regular student in an eligible degree or certificate program; • Must have a high school diploma or an equivalent; • While enrolled in college, must make satisfactory academic progress. • Must have resolved any drug conviction issue.

16. Forms Required

17. FAFSA on the Web Homepagewww.fafsa.gov

18. FAFSAFree Application for Federal Student Aid, 2014-2015 • Can’t file prior to 01/01/2014 • Required by all schools • Used to determine eligibility for federal/state need based aid • Student and one parent should apply for a pin # now to sign the FAFSA electronically

19. Federal Student Aid Personal Identification Number (FSA PIN) • Website: www.pin.ed.gov • Sign FAFSA electronically • Not required, but speeds processing • May be used by students and parents throughout aid process, including subsequent school years

20. Helpful Tips When Completing the FAFSA • Print out the FAFSA on the Web Worksheet (available January 1, 2014) • Have your 2013 federal tax return and W2 statements in front of you or prepare a draft 2013 federal tax return. • You can also use your 2012 federal tax return if income will be similar to 2013. • It is okay to estimatein order to meet early deadline dates required by colleges.

21. Helpful Tips When Completing the FAFSA • Must report as income: • Adjusted Gross Income as listed on your tax return • Wages as listed on your W2 or business income applicable to each parent. • Taxes paid according to the tax table, not what was withheld.

22. Helpful Tips When Completing the FAFSA • Assets not to report: • Value of your home • Principal value of retirement plans (pension funds, annuities, non-education IRAS, Keogh plans)

24. Review of Tax Return

26. Review of Tax Return

27. Helpful Tips When Completing the FAFSA • When reporting assets, report the value as of the date the FAFSA is completed. • Cash, savings, checking • Investment property (market value less debt) • Stocks, bonds, money market funds • CD’s, mutual funds, stock options, trusts • Coverdell savings accounts, college savings plans • Business (market value less debt) • Investment farm value (market value less debt)

28. What is the Federal Definition of a Parent? • If parents are divorced or separated, answer the questions about the parent the student lived with more during the past 12 months. • If the student did not live with one parent more than the other, give answers about the parent who provided more financial support during the past 12 months. • If parents live together, regardless of the marital status or gender, financial information must be reported for both parents

29. What is the Federal Definition of a Parent? • If the student’s parent has remarried, information about the stepparent must be included. • If the student’s parent is widowed or single, answer the questions about that parent. • The following people are not the student’s parents unless they have adopted the student: grandparents, foster parents, legal guardians, older brothers or sisters, and uncles or aunts.

30. What if parent information is not available? • Student has no contact with the parent(s) and does not know where they are (and the student has not been adopted by someone else); or • Student has left home due to an abusive situation. • Must gather third party documentation to verify your living situation: attorney, court officer, social worker • Submit that third party documentation to the college that you will most likely attend.

31. How to Sign the FAFSA

32. Making Corrections to the FAFSA • Corrections can be made after the FAFSA has been submitted and processed. • Can add a college • If you have submitted your IRS tax return, you can provide a PIN to link the IRS data to the FAFSA. Highly recommended!!!!!

33. FAFSA Processing Results • CPS notifies student of FAFSA processing results by: • Email notification containing a direct link to student’s online SAR if student’s email was provided on paper or electronic FAFSA • Student with PIN may view SAR online at www.fafsa.gov

34. FAFSA Processing Results • Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA is submitted • College reviews ISIR • May request additional documentation

35. IRS Data Retrieval Tool • Available early February 2014 for 2014–15 processing cycle • Participation is voluntary • Reduces documents requested by financial aid office

36. IRS Data Retrieval Tool • While completing FOTW, applicant may submit real-time request to IRS for tax data • IRS will authenticate taxpayer’s identity • If match found, IRS sends real-time results to applicant in new browser window • Applicant chooses whether or not to transfer data to FOTW

37. IRS Data Retrieval Tool • Some will be unable to use IRS DRT • Examples include: • Filed an amended tax return • No SSN was entered • Student or parent married but filed separately

38. IRS Data Retrieval Tool

39. IRS Transcript • If you are unable to successfully retrieve the IRS data into the FAFSA, then you might be required to provide an official IRS transcript. You can request one from here: www.irs.gov • Available two weeks after an electronic submission • Available 6-8 weeks after a paper submission

40. http://student.collegeboard.org/css-financial-aid-profile

41. CSS/Financial Aid Profile • https://profileonline.collegeboard.com/ • Not required by all schools • $25 for the initial application and $16 for each additional college • Non-Custodial Parent’s Form = $25 • Forms used to determine eligibility for need-based institutional grants.

42. CSS Profile Tips In addition to the assets reported on the FAFSA, you will be required to report: • Value of your home, purchase price, purchase date and current debt • Value of your retirement accounts

43. CSS Profile Tips • Once the Profile has been submitted, you will not be able to make corrections. You will need to print out a hard copy, make the corrections, send a copy to each school that requires the Profile. • Many colleges participate in IDOC which is a document imaging service offered by the College Board. You send your tax return to them and they will scan it and make it available electronically to the colleges.

44. Remember! • Grants/Scholarshipsdo not have to be repaid (unless a student withdraws during a term). Grants are typically awarded based on need and scholarships are typically awarded based on merit or athletic ability. • Student loansmust be repaid • Federal Work Studyprovides income, which does not have to be repaid, from a part-time job

45. Sources of Need Based Aid Federal Grants(Funding for 2014-2015 has not yet been determined) • Federal Pell Grant – $5,645 • Federal SEOG Grant – up to $4,000 • Federal TEACH Grant – up to $4,000 Studentaid.gov for detailed information about these programs.

46. Sources of Need Based State Grant Aid ctdhe.org State grants for CT residents attending a college in CT • Governor’s Scholarship Program- a student can only receive funding from one of these funding sources: • Need/merit based • FAFSA required • Deadline date- February 15 • Award amount = $3,500-$4,500 based on expected family contribution less than $11,000 • Class rank 20% or better • SAT of 1800 or ACT of 27

47. Sources of Need Based State Grant Aidctdhe.org • Governor’s Scholarship Program 2. Need based • FAFSA required • Deadline date set by the college • Award range = $2,000 to $3,000 based on an expected family contribution less than $11,000

48. Sources of Need Based Aid – Federal Loans studentaid.gov • Federal Perkin Loans – up to $5,500 • Interest rate is 5% fixed • Cancellation and deferment benefits • Federal Direct Loan – • 1st year = up to $5,500 ($3,500 subsidized) • 2nd year = up to $6,500 ($4,500 subsidized) • 3rd-5th year = up to $7,500 ($5,500 subsidized) • Current interest rates (2013-2014) • 3.86% for subsidized loans • 3.86% for unsubsidized loans • Fee = 1.051% (2013-2014) • Cancellation and deferment benefits

49. Sources of Need Based Aid – Student Employment Federal Work Study - • no limit but average range is $1,200 to $2,000 • Students work approximately 8 – 10 hours per week • Most paychecks are issued via direct deposit • Employment can be on or off campus • Student must provide proof of eligible citizenship status to the college • Unexpired passport (original) • Social Security Card (original) • Photo ID (driver’s license or college issued identity card)

50. Sources of Institutional Grants and Outside Resources • Institutional Grants/Scholarships are provided by the college either from tuition revenue and/or endowed funds and annual gifts. • Outside Resources – • Employee Tuition Benefit • National Merit, Rotary, Garden Club, etc. • High school guidance office • www.finaid.org