Financial Aid Presentation

1. Financial Aid Presentation Genesee Community College 1 College Road Batavia, New York 14020 (585) 345-6900 Joseph A. Bailey Assistant Dean for Enrollment services & Director of Financial Aid www.genesee.edu/finaid

2. And then a miracle happens… The Financial Aid process Courtesy of My College Calendar

3. Topics We Will Discuss • What is financial aid? • Cost of attendance (COA) • Expected family contribution (EFC) • Financial need • Categories, types, and sources of financial aid • Free Application for Federal Student Aid (FAFSA) • Special circumstances

4. What is Financial Aid? Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses.

5. Goals For Financial Aid • To assist students in paying for their educational investment. • To evaluate the family’s financial ability to pay for educational costs. • To distribute limited resources in an equitable manner.

6. What is Cost of Attendance (COA)? • Direct costs • Indirect costs • Direct and indirect cost combined into the cost of attendance • Varies widely from college to college

7. Cost of Attendance • Tuition and fees • Room and board • Books and supplies • Transportation • Personal expenses • Loan fees

8. Principles of Needs Analysis • To the extent they are able, parents have primary responsibility to pay for their dependent children’s education • Students also have a responsibility to contribute to their educational costs • Families should be evaluated in their present financial condition • A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect its ability to pay

9. Federal Methodology Federal methodology is the formula created by Congress to determine the Federal Expected Family Contribution (EFC).

10. What is the Expected Family Contribution (EFC) • Amount family can reasonably be expected to contribute • Calculated using data from a federal application and federal formula • Stays the same regardless of college • Two components • Parent Contribution • Student Contribution

11. Definition of Financial Eligibility Cost of Attendance (COA) -Expected Family Contribution (EFC) Financial Eligibility

12. Price vs. Cost Fancy University • Cost $56,350 • EFC $2,375 • Eligibility $53,975 Happy College • Cost $15,985 • EFC $2,375 • Eligibility $13,610

13. Applying for financial aid • Free Application for Federal Student Aid (FAFSA) • State Specific Applications-New York – TAP • College Scholarship Service (CSS) Profile Form • Institutional Applications

14. Who files the applications? • The student – the applications are always filed from the student’s perspective • The custodial parentand the custodial parent’s spouse • If the custodial parent is remarried (not to the student’s biological/adoptive parent) then the spouse must provide their information on the FAFSA. • As of 2014-2015 students must provide information for biological parents who are unmarried, but living together

16. Web site: www.fafsa.gov • 2016-17 FAFSA on the Web available starting January 1, 2016 • Good reasons to file electronically: • Built in edits to prevent errors • Skip-logic allows student and/or parent to skip unnecessary questions • Option to use Internal Revenue Service (IRS) Data Retrieval Tool to import tax data

17. Good reasons to file electronically: • More timely submission of original application and any necessary corrections • More detailed instructions and “help” for common questions • Ability to check application status online • Simplified application process in the future

18. IRS Data Retrieval • While completing FAFSA online, applicant may submit real-time request to IRS for tax data • within 3 weeks of e-filing • within 8 weeks if filed by mail • Available early February 2016 • IRS will authenticate taxpayer’s identity • If match found, IRS sends real-time results to applicant in new pop up window • Applicant chooses whether or not to transfer IRS data to FAFSA • Reduces documents requested by financial aid office

19. IRS Data Retrieval • Some will be unable to use IRS DRT • Examples include: • Filed an amended tax return • No Social Security Number (SSN) was entered • Student or parent married, but filed separately

20. Federal Student Aid ID (FSAID) • Web site: https://fsaid.ed.gov/npas/index.htm • Sign FAFSA electronically • Can request before January 1, 2016 • Only the owner should create a FSA ID • Not required, but speeds processing • May be used by students and parents throughout aid process, including subsequent school years

21. Federal Student Aid ID (FSAID)

22. Definition of an independent student • Be born before January 1, 1993 • Married • Graduate or professional student • Currently serving on active duty in U.S. Armed Forces • Veteran of the U.S. Armed Forces • Have legal dependents (not spouse) who live with and receive more than half of support from student • Have children who receive more than half of their support from student

23. Definition of an Independent student • Age 13+ both parents were deceased, you were in foster care or are dependent/ward of the court • An emancipated minor (determined by court in state of legal residence) • In legal guardianship (determined by court in state of legal residence) • Homeless or risk of being homeless • Determined to be independent by the financial aid administrator

24. Income information to have available when filing • 2015 Federal income tax • 2014 if using estimates • All 2015 W-2’s • Balance of cash/savings/checking accounts • Net worth of investments (not primary residence!) • Net worth of business and/or farm investments • Child support paid/received • Veteran’s benefits

25. Frequent FAFSA Errors • Parent and student Social Security Numbers • Divorced/remarried parental information • Income earned by parents/stepparents • Untaxed income • U.S. income taxes paid • Household size • Number of household members in college • Real estate and investment net worth

26. FAFSA Processing Results • CPS sends Institutional Information Record (ISIR) to colleges listed on FAFSA approximately 10 to 14 days after FAFS is submitted • CPS notifies student of processing results by: • EMail • Mail • Student with FSA ID can view Student Aid Report (SAR) online at www.fafsa.gov • Corrections may be made at www.fafsa.gov

27. Verification • Collect documentation from student to compare with data on FAFSA • If student/parent did not use IRS match, student/parent would have to submit IRS Tax Transcript. (Copies of tax returns no longer acceptable!) • Student/parent must request IRS Tax Transcript from IRS either online www.irs.gov (tax filers can now set up accounts) or by phone (800) 908-9946 • Federal W-2 forms may be required • Household size will be verified • Untaxed income (including food stamps) will be verified • Keep everything that you get from employers, social services, etc. with respect to any type of income or support

28. Types of Financial Aid GRANTS AND SCHOLARSHIPS: • Federal Pell Grant • Federal Supplemental Educational Opportunity Grant (SEOG) • Federal TEACH Grants • State Programs – TAP • University/College Scholarships and grants • External Sources (private scholarships, employee benefits, etc.)

29. Pell Grant • Annual minimum and maximum vary • $626 minimum for 2015-16 • $5,775 maximum for 2015-16 • Maximum of 12 semesters • Only for undergraduate students without bachelor’s degree • Based on financial need

30. Federal Supplemental Educational Opportunity Grant (SEOG) • $100 annual minimum • $4,000 annual maximum • Amounts vary based on available funding at each college/university • Only for undergraduate students without bachelor’s degree • Based on financial need

31. Teacher Education Assistance for College and Higher Education Grant (TEACH) • $4,000 annual maximum ($16,000 undergraduate aggregate limit) • 3.25 GPA or qualifying score on admissions test • Agree to teach full time for at least 4 years within 8 years of graduation at a school serving a high percentage of low income students • Agree to teach a specific subject • Repayment required if student does not fulfill teaching requirement. The grant funds turn into the Federal Direct Unsubsidized Stafford Loan

33. New York State Tuition Assistance Program (TAP) • Annual minimum and maximum vary based on the tuition cost of college/university • Maximum amount at SUNY schools can be 100% of tuition cost • Maximum amount at private schools can be up to $5,165 • Maximum of 8 semesters (6 of which may be at a community college) • Must be enrolled for full time (at least 12 credits) study • Must meet income requirements

35. Types of Financial Aid Loans • Federal Direct Stafford Loans (Subsidized and Unsubsidized) • Federal Perkins Loans • Federal Direct Parent Loan for Undergraduate Students (PLUS) • Private/Alternative Loans

36. Stafford Loans • Subsidized: Must demonstrate “need” • Unsubsidized: Not based on “need” • Base annual loan limits (combined subsidized and unsubsidized): $5,500Freshman $6,500 Sophomore $7,500 Junior and Senior

37. Stafford Loans • Subsidized loan has interest rate of 4.29% • Unsubsidized loan has interest rate of 4.29% • Up to 1.068% loan fee

38. Stafford Loans • Repayment begins after 6-month grace period • Maximum repayment period between 10 and 30 years depending on repayment plan chosen • Deferment and cancellation provisions available

39. Federal Perkins Loans • Eligible students: • Undergraduate, graduate, and professional students • Priority to students who show “exceptional need,” as defined by school • Loan amount varies • Maximum annual loan amounts: • $5,500—undergraduatestudents

40. Federal Perkins Loans • Interest rate: 5% • 9-month grace period • Repayment period may be up to 10 years • Deferment and cancellation provisions available • New Perkins loans not available after October 1, 2015 unless funding is put back into federal budget! • Contact your congressional representative!

41. PLUS (Parent Loan for Undergraduate Students) • Loan program for parents of dependent undergraduate students • Annual loan limit: COA minus other aid • Fixed interest rate of 6.84% • Fixed 4.272% loan fee based on principal amount of each loan • Repayment begins within 60 days after loan fully disbursed for parent borrowers

42. Private Loans • Typically higher interest rates than federal loans • Creditworthy and/or require a co-borrower or co-signer • Repayment options not as flexible as the federal loan programs

43. Types of Financial Aid • Federal Work Study • Non-Work Study • Alternative Programs (Internships, Co-Ops, etc.)

44. Scholarships • Institutional • Local and National • Keep these things in mind when applying for scholarships: • Focus on you, the student • Understand where the scholarship is coming from • Never give your bank account or credit card information out!

45. Reviewing Awards Happy College • Eligibility $13,610 • Pell Grant $3,425 • SEOG Grant $500 • TAP Grant $3,000 • Stafford Loan $5,500 • Perkins Loan $500 • Work Study $685 Total: $13,610 Fancy University • Eligibility $53,975 • Pell Grant $3,425 • SEOG Grant $1,000 • TAP Grant $5,165 • Stafford Loan $5,500 • Perkins Loan $2,500 • Work Study $2,500 • Fancy Grant $33,885 Total: $53,975

46. Reviewing Awards Bentley Burns College • Eligibility $24,500 • Pell Grant $3,425 • SEOG Grant $500 • TAP Grant $5,165 • Stafford Loan $5,500 • Perkins Loan $1,500 • Work Study $1,500 • Sunny Grant $3,000 • PLUS Loan $3,910 Total: $24,500 Lincoln Brutus University • Eligibility $34,500 • Pell Grant $3,425 • SEOG Grant $1,000 • TAP Grant $5,165 • Stafford Loan $2,000 • Perkins Loan $1,000 • Work Study $1,000 • Snobby Grant $20,910 Total: $34,500

47. Good Questions to Ask • What are the financial aid application procedures and deadlines? Which forms are needed? • Does the school meet full eligibility? • What is the process for appealing if my circumstances change? • Is institutional aid based on merit or need? • What happens next year?

48. What Happens Next Year? • For the 2017-18 year, the FAFSA will be available October 1, 2016 (Not January 1, 2017) • The 2017-18 FAFSA will require student and parent income from 2015 • Yes, that is the same income information you put on the 2016-17 FAFSA! • This is a big change of when you need to file the FAFSA! • Don’t Wait until January! • Check with your school to determine when they want the FAFSA

49. If you remember nothing else….. • The first “F” in FAFSA means FREE! • Apply for Financial Aid early! • If you don’t know, ask!

50. Resources of Information Internet • U.S. Department of Education: www.ed.gov • FSAID: https://fsaid.ed.gov/forceTamOps.htm • FAFSA On Line: www.fafsa.gov • Federal Direct Student Loans: www.studentloans.gov • College Board Online: www.collegeboard.com • New York State Higher Education Services Corporation: www.hesc.ny.gov • Internal Revenue Service: www.irs.gov • Genesee Community College: www.genesee.edu • Fastweb Scholarship Search (free service): www.fastweb.com