Welcome to King’s College Financial Aid Night

1. Welcome toKing’s College Financial Aid Night January09, 2013

2. Financial Aid Financial Aid is assistance to help students fund their education. It can take the form of: • Scholarships • Grants • Loans • Employment

3. Gift Aid vs. Self-Help Aid GIFT AID • Grant/Scholarship = Aid awarded that does not have to be repaid. SELF-HELP AID • Loans = Borrowed money that has to be repaid over a period of time, often after the student completes their degree. Available to students and parents • Work-study = Money students earn by working on campus.

4. Merit versus Need-Based Merit-Based Aid (Need blind) • Academic record • Skills or talents • Involvement - community service; extracurricular activities Need-Based Aid = awarded on the basis of financial need. Re-evaluated each year as financial situations may change.

5. Filing the FAFSA • Available in English and Spanish • Complete as soon as possible after January 1, 2013 and by college deadlines. Must be filed by May 1, 2013 for PHEAA

6. Getting Ready • Before starting the FAFSA, gather: (student and parent) • Social Security cards • 2012 federal income tax form (even if not completed) and W2 forms • Records of untaxed income • Current bank statements (as of filing date) • Business, farm and other real estate records • Records of stocks, bonds and other investments (including 529 accounts) • Asset information may not be required

7. Student Financial Aid (SFA) PIN • Web site: www.pin.ed.gov • Pin # used to sign FAFSA electronically • May be used by students and parents throughout aid process, including subsequent school years • Link to Pin website is also on FAFSA website

8. PIN Usage If filing FAFSA online, • Parent & student sign electronically. Must first apply for PIN at http://www.fafsa.gov • PIN can be created or will be emailed to student for immediate use. • PIN serves as e-signature Additional PIN uses: • submit info and make corrections online. • sign Promissory Notes for Direct Loans. • Access Financial Aid history on NLSDS

9. FAFSA-Filing Tips • Based on prior calendar year tax return • May use estimated income and taxes • May submit prior to college acceptance • PA residents must file by May 1 for state grant consideration; state will follow up with student (via email)

11. FAFSA on the Web • Web site: www.fafsa.gov. • 2013-2014 FAFSA on the Web available as of January 1, 2013

12. FAFSA on the Web Good reasons to file electronically: • Built-in edits to prevent costly errors • Skip-logic allows student and/or parent to skip unnecessary questions • More timely submission of original application and any necessary corrections • More detailed instructions and “help” for common questions • Ability to check application status on-line • Simplified renewal application process

13. FAFSA on the Web Good reasons to file electronically: • Can complete in stages and save and submit when complete • Incomplete applications saved and not submitted will be sent emails after 7 days and again in 14 days if still not submitted • Emails sent to student and parent when both provide email addresses

14. FAFSA on the Web • The IRS Data Retrieval continues in 2013-2014 beginning February 3, 2013. • Also available in Corrections • Electronically filed tax return information will be available from the IRS in 2-3 weeks, data from paper tax returns will be available in 6-8 weeks.

15. FAFSA on the WEB General student information • Name • State of legal residence • Social Security Number • Citizenship

16. FOTW Student demographic information • Marital status • Selective Service Registration • Drug Conviction Question • Parents’ Educational Background

17. FOTW Student Income and Assets • Adjusted Gross Income/Earned wages • Untaxed Income • Assets

18. FOTW Student’s dependency status: • If all “No” responses, student is dependent • If “Yes” to any question, student is independent • Under limited special circumstances, student may submit electronic FAFSA without parental data. If there is a special circumstance, student will be instructed during online application process on how to proceed; documentation will be needed by Financial Aid • Examples of special circumstances: parents incarcerated, left home due to abusive environment, unable to locate and contact parents

19. FOTW Data for parents of dependent students • Parents’ name, social security number, date of birth

20. FOTW Data for parents of dependent students: • Are either parents a dislocated worker? • Job loss, laid off, receiving unemployment, unlikely to return to previous occupation or • Displaced homemaker – person who previously provided unpaid services to family & is no longer supported by spouse, is unemployed & is having trouble finding or upgrading employment. • Documentation will be needed by Financial Aid Office

21. FOTW Financial data for parents of dependent students: • Tax filing status and return type already completed, will file, will not file 1040, 1040A/EZ, foreign tax return wages, adjusted gross income, federal tax paid

22. FOTW Financial data for parents of dependent students: • Adjusted Gross Income (AGI) for 2012 • Income earned from work

23. FOTW Financial data for parents of dependent students: • 2012 Additional Financial Information • Education credits on tax return, • child support paid/received • payment to tax deferred pension, • IRA deductions

24. FOTW • Cash, savings, and checking • Net worth of investments: • Net worth equals current value minus debt • Don’t include primary home, life insurance, retirement plans • Do include real estate, money market, mutual funds, CD’s, stocks, education savings plans (even if owned by student, parent reports in parent section) • Review instructions for all items to be reported

25. FOTW Asset data for parents of dependent students: • Net worth of business and investment farms: • Net worth equals current value minus debt • Don’t include farm if you live on & operate • Don’t include value of small business if parent owns & controls & has 100 or fewer full-time or full-time equivalent employees

26. School Information • List a Pennsylvania school with the highest cost first; first college used by PHEAA Grant to determine state grant • If you are applying to more than six schools, wait for the processed Student Aid Report (SAR) and add additional schools via the Web Strategies for Listing Colleges

27. Signatures • Required • Student • One parent (dependent students) • Format • Electronic using PIN • Signature page • Paper FAFSA

28. Frequent FAFSA Errors • Social Security Numbers • Divorced/remarried parental information • Income earned by parents/stepparents • Untaxed income • U.S. income taxes paid * • Real estate and investment net worth • Missing signatures • Parent income data in student section

29. Making Corrections If necessary, corrections to FAFSA data may be made by: • Using FAFSA on the Web student and parent PIN required • Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or

30. FAFSA Processing Results • Review data for accuracy • Update estimated income information when actual figures are available using the IRS data retrieval tool.

31. FAFSA Processing Results • CPS notifies student of FAFSA processing results by: • E-mail notification containing a direct link to student’s on-line SAR if student’s e-mail was provided on paper or electronic FAFSA • Student with PIN can view SAR on-line at www.fafsa.gov. • Separate electronic record sent to colleges 10 - 14 days after filed; record also sent to state

32. FAFSA Processing Results • Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s e-mail address was not provided • SAR Information Acknowledgement will be mailed if filed electronically via FAFSA on the Web and student’s e-mail address was not provided

33. EFC-Expected Family Contribution Once the FAFSA is processed the result is the “Expected Family Contribution” or the EFC. The EFC is determined by a federal formula and is an index used by the college , federal, and state government to determine need based aid eligibility. The EFC is not equivalent to out-of-pocket costs.

34. EFC-Expected Family Contribution • The EFC stays same regardless of college • The EFC has two components: • Parent contribution • Student contribution

35. EFC – Calculations Primary Factors: • Dependency Status • Taxable Income: AGI (wages earned + interest dividends + other taxable income) • Untaxed income & benefits • Number in family • Number of dependent children in college • Assets

36. Cost of Attendance Includes: • Tuition • Fees • Room and Board • Books and Supplies • Personal Expenses • Transportation • Loan Fees

37. Cost of Attendance • Will vary by college • Will vary by housing status (commuter vs. resident)

38. Financial Need Cost of Attendance (variable) -Expected Family Contribution Financial Need (variable)

39. Need Varies Based on Cost

40. Sources of Aid • Federal • State • College Aid • Outside Organizations • Examples: civic organizations, parents’ employers, high schools, churches, etc.

41. Federal Pell Grant • Federal Pell Grant (need-based): • $5,500 max/year for 2013-2014 year • Must have demonstrated exceptional financial need • Expected Family Contribution (EFC) of $4,995 or less to qualify in 2012-13 2013-14 EFC not available yet • Iraq/Afghanistan award

42. Federal SEOG Grant Federal Supplemental Educational Opportunity Grant (FSEOG): A “campus-based” program; funding is limited • Annual awards of $500 to $1,000 per year (King’s College) • Must have demonstrated exceptional financial need • Priority to Federal Pell Grant recipients • Undergraduates pursuing 1st bachelor’s degree

43. Federal Work Study (FWS) • A “campus based” program; funding is limited • Employment for full time undergraduate • On or off-campus • Students paid at least minimum wage

44. Federal Perkins Loan • A “campus based” program; funding limited. • Must have demonstrated financial need • Interest subsidized while in-school and during grace and deferment periods; 5% interest rate during repayment • Repayment period up to 10 years

45. Federal Direct Loans • Student loans available under: • Federal Direct Stafford Loan Program • School determines loan eligibility and delivers loan proceeds to students • Available to all students, regardless of need • Repayment begins 6 months following graduation, withdrawal or less than half-time enrollment

46. Federal Direct Stafford Loan TYPES: Subsidized • Based on financial need • Government pays interest on loan while student is enrolled • 6.8 % interest rate effective 07/01/2012 Unsubsidized • Non-need-based • Interest paid either quarterly or capitalized upon repayment • Fixed interest rate of 6.8% AMOUNTS: Annual maximums capped by grade level • $3,500 subsidized/$2,000 unsubsidized - freshmen year • $4,500 subsidized/$2,000 unsubsidized - sophomore year • $5,500 subsidized/$2,000 unsubsidized - junior/senior year • Additional amounts for independent and graduate students • Loan fees of 1% of approved amount deducted prior to disbursement.

47. Federal Direct PLUS Loan • Credit-based federal loan for: • Parents of dependent undergraduate students • Graduate students • Interest rate capped at 8.5% • 4% origination fee • Repayment begins 60 days after 2nd disbursement (other repayment options available and forbearance; can defer repayment while student enrolled & can receive 6 month grace period) • Annual maximum is the “cost of attendance” minus other financial aid student is receiving • (If a parent is denied due to adverse credit history, a dependent student can access additional Unsubsidized Direct Stafford Loan)

48. Pennsylvania State Grant (PHEAA) Pennsylvania State Grant (for PA Residents): $4348 max/year for 2012-13 for students attending a PA school • Eligibility based on need and family’s unique circumstances and FAFSA information • Partial PHEAA Grant can transfer out-of-state to: ($600) • CT, DE, MA, OH, RI, VT, DC, WV (ME eliminated 13-14) • NJ, MD and NY -- $0 transfers there (some exceptions) • Student must file FAFSA by May 1 for upcoming fall term

49. Pennsylvania State Grant (PHEAA) • PHEAA State Grant info not available on FAFSA will be collected online via State Grant Form (SGF) on PHEAA’s Account Access system PHEAA State Grants • Upon FAFSA completion, PHEAA will email student directing them to Account Access via link in email • If student is dependent and parent provided email address, email will be sent to parent also • 1st time applicants have to provide 8-9 items • Student and parent will still have to print, sign and mail certification statements

50. Pennsylvania State Grant (PHEAA) • Changes to information should be made through FAFSA correction process; will update both FAFSA and PHEAA State Grant records • State Grant Form must be completed in order for state grant to be finalized and money credited to student’s account. • If additional information requested or student selected for PHEAA Validation, student must provide information directly to PHEAA