Welcome to the Michigan High School CounselorVideo Conference November 14, 2006
Federal Update Rick Shipman Michigan State University November 14, 2006
What is Federal Financial Aid? • Grant Programs • Pell Grant • Supplemental Educational Opportunity Grant • Academic Competitiveness Grant • National Science and Math Access to Retain Talent (SMART) Grant • Work Program • Work-Study • Loan Programs • Perkins Loan • Stafford Loans • Federal Family Education Loan • Federal Direct Loans • PLUS Loans
How to Apply • Free Application for Federal Student Aid (FAFSA) • Paper application • Web-based application • (to file online parent & student need a Personal Identification Number or PIN)
PIN Web Site • PIN serves as electronic signature on ED documents, including electronic promissory notes. • PIN is used to gain access to ED systems, including: • Corrections on the Web • NSLDS • Direct Loan Origination • Direct Loan Servicing • Loan Consolidation.
Free Application for Federal Student Aid (FAFSA) • Initial step in the application process • Core document to apply for financial aid • Used to calculate an Expected Family Contribution (EFC) • Confirms certain eligibility requirements
Completing the FAFSA • Information requested Step 1: Student demographic information Step 2: Student financial information Step 3: Dependency status questions Step 4: Parent financial information Step 5: Independent student household information Step 6: List of schools to receive results Step 7: Signatures and certifications
Completing the FAFSA • More than 88% of FAFSAs are now filed online. • The FAFSA on the Web (FOTW) Worksheet has been redesigned to help filers with FOTW. • FOTW Worksheet is in the order that the questions appear on FOTW – the paper FAFSA is not.
Completing the FAFSA • FOTW Worksheets will be sent to schools to replace paper FAFSAs. • FOTW Worksheets will be in an 8 page booklet, just like FAFSAs. • FOTW Worksheets may not be used as FAFSAs! • If you need more forms, you can order them by calling 1-877-4EDSPUBS or online at http://www.fsapubs.org/.
How Is The Data Used? • In a statutory formula called the Federal Methodology • Looks at income, assets, and size of family to determine family’s ability to pay for education • Result is called the Expected Family Contribution (EFC)
Changes in FAFSA 2007-08 • More than 88% of FAFSAs are now filed online. • View a draft of the Worksheet on the Web at the URL below. www.ifap.ed.gov - Click on FAFSAs and Renewal FAFSAs link under Publications
FAFSA on the Web (FOTW) • Certification page will require students to agree not to disclose their PIN to anyone. • Parents with multiple children in college will be able to transfer their information to other children’s applications.
Demonstration Site for FOTW • Available in December 2006 • FAFSADEMO.TEST.ED.GOV • User Name: EDDEMO • Password: FAFSATEST
With Electronic Signatures • It is not necessary to print and sign a paper signature page if both the dependent student and parent(s) have a federal PIN. • The PINs are entered as part of the FOTW completion process and replace a pen and paper signature form.
Without Electronic Signatures • If both the dependent student and parent(s) do not have PINs, they must provide a signature page for the signatures and mail it. • It is permissible for the student or parent applicant to sign electronically with a PIN and the other to submit a paper signature form. • Signature page must be received within 14 days. • If signature page is not received by the federal government within 14 days, the applicant receives a signature page in the mail which must be must be signed and resubmitted.
Student Aid Report (SAR) • The SAR summarizes the data provided on the FAFSA as well as the federal calculations and is sent to the applicant. • Paper SARs will be on yellow paper. • Only last 4 digits of parent’s SSN will display on paper and electronic SARs. • Displays official EFC. • Submit to college only if requested. • Paper application without student’s e-mail address will result in paper Student Aid Report (SAR). • Paper application with student’s e-mail address will result in e-mail with Web site for “SAR on the Web.”
Corrections on the Web • Available regardless if original application was paper or electronic. • Student’s PIN required to access. • Parents must have PIN to correct parent information. • Pop-up message will appear when student tries to correct transaction already corrected by a school.
Avoid Errors! • Errors on the FAFSA or supplemental forms may delay application processing and result in the loss of financial aid funds. • Encourage students/parents to read the instructions and complete the forms carefully!
Independent Student Criteria • Born before January 1, 1984 • Working on a master’s or doctorate program • Married • Has child(ren)/dependents for whom he/she provides more than half the support • Both parents are deceased • Is/was a ward of the court until age 18 • Veteran of the U.S. Armed Forces or currently serving on Active duty in the US Armed Forces for purposes other than training • Most high school students will not be independent but, in extraordinary circumstances, the college aid administrator can override dependency. Contact the college aid office for help.
Types of Federal Aid – Grants • FAFSA required for all federal grants • Pell Grant Program • Undergraduates pursuing first baccalaureate degree • $400 to $4,050 per year currently • Supplemental Educational Opportunity Grant • Undergraduates pursuing first baccalaureate degree • Awarded first to students with exceptional financial need (i.e., students with the lowest EFCs at that school) • Priority to Federal Pell Grant recipients • $100 to $4,000 per year
Types of Federal Aid – Grants • Academic Competitiveness Grant • Began 7/1/06 • For Pell eligible US Citizens • A 3.0 GPA required beyond the freshman level • ACG is for freshmen and sophomores who completed a rigorous HS curriculum • Freshmen get $750; sophomores $1,300
Types of Federal Aid – Grants • Academic Competitiveness Grant • ED provides 5 categories of rigorous curricula • State established advanced or honors program • State Scholars Initiative • A curriculum similar to State Scholars • Completion of at least 2 AP courses with 3 scores or 2 IB courses with 4 scores • State designated program • State Scholars Initiative • 4 Years of English • 3 Years of Math • 3 Years of Science • 3 Years of Social Studies • 1 Year of Foreign Language • Michigan’s newly adopted Michigan Merit Standard • Next slide
Types of Federal Aid – Grants • SMART Grant • Began 7/1/06 • For Pell eligible US Citizens • 3.0 GPA required beyond the freshman level • For junior/senior students in specific majors • Computer Science, Engineering, Foreign Language, Life Sciences, Mathematics, Physical Sciences, Technology • $4,000 per year
Types of Federal Aid – Loans • Federal Perkins Loan • Undergraduate or graduate students • Must file FAFSA to be eligible • Priority to those with exceptional need • Interest rate is 5% • Nine-month grace period • Deferment and cancellation provisions available • Up to $4,000 per year for undergraduates $6,000 for graduates
Types of Federal Aid – Loans • Federal Stafford Loan • Must file FAFSA to be eligible • Annual loan limits (Current/after June ‘07) • $2,625/$3,500 for Freshmen • $3,500/$4,500 for Sophomores • $5,500 for Juniors and Seniors • $18,500/$20,500 (each year of graduate/professional study) • Subsidized: must demonstrate “need” • Unsubsidized: “need” is not a consideration • 6.8% fixed interest rate as of 7/1/2006 - 10 year repayment
Types of Federal Aid – Loans • Federal Grad PLUS • Required to file FAFSA • Creditworthiness determined by lender • Cosigner may be required • Loan limit is cost of education minus other aid • Repayment begins approximately 60 days after loan fully disbursed • In-school deferments readily available • 7.9%/8.5% fixed interest - 10 year repayment
Types of Federal Aid – Loans • Federal Parent PLUS • Not required to file FAFSA • Creditworthiness determined by lender • Cosigner may be required • Loan limit is cost of education minus other aid • Repayment begins approximately 60 days after funds are fully disbursed • 7.9%/8.5% fixed interest - 10 year repayment
Types of Federal Aid – Work • Federal Work-Study • Employment during school • Reimburses employer for a percentage of student earnings • Non-profit jobs only (on or off campus) • Income is taxable (state and federal) • Excluded from student’s total income on next year’s FAFSA • Program varies from school to school
Supplemental Forms • Institutional application • Stafford loan application • Parent/Grad PLUS Loan application • CSS Financial Aid PROFILE (school aid)
Counselor Resources • National Association of Student Financial Aid Administrators • WWW.NASFAA.ORG • Counseling Tools • Student Aid on the Web • WWW.STUDENTAID.ED.GOV • FSA for Counselors • http://ifap.ed.gov/FSACounselors/clcf/main.html • Online information for middle school, high school and TRIO counselors
More Resources • The Financial Aid Information Page • WWW.FINAID.ORG • Accurate and Comprehensive Information • Links to Free Scholarship Searches • Scholarship Scam Alerts • Financial Aid Consultant Guide • Loan Calculators • Strategies--Maximizing Aid Eligibility • Answers to Frequently Asked Questions
A national award-winning non-profit Bryan Taylor November 14, 2006
3 Ways to Make Your Job Easier • College Goal Sunday • EduGuides • Professional Development
1. College Goal Sunday • Do the FAFSA • February 11, 2007 • 27 regions • 300 volunteers • $4,000 scholarships • Flyers & posters shipped in December
1. College Goal Sunday To Do • Place a link • Hand out flyers • Promote the event
2. EduGuides “My daughter was scheduling her classes when I came across your EduGuide. A teacher had recommended it. I didn’t know there was so much info on what to do. From a parent’s perspective this is exactly what you need. I’ll be following up with my daughter’s counselor to talk about what we need to do differently.” Laurie Curtis, Caro mother
Expert Advice at Every Step Preschool Elementary Middle High College • With official MDE guidance info • More than one million annual copies
2. EduGuides To Do • Distribute • Ask district if you don’t receive copies • Order College EduGuide • Link
3. Professional Development “This session touched me. My students will benefit from all Bryan talked about.” Kris Hubbard,Teacher
3. Professional Development • Parents and teachers • Focused on overcoming family problems to boost achievement on new merit curriculum • More than 3-in-4 rate as better than most PD • More than 4-in-5 leave with specific action steps • Matching grants • Call for info
3 Ways to Make Your Job Easier • College Goal Sunday • EduGuides • Professional Development
GEAR UP/ COLLEGE DAY PROGRAMMichigan Dept. of Labor and Economic Growth YEAR1 July 21, 2006 – July 20, 2007 Funded by: U. S. Department of Education and State of Michigan Sheree Price November 14, 2006
Grant Award Notification • 18 million dollars for 6 years • 9 million dedicated to scholarships • 9 million dedicated to early intervention and administrative costs • Continued annual funding contingent upon the project’s performance during the year • Submit an annual Work Plan inclusive of benchmarks, activities and time line • Submit an annual Budget for the program