2012 High School Advisor Training Federal and State Update

1. 2012 High School Advisor TrainingFederal and State Update

2. About OASFAA & this presentation • OASFAA is a non-profit organization comprised of volunteer financial aid professionals. • OASFAA has provided the information today as a free service to access staff and high school counselors. • You have permission to copy and distribute these materials to your students and families. Charges may not be assessed for the material or for the information presented. Permission must be granted for other use of this information or these materials. Contact the OASFAA Outreach Chairperson(s) listed on the OASFAA website, or e-mail the OASFAA Outreach Committee at outreach@oasfaa.org

3. “The Guide” “The Guide” refers to The Guide to Federal Student aid. “The Guide” is available free to download from www.fsapubs.gov. A hard copy can also be requested for free from the same website.

4. But before we get started... • Parents and students have the primary responsibility for meeting college costs. • The distribution of financial aid resources should be based on the family’s ability to pay—not willingness to pay. • The assessment of a family’s ability to pay should be independent of the amount of financial aid available and cost of attending college.

5. Definition of “Need” Cost of Education (COA) - ExpectedFamily Contribution (EFC) =Need

6. Today’s Agenda • Deadline and FAFSA Overview • Program Integrity Updates • Update on Federal Aid Programs • Update on State Aid Programs • Review of Resources

7. Deadline and FAFSA Overview

8. Priority Deadlines • Priority deadlines are very real, and should be treated as such! • Schools may have a FAFSA deadline AND an admissions deadline-be aware of the difference.

9. Priority Deadlines • If a FAFSA priority deadline exists, it is best to use completed tax information via the IRS Data Match process. • If taxes have not been completed, use estimated income and tax information. • Make sure to update your FAFSA with IRS Data Retrieval once tax filing is complete.

10. Federal PIN Homepage • www.pin.ed.gov • Allows the student and parent to establish a federal pin number, which is needed to electronically sign the FAFSA.

11. FAFSA on the Web Homepage • www.fafsa.ed.gov • Simplified options • An updateable announcement section • Access to FAFSA PDF and paper FAFSA information

12. Need a little help completing the FAFSA? • “Help” icon • Live online chat • E-mail option • 800-4-FED-AID • College Goal Sunday • http://www.youtube.com/watch?v=m-Ex6RMAHE8&feature=plcp

13. Detailed College Info and Comparison • College’s website • School type • Tuition and fees • Net price average • Graduation rates • Retention rates • Transfer rates

14. Higher Education Reconciliation Act of 2005 (HERA)College Cost Reduction and Access Act of 2007 (CCRAA) • Increased income protection allowance for dependent students: • 11-12 $5,250 • 12-13 $6,000 • 13-14 $6,130 • Bust the myth! • A summer job won’t “count against me”!

15. Program Integrity Updates

16. Satisfactory Academic Progress (SAP) Policy • What is Satisfactory Academic Progress (SAP)? • SAP refers to ensuring that a student progresses toward the completion of a degree or certificate in a timely manner, as prescribed by The U.S. Department of Education (ED). • ED is now requiring schools to have a SAP policy separate from an institution’s academic standards policy.

17. Elements of SAP • ED states that every school’s SAP policy must include three (3) elements: • Grade Point Average, or GPA • 2.0 GPA or higher • Completion Percent • 67% cumulative completion percent • Maximum timeframe for degree/certificate completion • 150% of the program requirements.

18. Consequences of not meeting SAP elements • Financial Aid Warning • A student will have one semester of financial aid warning. Students will still be eligible for federal aid during the financial aid warning period, but must meet all SAP elements before the beginning of the upcoming semester. • Schools are not required to extend a warning period if they only review SAP annually.

19. Consequences of not meeting SAP elements • Financial Aid Suspension • A student who fails to meet all SAP elements by the end of the financial aid warning period will be subject to financial aid suspension. • The student loses all federal aid, and potentially lose state and private aid, as well. • Schools may have separate financial aid and academic policies. Both will apply to the students!

20. SAP: Appealing Financial Aid Suspension • Students who face financial aid suspension may have the ability to appeal the suspension. • Appeal avenues may vary from school to school;please check with the individual Financial Aid Office to review their specific appeals process.

21. Verification • What is verification? • Financial Aid Verification is the process of establishing the accuracy of the information submitted on the FAFSA.

22. Verification • Why was I selected for verification? • The Common Processor (a.k.a. The U.S. Department of Education) selects applicants for verification based on statistical analysis. • Every institution is required to verify at least 30% of their FAFSA filers.

23. Verification • How does a student complete the verification process? • The best thing to do is to read through any/all communication received from the institution, as it will guide you through the process.

24. Verification • Changes in the verification requirements. • High School completion status. • Identity/Statement of Educational Purpose. • Previous verification items are still in play!

25. Verification • What documents are acceptable? • Official High School Transcript to verify high school completion. • State issued photo ID for identity. • ED is to provide a form to complete for Statement of Educational Purpose.

26. Verification • What documents are acceptable for financial information? • IRS Data Retrieval Tool • http://www.youtube.com/watch?v=W47_YTRVYD4 • IRS Tax Transcript • http://youtube.com/watch?v=0wFNqs4Mqdg • www.irs.gov • 800-908-9946 • This can also be obtained in person if you have a local IRS office. • Students need the Tax Transcript, NOT the Account Transcript. • W2’s for non-tax filers.

27. Verification • Challenges in using IRS Data Retrieval Tool • It is only available 1-2 weeks after e-filing; 6-8 weeks when returns are mailed. • Address must match EXACTLY as shown on return. • Folks filing an amended return or who are married filing separately are not eligible.

28. Verification Documentation for Independent Students • Guardianship, ward of the court • Must have copy of court document • Homelessness • Homeless liaison, pastor, school counselor

29. Special Circumstances • Sometimes, things outside of the federal mold happen. • Financial Aid offices can make changes to a student’s FAFSA information based on special circumstances.

30. Net Price Calculator • Strengths • Designed to provide accurate and timely information about the net price of a college. • Can assist families in comparing colleges based on net price and financial aid.

31. Net Price Calculator • Weaknesses • Inclusion of direct and indirect costs in “price of attendance” component can significantly inflate the price tag. • Institution’s flexibility to customize template could make college costs comparisons an extremely complex process.

32. Shopping Sheet • Many schools will be using what’s referred to as a “Shopping Sheet”. This could replace, or supplement, their current award letter.

33. Update on Federal Aid Programs

34. Political Climate • Three current climate drivers: • Partisanship & Brinkmanship • Budget politics dictating policy • “The status quo”

35. Political Climate • What’s the takeaway? • Student aid is caught up in a much larger political dysfunction & ideological impasse. • Student aid changes will likely continue through the budget process.

36. Federal Aid Programs, 2013-2014

37. Federal Pell Grant 2013-2014 • Maximum award amount increases slightly for 2013-2014 • $5,635 maximum award for full-time enrollment and an Expected Family Contribution (EFC) of zero. • Maximum Expected Family Contribution (EFC) for Pell eligibility has been lowered to 4995.

38. Federal Pell Grant 2013-2014 • Students now have a maximum number of terms they can receive Pell Grant • 600% of an annual award amount, or the equivalent of 12 full time semesters.

39. TEACH, 2013-2014

40. Campus Based Programs, 2013-2014

41. Federal Work Study • Undergraduate or graduate students are eligible • Employment can be on or off campus • FWS wages are excluded from EFC calculation!!! • Ohio Minimum Wage in 2013 is $7.85/hour • There is a difference between work study and “work” or “summer job” on an award letter.

42. Federal Supplemental Educational Opportunity Grant (FSEOG) • Federal SEOG • Undergraduates with exceptional financial need. • Pell Eligible students with the lowest EFC • Award ranges from $100 to $4000, depending on when student applies, financial need, and the funding and policies of school attending.

43. Federal Perkins Loan • Eligible students (priority to exceptional need) • Undergraduate or graduate students • Must file the FAFSA • Annual and aggregate loan limits • up to $5,500 annually for undergraduates(actual awards, if any, will vary between schools) • $27,500 aggregate for undergraduates • Interest rate: 5% (fixed) during repayment • Interest subsidized during in-school and nine-month grace period • Deferment and cancellation provisions available

44. Direct Loans, 2013-2014 • Direct Subsidized and Unsubsidized Loans are two separate, unique types of loans that are awarded separately.

45. Direct Loans, 2013-2014 Independent Students and Dependent Students whose parents have been denied the PLUS Loan are eligible for additional Unsubsidized Stafford Loans ($4,000 as Freshmen and Sophomores and $5,000 as Juniors and Seniors)

46. Direct Loans, 2013-2014 • Subsidized and Unsubsidized Loans • 1% default origination fee. • Parent and Graduate PLUS • 4% default origination fee. • All fee rebates were eliminated as of July 1, 2012

47. Direct Loans, 2012-2013

48. Direct Loans, 2013-2014 • Parent PLUS Loans • Loans to parents of dependent students. • Loan limits are up to the cost of education less any financial aid received. • Interest rate is 7.9% fixed. • Repayment begins within 60 days of full disbursement. • Payments may be deferred while the student is in school. • FAFSA completion is required.

49. Update on State Aid Programs

50. Ohio Aid Programs, 2013-2014 • Ohio College Opportunity Grant (OCOG) • War Orphans Scholarship • National Guard Scholarship • Safety Officers Memorial Fund • Nurse Education Assistance Loan Program (NEALP) • Choose Ohio First Scholarship