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Navigating the Financial Aid Process: A Comprehensive Guide

This guide outlines the financial aid process, including how and when to apply for federal aid through the FAFSA, the types of aid available such as grants, scholarships, and loans, and additional financing options. Learn about maintaining records, the expected family contribution (EFC), and strategies for overcoming common filing errors. It also discusses the impact of outside scholarships, special circumstances that may affect eligibility, and tips for maximizing financial aid. Additionally, hear advice on strategies for managing assets to optimize aid eligibility.

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Navigating the Financial Aid Process: A Comprehensive Guide

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  1. The Financial Aid Process Albina Grignon Grignon Educational Consultants 692-8376

  2. Introduction • How and When to Apply • Types of Aid Programs Available • Additional Financing Options • Outside Scholarships/Aid Renewal/Special Circumstances

  3. How and When to Apply • Request a Federal PIN Number at www.pin.ed.gov • Collect Documents • Fill out the pre-application worksheet • Complete FAFSA online at www.fafsa.ed.gov after January 1st. • Use link to apply for TAP • Keep records

  4. How and When to Apply • Check “will file taxes” • Estimate financial information • Questions? 1-800-4FEDAID or www.fafsa.ed.gov • Terms-Expected Family Contribution EFC • Student Aid Report-SAR • Govt. conducts a “needs analysis” based on financial information submitted

  5. www.pin.ed.gov

  6. www.fafsa.ed.gov

  7. TAP

  8. Types of Aid Programs Available • Grants and Scholarships • - Pell Grant • - TAP Grant • - Merit Scholarships • Federal Work-Study • Federal Perkins Loan • Federal Stafford Loan (subsidized vs. unsubsidized interest around 6.8%) 66% of 4 year college graduates had loans

  9. Additional Financing Options Parent Plus Loan Payment Plans Four Installment Payment Plans set by the college Home Equity Line of credit not a loan. If get a loan and don’t spend all money before next FA form, considered an asset and paying interest on full amount

  10. Other Aid and Special Circumstances • Impact of Outside Scholarships-apply for local scholarships Rotary, Credit Union, professional organizations • Special Circumstances and Appeals • Disability, Death, Divorce will review immediately • Loss of Job, loss of income usually will review in October

  11. Special Circumstances • The parents adjusted gross income is under $50,000 AND • All family members are eligible to file IRS form 1040A of 1040EZ • Then the family qualifies for the Simplified Needs Test which disregards assets when determining the expected family contribution

  12. Avoid Common FAFSA Filing Errors • Missing Signatures • Reporting Income of parent no longer in household • Confusing “Tax paid” same figures as AGI • Reporting “taxes withheld”(W-2) instead of “taxes paid” • Missing income and asset information

  13. Avoid Common FAFSA Filing Errors • Zeros for Worksheet A,B,C • Non custodial parent listed as family income (e.g. grandparent, aunt) • Wrong SSN/Birth date • USE FinAid’sEFC calculator in detailed mode to see where there is any contribution from parent assets.

  14. Strategies 2012 and beyond • Save money in parent’s name not the child’s name or use a 529 savings plan-asset disregarded if owner is other than student or parent such as grandparent • Spend down the student’s assets and income first- student’s assets “taxed by FAFSA” at higher rate in needs formula than parents • If family’s financial circumstances are unusual, make an appointment with financial aid administrator at school • Do not withdraw money from retirement fund since it is viewed as income. Retirement funds not assessed in needs formula. Try to borrow from retirement fund. • Accelerate necessary expenses to reduce cash • Community College for first two years-45% of all first year students start at a community college

  15. Questions? • Please feel free to call me at 692-8376 with any questions you may have.

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