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What you Need to Know

What you Need to Know. Presented by Michael Corso Director of Financial Aid William Paterson University. Topics We Will Discuss Tonight. What is financial aid Cost of attendance (COA) Expected Family Contribution (EFC) What is financial need

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What you Need to Know

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  1. What you Need to Know Presented by Michael Corso Director of Financial Aid William Paterson University

  2. Topics We Will Discuss Tonight • What is financial aid • Cost of attendance (COA) • Expected Family Contribution (EFC) • What is financial need • Categories, types, and sources of financial aid • Free Application for Federal Student Aid (FAFSA) • Special circumstances

  3. The Application Process • The financial aid process begins with the Free Application for Federal Student Aid (FAFSA) • Typically students only need to complete the FAFSA • CSS Profile • Institutional Application or Scholarship Application • Students and parents must complete the FAFSA annually within established deadlines to determine eligibility for: • Federal aid • State aid • Institutional aid

  4. Get Organized • Have a 3 ring binder for each college • Break up into Admissions, Fin Aid, Other • Go on the Website of each college • Net Price Calculator • Ask questions

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

  6. What is the Expected Family Contribution (EFC) • An index used to determine eligibility • Stays the same regardless of college • Two components • Parent contribution • Student contribution • Calculated using data from a federal application form and a federal formula

  7. What is Financial Need Cost of Attendance –Expected Family Contribution = Financial Need

  8. Categories of Financial Aid • Need-based • Non need-based

  9. Example of Need • Cost of Attendance $30,000 • EFC 2,000 • Need $28,000

  10. Example of No Need • Cost of Attendance $30,000 • EFC 30,000 • Need 0

  11. Types of Financial Aid • Scholarships – Good Grades Pay! • Grants • Loans • Employment

  12. Federal Government • Largest source of financial aid • Aid awarded primarily on the basis of financial need • Must apply every year using the Free Application for Federal Student Aid (FAFSA) • A word about Veteran Benefits

  13. Common Federal Aid Programs General Programs Campus Based Federal Supplemental Educational Opportunity Grant Federal Perkins Loan Federal Work-Study • Federal Pell Grant • Teacher Education Assistance for College and Higher Education Grant • Direct Loans • PLUS Loans

  14. Loans • Federal Perkins Loan (5%) • Federal Direct Loan Program • Subsidized Direct Loan (3.86%) • Unsubsidized Direct Loan (3.86%) • PLUS (5.41%) – Parent only NJCLASS Supplemental Loan Program Fixed rate loan with varying repayment options. Interest rates range from 5.49% to 8.05% for the 2013/2014 award year. Can borrow up to cost of attendance and student can be the borrower. Each option has a 3% fee. • Institutional/Private Loans

  15. Direct Student Loans Year Subsidized Unsubsidized • Fresh $3,500 $2,000 • Soph $4,500 $2,000 • Junior $5,500 $2,000 • Senior $5,500 $2,000

  16. If a Parent is denied a PLUS Loan • Student can get additional Unsubsidized Direct Loan • Fresh $4,000 • Soph $4,000 • Junior $5,000 • Senior $5,000

  17. State Aid • Residency requirements • Award aid on the basis of both merit and need • Use information from the FAFSA • Deadlines vary by state; check paper FAFSA or FAFSA on the Web site

  18. Types of Aid • State of New Jersey • TAG (Tuition Aid Grant) & Part-Time TAG for County Colleges • Total Disbursed FY 2011 (July 2011 to June 2012) - $302.3 M • Total Number of Grants Awarded – 73,000 • EOF (Educational Opportunity Fund) • Governor’s Urban Scholarship • Rank in the top 5% of the high school graduating class • Attain a 3.0 GPA at the end of the junior year • Must graduate from a traditional public, public charter, county vocational or non-public school and reside in an eligible area • Have a New Jersey Eligibility Index below 10,500 • Institutional Grants • Private Grants & Scholarships Higher Education Student Assistance Authority

  19. Types of Aid (continued) • State Scholarships • NJ STARS • Students who graduate in the top 15% of their high school class • Complete a rigorous high school course of study • Achieve the required score on a college placement test to determine college readiness • Students must take at least 12 college credits • Students must attain a cumulative GPA of 3.0 or higher • Must file a Free Application for Federal Student Aid (FAFSA) • NJ STARS II • Received NJSTARS funding and have a family taxable income of less than $250,000 • Must earn an associates degree and graduate with a 3.25 GPA or higher • May receive up to $2,500 annually for a public or private 4-year NJ college or university • Must enroll full time (12 credit hours) • Must file a Free Application for Federal Student Aid (FAFSA) Higher Education Student Assistance Authority

  20. Types of Aid (continued) • State Scholarships • Governor’s Industry Vocation Scholarship for Women & Minorities (NJ - GIVS) • Up to $2,000 per year for the cost of enrollment at one of New Jersey’s 19 County Colleges • Benefits women and minorities pursuing non-degree certificates in construction – related fields • Must be NJ resident • Must file a FAFSA • Some of the programs eligible for the scholarship include • Construction Supervision • Solar Energy Technology • Architectural Engineering Technology • Heating / Refrigeration / Air Conditioning / Ventilation Higher Education Student Assistance Authority

  21. State Verification • Additional Information Request (AIR) • Further information requested by HESAA • Tax return(s) • Bank statements • Selected for State verification • Unlike federal verification, which is completed by colleges, HESAA conducts State verification. HESAA should be informed if first college listed on FAFSA is not the college the student is attending; change online at www.hesaa.org. • Student Eligibility Notice (SEN) • Mailed to student from HESAA

  22. Private Scholarship Search • Institution/college web sites • Local library resources • Local businesses, civic organizations and churches • Parent’s employer(s) • www.hesaa.org • www.fastweb.com • www.collegeboard.org • www.mappingyourfuture.org Higher Education Student Assistance Authority

  23. When to complete the FAFSA • May be filed at any time during an academic year, but no earlier than the January 1st prior to the academic year for which the student requests aid • For the 2014-15 academic year, the FAFSA may be filed beginning January 1, 2014 • Colleges may set FAFSA filing deadlines

  24. FAFSA on the Web • Web site: www.fafsa.gov • 2014-15 FAFSA on the Web available on January 1, 2014 • FAFSA on the Web Worksheet: • Used as “pre-application” worksheet • www.finaid.ucsb.edu/FAFSASimplification/index.html

  25. Important Line Items • Adjusted Gross Income (AGI) - 1040 line 37; 1040A line 21; 1040EZ line 4 • Income tax - 1040 line 55; 1040A line 35; 1040EZ line 11 • Wages - 1040 lines 7, 12,18; 1040A line 7; 1040EZ line 1 • The advantage of filing a 1040A - No assets are counted

  26. FAFSA 2014/15 Major Changes • Enhanced instructions for question 14 and 15 will read, “If you have a social security number but are not a US Citizen or Eligible Non-Citizen, you should still complete the FAFSA because you may be eligible for state or college aid. • Revised Question #59 to read, “As of today, what is the marital status of your legal parents?” • Revised “Single” to Never Married” • Added a new response, “Unmarried and both parents living together” Higher Education Student Assistance Authority

  27. General Highlighted Eligibility Requirements • Must have a valid Social Security Number • Must be enrolled or accepted for enrollment in an eligible program of study • Must be pursuing a degree, certificate, or other recognized credential • Must be a U.S. citizen or eligible noncitizen • Must be registered with Selective Service (males are required) Higher Education Student Assistance Authority

  28. HESAA Services • Web Site www.hesaa.org • Financial Aid Hotline 609-584-4480 • NJBEST • MappingYourFuture.org Higher Education Student Assistance Authority

  29. Estimated FAFSA

  30. Federal Verification • Must complete Verification Process • Provide a Tax Return Transcript from IRS - www.irs.gov - call 800-908-9946 or 800-829-1040 2. Use IRS Data Retrieval Process 2 Ways - as part of the original application - to complete verification requirements Youtu.be/W47_YTRVYD4

  31. IRS Data Retrieval • Available February 2014 • Allows an applicant who has already filed their tax return with IRS to electronically transfer data from tax return to FAFSA • Participation is strongly encouraged reduce documents requested by financial aid office • Not available to applicants with a recent change in marital status • If married use the husband’s information.

  32. IRS Data Retrieval • While completing FAFSA, applicant may submit real-time request to IRS for tax data • If a tax filer files taxes electronically, they need to wait 1 to 2 weeks to do FAFSA • If a tax filer files taxes by paper, they need to wait 6 to 8 weeks to do FAFSA • If do estimated FAFSA, can use IRS DATA retrieval to correct FAFSA

  33. Signatures – Important! Pin.ed.gov • Pin.ed.gov • Required • Student • One parent (dependent students) • Format • Electronic using PIN • Signature page

  34. Click to Apply for State Aid

  35. Frequent FAFSA Errors • Social Security Numbers and DL • Divorced/remarried parental information • Income earned by parents/stepparents • Untaxed income • Wages left blank • Household size • Number of household members in college • Real estate and investment net worth

  36. Making Corrections If necessary, corrections to FAFSA data may be made by: • Using FAFSA on the Web (www.fafsa.gov) if student has a PIN; • If estimated taxes are used, correct FAFSA with real taxes or use IRS Data Retrieval; or • Submitting documentation to college’s financial aid office

  37. Special Circumstances • Cannot report on FAFSA • Send explanation to financial aid office at each college • College will review special circumstances • Request additional documentation • Decisions are final and cannot be appealed to U.S. Department of Education

  38. Special Circumstances • Change in employment status • Medical expenses not covered by insurance • Change in parent marital status • Unusual dependent care expenses • Student cannot obtain parent information

  39. CSS Profile • Why is it required? • Request additional information, i.e., non-custodial parent, home equity, pensions. Used by some schools to distribute institutional funds. • Who requires it? • Typically, institutions with significant institutional aid • Over 250 schools nationally • When do families file? • Available October 1, 2012 • Submit by school deadline To download CSS Profile, go to www.collegeboard.com

  40. Other Resources • Outside Scholarships • Campus Administered Payment Plans • Campus Employment • Specialized Campus Opportunities Residential Advisors Student Ambassadors Student Tour Guides Internships/CO-OP’S Higher Education Student Assistance Authority

  41. Additional Web sites • www.studentaid.ed.gov • www.finaid.org • http://nces.ed.gov/collegenavigator/ • http://www.college.gov/wps/portal

  42. FAFSA4caster • For High School Juniors and their parents • http://www.fafsa4caster.ed.gov

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