Applying for Financial Aid2012-2013 Academic Year Financial Aid Services Telephone: 860-439-2058 E-Mail: email@example.com
What you will learn: • What financial aid is • Sources of financial aid • When and how to apply • How to pay the bill
Helpful Advice • Visit college web sites for application requirements and deadline dates • All colleges should have a net price calculator available on their web site to help you determine what your family contribution might be.
NET PRICE CALULATOR TIPS Carefully read all instructions and pop ups. All Net Price calculators are not alike. Each college builds theirs based on their policies. Try to guesstimate as closely as possible. Don’t forget untaxed income. Outcome is a ballpark figure, not an offer.
Funding a College Education Who Are the Players? Federal & State Governments Family Outside agencies The college
How Much Financial Aid Will Be Offered? • Dependent on a family’s ability to pay • Dependent on the funding available from the federal and state governments and the college. • Were the financial aid applications and supporting documentation submitted by the deadline date?
Definition of Financial Need Cost of Attendance LESS Expected family contribution (EFC) LESS Other financial assistance EQUALS Financial need
Cost of Attendance • Tuition and Fees • Room and Board • Books and Supplies • Transportation • Study Away Expenses • Disability Expenses • Miscellaneous and Personal Expenses (purchase of a computer)
Family Contribution Components • Parent(s)’ 2011 income • Including untaxed income such as: child support received, annual contributions made to a retirement plan • Student’s 2011 income • Value of parent’s assets • Exclude principal value of retirement accounts • Include cash, college savings plans, other savings, trusts, bonds, money market, CD’s. • Value of student’s assets • Include cash, savings, trusts, bonds, money market, CD’s. • Number of household members • Number of dependents attending college at least half-time
Eligibility Assessed Using Federal Methodology • Based on information reported on the FAFSA (Free Application for Federal Student Aid, 2012-2013) • Formula determined by Congress that is used to determine eligibility for federal and most state funds • Home equity excluded • No information from the non-custodial parent • Custodial parent and stepparent incomes are included • Parent contribution divided by the # of dependents attending college at least half-time
Eligibility Assessed Using Institutional Methodology • Based on information provided on the CSS Profile or a custom institutional application • Used by schools to award their own funds • Home equity might be added in • Information from the non-custodial parent is required • Tax losses may be added back • Depreciation associated with a business or investment property may be added back • Parent contribution might not be divided equally and no allowance for graduate school • Minimum student contribution
Remember! • Grants/Scholarshhipsdo not have to be repaid (unless a student withdraws during a term). Grants are typically awarded based on need and scholarships are typically awarded based on merit or athletic ability. • Student loansmust be repaid • Federal Work Studyprovides income, which does not have to be repaid, from a part-time job
Sources of Need Based Aid Federal Grants(Funding for 2012-2013 has not yet been determined) • Federal Pell Grant – $5,550 • Federal SEOG Grant – up to $4,000 • Federal TEACH Grant – up to $4,000 Studentaid.ed.gov for detailed information about these programs.
Sources of Need Based Aid – Federal Loans and Student Employment studentaid.ed.gov • Federal Perkin Loans – up to $5,500 • Interest rate is 5% fixed • Program may change for next year • Federal Direct Stafford Loan – • 1st year = up to $5,500 ($3,500 subsidized) • 2nd year = up to $6,500 ($4,500 subsidized) • 3rd-5th year = up to $7,500 ($5,500 subsidized) • Interest rate is 3.40% for 2011-2012 academic year • Fees = 1% with an up front rebate of .5% • Federal Work Study - • no limit but average range is $1,200 to $2,000 • Students work approximately 8 – 10 hours per week • Most paychecks are issued via direct deposit
Sources of Need Based State Aid ctdhe.org • State grants for CT residents • Connecticut Independent College Grant – award amount determined by College • CT Aid for Public College Student Grant – award amount determined by College
Sources of Institutional Grants and Outside Resources • Institutional Grants/Scholarships are provided by the college either from tuition revenue and/or endowed funds and annual gifts. • Outside Resources – • Employee Tuition Benefit • National Merit, Rotary, Garden Club, etc. • High school guidance office • www.finaid.org
Student Eligibility Requirements • U.S. Citizen or eligible non-citizen • a permanent U.S. resident with a Permanent Resident Card (I-551); • a conditional permanent resident (I-551C); • the holder of an Arrival-Departure Record (I-94) from the Department of Homeland Security showing any one of the following designations: “Refugee,” “Asylum Granted,” “Parolee” (I-94 confirms paroled for a minimum of one year and status has not expired) or “Cuban-Haitian Entrant.”
Student Eligibility Requirements, con’t. • If male and age 18 must register for Selective Service; • Have a valid social security number; • Must be enrolled as a regular student in an eligible degree or certificate program; • Must have a high school diploma or an equivalent; • While enrolled in college, must make satisfactory academic progress. • Must have resolved any drug conviction issue.
Free Application for Federal Student Aid, 2012-2013FAFSA • Can’t file prior to 01/01/2012 • Required by all schools • Used to determine eligibility for federal/state need based aid • Student and one parent should apply for a pin # now to sign the FAFSA electronically
Helpful Tips When Completing the FAFSA • Print out the FAFSA on the Web Worksheet • Have your 2011 federal tax return and W2 statements in front of you or prepare a draft 2011 federal tax return. • You can also use your 2010 federal tax return if income will be similar to 2011. • It is okay to estimate!
Helpful Tips When Completing the FAFSA • Parents and students must provide their SSNs – if a parent does not have a SSN, enter zeros. • When reporting assets, report the value as of the date the FAFSA is completed minus the debt owed. • Investment property • Stocks, bonds, money market funds • CD’s, mutual funds, stock options, trusts • Coverdell savings accounts, college savings plans • Business/investment farm value
Helpful Tips When Completing the FAFSA • Assets not to report: • Value of your home • Retirement plans (pension funds, annuities, non-education IRAS, Keogh plans) • Must also report as income: • Annual contributions to a retirement plan • Housing allowance paid to members of the military, clergy and others • Child support
IRS Data Retrieval Process • Option to have the IRS populate the FAFSA – strongly recommend. • However, if you have not yet completed your 2011 taxes, you are prompted to provide estimated information.
If you perform an action that is successful, the system will provide you with a GREEN box and a success message.
What is the Federal Definition of a Parent? • If your parents are divorced or separated, answer the questions about the parent you lived with more during the past 12 months. • If you did not live with one parent more than the other, give answers about the parent who provided more financial support during the past 12 months.
What is the Federal Definition of a Parent? • If your parent has remarried, you must include information about the stepparent. • If your parent is widowed or single, answer the questions about that parent. • The following people are not your parents unless they have adopted you: grandparents, foster parents, legal guardians, older brothers or sisters, and uncles or aunts.
What if parent information is not available? • Student has no contact with the parent(s) and does not know where they are (and the student has not been adopted by someone else); or • Student has left home due to an abusive situation. • Must gather third party documentation to verify your living situation: attorney, court officer, social worker • Submit that third party documentation to the college that you will most likely attend.