Financial Aid Workshop Financial Aid Night The Theatre Arts Production Company School Presenter: James Giordano
Workshop Highlights • Types of Federal Aid • Packaging of Aid • Application Process • CSS Profile • Scams • TAP • Estimators • Step by step FAFSA • After the FAFSA
What is Financial Aid? • Gift Aid • Grants and Scholarships (free money) • Self-Help Aid • Work-Study (job opportunity to earn money and relevant experience) • Loans (money borrowed that must be repaid)
Sources of Financial Aid • Federal and State Grants. • TAP • Federal Work-Study • Federal Loans • Institutional Aid • Private / Other Government Aid
Pell Grant: Does not have to be repaid. Available almost exclusively to undergraduates; all eligible students will receive the Federal Pell Grant amounts they qualify for ranging from $400 - $5,500 Max. • Federal Supplemental Educational OpportunityGrant (FSEOG): Does not have to be repaid. For undergraduates with exceptional financial need; priority is given to Federal Pell Grant recipients; funds depend on availability at school $4,000 Max • Federal Work-Study: Money is earned while attending school; does not have to be repaid. For undergraduate and graduate students; jobs can be on campus or off campus; students are paid at least minimum wage. No annual maximum Federal Grants
Academic Competitiveness Grant (not funded yet) • An Academic Competitiveness Grant will provide up to $750 for the first year of undergraduate study and up to $1,300 for the second year of undergraduate study to full-time students who are eligible for a Federal Pell Grant and who had successfully completed a rigorous high school program, as determined by the state or local education agency and recognized by the Secretary of Education. Second year students must maintain a cumulative grade point average (GPA) of at least 3.0. • Must have received a regents diploma with ADVANCED designation. • Must be eligible for Pell Grant
TEACH Grant • Teacher Education Assistance for College and Higher Education (TEACH) Grant Program provides grants of up to $4,000 per year to students who intend to teach in a public or private elementary or secondary school that serves students from low-income families. • In exchange for receiving a TEACH Grant, you must agree to serve as a full-time teacher in a high-need field in a public or private elementary or secondary school that serves low-income students. Visit https://teach-ats.ed.gov/ats/index.action. • If you fail to complete this service obligation, all amounts of TEACH Grants that you received will be converted to a Federal Direct Unsubsidized Stafford Loan. You must then repay this loan to the U.S. Department of Education. You will be charged interest from the date the grant(s) was disbursed.
High Need Fields • High-Need Field • High-need fields are the specific areas identified below: • Bilingual Education and English Language Acquisition. • Foreign Language. • Mathematics. • Reading Specialist. • Science. • Special Education. • Other identified teacher shortage areas as of the time you begin teaching in that field. These are teacher subject shortage areas (not geographic areas) that are listed in the Department of Educations Annual Teacher Shortage Area Nationwide Listing. To access the listing, please go to http://www.ed.gov/about/offices/list/ope/pol/tsa.doc.
The National Science & Mathematics Access to Retain Talent Grant (National SMART Grant)(Not Funded Yet) • The National Science and Mathematics Access to Retain Talent Grant, also known as the National Smart Grant is available during the third and fourth years of undergraduate study (or fifth year of a five-year program) to at least half-time students who are eligible for the Federal Pell Grant and who are majoring in physical, life, or computer sciences, mathematics, technology, engineering or a critical foreign language; or non-major single liberal arts programs. • A National SMART Grant will provide up to $4,000 for each of the third and fourth years of undergraduate study. • Must be eligible for Pell Grant
NYS Math and Science Teaching Incentive Scholarships • New York State (NYS) Math & Science Teaching Incentive Scholarships are offered to encourage students to pursue careers as secondary math and science teachers (grades 7-12). This program provides awards to students attending school at the undergraduate and/or graduate degree level in exchange for five years of full-time employment as secondary education math or science teachers. • Recipients shall receive an annual award for full-time study equal to the annual tuition charged to NYS resident students attending an undergraduate program at the State University of New York, or actual tuition charged, whichever is less. The maximum annual award for the 20010-11 academic year is expected to be $4,995 • Visit http://www.hesc.com/content.nsf/SFC/NYS_Math_and_Science_Teaching_Incentive_Scholarships to apply in January.
Direct Federal Stafford Loans • Direct Subsidized Stafford Loans: Interest does not accrue until repayment begins. • Direct Unsubsidized Stafford Loans: Interest accrues (accumulates) on an unsubsidized loan from the time it’s first paid out. You can pay the interest while you are in school and during grace periods and deferment or forbearance periods, or you can allow it to accrue and be capitalized (that is, added to the principal amount of your loan). If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay because you will be charged interest on a higher principal amount.
Direct Federal Stafford Loans • First Year $5,500—No more than $3,500 of this amount may be in subsidized loans. • Second Year $6,500—No more than $4,500 of this amount may be in subsidized loans. • Third and Beyond (each year)$7,500—No more than $5,500 of this amount may be in subsidized loans. • Interest on Direct Subsidized for Undergraduate students - If the first disbursement of your subsidized loan is between July 1, 2010 and June 30, 2011, the interest rate on your loan is fixed at 4.5%. The interest rate on subsidized loans first disbursed to undergraduate students between July 1, 2011 and June 30, 2012 will be fixed at 3.4%. • Interest on Direct Unsubsidized for Undergraduate students - The interest rate is fixed at 6.8% for all borrowers (undergraduate and graduate).
Direct PLUS Loan for Parents • The annual limit on a PLUS Loan is equal to the student's cost of attendance minus any other financial aid the student receives. • For example, if the cost of attendance is $6,000 and the student receives $4,000 in other financial aid, the student's parent can request up to $2,000. • The interest rate is fixed at 7.9%. Interest is charged from the date of the first disbursement until the loan is paid in full.
Loan Fees • There is a loan fee on all Direct Subsidized and Unsubsidized Loans. The loan fee is a percentage of the amount of each loan you receive. For loans first disbursed between July 1, 2010 and June 30, 2011 the loan fee is 1.0%.
The Packaging of Financial Aid • Almost all financial aid is awarded in the form of a package. Financial aid packages are made up of grants, scholarships, loans, and/or work study. The student may or may not receive this with the acceptance letter.
Application Processfor most schools. • Free Application for Federal Student Aid (FAFSA) • Required for federal, state, and institutional aid • Deadlines vary from school to school • FAFSA on the WEB (www.fafsa.ed.gov)
Application Process for SOME SCHOOLS • Institutional Aid Application (not very common) • CSS/Financial Aid PROFILE 2013-2014 • Copies of student’s and parents’ 2012 Federal tax returns for verification purposes • IDOC -College Board collects families' federal tax returns and other documents on behalf of participating colleges and programs. The College Board will notify students selected by participating institutions when they must submit the required documents
CSS Profile • https://profileonline.collegeboard.com/index.jsp • Be sure to download the student guide • All students are charged $9 for the initial application. • This covers the costs of creating your PROFILE Application and the first school report. • You will be charged $16 for each additional college or program to which you want information sent. • Deadline usually around Feb. 1st • Fee waivers issued automatically by collegeboard based on income. • Only some schools require the non-custodial parent information. Be sure to view the list of colleges, universities, and scholarship programs that require the 2013 – 2014 PROFILE Service.
Financial Aid Myths • Students with highest GPAs get all the aid • Income is too high, so don’t bother to apply • Sibling didn’t qualify, so neither will I • Attend the college that offers the most aid (ratio of gift aid to self-help). Remember, in most schools loans are considered aid and are calculated into the final aid package. Some upper level schools do not consider loans financial aid and will therefore provide grants in their place. • Cost is the only way to compare colleges • “Billions of Dollars Unclaimed…”
“Billions of Dollars Unclaimed . . . ”Scholarship Search Companies • Several warning signs of a possible scam • Guaranteed winnings • “Free seminars” on financial aid • 1-900 telephone numbers • www.fafsa.com CAUTION:As a general rule, if you must pay money to get money, it might be a scam.
Tools and Resources • FAFSA on the Web Worksheet • FAFSA Demo Site • Scholarship Search • Career Voyages • Publications • Forms • National Student Loan Data System • Audio and Video Programs About Federal Student Aid • All can be accessed by visiting https://studentaid.ed.gov/ and clicking on “Tools and Resources.”
MY FSA • MyFSA is an online account that provides students with access to college and scholarship searches, career and self-assessment tools, and other valuable resources regarding college and financial aid. Students can set up MyFSA accounts by visiting www.studentaid.ed.gov and clicking on "MyFSA." To learn how to use and take advantage of MyFSA's various functions, students can click on "Introduction to MyFSA."
Aid Estimators • There are tools available to assist you in estimating the amount of state and federal aid that you may be eligible for. For more information visit: http://www.hesc.com/content.nsf/SFC/6/Financial_Aid_Calculators
FAFSA4caster (highly recommended)http://www.fafsa4caster.ed.gov • If you want to begin exploring your financial aid options and get an early start on the financial aid process, FAFSA4caster is for you! By using FAFSA4caster, you and your family will receive an early estimate of eligibility for federal student aid. When you’re ready to apply for aid, much of the information that you enter in the FAFSA4caster will populate your FAFSA on the Web application, making the experience of applying for federal student aid a lot easier.
FAFA on the WEB (FOTW) • Tabs are located at the top of each page to indicate the step that you are completing.
Documents Needed • You will need records of income earned in the year prior to when you will start school. You may also need records of your parents' income information if you are a dependent student. • For the 2013-2014 school year you will need financial information from 2012. You may need to refer to: • Your Social Security card. It is important that you enter your Social Security Number correctly! • Your driver's license (if any)
Documents Needed • Your 2012 W-2 forms and other records of money earned • Your (and if married, your spouse's) 2012 Federal Income Tax Return. • IRS 1040, 1040A, 1040 EZ • Foreign Tax Return, or • Tax Return for Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, the Marshall Islands, the Federal States of Micronesia, or Palau • Your Parents' 2012 Federal Income Tax Return (if you are a dependent student) • Your 2012 untaxed income records • Your current bank statements
Documents Needed • Your current business and investment mortgage information, business and farm records, stock, bond and other investment records • Your alien registration or permanent resident card (if you are not a U.S. citizen) • To organize your information, you can print and complete a FAFSA on the Web Worksheet before you begin entering your information online. However, you are not required to do so. FAFSA on the Web will guide you through the questions that you must answer, and you can save your application and return to it later if you don't have the information you need to answer any of the questions.
Before Beginning a FAFSA – FAFSA on the Web Worksheet The FAFSA on the Web Worksheet provides a preview of the questions that you may be asked while completing the Free Application for Federal Student Aid (FAFSA) online at www.fafsa.gov. To download a copy of the Worksheet visit: http://www.fafsa.ed.gov/help/ffdef44.htm.
FAFSA on the Web Worksheet • The questions within FAFSA on the Web are presented in a different order than the questions on the paper FAFSA. • The FAFSA on the Web Worksheet presents the questions in relatively the same order as they are presented within FAFSA on the Web. • Students wanting to pre-fill a paper form in preparation for submitting their application online should complete the FAFSA on the Web Worksheet rather than the paper FAFSA.
The Updated Dependency Worksheet • The Dependency Worksheet is designed to help students determine if they need to provide parental information on the FAFSA. • Students can use the Worksheet prior to beginning the online application. The Dependency Worksheet has been updated to include new dependency questions and redesigned flow.
Dependency The student is considered a dependent unless one of the following criteria is met: • The student is older than 24 or else turns 24 during that calendar year. • The student is enrolled in a post-graduate program. • The student is married. • The student has children, or other non-spouse dependents, who live with them and receive more than half of their monetary support from the student.
Dependency Continued.. • The student is an orphan or ward of the state. • The student is a military veteran or (as of July 1st) currently serving in active duty for purposes other than training.. • The individual schools have the ability to override a student's dependency on a case-by-case bases. Each school has their own policies on when and if they will override. This is usually reserved for extreme cases, such as abuse or abandonment. The student has to supply supporting documentation and jump through several bureaucratic hoops during this process. The school's decision is final in this matter. In the event of transfer to a different institution, the process is repeated in order to determine the new school's decision on the issue of dependency.
Completing the 2013-2014 FAFSA On The Web (FOTW) Taking it a Step at a Time
Getting Started • Read all application instructions • If you prefer to mail in the FAFSA, you can visit http://www.fafsa.ed.gov/options.htm. This form allows you to complete the FAFSA on your computer for printing. You can not save the FAFSA using this method. REMEMBER! You are completing the 2013-2014 FAFSA.
The FAFSA - An Eight Step Process • Step 1 Student (“you”) Specific Information. • Step 2 Student’s Dependency Status. • Step 3 Completing the Parental Information “Your Parent” Sections. • Step 4 Students Finances. • Step 5 Searching for Colleges • Step 6 Preparers Information • Step 7 Signatures Process • Step 8 Student and Parent Signatures (PINS)
Step 1: STUDENT SPECIFIC SECTION OF FOTW. Info about “You” the student
Basic Contact Information • It sounds silly, but make sure the name is in the correct order: Last, First, MI. • Whenever you're filling out basic information, use the SAME information as on your IRS tax return, which should be identical to the information on your SOCIAL SECURITY paperwork/card. • Your address is the SAME as the address you use on your TAX RETURNS. • Be absolutely, positively sure you've got the Social Security Number (SSN) right. Nothing will kill a FAFSA faster than a mistake on the SSN.
Basic Contact Information • No driver's license? State ID will do. No ID at all? You can safely leave this Question blank, but it's not encouraged. • Double-check your email address! The Department of Education will send FAFSA results to that email address. • Some schools will thoroughly scrutinize your FAFSA by comparing it with your 1040. They may confront you with inconsistencies such as different addresses.
The social security number • If you or your student do not have a valid Social Security Number, then enter all zeros. You can not leave this question blank. • Even if you do not have a social security number, the FAFSA will be used to determine institutional aid. In other words, NO FAFSA NO AID. • Since you do not have a social, you can not receive a pin. You must therefore print and sign the signature page.
Demographics“You” the Student • Questions on “marital status” - reminder - this is the student, not the parents! “You” always refers to the student. • Question about Selective Service: Yes, that's the draft. It is a requirement that males 18 years old or older be registered for the draft. No Selective Service registration equals no financial aid.
Criminal Records and Parents Education Status “You” the student • Question on criminal convictions:answer honestly, and don't leave it blank. If you have been convicted, omitting the answer can be a crime. Remember, the question is just about whether the drug offense was while you were receiving federal financial aid. Do NOT count convictions that occurred before you turned 18, unless you were tried as an adult. • Questions on parents education are used to qualify you for scholarships for students who are the first in their family to go to college. Be sure to complete this - some schools have additional aid for students with parents either from certain educational backgrounds, or who are the first in their family to go to college.
Question on Loans and Work Study • If you want to qualify for Federal Student Loans as well as Federal Work Study, you must select that you are interested on the FOTW. This does not obligate you to apply for a loan. • Selecting yes that you are interested will not reduce your financial aid package. I recommend that you select that you are interested.
Special Circumstances • FAFSA on the Web has been updated to allow dependent students that are unable to provide parental data to submit their application online • No EFC will be calculated and students will be advised of the consequences of submitting an application without parental data • Students will be advised to follow-up with the financial aid office at the college they plan to attend.
Special Circumstances: Page 1 of 3 Displayed only if student is dependent. Student can indicate that they will provide parental information or they can indicate they have a special circumstance.