FINANCIAL AID 101

FINANCIAL AID 101

West Virginia Higher Education Policy Commission WWW.FAFSA.GOV • Available January 1, 2014 • Promise deadline March 1, 2014 • WV State Grant deadline April 15, 2014 • Do NOT use fafsa.com – charges a fee

West Virginia Higher Education Policy Commission The FAFSA – A Five Step Process Section 1 - - Student Information Section 2 –- Student Dependency Status Section 3 –- Parental Information Section 4 –- Student Finances Section 5 – List of Schools

West Virginia Higher Education Policy Commission How is Dependency Determined? • At least 24 years old by December 31st of the year preceding the award year; • Graduate or professional student; • Married; • Has legal dependents other than a spouse; • Both parents deceased or ward of the court; • Veteran or active duty for purpose other than training of the U.S. Armed Forces; or • Foster care, emancipated minor, legal guardianship; • Homeless or unaccompanied youth.

West Virginia Higher Education Policy Commission FAFSA on the Web: Advantages: • Answer only questions applicable to student/parent • Reduces the number of errors • Processed quicker • Date received is the date submitted electronically • Corrections can be made electronically • Parents with multiple children in college will able to transfer their information to other children’s applications

West Virginia Higher Education Policy Commission Frequent FAFSA Errors • Social Security Number • Parent Information • Drug Question • Untaxed income • U.S. income taxes paid • Household size • Number in postsecondary education • FAFSA Year

West Virginia Higher Education Policy Commission IRS Link to FAFSA • Available February for 2014-2015; • Allow applicants and parents of dependent applicants to transfer 2013 tax return information from an IRS Web site directly into their FAFSA; • Available for initial FAFSA or correction about 2 weeks after filing tax return electronically.

West Virginia Higher Education Policy Commission IRS Link to FAFSA • If not available when you initially complete FAFSA, you can go back once taxes are done and update the FAFSA using the IRS Data Retrieval Process

West Virginia Higher Education Policy Commission IRS Link to FAFSA • In order to use the IRS Link on the FAFSA, you must enter the exact information into the website as appears on your 2013 federal tax return • SSN • Date of Birth • Address • Filing Status

West Virginia Higher Education Policy Commission Signatures • Required • Student • One parent (dependent students) • Format • Electronic using PIN • Signature page • Paper FAFSA

West Virginia Higher Education Policy Commission Federal Student Aid Personal Identification Number (FSA PIN) • Apply for PIN when completing the FAFSA • Sign FAFSA electronically • May be used by students and parents throughout aid process, including subsequent school years • Website: www.pin.ed.gov

West Virginia Higher Education Policy Commission FAFSA ON THE WEB • A side note: • Any time you submit something online with FAFSA on the Web, you will be given a “Confirmation Page” to confirm your transaction. • Always print and keep your confirmation page for future reference. It may prove helpful if a dispute arises.

West Virginia Higher Education Policy Commission FAFSA ON THE WEB • Application is processed in order it was received usually within 72 hours • If you provide e-mail address, you will receive an e-mail with a “link” to view your Student Aid Report (SAR) on-line • Important that you review your Student Aid Report

West Virginia Higher Education Policy Commission 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; • Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or • Submitting documentation to college’s financial aid office

West Virginia Higher Education Policy Commission Verification • The U.S. Department of Education randomly selects; • Student must comply with institutional request for information; • Use either IRS Data Retrieval Process as part of FAFSA, or • Must contact IRS to request a tax transcript be sent at www.irs.gov or by calling 1-800-908-9946

West Virginia Higher Education Policy Commission Special Circumstances(Professional Judgment) • Cannot report on FAFSA • Send written explanation to financial aid office at each college • Examples include but not limited to: • Change in employment status • Medical expenses not covered by insurance • Change in parent marital status

West Virginia Higher Education Policy Commission FAFSA4caster • Does not replace FAFSA; • Allows you to get early estimate of eligibility of Federal Aid; • www.federalstudentaid.ed.gov

West Virginia Higher Education Policy Commission 2014-2015 Paper FAFSA • Order a Paper FAFSA by calling 1-800-433-3243; • Can download and print off paper FAFSA by going to www.federalstudentaid.ed.gov; • Cannot submit FAFSA on the Web Worksheet as a paper FAFSA.

West Virginia Higher Education Policy Commission Basic Application Flow • Student and school receive FAFSA information from federal processor (student receives the Student Aid Report (SAR), school receives the info electronically) • School matches admissions record with financial aid application and determines eligibility • School mails award letter to student • Student mails award letter back to school

West Virginia Higher Education Policy Commission Financial Aid Timeline • Applying to schools, taking ACT/SAT, searching and applying for private and institutional scholarships (Throughout senior year) • Apply for Aid (January-February 2014) • Receive Award Letter (March-May) • Comply with Information Requests (March-May) • Verification and Aid Coordination (Spring&Summer) • Financial Aid Disbursed (Start of first term) • Re-apply for Aid (January-February 2015)

West Virginia Higher Education Policy Commission Basic Equation of Need Cost of Attendance (COA) • Expected Family Contribution (EFC) • Student’s Financial Need (eligibility)

West Virginia Higher Education Policy Commission Cost of Attendance(varies from school to school) • Tuition and fees • Room and board • Books and supplies • Transportation • Miscellaneous personal expenses • Loan fees, study abroad costs, dependent or elder care expenses.

West Virginia Higher Education Policy Commission Determining the Expected Family Contribution (EFC) • Income • Asset Equity (excluding home equity) • Family Size • Number of Family Members in College (excludes parent enrolled in college) • Age of Parents

West Virginia Higher Education Policy Commission Federal Pell Grant Program • Eligible students • Undergraduates pursuing first baccalaureate or professional degree • Aid administrator determines actual award amount based on enrollment status, and EFC (under 5,081) • Award amounts • Up to $5,645 maximum (in 2013-2014)

West Virginia Higher Education Policy Commission Federal Supplemental Educational Opportunity Grant (FSEOG) • Eligible students • Undergraduates pursuing first baccalaureate or professional degree • Awarded first to students with exceptional financial need (i.e., students with the lowest EFCs at that school) • Priority to Federal Pell Grant recipients • Annual award amounts • $100 minimum • $4,000 maximum

West Virginia Higher Education Policy Commission West Virginia Higher Education Grant • Must be WV resident • Awards range from $2,500 to $2,100 depending on the EFC. • The student must enroll full-time at an approved institution, demonstrate need, and file the FAFSA by April 15, 2014. • Students must have a 2.0 high school gpa to be eligible • Students must maintain 2.0 gpa and complete 24 credits to renew it.

West Virginia Higher Education Policy Commission Higher Education Adult Part-Time Student (HEAPS) Grant • Need-based grant • Decentralized administration – Contact Institutional Aid Office for more details and to apply • Traditional part-time enrollment • Maximum award cannot exceed part-time tuition and fee charges or $176 per credit hour at a non-public institution for 13-14

West Virginia Higher Education Policy Commission HEAPS Workforce Grant • Application becomes available on July 1; • Contact the school for application • Student must complete FAFSA and have financial need • Can receive up to $2,000 or tuition and fees • For Certificate or short-term training programs like certified medical training, mining, gaming, etc.

West Virginia Higher Education Policy Commission Requirements for the PROMISE Scholarship Eligibility Requirements • 3.0 GPA in the core and overall coursework • 22 on the ACT (minimum of a 20 in each of the subject areas) or 1020 on the SAT (490 verbal, 480 Math) Writing sections NOT included • Put SSN when registering for test • June 14, 2014 last ACT date • June 7, 2014 last SAT date Core Requirements • English – 4 credits • Mathematics – 4 credits • Social Sciences – 4 credits • Natural Sciences – 3 credits The core grade point average includes all core classes

West Virginia Higher Education Policy Commission 2014 Eligibility Criteria and DeadlinesFor the PROMISE Scholarship • PROMISE application available November 1; deadline is March 1, 2014 • Ensure student uses correct SSN when completing application • Submit the FAFSA by March 1, 2014 • When students submit PROMISE application, student will receive confirmation number;

West Virginia Higher Education Policy Commission PROMISE Scholarship • Students go to www.cfwv.com/PROMISE • Create a WVSAM account with username and password • Allows you to go back and make any corrections to your PROMISE application • Allows you to see the status of your PROMISE application

West Virginia Higher Education Policy Commission PROMISE Scholarship • Tuition and mandatory fees at any West Virginia public or private non-profit college up to $4,750 • PROMISE is renewable (for up to 8 semesters for a 4 year degree or 4 semesters for a 2 year degree) as long as the student maintains a 3.0 in college and completes 30 credit hours in a 12 month period. • Student may request consideration for deferment if going out of state for up to a year or if other circumstances, please contact our office

West Virginia Higher Education Policy Commission Federal Work-Study • Employment during school • Job may be on or off campus • Income is taxable (state and federal) • Excluded from student’s total income reported on next year’s FAFSA • Program varies from school to school

West Virginia Higher Education Policy Commission Teach Grant • Students can receive up to $4,000 a year; • Cannot exceed $16,000 for undergraduates or $8,000 for graduates; • Student must have 3.25 gpa; • Commit to teach full-time for 4 years within their first 8 years out of school or it becomes a loan; • Must teach either math, science, special education, foreign language, reading specialist, or field designated by a state as high-need at at at aTitle I school.

West Virginia Higher Education Policy Commission Teach Grant • If student does not fulfill commitment: • The grant becomes like an unsubsidized loan • Interest from the time grant was disbursed is added to the amount to be paid back.

West Virginia Higher Education Policy Commission Engineering, Science and Technology Scholarship • Merit-based scholarship/forgivable loan • March 1 application deadline • 3.0 overall GPA • Enrolled or accepted for enrollment full-time in an engineering, science or technology program (4-yr, 2-yr or certificate) • Maximum annual award amount is $3,000 • Application at www.cfwv.com

West Virginia Higher Education Policy Commission Underwood-Smith Teacher Scholarship • Merit-based scholarship/forgivable loan • March 1 application deadline • Must be enrolled as a full-time student in a course leading to a certification as a teacher at the pre-k, elementary, middle or secondary level • Must have a 3.25 GPA after completing 2 years of course work (due to limited funding, high school applicants are not eligible) • Maximum annual award amount is $5,000 • Application at www.cfwv.com

West Virginia Higher Education Policy Commission Federal Perkins Loan *** • Eligible students (priority to those with exceptional need) • Annual and aggregate loan limits • $5,500 annually for undergraduates • $8,000 annually for graduates • $27,500 aggregate for undergraduates • $60,000 aggregate for graduates • Interest rate: 5% • Nine-month grace period • Deferment and cancellation provisions available ***Subject to change

West Virginia Higher Education Policy Commission Federal Stafford Loan(Subsidized and Unsubsidized) • Annual loan limits • Subsidized Stafford: must demonstrate “need” • Unsubsidized Stafford: “need” is not a consideration • Repayment does not begin until 6 months after student drops below 6 credit hours. • Loan Fee of 1.051% • Interest Rate (variable-fixed) 3.86% until July 1, 2014 for undergraduates

West Virginia Higher Education Policy Commission Federal Stafford Loan

West Virginia Higher Education Policy Commission Federal PLUS Loan • Parent borrows on behalf of dependent undergrad • Approval subject to credit check • Loan limits • Annual limit: cost of attendance less other aid • Aggregate limit: none • Interest rate variable-fixed at 6.41% until July 1, 2014 • Loan fee of 4.204% • Repayment begins 60 days after final disbursement or 6 months after student drop below half-time; • Graduate Students are eligible to apply for a PLUS loan

West Virginia Higher Education Policy Commission Institutional Aid • Academic Scholarships • Performance Scholarships • Entitlement Scholarships • Merit and Need-based Scholarships and Grant • Need-based Grants and Loans

West Virginia Higher Education Policy Commission Private Aid • Community Organizations • Churches • Employers and Labor Unions • Professional Associations • Corporations / Foundations • Private Loans

West Virginia Higher Education Policy Commission Additional Financial Resources • Inquire about tuition installment plans • Spreads tuition payments over several months • Low sign-up fees, low to no interest charged • Consider alternative loan programs • Federal non-need based educational loans • Private educational loans • Home equity or line-of-credit loans • Using Smart529 Plan • WWW.SMART529.COM

West Virginia Higher Education Policy Commission Additional Financial Resources • Check into tax benefits for education • American Opportunity Tax Credit • Lifetime Learning Credit • Educational IRAs • Deduction for interest payments on educational loans (consult your tax advisor)

West Virginia Higher Education Policy Commission ConsumerProtection • As a general rule, never pay money to get scholarships or apply for financial aid. • You do not have to pay to complete the FAFSA – do NOT use www.fafsa.com • HEPC and colleges provide free financial aid counseling and assistance

West Virginia Higher Education Policy Commission Sources of General FA Information • Websites • www.cfwv.com • Financial Aid Information Page (www.finaid.org) • U.S. Department of Education (www.studentaid.ed.gov) • www.fastweb.com • www.collegeboard.com • www.gibill.va.gov • www.givetowestvirginia.org

West Virginia Higher Education Policy Commission Academic Common Market • Selected programs not offered by colleges and universities in West Virginia • Students can receive in-state tuition at participating institutions • Go to www.sreb.org for more information

FINANCIAL AID 101