Financial Aid Night

1. Financial Aid Night Tonight is sponsored by: Pacific Financial Aid Association Hawaii Community Foundation Gearup Hawaii

2. Agenda • What is Financial Aid? • Cost of Attendance (COA) • Why the FAFSA? • Estimated Family Contribution (EFC) • How to apply? • What happens after I file a FAFSA?

3. What is Financial Aid? • Funds to help students & families pay for educational expenses. • Financial aid funds consist of: • Grants • Scholarships • Loans • Employment

4. Sources of Financial Aid • Federal Government • State Government • Institution or College • Private sources • Charitable, civic, church, organizations, etc. • Employers/Unions/Individuals. Etc.

5. Award Types – Free Money Grants – Free Money that you don’t have to pay back. • Pell Grant– Based on financial need from FAFSA. Same at every school. • SEOG Grant– Eligible for students with the highest need. Amount varies. $6195 Max $4000 Max

6. State Programs • Hawai‘i Promise Scholarship (UH Community Colleges Only) • “Last Dollar” award • No application, but MUST complete FAFSA • Remaining Direct Cost need after all other grants/scholarships (regardless of order received) • Minimum half-time enrollment • Must meet Satisfactory Academic Progress (SAP) requirements

7. State Programs • Hawaii B+ scholarship (UH schools only) • 3.00 HS GPA, HS transcripts needed • Public HS with rigorous curriculum • Financial Need • Western Undergraduate Exchange (WUE) Program • Reduced tuition rate • Check for participating colleges • Application process varies by college

8. Loans - Money to be repaid Maximum for Freshman – up to $3,500 Subsidized plus $2,000 Unsubsidized for a total $5,500. Federal Direct Loans – 4.53% • Subsidized-Need based, no interest while in school • Unsubsidized-Non-need based, continuous interest accrual • Amount based on grade level classification (credit amount) • Interest determined every new school year • Begin repayment 6 months after graduation or withdrawal PLUS loans (Parent Loans) – 7.08% Remaining COA • Accrues Interest • Loans that parents borrower for dependent students • Credit check needed for eligibility Maximum $ = Cost of attendance Minus Financial Aid

9. Employment: Federal Work Study - FWS • provides part-time jobs for students with financial need, allowing them to earn money to help pay education expenses. • The program encourages community service work and work related to the student's course of study. • Student paid by federal funds. Answer ‘yes’ on FAFSA and if awarded check with Financial Aid Office for procedures

10. Where else do I look? • Financial Aid / Admission Office Websites • High School Counselor Office • Internet Search (Google ‘scholarships’) • ksbe.edu/finaid • pauahi.org • hawaiicommunityfoundation.org • fastweb.com • finaid.org

11. Cost of Attendance (COA)how much will it cost to go to college? • Tuition (Resident, non-Resident) & required fees • Books & Supplies • Living Costs – room & board, personal expenses • Transportation • Computer • Travel (interisland, mainland, holidays) • Other(Dependent care, disability related expenses, study abroad)

12. Cost of Attendance Varies

13. Are there other costs? There may be other costs that may not/cannot be included in the Cost of Attendance: • Airfare (ask what/how much is included) • Family Travel costs to take your student to school: • Airfare for family; hotel; car; food; etc. • Start-up Dorm/housing expenses: • Housing Deposit • Linen; towels; small appliances; toiletries; etc.

14. Why the FAFSA?(Free Application for Federal Student Aid) Philosophy of financial aid: It is the family’s primary responsibility to pay for higher education to the ability that they are able. FAFSA is a fair and equitable way to determine this.

15. FAFSA • Helps financial aid office determine types of financial aid • Required to determine Federal financial aid eligibility • Determines EFC or Expected Family Contribution

16. EFC: Expected Family Contribution • Calculated using a federal formula and data from the FAFSA • Determines financial need Stays the same regardless of college

17. Financial NeedCOA – EFC = NEED

18. EFC = Parent Contribution + Student Contribution ParentContribution from Income: • Taxable Income • Non-taxable Income • Income off-sets: • US Taxes • State & other allowances • Income Protection (based on number of family and college) • Employment Expenses ParentContribution from Assets: • Cash, Savings, Checking Accounts • Net Worth Investments (Do not include home you live in; do not include retirement savings accounts) • Business/Farm Worth • MINUS Asset Protection (based on age of older parent) 12% of remaining assets are considered contribution

19. EFC = Parent Contribution + Student Contribution Student Contribution from Income: • Taxable Income • Non-taxable Income • MINUS Income off-sets: • US Taxes • State & other allowance (4-5% of total income) • $6,840 Income Protection 50% of remaining income is contribution Student Contribution from Assets: • Cash, Savings, Checking Accounts • Net Worth Investments (Do not include home you live in; do not include retirement savings accounts) • Business/Farm Worth 20% of assets are considered contribution

20. EFC = Parent Contribution + Student Contribution

21. Financial NeedCOA – EFC = NEED Positive Need = amount of “Need” based aid a school can offer Negative Need = ‘non-Need’ and/or Merit aid Financial Aid cannot exceed COA. Financial Aid includes ALLgrants, scholarships, loans, work awards

22. How do I apply for FAFSA?

23. www.fafsa.gov

24. myStudentAid mobile app

25. Create an FSA ID atfsaid.ed.gov Who needs an FSA ID and Why? • Student • One Parent; if student must provide parent information Sign FAFSA electronically Required to access all Financial Aid Information • IRS Data Retrieval Tool • https://studentloans.gov (student loan website) • www.nslds.ed.gov (Federal financial aid history) Can be used in subsequent school years

26. Getting Started • Go to StudentAid.gov/fsaid • Click the “Create Your FSA ID Now” button 26

27. What information do I need to file a FAFSA? FSA ID (will need Social Security Number, email, phone) • Student • Parent 2018 Income & Benefits Information • U.S. Tax Returns (or equivalent) • Earnings & other income statements (W-2, bank statements, investment statements, etc.) • IRS Data Retrieval Tool (within FAFSA) Current Asset Information (exclude home you live in) • Cash, Savings, Checking, Investments, Value and debt

28. What information do I need to file FAFSA?

29. IRS Data Retrieval Tool • The IRS Data Retrieval Tool (IRS DRT) allows students and parents who filed a U.S tax return with the Internal Revenue Service (IRS) to access the IRS tax return information needed to complete the Free Application for Federal Student Aid (FAFSA), and transfer the data directly into their FAFSA. • If you are eligible to use the IRS DRT, it is highly recommend to use the tool for several reasons: • It's the easiest way to provide your tax return information. • It's the best way of ensuring that your FAFSA has accurate tax information. • You won't need to provide a copy of your or your parents' tax returns to your college. • If you use the IRS DRT to transfer your tax return information from the IRS, the information will not display on your FAFSA. For your protection, the answer to each question is replaced with "Transferred from the IRS."

30. IRS Data Retrieval Tool - How to use it From the “Financial Information” tab 1) Select “Already Complete” 2) Input “Filing Status” 3) Click “Link to IRS”

33. IRS Data Retrieval Tool (DRT)

34. IRS DRT (Parent) Data Transfer Options These areas are now encrypted and greyed out due to new IRS security Protocol put in place to keep your information private!!!!

36. What happens after I file the FAFSA? • Emailnotification of official results sent to STUDENT (Student Aid Report or SAR) 3 days – 3 weeks. • Reviewyour FAFSA comments and results. Make necessary corrections. • Information sent to colleges • Work with schools to complete any additional documentation • Receivefinancial aid award notification

37. What is Verification? • Verification is the process used to confirm that the data reported on the FAFSA form is accurate. • School will request additional documentation that supports the information reported • Sample information: family size; tax return transcripts; high school diploma; government identification. Don’t assume you’re being accused of doing anything wrong. Some people are selected at random; some schools verify everyone. Provide documentation your school asks for – and be sure to do so by the school’s deadline, or you won’t be able to get financial aid.

38. Special Circumstances • Conditions exist that cannot be documented with the FAFSA • Send written explanation and documentation to your college’s financial aid office • College will review and request additional information if necessary • Decisions are final and cannot be appealed to U.S. Department of Education

39. Secondary school tuition Special Circumstances Unusual uncovered medical/dental expenses Extraordinary dependent care Parent or spouse death Student cannot obtain parental information Loss of employment Divorce

40. Mahalo • Tonight was sponsored by: • Pacific Financial Aid Association • Hawaii Community Foundation • Gearup Hawaii

41. Mahalo & Best WishesIf you have any questions you may contact me. Please let me know you attended a workshop…. Jennifer BradleyFinancial Aid Manager Kapiʻolani Community College Direct Line: 734-9890 Email: jbradley@hawaii.edu Main Office Line: 734-9537 to speak to any financial aid specialist