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Applying for Financial Aid 2006-2007

Applying for Financial Aid 2006-2007. Presented by the Minnesota State University, Mankato Student Financial Services. What Will You Learn Today?. Sources and types of financial aid Required financial aid application forms

justin-jenkins
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Applying for Financial Aid 2006-2007

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  1. Applying for Financial Aid 2006-2007 Presented by the Minnesota State University, Mankato Student Financial Services

  2. What Will You Learn Today? • Sources and types of financial aid • Required financial aid application forms • How to complete the Free Application for Federal Student Aid (FAFSA) • Answers to your individual questions

  3. Application Process • Submit the Free Application for Federal Student Aid (FAFSA) prior to your school’s deadline • To ensure maximum consideration for federal, state, and institutional aid, check information from each school to determine: • Required application materials • Application deadlines

  4. Sources of Financial Aid • Federal government • State government • Colleges and universities • Private agencies, companies, foundations, and your parents’ employers

  5. EXPECTED FAMILY CONTRIBUTION FOR DEPENDENT STUDENT • Parent Income • Student Income • Untaxed Income • Exclusions • Assets • Family Size • Number Attending College

  6. Types of Aid • Gift Aid -Grants or scholarships that do not need to be repaid • Work - Money earned by the student as payment for a job on or off campus • Loans - Borrowed money to be paid back, usually with interest

  7. Need-Based Grants • Minnesota State Grant • Maximum varies according to cost of school • May qualify with higher EFC than Pell Grant • Federal Grants • Pell Grants • $4,050 maximum per year • Supplemental Educational Opportunity Grant (SEOG) • $4,000 maximum per year

  8. Types of Financial Aid • Self Help Aid Loans & Employment • Work-Study • Stafford Loans • Direct Loan • Perkins Loans • PLUS Loans • SELF Loans • Alternative Loans

  9. Cost of Borrowing Federal Stafford Loans • Variable Interest Rate capped at 8.25% • Interest Rate for 7/1/2005-6/30/2006 is 4.70% (Unsubsidized Stafford, in-school rate)

  10. FAFSA Information & Tips • File as soon as possible after January 1, 2006 • May use estimated 2005 income information if taxes are not complete at time of FAFSA submission • Student and at least one parent whose information is reported must complete and sign the FAFSA

  11. Federal PIN • PIN (Personal Identification Number) serves as the electronic signature on ED documents • Both student and at least one parent need PIN • May be used to: • Check on FAFSA status • Verify and correct FAFSA data • Add additional schools to receive FAFSA data • Change home and e-mail addresses • If an e-mail address is provided, PIN will be e-mailed to the PIN applicant within hours • Apply for student and parent PINs TODAY at: www.pin.ed.gov

  12. Getting Ready • Before starting the FAFSA, gather: • Student driver’s license • Student Alien Registration Card • Student and Parent • Social Security cards • 2005 W-2 Forms and other records of money earned • 2005 federal income tax form (even if not completed) • Records of untaxed income • Current bank statements • Business, farm and other real estate records • Records of stocks, bonds and other investments Create a file for copies of all financial aid documents submitted

  13. 1 5 E L M S T Getting Started • Read all application instructions • If planning to submit the paper FAFSA: • Use pen with black ink • Print clearly in CAPITAL letters: • Fill in ovals completely: • Do not leave blanks (unless directed by instructions) • Do not write comments or notes anywhere on form • Do not use correction fluid

  14. The FAFSAA Seven-Step Process Step One-- is about the student Step Two-- asks for student income and assets Step Three-- determines student dependency status Step Four-- requires parental information for dependent students Step Five-- is for independent students only Step Six-- allows the student to list up to six schools Step Seven-- Certification Statement asks for signatures and submission date of the FAFSA

  15. #9 Date of Birth 0 2 0 9 8 7 – Be careful not to write the current year for student’s date of birth #1-3 Name L JONES SUSAN #8 Social Security Number • –List the student’s name and Social Security number exactly as they appear on the Social Security card (both will be compared through a database match process) 123 6 78 9 4 5 PAGE 3 – Step One

  16. #13 E-mail Address YAHOO.COM SJONES • Fill in the student e-mail address that will be valid at least until the student starts college PAGE 3 – Step One

  17. #14 Citizenship Status • If U.S. citizen, status will be confirmed by Social Security match • If eligible non-citizen, status will be confirmed by Department of Homeland Security (DHS) match. This includes: • U.S. permanent residents with I-551 • Conditional permanent residents with I-551C • Eligible non-citizens with I-94 • If neither A nor B, student is ineligible for federal/state aid, but might still be eligible for state or institutional funds PAGE 3 – Step One

  18. #15 Alien Registration Number 0 1 2 3 4 5 6 7 8 If eligible non-citizen, write in the student’s eight- or nine-digit Alien Registration Number (ARN) • Precede an eight digit ARN with a zero • Copy of Permanent Registration Card might be requested by the financial aid office PAGE 3 – Step One

  19. #18-20 Student’s State of Legal Residence CA • Residency relates to the student’s permanent home state • if the student is dependent, the state of legal residence is usually the state in which the custodial parents live • State of legal residence is also used • in the need calculation to determine the appropriate allowance for state and other taxes paid by that state's residents • to determine eligibility for state grants PAGE 3 – Step One

  20. Answer “yes” only if the student is male, aged 18-25, and has not yet registered. The student may also register by going to: • www.sss.gov #22 #21-22 Selective Service Registration • Male students who are 18 years of age or older must be registered with Selective Service to receive federal and state aid PAGE 3 – Step One

  21. #24 Grade Level 0 • Indicate the student’s grade level beginning with the 2006-2007 school year #23 Degree Objective 1 • Indicate the student’s most immediate degree or certificate objective for 2006-2007 PAGE 3 – Step One

  22. #26 First Bachelor’s Degree? #25 High School Diploma or GED? • Requirement to receive Federal and State Aid • Home schooling may fulfill requirement • If high school senior, the answer is ‘NO’ PAGE 3 – Step One

  23. #27-28 Student Loans and Work-Study • If the student is interested in either student loans or student employment, mark “yes” to each question • Answering “yes” does not obligate the student either to borrow or to work, nor will it cause the student to lose grants and scholarships • Answering “no” may restrict some options for limited loans and work-study funds PAGE 3 – Step One

  24. #27-28 Student Loans and Work-Study • If the student is interested in either student loans or student employment, mark “yes” to each question • Answering “yes” does not obligate the student either to borrow or to work, nor will it cause the student to lose grants and scholarships • Answering “no” may restrict some options for limited loans and work-study funds PAGE 3 – Step One

  25. #29-30 Parents’ Educational Level • Indicate highest level of schooling completed by biological or adoptive parents (for state award purposes only) • Use birth parents or adoptive parents - not stepparents or foster parents • This definition of parents is unique to these two questions PAGE 3 – Step One

  26. #31 Drug Conviction Question DO NOT SKIP THIS QUESTION The student should: • Answer “NO” if: • Conviction was for alcohol or tobacco • Conviction was removed from record or occurred before age 18 (unless tried as an adult) • Answer “YES” if the student has been convicted of possessing or selling illegal drugs PAGE 3 – Step One

  27. Step Two:Student Income and Asset Information #32-45 Questions are identical to those we will cover in the parents’ income and asset section of Step Four. In Step Two: • Report the student’s 2005 income and current assets • If student is single, ignore references to “spouse” • If student is married, report spouse’s income and assets • Complete Worksheets A, B, and C for the student on Page 8 PAGE 4 – Step Two

  28. #46-47 Student Veterans’ Education Benefits 00 0 • If student is eligible for veterans’ education benefits, report monthly amount expected. (If not applicable, answer zero) • Number of months should equal number of months attending school. (If not applicable, answer zero) For more information, contact the VA at: (800) 827-1000 or www.va.gov PAGE 4 – Step Two

  29. Step Three: #48-54 Determination of Dependency Status • If the student answered “no” to all questions in this step, go to Step Four. For FAFSA filing purposes, the student is considered a dependent student and is required to provide parental information • If the student answered “yes” to any question in this step, skip Step Four and go to Step Five. For FAFSA filing purposes, the student is considered an independent student PAGE 4 – Step Three

  30. Step Four:Parent Information • See Page 7 of FAFSA instructions about who is considered a parent • Biological or adoptive parent(s) • Stepparent • Regardless of any prenuptial agreements PAGE 5 – Step Four

  31. Step Four:Parent Information (cont.) • Do not provide information on: • Foster parent(s) • Student is automatically considered an independent student • Legal guardian(s) or grandparent or other relative • Must attempt to get biological parental information if guardianship ends at age 18 • Colleges may use Professional Judgment to allow the student to file as an independent student PAGE 5 – Step Four

  32. #56 Month and year parents were married, • separated, divorced, or widowed M M Y Y Y Y #55 Parents’ Marital Status as of Today PAGE 5 – Step Four

  33. #57-64 Father’s and Mother’s SSN, Last Name, First Initial, and Dates of Birth P 23 4 7 89 0 JONES 5 6 59 0 5 0 3 M 00 0 PARKE R 0 00 0 60 0 7 1 9 0 0 NOTE: This information should be provided for theparents who are required to give information for Step Four PAGE 5 – Step Four

  34. #65 Parent Household Information 0 5 • Include in parents’ household: • the student applying for financial aid • the custodial parent(s) • parents’ other dependent children, if parents provide more than half their support or the children could answer “no” to every question in Step Three, regardless of where they live • other people, if they now live with the parents, and if the parents provide more than half their support, and will continue to provide that level of support from 7/1/06 through 6/30/07 PAGE 5 – Step Four

  35. #66 Family Members Attending College 2 • Always include the student even if he/she will attend college less than half-time in 2006-2007 • Include other household members from #65 only if they will attend at least half time in 2006-2007 in a program that leads to a college degree or certificate • Always exclude parents NOTE: Some financial aid offices will require proof that other family members are attending college PAGE 5 – Step Four

  36. Y Y Y Y M M #67-69 Parents’ State of Legal Residence CA • Question #67: Indicate the two-digit state code for parents’ permanent address • If the answer to #68 is “no,” in Question #69, enter the month and year residency began for the parent who has been a legal resident of that state the longest PAGE 5 – Step Four

  37. , $ 0 , $ 2 (no cents) 1 3 5 6 Step Four:Parent Income and Asset Information • If the answer to any question is zero or the question does not apply, enter 0: • Report whole dollar figures: • Recommendation: If parents have not filed their 2005 federal tax return, use W-2 forms and/or other employment records to estimate total income PAGE 5 – Step Four

  38. #70-72 Parent Tax Return Filing Status for 2005 • Indicate parents’ current tax filing status for 2005 • Which tax return did or will parent(s) file for 2005? • Even if parent(s) did not file a 1040A or 1040EZ, read the instructions to see if they would have been eligible to do so #70 #71 #72 PAGE 5 – Step Four

  39. #73-75 Parent Income and Tax Information 452 5 0 2130 • If parents have not yet filed their 2005 federal tax return information, it is okay to estimate information for these questions • If parents have completed their 2005 federal tax return, use 2005 tax return information to fill out Questions #73-75. Pay attention to specific line-items Reminder: If the answer is zero or the question does not apply, enter 0 05 PAGE 5 – Step Four

  40. #76-77 Money Earned from Work by Parent(s) 40500 1 3200 • This figure is often different than the adjusted gross income figure on the parent tax return. Use W-2 forms and other records to list all income in 2005 earned from work (including income earned from self-employment) PAGE 5 – Step Four

  41. #78 Worksheet A: Untaxed Income & Benefits 1250 1250 • To answer, carefully complete the right column of Worksheet A (Page 8 of instructions) • NOTE: Students should keep a copy of the worksheet because the financial aid office may request a copy PAGE 5 – Step Four

  42. #79 Worksheet B: Untaxed Income & Benefits 1700 6200 500 8400 PAGE 5 – Step Four

  43. Totals from Worksheets A, B, and C should be entered in Questions 78, 79, and 80 on Page 5 of the FAFSA 1250 8400 0 #80 Worksheet C: Exclusions to Income 0 PAGE 5 – Step Four

  44. , $ 0 , $ 9 9 9 9 9 9 Step Four:Parent Asset Information #81-83 • List the net value of parent assets as of the day the FAFSA is completed • If net worth is one million dollars or more, enter • If net worth is zero, enter 0 (do not leave blank) NOTE: Some financial aid offices may request supporting documentation for the answers to these questions PAGE 5 – Step Four

  45. #81 Parent Asset Information (cont.) 2155 • Report the current balance of cash, checking and/or savings accounts as of the day you complete the FAFSA PAGE 5 – Step Four

  46. #81-83 Parent Asset Information (cont.) 5000 7900 • Net Worth means current value minus debt • Investmentsinclude: • real estate (other than parents’ home) • trust funds • money market and mutual funds • certificates of deposit • stocks and stock options • bonds and other securities • Coverdell IRAs • college savings plans including 529(c) plans for parents and all children including the student applicant • installment and land sale contracts • commodities, etc. 0 PAGE 5 – Step Four

  47. #81-83 Parent Asset Information (cont.) 5000 7900 • Business/Investment Farm includes: • market value of land, buildings, machinery, equipment, and inventory. Debt means only those debts for which the business was used as collateral 0 NOTE:DO NOTinclude the home you live in, the value of life insurance and parent retirement plans (pension funds, annuities, non- education IRAs, Keogh plans, etc), or the value of any prepaid tuition plans PAGE 5 – Step Four

  48. Step Five: (Independent Students)Household Information #84 • Complete this step only if the student answered “yes” to any question in Step Three (Questions 48-54) • Include in the student household: • the student (and spouse if there is one) • student’s children, if the student will provide more than half their support • other people, if they now live with the student and the student provides more than half their support, and will continue to provide that level of support from 7/1/06 through 6/30/07 Dependent Students SKIP THIS STEP PAGE 6 – Step Five

  49. Step Five: (Independent Students)Family Members Attending College #85 • Count the student even if he/she will attend college less that half-time in 2006-2007 • Include others counted in #84 only if they will attend at least half-time in 2006-2007 in a program that leads to a college degree or certificate Dependent Students SKIP THIS STEP PAGE 6 – Step Five

  50. Step Six: #86-97 School Information INDEPENDENT UNIVERSITY 001117 PA COMMUNITY COLLEGE ABC MA 01 2345 STATE UNIVERSITY LA 023456 UNIVERSITY IN ARIZONA AZ 034567 PAGE 6 – Step Six

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