What You Need to Know About Financial Aid

1. What You Need to Know About Financial Aid Julie A. Scott Assistant Director | Office of Financial Aid

2. Tonight’s Topics What is Financial Aid Know Your Financial Aid Options Cost of Attendance (COA) Expected Family Contribution (EFC) Financial Need Types & Sources of Financial Aid How to Apply for Financial Aid Searching for Scholarships

3. What College Expenses Might I Have? TUITION & FEES ROOM & BOARD BOOKS & SUPPLIES • TRANSPORTATION • CLOTHING • LAUNDRY • CELL PHONE • MEDICAL OTHER EDUCATIONAL EXPENSES

4. How Can I Pay for College?

5. What is Financial Aid? • College can be expensive, but it can still be affordable • One Option is Financial Aid: Money awarded or loaned to students and families to help pay for educational expenses when their own resources are not sufficient

6. Cost of Attendance [COA] • Cost of Attendance equals Direct plus Indirect costs • Varies widely from college to college • Sets the maximum amount of aid you can receive

7. HowMUCHMight College Cost Per Year? In-State University 4 Yr Public $5,995 $6,560 $975 $3,450 $16,980 Tuition & fees Room & board Books & supplies Other expenses Total Private University 4 Yr Private $22,238 $6,390 $1,079 $5,392 $35,099 Community College 2Yr Public $2,460 $5,150 $1,000 $1,800 $10,410 Out-of-State University 4 YrPublic $16,630 $8,000 $1,030 $4,480 $30,140

8. Expected Family Contribution [EFC] • Amount the family can “reasonably” be expected to contribute toward the student’s education • Stays the same regardless of college choice • Calculated using FAFSA data and a federal formula • Includes parent contribution and student contribution

9. What is Financial Need? – = COA Cost of Attendance for My College EFC My Expected Family Contribution (determined by the FAFSA) NEED My Financial Need for My College

10. Financial Need Formula in Practice • Need VARIES based on each school’s cost • Each aid package differs in the amount of aid and the type of aid (grants, work-study, loans, etc.)

11. TheCATEGORIESof Financial Aid • Demonstrate financial need • Based on family income & assets • Financial need not considered • Based on talents, skills, & abilities

12. 4BIGTypes of Financial Aid • Scholarships • Grants • Work-Study • Loans Gift Aid Merit-Based Gift Aid Need-Based Self-Help Aid Must Earn Self-Help Aid Need-Based Non-Need-Based

13. TheMAINSources of Financial Aid • State Government • Federal Government • Outside Resources • Your Institution

14. Common Federal Aid Programs • Federal Pell Grant • Teacher Education Assistance for College & Higher Education Grant (TEACH) • Federal Supplemental Educational Opportunity Grant (SEOG) • Federal Perkins Loan • Federal Work-Study • Stafford Loans • Parent/Graduate PLUS Loans

15. Federal Financial Aid: Pell Grant • Recipients: • Demonstrate “financial need” via FAFSA calculations • Undergraduates pursuing 1st bachelor’s degree • About Me: • Does not have to be repaid • Award: • Up to $5645 (2013-2014 school year)

16. Federal Financial Aid: Stafford Loans Subsidized Loans Recipients: • Demonstrate “financial need” About Me: • Must be repaid • Fixed interest rate • “Interest free” in school • 6 month grace period Unsubsidized Loans Recipients: • Not based on “financial need” About Me: • Must be repaid • Fixed interest rate • Interest accrues in school • 6 month grace period

17. Federal Financial Aid: Stafford Loans • Independent Freshmen & Sophomores are eligible for an additional $4000 in Unsubsidized Stafford Loans • Independent Juniors & Seniors are eligible for an additional $5000 in Unsubsidized Stafford Loans

18. Federal Financial Aid: Perkins Loan • Recipients: • Demonstrate “financial need” via FAFSA calculations • About Me: • Must be repaid to the institution attending • Fixed 5% interest rate • 9 month grace period • Benefits: • Deferred interest until repayment

19. Federal Financial Aid: Work Study • Recipients: • Demonstrate “financial need” via FAFSA calculations • Must obtain on-campus job • About Me: • Earned money through a bi-weekly paycheck • Benefits: • On-campus jobs are flexible with student schedule • Great resume builder

20. Federal Financial Aid: Parent PLUS Loans • About Me: • Low interest loan borrowed by the parent • Payments typically begin 60 days after final disbursement • May be deferred until the student graduates or drops below half time (additional paperwork) • Credit-based • If parent is denied, the student may receive the additional unsubsidized $4000-$5000 • Check with your student’s institution for specific instructions on how to apply

21. Alternative/Private Loans • About Me: • Applied for through private banks and companies • Credit & income-based • Student may need a co-signer • Potentially high interest rates & fees • Terms and conditions vary • READ THE FINE PRINT! • Allows a student to borrow unmet need

22. WHAT is the FAFSA? • FREEAPPLICATION FOR FEDERAL STUDENT AID • Standard form that collects demographic and financial information about the student and family • May be filed electronically or using paper form • Available in English and Spanish

23. HOW is the FAFSA Used? • Information used to calculate the Expected Family Contribution (EFC) • EFC is the amount of money a student and family may reasonably be expected to contribute toward the cost of the student’s education for an academic year • Colleges use EFC to award various forms of financial aid

24. 1 WHEN Do I Apply for Financial Aid? File your FAFSA as soon as possible after Jan. 1st. Most colleges have FAFSA filing priority dates. Some aid programs are first-come, first-served and have limited funds available. Apply EVERY year JAN.

25. WHERE Do I Apply for Financial Aid? www.fafsa.gov

26. ReasonsWHY to File Your FAFSA on the Web • Built-in edits to prevent costly errors • Skip-logic allows student and/or parent to skip unnecessary questions • Option to use Internal Revenue Service (IRS) Data Retrieval Tool (DRT) to import tax data • More timely submission of original application and any necessary corrections • More detailed instructions and “help” for common questions • Ability to check application status online • Simplified application process for future school years

27. IRS Data Retrieval Tool • While completing FAFSA on the Web, applicant may submit a real-time request to the IRS for tax data • IRS sends real-time results to applicant in new browser window • Applicant chooses whether or not to transfer data to the FAFSA

28. IRS Data Retrieval Tool • Available early February 2014 for the 2014-2015 FAFSA • Participation is voluntary • Reduces documents requested by financial aid office - - - - - - - - - - - - - - - - - - - - • Some will be unable to use IRS DRT • Filed an amended tax return • No SSN was entered • Student or parent married but filed separately

29. Federal Student Aid PIN • Website: www.pin.ed.gov • Sign FAFSA electronically • Not required, but speeds processing • May be used by students and parents throughout aid process, including future school years

30. FAFSA on the Web Worksheet • Includes instructions for the FAFSA • Asks questions that gather basic information on student and parent, if applicable • Makes filling out the FAFSA much easier

31. General Student Information • Social Security Number • Citizenship Status • Marital Status • Drug Convictions • Selective Service Registration (for males) • Level of Parents’ School Completion

32. Student Dependency Status • FAFSA asks questions to determine dependency status for federal student aid (not IRS) purposes • If all “No” responses, student is dependent • If “Yes” to any question, student is independent

33. Who is Considered Your Parent for FAFSA? • If your parents are living together, include their combined financial information (regardless of their marital status) NEW!! • If your parents are divorced or separated, include the financial information for the parent you lived with more during the past 12 months. If that parent is remarried, you must include your stepparent’s financial information. Grandparents, foster parents, and legal guardians are NOT considered parents unless they have legally adopted you.

34. Info About PARENTS of Dependent Students • Tax, income, and other financial information • Dislocated worker status • Receipt of federal means-tested benefits • Assets • Untaxed income

35. Info About STUDENT (and Spouse) • Tax, income, and other financial information • Dislocated worker status • Receipt of federal means-tested benefits • Assets • Untaxed income

36. School Information • Colleges • List up to 10 colleges to receive your FAFSA data • Add each school’s Federal School Code • Housing Options • Choose your housing plans for each college • On-Campus • With Parent • Off-Campus

37. Signatures • Required • Student • One Parent (Dependent Students Only) • Methods of Submitting Signatures • Electronic Using PIN (Preferred) • Signature Page (Print, Sign, and Mail) • Paper FAFSA

38. Frequent FAFSA Errors • Social Security Numbers • Divorced/Remarried Parental Information • Income Earned By Parents/Stepparents • Untaxed Income • U.S. Income Taxes Paid • Household Size • Number of Household Members in College • Real Estate and Investment Net Worth

39. Making Corrections • If necessary, corrections can be made by: • Using FAFSA on the Web if student has PIN • www.fafsa.gov • Updating paper Student Aid Report • Submitting documentation to college’s financial aid office

40. I Submitted My FAFSA, Now What? • FAFSA Processor sends student notification that FAFSA has been processed • Students with PIN may view Student Aid Report (SAR) online at www.fafsa.gov • Students without PIN will receive paper copy of SAR • Review SAR for accuracy • Update estimated information when actual figures are available

41. I Submitted My FAFSA, Now What? • Schools will contact you if additional information is required • Students should provide the requested documentation as soon as possible • 1 out of 3 students must complete VERIFICATION • Verification “verifies” the information submitted on the FAFSA - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - • Schools will notify you of your award offer • Students should evaluate award offers and decide which awards to decline/accept

42. Special Circumstances • Change in Employment Status • Unusual Medical Expenses Not Covered By Insurance • Change in Parent Marital Status • Unusual Dependent Care Expenses • Student Cannot Obtain Parental Information LIFE HAPPENS SOMETIMES

43. Special Circumstances • Cannot be documented using FAFSA • Send written explanation and documentation to financial aid office at each college • College may review and request additional information if necessary • Decisions are final and cannot be appealed to U.S. Department of Education

44. Scholarships • Deadlines Matterand the students who get scholarships meet them • ACT and GPA matter, but they aren’t everything • Time Well Spent • Scholarship Essays – 3 P’s • Activities Chart – “When Did That Student Sleep?” • Apply, Apply, Apply – Your student won’t win if he/she doesn’t apply

45. Scholarship Essays It’s All About How You Portray Yourself vs Personality ● Passion ● Purpose

46. Building an Impressive Application • Build a RESUMÉ containing the following information: • Education & Scholastic Achievements • Life Experience, Training, Employment • Honors, Awards, Memberships • Leadership and Community Service • Career Ambitions: Statement of Goals • References and/or Reference Letters

47. WHEREDo You Find Scholarships? • Schools • Parent’s Employer • Local Businesses • Banks, Car Dealerships, TV Stations • Community Organizations • Churches, Lion’s Club, NAACP, American Legion • www.wichita.edu/outsidescholarships [National, Regional, Local] • www.fastweb.com [National] • www.scholarships.com [National] Communities Want to Invest in Students!

48. Where Do You Find MOREScholarships? • National Competitions • Gates Millennium Scholarship • Hispanic Scholarship Fund • Jackie Robinson Foundation • Coca-Cola, Dell, Best Buy, Kohl’s Cares, Target • Institutional Awards come from the university • Some schools have automatics; others are competitive

49. State of Kansas Programs • KCG – Kansas Comprehensive Grant • KS Ethnic Minority Scholarship • KS State Scholarship • KS Teacher Service Scholarship • KS Nursing Service Scholarship • National Guard Tuition Assistance Program • Military Service Scholarship • Application & Details at www.kansasregents.org

50. WSU’s FRESHMEN MERIT Scholarships • Must be fully admittedto WSU • $1000 to $3000 per year • Renewable for three additional years • Awards offers based on: • High School GPA • High School Class Rank • National Test Score (ACT/SAT)