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High School Counselor Workshop for Financial Aid 2008-09 Presented by Indiana Student Financial Aid Association (ISFAA) and State Student Assistance Commission of Indiana (SSACI). Adapted from material provided by the National Association of Student Financial Aid Administrators (NASFAA).
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High School Counselor Workshop for Financial Aid 2008-09Presented by Indiana Student Financial Aid Association (ISFAA) andState Student Assistance Commission of Indiana (SSACI) • Adapted from material provided by the National Association of Student Financial Aid Administrators (NASFAA)
Agenda • Introductions • Information in Packets • Financial Aid Basics • State Student Assistance Commission of Indiana (SSACI) Programs • 2008-09 Free Application for Federal Student Aid • Questions and Answers
What is Cost of Attendance (COA) • Direct Costs (Fees / Room & Board) • Indirect Costs (Books & Supplies/Travel / Miscellaneous & Personal Expenses) • Direct/Indirect Costs are combined into Total Cost of Attendance • Varies from college to college
What is the Expected Family Contribution (EFC) • Amount family can reasonably be expected to contribute • Calculated using FAFSA data and a federal formula • Stays the same regardless of college • Two Components • Parent Contribution • Student Contribution
What is “Financial Need” • Cost of Attendance • Less Expected Family Contribution • Equals Financial Need
Categories of Financial Aid • Need-Based (demonstrating financial need is a requirement) • Non Need-Based (awarded on ‘merit’ or talent, or other criteria)
Types of Financial Aid • Scholarships • Do not have to be re-paid • Awarded on the basis of merit, skill, or a unique characteristic • Grants • Do not have to be re-paid • Usually awarded on the basis of financial need • Loans • Students borrow loans to help pay educational expenses • Repayment usually begins after education is finished • Only borrow what is needed • Look at loans as an investment in the future
Employment • Allows student to earn money to help pay educational costs • Obtain a paycheck or • May earn non-monetary compensation, such as room/board • Funds earned during summer can help offset costs during the academic year
Sources of Financial Aid • Federal Government • States • Institutions • Private Sources
Federal Government • Largest source of financial aid • Aid awarded primarily on the basis of financial need • Must apply every year using the FAFSA
General Eligibility Requirements • Enrolled in an eligible program of study • Degree seeking (or eligible certificate or other recognized credential program) • U.S. Citizen or eligible non-citizen (ACG/Smart Grant recipients must be a U.S. Citizen) • If male, must be registered with Selective Service (can register on-line, if needed, at: www.sss.gov) • Must not have had eligibility suspended or terminated due to a drug-related conviction while receiving financial aid • Must have a valid social security number • May not be in default of a student loan or owe repayment of a federal grant • Must meet Satisfactory Academic Progress as defined by college
Federal Title IV Programs • Grants/Scholarships • Pell Grant (maximum for 2008-09 is $4800) • Academic Competitiveness Grant • SMART Grant • Supplemental Educational Opportunity Grant Self Help • Federal Work Study Program • Federal Perkins Loan • Stafford or Direct Loan • Parent Loan for Undergraduate Students (PLUS)
States • Residency requirements • Award aid based on both merit and financial need • States use information from the FAFSA • Deadlines vary by state • State Student Assistance Commission of Indiana (SSACI) administers Indiana’s programs (add’l information later)
Private Sources • Foundations, business, charitable organizations, churches, employers • Deadlines and application procedures vary widely • Research private aid sources early! • FastWeb.com • Small scholarships add up!
NEW!Academic Competitiveness Grant (ACG) • Must be Pell Grant Recipient • Eligibility $750 first academic year • $1300 second academic year • Must have a GPA of > 3.0 at end of first academic year • US Citizenship required • Must be enrolled full-time • Must have completed a rigorous course of study (defined) @ http://www.ed.gov/admins/finaid/about/ac-smart/state-programs06.html Indiana colleges may identify Core40 / Academic Honors students on SSACI data base; final awards dependent on verification using final high school transcript. Indiana students without Core40/Academic Honors can check with enrolling college for other “rigorous courses of study”.
Further Information about ACG • SSACI database (CHIPS) is an accessible source for colleges to determine preliminary eligibility for ACG grant • Definition of Academic Year is very specific for ACG and can vary between colleges. • Students limited to one ACG for each of their 1st and 2nd academic year
NEW!National Science and Mathematics Access to Retain Talent (SMART) Grant • Must be a Pell Grant Recipient • Maximum award $4,000 (3rd and 4th year) • US Citizenship required • Must maintain 3.0 GPA • Bachelor’s Degree Program • Enrolled Full-time • Statutory requirement to major in one of the physical, life, or computer sciences, math, technology, engineering, or a critical foreign language • Questions? The college financial aid office can provide information
Campus-based Programs • Supplemental Educational Opportunity Grant, Work Study, Perkins Loan • Colleges determine recipients and award amounts (rather than Department of Education. Some college do not participate. • Some colleges choose not to participate in the campus-based aid programs.
Federal Supplemental Education Opportunity Grant (FSEOG) • Students pursuing first bachelor’s or professional degree • Awarded first to students with exceptional “need” • Can be awarded to students attending below full time enrollment • Annual award Maximums: $4,000 Federal Workstudy • Allows student to earn a set amount of dollars for their education • Eligible employers may be on/off campus (federal, state, or local public agency) • Student usually awarded funding to work 15-20 hours per week. Studies indicate workload does not negatively impact student’s grades • Schools must use a portion of funding offered for community service
Federal Perkins Loan • Priority to students who show exceptional need • $4,000 annual maximum undergraduates • $20,000 annual maximum graduates • Revolving loan fund – amount college has to lend depends upon repayments received • Interest rate: 5% • Repayment period may be up to 10 years • Deferment and cancellation provisions available
Federal Stafford Loans • Available under: • Federal Family Education Loan Program (FFEL Program) with funds provided by lender (e.g., bank or credit union) • William D. Ford Federal Direct Loan Program (Direct Loan Program) with funds provided directly by the federal government • College determines in which program it participates • College determines loan eligibility and delivers loan proceeds to the student
Federal Stafford Loans (Subsidized and Unsubsidized) • Subsidized Stafford: Must demonstrate need • Cost of Attendance – EFC – other aid = Stafford Loan • Unsubsidized Stafford: “Need” is not a consideration so most student can qualify • Annual Loan Limits • $3500* for 1st year undergrad • $4,500* for 2nd year undergrad • $5,500 for each remaining undergraduate year • $8,500 for each year of graduate/professional study • Undergraduate Aggregate Loan Limits • $23,000 dependent student • $46,000 independent student
Additional Unsubsidized Stafford Loan • Dependent students whose Parents are denied access to the Parent Loan for Undergraduates Students (PLUS) program may be eligible for Additional unsubsidized loan eligibility ($4,000 Freshmen/Sophomore and $5,000 for Junior/Senior). Independent students are also eligible. Graduate/Professional students can borrow $12,000/year.
Federal PLUS Loans • Borrowers are PARENTS of dependent undergraduate students or GRADUATE/PROFESSIONAL students • Annual loan limit: cost of attendance minus other aid
Federal PLUS Loans (Cont’d) • Repayment begins 60 days after loan is fully disbursed - i.e. after second semester disbursement • Deferment provisions; only principal is deferred; interest accrues • Credit check required – if not passed, undergraduate student may be able to borrow additional unsubsidized Stafford loan funds
Other Government Resources • Veterans benefits • ROTC scholarships and/or stipends • Bureau of Indian Affairs (BIA) grants • Health and Human Services loan and scholarship programs • State Divisions of Vocational Rehabilitation • State grants, scholarships, loans, and work programs (i.e. SSACI)
Other Misc. Sources of Funds • Institutions may offer other financial assistance based on financial need and/or merit (academic/athletic/other talent or attributes) • Private organizations offer scholarships • Alternative education loans • Tax Credits: • IRS federal tax income credits (dollar-for-dollar reduction in tax liability) for educational expenses • Hope Tax Credit (first and second year up to $1500 per student) • Lifetime Learning Tax Credit (tax benefit to 20% of tuition expenses up to $10,000) Scholarships/awards which are not federal, state, or college funded must be reported to the Financial Aid Office at the college so that they may be included in the student’s financial aid package
Free Application for Federal Student Aid (FAFSA) • A standard form that collects demographic and financial information about the student and family and is used to calculate the Expected Family Contribution • The amount of money a student and his/her family may reasonably be expected to contribute toward the cost of the student’s education for an academic year • Colleges use the EFC to award financial aid • File no earlier than January 1, 2008 and meet State deadlines (and colleges may set funding deadlines as well) • Carefully read about assets that are (or are not) to be reported.
FAFSA Database Matches After Submission To The Federal Processor • Social Security Administration (SSN) • Immigration and Naturalization Services (Citizenship) • Selective Service System • National Student Loan Data System (previous aid) • If FAFSA does not pass a database match, it will cause delays in processing and a need to verify data
FAFSA Processing Results • Student will be notified of processing results by • (Paper) Student Aid Report if paper FAFSA filed and student’s e-mail address was not provided • SAR Acknowledgement if FAFSA on the Web filed and student’s e-mail address was not provided; • (Electronic) e-mail notification with direct link to student’s on-line SAR if student’s e-mail was provided on FAFSA • Student with PIN may view SAR on-line at www.fafsa.ed.gov • Review data for accuracy! Update estimated tax filing information when actual figures are available.
FAFSA Processing Results • Colleges/States receive Institutional Student Information Record (ISIR)10-14 days after FAFSA submitted • Colleges/States review ISIR and may request additional documentation (such as tax returns) • Students/Parents must meet deadlines for submission of additional documentation (and both the state and the college ask for the information separately).
FAFSA Corrections • If a correction to FAFSA data is needed, • Quickest Way: On-line www.fafsa.ed.gov using a PIN (Personal Identification Number) • If dependent student, then BOTH parent and student need to have a PIN number to electronically sign for changes to the FAFSA • Paper SAR: correct, sign, and return to federal processor (student and parents must sign) • College: Many colleges correct; some do not.
What is an Independent Student? Must be able to answer “yes” to at least one of the following: • Age: 24 years old by December 31st • Is a Graduate or professional student; • Married at the time FAFSA is filed; • Provides greater than ½ support for a legal dependent (other than a spouse) • Is an Orphan or ward of the court; • Veteran of the U.S. Armed Forces • Student currently serving on active duty in the U.S. Armed Forces for purposes other than training
Special Circumstances Special Circumstances (information not reported on the FAFSA) can exist. Regulatory authority is provided by the federal government to financial aid administrators to exercise discretion (Professional Judgment) in specific areas of student aid administration on a case by case basis • Dependency Status (from dependent to independent) • Can make changes to data elements that affect the calculation of the Parent/Student Contribution (drastic changes in income due to death, disability, disasters, divorce or total unemployment) • Cost of Attendance or Budget • Satisfactory Academic Progress • Denial or reduction of student loan eligibility Student should contact the financial aid administrator at the college they plan to attend
Verification The effectiveness of the federal student financial aid programs depends on the accuracy of data students report on the FAFSA. The student may be selected by the Central Processing System (CPS) to verify information or to otherwise resolve conflicting information which may include (but is not limited to) the following: • Number in household • Number enrolled in college (can not include parents in college) • Adjusted Gross Income (AGI) • US income tax paid • Certain untaxed income and benefits • Documents Required Can Include: • Signed copies of student/parent federal tax return • Verification Worksheet (provided by College) • Other financial documents and/or child support documentation requested by the college
Construction of the Financial Aid Package • Generally speaking, a college will construct a financial aid package in this order: • 1st: gift aid from the federal and state programs for which a student is eligible • 2nd: college and/or private donor gift aid (can include non-need based aid) • 3rd: self-help programs (loan and work) • Many colleges also include PLUS loans (that can meet any remaining financial need and ‘replace’ the Estimated Family Contribution)
The First Award Letter May Not Be the Student’s Final One! • New freshmen (or transferring students) may be applying to several colleges in which they are interested. The schools will send a student a preliminary award letter so that decisions may be made, housing contract deadlines met, and time given to the student/parents to decide on whether additional financing decisions should be made (i.e. student loans) Later, the following reasons could cause a REVISION to an initial award letter: • Additional resources are added (An outside award was added or the school awards a scholarship. Typically, ‘self help’ aid (work/loans) is reduced to make room for the scholarship(s) • Student is chosen for verification which can result in a revised Estimated Family Contribution • Student/Parents changed FAFSA data • College housing changes (on/off campus, live at home) • Student changed enrollment status or major which can result in a change in fees and/or other costs of education • (Returning Students) Satisfactory academic progress was not met
State Student Assistance Commission of Indiana (SSACI)317.232.23501-888-528-4719www.ssaci.in.gov
SSACI OVERVIEW • SSACI Programs • Information Resources for guidance counselors • Information Resources for general public • Student state grant account access • FAFSA Questions for SSACI Purposes • SSACI Edit Corrections, Notification, and deadlines • How to Calculate SSACI state grant • CHIPS • Timeline
SSACI Programshttp://www.in.gov/ssaci/programs Frank O’Bannon Grant -Higher Education Award (HEA) -Freedom of Choice Grant (FOC) -Academic Honors and Core 40 Diploma Enhancements Supplemental Grants to the Frank O’BannonGrant -Twenty-first Century Scholars Scholarship -National Guard Supplemental Grant Part Time Grant Child of Veteran/Public Safety Officer Supplemental Grant Special Programs -Hoosier Scholar Award -Robert C. Byrd Honors Scholarship Program -Minority Teacher and Special Education Services Scholarship -Nursing Scholarship Program -State Work-Study Program
Frank O’Bannon Grant • The full-time grant is targeted to cover tuition and regularly assessed fees, is “need-based” and does not require repayment • The Frank O’Bannon Grant includes both the Higher Education Award (HEA) and Freedom of Choice Grant (FOC) • Must be enrolled full-time at the end of the 4 week SSACI refund period or college refund period, whichever is shorter
SSACI Programswww.in.gov/ssaci/programs • Frank O’Bannon Grant and Supplemental Grant funds are awarded for a total of four years (eight semesters or equivalent) and must be used within a ten year timeframe beginning from the time when the grant funds are first used • Funds for most SSACI programs go towards tuition and regularly assessed fees only (exception e.g.: Hoosier Scholar) in appropriations, the number of filers, and the “need” of the filer base, the dollar value of state grants might vary from year to year
Twenty-first Century Scholars Scholarship • With the pledge of good citizenship to the state students are guaranteed 100% tuition and regularly assessed fees at four year public colleges tuition at any participating public college in Indiana for up to 30 credit hours per fall/spring. Amount of family income is a criteria for eligibility. If the student attends a private institution, the state will award an amount comparable to that of a public institution. If the student attends a participating proprietary school, the state will award a tuition scholarship equal to that of Ivy Tech State College. • Opportunity to participate in early intervention program to help more students to continue their education, reduce the high school drop out rate, prepare students for the workforce, reduce the use of drugs and alcohol between the middle and high school students, and improve the individual economic productivity and quality of life for Indiana residents • Enroll in 7th , or 8th grade * • Graduate from IDOE accredited high school with 2.00 GPA on a 4.00 scale, not use illegal drugs or alcohol, or commit a crime, apply for admission to an eligible Indiana college, university or proprietary school as a high school senior, and apply on time for state and federal financial aid. • Affirmation Pledge completed in 12th grade received by March 10, 2008 • 7th semester GPA reported (via SEAS database) by March 21, 2008 • 8th semester GPA reported (via SEAS database) by June 27, 2008 • Exit Interview with Twenty-first Century Scholar program staff • FAFSA received by March 10th and resolve FAFSA error corrections received with the federal processor on or before June 10, 2008 • Enroll in college no later than 2 years after high school graduation. If entrance to school is postponed, in order to remain eligible, the student must still file the FAFSA those two years by March 10th, and FAFSA edit resolution with the federal processor by the state June deadline • More Information will be forthcoming on the process for 6th graders including date of first applications, applications, and application process beginning July 1, 2008
SSACI Website www.ssaci.in.gov “Counselor Information” Section • “Counselor Information” provides up to date: • ADVISORIES on state grant resources available for your reference in mentoring students • NEWS/UPDATES on SSACI state award programs, and SSACI annual projects that high school counselors are involved with (e.g. CHIPS and Hoosier Scholar)
SSACI Website Counselor Information Sectionwww.ssaci.in.gov/ssaci/counselorinformation/
SSACI Websitewww.ssaci.in.gov • As a resource for students/parents and interested parties that describes the programs SSACI administers • Criteria • Deadlines * (See slide #48) • Appropriate applications
STATE STUDENT ASSISTANCE COMMISSION OF INDIANA(SSACI) • THERE ARE TWO IMPORTANT DEADLINES FOR STATE SCHOLARSHIPS AND GRANTS • MARCH 10TH: FAFSA must be received by the federal processor • JUNE 10TH: FAFSA discrepancies must be resolved with the federal processor
June 10, 2008SSACI Edit Correction Receipt Date Deadlineat federal processor • In April SSACI provides edit notification to students indicating which FAFSA edits apply to them, how to fix them, and the receipt date deadline (June 10, 2008) where all discrepancies must be resolved with the federal processor in order to remain in the state grant applicant pool. • It is ultimately the student’s responsibility to review the SSACI website and correct edits created at any time with the federal processor. • In addition students may need to make updates to the original data submitted on the FAFSA (i.e. make sure the correct college is the first choice on their FAFSA AND the first college choice on eStudent for an accurate state grant to be made) Edits are posted on eStudent after March 10 www.ssaci.in.gov/estudent/ • Use eStudent to view SSACI edit issues, change address, first college choice change, reprint SSACI state grant award notification, view state grant history for student