Three Steps To Help You Manage The Financial Aspects Of Attending College Gretchen Bailey

1. Three Steps To Help You Manage The Financial Aspects Of Attending College Gretchen Bailey Senior Financial Aid Advisor Grace College

2. Step One • Establish your eligibility for financial assistance. • File the FAFSA Step Two • Check and complete your financial information. • Review and check the SAR for errors

3. STEP THREE • Understanding your Financial Aid Award Notification.

4. The FAFSA

5. Ways to Complete the FAFSA www.fafsa.gov • Renewal on the web requires a pin number. • Paper FAFSA • Request a paper FAFSA by calling the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243) • https://fafsa.ed.gov/help.htm

6. FSA ID Registration • Web site: https://fsaid.ed.gov/npas/index.htm • May be used throughout aid process

7. Avoid FAFSA.com • “Complete FAFSA Online Form for 20% discount for renewal applicants or $79.99 (online)-$99.99 (phone application) for new applicants. •  DON’T PAY FOR A PROCESS THAT WAS DESIGNED TO BE FREE!!!

8. What to Expect after Completing the FAFSA • Central Processing System (CPS) notifies the student of the FAFSAs processing results by: • E-mail notification containing a direct link to SAR on-line if an e-mail address was provided on paper FAFSA or FAFSA on the Web – time sensitive so need to look at it promptly

9. What to Expect After Completing the FAFSA • If student has an FSA ID, he or she can view SAR on-line at: http://www.fafsa.gov

10. Corrections • If a correction to FAFSA data is needed, correction may be made: • Using Corrections on the Web if student and parent each have a FSA ID; • On the paper SAR-mail back to federal processor-be sure both parent and student sign the SAR; or • By the college-but it is not required to offer this service • SAR Acknowledgement cannot be used to make corrections

11. Mumbo Jumbo EFC Out of Pocket COA Direct Cost Financial Need

12. EFC for Dependent Student • Determine available Parent and Student Income • Determine available Parent and Student Assets • Determine size of family and number attending college • Age of the older parent • http://www.ifap.ed.gov/efcformulaguide/attachments/100615EFCFormulaGuide1617Attach.pdf

13. EFC for Dependent Student Parental contribution from income & assets (as adjusted, if more than 1 household member in college) + Student contribution from available income & assets = EFC

14. Cost of Attendance • Tuition and fees • Room and board • Books and supplies, equipment, transportation, and miscellaneous personal expenses • Loan fees • Study abroad costs • Dependent care expenses • Expenses related to a disability • Expenses for cooperative education program

15. Definition of Need Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need

16. Definition of Financial Need

17. What is Financial Aid? • Scholarships • Grants • Loans • Employment opportunities

18. Gift Aid or better know as FREE money! • Frank O’Bannon Grant Program • Frank O’Bannon Grant • 21st Century Scholars Program Grants • State • Federal • Federal Pell Grant • FSEOG College Grant Note: Students have 8 Semesters of eligibility for State Awards, may have GPA requirements Scholarships

19. Self-Help Aid • Employment • Federal Work-Study Loans • Federal Stafford Loans • Direct Loans • Federal PLUS Loan • Private Loans

20. Federal Work-Study (FWS)... • Need-based employment program • Provides jobs on and off campus • Off Campus is Community Service • Students earn at least current minimum wage • Students can work a maximum of 20 hours per week (most students work about 10)

21. Federal Stafford Loan • Low-interest loan the student takes out on his/her own behalf • Student must sign a Master Promissory Note (MPN) & complete online Entrance Counseling • Fixed interest rate 4.29% for Subsidized & Unsubsidized Stafford beginning July 1, 2015 • Repayment begins 6 months after the student graduates or falls below half-time enrollment

22. Federal Stafford Loan (Subsidized and Unsubsidized) • Subsidized Stafford: Must demonstrate “need” • Unsubsidized Stafford: Need is not a consideration • Base annual loan limits (combined subsidized and unsubsidized) loans disbursed on or after July 1, 2008 • Up to $3,500 Sub for 1st year undergraduates + $2,000 Unsub • Up to $4,500 Sub for 2nd year undergraduates + $2,000 Unsub • Up to $5,500 Sub for each remaining undergraduate year + $2,000 Unsub • Up to $20,500 Unsubsidized for each year of graduate/professional study

23. Federal PLUS Loan... • Parent is the borrower • Fixed interest rate of 6.84% • Maximum loan amount is the cost of attendance minus all financial aid received for the student • Approval subject to a credit check • Repayment begins 45-60 days after loan is disbursed unless deferment is requested. PLUS

24. Other Financial Aid Resources

25. Private Financial Aid Sources... • Parents’ and/or student’s employer (employee reimbursement) • Private foundations (grants and loans) • Civic organizations (community scholarships) • Church Scholarship Programs

26. Need More Money? Try These Private Scholarship Search Sites • Internet: • College Board’s Scholarship Search www.collegeboard.com/paying • Scholarship Experts recommended by Forbes http://www.scholarshipexperts.com/ • Peterson’s College Search http://www.petersons.com/college-search.aspx

27. Avoid Being Scammed • To check legitimacy of scholarship search services or individuals, for information about financial aid scams, & tips to avoid being scammed visit these Web sites: • Better Business Bureau: http://www.bbb.com • U.S. Department of Education: http://studentaid.ed.gov/students/publications/lsa/index.html or 1-800-MIS-USED • Federal Trade Commission: www.ftc.gov/scholarshipscams or 1-877-FTC-HELP

28. March 10th FAFSA Deadline – Indiana Residents 2016-17 INDIANA Deadline (ICHE Purposes) FAFSA must be received by Federal Processor March 10, 2016 FAFSA corrections must be received by Federal Processor May 15, 2016!!!

29. March 10th: Can you afford to miss this date?

30. Quick Financial Aid Checklist • Estimate and understand costs for each college • Be sure to follow college deadlines • Submit all required applications • Understand award letters and ask questions • Stay within your costs • https://fafsa.ed.gov/help/myfafsa.htm

31. See, it is as easy as 1,2,3…

32. https://studentaid.ed.gov/sa/

33. Where students get into trouble ….AKAWhen Good FAFSAs Go BAD (mistakes that could cost students their aid)

34. Problem/Solution • Student fails to complete process (i.e. submit) when using FAFSA On The Web (FOTW) –Solution: Make certain to go to the end of the process and that the FAFSA has been submitted and not just saved-get to the point of the submission confirmation page and print/save. • Student and parents leave FAFSA financials blank because they have not filed taxes –Solution: Estimate all financials and then correct FAFSA ASAP after taxes are filed but before May 15 correction receipt date deadline. • Student fails to provide parent/student signature on initial or subsequent FAFSA submission –Solution: Always make sure FAFSA submission is signed by everyone when it is submitted initially or for correction electronically or via mail.

35. Problem/Solution • Student fails to provide correct state residency information and/or dates on the FAFSA –Solution: When completing the electronic version of the FAFSA, for the state of legal residence question, click on drop down box then click on “IN”. Please make sure you click to the next question on the FAFSA rather than the next state in the drop down list!

36. Problem/Solution • Student provides E-mail address on FAFSA but doesn’t get SAR –Solution: Use a stable and easily accessible e-mail address such as parents’ e-mail address. Moreover, check daily for any e-mails from the federal processor. • Student leaves blank or fails to correctly complete degree or grade level questions –Solution: Read instructions for each question carefully.

37. Problem/Solution • Student fails to attend to ICHE Edit Notification –Solution: Student and parents should read all mail and check status frequently at www.in.gov/ai/appfiles/eStudents/ • Student misses March 10 ICHE FAFSA receipt date deadline –Solution: File FAFSA ASAP to be considered for Indiana State Grants. • Student fails to keep FAFSA college list up to date for ICHE purposes –Solution: Always make sure every college is listed and that first-choice is the college the student plans to attend. Make a change if necessary, at eStudent, www.in.gov/ai/appfiles/eStudents/

38. Problem/Solution • Student has financial aid package from one college, but not another and is being pressured to “accept” package prior to knowing what other college may offer –Solution: Check with the college which has not offered package to make sure file is complete and inquire when package may be available. Also, request that the May 1st National Candidate Accept Date be honored by each college. • Scholarship scams are alive and well-beware! –Solution: Search for funds using all available resources, but never pay an “application fee” or provide bank or credit card information. Beware of invitations extended by scholarship search firms to attend locally held presentations. If it seems too good to be true, it is.

39. Frequent FAFSA Errors • Incorrect Social Security Number • Divorced/remarried parent information (conflict in marital status & income reported) • Fail to include income earned by parents/stepparents • Fail to include untaxed income • Record the same amount for adjusted gross income and taxes paid • Reporting amount of taxes withheld rather than amount actually paid • Number in household • Number in postsecondary education • Real estate and investment net worth • Select a state of legal residence other than IN for student or parent when completing FAFSA on the web

40. FAFSA Database Matches • Social Security Administration • Homeland Security (INS) • Selective Service System • National Student Loan Data System • If FAFSA doesn’t pass database match, creates a problem/edit with the FAFSA which must be resolved

41. FAFSA On The Web Get a FSA ID first (student and parent) Complete FAFSA on the Web Worksheet (on-line FAFSA format different than paper FAFSA) Make sure create and transmit FAFSA, not just create and save Print and keep a copy of the confirmation page Print and mail signature page if don’t have FSA ID Paper FAFSA Make and keep a copy of the FAFSA and documents used to complete the form such as tax documents. Mail in plenty of time to be RECEIVED at the federal processor on or before March 10th! March 10, 2016FAFSA Receipt Date Deadline

42. Wow ... That’s it! Gretchen Bailey Senior Financial Aid Advisor baileyga@grace.edu Grace College 1-800-544-7223

43. Questions …Questions …Questions ...