2011 Advisor Training Federal and State Update

1. 2011 Advisor TrainingFederal and State Update September 12-15, 2011

2. OASFAA is a non-profit organization OASFAA has provided the information today as a free service to access staff and high school counselors You have permission to copy and distribute these materials to your students and families. Charges may not be assessed for the material or for the information presented. Permission must be granted for other use of this information or these materials. Contact the Outreach Chairperson listed on the OASFAA web site or e-mail: outreach@oasfaa.org

3. F A F S A

4. IRS Data Retrieval First, a word about deadlines: THEY’RE REAL How/When to file if dealing with early deadlines: *Use a completed tax return if possible*Or follow a two-step process (The Guide pg 25, ATM pg 33): • Step 1: Apply and estimate your tax information on your application • Step 2: Make corrections later if your income or tax information was not accurate.

5. Deadlines FAFSA Unusual Circumstances If you are supposed to file a 2010 federal income tax return, we recommend that you complete it before filling out the FAFSA. If you have not yet completed your 2010 tax return, you can still submit your FAFSA using best estimates. After you submit your tax return, correct any income or tax information that is different from what you initially submitted on your FAFSA. If you or your family has unusual circumstances (such as loss of employment), complete this form to the extent you can, then submit it as instructed and consult with the financial aid office at the college you plan to attend.

6. Special CircumstancesThe Guide, pg.13; NCAN ATM pg.41 Examples: reported to the financial aid office Medical Parent or student loss of income Unusual debt or one-time income Tuition expenses at an elementary or secondary school Parent in College • The financial aid administrator must have compelling reasons to use professional judgment. • The financial aid administrator’s decision as to whether you have special circumstances is final and cannot be appealed to us (the Department of Education).

7. Special Circumstances (cont’d) What about stepparent’s information? • Paper FAFSA, pg.9, column 2 • The Guide, pg.29 What about dependency status? • The Guide, pg.27-28 • NCAN ATM, pg.34 • 11-12 paper FAFSA, pgs.5,9

8. VerificationThe Guide, pg.30 • Selected by the Central Processing System (CPS) or the Institution • Keep copies of 2010 Tax documents (for 11-12 FAFSA) • If selected, completion is required before aid can be disbursed • Verification materials are sent from the student or family to the financial aid office, not to the federal processor

9. Verification and IRS Data RetrievalATM, pgs.27-29 • Available now (11-12) • Can be used with initial filing of the FAFSA For 12-13 (ATM, pgs.28-29): • Can and should be used when filing the initial FAFSA, making corrections, or when changing estimated tax information to actual tax information

10. FAFSA Worksheet IRS Data Retrieval tool Beginning about January 30, 2012 students and parents who have completed their 2011 IRS tax return will be able to use FAFSA on the Web to view the tax information needed to complete the FAFSA. There will also be an option to securely transfer the tax information to the FAFSA. FAFSA worksheet

11. Providing IRS Data – IRS Data Retrieval Tool • Initial FAFSA • FAFSA Corrections • English and Spanish

12. Providing Tax Information IRS provides FAFSA on the Web users with access to their tax information. Electronically filed tax return information will be available from the IRS in 1-2 weeks, data from paper tax returns will be available in 6-8 weeks.

13. FOTW Homepage www.FAFSA.gov • Simplified options • Updated graphics • An updateable announcement section • Access to FAFSA PDF and paper FAFSA information • Number of school choices increased to 10 on FOTW

14. Detailed College Info and Comparison • College’s website • School type • Tuition and fees • Net price average • Graduation rates • Retention rates • Transfer rates

15. Net Price Calculator (NPC) All Title IV institutions enrolling full-time, first-time degree or certificate seeking undergraduate students are required to have an NPC posted on their website by Oct. 29, 2011. Using both student-entered and institution-provided data,1 the NPC allows prospective students to calculate their estimated net price at an institution based on the following basic formula: Price of attendance minus grantaid Schools may use ED’s NPC template, create their own template, or purchase a template from a third party.2

16. Net Price Calculator *Designed to provide accurate and timely information about the net price of a college. *Can assist families in comparing colleges based on net price and financial aid. *Inclusion of direct and indirect costs in “price of attendance” component can significantly inflate the price tag. 1 *Institution’s flexibility to customize template could make college costs comparisons an extremely complex process. 2 CONCERNS BENFITS

17. Federal Aid Programs, 2011-2012

18. Federal Pell Grant, 2011-2012 Maximum award amount remains the same as 2010-2011 • $5,500 maximum award for full-time enrollment and an Expected Family Contribution (EFC) of zero Year-round Pell (two Pell awards within the same academic year) has been eliminated

19. ACG and SMART, 2011-2012 Both programs have been eliminated

20. TEACH, 2011-2012

21. Campus Based Programs, 2011-2012

22. Federal Work Study • Undergraduate or graduate students are eligible • Employment can be on or off campus • FWS wages excluded from EFC calculation!!! • Eligible employers • School • Federal, state, or local public agency • Private non-profit organization in academically relevant jobs • For-profit organization in academically relevant jobs • Community service activities Ohio minimum wage in 2011: $7.40 per hour

23. Higher Education Reconciliation Act of 2005 (HERA)College Cost Reduction and Access Act of 2007 (CCRAA) Increased income protection allowance for dependent students: • 06-07 $2,550 • 07-08 $3,000 (HERA) • 08-09 $3,080 • 09-10 $3,750 (CCRAA) • 10-11 $4,500 • 11-12 $5,250 • 12-13 $6,000 Asset conversion rate for dependent students is 20%

24. Federal Supplemental Educational Opportunity Grant (FSEOG) • Federal SEOG Grant*Undergraduates with exceptional financial need*Pell Eligible students with the lowest EFC*Award ranges from $100 to $4000, depending on when student applies, financial need, and the funding and policies of school attending

25. Federal Perkins Loan • Eligible students (priority to exceptional need) • Undergraduate or graduate students • Must file the FAFSA • Annual and aggregate loan limits • up to $5,500 annually for undergraduates(actual awards, if any, will vary between schools) • $27,500 aggregate for undergraduates • Interest rate: 5% (fixed) during repayment • Interest subsidized during in-school and nine-month grace period • Deferment and cancellation provisions available

26. Direct Loans, 2011-2012 Federal Stafford/Federal Direct Loan A federal loan program with two types of awards

27. Direct Loans, 2011-2012 Independent Students and Dependent Students whose parents have been denied the PLUS Loan are eligible for additional Unsubsidized Stafford Loans ($4,000 as Freshmen and Sophomores and $5,000 as Juniors and Seniors)

28. Direct Loans, 2011-2012 1% default fee with a .5% rebate (deducted from the borrowers disbursement so borrowers net 99.5% of what they borrow) Borrowers must make their first 12 payments on time to maintain their rebate

29. Direct Loans, 2011-2012

30. Direct Loans, 2011-2012 PLUS Loans: • Loans to parents of dependent students • Loan limits are up to the cost of education less any financial aid received per academic year • The interest rate 7.9% fixed • Repayment begins within 60 days of full disbursement (payments may be deferred while the student is in school) • FAFSA required

31. Direct Loans, 2011-2012 4% default fee with a 1.5% rebate (deducted from the borrowers disbursement so borrowers net 97.5% of what they borrow) Parent/borrowers must make their first 12 payments on time to maintain their rebate

32. Sneak Peek beyond 2011-2012 Elimination of subsidy on graduate and professional Direct Loans after July 1, 2012 Elimination of repayment incentives on new Direct Loans after July 1, 2012 Subsidized Loan interest rate to revert to 6.8% for new loans after July 1, 2012 Pell funding and level of maximum award should remain stable through 2012-2013 academic year (tentatively exempt from future cuts in ongoing federal budget negotiations)

33. Ohio Aid Programs, 2011-2012 Ohio College Opportunity Grant (OCOG) War Orphans Scholarship National Guard Scholarship Academic Scholarship Safety Officers Memorial Nurse Education Assistance Loan Program (NEALP) Choose Ohio First

34. Ohio College Opportunity Grant (OCOG) • Students must file the FAFSA, be Ohio residents and attend an Ohio public university main campuses (not regional campuses or community colleges), Ohio private, non-profit colleges or universities, and Ohio private, for-profit institutions. • The Expected Family Contribution (EFC) is the index number for awarding OCOG • EFC eligibility range is from 0000-2190 • A part-time student will receive a pro-rated award • Available for continuous enrollment (includes summer)

35. OCOG, 2011-2012 Total funding level for 2011-2012 is relatively similar to total funding level for 2010-2011

36. War Orphans Scholarship, 2011-2012 For Ohio dependents of deceased or majority disabled veterans Will provide an annual, full-time award of $4,797 to eligible students at private colleges and universities (both non-profit and for-profit) Will continue to cover 80% of full-time tuition and general fees at public colleges and universities

37. Ohio National Guard Scholarship, 2011-2012 Eligibility determined by the Ohio Adjutant General Will provide an annual, full-time award of $8,696 to eligible students at private colleges and universities (both non-profit and for profit) Will continue to cover 100% of tuition and general fees at public colleges and universities

38. Ohio Academic Scholarship, 2011-2012

39. Safety Officers Memorial, 2011-2012 For Ohio dependents and spouses of safety officers killed in the line of duty Will provide an annual, full-time award of $6,768 to eligible students at private colleges and universities (both non-profit and for-profit) Will continue to cover 100% of full-time tuition and general fees at public colleges & universities

40. NEALP, 2011-2012

41. Choose Ohio First, 2011-2012 Various programs with STEM concentrations Partnerships of private/public schools apply for funding State funding for these programs will increase slightly for the next two academic years

42. State Support and Tuition, 2011-2012 Tuition cap at 3.5% for each of 2011-2012 and 2012-2013 (cap at $200 each year for community colleges) Low Cost Pathways 2+2, 3+1 programs — low cost Bachelor’s Degrees Enterprise Universities,3 year Bachelor’s Degrees Total subsidy support down with elimination of federal stimulus funds ($2B to $1.7B)

43. www.statevoucher.org

44. Resources

45. Resources

46. Resources • Federal Student Aid Information Center (inside cover of The Guide): 1-800-433-3243 • www.federalstudentaid.ed.gov • Ohio’s College Access Information Hotline: 1-877-428-8246

47. Additional Training Opportunities Visit www.oasfaa.org... • For information on Counselor workshops to be held December 5-9, 2011 • Counselor’s Contact Database • Workshop registration information • Counselor event announcements and details • Training announcements