Financing a College Education

1. College Goal Kentucky 2014 Financing a College Education The College Goal Sunday program was created by the Indiana Student Financial Aid Association with funding from Lilly Endowment, Inc., and with supplemental support from the Lumina Foundation for Education.

2. What is Financial Aid? Scholarships Grants Loans Employment Opportunities

3. Sources of Financial Aid Private Institutional State Federal

4. Types of Financial Aid Merit-Based Need-Based

5. Merit-Based Financial Aid

6. Private Scholarships Free Scholarship Searches High School Counselors Student and Parent Employers Organizations to which you or your family members belong Paying for help? Beware!

7. Institutional Aid Apply for admission to the college of your choice Ask for scholarship applications from the admissions office Ask if a separate financial aid application is required Ask for scholarship information from departments specific to your major Consider R.O.T.C.

8. Additional Requirements for Some Schools: CSS/Financial Aid Profile Many colleges (mostly private out of state) and scholarship organizations use the data on CSS/Financial Aid Profile to assist in awarding nonfederal aid. Visit profileonline.collegeboard.com to find out if your school or scholarship of interest requires this form. Students are charged $25 for initial application and one college or program report; additional reports are $16.

9. Kentucky Educational Excellence Scholarship (KEES) After high school graduation, KEES becomes available for use at a Kentucky college or university Students pursuing a degree in a program of study not offered in Kentucky may be able to use their KEES out-of-state through the Academic Common Market Does not apply to colleges in Indiana, Ohio, and Illinois Award renewable for up to 8 semesters within 5 years of high school graduation Administered by Kentucky Higher Education Assistance Authority (KHEAA) www.kheaa.com

10. Kentucky Educational Excellence Scholarship (KEES) Merit scholarship funded by net KY lottery proceeds KY high school students earn KEES awards for each yearly GPA of 2.5 or better Cumulative GPA maximum is $2,000 Students with at least one GPA award can earn bonus awards: ACT scores of 15 or better earn up to $500 SAT scores of 710 or better earn up to $500 Free/reduced lunch students earn $200-$300 for each qualifying AP and/or IB exam score

11. Need-Based Financial Aid

12. Definition of Need Cost of Attendance (COA) - Expected Family Contribution (EFC) ______________________ = Financial Need

13. Cost of Attendance Always includes: Tuition, Room and Board Books and supplies, transportation, and miscellaneous personal expenses Loan fees May include: Study abroad costs Dependent or elder care expenses Expenses associated with a disability Expenses for cooperative education program

14. Need Varies Based on Cost

15. State Programs College Access Program Grant (CAP) Available to students at public and private colleges in Kentucky Award amount currently $1,900 per year KY Tuition Grant (KTG) Available to students at Kentucky’s private colleges. Award amount currently $2,930 per year

16. Federal Aid Programs Federal Pell Grant TEACH Grant Campus-Based Programs Federal Perkins Loan Federal Work-Study (FWS) Federal Supplemental Educational Opportunity Grant (SEOG)

17. Federal Loan Programs William D. Ford Direct Loan Program Federal Stafford Loan Subsidized (need-based): interest does not accrue while student is in school, current fixed interest rate of 3.86% Unsubsidized (non need-based): interest accrues while student is in school at current fixed rate of 3.86% (Grad Unsub 5.41%) Federal PLUS Loan – 6.41% Parent can borrow up to Cost of Attendance – All Financial Aid If denied, student can receive up to $4,000 more per year in Stafford unsubsidized loan funds Rates are based on loans disbursed between 7/1/13 and June 6/30/14. New rates will be announced by July 1, 2014.

18. Priority Application Deadline As soon as possible after January 1, 2013 Receipt date for completed Free Application for Federal Student Aid (FAFSA) in Kentucky To ensure maximum consideration for Kentucky state aid programs Schools may have unique priority deadlines for institutional funds

19. Free Application for Federal Student Aid (FAFSA) Family’s personal and financial information required to perform need analysis is collected on the FAFSA. Can use estimated 2013 income and tax information, if necessary Filing options Paper version Electronically through FAFSA on the Web: www.fafsa.gov Sophisticated on-line edits and skip logic so that errors are less likely to be made On-line help is available for each question

20. Getting Ready Before starting the FAFSA, gather: Student driver’s license Student Alien Registration Card Student and Parent Social Security cards 2013 W-2 Forms and other records of money earned* 2013 federal income tax return* Records of untaxed income Current bank statements Business, farm, and other real estate records Records of stocks, bonds, and other investments * Can estimate this information if not available yet.

21. Federal PIN www.pin.ed.gov PIN (Personal Identification Number) serves as the electronic signature on ED documents Both student and at least one custodial parent need PIN to sign the FAFSA electronically 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 Apply for student and parent PINs at www.pin.ed.gov

22. www.FAFSA.gov • Do NOT go to a “.org” or “.com” website • Start A New FAFSA for • Initial FAFSA Entry • Login for • Renewal Application Entry • FAFSA Corrections • Providing Signatures • Continuing a Saved FAFSA • Viewing Transaction History

23. Basic Student Information • Name, Social Security and Date of Birth • Notice “Help and Hints” follows along every page to help ensure accuracy.

24. “Get Started” page – • As an entering freshman for Fall 2014 be sure you are filing the 2014-2015 FAFSA • PIN Status

25. Introduction Page

26. Opportunity to check Name, DOB, SS# Address, Phone #, Email Address Marital Status – As Of Today Driver’s License Information Notice the “Save” Option Student Demographic Information

27. Error Icon Identifies Errors • An error icon will appear with a pop-up box indicating the nature of the error. • A RED X will also display to the left of the field where the information needs to be corrected.

28. Citizenship Selective Service Degree Status - Most High School Seniors will answer: High School Diploma Never attended college / 1st yr. 1st Bachelors Degree Bachelors degree not earned by July 1, 2014 Work Study Highest Grade completed by parents Student Demographic Information

29. High School Question • Student enters the name, city and state of the high school they attended • Student selects Confirm to retrieve the results

30. Student can “Select” the school attended from the list. If the student does not find the school on the list, the student selects “Next” to continue and the search criteria are saved. High School Search Results – Matches Found

31. If no matches are found, the student selects Next to continue and the search criteria are saved. High School Search Results – No Matches Found

32. School Selection Step Student may enter up to 10 colleges by entering Federal School Code or Searching on State, City or School Name

33. School Code Search Features • The student can scroll through the search results • Can also view detailed information for a school before & after adding the school to their FAFSA • Once a school is added you will be asked to confirm your housing plan

34. School Selection – Housing Plans • For each school selected the student will select the housing plan for that school • Options include • On Campus • With Parent • Off Campus

35. Dependency Determination • 13 questions determine a student’s dependency status

36. Dependency Results • Most High School students will have to provide parental information based on the way they answer the Dependency questions. • If the student moves forward without providing the parental information they will most likely have to provide some additional documentation of circumstance to the college or university.

37. Parent Demographic Information • Notice the slight change in the color of the web layout • Dark Blue refers to the student • Light Purple refers to the parent • Similar Demographic Questions will be asked Name, Social Security and Date of Birth • Parents will also be asked about their Household Size and the Number of individuals going to college

38. Parent Financial Information • Remember you are answering questions about the previous year’s tax information • If you have not completed your 2013 taxes you are allowed to use your best estimates. Additional instruction is provided if you are estimating income.

39. Parent Financial Information • Type of tax return • AGI and work income • What is a dislocated worker?

40. Parent Financial Information • Taxes Paid • Number of exemptions • “Help and Hints” can be a useful tool to answer: • Additional Financial Information • Untaxed Income

41. Asset Net Worth Threshold • Some parents of dependent students and independent students will be presented with an asset net worth question • If answer is “yes”, three asset questions regarding cash, saving, checking, investments and business worth will display. • If answer is “no”, the asset questions will not display.

42. Student Financial Information • Notice the slight change in the color goes back to dark blue to indicate you are now answering questions about the student.

43. Student Financial Information • If tax return has not been completed yet, guidance is offered about how to estimate 2013 income and tax information (same in parent section). • Student financial questions will be nearly identical to those asked of parents.

44. If the parent or student 2013 tax return has already been completed • The IRS Data Retrieval is scheduled to be available on February 2, 2014. • Electronically filed tax return information will be available from the IRS in 3 weeks, data from paper tax returns will be available in 8 weeks. • Also available in Corrections

45. IRS Data Retrieval • Once the applicant has successfully authenticated, tax data will be presented and the applicant will have the option to “Transfer” the tax information to the FAFSA

46. Sign & Submit • The best way to sign the FAFSA is by using your PIN • Both student and parent need to provide a PIN for electronic signature • Note: Submitting the FAFSA without signatures will cause a delay

47. Confirmation Page • Includes – • Confirmation Number • Data Release Number (DRN) • EFC estimate • Pell Grant and Direct Loan estimates • Option for parents to transfer info to an application for a sibling • Statistics for each college on the FAFSA

48. Verification Application selected by federal government or by school Confirms accuracy of information reported on FAFSA

49. If selected, what will you need? Verification Worksheet (will be provided to you) IRS Data Retrieval 2013 U.S. income Tax Transcript Follow the directions provided by the school you plan to attend Common documents requested are:

50. Role of the Financial Aid Office Determines eligibility for financial aid Packages aid Sends award notification