College Financial Aid Night

1. College Financial Aid Night

2. Agenda • Financial aid timeline • What is financial aid • College costs • Determination of eligibility • Need-based programs • Alternatives • How to complete a FAFSA

3. Financial Aid Timeline Net price calculator list: http://www.usnews.com/education/best-colleges/features/net-price-calculator

4. Types of Student Financial Aid • Grants • Scholarships • Loans • Employment

5. Student Financial Aid • Merit-based* • academics • talent • athletic • others • Need-based • financial considerations *Average merit aid granted at over 600 colleges and universities: http://thechoice.blogs.nytimes.com/2012/07/23/merit-aid-chart/

6. Basic Formula for Aid Cost of Attendance (varies widely) Expected Family Contribution • Eligibility for Need-Based Funds - =

7. Direct College Costs • Tuition • Required fees • Room • Meals • Books and Supplies

8. Indirect College Costs • Transportation • Miscellaneous personal expenses, including documented costs for a personal computer • Loan fees

9. What is an EFC? • EFC---Expected Family Contribution • EFC is the end result after submitting a FAFSA • Parent Contribution: Uses parent income and assets (after protecting some assets and income for basic living expenses) • Student Contribution: Uses student income and assets (after protecting some assets and income of $6,130)

10. Determination of EFC • Parents’ contribution • + Student’s contribution • = Expected Family Contribution Resource to review: FAFSA Forecaster www.fafsa.gov

11. Applying for Federal Financial Aid • Free Application for Federal Student Aid (FAFSA) • Download the FAFSA on the Web Worksheet via www.fafsa.gov to prepare your form • 99.99% of forms are filed online! • Sign with a Personal Identification Number (PIN) • Can obtain paper form: 800-4-FED-AID (1-800-433-3243) • Complete FAFSA at www.fafsa.gov after January 1, 2014 for the next academic year • Results available online in 48 hours and to the institutions you list on the FAFSA

12. Applying for Financial Aid • Other forms: • Institutional application – ex. YU • CSS (College Scholarship Service) PROFILE – ex. UMich, Brandeis, Case • Outside scholarship applications

13. Applying for Financial Aid • Meet earliest deadline of colleges in which you are interested – ex. YU, Brandeis 2/1, OSU 2/15 • Complete all questions accurately • Estimate if necessary to meet early deadlines • Don’t wait until you are admitted to file the FAFSA • Keep a photocopy of all documents for your records

14. Applying for Financial Aid • Download a financial aid deadline organizer! http://collegeadmissionbook.com/worksheets

15. Need Help?College Goal Sunday 2014 • Sunday, February 9, 2014 • Starts at 2PM • Get FREE help completing your FAFSA from college financial aid officers. • Visit http://www.ohiocollegegoalsunday.orgto: • Learn more • Find closest location • Register Other options: • College Now Cleveland’s walk-in resource center Level 3 of Tower City Center Hours:Monday – Friday: 10 a.m. – 5 p.m.

16. PotentialInstitutional Adjustments to EFC for Institutional Funds • Minimum contribution from students to their educational costs (summer earnings) • Use home equity in determination of net assets • Make adjustments for medical/dental expenses • Make adjustments in the losses/depreciation claimed for business/farm operations

17. Special Circumstances • Significant change in your family… • Unemployment of a parent • Death in the family • Change in parents’ marital status • Medical expenses not covered by insurance • Student cannot obtain parent information Notify the financial aid office at your college of any special circumstances. Be prepared to provide documentation of any change, including the financial impact of the change.

18. Sources of Financial Aid • Federal Government • State Programs • Institutional funds • Outside agencies

19. Federal Aid Programs • Federal Pell Grant • Federal Supplemental Educational Opportunity Grant • Federal Work-Study • Federal Perkins Loan • Ford Federal Direct Loan • Federal TEACH Grant (loan)

20. What about Federal Loans? • Federal Direct Subsidized and Unsubsidized Loans • 3.86% for unsubsidized and subsidized loans • Federal Perkins Loans—5% • Federal Direct PLUS Loans – 6.41% • Parents of dependent students • Graduate or professional students

21. Ohio Aid Programs (partial listing) • Choose Ohio First Scholarship (for STEM) • Nurse Education Assistance Loan Program • Ohio College Opportunity Grant

22. Institutional and Outside Aid Institutional Aid Grants & Scholarships Loan Programs Student Employment Outside Agencies Local organizations Civic Groups Parents’ employers JFSA: http://www.jfsa-cleveland.org/financialaid.asp Hebrew Free Loan Association of Cleveland: http://www.hflaclev.org/

23. Is that all there is? • Private alternative loans for students or parents • Last resort--Always apply for federal loans first! • College payment plans • Outside scholarships – see guidance manual! • Tax credits – American Opportunity & Lifetime Learning

24. Tax Credits - American Opportunity Tax Credit • Available for the first four years of college to assist with tuition, fees and required books. • Up to $2500 tax credit –reduces amount of taxes owed; up to 40% refunded when no income tax due. • 100% of first $2,000 expenses and 25% of the next $2,000. • Examples: • Tuition of $8000 paid in 2013-- May claim $2500 on the tax return completed for 2013 (filed in 2014). • Tuition of $1,200--May claim the full $1,200 • Tuition of $3,000--May claim $2,250 (all of the first $2000, and 25% of the remaining tuition…which is $250).

25. Tax Credits - Lifetime Learning • Available for all years • Can claim for remaining undergraduate years and graduate study as well as professional development classes. • Can claim credit for 20% of tuition & fees, up to maximum of $2,000. • Income restrictions on who can claim Lifetime and American Opportunity Tax Credits ….. Consult with your tax advisor!

26. IRS Deductions and Credits for 2013 • Families with adjusted gross incomes up to $80,000 (single filers) & $160,000 (joint filers) can claim tax credits. • Certain taxpayers will qualify to take a tax deduction for tuition and fees of up to $4,000 (even if they don’t itemize). • Cannot claim American Opportunity or Lifetime Learning Credit in the same year as deduction for same student. • Don’t miss out on the tax credits or deductions! Talk to your tax preparer or do your research.

27. Less expensive options to consider: • Low-cost pathways: Many universities have partnerships that allow students to start their degree at a less-expensive community college and finish it on a main university campus. Some Ohio options:

28. Less expensive options to consider: • Plan for summer classes! Ex. Can transfer 10 credits/summer to YU. Many CSU courses are pre-approved.

29. Additional Information • Federal Department of Education • http://studentaid.gov/ • Ohio Association of Student Financial Aid Administrators • http://www.oasfaa.org • Ohio Means Success • http://www.ohiomeanssuccess.org • The SmartStudent Guide to Financial Aid • www.finaid.org • Collegeboard: Big Future https://bigfuture.collegeboard.org/pay-for-college

30. A Closer Look at the FAFSA

31. Breaking news! http://www.insidehighered.com/news/2013/10/28/colleges-use-fafsa-information-reject-students-and-potentially-lower-financial-aid

32. What is a PIN? • What is a Personal Identification Number (PIN)? • Issued to an individual and is a “signature” for Federal Student Aid purposes • Faster than using paper signature • PIN will expire if not used for 18 consecutive months • Parent’s PIN may be used for multiple children • Each student must have own PIN • Obtain PIN from www.pin.ed.gov

33. FAFSA on the Web Worksheet • Complete the Worksheet to help you complete the FAFSA on the Web • Questions on the Web are presented in a different order than the questions on the paper FAFSA • The questions on the Worksheet are ordered as they appear online • Worksheet is available in PDF form www.fafsa.gov

34. Message for Applicants Who Indicate They “Will File” Their Taxes

35. IRS Data Retrieval Tool (within FAFSA) • Available (early Feb.) to those who have filed taxes and are: • Completing the FAFSA • Correcting their FAFSA (updating with IRS data) • Does not apply to • Married but are filing separately • Marital status changed after 12/31/13 • Those filing amended or foreign tax returns

36. IRS Data Retrieval Tool (within FAFSA) • To use the Tool, must have: • A valid Social Security Number and • Filed a 2013 federal tax return • The exact street address used on the tax return! • Filtering question on FAFSA helps determine if you can use • IRS Data Retrieval Process meets verification requirements • Secure and FAST option

37. Financial Aid Presentation NCASFAA/ NCSEAA IRS Data Retrieval ToolFiltering Question

38. Dependency • Students are independent if: • 24 years old or older • Orphan, foster child/ward of the State • Have children for whom they provide more than 50% support • Have a legal guardian • Married • Veteran or on active duty • Graduate students • Legally emancipated • Homeless or at risk of homelessness Students not meeting one of the above must include parental information for full aid consideration.

39. Who are considered parents on the FAFSA? • Parents living and married to each other • Parent widowed or single • Parents divorced or separated—answer questions for parent • with whom student lived more during past 12 months • If student lived with each parent exactly the same amount • of time, answer for the parent who provided more • financial support during the past 12 months or during the • most recent year that the student actually received • support from a parent • If parent remarried, answer about that parent and the • person whom parent married (stepparent)

40. Signing the FAFSA • After completing the FAFSA, student and parent must sign by: • Entering PIN • Both student and one parent should each have PINs OR • Print signature page, sign and mail to address provided within 7 days

41. Sign the Application and Submitby clicking “Submit My FAFSA Now” The Sign & Submit page includes the signature process for the student

42. Confirmation Page • Next steps • EFC estimate • Pell Grant & Direct Loan estimates

43. What happens after I file the FAFSA? • Complete verification if required. • Respond to any questions from the campus aid office. • Receive financial aid notification. • Reply to offers of aid (and admission). • Complete promissory note if borrowing money. • Notify campus of outside scholarships.

44. Questions?