The Montana Association of Student Financial Aid Administrators

1. The Montana Association of Student Financial Aid Administrators 

2. About the FAFSA Types of Financial Aid Other Resources

3. Getting Started Application for Admission may be required before aid can be awarded Be aware of the school�s SAP (Satisfactory Academic Progress) Policies Pay attention to deadlines: Priority Deadline for filing FAFSA Admissions Application Deadline Scholarship Application Deadline Award Acceptance Deadline

4. Federal Financial Aid Eligibility Requirements Student must have the following: Be a U.S. citizen or eligible noncitizen Have a valid Social Security number (unless you're from the Republic of the Marshall Islands, the Federated States of Micronesia, or the Republic of Palau) Comply with Selective Service registration, if required (see www.sss.gov for more information) Have a high school diploma or a General Education Development (GED) Certificate or pass an approved ability-to-benefit (ATB) test Be enrolled or accepted for enrollment as a regular student working toward a degree or certificate in an eligible program at a school that participates in the federal student aid programs Also: You must not owe a refund on a federal grant or be in default on a federal student loan You must have financial need (except for unsubsidized Stafford Loans) You must not have certain drug convictions

5. PIN Registration When your PIN is ready, the Dept of Education will email you and direct you to a secure website to pick up your PIN. By adding this email address to your address book, you will prevent the Dept of Ed message from landing in your junk or bulk mail folders. When your PIN is ready, the Dept of Education will email you and direct you to a secure website to pick up your PIN. By adding this email address to your address book, you will prevent the Dept of Ed message from landing in your junk or bulk mail folders.

6. Applying for DifferentTypes of Aid USE THE FAFSA FOR : Grants � Free or �gift� aid Work Study � Self- help � must be earned Loans � Self-help � must be repaid USE SEPARATE APPLICATION FOR: Scholarships Waivers Follow the process at your school

7. FAFSA - Two Ways to Apply Electronic - Recommended: FAFSA on the WEB @ www.fafsa.ed.gov Reminder - get your PIN number first www.pin.ed.gov (parent and student) Paper FAFSA Forms available from financial aid office or high school guidance counselor The paper FAFSA colors: YELLOW for student info, PURPLE for parent info

8. Timelines Submit as early as possible after January 1st Estimated tax return Completed tax return Processing Times 1 � 3 days if submitted electronically 2 � 3 weeks if paper FAFSA is mailed School processing times vary Check Student Aid Report (SAR) immediately for: EFC (on upper right of pg 1) Any mistakes or omissions If you haven�t received any information within 4 weeks, contact the financial aid office or Federal Processor @ 1.800.4.FEDAID. Print and keep your confirmation number for tracking!

9. Avoid ERRORS! Errors made in completing the FAFSA and/or supplemental forms may delay application processing and result in the loss of financial aid funds. Please complete all forms carefully!

10. Frequent FAFSA Errors Divorced/remarried parent information Income earned by parents/stepparents Untaxed income U.S. income taxes paid Household size Number in postsecondary education Real estate and investment net worth

13. What the heck is the �FAFSA?� FAFSA = Free Application For Federal Student Aid Emphasis on the �FREE� Part!

14. Components of the FAFSA The Philosophy The Formula COA, EFC, NEED The Forms Paper FAFSA FAFSA on the Web Worksheet, for online Application

15. Parents and students are primarily responsible Families are evaluated in their present financial condition A family�s ability to pay is evaluated in an equitable and consistent manner Special situations can be considered The Philosophy(Why Is All This Information Needed?)

16. Filling Out the FAFSA Tax information Use 2006 Federal tax information Do not send any other forms with the paper FAFSA If using paper, then mail the paper form in the envelope provided � it is pre-coded for faster processing Student and Parent Information Use correct SSNs Use LEGAL NAME from Social Security Card Accurate Date of Birth School Information Identify at least one school Can list up to four schools at a time

17. Dependent or Independent ? Criteria to be Independent: Born before Jan 1, 1984 (age 24) Working on a graduate degree Married Have dependents other than a spouse that you support more than 50% Orphan or ward of the court Veteran of the US Armed Forces

18. Special Circumstancesfor Dependency Issues Exceptions to dependency criteria: Abandonment Abuse Neglect Where safety of student would be compromised by contacting parents Contact your Financial Aid Officer for help in these situations. Documentation is required.

19. Divorced/Separated Parents Whose information goes on the FAFSA? 1. Who did student live with most in last 12 months? 2. If #1 is not clear, who provided the most financial support in the last 12 months? 3. If neither #1 or #2 clarifies it, choose the parent from whom the student most recently received the most support. Stepparent�s information is ALWAYS included!

20. What if I have a special situation? A special conditions appeal may be filed when your income has changed due to: Loss of job Death of wage earner Divorce Unusually high medical bills paid Special conditions are considered after initial awards have been determined.

21. The Formula

22. What�s in the Cost of Attendance? Main components Tuition & fees Room & board Books & supplies Transportation Miscellaneous personal expenses Other possible components Loan Fees Study abroad costs Dependent or elder care expenses Expenses associated with a disability Expenses for co-op education programs

23. E F C What is it? How is it determined? Why do we need it?

24. EFC for Dependent Student Step One: Determine available parent income Total income (taxable & nontaxable), less exclusions (ex. child support paid) Taxes (federal, state, local, social security) Income protection allowance for basic living expenses (food, shelter, etc.) Employment allowance (if eligible) = Available Parent Income

25. EFC for Dependent Student (cont.) Step Two: Determine available parental assets Cash, savings and checking accounts + Farm/Business net worth (after adjustment) + Real estate/Investments equity (excluding home) - Education savings/Asset Protection Allowance (amount determined by age of older parent) x Asset conversion rate = Parents� Contribution from assets

26. EFC for Dependent Student (cont.) Step Three: Determine available portion of parental income & assets Available Income + Contribution from assets = Adjusted available income (AAI) AAI x Assessment rate = Total Parent Contribution Total Parent Contribution # Attending College = Parental contribution

27. EFC for Dependent Student (cont.) Step Four: Dependent Student Contribution Total Income (taxable & nontaxable) less exclusions (ex. Work Study) - Taxes - Income protection allowance of $3000 x 50% Assessment rate = Income contribution from student + 20% of the student's assets = Student Contribution Student�s IPA increased to $3,000 (was $2,200). Student�s Asset contribution decreased to 20% (from 35%)Student�s IPA increased to $3,000 (was $2,200). Student�s Asset contribution decreased to 20% (from 35%)

28. EFC for Dependent Student (cont.) Step Five: Total EFC Parents� Contribution + Student�s Contribution = Expected Family Contribution (EFC)

29. Need Calculation

30. Need Varies Based on Cost

31. How will the financial aid office try to meet my �NEED�? School �A� represents a private school with higher tuition, private grants, endowments, etc. School �B� represents a four-year state institution. School �C� represents a 2-year technical or community college. Note that PELL and EFC do not change. Major changes in cost come from tuition. Note that Parent can borrow to meet the COA and can borrow for the EFC.School �A� represents a private school with higher tuition, private grants, endowments, etc. School �B� represents a four-year state institution. School �C� represents a 2-year technical or community college. Note that PELL and EFC do not change. Major changes in cost come from tuition. Note that Parent can borrow to meet the COA and can borrow for the EFC.

32. How Financial Need Is Met Almost half of the funding for undergrad and graduate students is in the form of federal student loans (47%). Private or alternative loans are not included in this figure; funding from private loans amounts to about the same as Pell grants ($13.1 billion).Almost half of the funding for undergrad and graduate students is in the form of federal student loans (47%). Private or alternative loans are not included in this figure; funding from private loans amounts to about the same as Pell grants ($13.1 billion).

35. Question # 26 � �What types of student aid interest you? This replaces the choice for loans or work-study. Student will enter one of the following choices from page 2 of the instructions: 1 = interested in work-study. 2 = interested in loans (must be repaid). 3 = interested in both loans and work-study. 4 = Not interested in either type of funding. 5 = I don�t know. Drug conviction question: 31 � affects eligibility only if you were convicted of possession or sale WHILE RECEIVING FEDERAL STUDENT AID.Question # 26 � �What types of student aid interest you? This replaces the choice for loans or work-study. Student will enter one of the following choices from page 2 of the instructions: 1 = interested in work-study. 2 = interested in loans (must be repaid). 3 = interested in both loans and work-study. 4 = Not interested in either type of funding. 5 = I don�t know. Drug conviction question: 31 � affects eligibility only if you were convicted of possession or sale WHILE RECEIVING FEDERAL STUDENT AID.

37. Step 4 � note color change to purple � this is for PARENTS to fill out.Step 4 � note color change to purple � this is for PARENTS to fill out.

38. Step 4, continued top of page 10 - Parent question # 89: As of today, what is the net worth of parents� current business and/or investment farms? (Q89) Do not include the value of a family farm that you/your parents live on and operate. NEW FOR THIS YEAR: Do not include the value of a small business that you (your spouse and/or your parents) own and control and that has 100 or fewer full-time or full-time equivalent employees. Step 5: Number in household/# in college. NEW: Public benefit programs. VERY IMPORTANT � check all that you receive. This will HELP you in determining lower EFC. Step 6 � Schools - For 2007-2008, student can list up to four schools at a time (changed from 6 schools). Student can go back online to add more schools through www.fafsa.ed.gov. Step 4, continued top of page 10 - Parent question # 89: As of today, what is the net worth of parents� current business and/or investment farms? (Q89) Do not include the value of a family farm that you/your parents live on and operate. NEW FOR THIS YEAR: Do not include the value of a small business that you (your spouse and/or your parents) own and control and that has 100 or fewer full-time or full-time equivalent employees. Step 5: Number in household/# in college. NEW: Public benefit programs. VERY IMPORTANT � check all that you receive. This will HELP you in determining lower EFC. Step 6 � Schools - For 2007-2008, student can list up to four schools at a time (changed from 6 schools). Student can go back online to add more schools through www.fafsa.ed.gov.

39. Both student and one parent must sign.Both student and one parent must sign.

40. If you prefer to go through the FAFSA on the Web Pre-Application Worksheet, these are the slides for the worksheet.If you prefer to go through the FAFSA on the Web Pre-Application Worksheet, these are the slides for the worksheet.

42. VERY IMPORTANT � The worksheet is only to assist you in preparing your answers for electronic application using FAFSA on the WEB. Do NOT mail the worksheet � keep it for your records.VERY IMPORTANT � The worksheet is only to assist you in preparing your answers for electronic application using FAFSA on the WEB. Do NOT mail the worksheet � keep it for your records.

43. This information and application is provided FREE by the Department of Education and financial aid professionals. Be wary of organizations that charge to you submit your FAFSA. Second Note � Unusual circumstances � as we talked about in the overview, contact your financial aid office if you have special circumstances.This information and application is provided FREE by the Department of Education and financial aid professionals. Be wary of organizations that charge to you submit your FAFSA. Second Note � Unusual circumstances � as we talked about in the overview, contact your financial aid office if you have special circumstances.

45. First question: �What types of student aid interest you? This corresponds to Question #26 on the FAFSA. NEW FOR THIS YEAR: 2 questions combined into one (Work-study and loans). On the worksheet, student will check off response. On FAFSA on the WEB, student will enter one of the following choices: 1 = interested in work-study. 2 = interested in loans (must be repaid). 3 = interested in both loans and work-study. 4 = Not interested in either type of funding. 5 = I don�t know. Drug conviction question: 31 � NEW CRITERIA: Affects eligibility only if student was convicted of possession or sale WHILE RECEIVING FEDERAL STUDENT AID. SECTION 2 = Student Dependency status First question: �What types of student aid interest you? This corresponds to Question #26 on the FAFSA. NEW FOR THIS YEAR: 2 questions combined into one (Work-study and loans). On the worksheet, student will check off response. On FAFSA on the WEB, student will enter one of the following choices: 1 = interested in work-study. 2 = interested in loans (must be repaid). 3 = interested in both loans and work-study. 4 = Not interested in either type of funding. 5 = I don�t know. Drug conviction question: 31 � NEW CRITERIA: Affects eligibility only if student was convicted of possession or sale WHILE RECEIVING FEDERAL STUDENT AID. SECTION 2 = Student Dependency status

46. Section 3 begins parental section. Note color change to light purple for parent sections. If student answered �NO� to all of the dependency questions in previous section, parents must complete the parent sections.Section 3 begins parental section. Note color change to light purple for parent sections. If student answered �NO� to all of the dependency questions in previous section, parents must complete the parent sections.

47. Section 3 (question 89) As of today, what is the net worth of parents� current business and/or investment farms? (Q89) Do not include the value of a family farm that you/your parents live on and operate. NEW FOR THIS YEAR: Do not include the value of a small business that you (your spouse and/or your parents) own and control and that has 100 or fewer full-time or full-time equivalent employees. Section 3 (question 89) As of today, what is the net worth of parents� current business and/or investment farms? (Q89) Do not include the value of a family farm that you/your parents live on and operate. NEW FOR THIS YEAR: Do not include the value of a small business that you (your spouse and/or your parents) own and control and that has 100 or fewer full-time or full-time equivalent employees.

50. AGAIN, VERY IMPORTANT � The worksheet is only to assist you in preparing your answers for electronic application using FAFSA on the WEB. Do NOT mail the worksheet � keep it for your records. You will go to www.fafsa.ed.gov to enter the information from the worksheet and electronically submit your FAFSA data. AGAIN, VERY IMPORTANT � The worksheet is only to assist you in preparing your answers for electronic application using FAFSA on the WEB. Do NOT mail the worksheet � keep it for your records. You will go to www.fafsa.ed.gov to enter the information from the worksheet and electronically submit your FAFSA data.

54. After you enter your information from this worksheet onto FAFSA on the Web, you will submit your form electronically. Once you have clicked on �SUBMIT�, you will receive this �FAFSA on the Web Submission Confirmation� screen. PRINT AND KEEP THIS PAGE! --- Proof of submission, confirmation number, and estimated EFC. FOR PARENTS WITH MORE THAN ONE STUDENT IN COLLEGE: Click on the link in the circled area to begin a new application for your second student. This will pre-populate the parent sections so you only have to complete the new information for your second student!After you enter your information from this worksheet onto FAFSA on the Web, you will submit your form electronically. Once you have clicked on �SUBMIT�, you will receive this �FAFSA on the Web Submission Confirmation� screen. PRINT AND KEEP THIS PAGE! --- Proof of submission, confirmation number, and estimated EFC. FOR PARENTS WITH MORE THAN ONE STUDENT IN COLLEGE: Click on the link in the circled area to begin a new application for your second student. This will pre-populate the parent sections so you only have to complete the new information for your second student!

55. Types of Financial Aid Need Based Scholarships Grants Employment Loans Non-Need Based Loans Some scholarships Some work-study Merit Based Scholarships Basically there are four main types of financial Aid � Scholarships, Grants, Work-study Employment and Loans. Can be based on Merit, need or other criteria. Basically there are four main types of financial Aid � Scholarships, Grants, Work-study Employment and Loans. Can be based on Merit, need or other criteria.

56. Sources of Financial Aid Federal State Institutional (school) Private Money comes from many different sources and all work together to create a �Package� of aid for your student.Money comes from many different sources and all work together to create a �Package� of aid for your student.

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58. Available Grants Federal Pell Grant Federal Supplemental Educational Opportunity Grant (FSEOG) Montana Higher Education Grant (MHEG) Montana Guaranteed Student Loan Program Grant (MGSLP) Baker Grant (Formerly MTAP) Acce$$ Grant

59. Available Grants, ContinuedNEW FEDERAL GRANT PROGRAMS National Academic Competitive Grant (ACG) First and second year students �Rigorous Course of Study� 3.00 GPA in second year $750 first year, $1,300 second year National �Science and Mathematics Access to Retain Talent� (SMART) Third and Fourth year students Must be in Specific Major Cumulative GPA 3.00 $4,000 max per year For both ACG and SMART Grants: Must be US Citizens Must be Pell eligible and a Pell recipient in the term the grant is awarded Must be enrolled full-time Questions on the 2007-2008 FAFSA will help determine student�s eligibility NEW Grant Programs Beginning 2006-2007 Aid Year NEW Grant Programs Beginning 2006-2007 Aid Year

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61. Federal & State Work Study Can be need or non-need based On or off campus Earnings do not count as income on next year�s FAFSA Amount awarded is not guaranteed to be earned

63. Types of Educational Loans Federal Loans Stafford Perkins Graduate PLUS Parent PLUS Private Loans

64. Federal Loan Eligibility Loans are a type of financial aid Need and Non-need based Enrolled at least half-time

65. Federal Perkins Loan Need based Interest rate: 5% fixed Nine month grace period Deferment & cancellation provisions Limited funding � apply early

66. FFELP / Direct Loans There are four types of FFELP/Direct loans Subsidized Stafford Loan Need based Unsubsidized Stafford Loan Non�need based Parent Loan for Undergraduate Students (PLUS) Graduate PLUS Loan

67. Stafford Loans FFELP/Direct Loans Subsidized Stafford Loan Need based Unsubsidized Stafford Loan Non-need based

68. FFELP /DirectAnnual Loan Limits Freshman - $3,500 Sophomore - $4,500 Junior/Senior - $5,500 Graduate and Professional - $8,500 The limits for freshman, sophomore Junior and Senior are based on DEPENDENT student loan eligibility. Students who meet Independent criteria are eligible for additional loan funding at each grade level.The limits for freshman, sophomore Junior and Senior are based on DEPENDENT student loan eligibility. Students who meet Independent criteria are eligible for additional loan funding at each grade level.

69. FFELP / Direct Loans Interest rate: 6.8% fixed FFELP - 1.5% origination fee, 1% default fee Direct � 2.5% loan fees Deferment/Cancellation provisions 6 month grace period 10 year repayment

70. Federal Plus (Parent) Loan Interest rate: 8.5% fixed Borrowers are parents of dependent undergraduate students � credit check is performed FFELP - 3% origination fee; 1% insurance fee Direct � 4% loan fees Loan limits: Cost of attendance less other aid No aggregate limit Repayment begins 60 days after fully disbursed

71. Graduate PLUS & Alternative Loans Graduate PLUS Federal Loan 8.5% fixed For graduate/professional students Private/Alternative Loans LAST Resort Interest and terms vary Cannot be combined with federal student loans in a federal consolidation � always a separate payment

72. Let�s talk about Scholarships first . . .Let�s talk about Scholarships first . . .

73. Scholarship Types Merit (Honors) Institutional Activities Community MERIT � GPA, ACT, SAT, other academic measure; INSTITUTIONAL � by major, donor criteria; ACTIVITIES � 4-H Club, etc. COMMUNITY � Churches, employers, service groups such as Elks, etc.MERIT � GPA, ACT, SAT, other academic measure; INSTITUTIONAL � by major, donor criteria; ACTIVITIES � 4-H Club, etc. COMMUNITY � Churches, employers, service groups such as Elks, etc.

74. Montana University System Honor Scholarship MUS Honor Scholarship Minimum GPA 3.5 In top 25% of graduating class Montana resident Met college preparatory requirements Accepted to a Montana University System College or University Application and copy of college acceptance letter due January 31st

75. Governor�s Postsecondary Scholarship Programs Governor�s Merit Scholarship Top 25% of graduating class Minimum GPA 3.0 Same application as MUS Honor Scholarship Due March 31st Cannot be a MUS Honor Scholarship recipient Governor�s Merit-At-Large Scholarship Application online at www.mgslp.org Can begin applying January 2, 2007 Application, list of activities participated in, 250 word essay, college acceptance letter, copy of high school transcript, and Student Aid Report (SAR) Due March 31st

76. Scholarship Searches Colleges Internet www.safmt.org (MCIS) www.collegeboard.org www.finaid.org Avoid Scams Free, Free, Free! Check with colleges you plan to attend for institutional scholarship forms, requirements, deadlines. Free searches online � listed above and I your �Basics� Booklet in your packet. These are FREE searches - don�t pay money to get �free� money!Check with colleges you plan to attend for institutional scholarship forms, requirements, deadlines. Free searches online � listed above and I your �Basics� Booklet in your packet. These are FREE searches - don�t pay money to get �free� money!

77. Other Resources Health & Human Services Veteran�s Benefits Military Service Scholarship (ROTC) Bureau of Indian Affairs (BIA) Grants Tribal Assistance Vocational Rehabilitation Health and Human Services � possible daycare or housing assistance; Voc-Rehab �if your student has a documented disability, some assistance may be available.Health and Human Services � possible daycare or housing assistance; Voc-Rehab �if your student has a documented disability, some assistance may be available.

78. Taxpayer Relief Act Hope Scholarship Tax Credit Lifetime Learning Tax Credit Student Loan Interest Deduction Education IRA College Savings Plans There is more information beginning on page 10 of the �Basics of Funding your Education� Booklet in your packet, as well as websites where you can get more information - beginning on page 12.There is more information beginning on page 10 of the �Basics of Funding your Education� Booklet in your packet, as well as websites where you can get more information - beginning on page 12.

79. Financial Aid Mistakes to Avoid Four Most Common Mistakes Submitting an Incomplete or Inaccurate FAFSA Procrastination Falling for Scholarship and FASFA Scams Assuming that Financial Aid is for Someone Else

80. Free HelpSUNDAY, FEBRUARY 11, 2007COLLEGE GOAL SUNDAY Come to College Goal Sunday to get FREE assistance on completing the FAFSA. Financial Aid experts will be on hand to answer your questions, assist with application process. See information card in your packet. Get a PIN number before you come . . .

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82. Thank you for your time and attention!