Financial Aid Overview and Resources for Educators
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Today’s Topics • What Is the FAFSA? • Before Applying • When to Apply • How to Apply • What to Expect After Applying • Where to Get Help and Info • Updates for 2012-13
What is Federal Student Assistance?
Financial assistance for students enrolled in an eligible program at a Title IV participating school.
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Before Applying Get a PIN •PIN is student’s signature • Parent needs PIN too • www.pin.ed.gov • Student must keep it PRIVATE
When to Apply -General Timeframes • Award year = July 1, 2012 - June 30, 2013 • Application cycle = January 1, 2012 – June 30, 2013
How to Apply Application Methods • Paper FAFSA – NOT recommended • Order at 1-800-4-FED-AID or • www.edpubs.gov or • Download PDF at www.fafsa.gov • Apply through college (if college offers that option) • Quickest and easiest: FAFSA on the Web at www.fafsa.gov
FAFSA Statistics As of 11/21/11
FAFSA Submitted 2010-2011 approx. 21 Mill.
2011-2012 approx. 19.5 Mill. (Jan. 2011-Nov. 2011)
Avg. Submission Time 2010-2011 32 Minutes
2011-2012 23 Minutes
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Homepage Makeover Simplified options Updated graphics An announcement section for important updates throughout the year Access to FAFSA4caster Access to FAFSA PDF and information about getting a paper FAFSA
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FAFSA Questions What Does the FAFSA Ask About? (continued) • Student Dependency Status
• Parent Information • Independent Student Information • Colleges to Receive Information
Basic Eligibility Requirements Students must have: • High School Diploma, GED or ATB • A Social Security Number (with limited exceptions) • U.S. Citizenship or be an Eligible Noncitizen • Registered with the Selective Service (Males)
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Financial Aid Process High Level Overview of the FAFSA Steps
Student completes the FAFSA and signs with FSA PIN
FAFSA is processed by FSA; Student receives a SAR; College is sent an ISIR
College reviews ISIR and assembles award package for the student
Student reviews award package; compares to other award letters; student determines which college to attend 11
What to Expect After Applying Hearing from the Department of Education
•To check status: www.fafsa.gov to log in • Student receives notice of Student Aid Report within about three days - Student Aid Report summarizes student’s responses - Can make corrections on FAFSA on the Web - Student Aid Report shows Expected Family Contribution (EFC)
Financial Aid Terminology Cost of Attendance
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Tuition & Fees Room & Board Books & Supplies Equipment & Transportation Miscellaneous Personal Expenses Child Care
Parent Contribution Student Contribution
= Expected Family Contribution (EFC) Cost of Attendance (COA) - Expected Family Contribution (EFC) = Financial Need 13
Types of Federal Student Aid 1. Federal Grants 2. Federal Work-Study 3. Federal Student Loans
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Federal Grants • Federal Pell Grant • Federal Supplemental Education Opportunity Grant (FSEOG) • Teacher Education Assistance for College and Higher Education (TEACH) • Iraq/Afghanistan Service Grant Note: all federal grant programs are need based with exception to the TEACH grant.
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Federal Work Study Program Provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay educational expenses. Eligible employers (On-campus or off-campus employment) Schools Federal, state or local public agency Private nonprofit organization Community service activities Students are paid at least federal minimum wage Not all colleges participate in the Federal Work-study program Funds depend on availability at the college 16
Federal Student Loans (Must be repaid – Loan amount varies) • • • •
Federal Perkins Loan Subsidized Direct Loan Unsubsidized Direct Loan PLUS Direct Loan (Parents)
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PLUS Direct Loans • PLUS loans originate through the William D. Ford Federal Direct Loan Program (Direct Loans). • Loan characteristics: For parents of dependent students Borrowers may receive loan amounts up to, but not exceeding the college’s ‘Cost of Attendance’ Borrower is responsible for all the interest Borrower must not have a negative credit history
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Independent Status • If any of the following criteria applies, the student is considered independent : 24 years or older Married Master’s or Doctorate Program Children and you provide ½ support In foster care since turning 13 Emancipated minor Currently or was in legal guardianship Homeless Serving Active Duty in U.S. Armed Force 19
Special Circumstances Divorce, Separation, Death Job Loss High Medical Expenses Elementary and Secondary Expenses Each Situation is Dealt With On A Case-By-Case Basis Circumstances Must be Well Documented Financial Aid Director Has Final Say‌ 20
2012--13 IRS Data Retrieval 2012 •Available Feb. 1, 2012 for 2012-13 FAFSAs IRS Data Retrieval 2010-2011 933,000 Retrievals
2011-2012 4.7 Mill. Retrievals
IRS Data Retrieval
IRS Data Retrieval,
Updates for Students in 2012--13 2012 • If student’s marital status changes after FAFSA is
filed and results in change in dependency status, number in household or number in college, student must speak to financial aid office to see whether he/she may make change to FAFSA • Publications migrated to online-only: •Save Your Money, Save Your Identity •Stafford Loan Forgiveness for Teachers NEW
Updates for Counselors in 2012201213 •College cost information and stats: •www.collegecost.ed.gov • Publications migrated to online-only: •Counselors and Mentors Handbook
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Reminder for Counselors •Federal Student Aid Information for Counselors website at www.fsa4counselors.ed.gov • “What’s New” section – important updates • “In Other News …” subsection – older announcements, useful tips, minor updates
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FSA Contact Center • The Federal Student Aid Information Center (FSAIC) operates a toll-free hotline to provide: Information about federal student aid programs; help completing the FAFSA; help in making corrections to a student’s SAR; information about the process of determining financial need and awarding aid; and information about federal student loans. www.fafsa.gov has help text and live chat 1-800-4-FED-AID (1-800-433-3243) TDD for hearing impaired individuals: 1-800-730-8913 Callers may choose English or Spanish Hours: Monday – Friday: 8:00am – Midnight ET Saturday: 9:00am – 6:00pm ET Sunday: Closed
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Further Information • www.studentaid.ed.gov
- www.studentaid.ed.gov/collprep - www.studentaid.ed.gov/guide - www.studentaid.ed.gov/pubs - www.studentaid.ed.gov/scholarship • 1-800-4-FED-AID (Customer Service)
FAFSA on the WEB FAFSA DEMO SITE Type into browser the follow http://fafsademo.test.ed.gov USER NAME: eddemo PASSWORD: fafsatest