Tuscarora High School
What You Need to Know
About the College Financial Aid Process
Topics
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What is Financial Aid?
Need Components
Types of Aid
Applying for Aid
Dependency Status and Parents
Effect of Outside Aid
Change in Circumstances
What’s Next?
What is financial aid?
Financial aid consists of funds provided to
students and their families to help pay for
postsecondary education.
Financial aid helps to bridge the gap between
the Cost of Attendance and the Expected Family
Contribution.
What is Cost of Attendance (COA)?
Other
Room and
Board
Books
Tuition and
Fees
Travel
Personal
Varies based on the school
What is Expected Family
Contribution (EFC)?
• Amount a family can reasonably be expected
to contribute
• Two Components
– Parent Contribution + Student Contribution
• Calculated using data from the FAFSA
• Does not change based on the school
Financial Need Calculation
Cost of Attendance
– Expected Family Contribution
= Financial Need
Where does financial aid
come from?
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Federal government
State government
College/University
Private sources
Types of Financial Aid
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Scholarships
Grants
Work-study
Loans
Scholarships
• Money that does not have to be paid back
• Usually based on merit, skill, a unique characteristic,
and/or need
• Sources
– Civic organizations, churches, employers, schools
• Free online web searches
– www.fastweb.com
– https://bigfuture.collegeboard.org/scholarship-search
• CAUTION – Beware of scams
– http://www.finaid.org/scholarships/protecting.phtml
Grants
• Money that does not have to be paid back, some
may require an “agreement to serve” after
graduation
• Typically based on financial need
• Federal Grants
– Federal Pell Grant, Federal Supplemental Education
Opportunity Grant (FSEOG), Teacher Education Assistance
for College and Higher Education Grant (TEACH)
• State Grants
– Virginia Guaranteed Assistance Program, Commonwealth
Award, Virginia Tuition Assistance Grant
Work-study
• Allows student to earn money to help pay for college
costs
• On and off-campus jobs available
• Paid by:
– Paycheck
– Credit to student account
– Non-monetary compensation
Example: Room and Board (resident assistants)
• Not all colleges participate
Loans
• Money that is borrowed to finance educational
costs, which must be repaid
• Borrower - Student and/or Parent
• Repayment
– Student - After graduating or dropping below half-time
enrollment
– Parent - Typically 60 days after the first disbursement or
can request deferment while student is enrolled at least
half-time (interest accrues while deferred)
– Repayment terms and options vary for students and
parents
Loans
Common Federal Loan Programs
• Federal Perkins Loan – fixed 5% interest rate
• Federal Direct Student Loan
– Subsidized – fixed 3.4% interest rate, interest does not
accrue while in school, based on need
– Unsubsidized – fixed 6.8% interest rate, interest accrues
while in school, but does not require in-school repayment
on interest, not based on need
• Federal Parent PLUS Loan – fixed 7.9% interest rate,
one parent borrower, good credit history
FAFSA Process
Complete the Free Application for Federal Student Aid
(FAFSA) each year.
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Available January 1 of each year at www.fafsa.gov
Check with colleges for any priority deadlines
File electronically for faster processing and online tracking
Collects demographic and financial information
If “Will File”, you can provide estimated tax information, but
will need to update once taxes have been filed
• Information collected is used to determine EFC
• Apply for PIN (Personal Identification Number)
• Student and parent sign with their own PIN
PIN Process
• Student and parent each apply for a personal
identification number (PIN) at www.pin.ed.gov
• Can be requested at any time, even real-time as the
student completes the online FAFSA
• Must have PIN to electronically sign the FAFSA
• PIN can be used to sign loan master promissory note
(MPN)
General Student Criteria
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U.S. citizen or eligible non-citizen
Registered with Selective Service (males)
Valid Social Security Number (SSN)
High school diploma, GED, or homeschooling
credential
• Enrolled or accepted in an eligible degree or
certificate program
• Criminal convictions (including drug convictions) may
limit eligibility, depends on the conviction and type
of institution
Dependency Status
FAFSA will ask a series of questions to determine if the
student is dependent or independent, including:
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24 years or older
Married
Master’s or doctorate degree program
Military service – Active or Veteran
Children and/or dependents, provide half of support
Foster care, deceased parents, dependent or ward of court,
emancipated minor or legal guardianship, homeless
* If all “No” answers, student is dependent.
* If “Yes” to any question, student is independent.
Who is the ‘parent’?
• Biological parents information or adoptive parents
should be provided on the FAFSA
• Grandparents, legal guardians, foster parents, older
brothers or sisters, and uncles or aunts are not
considered parents on the FAFSA unless they have
legally adopted you
• Possible dependency override in certain
circumstances – rare, but speak with your financial
aid administrator
Which parent?
In cases of divorce or separation:
• Who did the student live with the most during the
past 12 months?
• If neither or both, who provided the most financial
support?
– Example: Who paid for health or car insurance?
Household Size
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Student
Parents
Dependents
Others who live with you and you are
providing more than half of their support and
will continue to provide from July 1 – June 30
Errors can be costly!
• Read instructions and complete carefully! Incorrect
or missing information may delay the process and
result in loss of financial aid
• Most Common Errors
– Social Security Numbers
– Divorced/remarried parental information
– Income earned/paid and untaxed income
– Household size and number of household
members in college
– Real estate and investment net worth
IRS Data Retrieval Tool (DRT)
• Applicants have the option to transfer IRS tax data into
their FAFSA using the DRT
• DRT allows the applicant to file more quickly and
accurately, saving up to 8 weeks
– File taxes electronically and early, then file your
FAFSA using the IRS DRT after 10-14 days
• Not eligible for IRS DRT?
– Complete based on 2012 tax return and order an
IRS transcript of any 2012 tax returns filed at
www.irs.gov
Verification
• At least one in three applications may be selected by
a school
• Did not use the IRS DRT and are selected for
verification? You must submit an IRS Transcript
• Contact your financial aid office about any other
documentation needed for the verification process
• Financial aid cannot be released to a student’s
account until this step is completed
Role of the College Financial
Aid Office
• Assists students and their families in understanding
and utilizing financial aid resources
• Determines federal and state aid eligibility
• Verifies FAFSA information
• Reviews special circumstances
• Packages financial aid depending on fund availability
• Sends award notification (electronic or paper) with
award amounts, disbursement methods, timeframes,
and any terms and conditions of each award
Outside aid vs. Award package
• Notify school of all outside/private scholarships and
grants
• Could result in a change to need-based aid if the
outside aid causes you to exceed your financial need
or COA
Student Aid Example
Cost of Attendance $24,000
EFC
$4,000
Grants
$6,000
Work-study
$4,000
Loans
$6,000
Outside award #1
$2,000
Outside award #2
$1,000
Outside award #3
$3,000
Student Aid Example, Cont.
• Since the student submitted a letter to the Financial
Aid Office confirming an additional $6,000 in outside
aid, the Financial Aid Office must reduce other aid to
keep the student within their $24,000 cost of
attendance
• Typically schools will reduce loans first since they
require repayment
• A revised award notice will be sent to the student
Change in Circumstances
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Loss of income or benefit
Death of a parent
Parent divorced or separated after FAFSA is filed
Unusually high medical expenses paid but not
reimbursed by insurance
You may be eligible for adjustment based on
professional judgment - speak with your financial aid
administrator
What’s Next?
• After FAFSA processing, student will receive a Student
Aid Report (SAR) via link in email if student provided valid
email address or paper by mail if no valid email address
provided
• Review SAR comments and check for accuracy
• Remember to update any estimated information
• Make sure you meet all admissions and financial aid
deadlines. Check each school’s website for details
• Submit any requested documents
• Search and apply for other sources of aid, such as private
scholarships and grants
Summary
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Start the process early
Know any and all deadlines
Know what information and forms you need
Provide accurate information
Make and save copies of everything
Follow up: typical processing times are 4-6 weeks
Check your email regularly
If you have a question – ASK!
Saturday February
10-2pm
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14
What is Super Saturday?
• FREE assistance completing the FAFSA (Free
Application for Federal Student Aid)
• Financial Aid presentations
• Chance to win a $100 book scholarship
Who should attend?
High school, college, and adult students who plan to attend
college during the 2015-2016 academic year
www.vasfaa.org
Questions?
Good Luck and Thank You
for participating in
Our Financial Aid Workshop