2011 High School
Advisor Training
Federal and State
Update
Presenters
Date
About OASFAA & this presentation
• OASFAA is a non-profit organization comprised of
volunteer financial aid professionals.
• OASFAA has provided the information today as a free
service to access staff and high school counselors.
• You have permission to copy and distribute these
materials to your students and families. Charges may
not be assessed for the material or for the information
presented. Permission must be granted for other use of
this information or these materials. Contact the
OASFAA Outreach Chairperson(s) listed on the
OASFAA website, or e-mail the OASFAA Outreach
Committee at outreach@oasfaa.org
2
“The Guide”
• Throughout this
presentation “The Guide”
refers to The Guide to
Federal Student aid.
• “The Guide” is
available free to
download from
www.fsapubs.gov.
• A hard copy can also
be requested for free
from the same
website.
3
Today’s Agenda
•
•
•
•
•
4
Deadline and FAFSA Overview
Program Integrity Updates
Update on Federal Aid Programs
Update on State Aid Programs
Review of Resources
Deadline and FAFSA
Overview
5
Priority Deadlines
• Priority deadlines, whether it be for admissions or the
FAFSA, are very real, and should be treated as such.
• Very few schools, if any, will consider student
applications regarding priority aid after a deadline has
passed.
• If a priority deadline exists, it is best to use completed
tax information via the IRS Data Match process.
• If taxes have not been completed, use estimated
income and tax information.
• Make sure to update your FAFSA with actual
income/tax data once tax filing is complete.
6
FAFSA Filing Statistics
•
•
•
7
Numbers provided for the first two
quarters of the year due to
availability (courtesy Federal
Student Aid Data Center,
www.federalstudentaid.ed.gov)
FAFSA filing for the first two
quarters in 2011-2012 (14.96
million) are up approximately 8%
when compared to 2010-2011
(13.86 million), and are up
approximately 24% when
compared to 2009-2010 (12.03
million).
If 8% increase stays consistent for
2011-2012, over 22.8 million
FAFSA’s will be completed by the
end of the academic year!
FAFSA On The Web
Worksheet
• Useful guide to help
prepare and then
complete the FAFSA.
• Available for order or
download at
www.fsapubs.gov
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FAFSA on the Web Homepage
 www.fafsa.ed.gov
 Simplified options
 An updateable
announcement
section
 Access to FAFSA
PDF and paper
FAFSA information
9
Detailed College Info and
Comparison
•
•
•
•
•
•
•
10
College’s website
School type
Tuition and fees
Net price average
Graduation rates
Retention rates
Transfer rates
FAFSA on the Web
Good reasons to file electronically:
• Built-in edits to prevent costly errors
• Skip logic allows student and/or parent to
skip unnecessary questions
• Option to use Internal Revenue Service
(IRS) data retrieval
FAFSA on the Web
Good reasons to file electronically:
• More timely submission of original
application and any necessary corrections
• More detailed instructions and “help” for
common questions
• Ability to check application status on-line
• Simplified application process in the future
Frequent FAFSA Errors
•
•
•
•
•
•
•
•
Social Security Numbers
Divorced/remarried parental information
Income earned by parents/stepparents
Untaxed income
U.S. income taxes paid
Household size
Number of household members in college
Real estate and investment net worth
Higher Education Reconciliation Act of 2005 (HERA)
College Cost Reduction and Access Act of 2007 (CCRAA)
▼ Increased income protection allowance for
dependent students:
•
•
•
•
•
•
•
14
06-07
07-08
08-09
09-10
10-11
11-12
12-13
$2,550
$3,000 (HERA)
$3,080
$3,750 (CCRAA)
$4,500
$5,250
$6,000
Program Integrity
Updates
15
Satisfactory Academic Progress
(SAP) Policy
• What is Satisfactory Academic Progress (SAP)?
• SAP is the process of insuring a student
progresses toward the completion of a degree
or certificate in a timely manner, as prescribed
by The U.S. Department of Education (ED).
• ED is now requiring schools to have a SAP
policy separate from an institution’s academic
standards policy.
16
Elements of SAP
• ED states that every school’s SAP
policy must include two standards
covering three (3) elements.
• Qualitative Standard
• Grade Point Average, or GPA
• Quantitative Standard
• Completion Percent
• Maximum timeframe for
degree/certificate completion
17
What is the significance of
SAP?
• During this time of heightened fiscal scrutiny at
the federal level, there is increased pressure on
institutions to be mindful of their responsibility to
be sound stewards of Title IV funds, and have
policies and procedures in place that directly
reflect the guidance and regulations set forth by
The U.S. Department of Education (ED).
• Essentially, ED is mandating schools monitor
student progress more closely, in an effort to cut
down on exploitation of federal financial aid.
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Verification
 What is verification?
 Verification (definition): the act or process of
verifying.
 Verify (definition): to establish the truth,
accuracy, or reality of.
 Financial Aid Verification is the process of
establishing the accuracy of the
information submitted on the FAFSA.
Verification
Verification is a federal
requirement
and it is the responsibility of the
Institution to complete the
verification process.
Verification
The Central Processor and/or
Institutions
select applicants
for verification
based on statistical analysis
Verification
What information
must the school
verify?
Verification
All Applicants
• Number of household members
• Number of household members enrolled at least halftime in an eligible post-secondary school
• Food stamps – Supplemental Nutrition Assistance
Program (SNAP)
• Child Support Paid
• Any other item selected by the School or Federal
processor
Verification
Tax Filers
• Adjusted Gross Income (AGI)
• U.S. Income tax paid
• Untaxed Income
•
•
•
•
•
Untaxed IRA distributions
Untaxed pensions
Education credits
IRA deductions
Tax exempt interest
Verification
Non-Tax Filers
• Income earned from work
• Untaxed Income
Verification
What is Acceptable
Documentation?
Verification
• Household Size – Signed statement listing;
• Name and age of each household member and relationship to
the student
• Number in College – Signed statement or
verification by other Institution listing;
•
Name and age of each household member who is or will be
enrolled at least half-time at an eligible post-secondary
institution and the name of the institution
Verification
• Food Stamps-Supplemental Nutrition Assistance
Program (SNAP);
• Documentation from the agency that issues the Food Stamps
benefit
• Child Support Paid – Signed statement from the
individual who paid the child support listing;
•
•
•
The amount of child support paid
The name of the person to whom the support was paid
The name of the children for whom the support was paid
Verification
Documentation of Tax Information
• IRS Data Retrieval Process
• If a student/parent(s) tax information is transferred using
the IRS Data Retrieval Tool, they will not have to submit an
IRS Tax Return Transcript.
• IRS Tax Return Transcript
• Transcript is free
• Request on-line at http://www.irs.gov
• Request by calling 1-800-908-9946
Note: In some cases signed copies of the IRS
Federal Tax Form may be required.
Providing Tax Information–
IRS Data Retrieval Tool
• Can be used if:
• Initial FAFSA
• FAFSA corrections.
• Cannot be used if:
• Parents are married
but filing separately.
• An amended return is
filed.
• There is a change in
marital status after
taxes are filed.
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Providing Tax Information–
IRS Data Retrieval Tool
• While completing FAFSA
on the Web, applicant
may submit real-time
request to IRS for tax
data.
• IRS will authenticate
taxpayer’s identity.
• If match found, IRS sends
real-time results to
applicant in new window.
31
Providing Tax Information–
IRS Data Retrieval Tool
• Applicant chooses whether
or not to transfer data to
FAFSA on the Web.
• Feature available after
January 31st for 12/13
FAFSA.
• Electronically filed tax return
information will be available
from the IRS in 1-2 weeks,
data from paper tax returns
will be available in 6-8
weeks.
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Verification
Documentation of Income
for Non-Tax Filers
 Copy of the W-2’s
 A signed statement certifying - The individual has not
filed and is not required to file an income tax return for
tax year 2011
 The sources of income earned from work as reported
on the FAFSA and amounts of income from each
source for tax year 2011 that is not reported on IRS
Form W–2.
Verification
Documentation for Independent
Students
 Guardianship, ward of the court
 Must have copy of court document
 Homelessness
 Homeless liaison, pastor, school counselor
Special Circumstances
• Common examples of special circumstances reported to
financial aid offices:
•
•
•
•
•
Medical bills
Parent or student loss of income
Unusual debt or one-time income
Tuition expenses at an elementary or secondary school
Parent in College
• The financial aid administrator must have a compelling
reason to use professional judgment.
• The financial aid administrator’s decision regarding
professional judgment is final, and cannot be appealed
to ED.
35
Special Circumstances
• Common Special Circumstances and
FAFSA questions, and where to find
common answers.
• What about stepparent information?
• “The Guide”, p. 29
• Paper FAFSA, p. 9, top of 2nd column
• What about dependency status?
• “The Guide”, p. 27
• Paper FAFSA, pp. 5, 9
36
Net Price Calculator
(NPC)
• All Title IV institutions enrolling full-time, first-time
degree or certificate seeking undergraduate
students are required to have an NPC posted on
their website by Oct. 29, 2011.
• Using both student-entered and institution-provided
data, the NPC allows prospective students to
calculate their estimated net price at an institution
based on the following basic formula:
• Price of attendance minus grant aid
• Schools may use ED’s NPC template, create their
own template, or purchase a template from a third
party.
Net Price Calculator
• Benefits
• Designed to provide
accurate and timely
information about the
net price of a college.
• Can assist families in
comparing colleges
based on net price and
financial aid.
• Weaknesses
• Inclusion of direct and
indirect costs in “price
of attendance”
component can
significantly inflate the
price tag.
• Institution’s flexibility to
customize template
could make college
costs comparisons an
extremely complex
process.
Update on Federal Aid
Programs
39
Federal Aid Programs,
2012-2013
Pell Grant
ACG and SMART
TEACH
Campus Based Programs
Direct Loans
40
Federal Pell Grant 20122013
• Maximum award
amount remains the
same as 2011-2012
• $5,550 maximum
award for full-time
enrollment and an
Expected Family
Contribution (EFC) of
zero
41
• Year-round Pell (two
Pell awards within the
same academic year)
has been eliminated.
• Effective date July 1,
2011
ACG and SMART, 20122013
• Academic Competitiveness
Grant (ACG) and the
National Science &
Mathematics Access to
Retain Talent (SMART)
Grant have been
discontinued as of July1,
2011.
42
TEACH, 2012-2013
No Changes!
Grant of up to $4,000 per year to students who intend
to teach in a public or private elementary or
secondary school that serves students from lowincome families.
Service requirement upon graduation must be met, or
grant becomes an Unsubsidized Stafford Loan that
must be re-paid!!
43
Campus Based Programs,
2012-2013
Federal
Supplemental
Education
Opportunity
Grant
(FSEOG)
Federal
Work
Study
Federal
Perkins
Loan
All of the above programs will see a reduction in
funding for 2012-2013. However, the decrease will
vary from school to school, and exact funding
amounts have yet to be announced.
44
Federal Work Study
•
•
•
•
•
45
Undergraduate or graduate students are eligible
Employment can be on or off campus
FWS wages excluded from EFC calculation!!!
Eligible employers
• School
• Federal, state, or local public agency
• Private non-profit organization in academically
relevant jobs
• For-profit organization in academically relevant jobs
• Community service activities
Ohio Minimum Wage in 2012 is $7.70/hour
Federal Supplemental Educational
Opportunity Grant (FSEOG)
• Federal SEOG
• Undergraduates with exceptional financial
need.
• Pell Eligible students with the lowest EFC
• Award ranges from $100 to $4000, depending
on when student applies, financial need, and
the funding and policies of school attending.
46
Federal Perkins Loan
•
•
•
•
•
47
Eligible students (priority to exceptional need)
• Undergraduate or graduate students
• Must file the FAFSA
Annual and aggregate loan limits
• Up to $5,500 annually for undergraduates
(actual awards, if any, will vary between schools)
• $27,500 aggregate for undergraduates
Interest rate: 5% (fixed) during repayment
Interest subsidized during in-school and nine-month
grace period
Deferment and cancellation provisions available
Direct Loans, 2012-2013
• Direct Subsidized and Unsubsidized
Loans are two separate, unique types of
loans that are awarded separately.
48
Subsidized
Unsubsidized
Need based
Not based on financial need
Interest is fixed at 6.8% for all
new undergraduate loans
disbursed after July 1, 2012.
Interest is subsidized while
the student is in school and
during deferment.
Interest is fixed at 6.8% for all
new loans disbursed after July
1, 2006. Interest accrues from
time of disbursement of the
funds.
Direct Loans, 2012-2013
Class Year
Base Amount
Additional
Unsubsidized
Amount
Freshman
$3,500
$2,000
$5,500
Sophomore
$4,500
$2,000
$6,500
Junior
$5,500
$2,000
$7,500
Senior
$5,500
$2,000
$7,500
Total Available
to Borrow
• Independent Students and Dependent Students whose
parents have been denied the PLUS Loan are eligible for
additional Unsubsidized Stafford Loans ($4,000 as
Freshmen and Sophomores and $5,000 as Juniors and
Seniors)
49
Direct Loans, 2012-2013
• 1% default fee (deducted from the
borrowers disbursement so borrowers net
99% of what they borrow).
• The Budget Control Act (BCA) of 2011,
Section 503 eliminated rebates in the
Direct Loan program.
50
Direct Loans, 2012-2013
FAFSA
MPN
51
Follow instructions at
school attending
Entrance Counseling
Disbursement to
student account
Notification of
servicer (instruct
students to watch
and save email/snail
mail)
Direct Loans, 2012-2013
• Parent PLUS Loans
• Loans to parents of dependent students.
• Loan limits are up to the cost of education
less any financial aid received.
• Interest rate is 7.9% fixed.
• Repayment begins within 60 days of full
disbursement.
• Payments may be deferred while the student is in
school.
• FAFSA completion is required.
52
Direct Loans, 2012-2013
• Parent and Graduate PLUS Loan Fees
• 4% fee.
• Rebate deducted from the disbursement so the
borrower nets 96% of what is borrowed.
• The Budget Control Act (BCA) of 2011,
Section 503 eliminated rebates in the
Direct Loan program.
53
Direct Loans, 2012-2013
• Subsidy on graduate and professional
Direct Loans eliminated, for new loans first
disbursed after July 1, 2012.
• Repayment incentives on Direct Loans
eliminated for new loans first disbursed
after July 1, 2012.
• Direct Subsidized Loan interest rate to
revert to 6.8% for new loans first disbursed
after July 1, 2012.
54
Update on State Aid
Programs
55
Ohio Aid Programs, 20122013
• Ohio College Opportunity Grant (OCOG)
• War Orphans Scholarship
• National Guard Scholarship
• Academic Scholarship
• Safety Officers Memorial
• Nurse Education Assistance Loan Program
(NEALP)
• Choose Ohio First
56
Ohio College Opportunity
Grant (OCOG)
•
•
•
•
•
57
Students must file the FAFSA, be Ohio residents and
attend an Ohio public university main campus (not
regional campuses or community colleges), Ohio private,
non-profit colleges or universities, and Ohio private, forprofit institutions.
The Expected Family Contribution (EFC) is the index
number for awarding OCOG
EFC eligibility range is from 0000-2190
A part-time student will receive a pro-rated award
Available for continuous enrollment (includes summer)
OCOG, 2012-2013
▼ Total funding level for 2012-2013 will be
the same as the total funding level for
2011-2012
$672 for students at public main campuses
$1,872 for students at most private, non-profit
$192 for students at most private, for-profit
58
War Orphans Scholarship
2012-2013
• For Ohio dependents of deceased or severely disabled
veterans.
• Funding levels are reviewed annually, so funding for
2012-2013 will not be determined until approximately
July 2012.
• Initial reports indicated funding levels will stay the same as
in 2011-2012.
• The current annual, full-time award is 80% of tuition and
general fees at all Ohio public colleges and universities.
• The current annual, full-time award for students at
eligible private colleges and universities (both non-profit
and for-profit) is $4,797.
59
Ohio National Guard
Scholarship 2012-2013
• Eligibility determined by the Ohio Adjutant General.
• Funding levels are reviewed annually, so funding for
2012-2013 will not be determined until approximately
July 2012.
• Initial reports indicated funding levels will stay the same as
in 2011-2012.
• The current annual, full-time award is 100% of tuition
and general fees at all Ohio public colleges and
universities.
• The current annual, full-time award for students at
eligible private colleges and universities (both non-profit
and for-profit) is $8,696.
60
Safety Officers Memorial
Scholarship 2012-2013
• For Ohio dependents and spouses of safety officers killed in
the line of duty.
• Funding levels are reviewed annually, so funding for 20122013 will not be determined until approximately July 2012.
• Initial reports indicated funding levels will stay the same as
in 2011-2012.
• The current annual, full-time award is 100% of tuition and
general fees at all Ohio public colleges and universities.
• The current annual, full-time award for students at eligible
private colleges and universities (both non-profit and for-profit)
is $6,768.
61
NEALP, 2012-2013
Loans for RN candidates and
graduate nurse faculty students
Loans can be
forgiven with 4 to 5
years of service as
a nurse or nurse
instructor in Ohio
upon completion of
degree
62
Loans range from
$1,500 to $5,000
Choose Ohio First, 20122013
• Various programs with STEM concentrations
• State funding for these programs will
increase slightly for 2012-2013, but individual
awards will vary from school-to-school.
• Partnerships of private/public schools
apply for funding (ex. Public community
college and private four-year institution.
63
Ohio Education and Training
Voucher Program
• www.statevoucher.org
• Eligibility requirements:
• In foster care on their 18th
birthday and aged out at
that time.
• Adopted from foster care
with the adoption finalized
after their 16th birthday
• Foster care case closed
between the ages of 18
and 21.
64
Review of Resources
65
College Goal Sunday
• Sunday, February 12,
2012
• www.ohiocollegegoal
sunday.org
• Student/Family
registration is now
available.
• Please check the
website for locations
near you.
66
OASFAA-Financial Aid Night
Assistance
• High School Counselors can now request
a financial aid night presenter through the
OASFAA website.
• http://www.oasfaa.org/docs/outreach/gettin
gthemessage.html
67
Resources
68
Resources
69
Resources
• Federal Student Aid Information Center
(inside cover of “The Guide”)
• (800)433-3243
• www.federalstudentaid.ed.gov
• Federal Student Aid Publications Website
• www.fsapubs.gov
• Ohio College Access Information Hotline
• (877)428-8246
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Resources
• Ohio College Access
Network (OCAN)
• www.ohiocan.org
• Local OCAN
representatives can
be found through
http://site.ohiocan.org/
directory
71
Resources
• Ohio School
Counselor Resources
Binder
• Updates will be sent to
counselors
periodically, and when
applicable.
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Questions?
73