FINANCIAL AID 101:
HOW DO WE PAY FOR COLLEGE?
Presented by:
Midwestern State University
Financial Aid Office
What is Financial Aid?
Money from a source other than the family
to assist with the cost of attending college,
which includes:
Scholarships
Grants
Loans
Employment
Tuition Exemptions
?? Numerous
Applications??
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FAFSA
Institutional Financial Aid Application
Admissions Application
Scholarship Application
TASFA – for Texas residents who
do not meet eligibility to file FAFSA
COMMON FINANCIAL AID TERMS
FAFSA – Free Application for Federal Student Aid
SAR – Student Aid Report
EFC – Expected Family Contribution
COA - Cost Of Attendance = cost of education, or
“budget”, per academic year
Title IV School Code – MSU is 003592; other
school codes available from your counselor or
the FAFSA online search
What is the FAFSA?
THE application for federal aid
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A standard form that collects demographic and
financial information about the student and family
•
Information used to calculate the Expected Family
Contribution or EFC
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Students must complete FAFSA for each school year
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Colleges may set FAFSA filing deadlines
FAFSA on the Web
Website: www.fafsa.gov
2013‒14 FAFSA on the Web available NOW
FAFSA on the Web Worksheet:
– Used as optional “pre-application” checklist
– Questions follow order of FAFSA on the Web
Signature page needed OR Electronic Signature Option w/PIN
Warning Signs of
Financial Aid Fraud
*NEVER pay a fee to complete or process the FAFSA –
IT IS FREE!!
* If filing FAFSA on the Web, go to www.fafsa.gov (NOT
.com!)
* Contact any Financial Aid Office if you need help
completing the FAFSA
* Avoid organizations that say they can help locate
more aid and then charge YOU a fee!!!
PIN Registration
Website: www.pin.ed.gov
Not required, but speeds
processing
May be used by students
and parents throughout
aid process, including
subsequent school years
Ability to retrieve PIN
immediately or via email
IRS Data Retrieval Tool
Students completing a 2013–14 FAFSA are STRONGLY
ENCOURAGED to utilize IRS Data Retrieval Tool beginning
ON/AFTER February 25, 2013!
• Student/parent will transfer 2012 income tax return onto the
2013-14 FAFSA while completing the application.
• Must allow 5-7 business days after you/parent electronically
file your tax return (but not before February 25) before you
will be able to download tax return information onto the
2013-14 FAFSA application.
• If you/parent file a paper tax return, you must allow up to 30
business days before you will be able to download tax return
information onto the 2013-14 FAFSA application.
IRS Data Retrieval Tool
Students NOT using the IRS DRT will most likely be selected for
‘verification’ and, if selected, student/parent MUST submit an IRS
TAX RETURN TRANSCRIPT to the MSU Financial Aid Office.
NOTE: copies of signed tax returns will no longer be accepted.
To request an IRS Tax Return Transcript, you/parent will be
required to provide the following information:
* Social Security Number or IRS individual taxpayer
identification number)
*Date of birth
*Street Address and Zip Code
To request a free copy of your/parent IRS Tax Return Transcript:
www.irs.gov
Frequent FAFSA Errors
*Social Security Numbers are not correct
*Divorced/remarried parental information
*Income earned by parents/stepparents is inaccurate
*Untaxed income
*U.S. income taxes paid
*Household size
*Number of household members in college
*Real estate and investment net worth
Tips for the FAFSA
 Apply EARLY in the Spring, around 1st of February of
each year, if possible
 Know your school’s priority deadline date; MSU =
March 1st for Fall/Spring
 File Tax returns early – remember, we encourage
you to use the IRS Data Retrieval Tool to download
your tax information onto the FAFSA; otherwise,
you may be selected for ‘verification’.
Professional Judgment
Varies from college to college
Documentation
By authority of the financial aid
administrator
FAFSA Processing Results
Central Processing System (CPS) notifies student of FAFSA
processing results, such as summarized FAFSA information and
student’s EFC, via a Student Aid Report (SAR):
• E-mail notification containing a direct link to student’s on-line
SAR if student’s e-mail was provided on paper or electronic
FAFSA
• SAR Acknowledgment if filed FAFSA on the Web and student’s
e-mail address was not provided
• Paper SAR if paper FAFSA was filed and student’s e-mail
address was not provided
Student with PIN may view SAR on-line at www.fafsa.gov
What is the Expected Family
Contribution (EFC)?
*The amount of money a student and his/her
family may reasonably be expected to
contribute toward the cost of education for
an academic year
*Stays the same regardless of college you
choose, but is calculated with new
information each new year you file the FAFSA
*Calculated using data from the FAFSA and a
pre-set federal formula
What is Cost Of Attendance (COA)?
Direct costs – tuition, fees, books, room & board
Indirect costs – transportation, personal care, child
care, loan fees
Direct and indirect costs combine into cost of
attendance, or “budget”
Varies widely from college to college
MSU’s Cost of Attendance
Annual Estimate 2012-2013
Off Campus / In Dorm:
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Tuition and Fees
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Books and Supplies
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Room & Board
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Transportation
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Personal/Miscellaneous
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TOTAL
With Parent:
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Tuition and Fees
•
Books and Supplies
•
Room & Board
•
Transportation
•
Personal/Miscellaneous
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TOTAL
$7,632
1,200
7,088
1,872
1,598
$19,390
$7,632
1,200
3,157
1,872
919
$14,780
Cost of Attendance
Estimates
Two-Year College
$13,294
Private University
$51,610
Definition of Need
Cost of Attendance (COA)
- Expected Family Contribution (EFC)
________________________________
= Financial Need
General Eligibility Requirements
*Be enrolled as a regular student in a degree or
certificate program
*Not be simultaneously enrolled in an elementary
or secondary school while enrolled in
postsecondary school
*Provide a valid social security number
*Be registered with Selective Service
*Maintain satisfactory academic progress
*US citizen, national, permanent resident or
eligible non-citizen
*Have a high school diploma or its equivalent
(CONT’D)
General Eligibility Requirements
(continued)
Have a high school diploma or its “equivalent”, or home
school credential
* Recognized “equivalent” includes:
- GED certificate
- Certificate recognized by the state as an
equivalent to a diploma
- Academic transcript showing successful
completion of at least a 2-year program fully
acceptable toward a bachelor’s degree
- Documentation that the student excelled in high
school (ie; ‘Doogie Howser syndrome’)
Undocumented Students
HB 1403 (SB 1528)
This law permits some non-citizens to be classified
as Texas residents for financial aid and
admission purposes. May receive
• In-state tuition
• Texas Financial Aid (some programs)
Undocumented Students
HB 1403/SB 1528
Eligibility Criteria
• Live in Texas the 36 months leading up to high school graduation or
the completion of a GED; and
• Lived in Texas the 12 months prior to enrollment; and
• If they are not currently US citizens or Permanent Residents,
completed an affidavit indicating their intent to apply for Permanent
Resident status as soon as they are eligible to do so.
• Must register with selective service (males only)
Application
• Submit a Texas Application for State Financial Aid (TASFA) and submit
to the financial aid office at the institution for processing
• www.collegefortexans.com
Scholarships
Free Money!!!! Does not have to be repaid
Academic
Talent
Athletic
Community Groups
Scholarship Search Engines
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Always use free searches such as:
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www.finaid.org
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www.collegeboard.com
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www.fastweb.com
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www.gocollege.com
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www.FederalStudentAid.ed.gov
Notify the Financial Aid Office of
Scholarships Received
You must advise the Financial Aid Office of any
scholarships/benefits you may receive in 2013-14;
otherwise, adjustments may be necessary to your
award(s) if the Financial Aid Office is made aware of
any scholarship(s) or additional benefits you will receive
AFTER your award(s) are determined.
MSU’s ‘Additional Benefits/Expenses’ form must be
completed and returned to the MSU Financial Aid Office
(available at http://finaid.mwsu.edu/financial-aid-forms.asp)
Grants and Workstudy
Free Money!!!! Does not have to be repaid
Federal Grants
Workstudy
State Grants
Institutional Grants
Federal Grants
(Based on Expected Family Contribution(EFC))
 Pell Grant = 2012-13 ranges from $602 - $5550 per
year for a full-time student.
 2013-14 Pell ranges are not known yet.
 Pell amounts will be reduced for less-than-full-time students.
 SEOG = Schools receive limited amount of money;
funds exhausted early. Must be Pell-eligible to receive
SEOG funds.
Federal/State Workstudy
 Need based work program
 Typically pays minimum wage, but wage varies at
college/university
 Student allowed to work up to 20hrs/week
 Typically on-campus jobs
 Can exclude this income on following year’s
financial aid application
 Apply early!! Jobs go fast!
State Grants
TEXAS Grant (Toward Excellence, Access & Success)
Need-Based Award
Texas Resident
Completed the Recommended or Distinguished
Achievement Program in high school
Have an EFC of 4000 or less
Enroll at least three-quarter-time in an
undergraduate or certificate program within 16
months of HS graduation
Not been convicted of a felony or crime involving a
controlled substance
Availability of Funds
TEXAS Grant (continued)
In addition to the basic eligibility requirements, students must
meet requirements in at least 2 of the following 4 areas for
priority consideration:
* Advanced Academic Program – 12 hours of college credit
(dual credit or AP credit), complete the Distinguished
Achievement Program (DAP), or complete the International
Baccalaureate Program (IB).
* TSI Readiness – Meet the TEXAS Success Initiatives (TSI)
assessment thresholds or qualify for an exemption.
* Class Standing – Graduate in the top 1/3 of the HS graduating
class or have a B average.
* Advanced Math – Complete at least one math course beyond
Algebra II.
Top 10% Scholarship
(sponsored by Coordinating Board)
Encourages students who graduate in the top 10%
of high school class to attend Texas public
universities
Texas Resident
Must enroll full-time
Complete Recommended or Distinguished
Achievement Program in high school
Award is $2000 per year (Fall award ONLY)
Must submit FAFSA or TASFA and have a valid
SAR on file at the university by March 15, 2013
(FAFSA or TASFA submitted after March 15 will be awarded on a
first-come, first-served basis until available funds have been spent)
MSU’s Mustangs Guarantee Program
 Beginning freshman student OR new Transfer student
 Pell Grant eligible student who is a Texas Resident
 Must submit FAFSA and have a completed financial aid file
(including all verification documents) on/before May 31 (for
Fall semester) or December 15 (for Spring semester)
 Family’s combined AGI is $50,000 or less
 Covers remaining balance of tuition & mandatory fees (for 15
credit hours or more) that are not paid by other grants,
scholarships, exemptions, benefits or waivers
 Maintain a minimum of 15 credit hours through 12th class day
for each Fall and Spring semester
 Complete at least 12 hours AND maintain a cumulative grade
point average of 2.5 at end of EACH fall and spring semester.
 Available up to 4 academic years (excluding summer terms)
Student Loans
Must Be Repaid!!!!
Federal Loans
State Loans
Alternative/Private
Loans
What is a Student Loan?
Money students and/or parents borrow to help pay
educational expenses
Repayment usually begins after education is finished
Look at loans as an investment in the future. Research
shows that obtaining a higher education can increase
what an individual earns over a lifetime.
Student loans are the top source of financial aid
Federal Direct Loans
Subsidized
Need-based
Interest:
Fixed – 3.4% for loans
disbursed after July 1, 2012
Government pays while
enrolled at least half time
(subject to change on July 1, 2013)
Unsubsidized
Not need-based
Interest:
Fixed – 6.8%
Student responsible for all
interest that accrues
(subject to change on July 1, 2013)
Repayment begins 6 months after graduation or dropping below
half-time enrollment
For Direct loans, the “lender” is the Department of Education
Annual Loan Limits
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$3,500 Freshman
$4,500 Sophomore
$5,500 Junior and Senior
All students can request an additional
$2000 Unsubsidized Stafford loan
annually
Federal Direct
Parent (PLUS) Loans
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Loan in Parent’s Name/SSN
Based on parent’s credit-worthiness
Current Fixed Interest Rate = 7.9%
Payments begin 60 days after 2nd
disbursement
The parent, upon his or her request, can defer
payments on a PLUS loan if the student is enrolled at
least half time.
STATE & ALTERNATIVE/PRIVATE
Student Loans
STATE
Texas B-On-Time Loan
College Access Loan
ALTERNATIVE/PRIVATE
Texas B-On-Time (BOT) Loan
A STATE loan which provides eligible Texas students with
no-interest loans:
• Need established by filing FAFSA
• Texas Resident
• Completed the Recommended or Distinguished
Achievement Program in high school
• Enroll full-time
• Availability of funds is determined by the Texas
Higher Education Coordinating Board
• Eligible for annual renewal, pending availability of
funds
• Loan forgiveness provisions are available
(CONT’D)
BOT Loan Forgiveness Requirements:
If student graduates “on time” with a 3.0 GPA or higher,
the B-On-Time loan will be forgiven
The BOT loan has a 15-year repayment period or a minimum
monthly payment of $75.00 and a 0% interest rate.
To Graduate “on-time” a student must
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Finish a 4 year degree in 4 years
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Finish a 5 year degree in 5 years
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Finish a 2 year degree in 2 years, OR
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Finish a degree with no more than 6 semester hours
beyond what is required for his/her major
College Access Loan (CAL)
A STATE loan available to Texas students
• NOT Need-Based Loan but FAFSA must be filed
• Texas Resident
• Enroll at least half-time
• Student must have a credit-worthy co-signor
• Fixed interest rate is determined by the Texas
Higher Education Coordinating Board; currently,
5.25%
• Availability of funds is determined by the Texas
Higher Education Coordinating Board
Alternative/ Private Loan
• Private consumer loans
• Provided without consideration of financial
need
• Usually a last option after other more
economical sources are exhausted
• Credit checks are required
• Variable interest rate – usually VERY HIGH!
Tuition Exemptions/Waivers
* An exemption allows an individual to enroll in a
Texas public institution while paying a reduced
amount of tuition and fees – example Valedictorian
tuition exemption, Foster Care exemption, etc.
* The State of Texas has authorized more than 30
exemption programs
* Exemptions have different eligibility requirements
* For a complete listing and eligibility requirements,
see www.collegefortexans.com
Award Notification Process
Award notifications usually contain
• Types and amounts of aid offered
• How and when aid will be disbursed
• Terms and conditions of offer
Students should
• Accept or decline (if required)
• Sign and return (if required)
• Complete student loan process (if necessary)
Evaluating Aid Packages
*Biggest is not always best –compare to
cost of attendance for each school
*Renewable vs non-renewable scholarships
*Terms and conditions of offered loan(s)
*Balance work with academic responsibilities
*Types of aid offered
• Grants
• Loans
• Work-Study
“SHOPPING SHEET”
Designed to help standardize the way students costs
and types of aid are communicated to students
And provides students/parents with information
regarding graduation rates, default rates and
median borrowing rates at the college/university.
MSU will provide the Shopping Sheet to students
beginning in the 2013-14 award year.
Family Educational Rights and
Privacy Act (FERPA)
The student’s rights under FERPA transfer from the
student’s parents to the student when the student
attends a postsecondary institution. A student must
provide written consent before an education agency
or school may disclose personally identifiable
information from the student’s education records.
MSU’s “Release of Information” form:
• http://finaid.mwsu.edu/pdf/fao_55.pdf
MSU’s Short-Term Payment Plans
Installment Contract
Emergency Tuition/Fee Loan
Administered by the MSU Business Office
(visit www.mwsu.edu/busoffice/)
MSU’s Book Loan
Available to students whose financial aid refund
check is less than $600 - OR - the student is not
receiving financial aid but needs additional
assistance with purchasing books.
Administered by the MSU Bookstore and is
available at
http://finaid.mwsu.edu/bookvoucher.asp
Add/Drop Classes
Prior to Official Enrollment date (12th class day) =
adjustment may be made to financial aid awards
After Official Enrollment date = no adjustment
made to financial aid awards but affects
Satisfactory Academic Progress (SAP)
Monitoring Satisfactory Academic
Progress (SAP)
To retain eligibility, financial aid recipients must show academic
progress in your program of study. The following will be
monitored at the end of every semester:
1. Cumulative Grade Point Average (GPA)
2. Maximum Time Frame for Program of Study
3. Successful Credit Hour Completion Rate
MSU’s current SAP rules are available at http://finaid.mwsu.edu/sap.asp
NOTE: At MSU, Financial Aid Warning/Suspension differs from Academic
Probation/Warning/Suspension
Monitoring Satisfactory Academic
Progress (SAP)
In addition to maintaining SAP standards, students who receive certain
grants/scholarships may be required to maintain standards specific
to those grants/scholarships. For example:
TPEG Grant and GOLD Scholarships:
- requires 69% completion rate
- 2.00 semester grade point average, if undergraduate
- 3.00 semester grade point average, if graduate
Academic Scholarship requirements vary by program; be sure you are
aware of the requirements required to keep your scholarship.
Helpful Web sites
www.mwsu.edu – Midwestern State University
http://finaid.mwsu.edu – MSU Financial Aid Office
www.college.gov - US Department of Education website to
assist students with plans to attend college
www.CollegeForTexans.com – state-specific information
about higher education, financial aid
www.studentaid.ed.gov - federal site regarding student
financial aid
Page 1 contains
important
instructions. Please
read carefully.
Section 1
General student information:
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Name
Social Security Number
Citizenship
Marital status
Selective Service
registration status
• Drug conviction status
• Parents’ educational
background
Section 2
Student’s dependency status:
If all “No” responses,
student is dependent
If “Yes” to any question,
student is independent
Section 3
Data for PARENTS of dependent
students:
• Dislocated worker status
Financial data for parents of
dependent students:
• Tax filing status
• Adjusted Gross Income
(AGI) for 2012
• Income earned from
work
• Receipt of benefits from
certain federal meanstested programs
• Additional financial
information
• Untaxed income
Section 4
Financial data for STUDENT (and
spouse)
• Tax filing status
• Adjusted Gross Income
(AGI) for 2012
• Income earned from
work
• Dislocated worker status
• Receipt of benefits from
certain federal meanstested programs
• Additional financial
information
• Untaxed income
Evaluations
• Please take time to complete an evaluation
• We will use your comments and suggestions
to improve future training and our outreach
efforts
THANK YOU!
Contact Information:
Midwestern State University
Financial Aid Office
3410 Taft Blvd.
Wichita Falls, TX 76308
(940) 397-4214 (office)
(940) 397-4852 (fax)
http://finaid.mwsu.edu/
Email: financial-aid@mwsu.edu