National Association of Student
Financial Aid Administrators Presents …
What You
Need to Know
About Financial Aid
© 2014 NASFAA
Topics We Will Discuss Tonight
• The Financial Aid Process
• Categories, types, and sources of financial aid
• Free Application for Federal Student Aid (FAFSA)
• Special Circumstances
© 2014 NASFAA Slide 2
What is Financial Aid?
Financial aid consists of funds
provided to students and
families to help pay for
postsecondary educational
expenses. Most financial aid is
awarded to help a student and
family meet their financial
need.
© 2014 NASFAA Slide 3
Financial Need
Cost of Attendance
–
Expected Family Contribution
=
Financial Need
© 2014 NASFAA Slide 4
Cost of Attendance
• Direct costs (tuition, room, board, fees)
• Indirect costs (books, supplies, transportation,
miscellaneous)
• Varies widely from college to college
© 2014 NASFAA Slide 5
Expected Family Contribution (EFC)
• Amount family can reasonably be expected to
contribute toward the student’s education for that
year.
• Remains constant regardless of college
• Calculated using data from a federal application form
(FAFSA) and a federal formula
© 2014 NASFAA Slide 6
Categories of Financial Aid
• Need-based aid
• Non-need-based aid
© 2014 NASFAA Slide 7
Gift Aid
• Money that does not have to be paid back
• Scholarships: Generally awarded on the basis of
merit, skill, or unique characteristic
• Grants: Generally awarded based on
financial need
© 2014 NASFAA Slide 8
Primary Sources of Gift Aid
• Federal government
• States
• Colleges and universities
• Private sources
• Civic organizations and churches
• Employers
© 2014 NASFAA Slide 9
Federal Student Aid Programs
• Federal Pell Grant
• Federal Supplemental
Educational Opportunity
Grant (FSEOG)
• Federal Work-Study
(FWS)
• Subsidized and
Unsubsidized Federal
Direct Student Loans
(Direct Loans)
• Parent (PLUS) Loans
© 2014 NASFAA Slide 10
State of Kansas Programs
1.
2.
3.
4.
5.
6.
7.
8.
Kansas Comprehensive Grant (available only at 4-year schools)
Kansas State Scholarship (top 20-40% of designated state scholar
graduates who complete Kansas Scholars Curriculum)
Kansas Ethnic Minority Scholarship
Kansas Teacher Service Scholarship
Kansas Nursing Scholarship
Vocational Educational Scholarship (CC’s or Tech Colleges)
Kansas National Guard Educational Assistance
Kansas Military Service Scholarship (public institutions only)
© 2014 NASFAA Slide 11
States
• You can apply for State of Kansas Student Aid 1 of 2 ways:
1. Complete the online form at sfa.kansasregents.org
OR
2. Print, complete and mail the State of Kansas Student
Aid Application.
• There is a $12 processing fee for state scholarships.
• Kansas Comprehensive Grant application is the FAFSA
© 2014 NASFAA Slide 12
© 2014 NASFAA Slide 13
Federal Student Aid (FSA) ID
The FSA ID (username and
password) replaces the PIN for
students, parents and borrowers
accessing Federal Student Aid
systems.
studentaid.ed.gov/fsaid
• Provides more secure access
to user information
• Links to PIN information
during registration
• Offers self–service capability
(name change)
© 2014 NASFAA Slide 14
Federal Student Aid (FSA) ID
• Linked to an e-mail address. Use an e-mail
that is easily accessible during setup.
• If user currently has a PIN, FSA ID can link PIN
information to FSA ID.
• Requires five challenge questions (for added
security).
• FSA ID may be established prior to completing
FAFSA or is available for creation from FAFSA
site.
© 2014 NASFAA Slide 15
FSA ID Tips
• Access your e-mail account before starting to create
an FSA ID.
• Create the FSA ID before starting a FAFSA.
• Have list of common (challenge) questions available.
• Have list of suggestions for “additions” to usernames
Middle Initial or Name
Graduation year
Last four digits of phone number
House number
© 2014 NASFAA Slide 16
FAFSA on the Web (FOTW)
• Website: www.fafsa.gov
• 2016–17 FAFSA on the Web available January 1, 2016
• Most colleges set FAFSA filing deadlines
© 2014 NASFAA Slide 17
FAFSA on the Web
Good reasons to file electronically:
• Online help available
• Built-in edits to prevent errors
• Skip-logic allows student and/or parent to skip
unnecessary questions
• Option to use Internal Revenue Service (IRS)
Data Retrieval Tool to import tax data
© 2014 NASFAA Slide 18
General Student Information
• Gender/Selective Service registration
• Citizenship status
• Marital status
• High school completion/degree sought
• Drug convictions
• Level of parents’ school completion
© 2014 NASFAA Slide 19
Student Eligibility
© 2014 NASFAA Slide 20
© 2014 NASFAA Slide 21
Parent Demographics
•
•
•
•
Marital Status
Name/SSN/DOB
Household Size
Number in College
© 2014 NASFAA Slide 22
IRS Data Retrieval Tool
• While completing FOTW, 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 browser window
• Applicant chooses whether or not to transfer
data to FOTW
© 2014 NASFAA Slide 23
IRS Data Retrieval Tool
• Available early February 2016 for 2016–17
processing cycle
• May be used after taxes completed if using
estimated tax information for FAFSA
• Participation is voluntary
• May reduce documents needed by financial aid
office
© 2014 NASFAA Slide 24
IRS Data Retrieval Tool
• Some will be unable to use IRS DRT
• Examples include:
– Filed an amended tax return
– No Social Security Number (SSN) was entered
– Student or parent married but filed separately
© 2014 NASFAA Slide 25
IRS Data Retrieval Tool
These
fields are
pre-filled
based on
FAFSA
responses
© 2014 NASFAA Slide 26
IRS Data Retrieval Tool
© 2014 NASFAA Slide 27
Additional Financial Information
•
•
•
•
•
•
Reporting Income Earned from Work
Federal Benefit Programs
Assets
Child Support Received/Paid
Contributions to Tax-Deferred Savings Plans
Retirement/Pension Distributions
© 2014 NASFAA Slide 28
Signatures
• Required
– Student
– One parent (dependent students)
• Format for submitting signatures
– Electronic using FSA ID
– Signature page
© 2014 NASFAA Slide 29
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
Signatures
© 2014 NASFAA Slide 30
FAFSA on the Web Assistance
• Online help at fafsa.gov (includes online chat with FAFSA
experts)
• Federal Student Aid Hotline (1-800-433-3243)
Peak Season Hours: Monday-Friday 7 am till 11 pm
Saturday
8 am till 7 pm
Sunday
12 pm till 6 pm
• Your college’s Financial Aid Office
• KASFAA’s FAFSA Completion Website (www.ksfafsa.org)
available in January.
© 2014 NASFAA Slide 31
Prior-Prior Year for 2017-18
2016-2017 FAFSA – Available January 1, 2016
Use 2015 taxes
2017-2018 FAFSA – Available October 2016
Use 2015 taxes AGAIN
• Possibly know complete aid package prior to January 1st.
• More time to make college decisions.
• Prior-prior year data helps avoid costly delays and errors
especially when using the IRS Data Retrieval Tool (DRT).
© 2014 NASFAA Slide 32
Special Circumstances
• Cannot be documented using FAFSA
• Send written explanation and documentation
to financial aid office at each college
• College will review and request additional
information if necessary
• Decisions are final and cannot be appealed to
U.S. Department of Education
© 2014 NASFAA Slide 33
Special Circumstances
• Change in employment status
• Unusual medical expenses not covered by
insurance
• Change in parent marital status
• Unusual dependent care expenses
• Student cannot obtain parental information
• Parent(s) attending college
© 2014 NASFAA Slide 34