2014-2015 Financial
Assistance Information
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http://www.studentaid.gov
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Prepare for College
Types of Aid
Who Gets Aid
FAFSA: Apply for Aid
Loan Information
Quick Links & Checklists
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FAFSA: Apply for Aid
• Quick Links:
– How Aid is Calculated
– The PIN
– Filling Out the FAFSA
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www.pin.ed.gov
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PIN for student and parent
Sign your FAFSA electronically
Check status
Review and correct answers
Sign promissory notes electronically
View info about federal loans & grants
Reapply for financial aid in the future
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How to Apply
• Submit the Free Application for Federal
Student Aid (FAFSA) beginning January
1st prior to every academic year
• File on-line www.fafsa.gov
– Use FAFSA On the Web Worksheet
• .PDF FAFSA, print and mail
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Web Advantage
• Built-in edits to help prevent costly errors
• Skip-logic allows student and/or parent to skip
unnecessary questions
• 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 renewal application process
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Organize Your Documents
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Social Security Numbers
Driver’s License
2013 Income Tax Return (Estimate OK)
2013 W-2 Statements
Asset information
Investment records
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IRS Data Sharing
• IRS Data Retrieval Tool if taxes completed
• Participation is voluntary
• Use FAFSA on the Web to electronically
view tax information
• Tax information can also be securely
transferred into the FAFSA
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Meet Filing Deadlines
• Meet FAFSA and priority dates / deadlines
• College/University deadlines vary
• You can use estimated information in
order to meet financial aid application
deadlines
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Verification
• The process of proving the accuracy of
FAFSA information
• About a third of all applications selected
– Random selection,
– Do not meet federal edits or
– Chosen by the college/university
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IRS Tax Transcript
• If you do not use the IRS Data Retrieval
Tool to provide tax information and your
college requests a copy of your tax return
or your parents’ tax return, you may be
required to obtain an official tax transcript
from the IRS.
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General Eligibility Requirements
• Must be enrolled or accepted for enrollment in
an eligible program of study
• Must be pursuing a degree, certificate, or other
recognized credential
• Must be a U.S. citizen or eligible non-citizen
• Must be registered with Selective Service
(if male and required to be)
• May not have eligibility suspended or terminated
due to a drug-related conviction while enrolled
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Principles of Need Analysis
• To the extent they are able, parents have primary
responsibility to pay for their dependent children’s
education
• Students also have a responsibility to contribute to
their educational costs
• Families should be evaluated in their present financial
condition
• A family’s ability to pay for educational costs must be
evaluated in an equitable and consistent manner,
recognizing that special circumstances can and do
affect its ability to pay
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Unusual Circumstances
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Loss of employment
Loss of benefits
Death or divorce
Other changes to family income, assets or
student status
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Who Completes the FAFSA?
• Dependent student (for financial aid purposes)
• Parents provide information
• If parents are divorced or separated,
– Parent with whom the student has lived the most in the last
twelve months
– If equal, parent who has provided the most financial support
• If remarried, parent & stepparent information is used
• Grandparent or guardian information is not used
– This student may need to speak with the Financial Aid office to
determine if they are Independent.
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Evaluating Eligibility
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Parent’s Income
Family Assets (Savings, Investments, etc.)
Student’s Income and Assets
Family Size
Number in College
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Investments: Current value minus Debt
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Real Estate (Not your Home)
Trust Funds
Money Market Funds
Mutual Funds
Certificates of Deposit
Stocks & Stock Options
Bonds & Other Securities
Coverdell Savings Accounts
College Savings Plans
Installment & Land Sale Contracts
UGMA and UTMA accounts
Etc.
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Investments Do Not Include
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The home in which you live
The value of life insurance
Retirement plans
UGMA and UTMA accounts for which you
are the custodian but not the owner
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Independent Student Definition
(partial)
• At least 24 years old by December 31st of the
award year covered by the FAFSA;
• Graduate or professional student;
• Married;
• Has legal dependents other than a spouse;
• Orphan or ward of the court;
• Veteran of the U.S. Armed Forces; or
• Determined to be independent by the financial
aid administrator
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EFC Used for
Need (Theoretical)
Total Cost of Attendance
minus EFC
Federal Need
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Need Varies Based on Cost
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Cost of
Attendance
(Variable)
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EFC
EFC
Expected Family
Contribution
Need
(Variable)
(Constant)
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Costs of Attendance
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Billed Costs
Tuition
Fees
Room
Meals
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Indirect Costs
Books
Supplies
Transportation
Personal Expenses
Child Care
Ongoing Medical
Needs
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Bottom Line
Estimated Billed Cost of Education…
Tuition, Room & Board
minus
- Financial Aid (Grants & Loans)
Billed Cost of Education
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Types & Sources of Financial
Aid
• Gift Aid
• Self-Help
– Grants
– Scholarships
– Loans
– Work
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Federal
State
Institutional
Private / Other
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Alternative Sources
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Institutional Payment Plans
Institutional Loans
Employer Assistance
Labor Unions
Cooperative Education Programs
Community/Service Organizations
H.S. Guidance Office
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Tax Benefits for Higher
Education
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Hope Scholarship Tax Credit
Lifetime Learning Tax Credit
Education IRAs
Student Loan Interest Deduction
Qualified State-Sponsored Tuition Plans
(QSTP)
• Employee Tuition Assistance
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Resources
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fafsa.gov
finaid.org
nasfaa.org
oasfaa.org
act.org
collegeboard.com
aie.org
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NASFAA.org Cash for College
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Paying for college
Expected Family Contribution
Comparing aid packages
Where can I get more info?
Financial aid checklist
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FAFSA Help
Ohio College Goal Sunday
February 9, 2014
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Questions?
Otterbein University
Financial Aid Office
614-823-1502
financialaid@otterbein.edu
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Who is considered
a Parent when completing the
FAFSA?
Changes for 2014-2015
Beginning with the 2014-2015 FAFSA, a
dependent student will be required to
include income and other information
about both of the student’s legal parents
(biological or adoptive) if the parents are
living together, regardless of the parents’
marital status or gender.
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Changes for 2014-2015
Because unmarried parents may be of
the opposite sex or of the same sex,
when the response to the parents’ marital
status question is “Unmarried and both
parents living together,” follow-up
questions will refer to the parents as
“Parent 1 (father/mother)” and “Parent 2
(father/mother)” or simply “parents.”
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Who is a Parent?
• Biological parents
• Adoptive parents
• Stepparents, if they are married to
the student’s biological or adoptive
parent and the student is included
in their household size
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Who is NOT a Parent?
• Foster parents
• Legal guardians who have not adopted the
student
• Relatives who have not adopted the
student
• Stepparents who have not adopted the
student and who would be the ONLY
person providing parental information
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Comparison FY14 and FY15
Dependent Student’s Parents’
Household Comprised Of:
Data from 1 or 2
Parents Collected?
Data from 1 or 2
Parents Collected?
2013-2014 and Prior
2014-2015 and
Forward
1 Parent
Single legal parent
1 Parent
Two legal parents who are husband and
wife
Legal parent and stepparent
Two legal parents who are unmarried and
living together (regardless of gender), or
who are of the same sex and are married,
as recognized by a State or foreign country
2 Parents
2 Parents
2 Parents
1 Parent
2 Parents
2 Parents
Note: Only the opposite sex spouse of a legal parent is considered a stepparent
for FAFSA purposes. However, if a same sex partner has become a legal
parent by adopting the dependent student, information from each legal parent
would be collected.
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