Today’s Agenda
Application Process
How Financial Aid
is Determined
Types of Aid
Questions
How Do I Apply for Financial Aid?
Complete the Free Application
for Federal Student Aid
(FAFSA)
Complete school’s Financial
Aid Application (if applicable)
Meet Priority Deadline
Apply for Scholarships
Contact school directly if you
have Special Circumstances
Free Application for Federal Student Aid
(FAFSA)
Collects Family’s Personal and Financial Information
used to Calculate EFC
Federal Central Processor Computes all Data
Apply Every Year
Takes 1-3 Weeks to Process—Apply Early
Generates Student Aid Report (SAR)
2011-12: 18 million FAFSAs filed; 5% increase over 2010-11
College Scholarship Service: CSS Profile
File in Fall of Senior year; not free*
Carleton, St. Olaf, Macalester, Gustavus
PIN Registration
www.pin.ed.gov
Electronic
Signature
Student and Parent
Must Have One
Parent Can Use
Same PIN for
Multiple Children
Access to Loan Info
(National Student
Loan Database
System)
Where to Start…
FAFSA—Free
Application for
Federal Student Aid
www.fafsa.gov
Be Prepared:
Adjusted Gross Income
Wages
Federal Taxes paid
Tax Deferred income
Investment info
Savings/Checking balances
You CAN estimate your
income!!
FAFSA – Student Information
Social security
number
Date of birth
The name entered
for the student
MUST match the
name on their
social security
card.
Selective Service
(male students
only)
FAFSA – Student Information
Students must
file a renewal
FAFSA every
year in order to
continue
financial aid
Make sure you
complete the
correct aid
year’s
FAFSA: 20142015
FAFSA – School Information
Enter the college
school codes
You can either
enter the number
provided by the
school or use the
“search” function
Housing choice
requested for
each college
FAFSA – Student Information
Several questions
determine student
dependency
information for
FAFSA purposes.
In general,
students under the
age of 24 are
considered to be
dependent for
FAFSA purposes.
FAFSA – Student Information
Students will be
prompted to answer
the same tax and asset
information as
parents.
Students who filed
taxes can also use IRSData Retrieval (DRT)
Income Estimator
FAFSA – Parent Information
Dependent
students must
provide parent
information on the
FAFSA
If parent
information is not
available, student
should contact the
college to proceed.
FAFSA – Parent Information
If student’s biological parents are divorced, only list
household tax information for custodial parent. If joint
custody, include information where student lives more
than 50% of the time.
New 2014-15—Unmarried parents who live together
need to report both their incomes to FAFSA; includes
same sex couples who are legally married and/or who
has adopted the student
If custodial parent is remarried, both parent and stepparent information is required for FAFSA purposes.
If your student has a child of her/his own and
both live with you, you may still be required on the
FAFSA
FAFSA – Parent Information
“Household size”
includes a help
button to
determine who
should count as
household
members
Parents in college
do NOT count as #
in college for the
student’s FAFSA
Data Retrieval Tool (DRT)
Use the IRS Retrieval-available last week in
Feb!
Eligible to be used when taxes
are filed online in advance of
at least 3 weeks; paper could
be 6-10 weeks
Does NOT populate wages, tax
deferred or investment
information
Address on FAFSA must
match address on tax return
You can return to your FAFSA
after you file taxes and use
DRT!
Data Retrieval Tool (DRT)
Are you married, but filed separate taxes from your
spouse?
File a Puerto Rican tax return?
Filed an Amended tax return?
Do not have a valid Social Security Number
Only recently filed (last 3-4 weeks) online, (8 – 10 weeks)
for paper filings
Do not owe money back to the IRS
If you say no to any of these, you should use
DRT!
Data Retrieval Tool (DRT)
FAFSA – Parent Information
Income tax:
1040, line 55
1040A, line 35
1040EZ, line 10
Exemptions are found
on 1040 or 1040A, line
6d
Untaxed Income:
Payments to taxdeferred savings found
on W-2, boxes 12a-d,
codes D-H & S
FAFSA – Parent Information
Asset FAFSA information requested:
Amount in cash, checking and savings
Net value of investments (value minus debt):
DO NOT INCLUDE: Value of family home, a farm the
family lives on, family-owned business with fewer
than 100 employees, value of retirement/pension
plans in a qualified retirement account
INCLUDE: Net value of rental properties, net value
of investment farms, investments, college savings
plans (529 in parent or student’s name), etc…
There is an automatic asset protection built into the federal formula—
the average amount calculated from parents’ assets is 6%.
FAFSA – Parent Information
Add’l Financial Information and Untaxed Income that must be
reported:
Education Credits
Total child support paid in that calendar year
Taxable combat pay or special combat pay (would be
included in your AGI if taxable)
Parents’ own student grants and scholarship if reported
as part of the parents’ AGI
Child support received that calendar year for all in the
household
Other untaxed income (first time homebuyers tax
credit)
FAFSA – Signature Page
FAFSA must be
signed by both
student and a parent
Any FAFSA changes
must be signed by
both student and a
parent
FAFSA may be signed
with pin or signature
page – pin leads to
significantly faster
processing
Success!
Verification
Roughly 1 out of 4 FAFSAs will be randomly selected
for “verification”
Student and Parent must provide official tax transcript
to the school (not copy of tax return) or use DRT (Data
Retrieval Tool)
www.IRS.gov (Get a transcript)
–OR-- call 800-908-9946 (2-4 weeks)
Must also submit the Federal Verification Worksheet
(provided by the school)
If needed for eligible non-citizenship documentation,
student must bring in original for FA office to copy
Expected Family Contribution (EFC)
Parent Income
Student Income
Untaxed Income
Family Assets
Family Size
Number Attending
College
Student and parent contributions are determined by
the federal formula (FAFSA application)
Colleges use your EFC to determine your family’s
aid eligibility at their school
Cost of Attendance
Tuition and Fees
Room and Board
Books and Supplies
Transportation
Miscellaneous Personal Expenses
FAFSA Determines Your
Expected Family Contribution (EFC)
Cost of Attendance (COA)
-- EFC____________________
= Eligibility for need-based
financial aid
The COA is different at each
school, but a student’s EFC stays
the same. A student’s need will be
different from school to school.
Cost of Attendance vs. Direct Costs
Cost of Attendance (COA):
Tuition @ fulltime (16cr)
+ Fees
+ Room
+ Board
+ Transportation*
+ Books & Supplies*
+ Misc. Expenses*
= Cost of Attendance
*Estimated; you may not
actually pay this amount
Direct Costs (DC):
Tuition @ fulltime (16cr)
+ Fees
+ Room
+ Board
= Direct Costs
These are costs that are set and
standard that students will be
charged
Net Price Calculators: All colleges must have one; be
aware of COA vs. DC for actual costs
Need Varies Based on Cost
1
X
2
Y
3
Z
EFC
Cost of
Attendance
Expected Family
Contribution
(Variable)
(Constant)
EFC
Need
(Variable)
Types of Financial Aid
Grants
Scholarships
Loans
Student Employment
Where does it come from?
Federal and State Government, Schools,
Employers, and Other Public and Private
Sources like Clubs and Organizations
Federal Grants
Federal Pell Grant: given to students with exceptional
financial need; annual awards range from $4,574-anticipated
maximum $5,645; maximum lifetime limit of 12 semesters of
enrollment (based on 13-14)
Federal SEOG Grant: limited funding; priority given to
students with exceptional need; each school can determine
how much they will award
The Teacher Education Assistance for College and Higher
Education Grant (TEACH): must meet certain pre-requisite
academic requirements; must declare Education as a major;
must work as a fulltime teacher in a designated area after
graduation. See Financial Aid Counselor for details.
State & Institutional Grant Programs
Minnesota State Grant: Must be a MN resident attending
eligible MN school; award to students from low to moderate
income families; annual awards up to $10,450 (13-174);
maximum lifetime limit equal to 4 years of enrollment
FAFSA will have a MN State Grant Questionnaire link if you
indicated your legal state of residency is MN
Minnesota GI Bill: Eligible MN veterans who served on or
after Sept. 11, 2001; full-time undergraduates may be eligible to
receive up to $1,000/semester or term and part-time students
may be eligible for $500/semester
Institutional Grant: College or university funds award to
students with financial need
Search for Scholarships
Typically awarded based on
merit, not need
Where to look:
On the web
Your college(s) of choice
HS counselor; Guidance Office
or Career Center
In the community: church,
civic, and business
organizations
Parent employer
Loans
Federal Perkins Loan: 5% fixed interest; no fees; interest and
repayment begin after school
Federal Stafford/Direct Loan: Loans awarded after July 1,
2013 will have an interest rate of 3.86%; 1.072% fee; repayment of
principle begins 6 months after school ends/student withdraws
Subsidized: no interest charged while in school; interest will begin to
accrue from the last date of attendance
Unsubsidized: interest accrues while in school
Federal Parent PLUS Loan: Parent borrows loan on behalf of
dependent student; fixed interest rate 6.41%; 4.288% fee;
repayment begins after disbursement (i.e. while student is in
school)
Alternative/Private Student Loans: Variable
interest rates and fees; can require cosigner
Student Employment
Retention
Flexible Hours
Spending Money
On-Campus or Non-Profit Organizations
Federal and State Employment is not used
in Determining Student’s Contribution on
next year’s FAFSA
Financial Aid Award
A “package” is a combination of grants & scholarships, student
employment, and/or low-interest student loans.
Example:
Total COA
$16,000
(includes tuition, fees, room and board
and estimated books, supplies and misc)
Outside Scholarship:
Pell Grant:
MN State Grant:
Federal Work Study:
Federal Perkins Loan:
Federal Stafford Loan:
Total Aid
$1,000
$2,200
$3,612
$2,000
$2,000
$3,500
$14,312
Family Contribution =
$1,688
Where Can I Get More Information?
Federal Student Aid Info
studentaid.gov
FastWeb Scholarship Search:
www.fastweb.com
FinAid - The Financial Aid
Information Page:
www.finaid.org
Minnesota Office of Higher
Education Student Website:
www.getreadyforcollege.org
Financing Your Future
An Investment in You!
Mai Nhia Xiong-Chan
Director of Recruitment
St. Catherine University
mxchan@stkate.edu