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High School Financial Aid Night
Guide to Financial Aid for College
Jennifer Knight
Linfield College
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Slide 2
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We will answer...
• What is financial aid?
• Why should I file a financial aid
application?
• Who can get financial aid?
• How much can I get?
• How do I apply?
• What happens next?
• Where can I get more information?
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Slide 3
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Financial Aid – What is it?
Money from a source other
than the family to assist with
the cost of attending college
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How do I get started?
• Completing the Free Application for
Federal Student Aid (FAFSA®) is the first step
toward getting federal aid for college, career
school, or graduate school
• Federal Student Aid, an Office of the U.S.
Department of Education, provides more than
$150 billion in grants, loans, and work-study
funds each year, but you have to complete the
FAFSA to see if you can get any of that money
• The FAFSA is for everybody regardless of income
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Slide 5
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Why Should I File a FAFSA
My parents say we make too much
money to qualify for financial aid
• Financial aid includes student and parent loans, a
FAFSA is required to receive these loans
• Some scholarship agencies require the FAFSA
• Some colleges use the FAFSA results to determine
non-need based financial aid
• Special circumstances
–
–
–
–
Death
Divorce
High medical/dental expenses
Job loss
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Who gets federal student aid?
• U.S. citizen & eligible non-citizens
• Have a valid Social Security Number
(SSN)
• Selective Service Registration – males
between 18-25
• High school diploma or its equivalent
• More eligibility criteria can be found
at StudentAid.gov/eligibility
– FAFSA determines eligibility
– College determines eligibility
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Slide 7
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FAFSA Overview
Federal Student Aid Video
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StudentAid.ed.gov YouTube video:
https://www.youtube.com/watch?v=kbJ55
UWMEFE
Slide 8
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Free Application for Federal Student
Aid (FAFSA) – www.fafsa.gov
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When Should I File FAFSA?
• Annually
– On or as soon after January 1, 2015 as possible for
2015-2016 your senior year in high school
– And then file a renewal FAFSA on the Web each
year following as soon after January 1, as possible
• Why apply early?
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– First come first served
• State deadlines
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– Oregon Opportunity Grant by February 1st
• College deadlines
– Vary
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What? I have to wait until January 1?!
• That is right, but you can do the FAFSA4Caster
before January 1
• Simulates
FAFSA
experience
• Calculates
the EFC
• You have a
head start
for when
you file
FAFSA
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Slide 11
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Apply for a Personal Identification
Number (PIN) – www.pin.ed.gov
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Slide 12
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FAFSA Help
• Go to www.studentaid.gov/completefafsa
• Call toll free 1-800-433-3243, which is the 1800 4 FED AID line
• TTY users (for the hearing impaired) may call 1800-730-8913
• Live chat feature within FAFSA on the Web
(FOTW)
• Expanded instructions within FOTW
• Contact the college financial aid office for which
you are applying for admission to for answers to
your financial aid questions
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Slide 13
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Get Ready - FAFSA Tips
• Social Security Number (SSN)
– Student must have a valid SSN
– Report name as it appears on SSN card
•
•
•
•
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Date of birth
Address
E-mail address
2014 income; estimates are ok
– 2014 W-2 Statements, or final paystub(s), or use your IRS 2013
results as an estimate
– Go back later and correct your FAFSA after you have filed your
federal tax return
• Use the IRS Data Retrieval Tool (DRT) within FAFSA on the Web
available in mid-February; or if unable to use DRT manually update
FAFSA
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Slide 14
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Frequent FAFSA Errors
• Parent and Student Social Security Numbers
• Divorced/remarried/unmarried but living together
parental information-which belongs on the form
• 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
• Not signing the FAFSA
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NT4CM 2015–16
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Make FAFSA Corrections
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FAFSA PDF
Step One – Student
• Name as it appears on
student’s Social Security
Card
• Mailing address
• Student’s Social Security
Number
• Student’s Date of Birth
• Permanent telephone
number
• Driver’s license number
• Driver’s license state
• Student’s email address
• Student’s citizenship
status
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FAFSA Step One – Student (continued)
• Student’s marital status
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• New federal definition of marriage;“place of
celebration rule”
• Student’s state of legal residence
• Male or Female – Selective Service
registration
• Convicted for possession or sale of illegal
drugs for offense while student was
receiving federal student aid
• Student’s parents highest level of schooling
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FAFSA Step One – Student (continued)
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Student’s high school completion status
Name of student’s high school
State where high school is located
First bachelors degree by 7/1/15
Grade level in college 2015-2016
Degree/certificate program
Interest in work-study
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Slide 19
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FAFSA PDF
Step Two
Student
• Student (and spouse, if
married) federal tax filer
status in 2014
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• Tax completion status
• Type of tax return
• Tax filing status
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• Adjusted Gross Income,
if filer
• Income tax, if filer
• Exemptions, if filer
• Earnings from work in
2014
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FAFSA PDF Step Two - Student (continued)
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“Assets” - “Snap shot on the day FAFSA is filed”
• Current balance total of cash, savings and
checking accounts
• Net worth of investments (don’t include
home you live in)
• Net worth of businesses and/or investment
farms (don’t include a family farm or family
business with 100 or fewer full-time or fulltime equivalent employees)
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Slide 21
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FAFSA PDF
Step Two – Continued
Step Three
Student
• Step Two
• Additional
financial
information
• Untaxed income
• Step Three
• Dependency
questions
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Step Three – FAFSA Questions 46-58
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Determines if parental information is required on FAFSA
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FAFSA: Determining Your Dependency Status - VIDEO
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StudentAid.ed.gov YouTube Video:
https://www.youtube.com/watch?v=dEbxa
RjlLus
Slide 23
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Do I need to provide
my parents’
information on my
FAFSA?
DEPENDENT - yes
- or INDEPENDENT - no
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If you (student) are DEPENDENT, must
list your parents’ information on FAFSA
• Who is considered a parent?
• Legal parent (biological or adoptive)
• Do not list grandparents, foster parents, legal
guardians, aunts, uncles, unless they have legally
adopted you
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Slide 25
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FAFSA PDF
Step Four – Parent
Purple
• What is marital status of
legal parents?
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• In cases of divorce or
separation
• Report parent you
lived with the most in
the previous 12
months, and their
spouse if remarried
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• Report Parent 1 & 2, if
applicable
• SSN
• Name
• DOB
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Who is a parent on the FAFSA, as of
the day you complete the application
• If your legal parents are married, report both
– Same sex couples must report their marital status as married if they
were legally married in a state or other jurisdiction (foreign
country) that permits same-sex marriage, without regard to where
the couple resides; “place of celebration”
• If your legal parent was never married and does not live with your
other legal parent, or if your legal parent is widowed or not remarried,
answer questions about that parent
• If your widowed legal parent is remarried, report both parent and stepparent
• If your legal parents are not married to each other and live together,
provide answers for both regardless of gender
• If your legal parents are divorced but living together, report both
• If your legal parents are separated but living together, report both
• If your legal parents are separated or divorced and not living together
• Report the parent you lived with the most in the previous 12
months, and their spouse if remarried
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FAFSA PDF
Step Four – Parent
Purple
• Parents’ email address
• Parents state of legal
residence
• Number of people in
parents household
• Number of people in
parents’ household in
college
• Federal program benefits in
2013 or 2014
• Federal Taxes
• Tax completion status
• Type of tax return
• Tax filing status
• If 1040, 1040A or EZ eligible
• Parents dislocated worker
status
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FAFSA PDF
Step Four – Continued
Parents
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•
Adjusted Gross Income, if filer
Income tax, if filer
Exemptions, if filer
Earnings from work in 2014
Assets
• Current balance total of
cash, savings and checking
accounts
• Net worth of investments
(don’t include home you live
in)
• Net worth of businesses
and/or investment farms
(don’t include a family farm
or family business with 100
or fewer full-time or full-time
equivalent employees)
• Additional financial information
• Untaxed income
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FAFSA PDF
Step Five, Six & Seven
• Step Five
• Independent
student only
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• Step Six
• List colleges
• Housing plans
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• Step Seven
• Educational
Purpose
Statement
• Date form
completed
• Signatures
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Slide 30
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• Student submits FAFSA
FAFSA
CPS
SAR
– Electronically
– Regular mail
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• The Central Processing System
(CPS) conducts required
database matches and
calculates a student’s Expected
Family Contribution (EFC)
according to the federal need
analysis
• The student receives a Student
Aid Report (SAR) as a result
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How much aid will I receive?
• In general, depends on your
financial need
– The financial aid office at
your college will let you
know the amount of financial
aid you are eligible to receive
– Financial need is determined
by the cost of attendance
(COA) at your college and
your expected family
contribution (EFC) from your
FAFSA results
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• COA is tuition, fees, room &
board, book & supplies,
transportation, etc.
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Slide 33
Types of Financial Aid – Grants
Gift Aid
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Programs
Annual Amount
Federal Pell Grant
Up to $5,730 for 2014-2015
Federal Supplemental Education
Opportunity Grant
$100-$4,000
Teacher Education Assistance for College
and Higher Education Grant
(TEACH Grant)
Up to $4,000
Iraq & Afghanistan Service Grant
Visit StudentAid.gov/Iraq-Afghanistan
Oregon Opportunity Grant
Up to $2,000
Visit www.oregonstudentaid.gov
College/University Grant
Amounts Vary
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Slide 34
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Types of Financial Aid –
Student Employment
Self Help
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• Student can work part time while enrolled
– Campus Employment
– Federal Work Study
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• Need based award
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Slide 35
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Types of Financial Aid – Loans;
money you pay back with interest
Federal Loan
Programs
Borrower
Annual Amount
Loan Fee Interest Rate
William D. Ford
Federal Direct
Stafford Loan
• Subsidized
• Unsubsidized
Student
• Undergraduate
• Graduate –
Unsubsidized
only
Amounts vary
based upon grade
level, dependency
status, and
program; annual
and aggregate
limits apply
Yes
“Variable-Fixed”
Federal Perkins
Loan
Student
Congressional
Action Required
No
Fixed at 5%
William D. Ford
Federal Direct
PLUS Loan
• Parent on
COA – EFA =
behalf of their Amount
Dependent
Undergraduate
• Graduate
student
Yes
“Variable-Fixed”
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Slide 36
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Federal DL Annual Loan Limits for
Undergraduate Students
Grade Level
Base Amount: Supplemental Total
Subsidized/
Unsubsidized Annual
Unsubsidized
Maximum
Additional
Unsubsidized
DEPENDENT
INDEPENDENT
UNDERGRADUATE UNDERGRADUATE
And for dependent
students whose
parents cannot
obtain Direct
Parent PLUS Loan
Total
Annual Maximum
INDEPENDENT
UNDERGRADUATE
And for dependent
students whose
parents cannot
obtain Direct
Parent PLUS Loan
Freshman
Sophomore
$3,500
$4,500
$2,000
$2,000
$5,500
$6,500
$4,000
$4,000
$9,500
$10,500
Junior
$5,500
$2,000
$7,500
$5,000
$12,500
Senior
$5,500
$2,000
$7,500
$5,000
$12,500
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Slide 37
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After the FAFSA
•
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Student Aid Report
Verification
Special Circumstances
College financial aid forms
Award Letter
Loans require additional steps
before the funds can be
disbursed to you:
– Master Promissory Note (MPN)
– Entrance Counseling
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Slide 38
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When will I receive the financial aid?
• Any financial aid you are eligible to
receive will be paid to you through
your college
• Typically, your college will first use the
financial aid to pay tuition, fees and
room and board (if provided by the
college)
• Any remaining balance is paid to you
for your other education expenses
• If you are eligible for a Federal Pell
Grant, you may receive it from only
one college for the same period of
enrollment
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Slide 39
Your Future Awaits!
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Studentaid.gov
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