CHOICES
Applying for Financial Aid
at James Madison
University
April 11& 14, 2014
(This presentation can be downloaded under the Prospective
Students section at www.jmu.edu/finaid)
1
Objectives
To gain a better understanding of the
following:
The financial aid process at JMU
Available sources of financial aid
The scholarship application process at JMU
What happens in subsequent years
2
APPLYING FOR
FINANCIAL AID
3
Financial Aid Process
• Submit FAFSA (preferably before March 1st)
• Receive Student Aid Report
• Receive Preliminary Financial Aid Award Notice
prior to May 1st
• After May 1st receive Verification request and/or
Official Financial Aid Award Notice
– The process of sending Official Financial Aid Award
Notices generally begins the end of June
• Submit required acceptance documents
4
Applying for Financial Aid
The 2014-15 Free Application for Federal
Student Aid (FAFSA) is the only
application students at JMU need to
complete to apply for all of the federal and
state financial aid offered through the
Office of Financial Aid & Scholarships
That’s it! One form!
5
Professional Judgment
• Unexpected issues not reflected on the FAFSA
–
–
–
–
–
–
–
Tuition expenses at an elementary or secondary school
Medical or dental expenses not covered by insurance
Unusually high child care costs
Job loss or unemployment
Parents enrolled at least half-time in a degree or certificate program
Roth IRA rollovers
Dependency overrides
• Contact the financial aid administrator to discuss if these items can
be considered in a Professional Judgment review
• Issues such as credit card expenses, car payments, standard living
expenses, and other “normal” daily items cannot be considered
under Professional Judgment for federal and state aid purposes
6
2014-15 FAFSA
Priority Filing Date
• March 1st, 2014
• This means your FAFSA should have
been logged in at the federal processor by
March 1st to be considered “on-time”
• You can still complete a FAFSA after
March 1st, but the funds available for
awarding at that time could be limited
7
Preliminary Financial Aid
Award Notice
• E-mailed to the same e-mail address
Admissions used to notify the student of his/her
acceptance to JMU
• This is an estimate, as the 2014-15 tuition/fees
and room/board figures were not set at the time
the award was generated
• Students and parents cannot accept aid based
on this notice
• Verification has not been conducted
8
Preliminary Financial Aid
Award Notice
• The notice will contain tentative eligibility
for aid from:
– Federal aid programs
– State aid programs
• JMU scholarship notifications typically
come from individual campus departments
9
After May 1, 2014
• Preliminary financial aid awards will be canceled
• New JMU students will receive:
– Verification request to secure additional information to complete a final
FAFSA review (generally in May), or
– Official Financial Aid Award Notice (generally begins around the end of
June)
• Prior to June 1st Verification requests will be e-mailed to the same email address used for the Preliminary Financial Aid Award Notice
• After June 1st Verification requests and/or Official Financial Aid
Award Notices will be e-mailed to the student’s JMU e-mail address
10
Additional Information
If information is
needed to verify
elements on the
FAFSA, then JMU
will request it
Examples:
• Verification Worksheet
• Federal tax forms
• W-2’s
• Loan Applications
• Master Loan Promissory
Notes
• Other
11
Official Financial Aid Award
Notice
• Beginning the end of June, eligible students will be
awarded and sent an Official Financial Aid Award Notice
– These notices are sent electronically to the student’s JMU e-mail
address (note the change from the Preliminary process)
• Parents will receive a separate notice regarding Parent
PLUS Direct Loan eligibility
– These notices are sent to the parental e-mail address listed on the
FAFSA
• Each notice will contain instructions for how to accept or
decline the offered aid
– Students will do this through MyMadison
– Parents will do this through the www.jmu.edu/finaid web site
12
Types of Financial Aid Available
(FAFSA Related)
•
•
•
•
Federal Grants (Pell & SEOG)
State Grants (VGAP and CA)
University Grants
Federal Loans (Direct Loans, Perkins Loan &
Parent PLUS Direct Loan)
• Federal Work-Study
Note: You will see these on a Financial Aid
Award Notice
13
PACKAGING
101
14
Cost of Attendance
(2013-14 )
COMPONENTS
• Tuition & fees
• Room & board
• Books & supplies
• Transportation
• Personal
• Loan fees
EXAMPLES
• Full-time In-state
– $22,740
– $17,816 = average billable*
– $4,924 = estimate*
• Full-time Out-of-state
– $37,218
– $32,294 = average billable*
– $4,924 = estimate*
*”Average billable” includes tuition/fees,
room/board, & internet fee. “Estimate”
includes estimated JMU billable expenses
such as books, personal expenses, etc.
15
EFC = Expected Family
Contribution
• The federal government determines a family’s
ability to pay for post-secondary expenses
(including living expenses)
• The figure schools use to determine a student’s
eligibility for need-based aid
• EFC below $9,501 will be considered for state
grants and Perkins, assuming other criteria are
met as well
16
Definition of Need
Cost of attendance (COA)
– Expected family contribution (EFC)
= Financial need
17
Sample 2013-14
Award Notice In-State (1)
FAFSA Filed by March 1
22,740 C0A
- 100 EFC
22,640 Need
5,595 Pell Grant
5,625 State Grant
3,500 Subsidized Direct Loan
1,000 Perkins Loan
2,030 Workstudy
2,000 Unsubsidized Direct Loan
- 2,990 PLUS (includes EFC)
= Fully Packaged
FAFSA Filed after March 1st
22,740 C0A
- 100 EFC
22,640 Need
5,595 Pell Grant
3,500 Subsidized Direct Loan
1,000 Perkins Loan
2,030 Workstudy
2,000 Unsubsidized Direct Loan
- 8,615 PLUS (includes EFC)
= Fully Packaged
Note: These are provided for example purposes only and are not a guarantee of award amounts as
VGAP, the Perkins Loan, and Workstudy eligibility are subject to funding availability and other criteria.
18
Sample 2013-14
Award Notice In-State (2)
FAFSA Filed by March 1
22,740 C0A
- 9,500 EFC
13,240 Need
4,370 State Grant
3,500 Subsidized Direct Loan
1,000 Perkins Loan
2,030 Workstudy
2,000 Unsubsidized Direct Loan
- 9,840 PLUS (includes EFC)
= Fully Packaged
FAFSA Filed after March 1st
22,740 C0A
- 9,500 EFC
13,240 Need
3,500 Subsidized Direct Loan
2,030 Workstudy
2,000 Unsubsidized Direct Loan
- 15,210 PLUS (includes EFC)
= Fully Packaged*
*Missed March 1st FAFSA date for state
grant and Perkins
Note: These are provided for example purposes only and are not a guarantee of award amounts.
19
Sample 2013-14
Award Notice In-State (3)
FAFSA Filed by March 1
22,740 C0A
- 9,501 EFC
13,239 Need
3,500 Subsidized Direct Loan
2,030 Workstudy
2,000 Unsubsidized Direct Loan
- 15,210 PLUS (includes EFC)
= Fully Packaged*
*Even though applied by March 1st, no state
grant and Perkins because EFC is too high.
FAFSA Filed after March 1st
22,740 C0A
- 9,501 EFC
13,239 Need
3,500 Subsidized Direct Loan
2,030 Workstudy
2,000 Unsubsidized Direct Loan
- 15,210 PLUS (includes EFC)
= Fully Packaged*
*Missed March 1st FAFSA date and EFC too
high for state grant and Perkins
Note: These are provided for example purposes only and are not a guarantee of award amounts.
20
Sample 2013-14
Award Notice Out-of-State
SAMPLE 1
37,218 C0A
100 EFC
37,118 Need
5,595 Pell Grant
3,500 Subsidized Direct Loan
2,000 Perkins Loan
2,030 Workstudy
2,000 Unsubsidized Direct Loan
- 22,093 PLUS (includes EFC)
= Fully Packaged
SAMPLE 2
37,218 C0A
- 9,500 EFC
27,718 Need
3,500 Subsidized Direct Loan
2,030 Workstudy
2,000 Unsubsidized Direct Loan
- 29,688 PLUS (includes EFC)
= Fully Packaged
Note: These are provided for example purposes only and are not a guarantee of award amounts.
Additionally, meeting the March 1st FAFSA Priority Filing Date does not provide a funding advantage in
the awarding formulas, but does allow a Preliminary Financial Aid Award Notice to be sent in a timely
fashion
21
OTHER
RESOURCES
22
Options
• Personal savings
• Investments (e.g., 529 plans, ESA’s, Mutual
Funds, etc.)
• Payment plans
• Part-time employment
• Grants (federal and state)
• Scholarships (institutional and private)
• Federal Loans (student and parent)
• Private Loans (student and parent)
23
Loan Repayment Example
•
•
Dependent student beginning in 2013-14 and eligible for maximum Direct
Loans for 4 years (assume student accepts the loans):
– 1st year - $5,500 - no more than $3,500 subsidized (3.86%)*
– 2nd year - $6,500 - no more than $4,500 subsidized (3.86%)*
– 3rd year - $7,500 - no more than $5,500 subsidized (3.86%)*
– 4th year - $7,500 - no more than $5,500 subsidized (3.86%)*
– Total debt - $27,000 (aggregate maximum $31,000, no more than $23,000 subsidized)
Standard Repayment Plan is 10 year
– $272/month in loan payments
– $32,650 repaid over the 10 year period
– $5,650 paid in interest
– This does not include any capitalized interest, which will increase the cost
*The interest rate on all new loans is set July 1st and fixed over the life of the loan. The rate
used in this example applies to loans disbursed July 1, 2013 – June 30, 2014. See
www.jmu.edu/finaid for current rates.
24
Zero-Based Budget
• Often overlooked…its not always about making
more money
• Income minus expenses each month equals
zero
• This means you have told every dollar of income
you have to do something very specific
• If you stick with this for each category, you will
not overspend and will likely avoid unnecessary
debt and expenditures
25
Cost of Living Adjustments
• Sample adjustments:
– Cell phone: If your plan costs $200/month, eliminate some options to
perhaps $100
– Dining out: If you spend $200/month dining out, cut back to $50
– Car payment: If you have a $400/month car payment, sell the car and
pay cash for something less expensive
– Total savings recouped in this scenario is $650/month that can be used
towards college costs
• This is merely one example and may not apply directly to you
• Looking at where you spend money and reducing some of the
“wants” can help make college more affordable and less reliant on
loan funding
• These are short term adjustments until the college years are over
26
Payment Plan Example
(2013-14)
•
•
Payment Plan (5 months per term)
Full-time, in-state, on-campus example
– $8,908 per term / 5 months = $1,781.60 (make payment monthly)
– Averages to $445.40 per week in a 4 week month (figure for budgeting purposes)
•
Full-time, out-of-state, on-campus example
– $16,147 per term / 5 months = $3,229.400 (make payment monthly)
– Averages to $807.35 per week in a 4 week month (figure for budgeting purposes)
•
Are there items you can reduce in your budget or debt you can eliminate
before college to help “cash flow” some of this?
–
–
–
–
•
Car payments
Improve food budgets
Credit card or other consumer debt
Other sacrifices to make for next 4 years to avoid long term college loan debt
(Opportunity Cost of debt)
See the University Business Office at www.jmu.edu/ubo for more details
27
Types of Institutional
Financial Aid Available
• Institutional Employment
• Off-Campus Employment
• Scholarships (some may require a FAFSA be on
file)
Note: You will not see these on a Financial Aid
Award Notice
28
Applying for Scholarships
Find scholarships at
www.jmu.edu/scholarships
Prospective Students:
–
–
–
–
–
Freshman Scholarship Programs (Admissions & University Departments)
Sarah Lanier Tabb Oliver Scholarship (Financial Aid)
Foundation Scholarships (University Departments)
Departmental Scholarships (University Departments)
Private Scholarships (Non-JMU Sources)
29
Scholarships and Financial Aid
Important Note!
• Receipt of scholarship funds from any
source may reduce your eligibility for need
based federal and state financial aid
• Please inform the Office of Financial Aid &
Scholarships as soon as you are aware
you will receive a scholarship
30
Scholarship Notifications
• Thomas and Karyn Dingledine Scholarship for Achievement in
Academics and Service
– Final scholarship recipients were mailed a notice in March 2014
• Madison Achievement Scholarships
– Recipients will be mailed an award notice by April 15, 2014
• Second Century Scholars Scholarship Program
– Recipients will be mailed an award notice by April 15, 2014
• Sarah Lanier Tabb Oliver Scholarship
– Recipients will be mailed an award notice by May 1, 2014
• Foundation Scholarships
– Timeline varies by department making the award
• Departmental Scholarships
– Timeline varies by department making the award
31
Private Scholarships
• Private scholarships can originate from any non JMU
source
• You can find some private scholarship searches at
www.jmu.edu/scholarships
• If you receive a private scholarship, complete an online
Supplemental Information Sheet to inform the financial
aid office regarding your good fortune
• According to state and federal regulations, we must
consider outside sources of financial assistance when
awarding aid
32
CLOSING
ITEMS
33
Subsequent Years
• The FAFSA must be filed each year for needbased scholarships
• Scholarships for continuing JMU students are
typically awarded through:
– Academic departments, and
– Office of Financial Aid & Scholarships
• Application procedures may vary by department
• Scholarship applications are required for the
Office of Financial Aid & Scholarships
34
Communication
• The majority of communications (e.g.
letters, e-mails, etc.) sent from our office
are sent directly to students, not parents
• The primary means of communicating with
students are through their JMU e-mail and
MyMadison accounts
35
Helpful Tools
www.jmu.edu/finaid
• Click on “Prospective Students”
– Click on “Freshmen Checklist”
– Click on “Financial Aid Timeline”
– Click on “Choices – Financial Aid
Presentation”
– Click on “JMU Terms & Conditions for
Financial Aid – Consumer Information”
– Many other options available
36
Questions
If you have any questions, please do not
hesitate to contact our office via one of the
following methods:
 In person at our 3rd floor counter in Warren Hall
 We will be moving to the 5th floor of the Student
Success Center after July orientation
 By phone at (540) 568-7820
 By e-mail at fin_aid@jmu.edu
 On the web at www.jmu.edu/finaid
37
Happening on CHOICES DAY
Smooch the
Pooch for
good luck at
JMU!
Sponsored by
The Madison Society
1:10 - 3:00 @ The Duke Dog Statue
#jmusmoochthepooch