Applying for Financial Aid
2015-2016 Academic Year
Jessica Hatfield, Financial Aid Counselor
Telephone: 860-439-2058
E-Mail: finaid@conncoll.edu
What you will learn:
•
•
•
•
•
What financial aid is
How financial need is determined
Sources of financial aid
When and how to apply
How to pay the bill
Helpful Advice
• Learn the college’s financial aid application
requirements and deadline date.
• Use the Net Price Calculator available on each
college’s web site.
Net Price Calculator
• Takes the guess work out of the EFC outcome.
• Carefully read all instructions and pop ups.
• All calculators are not alike.
• Each college builds theirs based on their policies.
• Try to “guesstimate” as close as possible.
• Don’t forget untaxed income
How Much Financial Aid
Will Be Offered?
• Dependent on a family’s ability to pay
• The college’s financial aid policy – do they award
merit or athletic scholarships?
• Dependent on the funding available from the federal
and state governments and the college.
• Were the financial aid applications and supporting
documentation submitted by the deadline date?
Definition of Financial Need
Cost of Attendance
LESS
Expected family contribution (EFC)
LESS
Other financial assistance
EQUALS
Financial need
Comparison of Need by Cost
(Assumes full-time enrollment)
4 Year Private
4 Year Public
2 Year Public
Cost of Education
$60,000
$25,000
$ 7,000
Expected Family
Contribution (EFC)
$10,000
$10,000
$10,000
Need
$50,000
$15,000
0
Meeting the Full Need and Gapping
College
A
B
Cost of Education
$60,000
$60,000
Expected Family
Contribution (EFC)
Need
$ 10,000
$ 10,000
$50,000
$50,000
Aid Awarded
$50,000
$35,000
Unmet Need
0
$15,000
Cost of Attendance
 Tuition and Fees
 Room and Board
 Books and Supplies
 Transportation
 Miscellaneous and Personal Expenses (purchase of a
computer)
Family Contribution Components
 Parent(s)’ 2014 income – taxed and untaxed
 Student’s 2014 income – taxed and untaxed
 Value of parent’s assets (at the time of FAFSA completion)
 Do include trusts, investment properties, % of primary residence that is
rented out & balance of 529 plans set up by the parent on FAFSA
 Don’t include value of retirement accounts or primary residence home
equity on FAFSA
 Report each account only once!
 Value of student’s assets (at the time of FAFSA completion)
 Do include trusts if the student is a beneficiary and UGMA/UTMA
accounts
 Don’t include 529 plans
 Report each account only once!
 Number of household members
 Number of dependents attending college at least half-time
Eligibility Assessed Using Federal Methodology
Based on information reported on the FAFSA (Free Application for
Federal Student Aid, 2015-2016)
Formula determined by Congress that is used to determine eligibility
for federal and most state funds
No information required from the non-custodial parent
Custodial parent and stepparent financial information is included
If student’s parents live together, regardless of marital status or gender,
financial information must be reported.
Home value and debt and value of retirement accounts are excluded
Parent contribution divided by the # of dependents attending college
at least half-time
Eligibility Assessed Using Institutional
Methodology
 Based on information provided on the CSS Profile or a custom
institutional application
 Used by schools to award their own funds
 Home equity might be added in
 Information from the non-custodial parent is generally required
 Tax losses may be added back
 Depreciation associated with a business or investment property
may be added back
 Parent contribution might not be divided equally
 No allowance for sibling enrolled in graduate school
 Minimum student contribution
Federal Student Eligibility Requirements
•
•
•
•
U.S. Citizen or eligible non-citizen
If male and age 18 must register for Selective Service;
Have a valid social security number;
Must be enrolled as a regular student in an eligible degree
or certificate program;
• Must have a high school diploma or an equivalent;
• While enrolled in college, must make satisfactory
academic progress.
• Must have resolved any drug conviction issue.
Forms Required
College
A
B
C
State of CT
GOV Sch.
FAFSA
X
X
X
X
X
X
X
03/01
02/15
CSS Profile
College
Form
Tax Returns
& W2
Statements
X
NonCustodial
Parent’s
Statement
X
Due Date
03/15
02/01
FAFSA on the Web Homepage
www.fafsa.gov
Federal Student Aid Personal
Identification Number (FSA PIN)
• Website: www.pin.ed.gov
• Sign FAFSA electronically
• Not required, but speeds
processing
• May be used by students and
parents throughout aid
process, including
subsequent school years
FAFSA
Free Application for Federal Student Aid, 2015-2016
•
•
•
•
Can’t file prior to 01/01/2015
State of Connecticut deadline: 2/15/2015
Required by all schools
Used to determine eligibility for federal/state need
based aid
• Student and one parent should apply for a pin #
now to sign the FAFSA electronically
What is the Federal Definition of a Parent?
• If parents are divorced or separated, answer the questions about
the parent the student lived with more during the past 12
months.
• If the student did not live with one parent more than the other,
give answers about the parent who provided more financial
support during the past 12 months.
• If parents live together, regardless of the marital status or
gender, financial information must be reported for both parents
What is the Federal Definition of a Parent?
• If the student’s parent has remarried, information about the
stepparent must be included.
• If the student’s parent is widowed or single, answer the questions
about that parent.
• The following people are not the student’s parents unless they have
adopted the student: grandparents, foster parents, legal guardians,
older brothers or sisters, and uncles or aunts.
Helpful Tips When Completing the FAFSA
Print out the FAFSA on the Web Worksheet (available
January 1, 2015)
Have your 2014 federal tax return and W2 statements in
front of you or prepare a draft 2014 federal tax return.
You can also use your 2013 federal tax return if income
will be similar to 2014.
It is okay to estimate in order to meet early deadline dates
required by colleges or state agencies.
Helpful Tips When Completing the FAFSA
• Must report as income:
– Adjusted Gross Income as listed on your tax
return
– Wages as listed on your W2 and/or business
income applicable to each parent.
– Taxes paid according to the tax table, not what
was withheld.
Helpful Tips When Completing the FAFSA
• Assets not to report:
– Value of your home
– Principal value of retirement plans (pension funds,
annuities, non-education IRAS, Keogh plans)
Review of W2
Review of Tax Return
Review of Tax Return
Helpful Tips When Completing the FAFSA
• When reporting assets, report the value as of the date the
FAFSA is completed.
Cash, savings, checking
Investment property (market value less debt)
Stocks, bonds, money market funds
CD’s, mutual funds, stock options, trusts
Coverdell savings accounts, college savings plans
Business (market value less debt)
Investment farm value (market value less debt)
Helpful Tips When Completing the FAFSA
• Assets not to report:
– Value of your home
– Principal value of retirement plans (pension funds,
annuities, non-education IRAS, Keogh plans)
What if parent information is not available?
– Student has no contact with the parent(s) and does not
know where they are (and the student has not been
adopted by someone else); or
– Student has left home due to an abusive situation.
• Must gather third party documentation to verify your living
situation: attorney, court officer, social worker
• Submit that third party documentation to the college that
you will most likely attend.
How to Sign the FAFSA
Making Corrections to the FAFSA
• Corrections can be made after the FAFSA has
been submitted and processed.
• Can add a college
• If you have submitted your IRS tax return, you
can link the IRS data to the FAFSA using the
IRS Data Retrieval Tool. Highly
recommended!!!!!
FAFSA Processing Results
• CPS notifies student of FAFSA processing results
by:
– Email notification containing a direct link to student’s
online Student Aid Report (SAR) if student’s email was
provided on paper or electronic FAFSA
• Student with PIN may view SAR online at
www.fafsa.gov
FAFSA Processing Results
• Institutional Student Information Record (ISIR)
sent to colleges listed on FAFSA approximately 3
business days after FAFSA is submitted
• College reviews ISIR
– May request additional documentation
IRS Data Retrieval Tool
• Available early February 2015 for 2015–16 processing cycle
• Must allow IRS processing time before it becomes available
to you.
– 2 weeks after filing if e-filing
– 6-8 weeks after filing if filing through the mail
• Participation is voluntary
• Reduces documents requested by financial aid office
IRS Data Retrieval Tool
• While completing FAFSA On The Web, applicant
may submit real-time request to IRS for tax data
• IRS will authenticate taxpayer’s identity
• System is EXTREMELY picky! Data must be
entered exactly as it appears on your tax return
• If match found, IRS sends real-time results to
applicant in new browser window
• Applicant chooses whether or not to transfer data to
FOTW
IRS Data Retrieval Tool
• Some will be unable to use IRS DRT
• Examples include:
– Filed an amended tax return
– No SSN was entered
– Student or parent married but filed separately
IRS Data Retrieval Tool
IRS Transcript
• If you are unable to successfully retrieve the IRS
data into the FAFSA, then you might be
required to provide an official IRS transcript.
You can request one from here: www.irs.gov
– Available 2 weeks after an electronic submission
– Available 6-8 weeks after a paper submission
COLLEGE GOAL SUNDAY
•
•
•
•
•
Get FREE help filling out the FAFSA!!
www.collegegoalsundayct.org
Sunday, January 25, 2015
1:30 p.m. – 4:30 p.m.
Local sites:
– Middletown: Middlesex Community College
– New London: Science and Technology Magnet HS
http://student.collegeboard.org/css-financial-aid-profile
CSS/Financial Aid Profile
Not required by all schools
$25 for the initial application and $16 for each
additional college
Non-Custodial Parent’s Form = $25
Forms used to determine eligibility for need-based
institutional grants.
CSS Profile Tips
In addition to the assets reported on the FAFSA,
you will be required to report:
– Value of your home, purchase price, purchase date and
current debt
– Value of your retirement accounts
CSS Profile Tips
• Once the Profile has been submitted, you will not be
able to make corrections. You will need to print out a
hard copy, make the corrections, send a copy to each
school that requires the Profile.
• Many colleges participate in IDOC which is a
document imaging service offered by the College
Board. You send your tax return to them and they will
scan it and make it available electronically to the
colleges.
Remember!
Grants/Scholarships do not have to be repaid (unless a
student withdraws during a term). Grants are typically awarded
based on need and scholarships are typically awarded based on
merit or athletic ability.
Student loans must be repaid
Federal Work Study provides income, which
does not have to be repaid, from a part-time job
Sources of Need Based Aid Federal Grants
(Funding amounts for 2015-2016 has not yet been determined)
Federal Pell Grant
Federal SEOG Grant
Federal TEACH Grant
Studentaid.gov for detailed information about these
programs.
State of CT Grants
For CT residents attending a college in CT
www.ctdhe.org
Ranges from $2,000 or $4,000 (approx.) FUNDING NOT
DETERMINED FOR 2015-16 YET
Governor’s Scholarship Program:
FAFSA required – must file by February 15, 2015
Need based: EFC less than $11,000
Merit based: Class rank: top 20%, testing scores of at least
1800 or higher for SAT or 27 or higher for ACT
Sources of Need Based Aid –
Federal Loans
 Federal Perkin Loans – up to $5,500
 Interest rate is 5% fixed
 Cancellation and deferment benefits
 Federal Direct Loan –
 1st year = up to $5,500 ($3,500 subsidized)
 2nd year = up to $6,500 ($4,500 subsidized)
 3rd-5th year = up to $7,500 ($5,500 subsidized)
 Current interest rates (2014-2015)
 4.66% for subsidized loans
 4.66% for unsubsidized loans
 Fee = 1.073% (2014-2015)
 Cancellation and deferment benefits
Sources of Need Based Aid –
Student Employment
Federal Work Study 




no limit but average range is $1,200 to $2,000
Students work approximately 8 – 10 hours per week
Paychecks issued to student
Employment can be on or off campus
Student must provide proof of eligible citizenship status to the college
 Unexpired passport (original)
 Social Security Card (original)
 Photo ID (driver’s license or college issued identity card)
Studentaid.gov
Sources of Institutional Grants and Outside
Resources
Institutional Grants/Scholarships are provided by
the college either from tuition revenue and/or
endowed funds and annual gifts.
Outside Resources –
Employee Tuition Benefit
National Merit, Rotary, Garden Club, etc.
High school guidance office
www.finaid.org
www.fastweb.com
BEWARE! If a scholarship application requires a fee – it is
probably a scam.
Shopping Sheet
(Helpful when trying to compare awards)
Tuition & Fees
Room & Board
Books & Supplies
Miscellaneous
Transportation
Total Cost
$45,000
13,000
1,000
500
500
$60,000
Federal Pell Grant
Federal Supplemental Educational Opp. Grant
State of CT Governor’s Sch. Program
College Grant
Total Grants
$ 2,500
$ 2,500
$ 2,500
$42,600
$50,100
Net Price (Cost less grants)
Options to pay Net Price:
$ 9,900
Federal Direct Subsidized Student Loan
Federal Perkins Loan
Federal Direct Unsubsidized Student Loan
$ 3,500
$ 1,000
$ 2,000
Remaining balance
Other options:
Federal Work Study $1,400
Parent Payment Plan
Parent PLUS loan
Private alternative loan
$ 3,400
How Aid is Applied to the Bill
 Tuition & Fees =
 Room & Board =
Total Charges =
$45,000
13,000
$58,000
Less aid:
 Grants
 Loans (subsidized)
Total Aid Applied to the Bill
Balance Due
Balance with unsubsidized loan
$50,100
$ 4,500
$ 2,000
Usually paid in two installments:
One-half of balance due on or about August 1
One half of balance due on or about January 1
Federal Work Study is not applied to the bill.
$54,600
$ 3,400
$1, 400
What if my family contribution seems unreasonable?
Compare aid awards from similar colleges. If the family
contribution is significantly different:
• Ask how the contribution was determined
Is there a contribution expected from the noncustodial parent?
Were losses reported on the tax return added back?
What is the minimum student contribution?
How were family members in college treated?
Was home equity included in the analysis?
• Has there been a change in family dynamics since the
FAFSA was filed?
• Request procedures for an “Appeal” or “Review”
How do I pay the bill?
 Prepare monthly income/expense flow
 Put surplus monthly income to work for you with a payment plan.
Each college arranges with a third party provider to participate in
one or more plans.
 Use savings but keep enough to cover surprises!
 Investigate home equity loan, 401K loans, stock loans or other
private parent loans. Factors to consider: age, job market, other
children to educate, income/debt ratio, credit rating
Federal PLUS Loan
Borrowers are parents of dependent undergraduate
students
Annual loan limit: cost of attendance minus other aid
Fixed interest rate – 7.21% (2014-2015)
Loan fees - 4.292% (2014-2015)
Repayment begins 60 days after the loan is fully
disbursed.
Can defer payments (interest will accrue) while student is
enrolled at least half-time.
Aid Award in Subsequent Years
Loan amounts increase as the student advances to the
next grade level
If parent income/assets increase, the parent contribution
will most likely increase.
If student assets decrease, the student contribution will
decrease
If the number of dependents enrolled in college changes,
the parent contribution will change.
Federal, state and institutional funding levels change from
year to year
Thank you for your attention. What
questions can I answer for you?