Financial Aid Night 2016-17
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Nick and Nola
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Financial Aid Philosophy
Students and their families have the
primary responsibility to pay
for postsecondary education
expenses
Note: even if the student has left
the household
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Types of Applications
Types of Applications
• FAFSA/FOTW (Free Application for Federal
Student Aid) / FAFSA on the Web)
www.fafsa.gov
• Standard Priority Deadline: Between Jan 1 and
March 2 of senior year
o Some schools may have an earlier deadline
o Available January 1 of senior year (at 12:01 AM)
• CSS/Financial Aid Profile
o Due as early as October 1 of the senior year
o Not required by all schools
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Types of Applications (con’t)
• Dream Act Application
www.caldreamact.org
• GPA Verification Form- complete release
form for Counselor’s office
• Apply early January for fall 2016, but no
later than the March 2 deadline!
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FAFSA Application Cycle and
PPY
Starting 2017-2018
• FAFSA available October 1st (2016)
• FAFSA will use “prior-prior-year”
(PPY) income data
• 2017-2018 FAFSA will use 2015
tax year information
© 2015 CASFAA
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FAFSA on the Web (FOTW)
• Collects family income, assets, number in
college
• Built-in edits prevent costly errors
and delays
• Smart logic allows student and/or
parent to avoid unnecessary questions
• Transfer data using the Internal
Revenue Service (IRS) data retrieval
tool
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FAFSA on the Web (FOTW)
Additional benefits:
• Available anytime/anywhere
• Easier corrections & updates
• Comprehensive instructions and
“help” for common questions
• Simplified renewal application
• For Federal & State Aid Determination
CSS Profile
• Individual colleges ask for information including home equity,
income and assets from non-custodial parents, etc.
• Not used for awarding federal financial aid- only aid from the
colleges/universities
• Not all schools require
• Cost - $25 for app & one college, $16 for additional colleges
• Online Registration only-
https://profileonline.collegeboard.org
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Initial Student Eligibility
• High school diploma, GED, or Proficiency test
• U.S. citizen or eligible non-citizen
• Valid Social Security number
• Enroll in an eligible degree or certificate program
• Register with Selective Service (males only)
• Sign a statement of educational purpose
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Maintaining Student Eligibility
• Not be in default or owe an
overpayment on a grant
• Maintain Satisfactory
Academic Progress (SAP)
• No drug convictions based
on Department of Education
standards
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Who is the California Dream Act
Application for?
• Students who meet the requirements of AB540:
• Attend a California high school for at least three years
• Graduate from a California high school or the equivalent
(GED or CHSPE)
• Attend a qualifying California college or university, and
• If applicable, complete an affidavit to legalize
immigration status as soon as student is eligible
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www.caldreamact.org
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Calculating Financial Aid
Eligibility
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What is Financial Aid?
Funds provided to students to help pay for
postsecondary education expenses.
Financial aid includes
• Grants
• Scholarship
• Work study
• Loans
Cost of Attendance (COA)
Standard Costs
Optional Costs
Tuition and fees
Student loan fees
Room and board
Study-abroad
Books and Supplies
Disability-related services
Transportation
Employment expenses for co-op
study
Miscellaneous personal
expenses
Child or dependent care
Note: Costs vary from institution to institution (and
year to year).
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Expected Family Contribution (EFC)
• EFC is the measure of a family’s financial
strength
• EFC is used to determine the student and
parent ability to contribute towards the student’s
cost of education
• Need analysis is the consistent
formula used in determining
a family’s EFC
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EFC Calculators
www.finaid.org
Click on Calculators
Click on Expected Family Contribution and
Financial Aid Calculator
www.FAFSA4caster.ed.gov
www.Collegeboard.com
Under “For Students”
Click on Pay for College
Click on Financial Aid Easy Planner
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Calculating Need Based Eligibility
Cost of Attendance (COA)
 Expected Family Contribution (EFC)
 Eligibility for Need-Based Aid
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Need and Eligibility Depend on Cost
Private 4-year
COA $49,000
- EFC
$5,000
= Need $44,000
Public 4-year
COA $26,000
- EFC $ 5,000
= Need $21,000
Public 2-year
COA $17,000
- EFC
$5,000
= Need $12,000
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Types of Financial Aid
Calculating Eligibility
Need-Based Aid—2015-2016 Federal Programs
Program
Award Amount
Notes
Pell Grant
Up to $5775*
Lifetime Eligibility 600% (max)
FSEOG (grant)
$100 to $4,000
Priority to Pell eligible students
TEACH Grant
Up to $3728*
Requires service contract otherwise
converts to unsubsidized loan
Iraq & Afghanistan
Service Grant
Up to $5382*
equal to Pell Grant – not to exceed the
COA
Work Study
Varies by school
On and off-campus employment
Subsidized Direct
Loan
$3500- $5500
(undergrad level)
Interest subsidy during periods of
enrollment of at least ½ time (150% max
eligibility)
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Calculating Eligibility
Need-Based Aid-2015-2016 California Programs
California Programs
Award Amount
Cal Grant A and B (new student
tuition/fees)
Up to $12,240 (Public); $9084
(Independents); $4,000 (For Profit)
Cal Grant B Access Award
$1,656 (at all schools) ;
Cal Grant C
Up to $2,462 (non CCC) $547 (at CCC)
Chafee Grant
Up to $5000
UC Student Aid
$100 or more
State University Grant
Covers full system-wide fees
Child Development Grant
$1,000 (CCC) or $2000 (4 yr)
Law Enforcement & Personnel
Dependents Grant
Up to $13,665 (for up to four years)
CCC Board of Governors Fee Waiver
Covers all Enrollment Fees
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Basic Cal Grant Eligibility
Federal Requirements
Additional Cal Grant Requirements
*U.S. citizen or eligible non-citizen
*California Resident
Meet Selective Service
requirements
Attend an eligible California school
*Have a Social Security number
Be enrolled at least half-time
Maintain Satisfactory Academic
Progress
High School GPA required
(Entitlement)
Not owe a grant repayment or be in
default on a student loan
Not be incarcerated
Not have earned a BA/BS degree
* These requirements are supplanted by other eligibility criteria for AB
540 students
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Middle Class Scholarship
New program beginning in the 2014-15 academic year.
http://www.csac.ca.gov/pubs/forms/grnt_frm/middle_class_scholarship_faqs.pdf
• Must be a CA resident attending a UC or CSU; US Citizen, permanent
resident or have AB540 status.
• If family earns up to $100,000 per year, may be eligible for a scholarship of
up to 40% of the system tuition & fees.
• If family earns between $100,001 & $150,000 per year, may be eligible for a
reduced scholarship of no less than 10% of system tuition & fees.
• Not set amounts & may vary by student & institution. The award it
determined after Pell, Cal Grant & institutional need-based grants
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Non-need based aid
• Unsubsidized Direct Loan
o Borrower amount based on grade level
o Fixed interest rate based on 10 yr T-Bill- currently
4.29%
o Interest accrues while student is enrolled- can be paid
while in school or added at repayment
o Principal payment deferred until 6 mos after
graduating
• Private Loans- credit based, interest varies
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Non-need based aid
Federal Parent PLUS Loan
• Parent borrows for the dependent undergraduate
• Approval subject to credit check- no adverse credit history
• Loan limits: COA less other aid
• Interest rate is fixed-currently 6.84%; fees up to 4%
• Repayment may begin while the student is in school or can
be deferred until after graduation. Student must maintain
half time enrollment to remain eligible for the deferment.
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Scholarships
• Apply (investigate) early
• Create a portfolio
• No time to be modest
• Personal statements . . . you’re only one person
• Letters of recommendation- 2 to 3
*make sure they like you
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Outside Scholarships
• Don’t pay money to get money in searching for
scholarships or applying for financial aid!
• Use Your College Center or other free sources for info.
• Four-year planning - are the scholarships renewable?
• Ask the colleges how they use them - Does the
scholarship go “on top” of the package, or replace the
college’s own scholarships?
• Students should start withwww.scholarshipexperts.com and www.finaid.org
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Awarding
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Net-Cost
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Awarding & Packaging
• Award letters may vary in composition
o Listing of awards and amounts
o COA, EFC, need and unmet need
o Period of enrollment covered
• Response may or may not be required
• Expect them between March and April
• Compare offers
CHECK EMAIL…OFTEN!!
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Sample Award Offer
Total Cost of Attendance
$36,000
- Expected Family Contribution
Financial Need
$0
$36,000
Federal Pell Grant
Cal Grant A
Outside Scholarship
Federal Work- Study
Federal Subsidized Stafford Loan
Federal Unsubsidized Stafford Loan
Unmet Need
$5,775
$13,896
$1,000
$3,000
$3,500
$2,000
$29,171
$6,829
*Federal Parent Plus Loan
$6,829
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Sample Award Offer
Total Cost of Attendance
$36,000
- Expected Family Contribution
Financial Need
$6,000
$30,000
Federal Pell Grant
Cal Grant A
Outside Scholarship
Federal Work- Study
Federal Subsidized Stafford Loan
Federal Unsubsidized Stafford Loan
Unmet Need
$0
$0
$5,000
$3,000
$3,500
$2,000
$13,500
$22,500
*Federal Parent Plus Loan
$22,500
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College Scorecard &
Net Price Calculator
© 2014 CASFAA
collegecost.ed.gov
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Shopping Sheet
• Standardized, clear, and concise
format for personalized financial
aid offers
• Better understanding of the costs
of college before making a final
decision on where to enroll
• Identifies the types and amounts
of aid qualified for and allows for
easy comparison of aid packages
• Consumer comparison tool
• Transparently and consistently
providing information to students
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Packaging at Most Private Institutions
• Subtract EFC (from FAFSA or Profile) from COA
• Use all state/federal funds possible to meet need
• “Leverage” gift aid/self-help institutional funds based
on desired characteristics
• MAY “gap” or apply Parent PLUS Loan to meet need
• MAY offer merit scholarships for academics,
leadership, athletics, talent, etc.
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WICHE- WUE
• Students who are residents of WICHE states are eligible
to request a reduced tuition rate of 150% of resident
tuition at participating two- and four-year college
programs outside of their home state.
• The WUE reduced tuition rate is not automatically
awarded to all eligible candidates. Many institutions limit
the number of new WUE awards each academic year, so
apply early!
• WICHE states include: Alaska, Arizona, California,
Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico,
North Dakota, Oregon, South Dakota, Utah, Washington,
Wyoming.
http://www.wiche.edu/wue
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FAFSA/ FOTW
(Free Application for Federal Student Aid)
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FAFSA on the Web (FOTW)
Start here for:
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Initial FAFSA
Corrections
Signatures / FSA ID
Continuing a saved FAFSA
Renewal FAFSA
www.fafsa.gov
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FAFSA on the Web (FOTW)
Contact Us
• Live Help (Chat)
(Mon-Fri 5am-7pm)
• (800) 433-3243
(1-800 4FedAid)
• FederalStudentAidCustomerService@ed.gov
© 2015 CASFAA
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FOTW help at StudentAid.gov
© 2015 CASFAA
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FSA ID replaces FSA PIN!
What this means:
Where to use an FSA ID:
• Improved security
• User-selected username &
password
• Eliminates need to supply SSN
and date of birth for login
• Each FSA ID must have a
unique email address!
• FAFSA on the Web
• My Federal Student Aid
(studentaid.gov/login)
• NSLDS
• StudentLoans.gov
• TEACH Grant website
fsaid.ed.gov
© 2015 CASFAA
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Whose info goes on a FAFSA?
© 2015 CASFAA
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Whose info goes on a FAFSA/
CA Dream Act application?
THE FAFSA & CA DREAM ACT APPLICATIONS NOW USE RELATIONSHIP OF PARENT TO
STUDENT, VS. LEGAL RELATIONSHIP BETWEEN PARENTS FOR BASIS OF COLLECTING INFO
Relationship of Student to Parent
Parents married, living together
Parents not married, living together
Includes both parents’
incomes on the app?
YES
YES
Only includes one parent’s income on the
app?
NO
NO
Parent is widowed, not remarried
NO
YES
Parents are divorced or separated, not living
together
NO
Parent and step-parent, living together
Legal guardians*
YES
NO
YES (include the parent the student lived
with most during the last 12 months. If
equal time, include the income from the
parent who provided most of the student’s
financial support during the last 12
months)
NO
NO
Foster Parents*
NO
NO
Grandparents, brothers, sisters, uncles, or aunts*
NO
NO
“Parent” means biological/adoptive parent – gender of biological or adoptive parents is not relevant.
*Students living with legal guardians, foster parents, or relatives are usually considered to be independent students.
© 2013 CASFAA
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Responses on the FAFSA
Never Married
Unmarried and both parents living together
Married or Remarried
Divorced or Separated
Widowed
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Divorced or Separated Parents
• Provide information for the parent(s) with whom
the student lived with most during the 12 months
prior to filing the FAFSA
• If the student spent equal time with both parents,
use the information for the parent who provided
the greatest amount of financial support for the
student in the prior 12 months
• If both parents are still living together, use
information for both parents on FAFSA
© 2015 CASFAA
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Remarried Parent
Provide information about the custodial parent
and stepparent regardless of:
• Agreement of “nonsupport”
• Prenuptial agreement
• Divorce decree designating tax filing exemptions
Note: A parent claiming the student on his or her tax return
need not be the parent required to provide data on the FAFSA
Note: Children of parent and stepparent should be included on
the FAFSA (if they provided more than half of their support)
© 2015 CASFAA
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Special Circumstances
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Special Circumstances- examples
• Change in employment status
o Dislocated workers/Loss of employment
• Change in parent marital status
• Medical expenses not covered by
insurance
o Elder care expenses
• Unusual dependent care expenses
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Special Circumstances
• Cannot be reported on the FAFSA
• Contact the financial aid office for
procedures. Procedures vary
• School’s decision is final and
cannot be appealed to the
Department of Education
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Professional Judgment and
Dependency Status
The Financial Aid Office has authority to
make a dependent student independent if
unusual circumstances exist:
• An abusive family environment
• Abandonment by parents
• Inability to locate parents
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Professional Judgment and
Dependency Status
Not considered “unusual circumstances”
• Parents refuse contribution towards education
• Parents unwilling to provide information on the
application or for verification
• Parents not claiming the student as a dependent
for income tax purposes
• Student demonstrating total self-sufficiency
Questions to Ask Colleges
• Does the institution offer merit-based scholarships?
• What forms do the institution require?
• What are the filing deadlines for each form required?
• What are the deadlines for applying for financial
aid and/or special scholarships?
• How does the college apply outside scholarships?
• Does the institution package to “need”? How?
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Questions
Luanne Canestro
canestrol@smccd.edu