Financial Aid 101
Financial Aid Information for 2016-2017
Jeff Johnston
Senior Account Executive
Sallie Mae
jeff.johnston@salliemae.com
Mary Cannon
Director of Financial Aid
Hondros College
mcannon@hondros.edu
The webinar will begin at 1:30pm.
We recommend that you download the power point and handouts
found at
Financial Aid 101
Financial Aid Information for 2016-2017
Today’s webinar in an introduction to financial aid. For a more in-depth
presentation and discussion you are encouraged to attend an OASFAA
counselor workshop on December 7,8, 9,10, or 11
Go to: www.oasfaa.org
Click on the High School Counselor Workshop Registration link.
Financial Aid 101
Financial Aid Information for 2016-2017
This webinar is sponsored by OASFAA:
Ohio Association of Student Financial Aid Administrators
Materials for this presentation come from OASFAA, the National
Association of Student Financial Aid Administrators (NASFAA) and
Federal Student Aid (FSA).
Financial Aid 101
Financial Aid Information for 2016-2017
OASFAA is a non-profit organization comprised of volunteer financial aid
professionals.
•
•OASFAA has
provided the information today as a free service.
•You
have permission to copy and distribute these materials to your students
and families. Charges may not be assessed for the material or for the
information presented. Permission must be granted for other use of this
information or these materials.
•Contact
the OASFAA Outreach Chairperson(s) listed on the OASFAA website,
or e-mail the OASFAA Outreach Committee at outreach@oasfaa.org
Additional resources for counselors are available for
download at the OASFAA website:
http://www.oasfaa.org/docs/toc_counselors.html
Financial Aid 101
Financial Aid Information for 2016-2017
•The
Key to obtaining Financial Aid is understanding how the
system works.
•Program:
•
•Part
1: Process & Programs
•Part
2: Filing out and filing the FAFSA
Handouts:
Funding Your Education (FSA,ED)
Cost Comparison Worksheet (OASFAA)
Scholarship Scams Tip Sheet (FastWeb)
Who is a Parent (FSA,ED)
Dependency Status (FSA,ED)
Financial Aid 101
Types of Aid
•
Scholarships
•
Grants
•
Loans
•
Employment
Gift Aid
Self-Help Aid
Purpose is to provide
Choice and Access
Types of Aid
Three Categories of Aid
•
Merit Based
•
•
Need-Based
•
•
•
•
Scholarships (performance)
Grants
Loans
Work-Study Jobs
Not Need-Based
•
•
Loans
VA Benefits
Education Tax Credits –
A way to defray costs!
• Budget Control Act (BCA) of 2011 (August 2, 2011)
•
Sequestration enacted on March 1, 2013 when Super Committee failed to reach an agreement.
• Consolidated Appropriations Act (CAA) of 2012 (December 23, 2011)
• Moving Ahead for Progress in the 21st Century Act (MAP‐21) (July 6, 2012)
- introduced 150% rule for Subsidized Stafford Loans
• American Taxpayer Relief Act (ATRA) of 2012 (January 2, 2013)
• Bipartisan Student Loan Certainty Act of 2013 (August 9, 2013)
•
8
Interest rates on direct loans recalculated annually
Financial Aid 101
Principles of Need Analysis
•
To the extent they are able, Parents have the primary
responsibility to pay for their dependent child’s education.
Students also have a responsibility to contribute to their
educational costs.
•
Families should be evaluated in their present financial condition.
•
A family’s ability to pay for educational costs must be evaluated
in an equitable and consistent manner, recognizing that special
circumstances can and do affect a family’s ability to pay.
Financial Aid 101
Definition of Need
Cost of Attendance
Tuition and Fees
Room and Board
Books and Supplies
Personal Expenses
Transportation
- Expected Family Contribution (EFC)
Student’s + Parent’s
Contribution
= Eligibility (Need-Based Aid)
Financial Aid Need
www.StudentAid.gov/how-calculated
Financial Aid 101
Expected Family Contribution (EFC)
•
Your EFC is calculated according to a formula established by law.
•
Stays the same regardless of college.
•
The formula does not measure willingness to pay!
•
The EFC is a number that college financial aid professionals use
to determine need. The information you report on your FAFSA is
used to calculate your EFC. Cost of Attendance determines total
financial aid eligibility.
www.StudentAid.gov/how-calculated
Financial Aid 101
Higher Education Reconciliation Act of 2005 (HERA)
College Cost Reduction & Access Act of 2007 (CCRAA)
Increased income protection allowance
for dependent students:
06-07 $2,550
07-08 $3,000 (HERA)
08-09 $3,080
09-10 $3,750 (CCRAA)
10-11 $4,500
11-12 $5,250
12-13 $6,000
13-14 $6,130
14-15 $6,260
15-16 $6,310
Financial Aid 101
Need Comparison
The Federal Expected Family Contribution (EFC) is the
same at each institution.
Handout: OASFAA’s Cost comparison worksheet
Net Price Calculator
Financial Aid 101
A Word about DEADLINES
How/When to file if dealing with early deadlines:
• If possible, complete the necessary 2015 income tax returns
prior to completing the FAFSA and utilize the DRT (IRS Data
Retrieval Tool) so you can complete the FAFSA more easily and
accurately, or…
• Follow a two-step process:
1. Step 1: Apply and estimate your tax information on
your application
2. Step 2: Make corrections later after completing the
tax return, using the IRS Data Retrieval Tool.
Financial Aid 101
Changes to Federal FAFSA Process
for 2017-2018
• FAFSA Availability:
The 2017-2018 FAFSA will be available annually as early as October 1st
(Available October 1st, 2016 for the 2017-2018 Aid Year)
• “Prior-Prior” Tax Info Required:
Student and Parent will report income from 2 years prior
(E.g. If a student will be attending beginning 2017-2018, 2015 tax
information would be required)
Financial Aid 101
Scholarship Searches & SCAMS
• Scholarship Scams Tip Sheet (free vs. paying a fee)
• Buyer beware 
• Project Scholarship Scam
www.ftc.gov/scholarshipscams
• Pursue local scholarships!
• Civic Organizations, Churches, and Employers
• Check with Colleges and Universities as they may also be aware of
external scholarships (as well as institutional scholarships)
Handout: OASFAA’s Scholarship Scams Tip Sheet
Historical Look at Need-Based Ohio
Aid
17
Source: AICUO
Ohio Aid Programs
2015-2016
Ohio College Opportunity Grant (OCOG)
War Orphans Scholarship
National Guard Scholarship
Safety Officers Memorial
Nurse Education Assistance Loan Program (NEALP)
Choose Ohio First
18
Ohio College Opportunity Grant (OCOG)
OH Department of Higher Ed (ODHE) formerly the OH Board of Regents (OBR)
Eligibility for OCOG

Student must file the FAFSA

be an Ohio resident

attend an Ohio public university’s main campus (not a regional campus or a community college)

or attend an Ohio private, non-profit college or university, or an Ohio private, for-profit institution
•
Students at community colleges and university regional branch campuses are not excluded from
the OCOG program; however, tuition level/costs are the determining factor in receipt of an OCOG
award.
•
Therefore, students in this sector have a $0 OCOG award amount unless the student attends an
eligible institution year-round. In this case only, awards may be distributed for one term in the
academic year once Pell Grants have been exhausted for the year.
2015-2016:
$2592 Private 4-year
$1296 Public 4-year
19
$888 Private, For-Profit
Ohio College Opportunity Grant (OCOG), 2015-2016
Students attending
community colleges
and regional campuses
are eligible to receive
OCOG if they are
eligible for ETV, as
foster youth students.

From https://www.ohiohighered.org/ocog
20
Federal Grants: Pell & SEOG


Pell Grant (2015-2016)
EFC of 00000 = $5775 maximum Pell
EFC of 05198 = $ 626 minimum Pell
*Need Based
*Must file FAFSA
*Portable
Federal SEOG Grant: (Campus Based)
*Exceptional financial need
*Lowest EFC’s (Pell Eligible students are priority)
*Award ranges from $100 to $4000
21
Federal Self Help: Work-study
•
•
•
•
Undergraduate or graduate students are eligible
Employment can be on or off campus
FWS wages excluded from EFC calculation!!!
Eligible employers
• School
• Federal, state, or local public agency
• Private non-profit organization in academically relevant jobs
• For-profit organization in academically relevant jobs
• Community service activities
Ohio minimum
wage in 2015:
$8.10 per hour
Federal Self Help: Perkins Loan
Program has expired. No new loans originated after October 1st 2015
Previous terms:
•
•
•
•
•
Eligible students (priority to exceptional need)
• Undergraduate or graduate students
• Must file the FAFSA
Annual and aggregate loan limits
• up to $5,500 annually for undergrads (varied by school)
• $27,500 aggregate for undergraduates
Interest rate: 5% (fixed) during repayment
Interest subsidized during in-school and nine-month grace period
Deferment and cancellation provisions available
Federal Self Help: Loans
 Federal


Student Aid
https://studentaid.ed.gov/sa/types/loans
The school you are attending has information on their web site
(especially related to process)

Only borrow what is really needed

Look at loans as an investment in the future
Federal Self Help: Loans
How do I apply for Federal Direct Loans?
(Deadline to apply is before the end of enrollment period)
•
File the FAFSA
•
Complete admission process at the school you plan to attend.
•
Review the award letter from the school to learn about eligibility.
•
Go to www.studentloans.gov
•
Sign in using your Federal Student Aid ID (FSA ID)
•
Student: complete entrance counseling AND MPN (Master Promissory Note)
•
Parent: complete PLUS application AND MPN
Financial Aid 101
Basic Steps for First-Time Filers
How do I apply for financial aid?
•
Apply for Admission
•
Complete admission process at the school you plan to attend.
•
Apply for FSA ID
•
Complete the Free Application for Federal Student Aid (FAFSA) online at www.fafsa.gov after January 1 for 2016-17
•
Review your Student Aid Report (SAR). Update estimated information, make corrections or contact
Financial Aid Office if corrections needed.
Complete and mail any supplemental forms required by the college or state agency.
Watch for your financial aid award letter or Financial Aid package from the college/university.
•
•
the
Financial Aid 101
FAFSA: Special Circumstances

If you or your family experienced significant changes to your financial situation,
complete the FAFSA to the extent you can and submit it as instructed. Consult with
the financial aid office at the college(s) you applied to or plan to attend.
•
•
•
•
Child support ending
Medical not covered by insurance
Parent loss of income
Property loss not covered by
insurance
•
•
•
Unusual debt or one-time income
Tuition expenses at an
elementary/secondary school
Parent in College
The financial aid administrator must have compelling reasons
to use professional judgment to make adjustments because of
special circumstances.
The financial aid administrator’s decision as to whether you
have special circumstances is final and can’t be appealed
to us (the US Department of Education).
Financial Aid 101
FAFSA: FOTW Homepage
www.FAFSA.gov
Paper (pdf) copy
Financial Aid 101
FAFSA Filing Options
www.FAFSA.gov
Provides the three
options for applying
including the PDF
FAFSA.
Financial Aid 101
FAFSA: Verification
The process of documenting the information you
provided on the FAFSA is called verification. If your
application is selected for verification and you do not
provide the documents requested on time, you will not
receive federal student aid and you might not receive aid
from other nonfederal sources.
Financial Aid
FAFSA: Verification and the IRS Data Retrieval Tool
•
•
•
•
•
VERIFICATION
Selected by the Central
Processing System (CPS) or the
Institution
Tax documents (transcripts) may
be required
If selected, completion is required
before aid can be disbursed
Verification materials are sent to
the financial aid office, not federal
processor
IRS DATA RETRIEVAL TOOL
•
Participation is Voluntary
•
Reduces documents requested by
the financial aid office
Financial Aid 101
FAFSA: FAFSA on the Web Worksheet
IRS DATA RETRIEVAL TOOL
Students and parents who have
completed their IRS tax return may be
able to use FAFSA on the Web to
electronically view their tax
information. With just a few simple
steps the tax information can also be
securely transferred into the FAFSA.
Handout: FOTW worksheet
FSA ID
has replaced the PIN
FSA is Federal Student Aid, which, as
a part of the U.S. Department of
Education, is the largest provider
of student financial aid in the nation.
Financial Aid 101
FSA ID
www.fsaid.gov
A parent only needs one FSA ID
Financial Aid 101
FAFSA Homepage
www.fsaid.gov
Financial Aid 101
FAFSA…One Log-in for all Applicants
All application options are
accessible with one log in:
• Starting a FAFSA
• Continue a FAFSA
• Corrections
• Adding a School Code
• Signing the FAFSA
• Status Check
• View SAR
www.fsaid.gov
Financial Aid 101
FAFSA - Need Help?
Customer service options
include Live Chat Help, a tollfree number, and e-mail.
www.fsaid.gov
Financial Aid 101
FAFSA: Frequent Errors
•
•
•
•
•
•
•
Social Security Numbers
Divorced/remarried parental information
Income earned by parents/stepparents
Untaxed income
U.S. income taxes paid
Household size & number in college
Real estate and investment net worth
Financial Aid 101
FAFSA: FAFSA on the Web Worksheet
• Used as pre-application worksheet
• Questions follow order of FOTW
Reasons to file electronically:
• Built-in edits to prevent costly errors
• Skip logic allows student and/or parent
to skip unnecessary questions
• Option for IRS Data Retrieval Tool
• More timely submission
• More detailed instructions and “help”
• Can check application status online
Financial Aid 101
College and Housing Information
Page 2 of Worksheet:
After you are online you can add up to 10
colleges on your FAFSA.
•College’s website
•School type
•Tuition and fees
•Net price average
•Graduation rates
•Retention rates
•Transfer rates
Financial Aid 101
FOTW Worksheet: Review of Key Elements
Page 2 of Worksheet:
After you are online you can add up to 10
colleges on your FAFSA.
•Student’s information, pg. 2
• Dependency questions, pg.2
• Who is a parent? pg.3
Handout(s):“Who is a parent” and “Assets Directions”
Financial Aid 101
Sign & Submit Page
Financial Aid 101
FAFSA Corrections
Financial Aid 101
Avoid Errors!
Important! Read the forms…..AND complete all forms carefully
Errors made in completing the FAFSA and/or supplemental
forms may delay application processing and result in the loss of
financial aid funds.
Financial Aid 101
•
•
Need Help?
Federal Student Aid Information Center:
1-800-433-3243
Phone system available 24/7
Agents available 8 a.m. – 10pm EST (M-F)
FSA ID Help:
1-800-557-7394
College Goal Sunday
•
Sunday, February 14, 2016
www.ohiocollegegoalsunday.org
•
Registration for students and
volunteers will open in late
fall.
•
Please check the website for
locations near you.
Our Contact Information

Email: outreach@oasfaa.org

Web: http://www.oasfaa.org/ (page for counselors)
 Request
an OASFAA volunteer High School Financial
Aid Night presenter.
 Register
for December Counselor Workshops (we
anticipate registration being live within a week).
 Sign
up for our email database to be sure you are
notified for all events.