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Financial aid 101
 

Financial aid 101

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    Financial aid 101 Financial aid 101 Presentation Transcript

    • Financial Aid 101
    • “The Guide”• Throughout this presentation “The Guide” refers to The Guide to Federal Student aid. • “The Guide” is available free to download from www.fsapubs.gov. • A hard copy can also be requested for free from the same website. 2
    • Today’s Agenda• Deadline and FAFSA Overview• The Calculation-EFC and Financial Need• Update on Federal Aid Programs• Update on State Aid Programs• The Calculation-EFC and Financial Need• Review of Resources3
    • Deadline and FAFSA Overview4
    • FAFSA Filing Statistics• Numbers provided for the first two 16 quarters of the year due to availability (courtesy Federal 14 Student Aid Data Center, 12 www.federalstudentaid.ed.gov)• FAFSA filing for the first two 10 quarters in 2011-2012 (14.96 8 million) are up approximately 8% 2011-2012 when compared to 2010-2011 6 2010-2011 (13.86 million), and are up 2009-2010 4 approximately 24% when compared to 2009-2010 (12.03 2 million). 0• If 8% increase stays consistent for Two 1st 2nd 2011-2012, over 22.8 million Quarter Quarter Quarter FAFSA’s will be completed by the Total end of the academic year!5
    • Detailed College Info and Comparison • College’s website • School type • Tuition and fees • Net price average • Graduation rates • Retention rates • Transfer rates6
    • Frequent FAFSA Errors• Social Security Numbers• Divorced/remarried parental information• 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
    • What is the significance of SAP?• During this time of heightened fiscal scrutiny at the federal level, there is increased pressure on institutions to be mindful of their responsibility to be sound stewards of Title IV funds, and have policies and procedures in place that directly reflect the guidance and regulations set forth by The U.S. Department of Education (ED).• Essentially, ED is mandating schools monitor student progress more closely, in an effort to cut down on exploitation of federal financial aid.8
    • Verification What is verification?  Verification (definition): the act or process of verifying.  Verify (definition): to establish the truth, accuracy, or reality of. Financial Aid Verification is the process of establishing the accuracy of the information submitted on the FAFSA.
    • VerificationTax Filers• Adjusted Gross Income (AGI)• U.S. Income tax paid• Untaxed Income• Untaxed IRA distributions• Untaxed pensions• Education credits• IRA deductions• Tax exempt interest
    • Verification• Food Stamps-Supplemental Nutrition Assistance Program (SNAP); • Documentation from the agency that issues the Food Stamps benefit• Child Support Paid – Signed statement from the individual who paid the child support listing; • The amount of child support paid • The name of the person to whom the support was paid • The name of the children for whom the support was paid
    • VerificationDocumentation of Tax Information• IRS Data Retrieval Process • If a student/parent(s) tax information is transferred using the IRS Data Retrieval Tool, they will not have to submit an IRS Tax Return Transcript.• IRS Tax Return Transcript • Transcript is free • Request on-line at http://www.irs.gov • Request by calling 1-800-908-9946 Note: In some cases signed copies of the IRS Federal Tax Form may be required.
    • Special Circumstances• Common examples of special circumstances reported to financial aid offices: • Medical bills • Parent or student loss of income • Unusual debt or one-time income • Tuition expenses at an elementary or secondary school • Parent in College• The financial aid administrator must have a compelling reason to use professional judgment.• The financial aid administrator’s decision regarding professional judgment is final, and cannot be appealed to ED.13
    • Net Price Calculator (NPC)• All Title IV institutions enrolling full-time, first-time degree or certificate seeking undergraduate students are required to have an NPC posted on their website by Oct. 29, 2011.• Using both student-entered and institution-provided data, the NPC allows prospective students to calculate their estimated net price at an institution based on the following basic formula: • Price of attendance minus grant aid• Schools may use ED’s NPC template, create their own template, or purchase a template from a third party.
    • Net Price Calculator• Benefits • Weaknesses • Designed to provide • Inclusion of direct and accurate and timely indirect costs in “price information about the of attendance” net price of a college. component can • Can assist families in significantly inflate the comparing colleges price tag. based on net price and • Institution’s flexibility to financial aid. customize template could make college costs comparisons an extremely complex process.
    • Determining Need• What is an EFC • Financial Need • Expected Family • Cost of Attendance – Contribution EFC = Financial Need
    • Federal Pell Grant 2012- 2013• Maximum award • Year-round Pell (two amount remains the Pell awards within the same as 2011-2012 same academic year) • $5,550 maximum has been eliminated. award for full-time • Effective date July 1, enrollment and an 2011 Expected Family Contribution (EFC) of zero17
    • Campus Based Programs, 2012-2013 Federal Federal Supplemental Work Education Study Opportunity Grant (FSEOG) Federal Perkins Loan All of the above programs will see a reduction in funding for 2012-2013. However, the decrease will vary from school to school, and exact funding amounts have yet to be announced.18
    • Direct Loans, 2012-2013• Direct Subsidized and Unsubsidized Loans are two separate, unique types of loans that are awarded separately. Subsidized Unsubsidized Need based Not based on financial need Interest is fixed at 6.8% for all Interest is fixed at 6.8% for all new undergraduate loans new loans disbursed after July disbursed after July 1, 2012. 1, 2006. Interest accrues from Interest is subsidized while time of disbursement of the the student is in school and funds. during deferment.19
    • Direct Loans, 2012-2013 Additional Total Available Class Year Base Amount Unsubsidized to Borrow Amount Freshman $3,500 $2,000 $5,500 Sophomore $4,500 $2,000 $6,500 Junior $5,500 $2,000 $7,500 Senior $5,500 $2,000 $7,500• Independent Students and Dependent Students whose parents have been denied the PLUS Loan are eligible for additional Unsubsidized Stafford Loans ($4,000 as Freshmen and Sophomores and $5,000 as Juniors and Seniors) 20
    • Direct Loans, 2012-2013• 1% default fee (deducted from the borrowers disbursement so borrowers net 99% of what they borrow).• The Budget Control Act (BCA) of 2011, Section 503 eliminated rebates in the Direct Loan program.21
    • Direct Loans, 2012-2013• Parent PLUS Loans • Loans to parents of dependent students. • Loan limits are up to the cost of education less any financial aid received. • Interest rate is 7.9% fixed. • Repayment begins within 60 days of full disbursement. • Payments may be deferred while the student is in school. • FAFSA completion is required.22
    • Update on State Aid Programs23
    • Ohio Aid Programs, 2012- 2013 • Ohio College Opportunity Grant (OCOG) • War Orphans Scholarship • National Guard Scholarship • Academic Scholarship • Safety Officers Memorial• Nurse Education Assistance Loan Program (NEALP) • Choose Ohio First 24
    • Ohio Education and Training Voucher Program• www.statevoucher.org• Eligibility requirements: • In foster care on their 18th birthday and aged out at that time. • Adopted from foster care with the adoption finalized after their 16th birthday • Foster care case closed between the ages of 18 and 21.25
    • Review of Resources26
    • College Goal Sunday• Sunday, February 12, 2012• www.ohiocollegegoal sunday.org• Student/Family registration is now available.• Please check the website for locations near you.27
    • OASFAA-Financial Aid Night Assistance• High School Counselors can now request a financial aid night presenter through the OASFAA website.• http://www.oasfaa.org/docs/outreach/gettin gthemessage.html28
    • Resources29
    • Resources30
    • Resources• Federal Student Aid Information Center (inside cover of “The Guide”) • (800)433-3243 • www.federalstudentaid.ed.gov• Federal Student Aid Publications Website • www.fsapubs.gov• Ohio College Access Information Hotline • (877)428-824631
    • Resources • Ohio College Access Network (OCAN) • www.ohiocan.org • Local OCAN representatives can be found through http://site.ohiocan.org/ directory32
    • Resources • Ohio School Counselor Resources Binder • Updates will be sent to counselors periodically, and when applicable.33
    • Questions?34