PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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PSC-ED-FSA-TISD
Moderator: Ch...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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At this time I would like to ...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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We all know it costs money to...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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That’s  why  we  encourage yo...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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There is absolutely no cutoff...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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It’s important to know though...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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The next grant is also need b...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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The next Federal Student Aid ...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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This type of loan is going to...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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Be sure to notice that the i...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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It’s pretty detailed. Once y...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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In addition you must have a ...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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So once you confirm your ide...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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We do have special circumsta...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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guardian will have already r...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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schools are going to give yo...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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It is important to remember ...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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First off we like to welcome...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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Next I told you earlier that...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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College Scorecard is an onli...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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And lastly we have another g...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
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So we have several great too...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
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Colleges and universities wh...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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Also the US Department of Ed...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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This is the first in a serie...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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This could mean that your pa...
PSC-ED-FSA-TISD
Moderator: Christal Simms
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They are 20 years old. And t...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
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So for us for Federal Studen...
PSC-ED-FSA-TISD
Moderator: Christal Simms
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Kevin Roberts:

It looks lik...
PSC-ED-FSA-TISD
Moderator: Christal Simms
11-19-13/4:30 pm CT
Confirmation # 7769537
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So we are now wrapping up fo...
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Transcript Financial Aid 101 Webinar, November 19, 2013

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We have provided a transcript of the Financial Aid 101 webinar for the hearing impaired. The Financial Aid 101 webinar is an overview of the U.S. Department of Education financial aid process which awards $150 billion dollars a year in grants, work-study funds, and low-interest loans to more than 14 million students.

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Transcript Financial Aid 101 Webinar, November 19, 2013

  1. 1. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 1 PSC-ED-FSA-TISD Moderator: Christal Simms November 19, 2013 4:30 pm CT Coordinator: Welcome and thank you for standing by. All participants will be on a listenonly  mode  for  the  duration  of  today’s  conference. This conference is being recorded. If you have any objections you may disconnect at this time. And I will now turn the conference over to Kevin Roberts. You may begin. Kevin Roberts: Thank you operator. Hello and welcome to the US Department of Education Office of Federal Student Aid presents Financial Aid 101 live from the nation’s  capital  Washington  DC. I’m  Kevin  Roberts  your co-host for  today’s  event. And sitting next to me is my colleague and co-host Ms. Amber Johnson. We are both awareness and outreach specialists for the Office of Federal Student Aid. And we are thrilled to have you join us today.
  2. 2. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 2 At this time I would like to turn over the presentation to my colleague Ms. Amber  Johnson  who  will  begin  discussing  today’s  topics. Amber Johnson: Thank you Kevin and hello and welcome everyone to the Financial Aid 101 Webinar. Today we’re going to be covering a variety of topics addressing federal financial aid and a process to acquire financial aid in general. Today’s topics will cover things such as when should you be considering college, financial aid myths that you may hear, the various financial aid programs, the FAFSA when and how to apply, what you should expect after submitting your FAFSA, (unintelligible) scholarships state aid and institutional aid searches as well as an opportunity for questions at the end so let’s  get  started. So ask yourself this question when should you consider college? Is the answer now, today, this minute or all of the above? This was kind of a trick question but the answer is all of the above it’s  never   too  early  to  begin  thinking  about  college  and  also  how  you’re  going  to  finance   your college degree. College can bring a lot about a lot of different unique opportunities for you and a lot of financial freedoms such things such as more money, and employment, more job opportunities, financial freedom. Across the board  it’s  a  fact  that  if  you  graduate  from  college  you  stand  to  earn   $1 million more than the High School graduate which is a lot more money. On  average  the  person  who  doesn’t  graduate from college is earning significantly less. So give yourself the best advantage and go to college.
  3. 3. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 3 We all know it costs money to go to college though and this is where the barrier can sometimes come in. We like to call this the cost of attendance. And cost of attendance includes all the unique financial situations that you have to take into consideration when committing to go to college. When people think about cost of attendance immediately they think of the tuition and fees which is the first and primary main source that you will have to cover but there are other things that come into play such as room and board, books and supplies, equipment, and transportation, miscellaneous personal expenses and even childcare. So we are here to talk to you today about the federal sources of aid that can help you bridge the gap and cover these costs. Kevin Roberts: Office of Federal Student Aid uses a lot of acronyms. And the most common acronym is FAFSA so what does it stand for? Well it stands for the Free Application for Federal Student Aid. And this is your first form that you will fill out to your entrance into the world of federal financial aid. Next let’s  start  debunking  some  myths  about  federal  financial  aid. There’s  a   lot of myths out there. The first one that we hear a lot about is that it costs money to apply for Federal Student Aid. The reality is applying is absolutely free. It costs nothing to apply for Federal Student Aid and you should avoid companies charging a fee.
  4. 4. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 4 That’s  why  we  encourage you to visit our Web site the official FAFSA Web site @fafsa.gov  that’s  F-A-F-S-A.G-O-V. It’s absolutely free. You should never ever have a company you should never ever have to pay a company to fill out the FAFSA for you when you can do it absolutely free. The  second  myth  the  form  is  too  hard  to  fill  out.  Well  that’s  not  true  anymore.   If you fill out the FAFSA online it is so much easier and much more efficient. The online application has built in skip logic. So when you answer a question within a section it will either tell you to move on to the next question within that section or it will allow you to move on to the next section of the FAFSA which is a great tool. And it also will streamline the entire process for you. We have some facts that we like to provide for you. Did you know that it only took 21 minutes for a dependent student -- and we’ll get to know the difference between dependent and independent later on in this presentation -- to complete their FAFSA online. So it only took 21 minutes for a dependent student. For an independent student it’s only 14 minutes. And this is completing the FAFSA completely online. So we highly encourage you to visit our Web site at fafsa.gov. Next this is a myth that we hear all the time. My parents make too much money  so  I  won’t  qualify  for  aid.
  5. 5. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 5 There is absolutely no cutoff limit to receive federal financial aid. We encourage everyone to fill out the FAFSA. It  doesn’t matter what your income is. You  may  not  qualify  for  grants  that’s  okay. You can still qualify for other federal financial aid programs including state aid and even institutional based aid. So you always want to fill out the FAFSA regardless of your income because there is always some type of source of aid available for you. Amber Johnson: So when you submit your FAFSA application you will automatically be considered for various federal financial aid programs. The Office of Federal Student Aid offers three primary sources of federal financial aid funds. First one is grants which is free money which everybody likes.  Free  money  you  don’t  have  to  repay  whatsoever. The second source of funding is going to come through Federal Work Study which as the name implies means that you are earning money that can be applied towards your college expenses. And finally federal student loans, loans  are  money  that  must  be  repaid.  It’s not so  scary.  And  we’ll talk about different ways to give you tips and tricks to make borrowing manageable for you. When you total all these programs up we award over $150 billion annually to help students pay for college.
  6. 6. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 6 It’s important to know though that as  you’re  looking  at  different  schools  and   programs be mindful that every school on your list may not offer all of the free programs. So it’s  important  that  you do a little bit of research and look at each school’s financial aid Web site to see what programs they participate in. Also some of these programs are going to be determined by need in terms of you being able to receive them. When you do your FAFSA application  you’re  going  to  be  given  an  in depth number which we call of the Estimated Family Contribution this number helps us to gauge when processing your application what level of need and how much income your household can contribute to your individual college expenses. So  let’s  get  started  looking  at  the  grants. Federal student aid offers four grant programs. And again grants are money that do not have to be repaid. Starting at the first one which is the Federal Pell Grant Program this is our staple program and has been around for a very long time. The amounts vary but for this award year the maximum amount is $5645. This amount will be adjusted if  you’re  attending  school  full time or part time. This grant in particular is need based. So again that estimated Family Contribution Number that you receive after doing your FAFSA will determine if  you’re  eligible  to  receive  this  type  of  grant.
  7. 7. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 7 The next grant is also need based. And it is our Federal Supplemental Educational Opportunity Grant FSEOG for short. This  amount  also  varies  starting  as  low  as  $100  up  to  $4000  a  year.  What’s   unique about this grant is that you have to be Pell Grant eligible in order to even be considered to receive this grant. And also this is one of those ones that may not be available at every school. So you want to check to see if your school even participates in this program. The next grant is the Teacher Education Assistance for College and Higher Education which is the TEACH Grant for short. This grant is very unique in the sense that you need to know pretty early that you want to commit yourself to the teaching profession. If you do you can receive a grant up to $4000. And this is eligible for you in the undergraduate as well as the graduate level. In order to receive this grant though you have to sign a commitment to serve which means that you need to commit yourself to teach in a high needs area which can be in a very rural location for at least a minimum of four years if you do not meet this teaching obligation that grant which was once free money will be converted into a loan that you have to repay with interest. And the final grant is the Iraq and Afghanistan Service Grant. This grant is for students whose parent or guardian unfortunately died after serving in Iraq or Afghanistan after the tragic events of 911. The maximum of this grant for this award year is $5080.50.
  8. 8. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 8 The next Federal Student Aid program is the Federal Work Study Program. As the name implies you are going to be working and earning money that you can then use towards your graduate and undergraduate college related expenses. These employment opportunities are arranged by the school and they can be both on and off campus. You’re going to be paid at least minimum wage and some schools may even pay a little bit more. Again this is a program that may not be eligible and available at every single type of institution on your list. So make sure you do a little bit of research. And lastly federal student loans I know loans sometimes get a pretty bad rap but they are a legitimate source of Federal Student Aid. They can be good things if you manage them appropriately so we have four different loan programs the Federal Perkins Loan, subsidized direct loans, unsubsidized direct loans and the plus direct loans. We’ll get into detail about these a little bit more but what is key to remember here is that you need to be prepared to borrow responsibly and only borrow which you need and not in excess. So two of the loans that we offer have very unique terms to them and I want to make sure that you understand the differences between the two. So for our Stafford Direct Loans they are offered in subsidized and unsubsidized categories. For subsidized loans the big thing to remember is that we at the government are paying the interest that accrues on that loan.
  9. 9. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 9 This type of loan is going to be based on your financial need. And it’s available to undergraduate students only. The amount that  you’re eligible to receive from this subsidized category is going to vary depending on the year that you are in school. It starts off as low as $3500 and can go up to $8000. On the other side you have the unsubsidized loan. And the big thing here is that you the borrower will be responsible for all of the interest that accrues on the loan from the first day that is dispersed to you. This loan is not based on financial need so the terms and the amount that you can borrow are a little bit higher. This one is eligible to both undergraduate and graduate students. And it starts off with $5500 up to $20,500 which is a lot of money and you can get into trouble if you are not being prepared and borrowing responsibly. Here is the table that provides a breakdown of the different loans that we just discussed. I will mention that the Federal Perkins Loan Program is different from the other loans and that the school itself will manage this loan so again one of those ones that may not be available everywhere. With the Perkins Loan when you go into repayment nine months after you graduate  you’re going to be repaying back to school. For the other three loans you will be paying back the servicer who will be identified once you get into the repayment category.
  10. 10. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 10 Be sure to notice that the interest rates right now for the current award year which for us began on July 1 and will end on June 30, 2014 are all fixed rates. But these things are subject to change. So make sure you keep in touch with us and through our various resources  that  we’ll talk about a little bit later to get all the latest information. Kevin Roberts: So  let’s  talk  about  the  FAFSA when and how to apply. So the first step in applying to receive federal financial aid is of course to fill out the free application for Federal student aid. When you enter into the FAFSA Web site you’re  going  to  enter  in  your  most basic demographic information. If  you’re  a  dependent you’ll  enter  in  your  parent’s  information  if  you’re  an   independent  you’ll  enter  in  your  own  information  along  with  the household income. Therefore you need to note that your eligibility is determined by the information you provide on the FAFSA. For our seniors that are on the phone call with us today please remember that you can file your FAFSA as soon as January 1 of this year for the 2014 and 2015 award year which will begin on July 1 of 2014. So you want to file as soon as possible so this January. This is our main Web site is called fafsa.gov. This is our Web site. Where you’ll begin to start a new FAFSA or if you are a continuing student you will enter this Web site to renew your FAFSA.
  11. 11. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 11 It’s pretty detailed. Once you get on the inside it will give you step by step on how to complete it. And it will also give you tips and helpful hints as well. So if you have any issues you can always call us and we will provide you our direct telephone number later on in this presentation if you have any questions filling out the FAFSA online. What do you need to know? If you are going to college you must file your FAFSA every year. So every year you want to receive federal financial aid you must renew your FAFSA with us. In addition you can file as early as January 1 as we stated in the previous slide. For our dependent students and independent students you also need to remember that you need to apply for a PIN. A PIN is a Personal Identification Number. This PIN will allow you to sign your FAFSA electronically. But of course you always have the option to print out the signature page and mail in your original signature. In addition the PIN will allow you to electronically sign your master promissory  note.  And  that’s  your  master  promissory  note  if  you  decide  to  take   out any federal student loan to help offset the cost of your education. And then you always want to file the earlier the better. Moving on basic eligibility requirements this is quite simple and straightforward. You need to - you must have a high school diploma or a General Education Development certificate or what we know as a GED or have completed homeschooling.
  12. 12. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 12 In addition you must have a Social Security Number however there are limited exceptions with those students from the Republic of the Marshall Islands, the Federated States of Micronesia or the Republic of Palau. You also must be a US citizen or an eligible noncitizen and registered with selected services. So for us males we need to be sure to register between the ages of 18 and 25. The students also need to enrolled or accepted for enrollment in an eligible program, be pursuing a degree certificate or a credential program and maintain satisfactory academic progress. And what satisfactory academic progress is basically a - an institutional standards for meeting SAP towards a degree or certificate offered by that institution. Every school has a SAP policy and they’re usually available on their Web site. Items to keep handy these are items that the financial aid office may request from time to time but you want to make sure that you always have them handy in case they do. You want to make sure you have your Social Security Number, Driver’s License although not mandatory, your Alien Registration Number and Federal tax information. Now  what’s great above filling out the FAFSA online is we have this great tool called the IRS Data Retrieval Tool. And it will allow you to link your tax information from the IRS to the FAFSA.
  13. 13. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 13 So once you confirm your identity and information it will automatically download your IRS tax return into the FAFSA for you. And this could be done for yourself and your parents which is a great tool and a  timesaver  so  you  don’t  have  to  manually  enter  in  all  that  tax  information  line   by line into the FAFSA. So I highly encourage everyone to use the IRS Data Retrieval Tool. And for our veterans you need to make sure you have a copy of your DD-214. And then again you want to make sure you have all the information on your savings, investment, and business and (unintelligible) assets for yourself and your parents if you are providing your parents information. Dependency status we get a lot of great questions about dependency status. And so we’re going to differentiate between the two. You  are  dependent  if  you’re  under  the  age  of  24, you are not married, and you have no kids. So  I’ll run that through one more time. You are dependent for federal financial aid purposes if  you’re  under the age of 24, not married, and you have no kids. If you are an independent if you meet one of the listed criteria shown here on this slide. And  that’s  different  or  dependency  status. Now the IRS tax rules are completely different from federal financial aid. So you do want to be aware this is strictly for financial federal aid purposes and not for tax purposes.
  14. 14. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 14 We do have special circumstances for students. We understand that not everyone can be considered a dependent or independent. There are special circumstances that we are fully aware of. And so some of the special circumstances for a dependent student to be considered an independent student are listed here on this slide such as parents are incarcerated, left home due to abusive family environment, unsure of parents whereabouts, and of course we want to make sure if you are going to be converted from a dependent student to an independent student that all of this information is well documented. And what we mean by that is  that  it’s  substantiated backed up by a teacher, a mentor,  whether  it’s  a  court  or  a  councilor et cetera that they that they can verify your history to convert you from a dependent student to an independent student. We also want to warn you that the financial aid director has financials stay. So it is up to a financial aid director at every institution to make a determination as to whether or not they will convert you from a dependent into an independent based upon the special circumstances that we outlined here today. If you have any questions I recommend that you contact the institutions financial aid office for further guidance. Amber Johnson: So  you’ve submitted your FAFSA or your renewal application or your original application for the first time and you’re wondering now what? So we’re going to give you a high level overview of what you can expect after you have submitted the button and you submitted your FAFSA to us here at Federal Student Aid so a high level overview so you and your parent or
  15. 15. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 15 guardian will have already requested a PIN and signed your FAFSA application with the PIN number. As my colleague has just mentioned for dependency that means that you are going to be providing information of your parents on your FAFSA application. And if  that’s  the  case  they  need  to  request  a  PIN number as well. The next step after you have submitted your FAFSA is  that  it’s  going  to  be   processed here by us at Federal Student Aid. On your end  you’re  going  to  receive  what is known as a Student Aid Report commonly known as the SAR. The SAR is going to summarize basically all the information that you have previously submitted on your FAFSA. The copy of report is also going to be sent to all of the schools that you have indicated on your FAFSA application. You can indicate up to ten schools so those that you list will receive a summary of your information. The college is then going to begin to review your information to see what type of programs and packages you may be eligible for. They will begin to assemble an award package for you which is simply them assembling all the various forms of federal financial aid and other funding such as scholarships that you may have received to cover your individual cost of attendance. What happens then is that the student will then receive your award letter. Back in the day this used to come to you in the mail but commonly now a lot of
  16. 16. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 16 schools are going to give you access to some online system to review your award letter online. However it comes to you it should cover basic information that should be consistent across all award letters. It should clearly identify what types of money  you  are  receiving  whether  it’s  a  grant,  a loan, work study or a scholarship. This is what you and your parents should use to identify and do apples to apples comparisons across the schools that you may be interested in. Maybe your number one choice is giving you more loans than grants so this may  become  a  determining  factor  in  deciding  where  you’re  going  to  go  to   pursue your education. One helpful hint that I want to make you aware of even though this does not happen for everyone is a process known as verification. Verification occurs when the school simply wants to make sure that all the information you have submitted on the FAFSA is correct. It’s  an  easy  process  to  get  through  so  don’t  get  worried  about  it  if  you  are   selected. And what normally is required is some type of IRS tax information that verifies the income records that you previously reported. Once  you’ve  submitted all this documentation to your school they will clear you through the verification process.
  17. 17. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 17 It is important to remember that if you are selected for verification your award package is completely estimated until all of your information has been verified by the financial aid office at that school. So  let’s  take  a  look  at  a  sample  award  letter.  This  is  a  person  who  is  attending   a school where they need $13,000 to cover their financial costs. This is an overview of kind of the headings that you should be looking for when evaluating your individual award letter. So this person received scholarships’ which is great, $2000. They also received an institutional grant which is money that came directly from the school. They also did their FAFSA and received some federal grants and some state grants. So when all  that  was  added  unfortunately  it  didn’t  totally  cover  the   $13,000 that was listed. So they decided that they needed to take out a small loan. So this total package equals $13,000. And the total financial need for this student has been met. This is going to be critical when evaluating award letters at different schools. Some schools may give you a larger loan package than others. And so you want to make sure you are making an informed decision before committing to an institution. Kevin Roberts: FSA resources we have a lot of resources available to the public. And  so  I’d   like to cover some of those free resources to you today.
  18. 18. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 18 First off we like to welcome you to our student aid.gov homepage. This is your primary source for learning everything there is to know of about federal financial aid. We love this Web site because  it’s  the lifecycle of a student loan. Starting from the left with the gentleman in the green box it says how do I prepare for college? That’s  for  us  who  are  just  starting  out to know what should I do to get ready for college. To  the  next  one  what  type  of  aid  can  I  get?  That’s  what  Amber  just  covered. We have three types of awards from federal student loans, to federal work studies and federal grants. Next do I qualify for aid? Do you meet the most basic eligibility criteria that I covered earlier in this presentation? How do I apply for aid visiting FAFSA.gov? And then lastly how do I manage my loans after I’ve graduated from college? This has a lot of great information. And this is the complete lifecycle of the student loan borrower history. So please feel free to visit student aid.gov to learn more a lot of great information out here for you. Next we want to connect with you and you should connect with us so please feel free to join us or like us on our Facebook page, like us on Twitter we are at ask FAFSA. And also we are on YouTube. We have a lot of great videos out there available for to you for viewing. So please join us and visit Facebook, Twitter, or our YouTube pages.
  19. 19. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 19 Next I told you earlier that you can always call us. We are available to you. We have a Federal Student Aid Information contact Center which is commonly known as FSAIC. They are available to you in both English as well as in Spanish. They can answer the most general information about Federal Student Aid, the FAFSA application, and you can even request to receive a paper application if you  want  to  and  they’ll  be  happy  to  mail  that  out. And  they’ll  also be happy to help you through the online process as well. In addition they can help you with FAFSA corrections. Let’s  say  you  made  a   mistake and you need to go in there and change it. They will be happy to assist you over the telephone. And lastly if you  are  a  prior  student  loan  borrower  they’ll  be  happy  to  go  over   any prior student loan history. The most important number you want to remember is 1-800 the number four Fed aid. Again that is our toll free number is 1-800 the number four Fed aid or 1-800-433-3243. And our hours of operations are Monday through Friday from 8:00 AM to 10:00 PM Eastern Standard Time. So you have a lot of great ways to reach out to us. Next I’d  like  to  introduce  to  you  our  College Scorecard. All of these next few slides can be found at collegecost.ed.gov. So the Web link for the information I’m  going  over  for  the  next  few  slides  are  all  located at collegecost.ed.gov.
  20. 20. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 20 College Scorecard is an online tool that will make it easier for students and families to compare colleges by comparing information such as net price, graduation rates, default rates, student loan debt, and earning potentials. Like Amber said earlier you want to shop around and compare which college will offer you the best financial aid packages available. And so this is  what  you’re  doing  here.  You  are comparing the college’s information. So you want to make an informed decision. This next slide is called our College Navigator. College Navigator provides a direct link to nearly 7000 colleges and career schools. This site contains searchable data to assist students and their parents in the school selection process. The Web site will allow you to search for schools by location, degree type and length, cost, program study, entrance requirements, and you can even do it customizable so please check out this great Web site College Navigator. The web link is at the bottom of the presentation or you can get to it through collegecost.ed.gov. And you just click on College Navigator. Our next Web site is called Financial Aid Shopping Sheet. It is a standard award letter that help students better understand the amount and types of financial aid they qualify to receive at each school. It lays out the total cost of attendance including tuition, fees and other expenses. So this is a good great sheet for you to check out. Again this is available at collegecost.ed.gov.
  21. 21. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 21 And lastly we have another great Web site which I would love to share with you and this is our Net Price Calculator. The Net Price Calculators are available on every school’s Web site. This online tool is intended to provide estimated net price information for current and prospective students and their families. This Net Price Calculator allows you to enter in basic information about your household size and income. Then it generates an estimate what it will cost to attend that institution after taking into account estimated grants and scholarship aid. So we have three great resources that you should check out for comparison shopping to make sure that you make an informed decision and you also choose an award package that is most favorable for you and your family. So please visit collegecost.ed.gov. The next tool which is available studentaid.gov is called the Fact Tool. It is important to understand the total cost of the attendance and how to budget your resources in order to avoid financial difficulties which Amber mentioned earlier you want to borrow responsibly. And so this fact provides helpful financial information to help students understand good money management and loan repayment obligations. You can actually access this Web site with or without your student login information and play around with this tool to get a general idea of what your obligations your financial obligations will be upon graduation.
  22. 22. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 22 So we have several great tools for you. So please check them out and utilize them. And make informed choices about the institution you want to attend and be a very responsible borrower. Amber Johnson: So  we’ve  just  covered  the  various federal financial aid programs available to you. But we are aware that there are times where filing the FAFSA being awarded  federal  funds  don’t  cover  everything  and  we  strongly  encourage  that   you start to look for other sources of federal financial aid and other nonfederal sources to help cover your total cost of education. So in this section we’re going to cover scholarships, state aid and institutional aid. So  when  you’re  thinking  about  how  am  I  going  to  pay  for  college  think  of   these different sources where money can come from? Of course there is us at the federal government and you can access that through the FAFSA as we just described. State government is another big one. States are giving out a lot of free money for simply being a resident and attending  a  school  that’s located in that state. Of course amounts will vary from  state  to  state  but  what’s  pretty  common  is   that a lot of states use our fast perform as the basic criteria to begin assessing your eligibility for their grant program. So not only are you killing a couple of birds with one stone with the FAFSA but you can also access more grant money which again as we discussed is free.
  23. 23. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 23 Colleges and universities while us here at Federal Student Aid don’t  offer   scholarships this is where a lot of money can come from specifically from colleges and universities. Maybe  you  have  really  good  GPA  and  you’re  able  to  access  various  merit based aid from the various colleges and universities that you are interested in attending. Lastly are some common nontraditional sources that you want to think about as well, private foundations employers and private companies, and professional and service organizations. Maybe your church, or  your  parent’s  job, or even large companies that you probably buy items from all the time have some type of educational component. All it takes is a little bit of research and maybe writing a couple of essays to access all of this money. So scholarships where should you start? Your best friend is going to be Google.  It’s completely going to help you to get organized and to kind of just stay abreast of all the different searches that come up every day different keywords out there that you can begin to Google. It’s  an  easy  step  just  to   become aware of the different opportunities that may be coming across. Corporations as I mentioned previously companies like Target, or Coca-Cola, items you consume on a general basis have an education department. Do a simple search. Go to their Web site. See what essay requirements they have. And it may be more easy than you think.
  24. 24. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 24 Also the US Department of Education also has a search engine. So as the second to Google definitely go to us as well. This one may also pinpoint specifically different keywords that pop up at different institutions. And we have a lot of information there based upon the schools who are working in our program. The big thing never pay for scholarships just like you should never pay for anyone to do the FAFSA form for you scholarship searches should be completely free. All you need to do is do a little grunt work in Google and you can find a lot of opportunities without having to pay anyone to do them for you. State and institutional aid as I mentioned before grants and merit aid may be based simply by being a resident of the state and attending a school in a certain state. So do a little bit of research. Be  aware  of  varying  deadlines.  While  we  at  the  school  I’m  sorry  at  the  school   they’re  going  to  have  admissions  deadlines, financial aid FAFSA deadlines. So you want to be aware of all those different things and that your organizing everything appropriately  so  that  you  simply  don’t  miss  out  on  money  because   you  just  didn’t  - weren’t aware of the due dates. So we’re nearing the end of our presentation. And before we get to the Q&A section where you can access whatever you want we want you guys to help us to improve our services.
  25. 25. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 25 This is the first in a series of Webinars that we will be delivering to our direct customers. And we want to get some feedback from you guys on how it was on your end. In the next couple of days you can expect a survey to be sent to you. And we are asking that you take this short survey and give us a honest feedback on how this Webinar went. So again keep an eye out for that in the next coming days. So  we’ve  reached  the  portion  of  this  presentation  where  we  are  going  to   answer some questions that we have been receiving. I know we covered a lot of information and a lot of different details about the various programs. So studentaid.gov I will say will be a reference point for a lot of this information after we are done. You can also download a handout  of  this  presentation  so  you  don’t  have  to   remember everything that we just covered but we do want to get to some of the questions that we have. Kevin Roberts: All right Amber we have a lot of great questions coming in.  So  I’m going to start us off with the first question for today. And that is what do I  do  if  my  parents  haven’t  filed their tax returns at the time  I’m  ready  to  do my FAFSA?  That’s  a  great  question. Amber Johnson: That  is  a  really  good  question  Kevin  especially  because  I’m  sure  a  lot  of  you   whether you are a student or a parent have heard that due to the federal government shutdown the IRS is going to have a delay on the processing of federal tax returns.
  26. 26. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 26 This could mean that your parents or yourself may not receive your W-2 information right away or be able to get your tax return submitted. So what we do is that we strongly encourage you to still submit your FAFSA application. And there is a way for you to do this without having your actual current tax year information. When you do the FAFSA on the Web there is an option for you to complete your FAFSA with estimated tax information. So your parents can simply reference their prior year tax return and fill in the information based upon that. This way you can hit Submit on your FAFSA. It gets you in the queue. The information goes to the school. And they can see that you have a flag that says estimated taxes have been entered. Once your parents have actually completed their taxes you need to go in and do a correction and update that information. So  don’t  get  too  attached  to  any  award  letter  that  you  receive  in  the  interim   period between updating your actual tax information because just as you entered estimated information your award letter is completely estimated until everything has been confirmed. So  don’t  wait. So we have another question. Kevin this person is wondering they live on their own, they pay their own bills, and even their own car payment.
  27. 27. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 27 They are 20 years old. And they are wondering if they can be an independent student. Is this something that they can be considered for? Kevin Roberts: That is a great question and I commend the person for being so independent and being on their own without support from their parents. However  for  federal  financial  aid  purposes  if  you’re  under  the  age  of  24  and   you’re  not  married  and  you  have  no  kids  you’re  going  to  have  to  be   considered a dependent to receive federal financial aid unless you meet one of those criteria that I outlined earlier today or if you meet one of those special circumstances where the financial aid director will need to be involved. So Amber that is a great question. But for this borrower it looks like he’s   going to be dependent based upon this quick question that he sent in to us. Amber Johnson: Good.  And  dependency  being  a  dependent  student  isn’t  a  bad  thing.  I  know  it can seem like a little bit of a hassle to get your parents information but with our IRS Data Retrieval Tool and other tips and tricks that we shared with you in this presentation it simply can be just as quick and easily as doing it yourself. So  don’t  worry  about  it. Kevin Roberts: All right Amber. It looks like we have another great question coming in. My parents  are  recently  divorced  which  parent’s  information should I put on the FAFSA?  That’s  a  great  question.  We  get  that  quite  often  here. Amber Johnson: Yes. And  it’s  a  pretty  straightforward  answer. So it was kind of kind of described earlier. Our dependency rules are a little bit different from what the IRS uses in terms of determining dependency for the purposes of federal tax returns.
  28. 28. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 28 So for us for Federal Student Aid purposes the parent who is providing more than 50% of the support for you in the last 12 months is a parent whose information should be included on the FAFSA form. We know this could be a little bit different then who is claiming you on your federal or your parents or your federal tax return. But again the individual providing more than 50% of the support is the person who would need to provide their financial information. And if you go to your parents they will have a good indication of who that individual should be. Okay  Kevin  I’m  going to try to get  to  a  really  good  one.  Let’s  see  so this person is married. And their husband and they don’t  believe  that  they’re going to be eligible for financial aid for federal grants at least. So they’re wondering is it even necessary to fill out the FAFSA? Kevin Roberts: Yes. The question is you should always fill out the FAFSA. If you still do not believe that you qualify for grants you could be eligible for other types of aid including the student loans which will help cover the cost of your education. Like Amber alluded to earlier today most state aid programs rely on the information that you provide on the FAFSA. So it always is important to fill out the FAFSA regardless if you know you might not qualify for the grant. You could still be eligible for other aid, state aid, institutional aid and so forth. So I will always encourage you to fill out the FAFSA. Amber Johnson: Thanks Kevin any other questions before we wrap up?
  29. 29. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 29 Kevin Roberts: It looks like we have a last great question coming in. And so let me take a look  at  this  real  quick.  All  right  let’s  go  ahead. My husband is returning from the war -- first off thank you for his service that’s  a  thank  you  very  much  for  his  service  -- and is planning to enroll in school. Will he be eligible for financial  aid  in  addition  to  his  G.I.  Bill?  That’s   an awesome question. Amber Johnson: Yes. And this one is good news. Definitely that individual who is -- thanking first thanking you for serving in our military and protecting our country -- but that individual definitely would be able and potentially eligible for federal financial aid. The only way to determine that for sure is going to be filing and submitting the FAFSA form. When it comes to the G.I. Bill that is specifically managed by the Department of Veterans Affairs. When it comes to federal student aid it’s managed by us here at Federal Student Aid. So the school is going to get pots of money from two different categories. For us the individual can be awarded up to that cost of attendance. So if there is a gap there that the G.I. Bill can cover they surely could be awarded both and we would encourage all active the veteran military personnel to submit that FAFSA application to determine eligibility. Kevin Roberts: Great. Thank you so much Amber for the great response. And again thank you for your military service to us to this great country.
  30. 30. PSC-ED-FSA-TISD Moderator: Christal Simms 11-19-13/4:30 pm CT Confirmation # 7769537 Page 30 So we are now wrapping up for our Q&A session. So we want to remind you that we will be sending out a short survey by email within the next few days. So we would love to hear from you and your feedback. It will be emailed from SurveyMonkey. So please look out for that. And please respond back to us. And again please visit us at studentaid.gov where you’ll get all this great information. And  don’t  forget our official Web site is fafsa.gov. Do not go to any other Web site except for fafsa.gov to fill out your application which is completely free. So we would like to thank you all for joining us. We are here live in Washington DC. So I thank you very much for our first Financial Aid 101 Webinar. And look forward to more Webinars from us. Amber Johnson: Have a great evening and afternoon everyone. Kevin Roberts: Yes. Coordinator: And  with  that  we  will  conclude  today’s  conference.  Thank  you  for  your   participation. You may disconnect at this time. END

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