Financing Your Future …an introduction to financial aid for Grand Rapids High School Presented by Nathan Wright & Allison Geisler Financial Aid Staff Itasca Community College

Presentation Overview Financial Aid application process PIN registration, FAFSA “trouble spots” Post-application process FAFSA output, corrections, verification, professional judgment, award notification Description of federal and state programs Questions

Financial Aid application process

PIN registration, FAFSA “trouble spots”

Post-application process

FAFSA output, corrections, verification, professional judgment, award notification

Description of federal and state programs

Questions

Government Philosophy on Financial Aid Three partners , who share responsibility of educational costs: students, parents , and taxpayers (government) Parents’ and student’s responsibility to pay for higher education expenses to the extent that they are able and before federal or state funds are used FAFSA – determines an EFC (Expected Family Contribution) to make a consistent evaluation of each family’s financial circumstance

Three partners , who share responsibility of educational costs: students, parents , and taxpayers (government)

Parents’ and student’s responsibility to pay for higher education expenses to the extent that they are able and before federal or state funds are used

FAFSA – determines an EFC (Expected Family Contribution) to make a consistent evaluation of each family’s financial circumstance

Pre-Application Process Apply for a PIN Go to: www.pin.ed.gov Get your 2007 taxes done ASAP! Complete the “FAFSA on the Web Worksheet” at www.fafsa.ed.gov

Apply for a PIN

Go to: www.pin.ed.gov

Get your 2007 taxes done ASAP!

Complete the “FAFSA on the Web Worksheet” at www.fafsa.ed.gov

To Register for a PIN: www.pin.ed.gov

PIN Registration Student and Parent each need their own PIN Make sure name/DOB match Social Security card Answer challenge question to activate PIN can be used: E-sign FAFSA on Web Check status/corrections Sign Master Promissory Note for Federal Loans

Student and Parent each need their own PIN

Make sure name/DOB match Social Security card

Answer challenge question to activate

PIN can be used:

E-sign FAFSA on Web

Check status/corrections

Sign Master Promissory Note for Federal Loans

Time to get organized! Tax Returns W-2 forms Untaxed Income Info (Welfare, Social Security, Child Support, etc…) Bank Statements Investment Info

Tax Returns

W-2 forms

Untaxed Income Info (Welfare, Social Security, Child Support, etc…)

Bank Statements

Investment Info

FAFSA on the Web Worksheet Go to www.fafsa.ed.gov and print off FAFSA on the Web Worksheet Worksheet allows you to read and complete the questions before entering your information online Questions are listed in the same order as they appear on the web site

Go to www.fafsa.ed.gov and print off FAFSA on the Web Worksheet

Worksheet allows you to read and complete the questions before entering your information online

Questions are listed in the same order as they appear on the web site

FAFSA on the Web Worksheet

Application Process FAFSA submission began January 1, 2008 Final 0809 FAFSA deadline is June 30, 2009 FAFSA must be received within 30 days of term start date to receive State Grant for a term College financial aid deadlines are usually much earlier than FAFSA and State Grant deadlines, so check with the college you will apply to

FAFSA submission began January 1, 2008

Final 0809 FAFSA deadline is June 30, 2009

FAFSA must be received within 30 days of term start date to receive State Grant for a term

College financial aid deadlines are usually much earlier than FAFSA and State Grant deadlines, so check with the college you will apply to

Application Process EVERYONE should submit a FAFSA, regardless of income Studies show that 50% of undergraduates do not file the FAFSA While most non-filers are upper income families, 20% have low or moderate income Many families are unaware that the federal aid deadline is not until END of school year

EVERYONE should submit a FAFSA, regardless of income

Studies show that 50% of undergraduates do not file the FAFSA

While most non-filers are upper income families, 20% have low or moderate income

Many families are unaware that the federal aid deadline is not until END of school year

CAUTION! Be sure to go to www.fafsa.ed.gov (free government site) NOT www.fafsa.com (commercial site--fee)

Be sure to go to www.fafsa.ed.gov

(free government site)

NOT

www.fafsa.com

(commercial site--fee)

FAFSA on the Web: www.fafsa.ed.gov Apply Reapply Access PIN Web site Find college codes Check status of FAFSA View SAR information Make corrections

Apply

Reapply

Access PIN Web site

Find college codes

Check status of FAFSA

View SAR information

Make corrections

EXPECTED FAMILY CONTRIBUTION FOR DEPENDENT STUDENT Parent Income Student Income Untaxed Income Exclusions Assets Family Size Number Attending College

Parent Income

Student Income

Untaxed Income

Exclusions

Assets

Family Size

Number Attending College

Dependency Questions: If you answer “NO” to all of the questions, you must include PARENT information.

Biological or Adoptive Parents If parents are married, report information for both parents If parents are divorced or separated, provide information for parent: Student lived with the most in last year Or, if lived equal periods with each parent, parent who provided the most financial support in last year or most recent year support provided If that parent remarried, include stepparent’s information, even if stepparent did not adopt student

If parents are married, report information for both parents

If parents are divorced or separated, provide information for parent:

Student lived with the most in last year

Or, if lived equal periods with each parent, parent who provided the most financial support in last year or most recent year support provided

If that parent remarried, include stepparent’s information, even if stepparent did not adopt student

Biological or Adoptive Parents If student’s parents are living together but not married, provide information for parent who provided the most financial support in the previous year or most recent year support was provided Generally, this is parent with highest income If parent is single or widowed, provide information about surviving parent If surviving parent remarried, include stepparent’s information, even if stepparent did not adopt student

If student’s parents are living together but not married, provide information for parent who provided the most financial support in the previous year or most recent year support was provided

Generally, this is parent with highest income

If parent is single or widowed, provide information about surviving parent

If surviving parent remarried, include stepparent’s information, even if stepparent did not adopt student

Other Relatives and Legal Guardians Parents’ information Grandparents, foster parents, other relatives and legal guardians are NOT considered parents on the FAFSA unless they legally adopted student If student is orphan or is/was ward of the court, student should apply as independent

Parents’ information

Grandparents, foster parents, other relatives and legal guardians are NOT considered parents on the FAFSA unless they legally adopted student

If student is orphan or is/was ward of the court, student should apply as independent

FAFSA “Trouble Spots” Student Social Security Number Make sure name and date of birth used on the FAFSA matches name and date of birth on Social Security card Watch out for parents copying information from one sibling’s FAFSA to another (same SSN)

Student Social Security Number

Make sure name and date of birth used on the FAFSA matches name and date of birth on Social Security card

Watch out for parents copying information from one sibling’s FAFSA to another (same SSN)

FAFSA “Trouble Spots” Incorrect response to amount of U.S. income taxes paid Student and/or parents incorrectly report amount of federal taxes withheld , as shown on W-2 form, rather than the amount of taxes assessed (from tax table)

Incorrect response to amount

of U.S. income taxes paid

Student and/or parents incorrectly report amount of federal taxes withheld , as shown on W-2 form, rather than the amount of taxes assessed (from tax table)

FAFSA “Trouble Spots” Net worth of investments Families forget to EX clude: family home, retirement accounts, life insurance, cash and savings already reported under “cash and savings” Families forget to IN clude: other real estate, trust funds, mutual funds, CDs, stocks, bonds, Coverdell or other education savings accounts

Net worth of investments

Families forget to EX clude: family home, retirement accounts, life insurance, cash and savings already reported under “cash and savings”

Families forget to IN clude: other real estate, trust funds, mutual funds, CDs, stocks, bonds, Coverdell or other education savings accounts

FAFSA “Trouble Spots” Parents’ household size Always include dependent student applicant, even if s/he doesn’t currently live with parents Include parents’ other children if parents will provide more than half of their support from July 1, 2008 to June 30, 2009 OR if those children could answer “No” to all questions regarding dependency status

Parents’ household size

Always include dependent student applicant, even if s/he doesn’t currently live with parents

Include parents’ other children if parents will provide more than half of their support from July 1, 2008 to June 30, 2009 OR if those children could answer “No” to all questions regarding dependency status

FAFSA “Trouble Spots” Parent’s Household size (con’t) Include other individuals if they will live in parents’ household AND receive more than half of their support from July 1 through June 30 (Do NOT include foster children) If expected child will be born during school year, child can be included in household size

Parent’s Household size (con’t)

Include other individuals if they will live in parents’ household AND receive more than half of their support from July 1 through June 30 (Do NOT include foster children)

If expected child will be born during school year, child can be included in household size

FAFSA “Trouble Spots” For Worksheet A, families incorrectly report monthly benefit amount rather than amount received for entire tax year For Worksheet B, families frequently exclude: Payments to tax-deferred pension and savings plans (Box 12 from W-2 forms) IRA deductions and payments to self-employed retirement plans Child support received (don’t report foster care payments)

For Worksheet A, families incorrectly report monthly benefit amount rather than amount received for entire tax year

For Worksheet B, families frequently exclude:

Payments to tax-deferred pension and savings plans (Box 12 from W-2 forms)

IRA deductions and payments to self-employed retirement plans

Child support received (don’t report foster care payments)

FAFSA “Trouble Spots” Worksheet C Income reported on Worksheet C is subtracted from family’s total income, thereby reducing the EFC and increasing eligibility for financial aid Don’t forget to report: Higher education tax credits claimed during the previous tax year Child support paid to another household Student’s need-based work study income earned during the previous tax year

Worksheet C

Income reported on Worksheet C is subtracted from family’s total income, thereby reducing the EFC and increasing eligibility for financial aid

Don’t forget to report:

Higher education tax credits claimed during the previous tax year

Child support paid to another household

Student’s need-based work study income earned during the previous tax year

After Completing the FAFSA Student receives a Student Aid Report (SAR) by e-mail or mail The Financial Aid Office at the school(s) you listed receives an electronic copy of the FAFSA results

Student receives a Student Aid Report (SAR) by e-mail or mail

The Financial Aid Office at the school(s) you listed receives an electronic copy of the FAFSA results

Verification Certain applications are selected for Verification If selected, family must complete Verification Worksheet sent by Financial Aid Office Must attach tax returns, W-2 forms and other supporting documentation After financial aid administrator has made corrections based on Verification, family should not make additional corrections without consulting Financial Aid Administrator

Certain applications are selected for Verification

If selected, family must complete Verification Worksheet sent by Financial Aid Office

Must attach tax returns, W-2 forms and other supporting documentation

After financial aid administrator has made corrections based on Verification, family should not make additional corrections without consulting Financial Aid Administrator

Corrections If a correction to applicant data is needed, the correction may be made: Using “Corrections on the Web” On the paper SAR By the College

If a correction to applicant data is needed, the correction may be made:

Using “Corrections on the Web”

On the paper SAR

By the College

The Financial Aid Office Determines students’ eligibility for financial aid based on FAFSA results Packages and offers financial aid to students based on eligibility attempt to meet financial need Sends an award notification which details: Cost of attendance Types and amount of financial aid Conditions of the award Disbursement procedure NOTE: Students must be admitted to the college before they can receive an award letter.

Determines students’ eligibility for financial aid based on FAFSA results

Packages and offers financial aid to students

based on eligibility

attempt to meet financial need

Sends an award notification which details:

Cost of attendance

Types and amount of financial aid

Conditions of the award

Disbursement procedure

Professional Judgment Examples such as: Loss of income in 2008 compared to 2007 Social Security benefits ending Extreme medical expenses Separation/divorce/death Private tuition expenses Settlements Non-discretionary circumstances - Contact the Financial Aid Administrator **Aid Administrator may be able to make adjustments to certain data items on your FAFSA that MAY increase your eligibility for need-based aid.

Examples such as:

Loss of income in 2008 compared to 2007

Social Security benefits ending

Extreme medical expenses

Separation/divorce/death

Private tuition expenses

Settlements

Non-discretionary circumstances

- Contact the Financial Aid Administrator

**Aid Administrator may be able to make adjustments to certain data items on your FAFSA that MAY increase your eligibility for need-based aid.

Definition of Financial Need Cost of Attendance (COA for one year) - Expected Family Contribution (EFC) -------------------------------------------------------- = Financial Need

Cost of Attendance (COA for one year)

- Expected Family Contribution (EFC)

--------------------------------------------------------

= Financial Need

Cost of Attendance Tuition and fees Room and board Books and Supplies Travel Personal Allowance

Tuition and fees

Room and board

Books and Supplies

Travel

Personal Allowance

Cost of Attendance: Itasca Community College (for student living off-campus) Tuition & Fees $ 4,475 Room & Board $ 5,733 Books & Supplies $ 950 Personal & Travel $ 4,105 TOTAL Estimated Cost $15,263* * Based on 2008-2009 estimated information.

Tuition & Fees $ 4,475

Room & Board $ 5,733

Books & Supplies $ 950

Personal & Travel $ 4,105

TOTAL Estimated Cost $15,263*

Comparison Cost of Attendance is based on 2007-08 estimated costs for 15 credits/semester for a Minnesota resident.

Need Varies Based on Cost

What is Financial Aid? Grants Scholarships Employment Opportunities Loans

Grants

Scholarships

Employment Opportunities

Loans

Grants Need-based gift aid - does not need to be repaid. Federal Pell Grant Federal SEOG Grant Federal Academic Competitiveness Grant (Final High School Transcript must be on file with the college.) Federal SMART Grant Minnesota State Grant Tribal Grants Other/Institutional Grant Federal TEACH Grant (non-need based)

Need-based gift aid - does not need to be repaid.

Federal Pell Grant

Federal SEOG Grant

Federal Academic Competitiveness Grant

(Final High School Transcript must be on file with the college.)

Federal SMART Grant

Minnesota State Grant

Tribal Grants

Other/Institutional Grant

Federal TEACH Grant (non-need based)

Scholarships Merit-based aid that does not need to be repaid. Institutional Private Minnesota Achieve ( www.getreadyforcollege.org /achieve ) Minnesota Indian Scholarship Scholarship search services: www.scholarshipexperts.com www.finaid.org www.fastweb.com

Merit-based aid that does not

need to be repaid.

Institutional

Private

Minnesota Achieve ( www.getreadyforcollege.org /achieve )

Minnesota Indian Scholarship

Scholarship search services:

www.scholarshipexperts.com

www.finaid.org

www.fastweb.com

Local Scholarship Resources Blandin Foundation Scholarship Program (based on need) Apply at www.blandinfoundation.org if not attending ICC. May 1 st deadline. If attending ICC, apply directly to school by completing FAFSA by May 1 (priority deadline). Grand Rapids Community Foundation Scholarship Program Apply at www.gracf.org

Blandin Foundation Scholarship Program (based on need)

Apply at www.blandinfoundation.org if not attending ICC. May 1 st deadline.

If attending ICC, apply directly to school by completing FAFSA by May 1 (priority deadline).

Grand Rapids Community Foundation Scholarship Program

Apply at www.gracf.org

Scholarship Resources High School Guidance Counselor Internet (but never pay a fee) fastweb.com finaid.com Your college(s) of choice Academic Athletic Talent-based The community (church, civic, business organizations) Local library resources Parents’ place of employment

High School Guidance Counselor

Internet (but never pay a fee)

fastweb.com

finaid.com

Your college(s) of choice

Academic

Athletic

Talent-based

The community (church, civic, business organizations)

Local library resources

Parents’ place of employment

Student Employment Earnings are paid as hours are worked. (ICC currently pays $8 per hour) Federal Work-Study Minnesota Work-Study College Employment

Earnings are paid as hours are worked.

(ICC currently pays $8 per hour)

Federal Work-Study

Minnesota Work-Study

College Employment

Loans Must be repaid with interest. Need-based Federal Perkins Loan (5% fixed) Federal Subsidized Stafford Loan (6% fixed) Not need-based Federal Unsubsidized Stafford Loan (6.8% fixed) Federal PLUS Loan (8.5% fixed) Minnesota SELF Loan (variable rate) Private/Alternative Loans (variable)

Must be repaid with interest.

Need-based

Federal Perkins Loan (5% fixed)

Federal Subsidized Stafford Loan (6% fixed)

Not need-based

Federal Unsubsidized Stafford Loan (6.8% fixed)

Federal PLUS Loan (8.5% fixed)

Minnesota SELF Loan (variable rate)

Private/Alternative Loans (variable)

Other Resources Reciprocity Programs Federal Tax benefits for Higher Education

Reciprocity Programs

Federal Tax benefits for Higher Education

Federal Tax Benefits for Higher Education Hope Scholarship Tax Credit Lifetime Learning Credit Student Loan Interest Deduction Employer Paid Tuition Assistance Deduction for Qualified Higher Education Expenses For further information, go to www.ohe.state.mn.us

Hope Scholarship Tax Credit

Lifetime Learning Credit

Student Loan Interest Deduction

Employer Paid Tuition Assistance

Deduction for Qualified Higher Education Expenses

For further information, go to

www.ohe.state.mn.us

Review of Application Steps Reminders : Apply for financial aid each year Check priority dates and deadlines Do not share your federal PIN Obtain PIN for both STUDENT and PARENT File federal income tax returns Complete FAFSA Complete School’s Financial Aid Application (if applicable) Review Student Aid Report (SAR) Complete verification process

Reminders :

Apply for financial aid each year

Check priority dates and deadlines

Do not share your federal PIN

Obtain PIN for both STUDENT and PARENT

File federal income tax returns

Complete FAFSA

Complete School’s Financial Aid Application (if applicable)

Review Student Aid Report (SAR)

Complete verification process

What if I still have questions about Financial Aid? College Financial Aid Administrators Office of Higher Education (651) 642-0567 or toll free (800) 657-3866 Call (800) 4-FED-AID College Goal Sunday When: Sunday, February 10, 2008 Where: 2-4 p.m. at Bemidji High School Cost: FREE! More info: http://collegegoalsundayusa.org/

College Financial Aid Administrators

Office of Higher Education

(651) 642-0567 or toll free (800) 657-3866

Call (800) 4-FED-AID

College Goal Sunday

When: Sunday, February 10, 2008

Where: 2-4 p.m. at Bemidji High School

Cost: FREE!

More info: http://collegegoalsundayusa.org/