Icc Financial Aid Night 08 09 Grhs


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Icc Financial Aid Night 08 09 Grhs

  1. 1. 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
  2. 2. Presentation Overview <ul><li>Financial Aid application process </li></ul><ul><ul><li>PIN registration, FAFSA “trouble spots” </li></ul></ul><ul><li>Post-application process </li></ul><ul><ul><li>FAFSA output, corrections, verification, professional judgment, award notification </li></ul></ul><ul><li>Description of federal and state programs </li></ul><ul><li>Questions </li></ul>
  3. 3. Government Philosophy on Financial Aid <ul><li>Three partners , who share responsibility of educational costs: students, parents , and taxpayers (government) </li></ul><ul><li>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 </li></ul><ul><li>FAFSA – determines an EFC (Expected Family Contribution) to make a consistent evaluation of each family’s financial circumstance </li></ul>
  4. 4. Pre-Application Process <ul><li>Apply for a PIN </li></ul><ul><ul><li>Go to: www.pin.ed.gov </li></ul></ul><ul><li>Get your 2007 taxes done ASAP! </li></ul><ul><li>Complete the “FAFSA on the Web Worksheet” at www.fafsa.ed.gov </li></ul>
  5. 5. To Register for a PIN: www.pin.ed.gov
  6. 6. PIN Registration <ul><li>Student and Parent each need their own PIN </li></ul><ul><li>Make sure name/DOB match Social Security card </li></ul><ul><li>Answer challenge question to activate </li></ul><ul><li>PIN can be used: </li></ul><ul><ul><li>E-sign FAFSA on Web </li></ul></ul><ul><ul><li>Check status/corrections </li></ul></ul><ul><ul><li>Sign Master Promissory Note for Federal Loans </li></ul></ul>
  7. 7. Time to get organized! <ul><li>Tax Returns </li></ul><ul><li>W-2 forms </li></ul><ul><li>Untaxed Income Info (Welfare, Social Security, Child Support, etc…) </li></ul><ul><li>Bank Statements </li></ul><ul><li>Investment Info </li></ul>
  8. 8. FAFSA on the Web Worksheet <ul><li>Go to www.fafsa.ed.gov and print off FAFSA on the Web Worksheet </li></ul><ul><li>Worksheet allows you to read and complete the questions before entering your information online </li></ul><ul><li>Questions are listed in the same order as they appear on the web site </li></ul>
  9. 9. FAFSA on the Web Worksheet
  10. 10. Application Process <ul><li>FAFSA submission began January 1, 2008 </li></ul><ul><ul><li>Final 0809 FAFSA deadline is June 30, 2009 </li></ul></ul><ul><li>FAFSA must be received within 30 days of term start date to receive State Grant for a term </li></ul><ul><li>College financial aid deadlines are usually much earlier than FAFSA and State Grant deadlines, so check with the college you will apply to </li></ul>
  11. 11. Application Process <ul><li>EVERYONE should submit a FAFSA, regardless of income </li></ul><ul><li>Studies show that 50% of undergraduates do not file the FAFSA </li></ul><ul><ul><li>While most non-filers are upper income families, 20% have low or moderate income </li></ul></ul><ul><ul><li>Many families are unaware that the federal aid deadline is not until END of school year </li></ul></ul>
  12. 12. CAUTION! <ul><li>Be sure to go to www.fafsa.ed.gov </li></ul><ul><li>(free government site) </li></ul><ul><li>NOT </li></ul><ul><li>www.fafsa.com </li></ul><ul><li>(commercial site--fee) </li></ul>
  13. 13. FAFSA on the Web: www.fafsa.ed.gov <ul><li>Apply </li></ul><ul><li>Reapply </li></ul><ul><li>Access PIN Web site </li></ul><ul><li>Find college codes </li></ul><ul><li>Check status of FAFSA </li></ul><ul><li>View SAR information </li></ul><ul><li>Make corrections </li></ul>
  14. 14. EXPECTED FAMILY CONTRIBUTION FOR DEPENDENT STUDENT <ul><li>Parent Income </li></ul><ul><li>Student Income </li></ul><ul><li>Untaxed Income </li></ul><ul><li>Exclusions </li></ul><ul><li>Assets </li></ul><ul><li>Family Size </li></ul><ul><li>Number Attending College </li></ul>
  15. 15. Dependency Questions: If you answer “NO” to all of the questions, you must include PARENT information.
  16. 16. Biological or Adoptive Parents <ul><li>If parents are married, report information for both parents </li></ul><ul><li>If parents are divorced or separated, provide information for parent: </li></ul><ul><ul><li>Student lived with the most in last year </li></ul></ul><ul><ul><li>Or, if lived equal periods with each parent, parent who provided the most financial support in last year or most recent year support provided </li></ul></ul><ul><ul><ul><li>If that parent remarried, include stepparent’s information, even if stepparent did not adopt student </li></ul></ul></ul>
  17. 17. Biological or Adoptive Parents <ul><li>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 </li></ul><ul><ul><ul><li>Generally, this is parent with highest income </li></ul></ul></ul><ul><li>If parent is single or widowed, provide information about surviving parent </li></ul><ul><ul><ul><li>If surviving parent remarried, include stepparent’s information, even if stepparent did not adopt student </li></ul></ul></ul>
  18. 18. Other Relatives and Legal Guardians <ul><li>Parents’ information </li></ul><ul><ul><li>Grandparents, foster parents, other relatives and legal guardians are NOT considered parents on the FAFSA unless they legally adopted student </li></ul></ul><ul><ul><ul><li>If student is orphan or is/was ward of the court, student should apply as independent </li></ul></ul></ul>
  19. 19. FAFSA “Trouble Spots” <ul><li>Student Social Security Number </li></ul><ul><ul><li>Make sure name and date of birth used on the FAFSA matches name and date of birth on Social Security card </li></ul></ul><ul><ul><li>Watch out for parents copying information from one sibling’s FAFSA to another (same SSN) </li></ul></ul>
  20. 20. FAFSA “Trouble Spots” <ul><li>Incorrect response to amount </li></ul><ul><li>of U.S. income taxes paid </li></ul><ul><ul><li>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) </li></ul></ul>
  21. 21. FAFSA “Trouble Spots” <ul><li>Net worth of investments </li></ul><ul><ul><li>Families forget to EX clude: family home, retirement accounts, life insurance, cash and savings already reported under “cash and savings” </li></ul></ul><ul><ul><li>Families forget to IN clude: other real estate, trust funds, mutual funds, CDs, stocks, bonds, Coverdell or other education savings accounts </li></ul></ul>
  22. 22. FAFSA “Trouble Spots” <ul><li>Parents’ household size </li></ul><ul><ul><li>Always include dependent student applicant, even if s/he doesn’t currently live with parents </li></ul></ul><ul><ul><li>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 </li></ul></ul>
  23. 23. FAFSA “Trouble Spots” <ul><li>Parent’s Household size (con’t) </li></ul><ul><ul><li>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) </li></ul></ul><ul><ul><li>If expected child will be born during school year, child can be included in household size </li></ul></ul>
  24. 24. FAFSA “Trouble Spots” <ul><li>For Worksheet A, families incorrectly report monthly benefit amount rather than amount received for entire tax year </li></ul><ul><li>For Worksheet B, families frequently exclude: </li></ul><ul><ul><li>Payments to tax-deferred pension and savings plans (Box 12 from W-2 forms) </li></ul></ul><ul><ul><li>IRA deductions and payments to self-employed retirement plans </li></ul></ul><ul><ul><li>Child support received (don’t report foster care payments) </li></ul></ul>
  25. 25. FAFSA “Trouble Spots” <ul><li>Worksheet C </li></ul><ul><ul><li>Income reported on Worksheet C is subtracted from family’s total income, thereby reducing the EFC and increasing eligibility for financial aid </li></ul></ul><ul><ul><li>Don’t forget to report: </li></ul></ul><ul><ul><ul><li>Higher education tax credits claimed during the previous tax year </li></ul></ul></ul><ul><ul><ul><li>Child support paid to another household </li></ul></ul></ul><ul><ul><ul><li>Student’s need-based work study income earned during the previous tax year </li></ul></ul></ul>
  26. 26. After Completing the FAFSA <ul><li>Student receives a Student Aid Report (SAR) by e-mail or mail </li></ul><ul><li>The Financial Aid Office at the school(s) you listed receives an electronic copy of the FAFSA results </li></ul>
  27. 27. Verification <ul><li>Certain applications are selected for Verification </li></ul><ul><li>If selected, family must complete Verification Worksheet sent by Financial Aid Office </li></ul><ul><ul><li>Must attach tax returns, W-2 forms and other supporting documentation </li></ul></ul><ul><li>After financial aid administrator has made corrections based on Verification, family should not make additional corrections without consulting Financial Aid Administrator </li></ul>
  28. 28. Corrections <ul><li>If a correction to applicant data is needed, the correction may be made: </li></ul><ul><ul><li>Using “Corrections on the Web” </li></ul></ul><ul><ul><li>On the paper SAR </li></ul></ul><ul><ul><li>By the College </li></ul></ul>
  29. 29. The Financial Aid Office <ul><li>Determines students’ eligibility for financial aid based on FAFSA results </li></ul><ul><li>Packages and offers financial aid to students </li></ul><ul><ul><li>based on eligibility </li></ul></ul><ul><ul><li>attempt to meet financial need </li></ul></ul><ul><li>Sends an award notification which details: </li></ul><ul><ul><li>Cost of attendance </li></ul></ul><ul><ul><li>Types and amount of financial aid </li></ul></ul><ul><ul><li>Conditions of the award </li></ul></ul><ul><ul><li>Disbursement procedure </li></ul></ul>NOTE: Students must be admitted to the college before they can receive an award letter.
  30. 30. Professional Judgment <ul><li>Examples such as: </li></ul><ul><li>Loss of income in 2008 compared to 2007 </li></ul><ul><li>Social Security benefits ending </li></ul><ul><li>Extreme medical expenses </li></ul><ul><li>Separation/divorce/death </li></ul><ul><li>Private tuition expenses </li></ul><ul><li>Settlements </li></ul><ul><li>Non-discretionary circumstances </li></ul><ul><li>- Contact the Financial Aid Administrator </li></ul><ul><li>**Aid Administrator may be able to make adjustments to certain data items on your FAFSA that MAY increase your eligibility for need-based aid. </li></ul>
  31. 31. Definition of Financial Need <ul><li>Cost of Attendance (COA for one year) </li></ul><ul><li>- Expected Family Contribution (EFC) </li></ul><ul><li>-------------------------------------------------------- </li></ul><ul><li>= Financial Need </li></ul>
  32. 32. Cost of Attendance <ul><li>Tuition and fees </li></ul><ul><li>Room and board </li></ul><ul><li>Books and Supplies </li></ul><ul><li>Travel </li></ul><ul><li>Personal Allowance </li></ul>
  33. 33. Cost of Attendance: Itasca Community College (for student living off-campus) <ul><li>Tuition & Fees $ 4,475 </li></ul><ul><li>Room & Board $ 5,733 </li></ul><ul><li>Books & Supplies $ 950 </li></ul><ul><li>Personal & Travel $ 4,105 </li></ul><ul><li>TOTAL Estimated Cost $15,263* </li></ul>* Based on 2008-2009 estimated information.
  34. 34. Comparison Cost of Attendance is based on 2007-08 estimated costs for 15 credits/semester for a Minnesota resident.
  35. 35. Need Varies Based on Cost
  36. 36. What is Financial Aid? <ul><li>Grants </li></ul><ul><li>Scholarships </li></ul><ul><li>Employment Opportunities </li></ul><ul><li>Loans </li></ul>
  37. 37. Grants <ul><li>Need-based gift aid - does not need to be repaid. </li></ul><ul><li>Federal Pell Grant </li></ul><ul><li>Federal SEOG Grant </li></ul><ul><li>Federal Academic Competitiveness Grant </li></ul><ul><ul><li>(Final High School Transcript must be on file with the college.) </li></ul></ul><ul><li>Federal SMART Grant </li></ul><ul><li>Minnesota State Grant </li></ul><ul><li>Tribal Grants </li></ul><ul><li>Other/Institutional Grant </li></ul><ul><li>Federal TEACH Grant (non-need based) </li></ul>
  38. 38. Scholarships <ul><li>Merit-based aid that does not </li></ul><ul><li>need to be repaid. </li></ul><ul><li>Institutional </li></ul><ul><li>Private </li></ul><ul><li>Minnesota Achieve ( www.getreadyforcollege.org /achieve ) </li></ul><ul><li>Minnesota Indian Scholarship </li></ul><ul><li> Scholarship search services: </li></ul><ul><ul><ul><ul><ul><li>www.scholarshipexperts.com </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>www.finaid.org </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>www.fastweb.com </li></ul></ul></ul></ul></ul>
  39. 39. Local Scholarship Resources <ul><li>Blandin Foundation Scholarship Program (based on need) </li></ul><ul><ul><li>Apply at www.blandinfoundation.org if not attending ICC. May 1 st deadline. </li></ul></ul><ul><ul><li>If attending ICC, apply directly to school by completing FAFSA by May 1 (priority deadline). </li></ul></ul><ul><li>Grand Rapids Community Foundation Scholarship Program </li></ul><ul><ul><li>Apply at www.gracf.org </li></ul></ul>
  40. 40. Scholarship Resources <ul><li>High School Guidance Counselor </li></ul><ul><li>Internet (but never pay a fee) </li></ul><ul><li>fastweb.com </li></ul><ul><li>finaid.com </li></ul><ul><li>Your college(s) of choice </li></ul><ul><ul><li>Academic </li></ul></ul><ul><ul><li>Athletic </li></ul></ul><ul><ul><li>Talent-based </li></ul></ul><ul><li>The community (church, civic, business organizations) </li></ul><ul><li>Local library resources </li></ul><ul><li>Parents’ place of employment </li></ul>
  41. 41. Student Employment <ul><li>Earnings are paid as hours are worked. </li></ul><ul><li>(ICC currently pays $8 per hour) </li></ul><ul><li>Federal Work-Study </li></ul><ul><li>Minnesota Work-Study </li></ul><ul><li>College Employment </li></ul>
  42. 42. Loans <ul><li>Must be repaid with interest. </li></ul><ul><li>Need-based </li></ul><ul><ul><li>Federal Perkins Loan (5% fixed) </li></ul></ul><ul><ul><li>Federal Subsidized Stafford Loan (6% fixed) </li></ul></ul><ul><li>Not need-based </li></ul><ul><ul><li>Federal Unsubsidized Stafford Loan (6.8% fixed) </li></ul></ul><ul><ul><li>Federal PLUS Loan (8.5% fixed) </li></ul></ul><ul><ul><li>Minnesota SELF Loan (variable rate) </li></ul></ul><ul><ul><li>Private/Alternative Loans (variable) </li></ul></ul>
  43. 43. Other Resources <ul><li>Reciprocity Programs </li></ul><ul><li>Federal Tax benefits for Higher Education </li></ul>
  44. 44. Federal Tax Benefits for Higher Education <ul><li>Hope Scholarship Tax Credit </li></ul><ul><li>Lifetime Learning Credit </li></ul><ul><li>Student Loan Interest Deduction </li></ul><ul><li>Employer Paid Tuition Assistance </li></ul><ul><li>Deduction for Qualified Higher Education Expenses </li></ul><ul><li>For further information, go to </li></ul><ul><li>www.ohe.state.mn.us </li></ul>
  45. 45. Review of Application Steps <ul><li>Reminders : </li></ul><ul><li>Apply for financial aid each year </li></ul><ul><li>Check priority dates and deadlines </li></ul><ul><li>Do not share your federal PIN </li></ul><ul><li>Obtain PIN for both STUDENT and PARENT </li></ul><ul><li>File federal income tax returns </li></ul><ul><li>Complete FAFSA </li></ul><ul><li>Complete School’s Financial Aid Application (if applicable) </li></ul><ul><li>Review Student Aid Report (SAR) </li></ul><ul><li>Complete verification process </li></ul>
  46. 46. What if I still have questions about Financial Aid? <ul><li>College Financial Aid Administrators </li></ul><ul><li>Office of Higher Education </li></ul><ul><li>(651) 642-0567 or toll free (800) 657-3866 </li></ul><ul><li>Call (800) 4-FED-AID </li></ul><ul><li>College Goal Sunday </li></ul><ul><li>When: Sunday, February 10, 2008 </li></ul><ul><li>Where: 2-4 p.m. at Bemidji High School </li></ul><ul><li>Cost: FREE! </li></ul><ul><li>More info: http://collegegoalsundayusa.org/ </li></ul>