Student Financial Aid

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Student Financial Aid

• Kiley Kuhlman
• Bowling Green State University
• Student Services Counselor
• kileyk_at_bgnet.bgsu.edu
• 419-372-2651
• Edgerton High School
• 1/10/2005

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Goals of Financial Aid

• Primary goal is to assist students in paying for
  college is achieved by
• Evaluating familys ability to pay for
  educational costs
• Distributing limited resources in an equitable
  manner
• Providing balance of gift aid self-help aid

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PART IFinancial Aid Overview(Process and
Procedures)PART 2 Introduction to Filling out
the FAFSA
Agenda
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What is Financial Aid?

• Loans
• Scholarships
• Grants
• Employment Opportunities

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How does one apply for Financial Aid?

• Submit a Free Application for Federal Student Aid
  (FAFSA). Most aid on first-come, first-served
  basis.
• To ensure maximum consideration for federal,
  state, institutional aid, students should
  complete their FAFSA as soon after January 1st as
  possible.

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FAFSA

• Collects familys personal financial
  information used to calculate students (EFC)
  Expected Family Contribution
• May file FAFSA in one of two ways
• Paper FAFSA
• Electronically via FAFSA on the Web
  www.fafsa.ed.gov

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Paper FAFSA

• 2005-06 FAFSA is an 8-page booklet containing
• General specific instructions
• 103 questions in 7 steps
• Worksheets A, B, C
• Pre-addressed envelope to mail completed form
  return-receipt postcard
• FAFSA provided

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FAFSA on the Web

• Web site www.fafsa.ed.gov
• 2005-06 FAFSA available on or after January 1,
  2005
• Pre-Application Worksheet built-in edits to
  help prevent costly errors

See FAFSA on the Web brochure
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Once the Financial Aid Office receives the FAFSA
information, they will process the application
and award students a package based on their
financial need.
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Determination of Financial Need
What factors determine your eligibility for
financial aid?
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Determination of Financial Need

• Error-Free record
• The results of your FAFSA application as
  demonstrated in the Expected Family Contribution
  (EFC) from a Student Aid Report or online after
  applying

EFC A measure of the familys capacity over
time to absorb educational costs
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Definition of Need

• Cost of attendance (COA)
• Expected family contribution (EFC)
• Financial need

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Need Comparison

• Higher Cost Mid
  Cost Lower Cost
  Institution Institution
  Institution
• Cost of Attendance 30,000 20,000
  13,000- EFC 2,208
  2,208 2,208
• Need / Eligibility 27,792
  17,792 10,792
• The Federal Expected Family Contribution
  (EFC) is the same at each institution.

Reference Green Handout
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If an error is noticed on the FAFSA application,
the student will need to make corrections to the
submitted FAFSA. The student may also be
selected for Verification.Verification Process

• This process is crucial in verifying that
  students are receiving the correct financial aid
  package.
• The process can result in changes to the
  students package or can be verified as remaining
  the same.

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If the student is selected for Verification,
he/she will be asked to submit a signed copy of
the following documents. (Additional Documents
may be requested)

• Independent
• Students Federal 1040
• Students W-2
• Verification Worksheet
• If the student is married, his/her spouses 1040
  W-2 is required as well.

• Dependent
• Parent and Students Federal1040
• Parents W-2
• Verification Worksheet

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How Can I Be Considered Independent?

• Answer Yes to at least one of
• the following 7 questions
• Were you born before January 1, 1982?
• At the beginning of the 2005-2006 school year,
  will you be working on a masters or doctorate
  program?
• As of today, are you married?
• Do you have children who receive more than half
  of their support from you?
• Do you have dependents (other than your children
  or spouse) who live with you and who receive more
  than half of their support from you, now and
  through June 30, 2006?
• Are both of your parents deceased, or are you or
  were you (until age 18) a ward/dependent of the
  court?
• Are you a veteran of the U.S. Armed Forces?

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What if my parents are divorced?

• File your FAFSA with the parent that you live
  with most.
• If you split your time between both parents
  equally, determine which parent contributes more
  than 50 of your support.
• If the parent you are required to file with is
  remarried, you must also include your
  step-parents financial information as well.

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A Word about Deadlines

• State and Federal deadlines
• State October 1
• Federal Period of enrollment
• Institutional deadlines
• Outside scholarship deadlines
• They vary, but check!!!

Theyre REAL
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Sources of Financial Aid and Suggested Timelines

• Federal Aid
• Pell, Dir. Stafford Loan, PLUS --available year
  round file ASAP
• Perkins, SEOG, FWSP file by the end of February
  limited funding
• State Aid
• OHIO Residents
• OIG consideration apply with the FAFSA by the
  end of September annually
• Non Ohio Residents see the FAFSA instructions
  or contact your state dept.
• University Aid (BGSU specific)
• Diversity Fee Grant FAFSA must be on file by the
  end of February for BGSU considerationlimited
  funding
• Scholarships various timelines application
  process often starts in late fall-early spring
  for upcoming school year
• Freshman Merit Awards based on H.S. GPA and
  ACT/SAT scores

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Federal Direct Stafford Loan Academic Year Limits

• Base for dependent Undergraduates
• Freshman - 2,625
• Sophomore - 3,500
• Junior - 5,500
• Senior - 5,500
• Base for Independent Undergraduates
• Freshman - 2,625 (4,000 unsub.)
• Sophomore - 3,500 (4,000 unsub.)
• Junior - 5,500 (5,000 unsub.)
• Senior - 5,500 (5,000 unsub.)

• Base for Graduate Students
• 18,500
• (only 8,500 can be subsidized)

Amounts based on full time enrollment
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Stafford Loans

• Available under
• Federal Direct Student Loan (Direct Loan) Program
  with funds provided directly by federal
  government via participating schools
• And/Or (Depending on School)
• Federal Family Education Loan (FFEL) Program with
  funds provided by lenders
• (e.g., banks or credit unions)
• School determines loan eligibility delivers
  loan proceeds to students

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Federal Direct Stafford LoansPrimary source of
aid offered to students upon filling out a FAFSA

• 1. Unsubsidized Currently 2.77 interest while
  in school and 3.37 in repayment.
• 2. Subsidized No interest collects on this
  need-based loan while the student is in school.
  The interest rate is currently 3.37 in
  repayment.
• Interest rates are evaluated annually and are
  updated on July 1st
• Repayment Occurs 6 months after the student
• 1. Graduates 2. Leaves School
  3. Falls below ½ time

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Federal Perkins Loan

• Interest rate 5
• 9-month grace period
• Repayment period may be up to 10 years
• Deferment cancellation provisions available

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Federal Supplemental Educational Opportunity
Grant (FSEOG)

• Eligible students
• Undergraduates pursuing first baccalaureate or
  professional degree
• Awarded first to students with exceptional
  financial need (i.e., students with lowest EFCs
  at that school)
• Priority to Federal Pell Grant recipients
• Annual award amounts (determined by school)
• 100 minimum
• 4,000 maximum

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Avoid Being Scammed

• To check legitimacy of scholarship search
  services or individuals, for information about
  financial aid scams, tips to avoid being
  scammed visit these Web sites
• Better Business Bureau http//www.bbb.com
• U.S. Department of Education http//studentaid.ed
  .gov/students/publications/lsa/index.html
• Federal Trade Commission www.ftc.gov/bcp/conline/
  publs/alerts/ouchart.htm

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Private Scholarship Search

• Free Internet scholarship search engines
• FinAid.org http//www.finaid.org
• The College Board http//www.collegeboard.com
• FastWeb.com www.fastweb.com
• Scholarship Resource Network Express
  www.srnexpress.com
• GoCollege.com The Collegiate Websource
  http//www.gocollege.com

Reference Blue Handout
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Institutional Scholarships

• To obtain specific institutional scholarship
  applications, contact the office and/or
  organization awarding them.

Outside Scholarship Search Engines www.fastweb.co
m www.petersons.com
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BGSU Renewable Freshman Academic Scholarships
(automatic consideration) All documents must be
in byJanuary 15, 2005

• University Professors Scholarship
• 3.8 Cumulative High School GPA or above and
• 30 ACT or 1300 SAT or above
• Full General, Instructional, Non-resident Fees
• Presidents Achievement Award
• 3.5 Cumulative High School GPA or above and
• 27 36 ACT or 1200 1600 SAT
• 2,500 academic year

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Work Study

• Federal Work Study (FWS) is a federally-funded
  program that provides work opportunities to
  graduate and undergraduate students with
  financial need.
• Eligibility is determined based on the submitted
  FAFSA information.
• FACTS
• To receive FWS funds, one must obtain a FWS job
  and be enrolled at least half time (undergraduate
  is 6 credit hours and graduate is 4 credit
  hours).
• FWS funds will be provided to the student in the
  form of a paycheck for the hours they actually
  work. Earnings are not automatically applied to
  your Bursar billing account.
• When the student applies for financial aid for
  the next academic year, through FAFSA, the
  government will not include work study income in
  their calculations to determine the Expected
  Family Contribution (EFC).
• FWS job openings are posted on BGSU Career Center
  Website, www.bgsu.edu/offices/sa/career under the
  Work Net Link. The job postings will provide
  information about the job, application
  requirements and an employer contact.

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Determination of Financial Need
Freddie Falcon is a freshman at BGSU. He will
live on campus and is a resident of Ohio.
His Annual Cost of Attendance 18,324 Tuition/F
ees 8, 082 Books/Supplies/Equipment
902 Room/Board 6,580 Misc. Personal
Expenses 1,982 Transportation
778
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Financing Unmet Need and EFC

• Freddie completed his FAFSA form and was awarded
  the freshman Federal Direct Stafford loan amount
  of 2,625 and the opportunity to earn money
  through the Federal Work Study program up to
  2,000 per academic year.
• Cost of Attendance (minus) all need-based
  financial aid Unmet Need
• 18,324 (COA)
• - 2,000 (Fed. Workstudy)
• - 2,625 (Fed. Subsidized Loan)
• 13,699 (Eligibility for PLUS/Alt. Loans)

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Financing Unmet Need and EFC (Continued)

• 1. Federal Parent Loan for Undergraduate Students
  (PLUS)
• Loan in parents name
• Repayment begins while student is in college
• If attending a Direct Lending School (i.e.
  BGSU), receive and submit application directly to
  the school.
• 2. Alternative loan programs
• Various terms, credit-worthy signer or co-signer
• Contact SFA for more details.

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Federal PLUS Loan

• Borrowers are parents of dependent undergraduate
  students
• Loan limits
• Annual limit COA - EFA (Est. Financial
  Assistance)
• Aggregate limit none
• Interest rate variable not to exceed 9
• July 1, 2004 - June 30, 2005 rate is 4.17
• 3 origination fee 1 insurance (usually waived)
• Repayment begins 60 days after full disbursement
  only principal is deferred, but interest may be
  capitalized

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Unusual Circumstances?

• Discuss with college financial aid office
• Examples include
• Change in family income
• Death, illness of family member
• Unusual expensesmedical, catastrophic event
• Colleges view eligibility differently. Financial
  aid administrators decision is final and cannot
  be appealed to the U.S. Department of Education.

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Satisfactory Academic Progress

• Financial aid recipients are expected to make
  reasonable progress as a condition of receiving
  and continuing to receive student financial aid.
• Meet minimum cumulative grade point average per
  grade level.
• Satisfactorily complete at least 67 of
  cumulative credit hours attempted.
• Complete the degree/certificate program within
  the maximum attempted hours.
• Financial aid recipients who do not meet these
  conditions will lose their financial aid
  eligibility.
• Students who have been denied financial aid based
  on this policy have the right to appeal to
  Student Financial Aid.

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Part IIIntroduction to Filling out the Free
Application for Federal Student Aid(FAFSA)
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Records You Will Need to File the FAFSA

• 2004 US Income Tax Returns
• W-2 Forms
• Untaxed Income Information
• Bank Statements
• Drivers License
• Investment Information
• Business Records
• Farm Records

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FAFSA on the Webwww.fafsa.ed.gov

• FOTW
• More Accurate
• Updates are easier
• Much quicker!!
• Save work

Scheduled maintenanceweb site is unavailable
every Sunday from5 a.m. 11 a.m. EST
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Before Beginning a FAFSA Overview
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One of the Many Options Within the Before
Beginning a FAFSA Section
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The First Page
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Internal PIN application (Student)
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Internal PIN Application (Student)
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• Why Have A PIN?
• Sign the Free Application for Federal Student Aid
  (FAFSA)
• Submit Electronic Signatures on Promissory Notes
• Submit online correction records and renewal
  FAFSA application
• Enter Student Access on the Web (personal DOE
  site)
• Access Direct Loan origination, servicing and
  consolidation websites (track your loans)
• Access National Student Loan Data Services
  (NSLDS) website (checking your loan and grant
  history for life)

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Prompt to Save After Each Step
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Application Saved Text
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Confirmation Page with Link to Begin Another
Application with Parental Information
Pre-populated
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Frequent FAFSA Errors

• Divorced/remarried parent information
• Income earned by parents/stepparents
• Untaxed income
• U.S. income taxes paid
• Household size
• Number in postsecondary education
• Investments
• Real estate and investment net worth

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What happens after the FAFSA is completed?

• Student Receives notification from FAFSA and is
  issued a (SAR) Student Aid Report.
• If adjustments need to be made to the
  information, the student may begin the process
  through FAFSA.

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SAR on the Web

• Will display full SAR comment text
• HTML and PDF printouts will be the same and will
  include all fields on paper SAR, including EFC
• Students can click on Make Correction button
  included in SAR comment text and go directly to
  Corrections on the Web

DRN Data Release Number
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Corrections

• If necessary, corrections to FAFSA data may be
  made
• On paper SAR
• Using Corrections on the Web (www.fafsa.ed.gov/stu
  dentaccess.htm) if student has PIN or
• SAR Information Acknowledgement cannot be used to
  make corrections

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The Corrections on the Web Shopping Cart
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Correcting a Response
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CAUTION!

• Avoid being charged a fee to file the Free
  Application for Federal Student Aid
• Processes of completing processing the FAFSA
  are FREE
• If filing via FAFSA on the Web, be sure to go
  directly to www.fafsa.ed.gov
• Questions?
  Contact FAFSA
  1-800-433-3243
  Financial Aid Office

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HELP!!!!!!
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Students register after January 1 at
www.oasfaa.org
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www.studentaid.ed.gov
Bookmark
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Federal and State Tax Incentives

• Federal Taxpayer Relief Act of 1997 http//www.ed
  .gov/offices/OPE/PPI/HOPE
• Hope Scholarship Tax Credit
• Lifetime Learning Tax Credit
• Student Loan Interest Deduction
• Education IRA, Qualified State Tuition Plans
• State of Ohio
• Tax Credit for educational expenses
• Deduct amount of contributions to 529 Savings
  Planswww.collegeadvantage.com

Reference Pink Handout
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STATE GRANT SCHOLARSHIP PROGRAMS

• 1-888-833-1133
• www.regents.state.oh.us/sgs/

• Reference yellow handout

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• There are many processes and variables that need
  to be taken into consideration when determining
  financial aid for students.
• The primary goal of our office is to assist
  students throughout the process and offer
  guidance towards their educational investment.

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Any Questions?