The Montana Association of Student Financial Aid Administrators

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The Montana Association of Student Financial Aid
Administrators The University of Montana
Presentation developed and provided free by
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Handouts

• Record Keeper (The File Folder)
• College Goal Sunday Card
• Annual College Planning Worksheet
• Funding Your Future Booklet
• Student Loans at a Glance brochure
• 2008-09 FAFSA on the Web Worksheet
• (Gather information and use to enter on-line)
• Presentation/Discussion Papers

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Agenda

• General Information and Advice
• Scholarship Information
• Filing for Federal/State Financial Aid
• Cost of Attendance
• Need Analysis (The FAFSA EFC)
• Types of Aid
• Tax Benefits Other Resources
• General Questions
• Personal Questions-After Presentation

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Do This Now !
Attention Students Parent(s)
Get a federal Personal Identification Number (PIN)

• Password
• Access to Student Federal Aid (SFA) systems
• Electronic signature
• FAFSA on the Web
• Federal student parent loan promissory notes

Web Site www.pin.ed.gov
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Admissions

• Apply to the colleges of your choice including a
  safety net school.
• Dream schools
• Reality school
• Pay close attention to institution deadlines.
• You DO NOT need to be admitted before applying
  for aid. However, you may need to be admitted
  before an official financial aid award is made.

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Is College Worth the Investment?
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Educationally Sound Financial Decisions

• Advantage of a BA in Four Years
• Saves one year of costs (Currently 16k)
• Begin earning income 1 year sooner
• The Difference?
• Must average 15 credits per semester (instead of
  12) that count toward graduation
• Bargain No added charge for credits over 12 at
  UM

Now is the time to plan !
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Scholarships
Often Separate from Federal Application

• Types of Scholarships
• Merit
• Grades
• Test Scores
• Need
• Grades Test Scores
• Family Income

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Scholarships Where do I look?

• High School Counselors
• Colleges
• Academic
• Talent (athletics, fine arts)
• Organizations church, fraternal, etc.
• Businesses banks, credit unions, etc.
• Family contacts where you do business
• Booklet Funding Your Future

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Scholarship Searches

• Internet (examples)
• www.smartaboutcollege.org
• (MCIS) Montana Career Information System
• www.finaid.org
• Dont Pay for Scholarship Searches !
• Should be Free, Free, Free!

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• UM Scholarship Applications
• UM Presidential Scholarship (merit)
• Davidson Honors College Application
• or
• UM General Scholarship Program (merit, need)
• Deadline -- December 31, 2007 (Yes -- 2007!)
• Late applications are NOT considered
• Applications Web, High School Counselor,
  or call UM _at_
  1-800-462-8636 or 243-6266
• UM Departmental Scholarships
• Check with each school or department
• Merit, Need Skill (ex. athletic, music, drama)
• Deadlines vary

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The Basics of Financial Aid
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Needs Analysis(Defining Cost of Attendance)
Cost of Attendance (COA)
Expected Family Contribution (EFC)
Need
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Whats in the Cost of Attendance?

• Tuition fees
• Books supplies
• Room board
• Personal expenses, transportation, misc.
• Loan Fees
• Other special educational costs

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Total Average Costs for Full Time Attendance
Current Year 2007-08 Non-
In-State Resident Tuition/Fees
5,238
14,872 Books/Supplies 850
850 Room/Board 6,400
6,400 All other Living Exp.
3, 500 3,500 TOTALS
15,988 25,622
COT (2 yr. program)
Totals 13,934
19,246 Estimated range of increase is 3-10
per year
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Average 2007-08 Direct Costs UM-Missoula (On-Cam
pus Double Room Premium Meal Plan) In-State
Tuition/Fees
5,238 Room/Board 6,400
Total 11,638 Non-Resident Tuitio
n/Fees 14,872 Room/Board
6,400 Total 21,272 In the last ten
years Tuition/Fee increases have ranged from
3.8 to 13.7 per year Room/Board increases have
ranged from 0 to 8.9 per year
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Annual Tuition/Fee Only Costs for Montana
Students Attending These Schools
Western Undergraduate Exchange (WUE) not
considered
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Needs Analysis(Defining the EFC)
Cost of Attendance (COA)
Expected Family Contribution (EFC)
Need
Financial Aid Estimator (EFC etc.) www.finaid.org
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Expected Family Contribution (EFC)
What is it? The EFC is the official federal
figure (established through Congress) your family
is expected to contribute toward the students
total cost of school and living expenses for one
year.
How is it determined? The EFC is determined by
income and asset information of the student (
parents when dependent) as submitted on the FAFSA
application.
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EFC Sum of Four Calculations (Dependent Student)
Based on federal methodology, a percentage of the
students ( parents if dependent), income and
assets, after allowances, determine the Expected
Family Contribution.
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The Form
FAFSA ON THE WEB
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Why Is All This Information Needed? The Federal
Philosophy

• To the extent they are able, parents have the
  primary responsibility to pay for their dependent
  childrens education
• Students also have a responsibility to contribute
  to their educational costs
• Families should be evaluated in their present
  financial condition
• A familys ability to pay for educational costs
  must be evaluated in an equitable and consistent
  manner, recognizing that special circumstances
  can and do affect the ability to pay

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FAFSA on the WEB - Sample Worksheet

• Worksheet Only Do Not Mail!
• The order of questions may not appear logical.
• Once you are online, you may not be asked some
  questions based on earlier responses to the
  worksheet. FAFSA on the WEB will determine any
  questions to be skipped.
• The State deadlines may not be accurate for
  specific schools. Example The University of
  Montana priority deadline is February 15, 2008
• Paper version available but used by fewer than 5
  of filers.

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Income Tax InformationApplies to Student Parent
In order to meet the priority deadline of the
school you want to attend, use projected tax
information!
Better to file with good answers in February than
guessing in January. Better to estimate,
carefully, in February than file exactly in March!
You can update the information with FAFSA
on the web or with the
school after you file your taxes.
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FAFSA on the WEB - Sample
Page 1
Special Circumstances
Free Help !!
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Pages 2/3
Section 1 Student Information

• Name, Social Security Number, Birth date
• Critical for matches to federal databases
• U.S. Citizen or eligible non-citizen
• Marital Status as of today!
• State of legal resident for state aid
• Degree, Grade Level Enrollment Status
• Bachelors degree by July 1, 2009? (No?)
• Highest Educational Level for Dad and Mom?
• Possession or Selling Drugs (No?)
• Note Other obvious answers not included in
  worksheet

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Section 2 Student Dependency Status
Page 3

• Criteria to be Independent
• Born before Jan 1, 1985 (age 24)?
• Working on a graduate degree?
• Married (as of today)?
• Have children/dependents other than a spouse
  that you support more than 50?
• Parents deceased / orphan or ward of court?
• Active Duty or Veteran -- US Armed forces?
• See worksheet for explanations

An Answer of Yes to any question Independent
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Section 3 Parental Information
Page 4

• Who are FAFSA parents? (Follow the chart)
• Are parents mom and dad, stepparents
• Are Not parents grandparents, legal guardians,
  foster parents, divorced parent

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Determining Parent(s) for FAFSA
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Section 3 Parental Information
Pages 4/5

• Income Questions
• Federal Tax Form1040 1040A 1040EZ?
• Receive any Federal Benefits Programs?
• Number logic on the FAFSA
• No Cents
• Accurate to the nearest dollar Round up
• Use 2007 federal taxes actual line numbers
• AGI
• Earned Income (lines 7, 12, 18 on Form 1040)
• Taxes Paid (NOT withheld!)

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Section 3 Parental Information
Page 5

• Parents Household Size
• Tax exemptions do NOT need to equal household
  size
• Who? (Very Important to get this correct !)
• Yourself
• Each parent reported in Section 3
• All dependents receiving 50 or more
  help, or any dependent who would answer no to
  every question in Section 2
• Others receiving 50 or more support
• Number in College

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Page 8 -- Worksheets A, B, C
Page 8
Pages 6/7

• Find totals for A,B,C and transfer to FAFSA
  Section 3 Parents -- Section 4 -Student
• Section A
• Primarily federal benefits EIC, TANF,
  Additional child tax credits, Social Security
• Section B
• Pre-tax benefits (Box 12 codes DEFGH or S)
• IRA deductions untaxed distributions
• Child support received
• Section C
• Education credits
• Child support paid

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Section 3 Parental Assets
Page 5

• Cash, Savings, Checking (as of today)
• Net Worth of Investments
• Includes assets such as
• Stocks, bonds, mutual funds, money markets, CDs
  
• Trust funds, UGMAs and IRS 529 plans
• Most real estate
• BUT Does NOT include
• Primary residence or farm
• Value of life insurance policies
• Value of annuities/retirement plans/pension funds

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Section 3 Parent Assets
Page 5

• Business and/or Investment Farms
• Report Net Worth of all Businesses
• Exception Family owned/controlled with
  fewer than 100 employees

For Assets Appraisals are not needed Accuracy to
the nearest 100 is OK
Refer to web site for further clarification
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Section 4 Student Finances
Pages 6/7

• Make sure to use student 2007 tax information
• Same basic questions as in Parent Finances
• Use FAFSA Worksheet (left side of page 8) to
  answer all non-taxed income for student
• Asset questions are the same as for parents Do
  not leave blank! Enter 0 if nothing
• Answer Veterans Benefit questions

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Section 4 Student Household
Page 6

• Independent Students Only
• Answered YES to a question in Section 2
• Reminder
• Must provide more than half of support of any
  children claimed in household

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Page 7
The University of Montana 002536
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Ready to go Online!

• Have Your
• PIN www.pin.ed.gov
• Completed On-line Worksheet
• Electronic 2-3 weeks (note paper 4-6 wks)
• File a completed FAFSA after January 1st, but
  before February 15th for best results at UM
• Note Other schools may have different deadlines
• Results by 4th week or contact
• Call 1-800-4-FedAid (1-800-433-3243) or your
  financial aid office

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Homepage -- FAFSA on the Web
Web Site www.fafsa.ed.gov
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Filing Verification Print Save
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Needs Analysis(Defining Need)
Cost of Attendance (COA)
Expected Family Contribution (EFC)
Need
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Need Varies Based on Cost
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Grants
Need-based Aid
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Grants The Free money(About 30 of UM aid
applicants)

• Federal Pell Grant
• Fed Academic Competitiveness Grant (Fr. So)
• Fed SMART Grant (Jr Sr)
• Federal Supplemental Educational Opportunity
  Grant (FSEOG)
• Montana Higher Education Grant (MTHEG)
• Baker Grant
• MPACT Grant
• Acce Grant
• MGSLP Grant

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Employment
Need-based and Non-Need-based Aid
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Employment Aid (Self Help Money)

• Work Study Employment (need-based)
• Most employment on-campus
• Limited to 19 hours per week
• Community Service America Reads
• May be a federal or state award
• Earnings excluded on FAFSA
• Recorded on Worksheet C
• Non-Work Study is Regular Employment
• Not Financial Aid !!
• Work Study limitations do not apply
• Earnings included on FAFSA

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Student Loans
Need-based and Non-Need-based Aid
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Student Loans Need Based

• Perkins (Limited)
• Repayment after 9 month grace
• Interest rate
• In-School 0 for student
• After grace period -- Fixed _at_ 5
• Subsidized Stafford / Direct
• May be discounted up to 3
• Repayment after 6 month grace
• Interest Rate
• In-School -- 0 for student
• After grace period Various fixed (6.8 3.4)

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Non-Need Loans

• Unsubsidized Stafford/Direct (Student)
• Interest charged immediately
• Same fees/terms as Subsidized Stafford
• Repayment after 6 months grace
• Interest rate
• In-school 6.8 after July 1, 2006
• After grace --- Fixed rate_at_ 6.8
• PLUS (Parent Loan for Undergraduates)
• Origination/Insurance fees up to 4
• Interest charged immediately
• Fixed interest rate 8.5
• Repayment begins soon after fully disbursed
  (usually February or March)

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Graduate PLUS Alternative Loans
Non-Need Loans

• Graduate PLUS
• Federal Loan
• 8.5 fixed
• For graduate/professional students
• Private/Alternative Loans
• DTC Direct to Consumer Loans
• LAST Resort !!
• Interest and terms vary
• Cannot be combined with federal student loans in
  a federal consolidation always a separate
  payment

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Everyone filing a valid FAFSA will be offered
student loans. (If dependent, Parent
PLUS) Subsidized (need) or Unsubsidized
(non-need) Class Level Amount Freshmen
3,500 Sophomore 4,500 Junior / Senior
5,500 Graduate 8,500 Independent
Students May have additional Unsubsidized
eligibility 4,000 (Fr/Soph)
5,000 (Jr/Sr) 12,000 Graduate
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How Much Aid Could I Be Eligible For?
Aid Eligibility Based on Total Cost of
Attendance

• PLUS borrower can borrow EFC amount Unmet Need
• (Can borrow less !!)

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INITIAL NOTIFICATON LETTER
An Estimate of Financial Aid Joseph
Montana SS 111-22-3333 COA 17,000
EFC 002466 Description of
Award Amount Accept Amt Alumni/License Sch.
750 ___________ Federal Pell Grant
1,600 ___________ Montana Grant
500 ___________ College Work Study
2,000 ___________ Federal Stafford Loan
3,500 ___________ Outside Scholarship
1,000 Total Student Aid 9,350 Parent
Loan (PLUS) 7,650 Total Aid 17,000
______________________________ (Note Maximum
PLUS amount Total COA minus All Other
Aid) (Remember COA includes personal costs --
Can borrow less !)
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Other Resources

• Health Human Services Programs
• Veterans Benefits
• Military Service Scholarship (ROTC)
• Bureau of Indian Affairs (BIA) Grants
• Vocational Rehabilitation
• Other ?

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Taxpayer Relief Act

• Hope Scholarship Tax Credit
• Lifetime Learning Tax Credit
• Student Loan Interest Deduction
• Education IRA
• Montana College Savings Trust
• All of the above provisions are located in IRS
  Publication 970

• http//www.irs.gov/publications/p970/index.html

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Action Steps forAutumn 2008 Enrollment

• Immediately
• Get your PIN
• As soon as possible
• Get Admitted
• After January 1 by February 15
• File a complete FAFSA
• After March 15
• Stay in touch with Financial Aid

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The Process FAFSA is only the first step !

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Verification of FAFSA

• What is Verification?
• Who is selected ? Random 30
• What do you do?
• Send Taxes and W-2s to school
• Complete Verification Worksheet for non-tax items
  supplied by school

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College Goal Sunday February 10, 2008
Registration at www.collegegoalmt.org

• 17 State Locations
• Western Montana Sites
• (All 100 400 pm)
• Missoula -- UM Gallagher Business Building
• Kalispell FVCC Campus
• Libby FVCC Lincoln County Campus
• Butte -- MT Tech Campus
• Pablo -- SKC Campus
• Browning BCC Campus

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• Thank you for your time and attention!

Your Montana Financial Aid Officers