Financing Education Beyond High School

1
Financing Education Beyond High School

• Claudia A. Wenzel
• John Carroll University
• Director of Financial Assistance

2
Topics We Will Discuss

• The Basics of Understanding the process
  including
• Expected Family Contribution (EFC)
• Formula for financial need
• The application process
• Free Application for Federal Student Aid(FAFSA)
• Special circumstances
• Common misconceptions of Aid
• Tips for Success

3
Funding a College Education

• 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

4
Definition of Need

• Cost of attendance (COA)
• Expected family contribution(EFC)
• Need

5
COST OF ATTENDANCE

• FIXED
• TUITION FEES
• ROOM
• BOARD

• VARIABLES
• BOOKS SUPPLIES
• TRANSPORTATION
• PERSONAL EXPENSES

6
What is the Expected Family Contribution (EFC)?

• Amount family can reasonably be expected to
  contribute
• Stays the same regardless of college
• Two components
• Parent contribution
• Student contribution
• Calculated using data from a federal application
  form and a federal formula
• EFC at most institutions is used as indication
  of federal and state eligibility rather then the
  amount to be paid by the family

7
Calculating the EFC for a Dependant Student

• Student Parent Income
• Taxes Paid/Income Protection Allowance
• Family Asset Equity (excludes home)
• Family Size
• Number of family members in college
• Age of older parent

8
Need Varies Based on Cost
9
Application Process

• Submit FAFSA prior to schools deadline
• Most aid awarded on first-come, first-served
  basis
• To ensure maximum consideration for federal,
  state, and institutional aid, check information
  from each school to determine
• Required application materials
• CSS PROFILE
• Application deadlines

10
Free Application For Student Aid

• WWW. FAFSA.GOV

• Website www.fafsa.gov
• 2015-2016 FAFSA on the Web available on January
  1, 2015. May be filed at any time during an
  academic year, but no earlier than the January
  1st
• A standard form that collects demographic and
  financial information about the student and
  family
• Information used to calculate the expected family
  contribution (EFC)

11
Student Financial Aid Personal Identification
Number (SFA PIN)

• Web site www.pin.ed.gov
• Sign FAFSA electronically
• Can request PIN before January 1, 2015
• May be used by students and parents throughout
  aid process, including subsequent school years

12
General Student Information

• Social Security Number
• Citizenship status
• Marital status
• Drug convictions
• Selective Service registration
• Level of parents school completion

13
Student Dependency Status

• FAFSA asks questions to determine dependency
  status for federal student aid (not IRS)
  purposes
• If all No responses, student is dependent
• If Yes to any question, student is independent

14
Information About Parents ofDependent Students

• Tax, income, and other financial information
• Dislocated worker status
• Receipt of federal means-tested benefits
• Assets
• Untaxed income

15
Information About Student (and Spouse)

• Tax, income, and other financial information
• Dislocated worker status
• Receipt of federal means-tested benefits
• Assets
• Untaxed income

16
Additional Information

• College and housing information
• Marital status of parents
• FAFSA preparer information
• Certification of Statement of Educational Purpose

17
Signatures

• Required
• Student
• One parent (dependent students)
• Format for submitting signatures
• Electronic using PIN
• Signature page
• Paper FAFSA

18
Frequent FAFSA Errors

• FAFSA.COM
• Social Security Numbers
• Divorced/remarried parental information
• Income earned by parents/stepparents
• Untaxed income
• U.S. income taxes paid
• Household size
• Number of household members in college
• Real estate and investment net worth

19
Confirmation Page

• Redesigned for clarity. Includes -
• Confirmation Number
• Data Release Number (DRN)
• EFC estimate
• Pell Grant and Direct Loan estimates
• Option for parents to transfer info to an
  application for a sibling
• Graduation, Transfer, and Retention rates for
  each college on the FAFSA
• Average Net Price at each institution

20
FAFSA Processing Results

• Central Processing System (CPS) notifies student
  of FAFSA processing results by
• E-mail notification containing a direct link to
  students on-line SAR if students e-mail was
  provided on paper or electronic FAFSA
• Student with PIN may view SAR on-line at
  www.fafsa.gov
• Institutional Student Information Record (ISIR)
  sent to colleges listed on FAFSA approximately 10
  to 14 days after FAFSA submitted

21
IRS Data Retrieval Tool

• While completing FOTW, applicant may submit
  real-time request to IRS for tax data
• IRS will authenticate taxpayers identity
• If match found, IRS sends real-time results to
  applicant in new browser window
• Applicant chooses whether or not to transfer data
  to FOTW
• Available early February 2015 for 2015-2016
  processing cycle
• Participation is voluntary
• Reduces documents requested by financial aid
  office

22
IRS Data Retrieval Tool

• Some will be unable to use IRS DRT
• Examples include
• Filed an amended tax return
• No SSN was entered
• Student or parent married but filed separately

23
Special Circumstances

• Change in employment status
• Medical expenses not covered by insurance
• Change in parent marital status
• Unusual dependent care expenses
• Student cannot obtain parent information

• Cannot report on FAFSA
• Send explanation to financial aid office at each
  college
• College will review special circumstances
• Request additional documentation
• Decisions are final and cannot be appealed to
  U.S. Department of Education
• Verify that FAFSA is accurate

24
Role of the Financial Aid Office

• Determines aid eligibility using federal formula
• Packages aid depending on availability of funds
• Sends award notification including
• Award amount for each program for which student
  is eligible
• Disbursement methods and time frames
• Terms and conditions of each award
• Review of special circumstances

25
Types of Financial Aid

• Scholarships
• Grants
• Loans
• Employment

Gift Aid
Self-Help Aid
26
Sources of Financial Aid

• Federal
• Pell Grant
• Supplemental Educational Opportunity Grant
  (SEOG)
• TEACH Grant
• Perkins Loan
• Federal Direct Loan (Subsidized and
  Unsubsidized)
• Federal Direct Parent Loan for Undergraduate
  Students
• Federal College Work-Study
• State
• Ohio College Opportunity Grant
• Ohio War Orphan Scholarship
• Institutional Aid
• Merit and Gift Awards
• Outside Scholarships
• Prviate Loans

27
Loan Programs

• Perkins Loan5/9 months grace
• Federal Direct Stafford Loan-4.66/6 months grace
• Subsidized vs. Unsubsidized
• Federal Direct PLUS Loan-7.21
• Private Loans
• Home Equity

28
Private Scholarship Search

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

29
Avoid Being Scammed

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

30
Where Do I Go From Here?

• Obtain and review admissions and financial aid
  Web sites and materials for each school to which
  you are applying
• Meet all application deadlines
• Complete FAFSA and other application materials,
  such as College Scholarship Services PROFILE
  application, if required by school or state
  agency
• Submit all requested follow-up documents
• Investigate other sources of aid

31
Common Errors and Myths

• Families need to hire a financial aid consultant
  to navigate the process
• FAFSA.com
• You will be responsible for whatever is
  calculated as your family contribution
• Reporting assets
• Parental data in situations of divorce and
  remarriage
• You can negotiate a financial aid award
• by pitting colleges against each other

32
TIPS FOR SUCCESS

• Start early and ask questions
• Net Price Calculator (NPC)
• Know the importance of deadlines
• Read everything
• Dont assume you dont qualify
• Dont rule out any college because of cost-
  utilize the Net Price Calculator
• Involve the student

33
COLLEGE GOAL SUNDAY
February 8, 2015 2 P.M
Find locations and register at
www.ohiocollegegoalsunday.org
34
Good Luck!