Slide #1.

National Association of Student Financial Aid Administrators What You Need to Know About Financial Aid © NASFAA 2008
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Slide #2.

Topics We Will Discuss Tonight • • • • • • What is financial aid Cost of attendance (COA) Expected Family Contribution (EFC) What is financial need Categories, types, and sources of financial aid Free Application for Federal Student Aid (FAFSA) • Special circumstances © NASFAA 2008 Slide 2
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Slide #3.

What is Financial Aid? Financial aid is funds provided to students and families to help pay for postsecondary educational expenses © NASFAA 2008 Slide 3
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Slide #4.

What is Cost of Attendance (COA) • Direct costs • Indirect costs • Direct and indirect costs combined into cost of attendance • Varies widely from college to college © NASFAA 2008 Slide 4
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Slide #5.

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 © NASFAA 2008 Slide 5
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Slide #6.

What is Financial Need Cost of Attendance © NASFAA 2008 – Expected Family Contribution = Financial Need Slide 6
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Slide #7.

Categories of Financial Aid • Need-based • Non need-based © NASFAA 2008 Slide 7
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Slide #8.

Types of Financial Aid • Scholarships • Grants • Loans • Employment © NASFAA 2008 Slide 8
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Slide #9.

Scholarships • Money that does not have to be paid back • Awarded on the basis of merit, skill, or unique characteristic © NASFAA 2008 Slide 9
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Slide #10.

Grants • Money that does not have to be paid back • Usually awarded on the basis of financial need © NASFAA 2008 Slide 10
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Slide #11.

Loans • Money students and parents borrow to help pay college expenses • Repayment usually begins after education is finished • Only borrow what is really needed • Look at loans as an investment in the future © NASFAA 2008 Slide 11
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Slide #12.

Employment • Allows student to earn money to help pay educational costs – A paycheck – Non-monetary compensation, such as room and board © NASFAA 2008 Slide 12
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Slide #13.

Sources of Financial Aid • Federal government • States • Private sources • Civic organizations and churches • Employers © NASFAA 2008 Slide 13
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Slide #14.

Federal Government • Largest source of financial aid • Aid awarded primarily on the basis of financial need • Must apply every year using the Free Application for Federal Student Aid (FAFSA) © NASFAA 2008 Slide 14
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Slide #15.

Common Federal Aid Programs • Federal Pell Grant • Academic Competitiveness Grant • National Science and Mathematics Access to Retain Talent Grant • Teacher Education Assistance for College and Higher Education Grant © NASFAA 2008 • Federal Supplemental Educational Opportunity Grant • Federal Perkins Loan • Federal Work-Study • Stafford Loans • PLUS Loans Slide 15
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Slide #16.

States • Residency requirements • Award aid on the basis of both merit and need • Use information from the FAFSA • Deadlines vary by state; check paper FAFSA or FAFSA on the Web site © NASFAA 2008 Slide 16
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Slide #17.

Private Sources • Foundations, businesses, charitable organizations • Deadlines and application procedures vary widely • Begin researching private aid sources early © NASFAA 2008 Slide 17
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Civic Organizations and Churches • Research what is available in community • To what organizations and churches does student and family belong? • Application process usually spring of senior year • Small scholarships add up! © NASFAA 2008 Slide 18
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Slide #19.

Employers • Companies may have scholarships available to the children of employees • Companies may have educational benefits for their employees © NASFAA 2008 Slide 19
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Slide #20.

Free Application for Federal Student Aid (FAFSA) • A standard form that collects demographic and financial information about the student and family • May be filed electronically or using paper form – Available in English and Spanish © NASFAA 2008 Slide 20
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Slide #21.

FAFSA • Information used to calculate the Expected Family Contribution or EFC – The amount of money a student and his or her family may reasonably be expected to contribute towards the cost of the student’s education for an academic year • Colleges use EFC to award financial aid © NASFAA 2008 Slide 21
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Slide #22.

FAFSA • May be filed at any time during an academic year, but no earlier than the January 1st prior to the academic year for which the student requests aid • For the 2009-10 academic year, the FAFSA may be filed beginning January 1, 2009 • Colleges may set FAFSA filing deadlines © NASFAA 2008 Slide 22
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Slide #23.

FAFSA on the Web • Web site: www.fafsa.ed.gov • 2009-10 FAFSA on the Web available on January 1, 2009 • FAFSA on the Web Worksheet: – Used as “pre-application” worksheet – Questions follow order of FAFSA on the Web © NASFAA 2008 Slide 23
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Slide #24.

FAFSA on the Web Good reasons to file electronically: • Built-in edits to prevent costly errors • Skip-logic allows student and/or parent to skip unnecessary questions • More timely submission of original application and any necessary corrections • More detailed instructions and “help” for common questions • Ability to check application status on-line • Simplified application process in the future © NASFAA 2008 Slide 24
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Slide #25.

Student Financial Aid Personal Identification Number (SFA PIN) • Web site: www.pin.ed.gov • Sign FAFSA electronically • Can request PIN before January 1, 2009 • Not required, but speeds processing • May be used by students and parents throughout aid process, including subsequent school years © NASFAA 2008 Slide 25
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Slide #26.

FAFSA on the Web Worksheet 2009-10 FAFSA on the Web Worksheet— 8-page booklet containing: • Instructions • 93 questions in 5 sections © NASFAA 2008 Slide 26
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Slide #27.

FOTW Worksheet: Section 1 General student information: • Name • Social Security Number • Driver’s license number © NASFAA 2008 Slide 27
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Slide #28.

FOTW Worksheet: Section 1 General student information: • Citizenship • Marital status • State and date of legal residence • Selective Service registration status © NASFAA 2008 Slide 28
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Slide #29.

FOTW Worksheet: Section 1 General student information: • Drug conviction status • Parents’ educational background • Plans for the 2009-10 school year • Self-help preferences © NASFAA 2008 Slide 29
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Slide #30.

FOTW Worksheet: Section 2 Student’s dependency status: • If all “No” responses, student is dependent • If “Yes” to any question, student is independent © NASFAA 2008 Slide 30
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Slide #31.

FOTW Worksheet: Section 3 Data for parents of dependent students: • Parents’ marital status • Date of parents’ marital status • E-mail address (optional) © NASFAA 2008 Slide 31
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Slide #32.

FOTW Worksheet: Section 3 Data for parents of dependent students: • Social Security Number • Last name • Date of birth © NASFAA 2008 Slide 32
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Slide #33.

FOTW Worksheet: Section 3 Data for parents of dependent students: • State and date of legal residence © NASFAA 2008 Slide 33
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Slide #34.

FOTW Worksheet” Section 3 Financial data for parents of dependent students: • Tax filing status and return type • If parents filed or will file a 1040, were they eligible to file a 1040A or 1040EZ? © NASFAA 2008 Slide 34
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Slide #35.

FOTW Worksheet: Section 3 Data for parents of dependent students: • Did anyone in the parents’ household receive benefits from any of the federal programs listed? • Dislocated worker status © NASFAA 2008 Slide 35
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Slide #36.

FOTW Worksheet: Section 3 Financial data for parents of dependent students: • Adjusted Gross Income (AGI) for 2008 • Income earned from work • Income tax paid for 2008 © NASFAA 2008 Slide 36
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Slide #37.

FOTW Worksheet: Section 3 Data for parents of dependent students: • Exemptions claimed for 2008 • Household size • Number in college © NASFAA 2008 Slide 37
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Slide #38.

FOTW Worksheet: Section 3 Financial data for parents of dependent students: •Complete the tables on page 8 (left-hand side) – Additional financial data – Untaxed income © NASFAA 2008 Slide 38
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Slide #39.

FOTW Worksheet: Section 3 Asset data for parents of dependent students: • Cash, savings, and checking • Net worth of investments • Net worth of business and investment farms © NASFAA 2008 Slide 39
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Slide #40.

FOTW Worksheet: Section 4 Financial data for student (and spouse): • Tax filing status and return type • If student (and spouse) filed or will file a 1040, was he or she eligible to file a 1040A or 1040EZ? © NASFAA 2008 Slide 40
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Slide #41.

FOTW Worksheet: Section 4 Financial data for student (and spouse): • Adjusted gross income (AGI) for 2008 • Income earned from work © NASFAA 2008 Slide 41
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Slide #42.

FOTW Worksheet: Section 4 Receipt of veterans educational benefits • Type of benefits that will be received © NASFAA 2008 Slide 42
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Slide #43.

FOTW Worksheet: Section 4 Financial data for the independent student (and spouse): •Household size •Number in college •Receipt of benefits from one of the federal programs listed •Dislocated worker status © NASFAA 2008 Slide 43
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Slide #44.

FOTW Worksheet: Section 4 Data about the student (and spouse): • Income tax paid for 2008 • Exemptions for 2008 © NASFAA 2008 Slide 44
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Slide #45.

FOTW Worksheet: Section 4 Financial data for student (and spouse): • Complete the worksheets on page 8 (righthand side) – Additional financial information – Untaxed income © NASFAA 2008 Slide 45
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Slide #46.

FOTW Worksheet: Section 4 Asset information for the student (and spouse): • Cash, savings, and checking • Net worth of investments • Net worth of business and investment farms © NASFAA 2008 Slide 46
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Slide #47.

FOTW Worksheet: Section 5 List up to 10 colleges to receive FAFSA data: • Federal School Code for each college • Housing plans for each college © NASFAA 2008 Slide 47
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Slide #48.

Signatures • Required – Student – One parent (dependent students) • Format – Electronic using PIN – Signature page – Paper FAFSA © NASFAA 2008 Slide 48
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Slide #49.

Frequent FAFSA Errors • • • • • • • • 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 © NASFAA 2008 Slide 49
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Slide #50.

FAFSA Processing Results Central Processing System (CPS) notifies student of FAFSA processing results by: • Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s e-mail address was not provided • SAR Acknowledgement if filed FAFSA on the Web and student’s e-mail address was not provided © NASFAA 2008 Slide 50
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Slide #51.

FAFSA Processing Results • CPS notifies student of FAFSA processing results by: – E-mail notification containing a direct link to student’s on-line SAR if student’s e-mail was provided on paper or electronic FAFSA • Student with PIN may view SAR on-line at www.fafsa.ed.gov © NASFAA 2008 Slide 51
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Slide #52.

FAFSA Processing Results • Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA submitted • College reviews ISIR – May request additional documentation, such as copies of federal tax returns © NASFAA 2008 Slide 52
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Slide #53.

Student Aid Report • Review data for accuracy • Update estimated information when actual figures are available © NASFAA 2008 Slide 53
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Slide #54.

Making Corrections If necessary, corrections to FAFSA data may be made by: • Using FAFSA on the Web (www.fafsa.ed.gov) if student has a PIN; • Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or • Submitting documentation to college’s financial aid office © NASFAA 2008 Slide 54
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Slide #55.

Special Circumstances • 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 © NASFAA 2008 Slide 55
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Slide #56.

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 © NASFAA 2008 Slide 56
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Slide #57.

© NASFAA 2008 Slide 57
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