2019-2020 FINANCIAL AID NIGHT - East Penn School District
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2019-2020 FINANCIAL AID NIGHT
Presenter Kim Adamson Assistant Director Student Financial Services Cedar Crest College
Agenda • Workshop Overview • Application Process & Prior Prior Year • Federal Student Aid Programs • State Programs • Financial Need & Award Packaging • Financial Literacy & Online Resources
The Application Process
FAFSA ® The FAFSA® (Free Application for Federal Student Aid) is a federal form used to determine student eligibility for the following: • Federal Programs Pell Grants, campus-based aid and student loans • State Programs Pennsylvania State Grant, State Work-Study and other special programs • School Programs Need-based grants and scholarships
Prior Prior Year (PPY)
Students will be able to file a 2019-2020 FAFSA as early as
October 1, 2018
The FAFSA will collect income information from the earlier tax
year – Prior Prior Year (PPY) income
Families will file the 2019-2020 FAFSA using 2017 tax
information.
Federal Student Aid ID (FSA ID) • Allows students and parents to sign the FAFSA electronically • Student needs an FSA ID • One parent of a dependent student needs an FSA ID • Student and parent must have a unique email address • Only the owner of the FSA ID should create the account
Where Can I Use My FSA ID?
• Electronically sign • Electronically sign a
your FAFSA Master Promissory Note
• Import tax information • Complete a PLUS Loan
from the IRS request
• Access renewal FAFSA • Estimate student loan
• Make online corrections to repayments using the
FAFSA Repayment Estimator
• View or print a copy of the • Apply for Income – Driven
SAR Repayment plan and loan
• View history of federal consolidation
student aid received
• Sign agreement to serve
• Complete entrance or exit
for TEACH Grant
counseling
When to Complete the FAFSA® • Students are able to apply beginning October 1 of their senior year. • Deadlines vary GREATLY from school to school; many are earlier than the May 1 deadline for the PA State Grant. • Students must determine the earliest applicable deadline. • Students do not have to be accepted for admission. • Students may list up to 10 schools on the initial online FAFSA and add or delete schools later. Postsecondary schools will not see other schools listed, just their own. • Families can file estimated income information and update it later using the IRS Data Retrieval Tool (DRT).
Documents Needed
Applicants may need the following items to file the FAFSA:
• Social Security Number
• Driver’s license (student only; this information is optional)
• Federal income tax returns(1040, 1040A or
1040EZ) and W-2 forms from all employers
• Current bank statements (checking &
savings)
• Current business & farm records
• Records of any stocks, bonds & other investments,
including 529 accounts
• Additional untaxed income tax records may be needed such as:
Veterans non-education benefits, child support paid/received and workers’ compensation.
• Alien registration or permanent resident card (if not a U.S. citizen)Income Questions Tips
IRS Data Retrieval Tool (DRT) The IRS DRT allows students and parents to access IRS tax return information needed to complete the FAFSA. Students and parents may transfer the data directly into their FAFSA. It will be encrypted to discourage families from altering the figures. • IRS data is available for families to use: » After 2 weeks of electronically filing federal tax return » After 8 weeks of filing a paper federal tax return
IRS Screenshot of IRS Data Retrieval Retrieval Tool
Dependency Status Independent Students are: • 24 or older on January 1 of award year • Veteran (includes active duty personnel) • Working on graduate degree • Emancipated minor or in a legal guardianship • Orphan, in foster care or ward of the court at any time when student was age 13 or older • Have legal dependents other than spouse • Student deemed homeless and unaccompanied by proper authority
Who’s my parent when I fill out the
FAFSA? Visit studentaid.ed.gov/sa/resources
These people are not your parents unless
they have legally adopted you.Common FAFSA Completion Errors • Incorrect Social Security Number – if the student completed the FAFSA with the wrong one, they need to begin a new one with the correct one. • Mixed student and parent answers • Use taxes paid from tax return, not taxes withheld W-2 • Incorrect answers on dependency questions • On the FAFSA, a preparer is someone you pay to submit the form • Negative asset value should be reported as “0” • Students should complete the SGF from the link on the confirmation page of the FAFSA • Submitting FAFSA without signing with the FSA ID
Other Ways to Sign the FAFSA
• FAFSA On the Web (FOTW)
» If a student or parent chooses not to sign with their FSA ID, they should
print, sign and mail the signature page, as instructed.
• Paper FAFSA or PDF
» The document must be signed and mailed (a copy should be kept).
• Unable to get a parent signature – school
counselor or FAO may sign in place of the
parent(s)
» Parent(s) are determined physically or mentally incapable of signing
» Parents are not currently in the U.S. and cannot be contacted by normal
means
» Current address of the parent(s) is unknownStudent Aid Report (SAR)
• Applicants will receive a SAR after the FAFSA
is processed:
» If a completed online or paper application
and a valid email address is provided,
student receives an email notification to
retrieve
» Without a valid email address,
notification is received by regular mailExpected Family Contribution (EFC)
• The results of the federal formula, theoretical
amount a family can afford to pay toward
student’s college education.
• Remains the same no matter
which school the student attends
• Primarily income-driven
• Major factors for dependent student:
» Parental income & assets
» Student income & assets
» Family size and number of
family members in collegeVerification • The most common items are AGI, taxes paid, untaxed income, household size, and the number in college. • Families that are not using the IRS DRT have a greater chance of being selected for verification. • If selected, an IRS tax return transcript may be required. A copy of an IRS Federal Tax return will not be acceptable. • A transcript can be obtained by mail using IRS Form 4506-t (Request for Transcript of Tax Return) or via telephone.
FAFSA Resources • Federal Contact Assistance on FAFSA.gov » FAFSA on the Web live help » By Phone - 800.433.3243 » Email Best source of help with the FAFSA is your first choice school’s Financial Aid Office.
Federal Student Aid Programs
Federal Pell Grant • Maximum award for 2019-2020 is $5486 • Lifetime eligibility is now limited to 12 full-time semesters or the equivalent part time semesters • Students can monitor eligibility through NSLDS at www.nslds.ed.gov.
Campus-Based Programs Two Campus-based programs • Federal Supplemental Educational Opportunity Grant (FSEOG) » $4,000 maximum; need-based • Federal Work-Study (FWS) » Earnings do not count as income on subsequent FAFSAs. » Working is better then borrowing; statistics show students who work have a higher GPA. » Work Study is not deducted from a student’s bill
Federal Student Loans
• Direct Loans – Subsidized and Unsubsidized
» Beginning July 1, 2013, first-time borrowers are limited to the
150% rule, which limits the amount of time a student
qualifies for the interest subsidy.
» No credit check or co-signer requirement
• Direct Graduate Loans
» $20,500 maximum per year
• Direct Plus Loans
» Cost minus other aidUndergraduate Loan Limits
• Undergraduate Loan Limits for Dependent Students:
Dependent students Base student loan Additional
(excluding students amount (subsidized unsubsidized student
whose parents cannot unsubsidized) loan amount
borrow PLUS
Freshmen $3,500 $2,000
Sophomores $4,500 $2,000
Juniors, Seniors $5,500 $2,000
• Aggregate for Dependent student borrowing limit:
$31,000.Independent Loan Limits • Independent students & dependent students whose parents cannot borrow a PLUS Loan: Independent student Base student loan Additional AND students whose amount (subsidized unsubsidized student parents cannot borrow unsubsidized) loan amounts PLUS Freshmen $3,500 $6,000 Sophomores $4,500 $6,000 Juniors, Seniors $5,500 $7,000 Graduate or $0 $20,500 Professional • Independent aggregate borrowing limit is $57,500 for undergraduates. • Aggregate borrowing limit is $138,500 for graduates.
Interest Rates Interest Rates for 2018-2019: • Direct Undergraduate (subsidized and unsubsidized) 5.05% • Direct Graduate (unsubsidized) 7.60% • PLUS Loans (parents and graduate students) 6.60%
Repayment Options Many options are available - studentaid.ed.gov • Standard • Graduated • Extended • Income-Based (IBR) • Pay-As-You-Earn (PAYE) • Income-Contingent (ICR) • Income-Sensitive
Direct PLUS Loan • Loans available to biological or adoptive parents of dependent students • Credit check required, however, no debt-to-income check. If credit check passes, loan is approved. • No annual or aggregate limit to the amount a parent may borrow. The limiting factor is cost minus financial aid received equals the amount that can be borrowed. • Repayment begins once loan is fully disbursed. • Parents have the option to defer payments. • If a parent is declined for credit reason, student receives additional unsub funds
StudentLoans.gov
State Programs
State Grant Eligibility Requirements • Domicile – 12 months before completing FAFSA • High School Graduation • Academic Progress • Enrollment • Maximum Number of Grants • Program of Study • Undergraduate Enrollment • Satisfactory Character • Not in Loan Default
PHEAA State Grant Form (SGF)
In addition to the FAFSA, first-time applicants must
also complete the SGF.
• Three ways to access SGF:
» The link from FAFSA confirmation page – they made it larger this
year!!!!
» Through Account Access at PHEAA.org
(24-48 hours after completing the FAFSA)
» Complete a paper Status Notice if the student did not use the
link on the confirmation page or provide a valid email address
There is an electronic SGF this year for student’s who signed their
FAFSA with their FSA ID number and used the link!SGF Through Account Access • Create a student account in Account Access.
Financial Need & Award Packaging
What is FINANCIAL NEED?
Expected Family Contribution
Cost of Attendance (COA)
(EFC)
COA – EFC = Financial NeedCost of Attendance • Cost of Attendance (COA) includes the following: • Tuition and fees • Room and board • Books and supplies • Transportation expenses • Miscellaneous personal expenses
Financial Aid Award Letter
•Presented by the school
and typically includes:
» Cost of Attendance (COA)
» Types and amounts of
financial aid offered
» Conditions that are placed
on the awards
» Steps the student must take
to accept the package
» Student’s rights and responsibilities
» Renewal, revision and
appeal processes
» Policy on Satisfactory Academic
ProgressReviewing the Financial Aid Package • How much of the financial aid is gift aid (scholarships & grants), and how much is not? • Which awards are based on need, and which are based on merit? • Are there any conditions on the gift aid; in particular, is there a GPA requirement? • Can the student expect their awards to change from year to year? • Will institutional awards increase as tuition increases? • Will free money convert to borrowed money as borrowing capacity increases? • How many years can the funds be received?
. . . (cont’d) Reviewing the Financial Aid
Package
• What happens to their award package if the student changes their
major?
• How many hours per week must the student work to earn their work-
study award?
• What is the hiring process at the school for the work-study award?
• How much is the family expected to borrow?
• How will outside scholarships affect the award package?
• If loans are listed in the award, which amounts are subsidized or
unsubsidized?Scholarship Tips
• Start looking for Scholarships now
• Do not pay to apply for scholarships, scholarships are free
• Applying for the smaller scholarships, sometimes have bigger rewards
• There are many types of scholarships, not only based on academics
• Scholarship Search Engines to use;
Fastweb.com
Scholarships.com
bigfuture.collegeboard.org/scholarship-searchFinancial Literacy & Online Resources
Helpful websites
• FAFSA.gov
• Studentloans.gov
• EducationPlanner.org
• PHEAA.org
• Collegecost.ed.gov
• MySmartBorrowing.org
• FastWeb.com
• Studentaid.gov
• YouCanDealWithIt.com
• MyFedLoan.orgQuestions
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