Demystifying The World of Financial Aid Alicia Keaton

Demystifying The World of Financial Aid Alicia Keaton Director University of Central Florida FABSAA Annual Conference 2018 Daytona Beach, Florida

Agenda • Role of the Financial Aid Administrator • Financial Aid: The Basics • Applying for Financial Aid/FAFSA Overview & Updates • Types of Financial Aid • Financial Aid Awards • Financial Aid Tools & Resources

The Role of the Financial Aid Administrator Financial aid administrators can assist you with informing and explaining information on the entire financial aid application process, including areas such as: • Explaining various types of financial aid • Identifying application deadlines • Completing financial aid forms and supporting documentation • Explaining smart borrowing decisions • Making financial aid decisions • Hosting your financial aid night

Financial Aid Basics For students to be considered for financial aid — money given or loaned to students to help them pay for college — they have to apply. Applying for financial aid is like applying for admission to college, but they’re not the same thing. The financial aid application process usually has its own forms, deadlines and requirements — and students don’t have to wait to be admitted to a college before they apply for financial aid.

Cost of Attendance (COA) An estimated amount it will cost to go a specific college—usually stated as a yearly figure. COA includes tuition and fees; room and board (or a housing and food allowance); and allowances for books, supplies, transportation, loan fees, and dependent care. The estimated cost of attendance also includes miscellaneous and personal expenses. These expenses may include an allowance for personal items, eating out once in a while, and other such expenses.

Cost of Attendance (COA) Cost of attendance Direct costs typically charged by the college: Tuition and fees + Cost of living in dorms + Cost of meal plans on campus Indirect costs that may not be charged by the college: Allowance for Books and supplies Allowance for Personal expenses and + a few meals out + Allowance for Transportation

2017 -2018 Cost of Attendance COA UCF UF FSU FIU Valencia State College Seminole State College Daytona State College Broward College Tuition & Fees $5, 954 $6, 380 $5, 656 $6, 168 $2, 473 $3, 630 $2, 508 $1, 944 Books/ Supplies $1, 152 $1, 210 $1, 000 $1, 540 $1, 266 $1, 500 $1, 234 Room & Board $9, 764 $9, 890 $10, 304 $10, 846 $9, 366 $6, 670 $2, 128 $2, 581 Transportation $1, 866 $1, 090 $1, 508 $2, 064 $2, 854 Combined with miscellaneous $700 $2, 549 Miscellaneous $3, 104 $2, 660 $3, 256 $2, 456 $474 $5, 300 $1, 624 $2, 090 Total $21, 840 $21, 230 $21, 724 $23, 074 $16, 492 $17, 100 $8, 160 $11, 207

Expected Family Contribution (EFC) The Expected Family Contribution (EFC) is the number that is used to determine students’ eligibility for federal student financial aid. Many states also use the EFC to determine eligibility for state aid; institutions may also use the EFC to determine eligibility for institutional aid. This number is calculated from the results of the financial information the student and family provide in the Free Application for Federal Student Aid (FAFSA). The student's EFC is reported on the Student Aid Report (SAR).

Financial Need Total Cost of Attendance Expected Family Contribution (EFC)* Financial Need *Note: This is not the same as the student’s bill or the amount a family will actually pay for the student to attend college

Financial Aid Award Notifications • A financial aid award notification is a communication from a college that states the type and amount of financial aid the student is eligible to receive if the students enrolls at the institution.

FAFSA Overview The Free Application for Federal Student Aid (FAFSA) is an online application that collects demographic and financial information about the student and family. The FAFSA is normally filed electronically and is available online in both English and Spanish (a paper application in either English or Spanish is available upon request). https: //fafsa. gov

FAFSA Updates The FAFSA may be filed at any time during an academic year, but no earlier than October 1 prior to the academic year for which the student requests aid. Students and/or parents completing the FAFSA must use prior year income and tax information. For the 2017 -2018 academic year, the FAFSA may be filed beginning October 1, 2016 with the last date to file being June 30, 2018. For the 2017 -2018 academic year, use the 2015 income and tax information. While most colleges set FAFSA filing deadlines, do not forget to check for state filing deadlines.

Dependent Students for 2017 – 2018 Answer “No” to all the questions Born before 1/1/1994 Children or other dependents Graduate or Professional Student

Dependent Students for 2017 – 2018 Answer “No” to all the questions Any time since age 13 - Both parents deceased - Dependent or Ward of the Court Emancipated Minor Unaccompanied youth who are homeless or at risk of homelessness Has a legal guardian In foster care any time age 13 or older

FAFSA Updates Reporting Same-sex Marriage • Consistent with the Supreme Court decision holding Section 3 of the Defense of Marriage Act (DOMA) unconstitutional, same-sex couples (both the student and the student's parents) must report their marital status as married if they were legally married in a state or other jurisdiction (foreign country), without regard to where the couple resides or where the student will be attending school.

FAFSA Updates Parental Information Collection • FAFSA is collecting income and other information from a dependent student's legal parents regardless of the parents' marital status or gender, if those parents live together. • FAFSA now provides a new option for dependent applicants to describe their parents' marital status as "unmarried and both parents living together. " • FAFSA uses terms like "Parent 1 (father/mother/stepparent)" and "Parent 2 (father/mother/stepparent)" instead of gender-specific terms like "mother" and "father. ”

IRS Data Retrieval Tool • Website: www. pin. ed. gov • Sign FAFSA electronically • May be used by students and at least one parent of a dependent student throughout aid process, including subsequent school years. • Parent PIN is separate from student PIN

IRS Data Retrieval Tool The IRS Data Retrieval Tool allows students and parents to access their IRS tax information to transfer it directly into their FAFSA. If the student and family are eligible to use the IRS Data Retrieval Tool, it is highly recommended that they use the tool for several reasons: Ø It’s the easiest way for students and families to provide their tax data. Ø It’s the best way of ensuring that the FAFSA has accurate tax information. For security purposes, all data retrieved from the IRS Data Retrieval Tool will be encrypted. Only the Federal Processor and School(s) selected on the FAFSA will be able to view the data. Be aware, students may still need to provide a copy of the student’s and/or parents’ IRS information to the college.

Types of Aid • Financial consists of: • Grants are funds that are based on financial need • Scholarships are awarded based upon merit, academic or athletic achievement, and can include a financial need component • Work Study are funds that allows a student to obtain employment while enrolled and earn the amount of the award offered • Loans are funds that require repayment

Federal Student Aid Programs • Federal Pell Grant • Iraq and Afghanistan Service Grant (IASG) • Teacher Education Assistance for College and Higher Education (TEACH) Grant • Federal Supplemental Educational Opportunity Grant (FSEOG) • Federal Work-Study (FWS) • Subsidized and Unsubsidized Federal Direct Student Loans (Direct Loans) • Federal PLUS Loans

Federal Stafford Loans • Federal Direct Student Loans • Subsidized Loan are loans for undergraduate students with financial need. • Does not accrue interest while you are in school at least half-time or during grace and deferment periods. • Begin repayment 6 months after graduation. • Unsubsidized Loan are loans for both undergraduate and graduate students that are not based on financial need. • Interest is charged during in-school, deferment, and grace periods. • Begin repayment 6 months after graduation.

Federal Parent PLUS Loan • The Federal Parent PLUS Loan is a credit based federal loan for parents (biological, adoptive, or in some cases stepparent) of eligible dependent students. • Interest that accrues on the loan is not subsidized by the federal government. • Repayment begins 60 days after the 2 nd disbursement

State of Florida Bright Futures Scholarship Benacquisto Scholarship Program (National Merit) Florida Student Assistance Grant First Generation Matching Grant Mary Mc. Leod Bethune Scholarship Rosewood Family Scholarships for Children and Spouse of Deceased or Disabled Veteran’s

Institutional Aid (Need-Based) • Awarded on the basis of merit and/or need • Use information from the FAFSA and/or institutional applications • Deadlines and eligibility requirements vary by institution Institutional Grants and Scholarships UCF Grant, UCF Scholars, Orion, Pegasus Scholarship UF Douglas Turner Grant, Florida Opportunity Scholarship FSU Grant, Differential FSU Grant Valencia Advantage Scholarship, Bridges to Success Scholarship

Sample Financial Aid Package • John Knight receives the following financial aid awards for the 2017 -18 academic year: Type of Aid Amount of Aid Federal Pell Grant $4, 000 Institutional Grants $2, 000 Florida Bright Futures Medallion Scholarship $2, 156 Florida Student Assistance Grant $1, 500 Private Scholarships $6, 000 Federal Direct Subsidized Loan $3, 500 Federal Direct Unsubsidized Loan $2, 000 Total Financial Aid Package $21, 156 • Total Grants & Scholarships = $15, 565 • Total Loans = $5, 500

Financial Aid & Cost of Attendance Valencia College University of Central Florida International University Total Grants and Scholarships Awarded $15, 656. 00 Estimated Tuition and Fees - $2, 473. 00 $5, 954. 00 $6, 168. 00 Room & Board - $9, 366. 00 - $9, 764. 00 - $10, 846. 00 Books and Supplies - $ 1, 266 - $1, 152. 00 - $1, 540. 00 Any Remaining Grants & Scholarship Funding? Yes $2, 551. 00 No ($1, 214) No ($2, 898) Federal Subsidized Loan $3, 500 - $3, 500 Federal Unsubsidized Loan $2, 000 - $2, 000 Tuition & Fees, Room & Board, along with Books & Supplies are considered direct costs. Especially for students living on-campus. This example does not include indirect costs such as transportation and miscellaneous.

Professional Judgment refers to the authority of a college’s financial aid administrator to make adjustments to the information on the FAFSA and/or to override a student's dependency status. Colleges normally have specific procedures for a professional judgment request, so school counselors should advise students to contact the financial aid office directly. Examples of situations when an financial aid officer might exercise their professional judgment authority include loss of job, death or disability, medical expenses, etc. The decision of the financial aid administrator is final. There is no appeal. By law, neither the college’s president nor the US Department of Education can override the financial aid administrator's decision.

Searching for Scholarships • • Research what is available in your community Application process can begin as early as fall of senior year Companies may have scholarships available to the children of employees Small scholarships add up! • • www. fastweb. com www. scholarships. com www. collegeboard. com www. finaid. com

Scholarship Tips 1. Keep all documents, recommendation letters, resume’ versions, essays, etc. , in one place 2. Create an Excel or Word document that lists all of your accomplishments, awards, community service, leadership experience, and extra-curricular activities. 3. Create calendar reminders for deadlines 4. Set up a separate email account strictly for scholarship applications 5. Set aside a specific time that you will always use strictly for applying for scholarships 6. Apply for a different types of scholarships • Tuition, housing, books and supplies, other educational expenses, study abroad

Financial Aid Missteps 1. Not including your social security number on your admissions application. 2. Missing FAFSA and/or scholarship application deadlines. 3. Submitting incorrect or incomplete documentation. 4. Submitting documents to the incorrect office. 5. Waiting too close to the start of the term to begin or complete the financial aid process. 6. Ignore email notices and/or phone calls (i. e. procrastination or pray it goes away) 7. Not asking questions 8. Not knowing the renewal requirements of your scholarships 9. Not maintaining a copy of items submitted to any office (i. e. admissions, financial aid, housing) 10. Not taking responsibility for learning or understanding the process.