Navigating Financial Aid James Hammar Assistant Director of

Navigating Financial Aid James Hammar Assistant Director of Admissions and Financial Aid

Agenda Application Tips Scholarship Search FAFSA Details Special Circumstances Your Questions

Application Tips Prioritize your applications 1. 2. 3. 4. 5. College applications FAFSA CSS Profile (if required) College scholarship applications External scholarship applications Deadlines are important and it is always best to apply early!

Reasons to apply early 1. Less waiting for decisions 2. Additional scholarships. You could miss out. 3. Chances of admission may decrease 4. Aid offered by colleges may decrease 5. More time for the rest of process

Do your research 1. Visit each campus 2. Meet with a financial aid counselor 3. Think about what really concerns you and ask us – we’re on your side!! 4. Use a net price calculator to get more out of your visit

Net Price Calculators ØEstimates your EFC based on a few questions ØEstimates aid from the school and government sources ØCompares cost and aid to provide “net price” ØUseful planning tool but estimates are only as good as data provided

Other tips for … Juniors Seniors Finish applications and BRAG! 1. Sign up for ACT/SAT 2. Visit each campus 2. 3. Make college and scholarships part of every conversation you have with an adult Don’t wait to request recommendations 3. Start scholarship search now. Use seniors as a resource. 1.

Outside Scholarships ØMost scholarships for high school seniors have deadlines in Jan. – April ØStart locally, think globally ØNever pay for services that “guarantee” they will find you scholarships ØSet realistic goals and stick to them

Online Scholarship Searches Ø Only use free searches Ø Answer optional questions – this will increase number/quality of results Ø Set up a free email account (i. e. Gmail, Hotmail, etc. ) to use exclusively for scholarship searches Ø Never provide a social security number or credit card number

Why every student should file a FAFSA 1. Required to participate in federal loan programs 2. Colleges simply cannot provide a student with a complete picture of the aid available to help pay educational expenses without a FAFSA. 3. Colleges focus resources on students who file the FAFSA because these students are perceived to be actively seeking assistance. 4. Every school may use this information differently With financial aid, the only thing that is guaranteed is that you will get nothing if you don’t apply!

Free Application for Federal Student Aid ØUniversal application Ø 99% of students file online $0 ØStudents must re-apply each year ØDetermines Expected Family Contribution (EFC) ØRegardless of EFC, all students are awarded financial aid 25

Other FAFSA Tips 1. Both the student and one parent need an FSA ID to sign the FAFSA electronically. 2. Create your own FSA ID using your email 3. Use the IRS Data Retrieval Tool and do not make changes to the imported information 4. Make it a family affair

fafsa. gov Create your FSA ID Fill Out Your FAFSA Look up federal school codes Print a Paper FAFSA

Reporting Assets on FAFSA Unprotected Assets • Investment real estate • Trust funds • Money market funds Protected Assets • Your home • Retirement Accounts • Value of Life Insurance • Mutual funds • Certificates of deposit • Stocks and bonds • 529 College savings plans • Business value (if you employ 100+ people) Only “unprotected” assets must be reported on the FAFSA

FAFSA Required Tax Data Even The 2018 -19 if you FAFSA filing should the FAFSA be the filed after using 2017 Parents andare students must use priortax yourinformation 2016 tax(2016) data is available prior tax year data to file the FAFSA 2016 FEDERAL TAXES 2017 FEDERAL TAXES 2018 -19 FAFSA

Early FAFSA This means… Everyone can file earlier. 2018 -19 FAFSA will be available Oct. 1, 2017 Everyone should be able to file with actual tax data. No more estimates! And most everyone can and should use IRS data retrieval to import tax data.

Special Circumstances Yes. Initially, youusing must 2016 use prior-prior Do I have to file tax data? year, but schools may adjust FAFSA data in certain situations. 2017 2016 FEDERAL TAXES 2018 -19 FAFSA 2018 INCOME ESTIMATE

Special Circumstances 1. File the FAFSA using prior-prior year tax data 2. Contact each school to talk about their process 3. Provide documentation to each Financial Aid Office. Schools are allowed to adjust FAFSA results for: Ø Changes in household size (divorce, death, etc. ) Ø Medical, dental or dependent care expenses not paid or reimbursed by insurance Ø Private education expenses (K-12) Ø Reductions in income or unemployment of a parent

Cost of Attendance (Variable) EFC (Constant) School 1 EFC School 2 EFC School 3 EFC $0 Financial $10, 000 $20, 000 Need $30, 000 $40, 000 $50, 000 How is financial need determined?

CSS / Financial Aid Profile Used to Award Institutional Aid Only • Required by some private colleges and scholarships. • The Profile collects and uses information about assets, liabilities, and income not reported on the FAFSA, such as non-custodial parent income. • The CSS Profile is available as of Oct. 1 each year. • Cost is $25 for first school report and $16 for additional reports. Students still must complete FAFSA to be considered for federal/state need-based aid

Types of Financial Aid ØScholarships (merit-based) ØGrants (need-based) ØWork-study (must be earned) ØStudent loans (must be repaid) ØEducation Tax Credits Talk to your tax professional or go to irs. gov and search “tax benefits for education”.

Reading Award Letters

Other Resources www. studentaid. ed. gov www. ohe. state. mn. us bigfuture. collegeboard. org Federal Student Aid @FAFSA