Welcome to Financial Aid Night Brenda Thomas Ronald

Welcome to Financial Aid Night! Brenda Thomas Ronald Dillard Financial Aid Counselors Office of Financial Aid Western Michigan University

Tonight’s Agenda § Types of Financial Aid §The FAFSA application process § After the FAFSA § Resources and Help

Types of Financial Aid § Gift Aid - Scholarships - Grants § Self-Help Aid - Employment/Work-Study - Student Loans

Types of Financial Aid: Gift Aid § Scholarships Awarded on the basis of merit, skill, or unique characteristics by: - Community Organizations - Private Donors - College/Departments - Employers § Grants Usually awarded on the basis of financial need - Institutional Grants - Federal Grants (Pell, SEOG) - State Grants

Types of Financial Aid: Self-Help § Employment Funds to cover ongoing college related expenses - Federal Work-Study: aid in the form of a paycheck or nonmonetary compensation, such as room and board - Off Campus employment § Loans Money students and parents borrow to help pay college expenses - Repayment usually begins after education is finished - Only borrow what is really needed - View as an investment

Student Loans At a Glance Name of Federal Loan Maximum Amount (Freshmen) Direct Subsidized $3, 500 Direct Unsubsidized $5, 500 (max for both Direct loans combined) Parent PLUS Cost of Attendance minus other aid Interest Rate (2015 -2016) Who covers the interest while student is in college? Repayment/ Grace Period 4. 29% Government 6 months 4. 29% Student 6 months 6. 84% Parent Repayment typically begins after disbursement Standard repayment of student loans is 10 years, though various repayment plans exist

Michigan Financial Aid Programs § Michigan Competitive Scholarship § Michigan Tuition Grant (private schools only) § Tuition Incentive Program (TIP) FAFSA is Required The State of Michigan’s FAFSA Application deadline is March 1, 2016 www. Michigan. gov/osg osg@michigan. gov 1 -888 -4 -GRANTS (888 -447 -2687)

What’s a FAFSA? § Free Application for Federal Student Aid § Federal form that collects demographic and financial information about the student and family § Calculates Expected Family Contribution (EFC) § Colleges use EFC to award financial aid § Most colleges set FAFSA filing deadlines § 2016 -17 academic year FAFSA may be filed beginning January 1, 2016 Online and paper versions available at fafsa. gov

FAFSA on the Web Available at: fafsa. gov § “Skip logic” so you only answer questions that apply to you § Can save and return to application § Never pay to complete the FAFSA You will complete the FAFSA every year

Information needed for the FAFSA - Social security number/alien registration number - Dates: Birth, death, marriage and/or divorce - 2015 tax information - Current bank account balances - Amount of untaxed income - Value of assets Typically, student AND parent information is required

Who must provide parent information? § Biological or Legally adoptive parents ONLY § DO NOT report information for: § Grandparents § Legal Guardians § Foster Parents § Aunts/Uncles § Older Siblings § Applies to DEPENDENT students

Who is the parent on the FAFSA? § BOTH PARENTS § Parents are both living and married to each other § Parents are living together but NOT married § ONE PARENT ONLY § Parent is widowed or single § Parents have divorced or separated – report info of parent who student lived with the most in the past 12 month § If exactly equal time: who provides most support? § NOT who claims student on taxes or who will result in highest eligibility § PARENT AND STEP-PARENT § If Parent has remarried as of today, answer the questions about both that parent and the person to whom the parent is married If a student is dependent parental information is REQUIRED, even if parent will not continue to financially support the student

Completing the FAFSA: 7 Steps 1) Student Demographics 2) School Selection 3) Dependency Status 4) Parent Demographics 5) Financial information (parent and student) 6) Sign and Submit 7) Confirmation The US Department of Education estimates that it will take first time applicants 55 minutes to complete the FAFSA on the Web

Getting Started Create an FSA ID https: //fsaid. ed. gov - For both the student and parent Create a Save Key fafsa. gov - Allows student to save the application to complete later If a parent previously completed a FAFSA for themselves or an older child, the PIN used to sign the online FAFSA is “linkable” to a new FSA ID

1: Student Demographics § Enter STUDENT’S information § Help and Hints available on each page § Application will save automatically, but remember to press save periodically Male students will be asked if they have registered with Selective Service

2: School Selection § List any college the student might attend § Student may add up to 10 colleges online § Each college has a 6 -digit school code § Application will also ask about housing plans

3: Dependency Status FAFSA asks questions to determine dependency status for federal student aid § If “Yes” to any question, student is independent and parent information IS NOT required § If all “No” responses, student is dependent and parent information IS required Dependency on the FAFSA may be different then IRS dependency

4: Parent Demographics § Only required if student is dependent § Marital status § Household size § Number in college

5: Financial Information - Income § Income information can be found on: § Federal Tax Return § W 2 s § Use the IRS Data Retrieval Tool (DRT) to import tax information directly into the FAFSA § Some will be unable to use IRS DRT Examples include: • No SSN was entered • Filed an amended or foreign tax returns • Student or parent married but filed separately • Filed your taxes within previous 2 weeks 2015 Tax information is required, but if taxes have not yet been filed 2014 data can be used as an estimate and corrected later

5: Financial Information – IRS DRT Use is OPTIONAL but, if you do not use the IRS Data Retrieval Tool, you may be required to supply a tax transcript from the IRS

5: Financial Information - Assets Do NOT Include: § § § Home you live in Farm you live on Retirement savings Life insurance Businesses with fewer than 100 employees DO Include: § Investment property (net value) § Investments: Stocks, bonds, CDs, mutual funds, etc § 529 College Savings plans (Parent Asset) § UGMA/UTMA (trusts – Student Asset) REMEMBER: Report the value of your assets AS OF THE DAY you filed the FAFSA and Report parent and student assets separately

6: Sign and Submit § Both student and one parent must sign § Sign electronically with FSA ID for fastest processing § May also print a signature page to mail in § Application MUST BE SIGNED before it will be processed FSA ID will be used by students and parents throughout aid process, including subsequent school years

7: Confirmation Page will list: § Information about the college(s) you listed on the FAFSA § Estimated Expected Family Contribution (EFC) § Estimated eligibility for Federal Aid programs Parents completing the FAFSA for multiple students can use a link to transfer parental data!

After the FAFSA: Student Aid Report § The Student Aid Report (SAR) summarizes the data provided on the FAFSA § No e-mail address on FAFSA = paper SAR acknowledgement (1 -3 weeks) § Email address provided on FAFSA = email notification containing a direct link to the SAR online (3 -14 days) § Displays the official EFC § Students may view SAR online at www. fafsa. gov and logging in with FSA ID Some scholarships may require a copy of the SAR

After the FAFSA: Making Corrections If necessary, corrections to FAFSA data may be made by: § Using FAFSA on the Web (www. fafsa. gov) § Updating paper SAR § Submitting documentation to college’s financial aid office You may correct anything you entered incorrectly the day the form was completed but DO NOT change information (such as asset information) that was correct when you submitted the form

After the FAFSA: Special Circumstances FAFSA is a “snapshot” of a family’s financial situation § Special circumstances can be considered Be sure to contact the college’s Financial Aid Office if: § Change in employment status § Unusual medical expenses not covered by insurance § Change in parent marital status § Unusual dependent care expenses § Student can not obtain parental information If special circumstance exists: § Contact the college to explain situation § Inquire about providing a written explanation and documentation to the financial aid office at each college § Colleges will review and request additional information if necessary Decisions are final and cannot be appealed to U. S. Department of Education

After the FAFSA: Completing the file Financial Aid Office may request § Verification worksheets with additional documentation § Tax transcript from the IRS § Other items to prove the information on the FAFSA is accurate Failure to provide requested information may delay the awarding or payment of your aid!

Financial Aid Award: Determining Need Cost of Attendance • Tuition and fees • Room and board • Books, personal and travel expenses - Expected Family Contribution = Financial Need Student’s financial need will vary from college to college, depending on the Cost of Attendance

Financial Aid Award: Award Letters § Colleges will mail/email an Award Letter to the student, stating offered financial aid § Please read important information enclosed with Award Letter § Instructions for accepting and receiving awards § How awards will be disbursed Remember to report scholarships to your college to be factored into your award package

Financial Aid Award: Awards [Example based on 2015 -16 figures] Cost of Attendance WMU(Fall & Spring) Tuition and fees Room and Board Books and supplies, Personal, Travel Estimated Financial Contribution (subtract) Total Financial Need Potential Awards Pell SEOG WS Subsidized Loan Unsubsidized Loan Total Estimated Award Remaining Need Total Cost of Attendance Total Estimated Award (subtracted) Remaining Need FA Award with $0 EFC FA Award with $3600 FA Award with $7000 EFC $11, 535 $9, 144 $3, 281 $0 $23, 960 ($3, 600) $20, 360 ($7, 000) $16, 960 $5, 730 $2, 000 $3, 500 $2, 000 $15, 230 $2, 000 $3, 500 $2, 000 $9, 700 $0 $3500 $2000 $5, 500 $23, 960 $15, 230 $8, 730 $9, 700 $14, 260 $ 5, 500 $18, 460

Financial Aid Award: Filling a Gap § Financial aid award at a college may not cover the entire cost of attendance, leaving a “gap” § Pay a “Gap” by considering § Outside scholarships § Use of student/parent savings § Payment plan with the college § Federal PLUS loans § Private loans

Resources and Help: Net Price Calculator Tool that allows students to estimate how much they will pay (approximately) at a college – School supplies info on cost and general gift aid for students in the family’s income range – College Cost minus gift aid equals “Net Price” – Families can then compare net price for the school(s) they are considering All colleges are required to have a “Net Price Calculator” on their website

Resources and Help: MI College Goal Sunday www. micollegegoal. org FREE February Event Here is what you need to do: 1. Save the date. Sign up for a reminder! 2. Get your FAFSA ID 3. Print out a list of what you need to bring with you to the event 4. Find your location – 33 statewide sites! Kalamazoo site: Western Michigan University Sunday, February 14, 2016 Come join us for FAFSA Completion assistance! You don’t have to plan on attending the host site’s college – help is available for ALL students

Resources and Help: Online Tools www. studentaid. gov/fafsa/next-steps www. finaid. org www. ed. gov www. facebook. com/federalstudentaid Don’t pay to complete the FAFSA or apply for scholarships – free assistance is available!

Questions? Contact your Financial Aid Office We want to help you with the process!