Financial Aid 2013-2014
Financial Aid Night Presentation
Brought to you with cooperation from ISFAA
Presented by: Kelly McGuire, Trine University
Director of Financial Aid
Items to Discuss
What is financial aid?
What is the Cost of Attendance?
What is the EFC and how is financial need calculated?
What sources does financial aid come from?
How to apply for financial aid, including FAFSA & how to
I have completed the FAFSA – what happens next?
Closing and Questions
Financial aid is funds
provided to students
and their families to
assist them in paying
What is Cost of Attendance (COA)?
Direct costs (pay directly to the school)
Tuition & Fees
Room & Board
Indirect costs (costs associated with attending school
but not necessarily paid to the school)
Books & Supplies
Miscellaneous personal expenses
Off Campus housing
Direct and indirect costs are combined into the total
cost of attendance
Vary widely from college to college
What is the Expected Family Contribution (EFC)?
Calculated using FAFSA or FAFSA4Caster data and a
federal formula. Main components are:
# in college
Stays the same regardless of college choice
Colleges use EFC as an index of your family’s financial
strength to award financial aid
How is financial need
Financial Need = COA-EFC
College A College B
COA $46,246 COA $21,174
EFC - 4,500 EFC - 4,500
Need = $41,746
Need = $16,674
COA - Variable
EFC - Constant
Types of Financial Aid
Sources of Financial Aid
Financial aid comes from a variety of sources.
Common Federal Aid Programs
Grants Self - Help
Federal Pell Grant Federal Perkins Loan
Teacher Education Federal Work-Study
Assistance for College and Direct Stafford Loans
Higher Education (TEACH Parent PLUS Loans
The Big Three
Maximum Award Amounts for 2012-13
— State of Indiana Grant
— Federal Pell Grant
— Federal Supplemental
Total = $16,606
A need-based employment program
that provides on- and off-campus
jobs to students.
When evaluating loan options, consider the following:
Source Subsidized Options
Start by knowing a your rights and responsibilities.
U. S. Department of Education
Federal Loan Programs, 2012-13
Type Rate Grace
Subsidized 5% 9
Perkins Fixed Months
Subsidized 3.4% 6
Stafford* * Fixed Months
(2012-2013) Unsubsidized 6.8% 6
Credit-based 7.9% Within first
PLUS fixed 60 days
*Note: Stafford Loans (unsubsidized) for Graduate students have a fixed interest rate of
6.8% through 2013.
* *FAFSA and Program Application(s) are Required
You may be eligible for aid, but...
You must apply to find
Everyone will be eligible
for some type of
Every family should fill
out a FAFSA even if
they chose to decline
some of the aid they
Apply it is FREE!
How to Apply for
Easy as 1-2-3
How to Apply
To be considered for student aid, a student must complete all forms required by a college.
Note: Communicate with each college to inquire about steps to a complete
application and their deadlines.
Free Application for Federal Student Aid
A standard form that collects family’s demographic
and financial information used to calculate the
student’s EFC (available in English and Spanish)
How to apply:
FAFSA on the web at www.fafsa.gov
It’s FREE … Free Application for Federal Student
Dependent vs. Independent Students
At least 24 years old by Dec. 31st of award year;
Graduate or professional student;
Has children or dependents (in which the student provides over 50%
of their support);
Veteran of the U.S. Armed forces or currently serving on active duty
At age 13 or older, both parents deceased, in foster care or a
ward/dependent of the court;
Emancipated minor (determined by court in state of legal residence)
In legal guardianship (determined by a court in state of legal
Why complete the FAFSA?
* Federal Student Aid uses the data on your FAFSA to calculate an
Expected Family Contribution (EFC). The EFC is an indicator of
your family’s financial strength to pay for education after high
* The EFC is not the amount of money that your family must
provide. Rather, you should think of the EFC as an index that
colleges use to determine how much financial aid (grants, loans, or
* Your application results are transmitted to the school(s) listed on
your FAFSA, and the school(s) uses the EFC amount to determine
the amount of financial aid that you are eligible to receive. Many
states and schools also use the FAFSA data to award aid from their
When do I need to file the 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 2013-14 academic year, the FAFSA may be
filed beginning January 1, 2013
Needs to be completed on an annual basis
State Aid Filing Deadline is March 10th, 2013
Colleges may set FAFSA filing deadlines that are
different than the State Filing Deadline
To complete the FAFSA
What information is needed?
o Social Security Number. Be sure that it is correct!
o Records of income, such as income earned from work and business, child support
paid or received and any other untaxed income. If available, refer to the W-2
Forms and the Federal Income Tax Return IRS 1040, 1040A or 1040EZ.
o Information about assets, such as savings, certificates of deposit, stock options,
bonds, 529 plans and other college savings programs; and investment real estate,
business and farm.
o Driver’s license number, if the student has one.
o Alien Registration Number, if not a U.S. citizen.
Personal Identification Number
A PIN, along with other identifiers, gives Internet access to information on the Federal Student
• Serves as an electronic signature and
provides access to personal records PIN Checklist
• Go to www.pin.ed.gov oSocial Security Number
Option 1: Create a four-digit PIN
Option 2: Have the site create PIN oFirst Name
• PIN is conditional until relevant
information is verified with the Social oDate of Birth
Security Administration (1-3 days) oStreet Address
• PIN will not expire at the end of the year
oe-Mail address (optional)
n Web site: www.pin.ed.gov
n Sign FAFSA electronically
n Can request PIN before
January 1, 2013
n Not required, but speeds
n May be used by students and parents throughout aid process,
including subsequent school years
Who is considered
FAFSA Tips a parent?
Parents must provide information on FAFSA
Grandparents, foster parents, and legal guardians are not
If parents are both living and married to each other – both
parents provide information
If parent is single – that parent provides information
If single parent has remarried, both parent and step-parent
provide information (regardless of any prenuptial
Who is considered
FAFSA Tips a parent?
If parents are divorced or legally separated - identify
parent in the following order:
Parent you have lived with more over the past 12
Parent who provided more financial support over the
past 12 months.
Parent who provided more financial support during the
most recent year you received financial support.
Redesigned FAFSA Homepage
§ Simplified options
§ Updated graphics
§ An updateable
§ Access to FAFSA4caster
§ Access to FAFSA PDF
and paper FAFSA
Customized “My FAFSA”
§Initial FAFSA Entry
§Renewal Application Entry
§Continuing a Saved FAFSA
§Viewing Transaction Hist0ry
“My FAFSA” page – New Student
ü Dynamic messaging
guides the applicant
through all phases
of the application
ü Application Status
ü PIN Status
ü Help and Hints now have
question labels and question
numbers for easier reference.
ü Formatting on date fields,
telephone number, and
ü The system automatically
saves the application at the
end of each step.
ü “Clear All Data” allows an
applicant delete their data
from the system anytime prior
ü The IRS Data Retrieval
continues in 2013-14
beginning February 3, 2013.
ü Also available in Corrections
ü Electronically filed tax
return information will be
available from the IRS in 1-2
weeks, data from paper tax
returns will be available in 4-
IRS Data Retrieval
ü Once the applicant has
authenticated, tax data
will be presented and the
applicant will have the
option to “Transfer” the
tax information to the
ü Transferred data will have
a notation - “Transferred
from the IRS”
Sign and Submit
will appear if
that option is
ü A student and
parent can enter
their PIN and click
“Sign” and the
system will retain
the signature. This
allows parents and
students to sign
View FAFSA Summary
ü The View FAFSA Summary button takes
the student to a summary of their data.
FAFSA Summary Report
Redesigned for clarity. Includes -
üData Release Number (DRN)
üPell Grant and Direct Loan estimates
üOption for parents to transfer info to
an application for a sibling
üRates for each college on the FAFSA
One parent (dependent students)
Electronic using PIN
Frequent FAFSA Errors
Parent and student social security numbers
Divorce/remarried parent information
Income earned by parents/stepparents
Household size & number in college
Real estate and investment net worth
Not using real name as it appears on SS Card
Cannot report on FAFSA
Contact the Financial Aid Office at each school to explain
your specific situation
College will review special circumstances
May have a specific form
May request additional documentation
Change in employment status
Excessively high medical expenses not covered by
Change in parental marital status
Expenses related to a students disability
Death of a parent
One time income exclusion
Unusually high dependant child care costs associated
with a disability
Ways to Finance College
Types of Programs
Financial Aid Programs
529 Savings & Prepaid
Employer Tuition Benefits
Tuition Payment Plans
Know your options…
What Happens Next?
I submitted my FAFSA on time and now what
Financial Aid Awards
The financial aid administrator at the college will package all
available aid and send an award offer for consideration.
Goal: To meet a student’s need.
• What is the total cost of • What is the Expected
attendance? Family Contribution?
• What is a student’s financial • What types of financial
aid eligibility? aid are included?
• Was financial need met? • What is the out-of-pocket cost?
Financial Aid Award Example
Cost of Education - Family Contribution = Need
$26,000 $8,000 $18,000
College Scholarship $6,000
SSACI Tuition Grant $2,900
College Grant $3,300
Stafford Subsidized Loan $3,500
Stafford Unsubsidized Loan $2,000
Work Study $2,000
Total Aid $19,700
The Financial Aid Process In Review
Director of Financial Aid