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					Financing Education Beyond
        High School

        2010 - 2011

      Cynthia Davidson, M.Ed.
     Assistant Director/Financial Aid
Rutgers, The State University of New Jersey
            Campus at Camden
            Armitage Hall, B-44
            311 N. Fifth Street
       Camden, New Jersey 08102

             (856) 225-6039

 Complete your FAFSA before established deadlines.
 Be sure your social security number is correct.
 Dollar amounts should be rounded off to the nearest whole dollar.
 For FAFSA on the Web applicants, both student and parent of
  dependent student must secure a “PIN” which will serve as your
  signature when applying each year and to make corrections.
 Keep copies of all documents.
 Remember to respond to all requests for additional information to the
  appropriate agencies.
 Maintain Satisfactory Academic Progress

Rutgers   University Office of Financial Aid
      1-732-932-7057    (New Brunswick)
      1-973-353-5151    (Newark)
      1-856-225-6039    (Camden)

   U.S. Department of Education
    1-800-4FED AID

   NJ Higher Education Student Assistance
      1-800-792-8670                            4
8 Rutgers University Home Page    8 Rutgers Office of Financial Aid    

8 FAFSA on the Web                8 PIN Application or Update             
8 N.J. Higher Education Student   8 Financial Aid Information
   Assistance Authority        

8 Internal Revenue Service                                                 5
            Avoid Being Scammed
  To check legitimacy of scholarship search services or
  individuals, for information about financial aid scams,
  and tips to avoid being scammed visit these Web
• U.S. Department of Education:
• Federal Trade Commission:
• Better Business Bureau:

       Private Scholarship Search
    Free Internet scholarship search engines:

• FinAid on the Web:
• College Board:
• FastWeb:
• Scholarship Resource Network Express:
• GoCollege: The Collegiate Websource:

      Private Scholarship Search
• Local library resources

• Local businesses and civic

• Parents’ employers


• Definition of financial aid
• Definition of financial need and how it is determined
• Descriptions of major federal, state, and university financial aid
• How to apply for financial aid, including the Free Application
  for Federal Student Aid (FAFSA), and how to avoid errors

           What is Financial Aid?
• Scholarships

• Grants

• Loans

• Employment

                Types of Aid

• Gift aid: Grants and
  scholarships (need-
  based or merit-based)

• Self-help aid: Loans and
  employment (need-
  based or non-need-

               Definition of Need

   Cost of attendance (COA)

– Expected family contribution (EFC)

= Need

               Cost of Attendance
• Tuition and fees
• Room and board
• Books, supplies, transportation, and miscellaneous
  personal expenses, including documented costs for a
  personal computer
• Study abroad costs
• Disability-related expenses

       Need Varies Based on Cost

 1                                   X

         2                                    Y

               3                                      Z

                         EFC                EFC

  Cost of          Expected Family        Need
Attendance          Contribution         (Variable)
  (Variable)          (Constant)

  GRANTS               WORK STUDY          LOANS


                            Subsidized Stafford     Unsubsidized Stafford
Academic Competitive
 Grant 1st & 2nd yr

     SMART                             PLUS (Parent Loan for
 Grant 3rd & 4th yr                     Undergraduate Students)

             Federal Pell Grants
• Awarded to eligible undergraduates pursuing first
  baccalaureate degree and certain students enrolled
  in post-baccalaureate teacher certification or
  licensing programs
• Portable
• Actual award amount based on COA, EFC, and
  enrollment status
• Maximum award for 2009-10 = $5,350

   Federal Supplemental Educational
     Opportunity Grants (FSEOG)

• Eligible students:
   – Undergraduates pursuing first baccalaureate or
     professional degree
   – Awarded first to students with “exceptional financial
     need” (i.e., students with lowest EFCs at that school)
   – Priority to Federal Pell Grant recipients

• Annual award amounts:
   –   $100 minimum
   –   $4,000 maximum
 Federal Work-Study (FWS) Earnings
• Eligible students: Undergraduate, graduate, and
  professional students
• Employment may be on or off campus
• Eligible employers:
   –   Schools
   –   Federal, state, or local public agencies
• Schools must use portion of FWS funds for
  community service employment activities
            Federal Perkins Loans
• Eligible students:
  –   Undergraduate, graduate, and professional
  – Priority to students who show “exceptional
    need,” as defined by school
• Loan amount varies
• Maximum annual loan amounts:
  – $4,000—undergraduate students

         Federal Perkins Loans
• Interest rate: 5%
• 9-month grace period
• Repayment period may be up
  to 10 years
• Deferment and cancellation
  provisions available

            Stafford Loans

• School determines loan eligibility
  and delivers loan proceeds to
• Fixed interest rate of 6.0 %

                   Stafford Loans
• Subsidized: Must demonstrate “need”
• Unsubsidized: Not based on “need”
• Base annual loan limits (combined subsidized
  and unsubsidized):
   –   $3,500 for 1st year undergraduates
   –   $4,500 for 2nd year undergraduates
   –   $5,500 for each remaining undergraduate year
   –   $2,000 additional Unsubsidized loan for all students

                Stafford Loans
• After July 1, 2010 all Stafford Loans will be
  Direct Loans (legislation pending)
• Repayment begins after 6-month grace
• Maximum repayment period between 10
  and 30 years depending on repayment plan
• Deferment and cancellation provisions

• Parent loan program for parents of dependent
  undergraduate students (PLUS)


• Other Private Loans

• Annual Alternative loan limit: COA minus other aid

         Grant                  Scholarships

     Tuition Aid Grant             Bloustein

                               NJ STARS I & II
Educational Opportunity Fund

Grants          Scholarships      Loans          Payment Plan

Institutional     Academic       Institutional       Institutional
 Assistance                     Loan Program            Tuition
    Grant                                           Payment Plan

             Application Process
• Submit FAFSA prior to school’s deadline
• Most aid awarded on “first-come, first-served”
• To ensure maximum consideration for federal,
  state, and institutional aid, check information
  from each school to determine:
   – Required application materials
   – Application deadlines

          ERRORS can be COSTLY!
Errors on the FAFSA or
supplemental forms may
DELAY application processing
and result in the LOSS of
financial aid funds.
Read the instructions and
complete all forms carefully!

             Frequent FAFSA Errors
•   Parent and student Social Security Numbers
•   Divorced/remarried parental information
•   Income earned by parents/stepparents
•   Untaxed income
•   U.S. income taxes paid
• Household size
• Number of household members in college
• Real estate and investment net worth

             FAFSA on the Web

• Web site:
• 2010-11 FAFSA on the Web available on January 1,
• FAFSA on the Web Worksheet:
   – Used as “pre-application” worksheet
   – Questions follow order of FAFSA on the Web

              FAFSA on the Web
Updates on Filing Electronically:
• Built-in edits to prevent costly errors
• Skip-logic allows student and/or parent to skip
  unnecessary questions
• More timely submission of original application and any
  necessary corrections
• More detailed instructions and “help” for common
• Ability to check application status on-line
• Simplified renewal application process

    Student Financial Aid (SFA) PIN
• Web site:
• Sign FAFSA electronically
• Can request PIN before
  January 1, 2010
• Not required, but speeds
• May be used by students
  and parents throughout aid
  process, including
  subsequent school years

Application Processing Statistics
     Total Filers through Week 25

                         • 7.08% increase from
                           2007-08 to 2008-09
                         • 20.12% increase from
                           2008-09 to 2009-10
                         • Paper applications >1%
                           of total applications
                           processed in 2009-10

              2010-11 Enhancements

• Students will receive more detailed information on
  their FOTW confirmation page and Student Aid Report
  – An estimate of the Pell Grant award amount
  – An indication of student loan eligibility
  – Links to College Navigator for detailed college information –
    programs offered, tuition rates, graduation rates, etc.
  – Also, students can now e-mail the confirmation page to their
    own personal email address

              2010-11 Enhancements

• Retention, graduation and transfer rates within FAFSA
  on the Web
   – When students use the school code lookup within FOTW to
     lists colleges on the form, they will be presented with each
     college’s reported retention, graduation and transfer rates
   – This information will also display on the FAFSA on the Web
     confirmation page

            2010-11 Enhancements

• Enhanced skip logic
   – Selective Service registration
      • Will only be offered to students who are male and younger than
   – Simplification for students 24 and older and for married
      • If the applicant is determined to be independent due to date of
        birth or marital status, only two dependency questions will be
        displayed (questions 53 and 54 – to help independent applicants
        accurately report household size)

                   2010-11 Enhancements

• Identifying Homeless Students
   – A new screening question will display asking applicants if they are
     homeless or at risk of being homeless
   – The three homeless determination questions will only be presented if
     student is 21 or younger and answers “Yes” to the homeless screening
   – Students who are 22 or 23 and answer “Yes” to the homeless screening
     question, and students who are 21 or younger but answer “No” to all three
     homeless determination questions, will be –
       • Taken down an alternate path to allow them to submit their FAFSA without
         parental data, and
       • Directed to follow-up with their financial aid office
             2010-11 Enhancements

• Identifying students for Unsubsidized Loan Only
   – An applicant who is determined to be dependent but
     whose parents refuse to provide parental data on the
     FAFSA and refuse to provide financial support will have
     the option to submit the FAFSA for an unsubsidized loan
   – FAFSA on the Web will present a path that allows the
     applicant to indicate that he or she will not provide
     parental data on the form and will allow the applicant to
     submit the FAFSA

                 The 2010 – 2011 FAFSA
• Expanded student marital status to four options to
  facilitate pending implementation of IRS data share
  process (Question 16)
• Removed veterans’ benefits questions because they are
  no longer required per HEOA
• Added text explaining that the value of military housing
  or a military housing allowance should not be included
  as untaxed income benefits (Question 45g and
  Question 93g)
• Added a question about earnings from work under a
  cooperative education program at an institution of
  higher education to be excluded from income
  (Question 44f and Question 92f)

             FAFSA on the Web

• Status indicators will guide applicants through web
  modules (e.g., student demographics, basic
  eligibility, dependency status)
• Student and parent sections of the application will
  be more clearly identified
• Dynamic question labels, help text and instructions
  based on applicant profile (e.g., marital status,
  responses to tax filing status, type of tax return
         Examples of New Web Flow Logic
• State of Legal Residence
  The applicant’s state of legal residence is usually the same as mailing address
  state. The state of legal residence and date of residency questions will be
  suppressed for those who confirm the addresses are the same and have been
  for at least 5 years

• Drug Convictions
  Will not be presented to applicants who indicate that they will be a first-time
  college student

• Additional Financial Information and Untaxed Income
  These questions will be presented in a much simplified “check box”
  format. Keywords will replace specific line references and applicants will
  be prompted to report amounts as needed
       IRS-FSA Interface Overview
• Federal Student Aid and the IRS are developing a
  collaborative solution that simplifies FAFSA
• The new process will allow FAFSA on the Web
  applicants to request and retrieve their income tax
  data from the IRS
• Once the data is retrieved it can be automatically
  transferred to FOTW

                 IRS Data Share

 Populate with IRS Data
 No taxpayer consent needed because data is not
  released to a third party
 While in FAFSA on the Web, applicant (tax filer)
  submits a real-time request to IRS.
 IRS sends real-time results to applicant (taxpayer)
  in new window.
 Applicant (tax filer) transfers data to FAFSA on the

How will this process work?

How will the IRS site be accessed?

How will applicants transfer data to FOTW?

     2010 -2011 FAFSA on the Web
A 4-page booklet containing:

• An introduction to the web application

• Approximately 45 questions in 4 sections

• student/parent demographic information and
  taxed/untaxed income information

       FOTW Worksheet: Section 1
General student information:

•   Name
•   Citizenship Status
•   Student Marital Status
•   Selective Service Information

    FOTW Worksheet: Section 1
         General student information:

• Drug Conviction questions
• Parents’ educational background

     FOTW Worksheet: Section 2
Student’s dependency status:

• If all “No” responses, student is dependent

• If “Yes” to any question, student is

     FOTW Worksheet: Section 3
Data for parents of dependent students:

• Parent names and social security #s

• Parent’s Employment Status

• Parents’ income tax information

     FOTW Worksheet: Section 3
Data for parents of dependent students:

• Did anyone in the parents’ household receive
  benefits from any of the federal programs

• Parents’ Tax Credits

• Parents’ Untaxed Income
Tax Benefits for Education

 •Hope Scholarship Tax Credit
 •Lifetime Learning Tax Credit
•Student Interest Loan Deduction
 •Tuition and Fees Deduction
•Employer Assistance Program

     FOTW Worksheet: Section 3
Asset data for parents of dependent students
  (this question may or may not be asked of
  parents completing the FOTW):

• Cash, savings, and checking

• Net worth of investments

• Net worth of business and investment farms
     FOTW Worksheet: Section 4
Financial data for student (and spouse):

• Tax Filing Status

• Student (and spouse’s) Income Tax

     FOTW Worksheet: Section 4
Data about the independent student (and
• Did a member of the student’s household
  receive benefits from any of the federal
  programs listed?
• Student (and Spouse) Tax Credits
• Student (and Spouse) Untaxed Information

     FOTW Worksheet: Section 4
Asset information for the student (and spouse),
if requested:

• Cash, savings, and checking

• Net worth of investments

• Net worth of business and investment farms

            Making Corrections
• If necessary, corrections to FAFSA data may be
  made by:
  – Using FAFSA on the Web ( if student
    has a PIN;
  – Updating paper SAR (SAR Information
    Acknowledgement cannot be used to make
    corrections); or
  – Submitting documentation to school’s financial aid

        Where Do I Go From Here?
• Obtain and review admissions and financial aid Web
  sites and materials for each school to which you are
• Meet all application deadlines
   – Complete FAFSA and other application materials,
      such as College Scholarship Service’s PROFILE
      application, if required by school or state agency
   – Submit all requested follow-up documents
• Investigate other sources of aid

Good Luck!