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What You Need to Know About Financial AidJulie A. Scott Assistant Director | Office of Financial Aid

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Tonight’s Topics

What is Financial AidCost of Attendance (COA)Expected Family Contribution (EFC)Financial NeedTypes & Sources of Financial AidHow to Apply for Financial Aid

Know Your

Financial Aid

OptionsSearching for Scholarships

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What College Expenses Might I Have?

TUITION & FEES

ROOM & BOARD

BOOKS & SUPPLIES

OTHER EDUCATIONAL

EXPENSES

TRANSPORTATION

CLOTHINGLAUNDRY

CELL PHONE

MEDICAL

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How Can I Pay for College?

OUT-OF-POCKETLOANSWORK-STUDYGRANTSSCHOLARSHIPS

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What is Financial Aid?

• College can be expensive, but it can still be affordable• One Option is Financial Aid:

Money awarded or loaned to students and families to help pay for educational expenses when their own resources are not sufficient

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Cost of Attendance [COA]

• Cost of Attendance equals Direct plus Indirect costs

• Varies widely from college to college• Sets the maximum amount of aid you can

receive

Direct Costs

Tuition & Fees

Room & Board

Indirect CostsBooks & Supplies

Personal Expense

sTranspor

tation

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How MUCH Might College Cost Per Year?

Community

College2 Yr

Public

$2,460$5,150$1,000$1,800

$10,410

In-State Universit

y4 Yr

Public

$5,995$6,560

$975$3,450

$16,980

Private Universit

y4 Yr

Private

$22,238$6,390$1,079$5,392

$35,099

Tuition & fees

Room & board

Books & supplies

Other expenses

Total

Out-of-State

University

4 Yr Public

$16,630$8,000$1,030$4,480

$30,140

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Expected Family Contribution [EFC]• Amount the family can “reasonably” be

expected to contribute toward the student’s education

• Stays the same regardless of college choice• Calculated using FAFSA data and a federal

formula– Includes parent contribution and student

contribution

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What is Financial Need?

COACost of

Attendance for

My College

EFCMy Expected

Family Contribution(determined by

the FAFSA)

NEEDMy Financial

Need for My College

– =

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Financial Need Formula in Practice• Need VARIES based on each school’s cost– Each aid package differs in the amount of aid

and the type of aid (grants, work-study, loans, etc.)

College A College B College C College D

$0 $5,000

$10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 Nee

d

Cost

of A

t-te

ndan

ce

(CO

A)

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The CATEGORIES of Financial Aid

Need-Based Merit-

Based Demonstrate financial need

Based on family income & assets

Financial need not considered

Based on talents, skills, & abilities

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4 BIG Types of Financial Aid

Scholarships

Gift AidMerit-Based

GrantsGift AidNeed-Based

Work-Study

Self-Help AidMust Earn

LoansSelf-Help AidNeed-BasedNon-Need-Based

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The MAIN Sources of Financial Aid

Federal Government

State Government

Your Instituti

on

Outside

Resources

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Common Federal Aid Programs• Federal Pell Grant• Teacher Education Assistance for College &

Higher Education Grant (TEACH)• Federal Supplemental Educational

Opportunity Grant (SEOG)• Federal Perkins Loan• Federal Work-Study• Stafford Loans• Parent/Graduate PLUS Loans

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Federal Financial Aid: Pell Grant• Recipients:– Demonstrate “financial need” via FAFSA

calculations– Undergraduates pursuing 1st bachelor’s degree

• About Me:– Does not have to be repaid

• Award:– Up to $5645 (2013-2014 school year)

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Federal Financial Aid: Stafford LoansSubsidized LoansRecipients:– Demonstrate

“financial need”About Me:– Must be repaid– Fixed interest rate– “Interest free” in

school– 6 month grace period

Unsubsidized LoansRecipients:– Not based on

“financial need”About Me:– Must be repaid– Fixed interest rate– Interest accrues in

school– 6 month grace period

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Federal Financial Aid: Stafford Loans

• Independent Freshmen & Sophomores are eligible for an additional $4000 in Unsubsidized Stafford Loans

• Independent Juniors & Seniors are eligible for an additional $5000 in Unsubsidized Stafford Loans

Grade Level

Credit Hours

Subsidized Stafford Loans (If Eligible)

Additional Unsubsidized Stafford Loans

Total Stafford Loan Eligibility (Guaranteed)

Freshmen 0-29 $3500 +

$2000 =

$5500

Sophomore 30-59 $4500 +

$2000 =

$6500

Junior & Senior

60+ $5500 +

$2000 =

$7500

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Federal Financial Aid: Perkins Loan• Recipients:– Demonstrate “financial need” via FAFSA

calculations• About Me:– Must be repaid to the institution attending– Fixed 5% interest rate– 9 month grace period

• Benefits:– Deferred interest until repayment

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Federal Financial Aid: Work Study• Recipients:– Demonstrate “financial need” via FAFSA

calculations– Must obtain on-campus job

• About Me:– Earned money through a bi-weekly paycheck

• Benefits:– On-campus jobs are flexible with student

schedule– Great resume builder

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Federal Financial Aid: Parent PLUS Loans• About Me:– Low interest loan borrowed by the parent– Payments typically begin 60 days after final

disbursement• May be deferred until the student graduates or drops

below half time (additional paperwork)– Credit-based

• If parent is denied, the student may receive the additional unsubsidized $4000-$5000

– Check with your student’s institution for specific instructions on how to apply

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Alternative/Private Loans• About Me:– Applied for through private banks and

companies• Credit & income-based• Student may need a co-signer

– Potentially high interest rates & fees• Terms and conditions vary• READ THE F INE PRINT!

– Allows a student to borrow unmet need

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WHAT is the FAFSA?• FREE APPLICATION FOR FEDERAL

STUDENT AID• Standard form that collects

demographic and financial information about the student and family

• May be filed electronically or using paper form– Available in English and Spanish

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HOW is the FAFSA Used?• Information used to calculate the Expected

Family Contribution (EFC)– EFC is the amount of money a student and

family may reasonably be expected to contribute toward the cost of the student’s education for an academic year

• Colleges use EFC to award various forms of financial aid

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WHEN Do I Apply for Financial Aid?

1JAN.

File your FAFSA as soon as

possible after Jan. 1st.

Most colleges have FAFSA filing

priority dates.Some aid

programs are first-come, first-

served and have limited funds

available.Apply EVERY

year

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WHERE Do I Apply for Financial Aid?

www.fafsa.gov

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• Built-in edits to prevent costly errors• Skip-logic allows student and/or parent to

skip unnecessary questions• Option to use Internal Revenue Service

(IRS) Data Retrieval Tool (DRT) to import tax data

• More timely submission of original application and any necessary corrections

• More detailed instructions and “help” for common questions

• Ability to check application status online• Simplified application process for future

school years

Reasons WHY to File Your FAFSA on the Web

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• While completing FAFSA on the Web, applicant may submit a real-time request to the IRS for tax data

• IRS sends real-time results to applicant in new browser window

• Applicant chooses whether or not to transfer data to the FAFSA

IRS Data Retrieval Tool

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• Available early February 2014 for the 2014-2015 FAFSA

• Participation is voluntary

• Reduces documents requested by financial aid office

- - - - - - - - - - - - - - - - - - - - • Some will be unable

to use IRS DRT– Filed an amended tax

return– No SSN was entered– Student or parent

married but filed separately

IRS Data Retrieval Tool

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• Website: www.pin.ed.gov

• Sign FAFSA electronically

• Not required, but speeds processing

• May be used by students and parents throughout aid process, including future school years

Federal Student Aid PIN

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• Includes instructions for the FAFSA

• Asks questions that gather basic information on student and parent, if applicable

• Makes filling out the FAFSA much easier

FAFSA on the Web Worksheet

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• Social Security Number• Citizenship Status• Marital Status• Drug Convictions• Selective Service Registration (for males)• Level of Parents’ School Completion

General Student Information

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• FAFSA asks questions to determine dependency status for federal student aid (not IRS) purposes– If all “No” responses, student is

dependent– If “Yes” to any question, student is

independent

Student Dependency Status

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• If your parents are living together, include their combined financial information (regardless of their marital status) NEW!!

• If your parents are divorced or separated, include the financial information for the parent you lived with more during the past 12 months. If that parent is remarried, you must include your stepparent’s financial information.

Who is Considered Your Parent for FAFSA?

Grandparents, foster parents, and legal guardians are NOT considered parents unless

they have legally adopted you.

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• Tax, income, and other financial information• Dislocated worker status• Receipt of federal means-tested benefits• Assets• Untaxed income

Info About PARENTS of Dependent Students

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• Tax, income, and other financial information• Dislocated worker status• Receipt of federal means-tested benefits• Assets• Untaxed income

Info About STUDENT (and Spouse)

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• Colleges– List up to 10 colleges to

receive your FAFSA data– Add each school’s Federal

School Code • Housing Options– Choose your housing

plans for each college• On-Campus• With Parent• Off-Campus

School Information

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• Required– Student– One Parent (Dependent Students Only)

• Methods of Submitting Signatures– Electronic Using PIN (Preferred)– Signature Page (Print, Sign, and Mail)– Paper FAFSA

Signatures

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• 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

Frequent FAFSA Errors

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• If necessary, corrections can be made by:– Using FAFSA on the Web

if student has PIN• www.fafsa.gov

– Updating paper Student Aid Report– Submitting documentation to

college’s financial aid office

Making Corrections

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• FAFSA Processor sends student notification that FAFSA has been processed– Students with PIN may view Student Aid Report

(SAR) online at www.fafsa.gov– Students without PIN will receive paper copy of

SAR• Review SAR for accuracy– Update estimated information when actual

figures are available

I Submitted My FAFSA, Now What?

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• Schools will contact you if additional information is required– Students should provide the requested

documentation as soon as possible– 1 out of 3 students must complete

VERIFICATION• Verification “verifies” the information submitted on the

FAFSA- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - • Schools will notify you of your award offer• Students should evaluate award offers and

decide which awards to decline/accept

I Submitted My FAFSA, Now What?

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• Change in Employment Status

• Unusual Medical Expenses Not Covered By Insurance

• Change in Parent Marital Status

• Unusual Dependent Care Expenses

• Student Cannot Obtain Parental Information

Special Circumstances

LIFEHAPPE

NSSOMETI

MES

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• Cannot be documented using FAFSA• Send written explanation and

documentation to financial aid office at each college

• College may review and request additional information if necessary

• Decisions are final and cannot be appealed to U.S. Department of Education

Special Circumstances

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Scholarships

• Deadlines Matter and the students who get scholarships meet them• ACT and GPA matter, but they

aren’t everything• Time Well Spent

Scholarship Essays – 3 P’sActivities Chart – “When Did That

Student Sleep?”Apply, Apply, Apply – Your student won’t win if

he/she doesn’t apply

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Scholarship Essays

vs

It’s All About How You Portray Yourself

Personality ● Passion ● Purpose

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Building an Impressive Application• Build a RESUMÉ containing the

following information:– Education & Scholastic Achievements– Life Experience, Training, Employment– Honors, Awards, Memberships– Leadership and Community Service– Career Ambitions: Statement of Goals– References and/or Reference Letters

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WHERE Do You Find Scholarships?• Schools• Parent’s Employer• Local Businesses

– Banks, Car Dealerships, TV Stations• Community Organizations

– Churches, Lion’s Club, NAACP, American Legion

• www.wichita.edu/outsidescholarships [National, Regional, Local]

• www.fastweb.com [National]• www.scholarships.com [National]

Communiti

es Want to

Invest in

Students!

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Where Do You Find MORE

Scholarships?

• National Competitions Gates Millennium Scholarship Hispanic Scholarship Fund Jackie Robinson Foundation Coca-Cola, Dell, Best Buy, Kohl’s Cares, Target

• Institutional Awards come from the university Some schools have automatics; others are competitive

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State of Kansas Programs• KCG – Kansas Comprehensive Grant• KS Ethnic Minority Scholarship• KS State Scholarship• KS Teacher Service Scholarship• KS Nursing Service Scholarship• National Guard Tuition Assistance Program• Military Service Scholarship• Application & Details at

www.kansasregents.org

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WSU’s FRESHMEN MERIT Scholarships• Must be fully admitted to WSU• $1000 to $3000 per year• Renewable for three additional years• Awards offers based on:

High School GPA High School Class Rank National Test Score (ACT/SAT)

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Myth Buster!!

There is an assumption that you have to be brilliant, or athletically talented, or gifted

musically, to earn scholarships for college

Sometimes you just need to take the time to apply

Persistence pays!!!

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Don’t Get Stung By a Scam!!• How to Avoid Scholarship Scams– Watch closely anything that requires a fee– Check for PHYSICAL contact information– Avoid giving non-relevant personal information– Be wary of any “Guaranteed” scholarships– “Free” seminars with an up-sell– Never give out bank/credit card account

numbers!– Avoid interviews in hotels or restaurants– If it’s too good to be true – it probably is

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Contact Us

Office: 203 Jardine HallPhone: 316-978-3430 / 800-522-2978Email: finaid@wichita.eduWeb: www.wichita.edu/financialaid Walk-in and Appointment Hours:

Mondays-Thursdays: 8am-7pm Fridays: 8am-5pm

WSU FinancialAid

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YOUR STUDENT’S FUTURE IS

WORTH THE INVESTMENT