Financial Aid NightCEC Middle College

November 7, 2013

Overview• What is Financial Aid?

• What is the FAFSA? Who can complete it?

• FAFSA: Prepare, Complete, Follow-up

• Timeline

• Resources Available & the DSF Scholarship

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What is Financial Aid?• Why is it important?

• What is the FAFSA?

• Where does the money “really” come from?

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Why is Financial Aid Important?

How much will college cost?

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How much will college cost?

CommunityCollegelive w/parentsIn State Tuition

University(in Colorado)live on campusIn State Tuition

Private Universitylive on campusIn State Tuition

Tuition & Fees

Books, Supplies

Room, BoardPersonal Expenses(include insurance, transportation)

COST OF ATTENDANCE

$ 3,450 $ 9,250 $35,000

1,700 1,700 1,700

0 10,500 11,080

2,000 2,000 4,000

$ 7,150 $23,450 $51,780

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But remember…• These are merely starting or sticker prices.

• Financial aid can help you cover the costs, if you apply for it.

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Where does the money come from?

• Need-Based Aid (FAFSA)- Grants- Work-study- Student Loans

• Merit-Based Aid- Institutional Scholarships (from the college)- Private Scholarships

• Self Help- Work, savings, cash

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Types of Aid• Grants, Work-Study, and Scholarships are all free

money, and do not need to be paid back.

• Student loans do need to be paid back, after the student is no longer enrolled in college.

– Subsidized loans: The government pays the interest on your loan while you’re in college.

– Unsubsidized loans: The government does not pay the interest on your loan while you’re in college.

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Grants• Grants

- Come from federal and state governments, colleges and private organizations.

- Awarded to the student based on need.- Do not need to be paid back.

• Pell Grant- Up to $5,645 for 2013-2014

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Work Study• Provides financial assistance in the form of a

part-time job on-campus or some off-campus sites.

– You must find your own job– Flexible employers and on-campus networking – The money goes to you to use to pay your tuition – The income is not used against you for next year’s financial aid

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Student LoansStafford Student Loans

• Low, fixed interest rates (3.86%)• 6 month grace period• In student’s name• No credit check/income verification• Up to $5,500 per year

Subsidized Unsubsidized

• Need-based• Interest Rate – 3.86% (2013-2014)• Government pays interest while student

is in college and during grace period

• Not need-based• Interest rate – 3.86%• Student pays interest that accrues while

in college and during grace period• Can pay quarterly

Must pay back w/ interest!

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Parent PLUS Loans• In parent name • For undergraduate and dependent students• Credit check required

– If denied, student eligible for additional unsubsidized Stafford allowance

• Repayment begins 6 weeks after the loan is fully disbursed OR parent may defer repayment:– While the student is enrolled on at least a half-time – Dollar Amount: Up to unmet need– Interest rate: 6.8 – 7.5%– Fees: Up to 4%

Must pay back w/ interest!

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What is the FAFSA?FREE Application for Federal Student Aid• FAFSA is not a scholarship application. It is an application

that can help you qualify for specific financial assistance - to help pay for college.

www.fafsa.ed.gov

www.fafsa.com

www.fafsa.org

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Who completes FAFSA? And When?

• Students and parents complete the FAFSA• Students must be one of the following:

– U.S. Citizen, Permanent Resident, Refugee/Asylum, or awaiting a Green Card with an SSN

• You must submit the FAFSA each year!• The FAFSA is available January 1st

– Deadline to complete the FAFSA is usually March 1st

• FAFSA Night at CEC: – Thursday, February 13, 2014

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Before FAFSA: Prepare • Students must obtain a

government-issued photo identification, if they don’t have one already.

• Prepare and submit student and parent tax returns as soon as possible in January.– If you don’t receive your W-2s by

January 31, 2014, talk to your employer.

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Before FAFSA: Prepare Filing Taxes• What the Denver Scholarship Foundation

has learned:

– If a family does not report its family income to the federal government (IRS), the student may not receive federal financial aid, even if the student is a citizen.

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Before FAFSA: Prepare To complete the FAFSA, you need:

– Student and your parent(s) 2013 tax returns (1040, 1040A, 1040EZ) and W-2s

– Student and your parent(s) social security number(student’s required)

– Student and your parent(s) name is it appears on social security card

A much more detailed list will be sent out in January

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FAFSAwww.fafsa.ed.gov

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FAFSAThe U.S. Department of Education:

– processes the information and – provides you - and the colleges you selected – the

Expected Family Contribution (EFC)…

• …an index that colleges use to determine your eligibility for financial aid• …NOT necessarily the amount of money your family will have to pay for

college• ...NOT the amount of federal student aid you will receive

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FAFSA2

Financial Aid Award• Pell Grant• State Grant• Scholarship• Work Study• Student Loan• Parent Loan

EFC

“Expected FamilyContribution” Cost of Attendance

<EFC>

= Financial Need

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What Determines EFC?• Parent income and assets

(Assets do not include family’s primary home, businesses with fewer than 100 employees, retirement, life insurance policies, farms.)

• Student income and assets• Cash, savings, investments (529s, stocks, bonds,

real estate, businesses)• Number in household, and in college• Untaxed income• Note: debt/bills are not listed.

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Special CircumstancesQ: My parents are divorced, whose taxes do I use?

• Use the information of the parent with whom you lived with the most in the previous 12 months, which is typically the parent who provides more than half of your support.

• If my mom is remarried, do I have to use her husband’s financial information, whether he files jointly or separately?

Yes.

Q: I live with my grandma, and she doesn’t file taxes. • It doesn’t matter who you live with, if she isn’t your court

appointed legal guardian, we need parent financial information.

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Special CircumstancesQ: I am independent because I’m 18 and I provide for myself. My parents don’t help me now financially and won’t help me when I’m in college.

• You must be legally emancipated, 23, or married, or we will need parent tax information.

Q: My parents don’t file taxes. • It’s ok, you must still complete the FAFSA.

Q: My parents refuse to give me their taxes or SSN. • Unless you are considered independent, you need them.

Q: My parents don’t have a social security number. • It’s ok, you can still complete the FAFSA.

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After FAFSA• After FAFSA…is a long time away from now.• But, here’s what you need to remember:

– The process does not end at the FAFSA.– When you come to the FAFSA night, it is important to take

notes and listen to your FAFSA expert – this person will tell you what you need to do next.

– Keep Ms. Russel, Mrs. Abbott, and Mr. DePinto in the loop – they will be able to help you with each “next step.”

– When a college asks for information, send it in immediately.

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CSS Profile• Created by CollegeBoard• CollegeBoard is a not-for-profit association that tries to connect students to

colleges• Sending your PROFILE report to one college or scholarship program costs $25

(There is a fee waiver.)– Additional reports are $16 each

• More detailed than the FAFSA• Will calculate an EFC, may differ from EFC that the FAFSA calculates• Colorado institutions that require the profile:

– Colorado College– Colorado State University– University of Denver

• www.collegeboard.com

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TimelineOct-Dec:

January: February: March:

April:

May:

June-July:

Students obtain a government-issued photo identificationFile 2013 taxesComplete the FAFSA (at CEC on Feb 13!)Complete IRS Data Match (if needed); Order IRS tax transcriptSubmit all documents your college requests; Receive financial aid award lettersMake a decision; accept awardsVerify your financial aid file is complete

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Scholarships• Institutional

– The majority of scholarships awarded to students are through the university/college they will attend

– Each colleges has a different process for their scholarships– Priority deadline for most colleges: March 1

• Private

– Companies, organizations, churches set their own criteria – GPA, religion, credit union member, etc.– Deadlines are set by the organizations throughout the year

• Merit & Need Based

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DSF Scholarship•For DPS graduates who:

are enrolled in a DPS high school for all four years of High School

have a 2.0 cumulative G.P.A have financial need enroll in Colorado colleges

• Awards are based on financial eligibility (FAFSA), school choice, and enrollment (full-time or part-time)

• This fall, DSF Scholars received up to $3,400

• Renewable for up to five years

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DSF ScholarshipApril 1

• Submit DSF Scholarship application • Apply for 3 additional scholarships • Submit FAFSA• Submit proof that you submitted FAFSA

May & June• Graduate from DPS high school with a 2.0 cumulative GPA• Attend a Transition to College Workshop

July 15 • Complete Financial Aid Requirements• Tell DSF if you plan to attend a different college

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How Can YOU support your senior?

Provide information needed for applications• Birthdates• Employment information

Provide tax & income information for scholarships or federal financial aid.

Help him/her stay focused and meet deadlines.

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Resources

DSF depends on donations from the community to pay for its scholarships, and award amounts can vary from year to year.

• Counselors at CEC: Ms. Abbott & Mr. DePinto• DSF Advisor, Robin Russel rrusssel@denverscholarship.org • Scholarship directory: http://

www.denverscholarship.org/scholarshipdirectory• DSF Website: www.denverscholarship.org

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Questions?• That was a lot of information!• What questions do you have now? • DSF Advisor’s information:

– Robin Russel– rrussel@denverscholarship.org – 303.564.7601