You Can Afford College

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Topics We Will Discuss Tonight

• What is financial aid?

• Cost of attendance (COA)

• Expected family contribution (EFC)

• Financial need

• Categories, types, and sources of financial aid

• Free Application for Federal Student Aid (FAFSA)

• Special circumstances

• Maryland State Awards

What is Financial Aid?

• Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses

What is Cost of Attendance (COA)?

What is Expected Family Contribution (EFC)?• Amount family can reasonably be expected to contribute

• Stays the same regardless of college

• Two components

• Parent contribution

• Student contribution

• Calculated using data from a federal application form and a federal formula

What is Financial Need?

Cost of Attendance

– Expected Family Contribution

= Financial Need

Need and Eligibility Depend on Cost

Categories of Financial Aid

• Need-based aid

• Non-need-based aid

Types of Financial Aid• Grants

• Loans

• Employment

• Scholarships

Gift Aid: Scholarships

• Money that does not have to be paid back

• Awarded on the basis of merit, skill, or unique characteristic

Gift Aid: Grants

• Money that does not have to be paid back

• Usually awarded on the basis of financial need

Self-Help Aid: Loans

• Money students and parents borrow to help pay college expenses • Repayment usually begins after education is finished• Only borrow what is really needed• Look at loans as an investment in the future

Self-Help Aid: Work-Study Employment

• Allows student to earn money to help pay educational costs

• A paycheck; or

• Nonmonetary compensation, such as room and board• Student may opt whether or not to work or number of hours to

work

Sources of Financial Aid

• Federal government

• States

• Colleges and universities

• Private sources

• Civic organizations and churches

• Employers

Federal Government

• Largest source of financial aid

• Aid awarded primarily on the basis of financial need

• Must apply each year using the FAFSA

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Federal Student Aid Programs

• Federal Pell Grant

• Iraq and Afghanistan Service Grant (IASG)

• Teacher Education Assistance for College and Higher Education (TEACH) Grant

• Federal Supplemental Educational Opportunity Grant (FSEOG

• Federal Perkins Loan

• Federal Work-Study (FWS)

• Subsidized and Unsubsidized Federal Direct Student Loans (Direct Loans)

• PLUS Loans

States

Colleges and Universities

• Award aid on the basis of both merit and need

• Aid may be gift aid or self-help aid

• Use information from the FAFSA and/or institutional applications

• Deadlines and application requirements vary by institution

• Check with each college or university

Private Sources

• Foundations, businesses, charitable organizations

• Deadlines and application procedures vary widely

• Begin researching private aid sources early

Civic Organizations and Churches

• Research what is available in community

• To what organizations and churches do student and family belong?

• Application process usually occurs during spring of senior year

• Small scholarships add up!

Employers

• Companies may have scholarships available to the children of employees

• Companies may have educational benefits for their employees

CSS / Financial Aid PROFILE®

• By filling out one form, you can apply online for nonfederal financial aid from almost 400 colleges and scholarship programs.

• WHAT does the PROFILE cost? The fee for the initial application and one college or program report is $25. Additional reports are $16. Payment may be made via credit or debit card. Fee waivers are granted automatically — based on the information entered on the PROFILE application — to students who are first-time college applicants and are from families with low incomes and assets. International students are not eligible for fee waivers. This waiver covers the application fee and the reporting fees for up to eight colleges or scholarship programs.

• https://student.collegeboard.org/css-financial-aid-profile

Free Application for Federal Student Aid (FAFSA)

• A 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

FAFSA

• Information used to calculate the expected family contribution (EFC)

• Amount of money a student and his or her family may reasonably be expected to contribute towards the cost of the student’s education for an academic year

• Colleges use EFC to award financial aid

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

• Most colleges set FAFSA filing deadlines

FAFSA on the Web (FOTW)

FAFSA ON THE WEB WORKSHEET

• Website: www.fafsa.gov

• 2016–17 FAFSA on the Web available on January 1, 2016

• FAFSA on the Web Worksheet:

• Used as “pre-application” worksheet

• Questions follow order of FAFSA on the Web

FAFSA on the WebGood reasons to file electronically:

• 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 to import tax data

FAFSA on the WebGood reasons to file electronically:

• 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 in the future

IRS Data Retrieval Tool

• While completing FOTW, applicant may submit real-time request to IRS for tax data

• IRS will authenticate taxpayer’s identity

• If match found, IRS sends real-time results to applicant in new browser window

• Applicant chooses whether or not to transfer data to FOTW

IRS Data Retrieval Tool

• Available early February 2016 for 2016–17 processing cycle

• Participation is voluntary

• Reduces documents requested by financial aid office

IRS Data Retrieval Tool

• Some will be unable to use IRS DRT

• Examples include:

• Filed an amended tax return

• No Social Security Number (SSN) was entered

• Student or parent married but filed separately

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Federal Student Aid ID (FSA ID)

• The FSA ID is a username and password that has replaced the Federal Student Aid Pin

• If you have a Federal Student Aid Pin, you will be able to enter it and link it to your FSA ID

• The FSA ID confirms your identify when accessing your financial aid information

• The FSA ID allows you to electronically sign your Federal Student Aid documents

• It may be used by students and parents throughout aid process, including subsequent school years

General Student Information

• Social Security Number

• Citizenship status

• Marital status

• Drug convictions

• Selective Service registration

• Level of parents’ school completion

Student Dependency Status

• 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

Information About Parents ofDependent Students

• Tax, income, and other financial information

• Dislocated worker status

• Receipt of federal means-tested benefits

• Assets

• Untaxed income

FAFSA Assets Questions

Assets include:

• Money in cash, savings, and checking accounts

• Businesses

• Investment farms

• Other investments, such as real estate (other than the home you live in), UGMA and UTMA accounts, stocks, bonds, certificates of deposit, etc.

FAFSA Assets Questions

Assets do not include:

• The home you live in

• UGMA and UTMA accounts for which you are the custodian, but not the owner

• The value of life insurance

• Retirement plans (401[k] plans, pension funds, annuities, non-education IRAs, Keogh plans, etc.)

Information About Student (and Spouse)• Tax, income, and other financial information

• Dislocated worker status

• Receipt of federal means-tested benefits

• Assets

• Untaxed income

Additional Information

• College and housing information

• FAFSA preparer information

• Certification of Statement of Educational Purpose

Signatures

• Required

• Student

• One parent (dependent students)

• Format for submitting signatures

• Electronic using FSA ID

• Signature page

• Paper FAFSA

Frequent FAFSA Errors• 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 Processing Results

• Central Processing System (CPS) notifies student of FAFSA processing results by:

• Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s email address was not provided

• SAR Acknowledgement if FAFSA filed on the Web and student’s email address was not provided

FAFSA Processing Results

• Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA is submitted

• College reviews ISIR

• May request additional documentation

Student Aid Report

• Review data for accuracy and correct any errors

• Update estimated tax information when actual figures become available

Making Corrections

• If necessary, corrections to FAFSA data may be made by:

• Using FAFSA on the Web (www.fafsa.gov) if student has an FSA ID;

• Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or

• Submitting documentation to college’s financial aid office

Special Circumstances

• Cannot be documented using FAFSA

• Send written explanation and documentation to financial aid office at each college

• College will review and request additional information if necessary

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

Special Circumstances

• 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

The Maryland Higher Education Commission Office of Student Financial Assistance

An Overview of State Financial Aid Programs

http://www.mhec.state.md.us/financialAid/ProgramDescriptions/prog_ea.asp

www.mhec.state.md.us

Overview of State Programs

• Need-based Programs

• Legislative Programs

• Unique Population Programs

• Other State Aid Programs

How to Apply for Need-based State Aid• File the Free Application for Federal Student Aid – FAFSA

• File on-line at www.fafsa.gov

• Complete all items

• Include minimum of one Maryland Institution

• All schools included will receive the FAFSA information

• If eligible, first Maryland school’s COA will be used

Need-based Financial Aid Programs

• Howard P. Rawlings Educational Assistance & Guaranteed Access Grant

• Part-Time Grant

Educational Assistance Grant$400 - $3,000 annually

• New and renewal students must file the FAFSA by March 1 Each Year

• OSFA will electronically receive FAFSA information if submitted on time

• Students must demonstrate financial need

• (Students with the greatest need and lowest EFC are awarded first)

• Students must enroll as full-time, degree-seeking undergraduates at a 2-year or 4-year college or university in Maryland

• Parents and students must be Maryland residents

Guaranteed Access Grant$400 - $15,500 annually

Apply as a high school senior, unless extenuating circumstances prevents it

Must submit a Guaranteed Access Grant application and FAFSA

FAFSA encouraged by March 1

Minimum 2.5 cumulative, unweighted high school GPA

Must complete a college preparatory program

Students must have a high-school diploma; those with a GED are not eligible

Must enroll as full-time, degree-seeking undergraduates at a 2-year or 4-year college or university in Maryland

Parents and students must be Maryland residents

Part-Time Grant$200 - $2,000 annually

• Funds are allocated directly to Maryland colleges

• College financial aid offices select students:

• Enrolled as part-time (6-11 credits per semester) undergraduates, or

• Dually enrolled in high school

• Students must demonstrate financial need

Senatorial and Delegate Scholarships

• All students may apply:

• High school seniors

• Undergraduates

• Graduates

• Career or technical school students

• May be used for:

• Full-time or part-time enrollment

• Maryland residents

Senatorial Scholarship$400 - $9,400 annually

• File FAFSA by March 1

• Demonstrate financial need

• Some awards are renewable for an additional 3 years

• Contact Senator for application and renewal procedures

• Note: Senators have the option to award; some do not select recipients but put their funds into other programs administered by OSFA

Delegate Scholarship $200 - $9,400 annually

• Contact Delegate for application procedure

• Must apply each year for an award; they are not renewable

• FAFSA may not be required

• Note: Delegates have the option to award; some do not select recipients but put their funds into other programs administered by OSFA

Unique Major

• Funds awarded for the Senatorial and Delegate scholarships may be used at an out-of-state institution if the student’s academic program is not offered at a Maryland institution

• Review OSFA website under Financial Aid Applications, Senatorial and Delegate Scholarship programs, for more information on how to apply

Edward T. Conroy Memorial Scholarship

Maximum award $9,468 annually

• Apply through the institution’s financial aid office

• You must be:

• The son or daughter of a member of the United States Armed Forces who died or who suffered a service connected 100% permanent disability as a result of military service

• A veteran who suffers a service connected disability of 25% or greater as a result of military service and has exhausted or is no longer eligible for federal veterans’ educational benefits

• The son, daughter, or surviving spouse (who has not remarried) of a victim of the September 11, 2001 terrorist attacks who died as a result of the attacks on the World Trade Center in New York City, the attack on the Pentagon in Virginia, or the crash of United Airlines Flight 93 in Pennsylvania

Edward T. Conroy Memorial Scholarship (Continued)

• You must be (continued):

• A POW/MIA of the Vietnam Conflict or his/her son or daughter

• The son, daughter, or surviving spouse (who has not remarried) of a State or local public safety employee or volunteer who died in the line of duty or who was 100% disabled in the line of duty

• A State or local public safety employee or volunteer who became 100% disabled in the line of duty

Tuition Waiver: Foster Care Recipients

• Students who resided in an out of home placement in Maryland:• On their 13th birthday and were then adopted from the out of home

placement after their 13th birthday; or• At the time they graduated high school or earned a GED• Attend a public college in Maryland• File the FAFSA every year no later than March 1• Tuition and fees not covered by grants or scholarships are waived• Must enroll as a degree-seeking student before age 25• Be sure to discuss with the financial aid officer at the college or university• List of eligible students is sent to the public colleges and universities• Contact social worker if not on the list

Tuition Waiver: Unaccompanied Homeless Youth

• Be declared as an unaccompanied homeless youth who is not in the physical custody of a parent or guardian AND

• Be declared a homeless child or youth as defined by the

McKinney-Vento Homeless Assistance Act

The Financial Aid Administrator must verify that the youth qualifies as an Independent student under the federal College Cost and Reduction & Access Act.

Tuition Waiver Unaccompanied Homeless Youth

AWARD AMOUNT• The tuition waiver provides exemption from paying any tuition and

mandatory fees at a Maryland public institution of higher education

• You are exempt from paying tuition and mandatory fees at a public college in Maryland. The tuition waiver only applies to tuition and fees.  

Tuition is determined by the individual public institution of higher education and includes cost for tuition, registration fees as well as all fees that are required as a condition of enrollment. Tuition

does not include room, board, books, and transportation.

Tuition Waiver Unaccompanied Homeless Youth

ELIGIBILITY CRITERIA• The youth must:

• Complete and file the Free Application for Federal Student Aid (FAFSA) by March 1st of each year.

• Be enrolled on or before he or she reaches the age of 25.The youth continues to be exempt from paying tuition and fees until 5 years after first enrolling as a candidate for an associate, bachelors, or a vocational certificate at a Maryland public institution of higher education. Be enrolled full time or part time for an associate, bachelors, or a vocational certificate at a Maryland public institution of higher education . Students are eligible to receive the Unaccompanied Homeless Youth Tuition Waiver for the following semesters:A. FallB. WinterC. SpringD. Summer

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AACC Financial Aid Office Contact

Email: finaid@aacc.edu

Phone: 410.777.2203

Notice of Nondiscrimination: AACC is an equal opportunity, affirmative action, Title IX, ADA Title 504 compliant institution. For information on AACC’s compliance and complaints concerning sexual assault, sexual misconduct, discrimination or harassment, contact the federal compliance officer at 410-777-7432 or Maryland Relay 711.