Training

Training

Welcome to Kings College Financial Aid Night January 09, 2013 Financial Aid Financial Aid is assistance to help students fund their education. It can take the form of: Scholarships

Grants Loans Employment Gift Aid vs. Self-Help Aid GIFT AID Grant/Scholarship = Aid awarded that does not have to be repaid. SELF-HELP AID Loans = Borrowed money that has

to be repaid over a period of time, often after the student completes their degree. Available to students and parents Work-study = Money students earn by working on campus. Merit versus Need-Based Merit-Based Aid (Need blind) Academic record Skills or talents

Involvement - community service; extracurricular activities Need-Based Aid = awarded on the basis of financial need. Re-evaluated each year as financial situations may change. Filing the FAFSA Available in English and Spanish Complete as soon as possible after January 1, 2013 and by college deadlines.

Must be filed by May 1, 2013 for PHEAA Getting Ready Before starting the FAFSA, gather: (student and parent) Social Security cards 2012 federal income tax form (even if not completed) and W2 forms Records of untaxed income Current bank statements (as of filing date)

Business, farm and other real estate records Records of stocks, bonds and other investments (including 529 accounts) Asset information may not be required Student Financial Aid (SFA) PIN Web site: www.pin.ed.gov Pin # used to sign FAFSA electronically May be used by students

and parents throughout aid process, including subsequent school years Link to Pin website is also on FAFSA website PIN Usage If filing FAFSA online, Parent & student sign electronically. Must first apply for PIN at http://www.fafsa.gov PIN can be created or will be emailed to student for

immediate use. PIN serves as e-signature Additional PIN uses: submit info and make corrections online. sign Promissory Notes for Direct Loans. Access Financial Aid history on NLSDS FAFSA-Filing Tips

Based on prior calendar year tax return May use estimated income and taxes May submit prior to college acceptance PA residents must file by May 1 for state grant consideration; state will follow up with student (via email) Three Ways to File FAFSA

File online at www.fafsa.gov Download electronic FAFSA PDF file, print, complete and mail or complete PDF FAFSA online, print and mail Request paper FAFSA from Federal Student Aid Information Center (FSAIC) at 1-800-4-FED-AID or 1-800-433-3243 FAFSA on the Web Web site: www.fafsa.gov.

2013-2014 FAFSA on the Web available as of January 1, 2013 FAFSA on the Web Good reasons to file 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

questions Ability to check application status on-line Simplified renewal application process FAFSA on the Web Good reasons to file electronically: Can complete in stages and save and submit when complete Incomplete applications saved and not submitted will be sent emails after 7 days and again in 14 days if still not submitted

Emails sent to student and parent when both provide email addresses FAFSA on the Web The IRS Data Retrieval continues in 2013- 2014 beginning February 3, 2013. Also available in Corrections Electronically filed tax return information will be available from the IRS in 2-3 weeks,

data from paper tax returns will be available in 6-8 weeks. FAFSA on the WEB General student information Name State of legal residence Social Security Number Citizenship FOTW

Student demographic information Marital status Selective Service Registration Drug Conviction Question Parents Educational Background FOTW Student Income and Assets Adjusted Gross Income/Earned wages

Untaxed Income Assets FOTW Students dependency status:

If all No responses, student is dependent If Yes to any question, student is independent Under limited special circumstances, student may submit electronic FAFSA without parental data. If there is a special circumstance, student will be instructed during online application process on how to proceed; documentation will be needed by Financial Aid Examples of special circumstances: parents incarcerated, left home due to abusive environment, unable to locate and contact parents

FOTW Data for parents of dependent students Parents name, social security number, date of birth FOTW Data for parents of dependent students: Are either parents a dislocated worker? Job loss, laid off, receiving unemployment, unlikely to return to previous occupation or Displaced homemaker person who previously provided unpaid

services to family & is no longer supported by spouse, is unemployed & is having trouble finding or upgrading employment. Documentation will be needed by Financial Aid Office FOTW Financial data for parents of dependent students: Tax filing status and return type already completed, will file, will not file 1040, 1040A/EZ, foreign tax return wages, adjusted gross income, federal tax paid

FOTW Financial data for parents of dependent students: Adjusted Gross Income (AGI) for 2012 Income earned from work FOTW Financial data for parents of dependent students: 2012 Additional Financial Information

Education credits on tax return, child support paid/received payment to tax deferred pension, IRA deductions FOTW Cash, savings, and checking Net worth of investments: Net worth equals current value minus debt Dont include primary home, life insurance, retirement plans Do include real estate, money market, mutual funds, CDs, stocks,

education savings plans (even if owned by student, parent reports in parent section) Review instructions for all items to be reported FOTW Asset data for parents of dependent students: Net worth of business and investment farms: Net worth equals current value minus debt Dont include farm if you live on & operate Dont include value of small business if parent owns & controls & has

100 or fewer full-time or full-time equivalent employees School Information Strategies for Listing Colleges List a Pennsylvania school with the highest cost first; first college used by PHEAA Grant to determine state grant If you are applying to more than six schools, wait for the processed Student Aid Report (SAR) and add additional schools via the Web

Signatures Required Student One parent (dependent students) Format Electronic using PIN 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 * Real estate and investment net worth Missing signatures Parent income data in student section Making Corrections If necessary, corrections to FAFSA data may be made by:

Using FAFSA on the Web student and parent PIN required Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or FAFSA Processing Results Review data for accuracy

Update estimated income information when actual figures are available using the IRS data retrieval tool. FAFSA Processing Results CPS notifies student of FAFSA processing results by: E-mail notification containing a direct link to students on-line SAR if students e-mail was provided on paper or electronic FAFSA Student with PIN can view SAR on-line at

www.fafsa.gov. Separate electronic record sent to colleges 10 14 days after filed; record also sent to state FAFSA Processing Results Paper Student Aid Report (SAR) if paper FAFSA was filed and students e-mail address was not provided SAR Information Acknowledgement will be mailed if filed electronically via FAFSA on the Web and students e-mail address was not provided

EFC-Expected Family Contribution Once the FAFSA is processed the result is the Expected Family Contribution or the EFC. The EFC is determined by a federal formula and is an index used by the college , federal, and state government to determine need based aid eligibility. The EFC is not equivalent to out-of-pocket costs.

EFC-Expected Family Contribution The EFC stays same regardless of college The EFC has two components: Parent contribution Student contribution EFC Calculations Primary Factors: Dependency Status

Taxable Income: AGI (wages earned + interest dividends + other taxable income) Untaxed income & benefits Number in family Number of dependent children in college Assets Cost of Attendance Includes:

Tuition Fees Room and Board Books and Supplies Personal Expenses Transportation Loan Fees Cost of Attendance Will vary by college Will vary by housing status

(commuter vs. resident) Financial Need Cost of Attendance (variable) -Expected Family Contribution Financial Need (variable) Need Varies Based on Cost 1 X

2 Y 3 Z EFC Cost of Attendance (Variable)

Expected Family Contribution (Constant) EFC Need (Variable) Sources of Aid

Federal State College Aid Outside Organizations Examples: civic organizations, parents employers, high schools, churches, etc. Federal Pell Grant Federal Pell Grant (need-based): $5,500 max/year for 2013-2014 year Must have demonstrated exceptional financial

need Expected Family Contribution (EFC) of $4,995 or less to qualify in 2012-13 2013-14 EFC not available yet Iraq/Afghanistan award Federal SEOG Grant Federal Supplemental Educational Opportunity Grant (FSEOG): A campus-based program; funding is limited Annual awards of $500 to $1,000 per year

(Kings College) Must have demonstrated exceptional financial need Priority to Federal Pell Grant recipients Undergraduates pursuing 1st bachelors degree Federal Work Study (FWS) A campus based program; funding is limited Employment for full time undergraduate

On or off-campus Students paid at least minimum wage Federal Perkins Loan A campus based program; funding limited. Must have demonstrated financial need Interest subsidized while in-school and during grace and deferment periods; 5% interest rate during repayment Repayment period up to 10 years

Federal Direct Loans Student loans available under: Federal Direct Stafford Loan Program School determines loan eligibility and delivers loan proceeds to students Available to all students, regardless of need Repayment begins 6 months following graduation, withdrawal or less than half-time enrollment

Federal Direct Stafford Loan TYPES: Subsidized Based on financial need Government pays interest on loan while student is enrolled 6.8 % interest rate effective 07/01/2012 Unsubsidized Non-need-based Interest paid either quarterly or capitalized upon repayment Fixed interest rate of 6.8%

AMOUNTS: Annual maximums capped by grade level $3,500 subsidized/$2,000 unsubsidized - freshmen year $4,500 subsidized/$2,000 unsubsidized - sophomore year $5,500 subsidized/$2,000 unsubsidized - junior/senior year

Additional amounts for independent and graduate students Loan fees of 1% of approved amount deducted prior to disbursement. Federal Direct PLUS Loan Credit-based federal loan for: Parents of dependent undergraduate students Graduate students Interest rate capped at 8.5% 4% origination fee

Repayment begins 60 days after 2nd disbursement (other repayment options available and forbearance; can defer repayment while student enrolled & can receive 6 month grace period) Annual maximum is the cost of attendance minus other financial aid student is receiving (If a parent is denied due to adverse credit history, a dependent student can access additional Unsubsidized Direct Stafford Loan) Pennsylvania State Grant

(PHEAA) Pennsylvania State Grant (for PA Residents): $4348 max/year for 2012-13 for students attending a PA school Eligibility based on need and familys unique circumstances and FAFSA information Partial PHEAA Grant can transfer out-of-state to: ($600) CT, DE, MA, OH, RI, VT, DC, WV (ME eliminated 13-14) NJ, MD and NY -- $0 transfers there (some exceptions) Student must file FAFSA by May 1 for upcoming fall term

Pennsylvania State Grant (PHEAA) PHEAA State Grant info not available on FAFSA will be collected online via State Grant Form (SGF) on PHEAAs Account Access system PHEAA State Grants Upon FAFSA completion, PHEAA will email student directing them to Account Access via link in email If student is dependent and parent provided email address, email will be sent to parent also 1st time applicants have to provide 8-9 items

Student and parent will still have to print, sign and mail certification statements Pennsylvania State Grant (PHEAA) Changes to information should be made through FAFSA correction process; will update both FAFSA and PHEAA State Grant records State Grant Form must be completed in order for state grant to be finalized and money credited to students account. If additional information requested or student

selected for PHEAA Validation, student must provide information directly to PHEAA Other State-Funded Grants & Scholarships in Pennsylvania PATH Grant (Partnership for Access to Higher Education) CHAFEE Education and Training grant Details and additional programs at www.pheaa.org

Other Sources of Funds Kings College Achievement PLUS * ROTC Scholarships Office of Vocational Rehabilitation Private business scholarships (e.g., Wal-Mart, Gates Foundation, etc.) Civic organizations & churches(e.g., PTA, Elks Club, Rotary, Kiwanis, etc.) Cp 33 VA benefits Yellow Ribbon Check www.kings.edu for private scholarships

Private Scholarship Search Free Internet scholarship search engines: FinAid on the Web: www.finaid.org College Board: www.collegeboard.com FastWeb: www.fastweb.com GoCollege: The Collegiate Websource: www.gocollege.com Check www.kings.edu for private scholarships Financing Options Payment plans interest free monthly

installments Alternative (non-federal) student loans credit-worthy co-signer often required; Interest rate variable, not fixed Resources for Students Institutional Financial Aid Offices PHEAA: www.pheaa.org 1-800-692-7392

U.S. Department of Education: www.studentaid.ed.gov www.federalstudentaid.ed.gov 1-800-4FEDAID (1-800-433-3243) Questions? Thank you!

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