Torrance Unified School District Financial Aid Workshop October 5, Presented by Catherine Graham Educator Financial Aid Literacy

Transcription

1 Torrance Unified School District Financial Aid Workshop October 5, 2016 Presented by Catherine Graham Educator Financial Aid Literacy

2 What will be covered this evening? Why Financial Aid? Types & Sources of Financial Aid Admission Processes How to Apply for Financial Aid The Financial Aid Formula College Expenses what are the costs? What is the Expected Family Contribution (EFC)? Financial Eligibility Awarding Process & Comparing Awards 2

3 Why Financial Aid? Access Parents and students have the responsibility to pay for higher education expenses to the extent they are able The aid application process should provide Financial Aid Office a consistent and equitable evaluation of a family s financial circumstances for all that are applying Allocation of finite resources 3

4 The Players The Financial Aid Office Stewards of federal, state and institutional financial aid dollars To administer federal, state and institutional financial assistance to students and their parents in an accurate, informative, timely and friendly manner Parents To contribute to the application, awarding and financing process throughout student s Undergraduate Education 4

5 The Players Student Your senior year DOES COUNT!! Grade Improvements SAT Re-do s All acceptances PROVISIONAL dependent upon final semester grades Weak Senior schedule jeopardizes acceptance at competitive schools Change in schedule MUST notify colleges Campus Tours & Visits Employment Saving for College Expenses Resume Preparation for College Job 5

6 Funding Types Need-Based Funding (must complete FAFSA) Grants Gift aid that does not need to be repaid Require aid applications Loans Borrowed funds that must be repaid with interest Separate promissory notes required Work A set amount that a student can earn by working on campus funded by the Federal Government or the college How does work work? Benefits? 6

7 Funding Types Non-Need Based Funding FAFSA Application not required Merit/Academic Scholarships Based on Admission Information Separate Application/Interview Process? Athletic Scholarships Non-Need Based Loans (Federal Direct, PLUS, Private) Student Loans Parent Loans Alternative Educational Loans 7

8 Four Primary Sources of Aid 1. Federal Programs (FAFSA Application) Pell Grant ($577-$5815) Supplemental Grants: SEOG ($100-$4000) Direct Loans ($3500, $4500, $5500) + $2000 Subsidized vs. Unsubsidized Work Study (amounts vary) 2. California Grant Programs Cal Grant Amounts vary by school segment Separate application 8

9 Sources of Aid 3. Institutional Programs Scholarships Grants Loans Work 4. Outside Resources Community: Rotary, YMCA, Torrance Organizations Parent s Employer Web Sites: Time spent on searches Worthwhile? Outside Scholarships can replace loans/work 9

10 Resources for Parents Parent Programs and Options Employer Reimbursement for Dependents Federal Plus Loan Program Payment Plans Federal IRS Educational Tax Benefits (Publication 970) Savings 529 Plans 10

11 Connecting Admissions & Financial Aid Processes Apply for Admission and Apply for Financial Aid Don t wait for an admission decision to apply for financial aid Schools will prepare & send financial aid awards once student is admitted May 1, 2017 National College Decision Date 11

12 Community College Pathway No SAT/ACT required Placement Tests Priority transfer to UC s and CSU s Honors Transfer Program Transfer Admission Guarantee (UC s) MAKE A PLAN!! Watch out for the I can t transfer traps 12

13 CSU Apply on-line Oct 1- Nov 30; One application for all CSU s Basic Requirements: Completion of A- G Requirements $55 application fee per campus After submitting the application each school will notify you when to send transcripts and any supporting documents 13

14 UC System Apply on-line Nov 1-30; One application for all UC s Basic Requirements: 2 Essays Test Scores $70 application fee per campus Once Admitted: Transcripts Letters of Recommendation maybe requested as a supplemental review 14

15 Private (Independent) Colleges May apply on-line NOW using Naviance via school website Basic Requirements Require: Essay Resume of Extracurricular Activities Letters of Recommendation Additional Requirements may include Secondary School Report (Counselor) Mid Year Report (7 th semester grades-counselor) Transcript ($2/school) 15

16 Where are you applying? Researching and Committing are different efforts Safety Target Reach or Dream School Question Which schools are you considering and which category do they fall into? 16

17 SAT & ACT Testing - additional requirements In your senior year, you can continue to test SAT TESTING ACT TESTING 17

18 Back to Financial Aid: How to Apply Free Application for Federal Student Aid (FAFSA) Required for Federal and State fund eligibility FAFSA now available as of October 1, 2016 FAFSA4caster FSA ID required for E-Signature (both parent & student) Worksheet & Supporting Documentation Each school has its own deadline! March 2, 2017 Watch for earlier deadlines 18

19 How to Apply Prior Prior Year Which tax year to use for the FAFSA? IF YOU PLAN TO ATTEND COLLEGE FROM YOU WILL SUBMIT THIS FAFSA YOU CAN SUBMIT THE FAFSA FROM USING INCOME AND TAX INFORMATION FROM JULY 1, 2016 JUNE 30, JANUARY 1, 2016 JUNE 30, JULY 1, 2017 JUNE 30, OCTOBER 1, 2016 JUNE 30, JULY 1, 2018 JUNE 30, OCTOBER 1, 2017 JUNE 30,

20 How to Apply FAFSA Follow-up Free Application for Federal Student Aid (FAFSA) Always check s from the U.S Department of Education Follow-up may be required Student Aid Report Notification s Supporting documentation requests Tax Transcripts Check for accuracy, signatures & eligibility 20

21 FAFSA on the Web (FOTW) 21

22 Cal Grant Program - How to Apply Cal Grant G.P.A. Verification Form Required for State fund eligibility & awarding Check the status of your Cal Grant at March 2, 2017 How does Torrance process Cal Grant GPA Verification forms? (A great answer on the next slide) 22

23 GPA Verification Process for TUSD Torrance Schools have been collecting seniors SSNs to enable electronic filing of Cal Grant GPA Information Parent signature, student signature and Social Security Number are required for paper forms. Torrance USD will send data to the state well before March 2 nd so info can be verified. Forms available in the back of the Auditorium. Return completed to the Torrance Registrar. Questions? Contact your student s counselor. 23

24 College Board CSS Profile College Board CSS PROFILE Application Required by some Private Institutions Check websites of the schools you to which you apply On-line, two step application process March 2, 2016 (or earlier) For fee application (fee waivers available) 24

25 FAFSA Application Follow up? Submit 2015 Student and Parent Federal Tax Transcripts? Maybe! Some, but not all, schools require Parent and Student Federal Tax Transcripts (if no tax return filed, may be required to submit a non-filing statement ) If selected for Verification by the Department of Education you will be required to submit Federal Tax Transcripts 25

26 FAFSA & IRS Data Retrieval Tool (DRT) Be sure to consider the option the FAFSA offers you to use the IRS Data Retrieval Tool (IRS DRT). Here s how the IRS DRT process works: The IRS DRT takes you to the IRS website, where you ll need to log in by providing your name and other information exactly as you provided it on your tax return. At the IRS site, you can preview your information before agreeing to have it transferred to your FAFSA. When you return to the FAFSA, you ll see that questions that are populated with tax information will be marked with Transferred from the IRS. Don t make any changes to those answers (except where Individual Retirement Account or pension rollovers are involved), or you ll invalidate the information you retrieved. Learn about the IRS DRT at StudentAid.gov/irsdrt (If you got an extension on filing your taxes and didn t file until September or October, find out when your tax returns will be available using the DRT. 26

27 The Financial Aid Formula Cost of Attendance MINUS Expected Family Contribution (EFC) EQUALS Family Financial Aid Eligibility 27

28 Cost of Attendance Direct Expenses (billed directly by school) Tuition and Fees (variable by courses/major) Room & Board (varies by housing options) Indirect Expenses (not billed by school) Books Transportation Personal Expenses This is the most difficult component for families to manage. 28

29 The Expected Family Contribution (EFC) The Expected Family Contribution (EFC) is what the family is expected to pay according to the Federal Government and the information reported on the FAFSA. The Federal Government offers limited resources, so the entire need is not always met. Often the families do have to pay more than the estimated EFC. Institution may calculate their own EFC for allocating their own limited resources by collecting CSS Profile application information. 29

30 How the EFC is Calculated Federal EFC Formula Considers Information provided on FAFSA Income & Assets (does not include home equity or retirement accounts) Both Parent & Student Family Members & Number in College Allowances in methodologies Special Circumstances & Appeals When and how you report? Any additional information the family believes to be important that is not reflected on the FAFSA 30

31 The Formula with Numbers! Example #1 Private Institution Cost of Attendance $50,000 MINUS Expected Family Contribution $15,000 = Financial Need $35,000 Example #2 State Institution Cost of Attendance $15,000 MINUS Expected Family Contribution $15,000 = Financial Need $0 31

32 The Formula with Numbers! School Private UC CA State Community *Estimated Cost/yr. $60,000 $35,000 $24,000 $10,000 **Estimated Family Contribution (EFC) /yr. $10,000 $10,000 $10,000 $10,000 ***Amount of Need for Fin. Aid/yr. $50,000 $25,000 $14,000 0 *Cost for college includes: Tuition & Fees, On-Campus Room & board,books and supplies and personal expenses **Estimated Family Contribution. Amount used above is for demonstration purposes only. *** Need is the difference between Cost and EFC. The financial package could include Grants, Scholarships, Loans, Work/Study. 32

33 Packaging Financial Aid an example Cost of Attendance (COA) $60,000 Expected Family Contribution (EFC) ($15,000) Financial Need (or maximum amount of aid) $35,000 Financial Aid Package Stafford Loan $ 3,500 Perkins Loan $ 2,000 Work Study $ 3,000 Institutional Grant $26,500 Total Awarded $35,000 Unmet Need $0 33

34 The Expectations & Realities Compare Awards from each institution! Not all awards are the same! Is the Cost of Attendance realistic? In State & Out of State Discretionary Expenses The Student Contribution (savings, summer employment) The Parent Contribution (PLUS Loans) The nuances of award funds Work, Loan, Unmet Need 34

35 Federal Net Price Calculator Net Price Calculator Available on every college & university website To increase transparency of awards early in cycle Do not let results deter you from applying and completing admission and aid processes Assist in planning 35

36 Award Notification Notification & Understanding your Award Letter This letter has many names Estimated Final Award Guide Accepting, Declining & Adjusting Awards On-line processes Student Rights & Responsibilities Satisfactory Academic Progress Appeal Requests and Special Circumstances 36

37 When to Pay & Disbursing Awards Commitment Deposits by May 1, 2016 Payment in full for each term or payment plans usually set up before the term starts (watch out for late fees) Fall billing usually in summer months, Spring billing in December For aid to disburse in full, Full-time enrollment required Accepting, Declining & Adjusting Awards Entrance Counseling Requirements for Loan Programs Completing Promissory Notes Finding Employment/Completing Time Sheets 37

38 Tips Put all deadlines on the calendar!!! File taxes early Start a financial aid file Make copies of all documents submitted for all four years Apply for a FSA ID Now Apply Each and Every Year 38

39 Tips Send documents electronically if you can, PDF gives you electronic record of submission Research outside agencies for scholarships Check with each school you are applying to in order to find out what information they require and what their deadlines are Review Websites Use on-line web services tool provided by the school 39

40 Scholarship & Application Services Be Cautious Limit Dependency Do your Homework Manage Expectations Consultants Scholarships Refer to institutional resources on the web 40

41 Thank you! Thank you for being here tonight! You are well on your way to successful financial planning and application cycle! QUESTIONS? 41