FINANCIAL AID 101 Financial Aid Applications

FINANCIAL AID 101

Financial Aid Applications • FAFSA – (Free Application for Federal Student Aid) – www. fafsa. ed. gov • Promise Application – www. cfwv. com • Institutional Applications • Private Scholarship Applications West Virginia Higher Education Policy Commission 2

WWW. FAFSA. GOV • • Available January 1, 2014 Promise deadline March 1, 2014 WV State Grant deadline April 15, 2014 Do NOT use fafsa. com – charges a fee West Virginia Higher Education Policy Commission 3

The FAFSA – A Five Step Process Section 1 - - Student Information Section 2 –- Student Dependency Status Section 3 –- Parental Information Section 4 –- Student Finances Section 5 – List of Schools West Virginia Higher Education Policy Commission 4

How is Dependency Determined? • At least 24 years old by December 31 st of the year preceding the award year; • Graduate or professional student; • Married; • Has legal dependents other than a spouse; • Both parents deceased or ward of the court; West Virginia Higher Education Policy Commission • Veteran or active duty for purpose other than training of the U. S. Armed Forces; or • Foster care, emancipated minor, legal guardianship; • Homeless or unaccompanied youth. 5

FAFSA on the Web: Advantages: • Answer only questions applicable to student/parent • Reduces the number of errors • Processed quicker • Date received is the date submitted electronically • Corrections can be made electronically • Parents with multiple children in college will able to transfer their information to other children’s applications West Virginia Higher Education Policy Commission 6

Frequent FAFSA Errors • • Social Security Number Parent Information Drug Question Untaxed income U. S. income taxes paid Household size Number in postsecondary education FAFSA Year West Virginia Higher Education Policy Commission 7

IRS Link to FAFSA • Available February for 2014 -2015; • Allow applicants and parents of dependent applicants to transfer 2013 tax return information from an IRS Web site directly into their FAFSA; • Available for initial FAFSA or correction about 2 weeks after filing tax return electronically. West Virginia Higher Education Policy Commission 8

IRS Link to FAFSA • If not available when you initially complete FAFSA, you can go back once taxes are done and update the FAFSA using the IRS Data Retrieval Process West Virginia Higher Education Policy Commission 9

IRS Link to FAFSA • In order to use the IRS Link on the FAFSA, you must enter the exact information into the website as appears on your 2013 federal tax return • SSN • Date of Birth • Address • Filing Status West Virginia Higher Education Policy Commission 10

Signatures • Required – Student – One parent (dependent students) • Format – Electronic using PIN – Signature page – Paper FAFSA West Virginia Higher Education Policy Commission 11

Federal Student Aid Personal Identification Number (FSA PIN) • Apply for PIN when completing the FAFSA • Sign FAFSA electronically • May be used by students and parents throughout aid process, including subsequent school years • Website: www. pin. ed. gov West Virginia Higher Education Policy Commission 12

FAFSA ON THE WEB • A side note: • Any time you submit something online with FAFSA on the Web, you will be given a “Confirmation Page” to confirm your transaction. • Always print and keep your confirmation page for future reference. It may prove helpful if a dispute arises. West Virginia Higher Education Policy Commission 13

FAFSA ON THE WEB • Application is processed in order it was received usually within 72 hours • If you provide e-mail address, you will receive an e-mail with a “link” to view your Student Aid Report (SAR) on-line • Important that you review your Student Aid Report West Virginia Higher Education Policy Commission 14

Making Corrections If necessary, corrections to FAFSA data may be made by: • Using FAFSA on the Web (www. fafsa. gov) if student has a PIN; • Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or • Submitting documentation to college’s financial aid office West Virginia Higher Education Policy Commission 15

Verification • The U. S. Department of Education randomly selects; • Student must comply with institutional request for information; • Use either IRS Data Retrieval Process as part of FAFSA, or • Must contact IRS to request a tax transcript be sent at www. irs. gov or by calling 1 -800 -9089946 West Virginia Higher Education Policy Commission 16

Special Circumstances (Professional Judgment) • Cannot report on FAFSA • Send written explanation to financial aid office at each college • Examples include but not limited to: – Change in employment status – Medical expenses not covered by insurance – Change in parent marital status West Virginia Higher Education Policy Commission 17

FAFSA 4 caster • Does not replace FAFSA; • Allows you to get early estimate of eligibility of Federal Aid; • www. federalstudentaid. ed. gov West Virginia Higher Education Policy Commission 18

2014 -2015 Paper FAFSA • Order a Paper FAFSA by calling 1 -800 -4333243; • Can download and print off paper FAFSA by going to www. federalstudentaid. ed. gov; • Cannot submit FAFSA on the Web Worksheet as a paper FAFSA. West Virginia Higher Education Policy Commission 19

Basic Application Flow • Student and school receive FAFSA information from federal processor (student receives the Student Aid Report (SAR), school receives the info electronically) • School matches admissions record with financial aid application and determines eligibility • School mails award letter to student • Student mails award letter back to school West Virginia Higher Education Policy Commission 20

Financial Aid Timeline • Applying to schools, taking ACT/SAT, searching and applying for private and institutional scholarships (Throughout senior year) • Apply for Aid (January-February 2014) • Receive Award Letter (March-May) • Comply with Information Requests (March-May) • Verification and Aid Coordination (Spring&Summer) • Financial Aid Disbursed (Start of first term) • Re-apply for Aid (January-February 2015) West Virginia Higher Education Policy Commission 21

Basic Equation of Need Cost of Attendance (COA) - Expected Family Contribution (EFC) = Student’s Financial Need (eligibility) West Virginia Higher Education Policy Commission 22

Cost of Attendance (varies from school to school) • • • Tuition and fees Room and board Books and supplies Transportation Miscellaneous personal expenses Loan fees, study abroad costs, dependent or elder care expenses. West Virginia Higher Education Policy Commission 23

Determining the Expected Family Contribution (EFC) • Income • Asset Equity (excluding home equity) • Family Size • Number of Family Members in College (excludes parent enrolled in college) • Age of Parents West Virginia Higher Education Policy Commission 24

Federal Pell Grant Program • Eligible students – Undergraduates pursuing first baccalaureate or professional degree – Aid administrator determines actual award amount based on enrollment status, and EFC (under 5, 157) • Award amounts – Up to $5, 730 maximum (in 2014 -2015) West Virginia Higher Education Policy Commission 25

Federal Supplemental Educational Opportunity Grant (FSEOG) • Eligible students – Undergraduates pursuing first baccalaureate or professional degree – Awarded first to students with exceptional financial need (i. e. , students with the lowest EFCs at that school) – Priority to Federal Pell Grant recipients • Annual award amounts – $100 minimum – $4, 000 maximum West Virginia Higher Education Policy Commission 26

West Virginia Higher Education Grant • Must be WV resident • Awards range from $2, 500 to $2, 100 depending on the EFC. • The student must enroll full-time at an approved institution, demonstrate need, and file the FAFSA by April 15, 2014. • Students must have a 2. 0 high school gpa to be eligible • Students must maintain 2. 0 gpa and complete 24 credits to renew it. West Virginia Higher Education Policy Commission 27

Higher Education Adult Part-Time Student (HEAPS) Grant • Need-based grant • Decentralized administration – Contact Institutional Aid Office for more details and to apply • Traditional part-time enrollment • Maximum award cannot exceed part-time tuition and fee charges or $176 per credit hour at a nonpublic institution for 13 -14 West Virginia Higher Education Policy Commission

HEAPS Workforce Grant • Application becomes available on July 1; • Contact the school for application • Student must complete FAFSA and have financial need • Can receive up to $2, 000 or tuition and fees • For Certificate or short-term training programs like certified medical training, mining, gaming, etc. West Virginia Higher Education Policy Commission

Requirements for the PROMISE Scholarship • • Core Requirements English – 4 credits Mathematics – 4 credits Social Sciences – 4 credits Natural Sciences – 3 credits – The core grade point average includes all core classes; grades are calculated using the county grading policy West Virginia Higher Education Policy Commission 30

Requirements for the PROMISE Scholarship Eligibility Requirements • 3. 0 GPA in the core and overall coursework • 22 on the ACT (minimum of a 20 in each of the subject areas) or • 1020 on the SAT (490 verbal, 480 Math) – Writing sections NOT included • June 7, 2014 last SAT date • June 14, 2014 last ACT date West Virginia Higher Education Policy Commission 31

2014 Eligibility Criteria and Deadlines For the PROMISE Scholarship • • PROMISE application deadline is March 1, 2014; Ensure student uses correct SSN Submit the FAFSA by March 1, 2014 When students submit PROMISE application, student needs to keep copy of the confirmation page; West Virginia Higher Education Policy Commission 32

PROMISE Scholarship • Tuition and mandatory fees at any West Virginia public or private non-profit college up to $4, 750 • PROMISE is renewable (for up to 8 semesters for a 4 year degree or 4 semesters for a 2 year degree) as long as the student maintains a 3. 0 in college and completes 30 credit hours in a 12 month period. • Student may request consideration for deferment if going out of state for up to a year or if other circumstances, please contact our office West Virginia Higher Education Policy Commission 33

PROMISE Scholarship • Students go to www. cfwv. com • Create an account with username and password • Allows you to go back and make any corrections to your PROMISE application • Allows you to see the status of your PROMISE application West Virginia Higher Education Policy Commission 34

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Federal Work-Study • Employment during school • Job may be on or off campus • Income is taxable (state and federal) • Excluded from student’s total income reported on next year’s FAFSA • Program varies from school to school West Virginia Higher Education Policy Commission 36

Teach Grant • Students can receive up to $4, 000 a year; • Cannot exceed $16, 000 for undergraduates or $8, 000 for graduates; • Student must have 3. 25 gpa; • Commit to teach full-time for 4 years within their first 8 years out of school or it becomes a loan; • Must teach either math, science, special education, foreign language, reading specialist, or field designated by a state as high-need at at at a. Title I school. West Virginia Higher Education Policy Commission 37

Teach Grant • If student does not fulfill commitment: – The grant becomes like an unsubsidized loan – Interest from the time grant was disbursed is added to the amount to be paid back. West Virginia Higher Education Policy Commission 38

Engineering, Science and Technology Scholarship Merit-based scholarship/forgivable loan March 1 application deadline 3. 0 overall GPA Enrolled or accepted for enrollment full-time in an engineering, science or technology program (4 -yr, 2 yr or certificate) • Maximum annual award amount is $3, 000 • Application at www. cfwv. com • • West Virginia Higher Education Policy Commission

Underwood-Smith Teacher Scholarship • Merit-based scholarship/forgivable loan • March 1 application deadline • Must be enrolled as a full-time student in a course leading to a certification as a teacher at the pre-k, elementary, middle or secondary level • Must have a 3. 25 GPA after completing 2 years of course work (due to limited funding, high school applicants are not eligible) • Maximum annual award amount is $5, 000 • Application at www. cfwv. com West Virginia Higher Education Policy Commission

Federal Perkins Loan *** • Eligible students (priority to those with exceptional need) • Annual and aggregate loan limits – $5, 500 annually for undergraduates – $8, 000 annually for graduates – $27, 500 aggregate for undergraduates – $60, 000 aggregate for graduates • Interest rate: 5% • Nine-month grace period • Deferment and cancellation provisions available ***Subject to change West Virginia Higher Education Policy Commission 41

Federal Stafford Loan (Subsidized and Unsubsidized) • Annual loan limits • Subsidized Stafford: must demonstrate “need” and up to 150% of the program • Unsubsidized Stafford: “need” is not a consideration • Repayment does not begin until 6 months after student drops below 6 credit hours. • Loan Fee of 1. 051% • Interest Rate (variable-fixed) 3. 86% until July 1, 2014 for undergraduates West Virginia Higher Education Policy Commission 42

Federal Stafford Loan Grade Level Subsidized Unsubsidized Total Dependent Student Additional Unsub Total Freshman $3, 500 $2, 000 $5, 500 $4, 000 $9, 500 Sophomore $4, 500 $2, 000 $6, 500 $4, 000 $10, 500 Junior $5, 500 $2, 000 $7, 500 $5, 000 $12, 500 Senior $5, 500 $2, 000 $7, 500 $5, 000 $12, 500 $20, 500 - - $20, 500 Graduate West Virginia Higher Education Policy Commission 43

Federal PLUS Loan • Parent borrows on behalf of dependent undergrad • Approval subject to credit check • Loan limits – Annual limit: cost of attendance less other aid – Aggregate limit: none • Interest rate variable-fixed at 6. 41% until July 1, 2014 • Loan fee of 4. 204% • Repayment begins 60 days after final disbursement or 6 months after student drop below half-time; • Graduate Students are eligible to apply for a PLUS loan West Virginia Higher Education Policy Commission 44

Institutional Aid • Academic Scholarships • Performance Scholarships • Entitlement Scholarships • Merit and Need-based Scholarships and Grant • Need-based Grants and Loans West Virginia Higher Education Policy Commission 45

Private Aid • Community Organizations • Churches • Employers and Labor Unions • Professional Associations • Corporations / Foundations • Private Loans West Virginia Higher Education Policy Commission 46

Upromise www. upromise. com • Save for college as you spend, or • Repay your student loans • Rebate from products and services you purchase will automatically be entered into your account. • Once you earn $50 quarterly, it will be send to your designated account. West Virginia Higher Education Policy Commission 47

www. upromise. com Example of some of the hundreds of companies that participate • LLBean 2% • i. Tunes. com 2% • Walmart. com 1% • Sears. com 5% • Mc. Donalds 1% • Target. com 2% • Dick’s Sporting Goods 3% • Homedepot. com 3% • Lands End 3% • JCpenny. com 3% • Exxon-Mobil 1 cent per gallon • DELL. com 2% • Expedia. com 1% West Virginia Higher Education Policy Commission 48

Additional Financial Resources • Inquire about tuition installment plans – Spreads tuition payments over several months – Low sign-up fees, low to no interest charged • Consider alternative loan programs – Federal non-need based educational loans – Private educational loans – Home equity or line-of-credit loans • Using Smart 529 Plan – WWW. SMART 529. COM West Virginia Higher Education Policy Commission 49

Additional Financial Resources • Check into tax benefits for education – American Opportunity Tax Credit – Lifetime Learning Credit – Educational IRAs – Deduction for interest payments on educational loans (consult your tax advisor) West Virginia Higher Education Policy Commission 50

Consumer Protection • As a general rule, never pay money to get scholarships or apply for financial aid. • You do not have to pay to complete the FAFSA – do NOT use www. fafsa. com • HEPC and colleges provide free financial aid counseling and assistance West Virginia Higher Education Policy Commission 51

Sources of General FA Information • Websites – www. cfwv. com – Financial Aid Information Page (www. finaid. org) – U. S. Department of Education (www. studentaid. ed. gov) – www. fastweb. com – www. collegeboard. com – www. gibill. va. gov – www. givetowestvirginia. org West Virginia Higher Education Policy Commission 52

Academic Common Market • Selected programs not offered by colleges and universities in West Virginia – Students can receive in-state tuition at participating institutions – Go to www. sreb. org for more information West Virginia Higher Education Policy Commission 53

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College. Cost. ed. gov 55

Student. Loans. ed. gov 56

Credit Cards • Credit Card balance of $2, 000; Interest rate of 18%; • How long to pay off with minimum monthly payment of interest plus 1% of principal? – Assumes the person stops using the credit card. 15 Years West Virginia Higher Education Policy Commission 57

How Much Does That Latté Really Cost? Suppose you buy a latté every weekday at a cost of $3 each: Daily cost - $3 Weekly cost - $15 Yearly cost - $780 4 Years in College - $3, 120 West Virginia Higher Education Policy Commission 58

Identity Theft • Report theft to 3 major credit reporting agencies; • Notify bank and credit cards that you carry; • Check online accounts; • Contact local police to file criminal report; • Contact Social Security Fraud Hotline; • Notify Department of Motor Vehicles; • File complaint with Federal Trade Commission • Document and keep copies of all West Virginia Higher Education Policy Commission correspondence 59

Identity Theft • Experian – www. experian. com 1 -888 -397 -3742 • Equifax – www. equifax. com 1 -800 -525 -6285 • Trans. Union – www. transunion. com 1 -800 -680 -7289 • FTC – www. consumer. gov/idtheft 1 -877 -438 -4338 • Social Security Fraud Hotline – 1 -800 -269 -0271 West Virginia Higher Education Policy Commission

February 9, 2014 25 locations throughout the state from 1 pm-4 pm www. cfwv. com for more information West Virginia Higher Education Policy Commission 61

Customer Service ANY PROBLEMS: Call customer service for Federal Financial Aid: 1 -800 -433 -3243 Call customer service for State Financial Aid: 1 -888 -825 -5707 West Virginia Higher Education Policy Commission 62

PROMISE Scholarship • What do students have to do to apply? – Fill out the PROMISE application and FAFSA • What is the deadline? – March 1 • Where do students go to complete the PROMISE application or get more information? – www. cfwv. com West Virginia Higher Education Policy Commission

Higher Education Grant • What is the deadline? – April 15 • What is the application? – FAFSA • What is the web site for the FAFSA? – www. fafsa. gov West Virginia Higher Education Policy Commission

Contact Information Brian Weingart Senior Director of Financial Aid WV Higher Education Policy Commission 1018 Kanawha Boulevard, East Charleston, West Virginia 25301 bweingart@hepc. wvnet. edu 304 -558 -4618 or 888 -825 -5707 West Virginia Higher Education Policy Commission