FAFSA Fundamentals
2011-2012
Presenter’s Guide
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Presenter’s Objectives
Clarify financial aid terms for students and parents.
Encourage students to fill out the FAFSA on the Web worksheet to help provide a practice run before the real deal.
Discuss reasons why filling out the FAFSA online is the best option.
Highlight financial aid deadlines.
Remind students the FAFSA must be filled out every year they need financial aid.
Inform students the FAFSA isn’t just about student loans; it’s used to apply for federal grants, scholarships and work-study, too.
Impress upon the students in your life that student loans must be repaid, so it’s important to only borrow what you need for school.
Tips for Presenting FAFSA Fundamentals
Choose a comfortable location. Smaller groups are better, if possible.
Create an open atmosphere at the beginning of the session. Encourage parents and students to ask questions.
Consider making copies of the PowerPoint so your audience can follow along.
Provide copies of FAFSA Facts to generate questions after your presentation.
Explain to participants that based on the information they enter, screen shots provided in this presentation may differ from the screens they’ll see when filling out the FAFSA.
Use a large sheet of paper or chalkboard to designate a ‘parking lot’ to keep track of questions that may need further research or discussion.
Review this guide as you prepare for the presentation. Use the FAFSA Fundamentals PowerPoint as a visual aid for the audience and as a prompt for you.
Remember to emphasize all students can succeed by pursuing education after high school. What is Financial Aid?
Financial aid is funding intended to help students pay educational costs, such as tuition, fees, books, room and board and necessary personal expenses.
Financial aid is based on the student’s financial need. Scholarships are based on the student’s special talents and achievements.
The Free Application for Federal Student Aid (FAFSA) is the form students must complete each year they’re requesting aid, including federal grants, work-study, loans and scholarships. The FAFSA can also be used to apply for most state and some private aid.
Requested Information
Here are the items students and parents need to gather before beginning to fill out the FAFSA:
Student and parents’ Social Security numbers.
Driver’s license, if applicable.
Parents’ and student’s income tax returns and investment records.
Bank statements.
Records of untaxed income, such as Social Security benefits, education credits like Hope or Lifetime Learning tax credits and veterans noneducation benefits.
Information on savings and business and farm assets.
Alien registration or permanent resident card (if the student isn’t a U.S. Citizen).
The PIN (Personal Identification Number) the student and parent requested from pin.ed.gov.
Note: Parents’ information is usually only needed if student is considered ‘dependent’ for purposes of awarding financial aid. Have students view the UCanGo2 dependency questionnaire to determine their status.
How to Apply
Go Online �� visit FAFSA.gov to complete the FAFSA electronically.
Print a Copy – visit FAFSA.gov and click ‘FAFSA Filing Options’ to print a paper FAFSA, which must be completed, signed and mailed in.
Get a Paper Copy – call 800.4.FED.AID of 800.730.8913 (TTY) to request a copy of the FAFSA in English or Spanish.
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Why Online?
Online is the recommended method for filling out the FAFSA. Here’s why:
Students and their parents can get step-by-step instructions.
Online form allows students and parents to bypass information that doesn’t apply or has already been entered.
Built-in edits prevent costly errors.
Students and parents can save their application and return to it later.
A Personal Identification Number (PIN) allows students and parents to sign the FAFSA electronically online.
Results will be sent within 2-3 days versus 4-6 weeks for paper processing.
What’s a PIN?
Students can go to PIN.ed.gov to obtain a personal identification number (PIN).
This unique number allows them to ‘sign’ the FAFSA electronically and access their information online.
FAFSA on the Web Worksheet
Students and parents can get the best of both worlds by filling out the FAFSA on the Web worksheet as a practice run before the completing the FAFSA!
The FAFSA on the Web worksheet is a downloadable, printable worksheet that allows parents and students to sit down together and answer questions before going online to fill out the official application.
The worksheet is a great tool to help those who may feel overwhelmed by the paperwork and/or intimidated by the online format.
Estimating the Cost of College
College expenses vary, depending on factors like the type of college or university, the number of courses taken and the students’ major. However, tuition at Oklahoma state colleges and universities is considerably lower than average tuition at similar institutions in other states. Encourage students and parents to visit the Paying for College section at OKcollegestart.org to view current tuition rates and estimated college costs.
The FAFSA4caster is a useful tool for students and parents. It can help you plan more effectively to meet college costs. It will help you understand your options for paying for college and provide estimates of your federal financial aid eligibility. Visit the homepage of FAFSA.gov to find the FAFSA4caster link.
Financing a college education means more than just paying tuition. It’s important that students and parents understand all of the costs involved, including room and board, books, lab fees, online access fees, spending money, etc. Where will the student live? What’s the most economical mode of transportation? Who will pay for utilities? Encourage participants to create a budget to estimate the real costs of college.
Don’t Miss Deadlines
FAFSA Deadlines:
Check with the school’s financial aid office for their priority deadlines.
State Aid:
Check FAFSA.gov for state deadlines, which can be as early as March 15.
Other Grants and Scholarships:
Keep and review grant and scholarship paperwork for important deadlines.
What Happens Next?
Once the FAFSA is submitted, students will receive a Student Aid Report (SAR). The SAR is a summary of the information submitted on the FAFSA. The SAR will NOT indicate how much financial aid the student will receive.
The SAR includes the Expected Family Contribution (EFC). Very few students get a free ride to college. The federal government expects the family to contribute to their child’s education, if possible. The EFC is the estimated amount the federal government believes the family is capable of contributing toward the student’s Cost of Attendance (COA) for the academic term.
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Schools the student requests on the FAFSA will receive the results electronically and use the information to determine the student’s eligibility for grants, scholarships, work-study and student loans. Students should watch their mail carefully for correspondence from the school requesting any additional documents needed to complete their financial aid application.
Now What: Receiving an Award Letter
When a student receives an award letter from a school, it may contain several key elements:
Cost of Attendance (COA) – an estimate of a student’s educational expenses for a specific period of enrollment. COA includes tuition, fees, books, room and board, transportation and personal expenses.
Expected Family Contribution (EFC) – the amount of money a family may be expected to contribute to the student’s education for the academic term.
Grant Eligibility – the letter should list any grants and/or scholarships a student is eligible to receive, including federal grant programs such as the Pell Grant and state grants such as the Oklahoma Tuition Aid Grant (OTAG).
Work-Study Eligibility – a student eligible for the federal work-study program will be allowed to work part-time while enrolled in school to help pay educational expenses.
Federal Subsidized Loans – the award letter will include the total amount of subsidized loans a student can receive. Subsidized loans are low-interest loans based on financial need. Interest is paid by the federal government while the student is in school at least half-time.
Federal Unsubsidized Loans – the letter should also include the total amount of unsubsidized loans a student can receive. Unsubsidized loans are low-interest loans that aren’t based on financial need. The student is responsible for all interest accrued from the date the loan is disbursed.
Additional Aid – the award letter will include any additional financial aid the school is aware of. Students must report all aid received to their financial aid office.
Encourage parents and students to compare the total cost of college with the amount of aid offered in the award letter. Financial need is determined by subtracting the EFC and any additional aid from the COA at the chosen school.
Students are NOT required to accept all aid that’s offered. Borrowing only what is needed to pay school expenses will save money in the long run! Suggested Talking Points for FAFSA Fundamentals
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It’s important to remember that if you want to go to college there are many options out there to help you achieve that goal
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When I say ‘college’, I’m referring to any education past high school such as technology centers or trade schools
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As you all know, college is an investment in your future and financial aid is available to help pay for your education
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Financial aid can help with various educational costs such as those listed here
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Your aid can also assist with additional expenses like daycare
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By completing the FAFSA, you’ll be applying for most types of federal and state aid
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There are two ways to apply:
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Online at FAFSA.gov
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Request a paper application by calling 800-4-FED-AID
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Online application is strongly recommended
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Here’s a screen shot of the FAFSA.gov home page where you can start completing your FAFSA application online
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Remember to use FAFSA.gov, not FAFSA.com
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You should never pay to complete the FAFSA
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Online is the easiest and most efficient way to complete the FAFSA
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The online processing time is approximately 2-3 days, while a paper application may take up to 4-6 weeks
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The online process provides ‘Help & Hints’ boxes on every page to assist you with questions, and includes built-in edits to help prevent errors
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Save yourself some time; next year you’ll be able to complete a renewal FAFSA with some answers already pre-populated with your information
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Don’t forget, complete the FAFSA as soon as possible after Jan. 1st of each year you need financial aid
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Another great feature is ‘skip logic’, which automatically bypasses unnecessary questions based on answers you’ve already provided
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The PIN is a 4 digit number assigned to you (and your parent)
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The personal identification number, or PIN, allows you to sign your FAFSA and some student loan applications online
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Each student and one parent must have a PIN
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You can request a PIN at PIN.ed.gov or link to it from the home page of FAFSA.gov •
The FAFSA on the Web worksheet acts as a ‘practice run’ before you complete the actual online application
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Don’t mail this worksheet in to the FAFSA processing center; it’s only a tool to help you compile your information
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The FAFSA on the Web worksheet can be found on the homepage of FAFSA.gov
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Type “FAFSA on the Web Worksheet” in the search box and click ‘Search’
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For an estimate of your financial aid eligibility, check out FAFSA4caster at FAFSA.gov
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Here’s a screen shot of the FAFSA on the Web worksheet
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These are some of the items you’ll need to have available when you complete your FAFSA
• Students should provide an e-mail address for correspondence about the FAFSA
• Be prepared with the school names and/or school codes you wish to receive your FAFSA results
• If you don’t have the school codes, you can find them easily as you enter school names on the FAFSA application
• Deadlines are very important when applying for financial aid
• Always apply as soon after January 1 as possible for each year you’re requesting financial aid
• Check with your school’s financial aid office for priority deadlines
• Review all scholarship applications for their deadline dates •
Oklahoma offers a grant program called the Oklahoma Tuition Aid Grant, or OTAG
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You apply for this grant by completing the FAFSA
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The deadline date for the OTAG is March 15
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There are six sections of the FAFSA
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Each section requires specific information about the student and the parent, such as demographic and financial data
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Use your full name as shown on your Social Security card
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If your name and Social Security number (SSN) don’t match, your FAFSA will be rejected
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‘Help & Hints’ boxes are located on each screen to assist you
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A commonly made mistake is entering the current year as your birth year
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Enter your marital status as of the day you submit your FAFSA
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For example, you can’t select ‘married’ if your wedding date is two months from now
• If you’re an 18 year-old male and haven’t signed up for Selective Service, you may do so on your FAFSA application
• Males who have not registered will not qualify for financial aid
• If you’re 17 now, go ahead and check ‘Register Me’; your information will be submitted on your 18th birthday •
Students are required to indicate the high school from which they will graduate
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If your high school doesn’t appear when you search by school name, you can search by city or state
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NOTE: This question will not be shown if you received a GED or were home-schooled
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This section allows you to send your FAFSA results to ten different schools
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If you don’t know the school’s six-digit code number, you may search by name, city or state
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Here you can choose your housing plans and view some great information about each school
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It also provides links to each school’s website where you can view their graduation rate and approximate school costs
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Your answers to these questions will determine your dependency status for the FAFSA
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If you can answer ‘Yes’ to one question, you’ll be considered an independent student
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If not, you’re considered a dependent student
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These guidelines indicate if parental information must be shown based on your dependency status
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Independent students who are married must also show spousal information
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If you’d like to view the FAFSA dependency status questions, go to UCanGo2.org and click the ‘Resources’ tab •
If there’s a special circumstance prohibiting you from providing parental information, it’s highly recommended that you speak to the financial aid office at the school you’ll attend
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Many schools have specific procedures they follow to handle this question
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As you indicate your parent’s marital status, click the blue ‘Parent’ link in the ‘Help and Hints’ box to find these tips regarding whose financial information to include on the FAFSA
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List parent name, birth date and income information in this section
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If you’re unsure who should be counted in your household size, a complete definition is shown here 17
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If your parent has recently been laid off from a job or is receiving unemployment benefits, s/he might be considered a Dislocated Worker
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A definition will appear in the ‘Help and Hints’ box online to assist you in answering this question
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Read the Dislocated Worker information carefully before selecting ‘Yes’
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If you answer ‘Yes’, you may be asked to provide additional documentation to your school’s financial aid office
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This section requests information on untaxed income
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If you’re unsure, click on each source of income for a brief description
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The ‘Help and Hints’ box will provide the corresponding line numbers on your tax return •
Students choose the type of tax return they completed for 2010 here
• IRS Data Retrieval for 2011-12 has enhanced features
• This process allows you to transfer your tax data directly from the IRS website to your FAFSA application
• Electronically filed tax data will be available within 1-2 weeks after you submit your tax return
• Paper tax return figures will be available online within 6-8 weeks
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Tax data moved from the IRS website will have the notation ‘Transferred from the IRS’
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This will be shown on the FAFSA results received by your school(s)
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This is the actual screen shot of the FAFSA where you can choose to transfer the tax data
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For more specific details on this process, click ‘How it Works’
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A preparer is someone you pay to help you complete the FAFSA
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Free help is available from any school’s financial aid office or the national hotline at 800.4.FEDAID
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Click the button at the top of the page to review your FAFSA information for accuracy before it’s submitted
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You and your parent electronically sign here using your PIN
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If you don’t have a PIN, click on the link provided to request one
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When you’re done, don’t forget to hit ‘Submit’ •
Your confirmation page will have an estimated Expected Family Contribution (EFC) figure
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Financial aid offices use this number to determine the student’s eligibility for assistance
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More information about the FAFSA can be found at UCanGo2.org/FAFSA
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The Student Aid Report (SAR) is a summary of the information provided on your FAFSA
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Review for any errors and make corrections as needed
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The Expected Family Contribution (EFC) is a number calculated from the FAFSA information
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Financial aid offices use the EFC to determine a student’s eligibility for aid programs
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The Cost of Attendance (COA) is an estimate of educational expenses for a particular school
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The COA includes average expenses such as tuition, fees, books and living expenses •
Financial Need is determined by your school’s financial aid office
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They subtract your EFC and any Other Aid (such as scholarships) from your school’s COA
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The difference is your financial need
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Financial aid is awarded based upon this calculation
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Students selected for verification will be required to submit copies of their tax forms to the school’s financial aid office
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If you’re a dependent student, your parent’s tax forms must be submitted, as well
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Schools use the tax forms to verify the information shown on the FAFSA application
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Additional information like W-2’s and institutional forms are often requested, as well
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Your financial aid won’t be awarded until you’ve completed this process
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When your financial aid file is complete, the aid office will send an award letter which lists all the types of aid you’re eligible to receive
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This may be sent via paper or electronically; the schools you’ve applied to will determine the process
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Make sure you understand all financial aid awarded
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You don’t have to accept everything offered; just respond by the school’s deadline
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There are two types of financial aid
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) Need-based aid is based on financial need
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) Merit-based aid is based on academic accomplishments or special talents
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The next 3 or 4 slides will cover some federal financial aid programs
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The Pell Grant and Federal Supplemental Educational Opportunity Grant are need-based grants for undergraduates without a bachelor’s degree
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You apply for both by completing the FAFSA •
Work-Study is a program based on a student’s financial need that allows them to work part-time on or off campus
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The Perkins Loan is a low interest loan that provides borrowers with nine months before repayment begins after they graduate, leave school, or drop below half-time status
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Not all schools participate in these programs
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Subsidized Federal Loans are low interest loans offered by the government
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They’re awarded based on financial need and the interest is paid by the government for a specified period of time
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Loans must be paid back, so only borrow what you need for school
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Unsubsidized loans aren’t based on financial need
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Students who don’t qualify for a subsidized loan may still be eligible for an unsubsidized loan
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Borrowers can pay the interest on this loan while in school, or wait until they graduate or withdraw
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nterest will begin to accrue after the first disbursement has been made
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Parents of dependent students can apply for the Parent Loan for Undergraduate Students (PLUS) to supplement their child's financial aid award
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To qualify, the parent must be credit-worthy and will be responsible for repaying the loan immediately after disbursement
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To be considered for this loan, the student must complete a FAFSA application
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The Oklahoma Tuition Aid Grant (OTAG) is a state grant for eligible Oklahoma residents
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It��s awarded based on financial need
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Funds for this grant are limited
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Application deadline is March 15
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Apply for the OTAG by completing the FAFSA application
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Complete the FAFSA as soon as possible after January 1 of each year you’ll need financial aid
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Never pay to complete the FAFSA
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Apply on-line at FAFSA.gov
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Beware of FAFSA.com; it will allow you to file the FAFSA, but will require payment 27
Resources
Oklahoma State Regents for Higher Education
OKcollegestart.org | 800.858.1840
Oklahoma Guaranteed Student Loan Program
OGSLP.org | 800.442.8642
UCanGo2
UCanGo2.org | 866.443.7420
Free Application for Federal Student Aid (FAFSA)
FAFSA.gov
FastWeb Free Scholarship Search
FastWeb.com
Federal Student Aid
StudentAid.ed.gov | 800.4.FED.AID (433.3243)
Guide to Federal Student Aid
StudentAid.ed.gov/students/publications/student_guide/index.html
Mapping Your Future
MappingYourFuture.org
Oklahoma College Savings Plan
OK4Saving.org | 877.654.7284
Oklahoma GEAR UP
OKHigherEd.org/gearup | 800.858.1840
Oklahoma Money Matters
OklahomaMoneyMatters.org | 800.970.OKMM (6566)
Oklahoma’s Promise
OKPromise.org | 800.858.1840 Questions students should ask about financial aid
What’s the total cost of the program including books, fees, tuition and housing?
What types of financial aid are available?
What percentage of your student body receives financial aid?
Who do I contact in this office when I have questions about financial aid?
When should I expect a response?
What are your priority deadlines for submitting the FAFSA and other aid?
Will my award letter come by mail or electronically?
Are scholarships available through your college? How can I apply?
Is there a federal work-study program available on this campus?
Students can find answers by visiting a school’s financial aid website or speaking with a financial aid counselor.
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Oklahoma Guaranteed Student Loan Program
an operating division of the Oklahoma State Regents for Higher Education