An Overview of Financial Aid & the FAFSA - Warwick Valley High School

What is Financial Aid?

Cost of Attendance (COA)

Expected Family Contribution (EFC)

What is the Expected Family Contribution (EFC)?

Calculated using data from the federal application form (FAFSA) and federal formula. It is used to determine student aid eligibility.
For the 2017-18 academic year, the FAFSA may be filed beginning Oct. 1, 2016.
Amount family can reasonably be expected to contribute
Stays the same regardless of college

Five factors considered in calculating the EFC:

Income
Assets*
Household size
Number of students in college
Age of older parent

*Examples of Assets include: 529 Savings Plan**, Educational IRA accounts, prepaid tuition plan, trusts, inheritance, stocks, cash, mutual funds.

**These accounts are reported as parental investments on the FAFSA, including all accounts owned by the student and all accounts owned by the parents for any member of the household.

What is Financial Need?

Free Application for Federal Student Aid (FAFSA)

Completing the FAFSA

Create an FSA ID and password at: https://studentaid.gov/fsa-id/create-account/launch
The FSA ID will provide access to certain U.S. Department of Education websites
- Both the student and a parent need an FSA ID and password to electronically sign the FAFSA
Provide a valid email address for the Student Aid Report (SAR) to be emailed in 3-5 days

Who completes the FAFSA

All U.S. citizens or eligible non-citizens should complete the FAFSA
Report information on both biological/adoptive parents if they live together (even if not married)
- If parents are divorced/separated, list the parent the student lives with most (and step-parent, if remarried) & child support from the noncustodial parent

Documents used to complete the FAFSA:

Federal Income Tax Returns (IRS Data Retrieval)
W-2’s
Driver’s license & SSN
Records of untaxed income
- Child support received/paid
- Workers compensation
Current bank statements
Business & farm records
Records of stocks, binds & investments
Alien Registration number (ARN), if not a U.S. citizen

IRS Data Retrieval Tool

Utilize the IRS Data Retrieval
IRS will authenticate taxpayer’s identity
If match found, IRS populates tax information
Applicant chooses whether or not to transfer data to the FAFSA

Verification

Federal government and/or college may select FAFSA for financial aid verification
Additional documentation that may be requested:
- Signed verification worksheet confirming household information, etc.
- W-2 statements or tax-related information

If corrections are needed, log on to the FAFSA to “Make corrections to a processed FAFSA application.”

Sources of Financial Aid

Types of Financial Aid

Gift Aid

Scholarships (merit/academic)
Grants (need-based)

Self Help Aid

Employment
- Need-based: Federal College Work Study
- Non-need-based: Campus Employment
Loans (need-based and non-need-based)

Gift Aid: Scholarships

INSTITUTIONAL

Academic Scholarship
Commuter Award
Athletic Scholarship
Music Scholarship
Theater Scholarship
ROTC Scholarship

STATE

NY State Scholarship for Academic Excellence
New York State Achievement and Investment in Merit Scholarship (NY-AIMS)

PRIVATE

Endowed Scholarships
Outside Scholarships

Gift Aid: Grants

FEDERAL

Federal Pell Grant: $598 – $5,815
Supplemental Educational Opportunity Grant (SEOG)
TEACH Grant: up to $4,000/year ($16,000 over four years)

STATE

NY State TAP: $500 – $5,165

INSTITUTIONAL

Need-based Grant in Aid

Student Employment

Allows student to earn money to help pay educational costs and learn “real life” work skills
Awarded as Campus Work-Study or Campus Employment
Earnings not applied toward the bill
Student receives a paycheck

Federal Direct Loan (Subsidized and Unsubsidized)

SUBSIDIZED DIRECT

Need-based
Government pays interest earned while in school

UNSUBSIDIZED DIRECT

Financial need is not a consideration
Interest is accrued
Interest payments can be made or deferred

*Freshman base annual loan limit $5,500

Federal Direct PLUS Loan

Borrowers are parents of dependent undergraduate students
FAFSA must be filed to receive a Federal PLUS Loan
Annual loan limit: cost of attendance minus all other financial aid
Fixed interest rate
- Repayment begins after final disbursement for the year unless granted a deferment

Private Loan

Loan in the student’s name
Credit-based
Can borrow up to the cost of attendance minus all other financial aid
Interest rates (fixed or variable), terms, and fees vary with lender

Monthly Payment Plans

Convenient alternative to lump-sum, semester payments
Payments can be made over a specified time period
Annual application fee
No credit review

The CSS Profile

The College Scholarship Service (CSS) Financial Aid PROFILE

Used by some colleges and universities to award their own institutional financial aid funds. This form is in addition to completing the FAFSA
Available October 1. Review the colleges’ websites to determine if the PROFILE is required or for priority filing dates
$25 for the initial application; $16 charged for each additional college you request
Students register and complete the PROFILE online at http://student.collegeboard.org/profile
PROFILE is not required for federal financial aid

Additional information reported on the CSS PROFILE vs. FAFSA

Home value/mortgage information
Private school tuition
Business owner information
Medical and dental expenses
Non-custodial parent information
Outstanding debts
Projected financial information for the coming year
Explanation of special circumstances

Overall points to remember

Read the FAFSA and PROFILE instructions carefully
Financial aid and state requirements and deadlines may vary with institutions
The FAFSA must be completed or renewed every year the student is in college in order to be eligible for financial aid

Key websites

FAFSA on the Web: www.studentaid.gov
Department of Education Student Information: http://studentaid.gov
New York State TAP: www.hesc.ny.gov
Marist College Office of Student Financial Services: www.marist.edu/sfs