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What You �Need to Know �About Financial Aid

Brenda Hicks, FAAC® Director of Financial Aid, Southwestern College

2020-2021 NASFAA National Chair

National Association of Student �Financial Aid Administrators Presents …

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Topics We Will Discuss

Financial Aid Terminology
Categories, types, and sources of financial aid
Free Application for Federal Student Aid (FAFSA^®)
Special and unusual circumstances

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What Is Financial Aid?

Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses

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What Is Cost of Attendance (COA)?

Tuition and fees

Housing and food

Books and supplies

Transportation

Miscellaneous and personal

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Number resulting from the evaluation of a student’s (and family’s) approximate financial resources for a student’s postsecondary education

Student contribution

Parent contribution

(for dependent students)

What Is Student Aid Index (SAI)?

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Cost of attendance (COA) – Student aid index (SAI) = Financial need

What Is Financial Need?

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Categories of Financial Aid

Need-based aid

Non-need-based aid

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Types of Financial Aid

Scholarships

Grants

Work-Study Employment

Loans

Gift Aid

Self-Help Aid

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Sources of Financial Aid

Federal Government

States

College and Universities

Private Sources

Employers

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Federal Government

Largest source of need-based financial aid

Aid provided primarily based on financial need

Must apply each year using the FAFSA

Eligibility requirements must be met

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Federal Student Aid Programs�www.studentaid.gov

Federal Pell Grant

Federal Supplemental Educational Opportunity Grant (FSEOG)

Teacher Education Assistance for College and Higher Education (TEACH) Grant

Federal Work-Study (FWS)

Federal Direct Student Loans (Direct Loans)

Federal PLUS Loans

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Kansas Aid Programs �https://www.kansasregents.org/students/student_financial_aid

Kansas Comprehensive Grant (KCG)

Kansas State Scholarship

Kansas Ethnic Minority Scholarship

Kansas Career Technical Workforce Grant

Kansas Teacher Service Scholarship

Kansas Nursing Service Scholarship

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Colleges and Universities

Aid provided based on both merit and financial need

Aid may be gift aid or self-help aid

Use information from the FAFSA and/or institutional applications

Deadlines and application requirements vary by institution

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Private Sources

Foundations, businesses, churches, civic,�and charitable organizations

Deadlines and applications procedures vary

Begin researching private sources early

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Employers

May have scholarships available�to the children of employees

May have educational benefits for their employees

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Free Application for Federal Student Aid (FAFSA^®)

Online FAFSA

PDF FAFSA

FAFSA on the Phone (FOTP)

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Free Application for Federal Student Aid (FAFSA^®)

Collects demographic and financial information
Information used to calculate the student aid index (SAI)
Colleges use SAI to offer financial aid
Available in English and Spanish

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Free Application for Federal Student Aid (FAFSA^®)

May be filed at any time during an academic year, but typically no earlier than October 1^st prior to the academic year for which the student requests aid
For the 2024-25 academic year, the FAFSA may be filed starting in December 2023 (exact date to be determined)
Colleges may set FAFSA priority dates

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Federal Student Aid Estimator

Early estimation of SAI and possible Title IV aid eligibility
Requires demographic, income, and asset information

https://studentaid.gov/aid-estimator

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Account Username and Password (studentaid.gov account)

Used for FAFSA completion �and access to certain U.S. Department of Education websites
Student and parent must �create their own, unique studentaid.gov account
May be used throughout �financial aid process, �including subsequent �school years

Apply at https://studentaid.gov/fsa-id/create-account/launch

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Online FAFSA

Note: Online FAFSA screenshots from U.S. Department of Education’s 2024-25 FAFSA Form Preview Presentation, July 2023

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Terminology Changes

Financial Aid Award Letter = Financial Aid Offer

Room & Board = Food & Housing

Book & Supplies = Books, Supplies, Course Materials & Equipment

Household Size = Family Size

Special Circumstances ^{(13 questions)}= Unusual Circumstance

Contributors and Consent

Expected Family Contribution (EFC) = Student Aid Index (SAI)

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Household Size > Family Size

Household = Family Size on the FAFSA form
Aligns with the number of individuals included as dependents on either:

the applicant's (if independent) or
applicant's parents' (if dependent) U.S. tax return.

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Who Is Included in Family Size?

Dependent Filers

Student
Parent (and spouse)
Parent’s dependent children, even if they live apart from the parent because of college enrollment*
Other people if they live with the parent*

Independent Filers

* Included only if providing more than half of their support between July 1, 2024 and June 30, 2025

Student (and spouse)
Student’s dependent children, even if they live apart from the student because of college enrollment*
Other people if they live with the student*

Dependent Filers

Student
Parent (and spouse)
Parent’s dependent children, even if they live apart from the parent because of college enrollment*
Other people if they live with the parent*

Independent Filers

Student (and spouse)
Student’s dependent children, even if they live apart from the student because of college enrollment*
Other people if they live with the student*

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FAFSA Contributors

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Inviting Contributors

Students will need parent or spouse: name, date of birth, SSN, email address

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Independent Student Status Changes

Students with unusual circumstances will be granted “provisional independent” status

Will be able to complete the FAFSA without providing parental information
Will receive an estimate of their federal student aid eligibility
Will need to provide additional documentation to the institution of higher education

If a school approves a student’s unusual circumstances, the independent status will remain each year.

only at same school and if circumstances do not change.

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FUTURE Act Direct Data Exchange (FA-DDX)

Allows for an individual’s federal tax information (FTI) to be directly transferred from the IRS to the FAFSA
Consent is required by all contributors on FAFSA
IRS transfers information to populate FAFSA income questions for most tax filers
Eliminates manual entry of tax and income information

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Consent and Signatures

Consent

To directly retrieve contributor’s federal tax information (FTI) from the IRS to the FAFSA form
To share that FTI with colleges or scholarship organizations

E-Signature

All users are required to have a studentaid.gov account
This includes non-SSN holders

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Student Financial Information

Tax return information

Minimal questions if FTI transferred from IRS

Asset information

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Student Information

Identity and contact information
Consent for FTI transfer from IRS
Marital status
College plans
Personal and unusual circumstances

Demographic Information
Citizenship Status
Parents’ Education status
Parent killed in the line of duty
High School Information

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Student Section Completion

College selection
Review of information
Signature

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Student Invites Parents to FAFSA

Student provides personal information about parents to invite them to complete parent portion of the FAFSA

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Parent Invitation

Email invitation to complete parent portion of student’s FAFSA
Parents must use studentaid.gov account to access FAFSA

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Parent Information

Identity and contact information
Consent for FTI transfer from IRS
Marital status
State of legal residence

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Parent Financial Information

Receipt of means-tested federal benefits in the previous two years
Tax filing status
Family size and number in college
Tax return information

Minimal questions if FTI transferred from IRS

Assets
Other parent information

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Asset Information

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How to Create Net Worth

Asset Valuation

Assessor
Balance Sheet (from bank)
Local market
Tax Return
Accountant
Extension Service/USDA

Tips

Subtract value of home
Use depreciation schedule for fixed assets

Liabilities

Include all outstanding liabilities where farm or business is used as collateral

Subtract liabilities from asset valuation to create net worth.
Tip

Bank or accountant could already have this number

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Parent Section Completion

Review of information
Signature and submission of FAFSA

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Other Changes

Students can include up to 20 schools

1

Child support payments will be considered and included differently

2

Family farm and small business assets will be reported differently

3

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FAFSA Processing Results

Student

FPS

College

Student

FPS

College

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FAFSA Submission Summary

Four sections:

Eligibility Overview
FAFSA Form Answers
School Information
Next Steps

Ability to print summary

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Institutional Student Information Record (ISIR)

FPS sends results to colleges listed on the FAFSA
College reviews ISIR and may request additional documentation

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Special Circumstances

Different than unusual circumstances (dependency overrides)
Unique conditions exist that cannot be documented with the FAFSA, or circumstances have changed since filing
Student should contact institution’s financial aid office for more information
Decisions are final and cannot be appealed to U.S. Department of Education

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Special Circumstances

Secondary school tuition

Residency requirements usually apply

Aid may be provided based on �both merit and need

Use information from the FAFSA and/or state aid applications

Deadlines vary by state

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Online FAFSA

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PDF FAFSA

Can use the PDF FAFSA to review questions that will be asked on online FAFSA for student and parent/s, if applicable

Note: PDF FAFSA screenshots from U.S. Department of Education’s Draft 2024–25 Federal Student Aid Application Materials, September 2023

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Student Information

Demographic information
Citizenship status
Parents’ education status
Parent killed in line of duty
High school information

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Student Dependency Status

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Unusual Circumstances

Conditions that justify an institution making an adjustment to a student’s dependency status
Student does not provide parental data on FAFSA

Considered provisionally independent

Student follows institution’s process for dependency override determination

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Other Considerations

If independent student is married, spouse information is required as well
Consent to transfer FTI from the IRS is required for ALL contributors

Including student, student’s spouse (if applicable), parent, and other parent (if applicable)

Students, parents, and preparers may start, complete, and submit a FAFSA

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Paper FAFSA Submission Summary

Note: Paper FAFSA Submission Summary from U.S. Department of Education’s Draft 2024–25 Federal Student Aid Application Materials, September 2023

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Making Corrections

If necessary, corrections to FAFSA data may be made by:

Using online FAFSA;
Updating paper FAFSA Submission Summary; or
Submitting documentation to college’s financial aid office.

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Benefits of Using Online FAFSA

Built-in edits to prevent costly errors
Skip-logic allows student and/or parent to skip unnecessary questions
No need to manually enter federal tax information (FTI)

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Benefits of Using Online FAFSA

More timely submission of original application and any necessary corrections
More detailed instructions and “help” for common questions
Ability to check application status online
Simplified application process