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What You �Need to Know �About Financial Aid

August 2024

National Association of Student �Financial Aid Administrators Presents …

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Topics We Will Discuss

What is financial aid?
Cost of attendance (COA)
Student aid index (SAI)
Financial need
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 (living expenses)

Books, course materials, supplies and equipment

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 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

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 Direct PLUS Loans

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States

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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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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Federal Student Aid Estimator

Early estimation regarding SAI and possible Title IV aid available
Requires demographic, income, and asset information

https://studentaid.gov/aid-estimator

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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 2025-26 academic year, the FAFSA may be filed starting on or before December 1, 2024 (exact date to be determined)
Colleges may set FAFSA priority dates

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Free Application for Federal Student Aid (FAFSA)

Online FAFSA

PDF FAFSA

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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

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StudentAid.gov Account Username and Password (FSA ID)

Used for FAFSA completion and access to certain U.S. Department of Education websites
Student and parent must create own FSA ID
May be used throughout financial aid process, including subsequent school years
Only the owner should create an �FSA ID

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

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Online FAFSA

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Online FAFSA

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

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FAFSA Contributors

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

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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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PDF FAFSA

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

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Student Information

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

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Student Dependency Status

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

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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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Student Invites Parents to FAFSA

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

Note: Screenshot from StudentAid.gov

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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 Financial Information

Tax return information

Minimal questions if �FTI transferred from IRS

Asset information

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

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Student Section Completion

College selection
Review of information
Signature

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Parent Invitation

Email invitation to complete parent portion of student’s FAFSA
Parents must use FSA ID to access FAFSA

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

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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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Parent Section Completion

Review of information
Signature and submission of FAFSA

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

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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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Who Is Included in Family Size?

Dependent Applicants

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 Applicants

* 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*

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FAFSA Processing Results

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

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

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Paper FAFSA Submission Summary

Source: Federal Student Aid, Financial Aid Toolkit

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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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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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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

Unusual uncovered medical/dental expenses

Extraordinary dependent care

Loss of employment or income

Divorce

Parent or spouse death

Additional family members in college

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CSS Profile

Only complete for schools that require it
Asks for more information than the FAFSA
Used to determine Institutional funding
Each school may have different questions
Will be available October 1st

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