Financial Aid 101�2024-2025

Logan County High Schools

October 2023

Tony Dickman

Coordinator, Financial Aid

The Ohio State University-Lima

dickman.41@osu.edu

Federal Aid Programs

FEDERAL AID PROGRAMS

FEDERAL PELL GRANT

REMEMBER… beginning the 2024-2025 award year Pell eligibility will be determined using the Student Aid Index (SAI) as well as an applicant’s family size and AGI.

TEACH Grant 2023-2024

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• Grant of up to $3,772 per year to students who intend to teach in a public or private elementary or secondary school that serves students from low-income families.

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• Service requirement upon graduation must be met, or grant becomes an Unsubsidized Direct Loan that must be re-paid!

CAMPUS-BASED PROGRAMS

Federal Supplemental Education Opportunity Grant (SEOG)

Federal Work-Study

Remember to double check Priority Deadlines. Colleges many have made changes due to the delayed opening of the FAFSA to December 2023.

Federal SEOG

• Offered to undergraduates with exceptional financial need.
• A negative SAI will assist in differentiating among a school's neediest students. A student with a negative SAI could be considered "needier" than a student with a zero SAI for purposes of awarding a higher FSEOG amount.
• Award ranges from $100 to $4,000, depending on when student applies, financial need, and the funding and policies of school attending.

DIRECT LOANS: UNDERGRADUATE (2023-2024)

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• Subsidized Undergraduate--Need-Based
• Interest is fixed at 5.50% for new undergraduate loans disbursed during 2023-2024*; interest is subsidized while the student is in school and during deferment.
• Loan fees are 1.057%
• Unsubsidized Undergraduate--Not Need-Based
• Interest is fixed at 5.50% for all new loans disbursed during 2023-2024*; interest accrues from time of disbursement of the funds.
• Loan fees are 1.057%

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*Interest rates recalculated annually and are effective July 1^st based on the 10-year treasury note index plus 2.05%, capped at 8.25%.

DIRECT LOANS

How do I apply for Federal Direct Loans?

• File the FAFSA
• Review financial aid award letters from schools to learn about eligibility
• Go to www.studentaid.gov
• Sign in using YOUR Federal Student Aid ID (FSA ID)
• Student:
• complete Entrance Counseling AND MPN (Master Promissory Note)
• Parent:
• complete PLUS application AND MPN

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Federal Parent PLUS loan

• Loan to parents of dependent students.�
• Loan limits up to cost of attendance less any financial aid received.�
• Interest rate is 8.05%% fixed.*�
• Loan fees are 4.228% (On or after 10/1/20 and before 10/1/24).�
• Repayment begins within 60 days of full disbursement; payments may be deferred while student is in school.�
• FAFSA completion is required.

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*Interest rates recalculated annually and are effective July 1st based on the 10-year Treasury note index plus 4.6%, capped at 10.5%

Scholarships

OHIO FINANCIAL AID PROGRAM

• Ohio Safety Officers College Memorial Fund covers 100% of tuition and fees at public colleges and $10,692 at private colleges.

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• Ohio National Guard (ONG) covers 100% of instructional and general fee charges at public institutions and an equivalent amount at private colleges after considering federal aid and Department of Defense funding.

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• Ohio War Orphans covers 83% of tuition and general fees at public colleges and $6,490 at private colleges.

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• Nursing Education Assistance Loan Program (NEALP)
• RN = $1,650
• Nurse Educators = $6,000
• Set in August

FAFSA Simplification:�What We Know

FUTURE Act�

Expands access to federal student aid and enhances the FAFSA experience by allowing the U.S. Department of Education to automatically obtain federal tax information from the IRS for students, parents, or other contributors (such as a spouse or stepparent) who provide consent. �

FAFSA Simplification Act�

Introduces significant changes to the FAFSA application process, including changes to the FAFSA form, how students and families will complete the application, and the eligibility calculation.

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FAFSA SIMPLIFICATION

Better FAFSA Better FUTURE Guidance

FAFSA WILL NOT BE RELEASED UNTIL DECEMBER 2023

• The massive overhaul of the form and process will delay the opening of the FAFSA until some date in December.�
• Encourage students to check on updated FAFSA priority deadlines at colleges.�
• FAFSA completion events should begin in early January.�
• Creates a condensed timeframe for FAFSA submission, FAFSA Submission Summary review, verification and aid offer review.

FAFSA contains fewer questions

• The FAFSA will have fewer questions.�
• Certain types of taxed income questions have been eliminated.�
• Several types of untaxed income questions have been eliminated.�
• Requesting Work-Study question has been eliminated.�
• Housing plans for each college has been eliminated.�
• Child support paid question has been eliminated.

FEDERAL STUDENT AID ID (FSA ID) REQUIRED FOR EVERYONE

• An FSA ID is a username and password that gives a student/parent access to Federal Student Aid’s online systems and serves as their legal signature. �
• The student and parent(s) whose information will be on the FAFSA will need their own individual FSA IDs.�
• People without social security numbers will need to get an FSA ID. They will use the same website to set it up but will have different questions. The signature page is gone.

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�Definition of Need

Tuition and Fees

Room and Board

Books and Supplies

Personal Expenses

Transportation

Cost of Attendance

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- Student Aid Index (SAI)

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= Eligibility (Need-Based Aid)

Student’s + Contributor’s Contribution

Financial Aid Need

www.StudentAid.gov/how-calculated

OLD VS. NEW TERMINOLOGY

Student Aid Index (SAI)

• Replaces Expected Family Contribution (EFC) beginning in 2024-2025
• Can be a negative number down to -1500�
• Will be used to determine eligibility for need based aid��

Changes in the formula include:

• Number of family in college no longer included in the calculation�
• Family farms and small businesses now included in assets�
• Child support received will be reported as an asset and no longer reported as untaxed income

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SAI formula changes

• Family size will be determined by number of exemptions claimed on tax returns. FAFSA contains a question to modify that if no longer correct.�
• Number in college is no longer in the formula but asked on the form.�
• Those required to report assets will need to report net value of any business and/or family farm.�
• Child support received is now considered an asset.

SAI Formula Changes �(Family Size – Dependent Student)

SAI Formula Changes �(Family Size - Independent Student)

SAI formula changes�(Family Size)

• Aligns with # of dependents reported on 2022 federal tax return.�
• Option to update if the family size changed after filing the tax return.

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Number of Colleges on FAFSA Form

Contributors

• Refers to anyone who is asked to provide information on the FAFSA form.�Invited by student to complete their portion of the FAFSA
• Must create their own FSA ID
• Only able to view and complete their section of the FAFSA

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CHANGES:

• Determining custodial parent:
• Based on who provides most support during the last 12 months prior to filing FAFSA 
• If equal - the parent who makes more money
• Separated students (who would otherwise be considered dependent) will be required to provide parental information on the FAFSA

Student’s Spouse

Student

Parent’s Spouse (Stepparent)

Biological or Adoptive Parent(s)

Inviting a Contributor

Contributors

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And subsequently provide parent information to send an invitation to complete their sections

Financial Aid Direct Data Exchange

• Used to be Data Retrieval Tool “DRT”
• Federal Tax Information: FTI
• Students and contributors must provide consent to have their federal tax information transferred directly into the FAFSA
• If consent is not provided the student is not eligible for federal student aid
• Contributors who are unable to retrieve tax information with the IRS will be allowed to manually enter their tax information and if the student (or parent of dependent) is no longer married (separated or divorced) but their tax status is married filing joint- the student will be prompted to manually enter tax information and spouse contributor is not required.
• Consent can’t be rescinded after the FAFSA is submitted.
• A spouse (parent or student) will only be a contributor if they did not file a joint return.

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Consent

Consent to use FTI comes early in the process and clearly explains uses and consequences if withheld

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Dependency Status

• Dependent = Parent(s) also apply with student.�
• Independent = Student (and spouse) apply without parent(s).�
• Same categories to be classified independent as in the past:

Most high school students will be dependent.

Dependency Status

Dependency

Process remains familiar even with new questions and reframes the difficult questions

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Unusual vs. Special

• New: In past, terms interchangeable; now defined separately:
• Unusual Circumstances
• Used in FAFSA completion.
• Conditions that justify making adjustment to student’s dependency status based on unusual situation (e.g., parental abandonment or human trafficking).
• Commonly referred to as dependency override.
• Special Circumstances
• Used in COA or SAI data adjustment.
• Special or extenuating situations (such as the loss of a job) that impact student’s or parent’s financial condition and support adjusting data elements in COA or in SAI calculation.
• Both are professional judgements exercised on case-by-case basis.
• Determined by financial aid administrator and may differ slightly college-to-college.

Special Circumstances��

• Schools have seen significant numbers of requests due to PPY FAFSA info
• If household experiencing significant changes to financial situation
• Complete the FAFSA to the extent are able and submit as instructed
• Consult with the financial aid office at each college
• Parent loss of job/income
• Retirement
• Separation or divorce
• Parent death
• Child support ending
• One-time income or unusual debt
• Medical expenses not covered by insurance
• Property loss not covered by insurance

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Parent of Record for 2024-2025

• Effective with the 2024-2025 year, the parent of record criteria has changed for students with divorced or separated parents not living together. �
• Include income and asset information for the parent who provided the greater portion of the student’s financial support in the 12 months prior to filing the FAFSA even if student does not live with that parent.�
• If neither parent provided support in that 12-month period, include information for the parent who provided the greater portion of support during the most recent year the student received financial support.�
• If both parents claim equal amount of support, parent of record is the parent with the greater amount of income or assets.

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Parent of Record for 2024-2025

Filling out your 2024-2025 FAFSA:�Student

• Federal Student Aid Username and Password Information
• Verified email, phone number, username
• PASSWORD
• Date of Birth
• Social Security Number
• State Issued Identification Number/Drivers License Number (optional)
• 2022 financial information
• 2022 IRS Federal Income Taxes
• 2022 Wage Information—W-2(s)

Filling out your 2024-2025 FAFSA:�Contributor

• Date of Birth
• Social Security Number
• Marital Status (depending on status: month and year of marriage, separation, divorce, or widowed)
• Household size (total number of dependents and number in college)
• 2022 financial information
• 2022 IRS Federal Income Taxes
• 2022 Wage Information—W-2(s)
• Federal Student Aid Username and Password Information
• Verified email, phone number, username
• PASSWORD

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Frequent FAFSA Errors

• Social Security Numbers
• Information mismatch between the FSA ID and the FAFSA
• Date of birth and Social Security Numbers
• Divorced/remarried parental information
• IF biological parent is remarried, household income is required (both parent and step-parent)
• Income earned by parents/stepparents
• Untaxed income
• U.S. income taxes paid
• Household size & number in college
• Real estate and investment net worth

Avoid Errors!

Verification��

• Audit of the information provided on FAFSA
• Provide all requested documents
• If selected and do not provide documents,
• Will not receive federal student aid
• Might not receive aid from other nonfederal sources.

Financial Aid Contacts

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Tony Dickman

Coordinator, Financial Aid

Email: dickman.41@osu.edu

Telephone: 567-242-7152

Please feel free to contact me regarding any questions you may have, the financial aid process can be confusing and frustrating. Do not hesitate to ask questions.

Creating an FSA ID

• Go to STUDENTAID.GOV
• Click on “CREATE ACCOUNT”
• If you have an account but do not know the password or it’s been a while (12+ months) since you’ve used it;
• Click on LOGIN
• Click on FORGOT PASSWORD
• Follow the prompts