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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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Expectations of Students and Parents

Apply for Admission
Do not eliminate schools on the basis of cost before you explore your options
Complete all required financial aid forms
Know and meet the deadlines for admission and financial aid

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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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Calculating the SAI

Parent Contribution

Income (2023)
Assets – net worth (as of date of filing)
Family Size

Student Contribution

Earnings from work (2023)
Assets – net worth (as of date of filing)

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

What Is Financial Need?

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Financial Need Varies Based on Cost

School A School B School C

Cost of Attendance $25,000 $55,000 $85,000

(-) Student Aid Index $15,000 $15,000 $15,000

(=) Financial Need $10,000 $40,000 $70,000

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How Financial Need is Addressed Will Vary from College to College

Colleges will vary in their level of resources available for financial aid
Colleges will each have their own individual policies on how they choose to administrate financial aid
Not all colleges have the ability to meet full financial need for every student
As colleges resources and policies vary from school-to-school, sometimes the college with the highest Cost of Attendance ends up being the most affordable due to the financial aid it offers.

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Net Cost After Financial Aid Can Vary Significantly from College to College

School A School B School C

Cost of Attendance $25,000 $55,000 $85,000

(-) Student Aid Index $15,000 $15,000 $15,000

(=) Financial Need $10,000 $40,000 $70,000

Financial Need $10,000 $40,000 $70,000

(-)Financial Aid Offered $ 5,000 $30,000 $70,000

(=) Unmet need $ 5,000 $10,000 $ 0

Family Contribution $15,000 $15,000 $15,000

(+) Unmet Need $ 5,000 $10,000 $ 0

(=) Net Cost $20,000 $25,000 $15,000

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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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Scholarships

Grants

Work-Study Employment

Loans

Gift Aid

Self-Help Aid

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Grants

Scholarships

Grants

Work-Study Employment

Loans

Gift Aid

Self-Help Aid

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Work-Study Employment

Scholarships

Grants

Work-Study Employment

Loans

Gift Aid

Self-Help Aid

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Loans

Scholarships

Grants

Work-Study Employment

Loans

Gift Aid

Self-Help Aid

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Sources of Financial Aid

Federal Government

State of Indiana

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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State of Indiana

Indiana Commission for Higher Education www.in.gov/che

Can only be used at Indiana Colleges

Apply for most state programs through the FAFSA

Two primary grant programs: Frank O’Bannon Grants and 21^st Century Scholarship

FAFSA deadline for Indiana state aid: April 15, 2025

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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 (e.g., CSS Profile)

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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Private Sources

Do not pay $ for your scholarship search! Your high school Guidance Office is the best place to start!

Community Foundation of St. Joseph County

The Scholarship Foundation of St. Joseph County

bigfuture.collegeboard.org/scholarship-search

finaid.org/scholarships/ fastweb.com/college-scholarships

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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^®)

Collects demographic and financial information
Information used to calculate the student aid index (SAI)
Colleges use SAI as a part of determining your financial aid
Available in English and Spanish
Found online at studentaid.gov

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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 opened at the end of November 2024 and currently can be completed
Colleges may set FAFSA priority dates
State of Indiana deadline is April 15, 2025

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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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Student Dependency Status

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

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Student Dependency Status

Student answers a series of questions about themselves that have a “Yes” or “No” answer
If the student can answer “Yes” to any of these questions, they are considered independent, and no Parent information is to be reported
If the student answers “No” to these questions, they are considered dependent, and Parent information is to be reported

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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 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

If the student’s parents (biological or adoptive) are married to each other, or not married to each other and live together, information from both parents will be collected
If the student’s parent is widowed or single, only information about that parent is collected
If the student’s parents have divorced or are separated, the parental section will be completed by the parent who provides the greatest amount of the student’s financial support
If a widowed or divorced parent has remarried as of the date you complete the FAFSA, information will be collected from both the parent and the person your parent has married

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Who is Included in Family Size?

FAFSA will import a number based on dependents on 2023 tax return
Student
Parent (and spouse)
Parent’s dependent children, even if they live apart from the parent because of college environment
Other people if they live with the parent(s)

Included only if parent(s) provide more than half of their support between July 1, 2025, and June 30, 2026

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Parent Information

Identity and contact information
Consent for FTI transfer from IRS
Marital status as of date FAFSA is filed
State of legal residence

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Steps if Parent does not have a Social Security number

FAFSA eligibility is based on student’s (not parent’s) citizenship status

Parents can obtain an FSA ID without a Social Security number, but will need an email address

When entering FAFSA Personal Information check “I don’t have a Social Security number” and click “Continue”

A warning will appear; click “Continue Without SSN”

Complete sections on Account Information, Contact Information, Communication Preferences, Challenge Questions, Confirm & Verify and Enable Two Step Verification
Complete Identity Verification

Answer verification questions and click “Submit”

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Parent Financial Information

Receipt of means-tested federal benefits in the previous two years (e.g., EITC, qualify for Free/Reduced Lunch, SSI, SNAP, Medicaid, etc.)
Tax filing status in 2023
Family size and number in college – default is based on information from tax return
Number in college (for research purposes only)
Tax return information – Minimal questions if FTI transferred from IRS
Assets
Other parent information

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Asset Information on the FAFSA

These items are not reported as assets on the FAFSA:

The value of the home in which you live

However, the equity “other” real estate is

Life insurance policies
Tax deferred retirement plans, annuities or pensions

In addition to savings, investments and other real estate, report:

Business value
Farm value (less the value of the home if you live on the farm)
Child support received is reported as an asset, not income

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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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FAFSA SAI

Is an index number upon which federal financial aid is administered
Can range from -1,500 to 999,999
It is not what you will pay
Colleges will determine the financial aid you will receive

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FAFSA Processing Results

Student

FPS

College

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Special Circumstances

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
College will review and request additional information if necessary
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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Financial Aid Notifications

Each individual college will provide you with a financial aid notification based upon that college’s financial aid policies
This will include any sources of financial aid for which you are eligible from federal, state and institutional sources
Financial aid may potentially include gift aid, work aid and aid from student loans

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Financing Options

Monthly payment plans
Federal PLUS Loan (for parents)
Private educational loans
A combination of the above

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College Goal Sunday

Sunday, February 23, 2025, from 2:00 p.m. to 4:00 p.m. Info will be found at collegegoalsunday.org
Assistance from financial aid experts in completing the FAFSA – Spanish speakers available
At 39 locations in Indiana including IU South Bend and Purdue University Northwest - Westville
Check list to prepare and bring:

Both parent and student must create FSA ID prior to event
Parent and Student SSN, Driver’s License number and Alien registration number or permanent resident card (if applicable)
Bank statements and business and investment information

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Wrap-up and Final Thoughts

Keep separate notes for each prospective college
Students – monitor your email!!!
Mark your calendar with deadlines
Reach out and ask questions
Remember that financial aid is applied for and administered on a year-to-year basis
Be patient – financial aid is a “process” not an “event”

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Questions?

Contact Information

Gary Rigley

Senior Assistant Director of Financial Aid

University of Notre Dame

Phone: (574) 631-6436

Email: grigley@nd.edu

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