Documents needed to complete the 2012-13 FAFSA:

You will need records of income earned in the year prior to when you will start school. For the 2012-2013 academic school year you will need financial information from 2011. You may need to refer to:

• Your Social Security card. It is important that you enter your Social Security Number and name correctly!
• Your driver’s license (if any)
• Your 2011 W-2 forms and other records of money earned
• Your (and your spouse’s, if you are married) 2011 Federal Income Tax Return.
• IRS 1040, 1040A, 1040 EZ
• Foreign Tax Return, or
• Tax Return for Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, the Marshall Islands, the Federal States of Micronesia, or Palau
• Your Parents’ 2011 Federal Income Tax Return (if you are a dependent student)
• Your 2011 untaxed income records
• Your current bank statements
• Your current business and investment mortgage information, business and farm records, stock, bond and other investment records
• Your alien registration or permanent resident card (if you are not a U.S. citizen)

To organize your information, you can print and complete a FAFSA on the Web Worksheet before you begin entering your information online. However, you are not required to do so. FAFSA on the Web will guide you through the questions that you must answer, and you can save your application and return to it later if you don’t have the information you need to answer any of the questions.

Keep these records! You may need them again. Do not mail your records to Federal Student Aid Processor.

FINANCIAL AID PROCESS:

The purpose of financial aid is to assist the students who have been granted college admission and are deemed to have “financial need.”  The formula applied to determine eligibility for “financial need” is called the Federal Methodology.  Here’s how it works during your senior year (and every year after that you apply):

1. Go to www.pin.ed.gov and apply for a Federal Student Aid Personal Identification Number (FSA PIN).    NOTE:  Both student and at least one parent must apply for an FSA PIN.
2. Once you receive your FSA PIN, you apply for financial aid by completing the Free Application for Student Aid (FAFSA).  The FAFSA is available in paper form or at www.fafsa.ed.gov.  It is also available in Spanish. 
3. The Federal government determines your “financial need” based on the information you provided on the FAFSA and by applying the Federal Methodology.  The result of the calculation is the Expected Family Contribution (EFC). The EFC will remain the same as you apply to different colleges and universities.
4. You will receive notification of your Expected Family Contribution (EFC) with a Student Aid Report (SAR) that will be mailed to you if you completed the paper version of the FAFSA or a Student Aid Report (SAR) Acknowledgement in the mail if filed electronically but no student e-mail address was provided.  If, the FAFSA was filed on the web or on paper and an e-mail address for the student was provided, the student will receive an e-mail notification with a direct link to the on-line Student Aid Report (SAR).  NOTE:  Review all information for accuracy.  If a correction is necessary, immediately contact the KIPP: Through College staff or the Financial Aid Office at the colleges or universities of choice for assistance.
5. The colleges and universities that you listed on the FAFSA will automatically receive an Institutional Student Information Record (ISIR) approximately 10-14 days after you submit your FAFSA.  This ISIR tells the colleges and universities what your Expected Family Contribution (EFC) is so it can be subtracted from the Cost of Attendance (COA) and your financial need and financial aid award may be determined.  The colleges and universities will review the data and if additional information is needed, you will be contacted.  If everything is correct, you will receive an Award Letter in the mail or electronically from the colleges and universities where you have been accepted.
6. Each college/university you apply to determine their Cost of Attendance (COA) by including tuition, fees, books, supplies, room, board, transportation, and miscellaneous expenses.  The Expected Family Contribution (EFC) for each student who applies is then subtracted from the Cost of Attendance.  The remaining amount, if any, is the student’s “financial need.”  The Cost of Attendance will be different for each college/university, so you shouldn’t let the cost of a college or university keep you from applying.

7. After the colleges and universities determine your financial need, they begin awarding financial aid.      Typically, they begin by awarding grants, scholarships, work-study, student loans and parent loans in this order.*  You will receive notification from the colleges and universities you have been “accepted” to of your financial aid award (Award Letter) either by e-mail or regular mail.  Once you have received your award letter(s) you will be able to determine the type of aid you have been awarded.  NOTE: Always ask the colleges and universities you are applying to how they award financial aid and how they handle external scholarships.

Here are some examples on how "financial need" is determined at the colleges/universities:

School Example #1

Cost of Attendance = $5,000 – Expected Family Contribution of $1,000 = $4,000 in “Financial Need.”

School Examplel #2

Cost of Attendance = $20,000 – Expected Family Contribution of $1,000 = $19,000 in “Financial Need.”

School Example #3

Cost of Attendance = $50,000 – Expected Family Contribution of $1,000 = $49,000 in “Financial Need.”

TYPES OF FINANCIAL AID:

• Scholarships:  Money that does not have to be paid back and commonly awarded on the basis of merit, skill, or unique characteristic.
• Grants:  Money that does not have to be paid back and commonly awarded based on financial need.
• Loans:  Money students and parents borrow to help pay college expenses.  Repayment usually begins after student completes education, drops below half time or stops attending college.  NOTE:  Look at loans as an investment and only borrow what you need.
• Employment:  Allows students to earn money to pay their educational costs or may be non-monetary in the form of room & board.

SOURCES OF FINANCIAL AID:

Federal Government:

• Largest source of financial aid
• Awarded primarily on the basis of financial need
• Must apply every year using the Free Application for Federal Student Aid (FAFSA)

Examples of Federal Government Programs:

• Federal Pell Grant
• Teacher Education Assistance for College and Higher Education Grant 
• Federal Supplemental Educational Opportunity Grant
• Federal Perkins Loan
• Federal Work-Study
• Federal Subsidized and Unsubsidized Loans
• Parent Loans for Undergraduate Students (PLUS)
• PLUS for Graduate Students

State Funding:

• Residency Requirements
• May be awarded based on financial need and merit
• Will use information from the FAFSA
• Deadlines vary by state- Check paper FAFSA and/or FAFSA on the web

Examples of TX State Programs:

• Texas Educational Opportunity Grant (TEOG)
• Texas Grant
• Texas Public Education Grant (TPEG)
• Tuition Equalization Grant (TEG)
• Texas Work-Study Program
• College Access Loan (CAL)
• Texas B-On-Time Loan Program

Private Sources:

• Foundations
• Scholarships
• Businesses
• Charitable organizations

Note:  Deadlines and application procedures vary widely. Begin researching private sources early.