Nashwa Bolling Associate Director of Budget, Research & Analysis Financial Aid

 Financial fit & the value of obtaining a degree  Be prepared ◦ Terms & Definitions ◦ ◦ Applications Types of Aid  Next Steps

     Financial Aid Award Letter (Aid Package) Multi-year commitment Rising Costs Family Discussions Net Price Calculators

Adam Looney and Michael Greenstone, the Hamilton Project

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Welcome to the Financial Aid, I need the following information:

◦ Salary ◦ Investments ◦ ◦ Cash, Savings, Checking balance Home Value Taxes Paid Tax Transcript from the IRS

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Colleges have varying deadlines

◦ Priority deadlines ◦ Ask what it means?

Financial Aid Applications Scholarship Applications Terms

◦ Start developing a glossary ◦ www.collegeincolorado.org

(Financial Aid Planning)

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Determines eligibility for merit based aid

◦ Evaluate GPA ◦ ACT and/or SAT Scores ◦ ◦ ◦ ◦ Extracurricular Activities Leadership Community Service Teacher Recommendations

 Establishes the cost of attendance (Sticker Price)  Evaluates family’s ability to pay by determining an expected family contribution (EFC)  Offers financial aid based on the cost of attendance and the expected family contribution  Distributes resources in an equitable manner  Counsels families on financial issues

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Cost of Attendance

◦ Direct Costs  Tuition and Fees  Room & Board ◦    Indirect Costs Books & Supplies Transportation Personal Expenses

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Financial Need

Cost of Attendance - Expected Family Contribution Financial Need ◦ ◦ Need varies based on cost Most colleges are unable to meet 100% of financial need with scholarship and grant aid

 FAFSA – Free Application for Federal Student Aid ◦ Required to determine eligibility for many federal, state and institutional aid programs which can include scholarships, grants, work study and student loans ◦ www.fafsa.ed.gov

  ◦ ◦ FAFSA Income  Taxed and Untaxed  Allowances for  Basic Living Expenses, Social Security and income taxes Assets     Cash, Savings, Checking, Stocks, 529 plans, Business Net Worth Home value is NOT included Allowances for Asset Protection and Education Savings Equation: Adjusted Gross Income – Allowances + Assets = EFC

 CSS PROFILE – College Board ◦ ◦ ◦ ◦ ◦ Many private universities and scholarship providers require the CSS PROFILE application to determine financial eligibility for institutional aid programs  University of Denver, Daniels Fund, Colorado College (400 nationwide) $25 Application Fee Comprehensive look at family wealth  Includes home equity Non-custodial parent information http://profileonline.collegeboard.com

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Documentation needed to complete applications (Parent and Student)

◦ Federal Income Tax Returns ◦ W-2 Forms ◦ Driver’s License ◦ Social Security Numbers ◦ Savings and Checking Account Information

 Additional Documentation ◦ ◦ needed to complete CSS PROFILE ◦ application (Parent and Student) Records of untaxed income & benefits Current Mortgage Information Records of stocks, bonds, trusts, and other investments

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Tips for Completing Applications

◦ Meet Deadlines ◦ You can estimate information on both the FAFSA and CSS PROFILE applications Reapply every year Ensure Social Security Number is correct Send applications to the correct institutions Ask questions if you are unsure

    ◦ Scholarships & Grants Need-based, merit-based, or a combination ◦ Federal & State Grants For lower income students & families Student Employment ◦ ◦ ◦ ◦ Students work on campus 10-20 hours a week Paid hourly wages Great way to gain valuable work experience Loans Direct Stafford, Parent PLUS, and private

 No, but excessive borrowing is!

 How much will your payment be?

◦ Loan Balance of $10,000 ◦ ◦ 6.8% interest rate Standard 10 year Repayment Plan A.

B.

C.

D.

$105 $115 $125 $135  For every $10,000 in loan balance, you will pay $115 per month for 10 years. $3,810 in interest

 Don’t borrow more than your first year salary  What do teenagers think their salary will be? ( Charles Schwab - Teens & Money Survey 2011)

   ◦ Financial Aid Office & Website Webinars / Chats / Videos / FAQs ◦ ◦ ◦ Application Completion Events High School FAFSA Free for All Events Financial Aid Office ◦ ◦ Department of Education @FAFSA http://studentaid.ed.gov

       Civic Groups/Organizations (Rotary, Lions, etc…) Religious Organizations Corporations (Target, Coca Cola, Ford, etc….) www.fastweb.com

or www.scholarships.com

Facebook App: My College Dollars High School Counselor College or University Financial Aid Office Website

     Make financial aid part of your college visits ◦ ◦ ◦ Do a bit of detective work! Do the colleges use financial need in determining their admission decisions? How does the college treat private scholarships? On average how much need does a college meet?

Utilize Net Price Calculators Inform colleges about special circumstances Investigate and apply for private scholarships

Nashwa Bolling Associate Director of Budget, Research & Analysis, Financial Aid 303-871-4020 [email protected]

A copy of the presentation is available at: http://duadmission.typepad.com/blog/