Torrance Unified School District 2010-2011 Financial Aid Workshop

Presented by: Catherine Graham Director of Financial Aid Loyola Marymount University January 6, 2010

What will be covered this evening?

 Philosophy of Financial Aid • Financial Aid Administrators – what is our role?

 Types & Sources of Financial Aid  How to Apply for Financial Aid • The Financial Aid Formula • College Expenses – what are the costs?

• What is the Expected Family Contribution (EFC)?

• Financial Eligibility  Awarding Process & Comparing Awards  Tips

Philosophy of Financial Aid

 Access  Parents and students have the responsibility to pay for higher education expenses to the extent they are able  The aid application process should provide Financial Aid Office a consistent and equitable evaluation of a family’s financial circumstances for all that are applying  Allocation of finite resources

Our Roles

The Financial Aid Office’s Role…

To administer federal, state and institutional financial assistance to students and their parents in an accurate, informative, timely and friendly manner.

Parent & Student’s Role…

To contribute to the application, awarding and financing process throughout student’s Undergraduate Education.

Funding Types

• Need-Based Funding  Grants • Gift aid that does not need to be repaid • Require aid applications  Loans • Borrowed funds that must be repaid with interest • Separate promissory notes required  Work • A set amount that a student can earn by working on campus funded by the Federal Government or the college ($3200) • How does “work” work? Benefits?

Funding Types

• Non-Need Based Funding  Merit/Academic Scholarships • Based on Admission Information • Separate Application/Interview Process?  Athletic Scholarships  Non-Need Based Loans (Stafford, PLUS, Private) • Student Loans • Parent Loans • Alternative Educational Loans

Four Primary Sources of Aid

1. Federal Programs ( FAFSA Application )    Pell Grant ($400-$5350) Supplemental Grants: SEOG ($400-$4000) • Stafford Loans Subsidized vs. Unsubsidized   Perkins Loan Work Study 2. California Grant Programs ( GPA Verification Form)  • • Cal Grant at Risk for 10-11 New Recipients APPLY REGARDLESS The 2009-2010 Cal Grant A awarded to students at private institutions is $9,708

Sources of Aid

3. Institutional Programs     Scholarships Grants Loans Work 4. Outside Resources      Community: Rotary, YMCA, Elks Parent’s Employer Web Sites: www.fastweb.com

Time spent on searches… Worthwhile?

Outside Scholarships can replace loans/work

Resources for Parents

• Parent Programs  Employer Reimbursement for Dependents  Federal Plus Loan Program  Payment Plans  Federal IRS Educational Tax Benefits

How to Apply…

• Free Application for Federal Student Aid (FAFSA) 

http://www.fafsa.ed.gov

 Required for Federal and State fund eligibility  January 1, 2010 – March 2, 2010  FAFSA4caster  PIN Number required for E-Signature  Worksheet & Supporting Documentation  Each school has their own deadlines!

• March 2, 2010 • Estimate Information

FAFSA on the Web (FOTW)

How to Apply

• Cal Grant G.P.A. Verification Form  Required for State fund eligibility & awarding  Check the status of your Cal Grant at

https://mygrantinfo.csac.ca.gov

 March 2, 2010  How does Torrance USD process Cal Grant GPA Verification Forms?

GPA Verification from Torrance High Schools • All TUSD high schools have been collecting “Cal Grant GPA Information Release Forms” √ Parent signature, student signature and Social Security Number are required.

√ TUSD data to the state electronically well before March 2 nd so info can be verified.

√ Forms are available in the back of the Auditorium √ Return completed to your student’s school √ Questions? Contact your student’s counselor

How to Apply

• College Board CSS PROFILE Application  Required by some Private Institutions  Check websites of the schools you are apply to  On-line, two step application process  March 2, 2010 (or earlier)  For fee application (fee waivers available)  www.collegeboard.org/profile

How to Apply

• Submit 2009 Student and Parent Federal Tax returns as requested  Some, but not all, schools require Parent and Student Federal Tax Returns  If selected for Verification by the Department of Education you will be required to submit Federal Tax Returns  Make sure all schedules are included and the Tax Returns are signed  Identify your student on all supporting documentation

The Financial Aid Formula

Cost of Attendance

MINUS

Expected Family Contribution (EFC)

EQUALS

Family Financial Aid Eligibility

Cost of Attendance

• Direct Expenses (billed directly by school)  Tuition and Fees (variable by courses/major)  Room & Board (varies by housing options) • Indirect Expenses (not billed by school)  Books  Transportation  Personal Expenses 

This is the most difficult component for families to manage

.

The Expected Family Contribution (EFC)

• The Expected Family Contribution (EFC) is what the family is expected to pay according to the Federal Government and the information reported on the FAFSA.

• The Federal Government offers limited resources, so the entire need is not always met. • Often the families do have to pay more than the estimated EFC.

• Institution will calculate their own EFC for allocating their own limited resources by collecting CSS Profile application information.

How the EFC is Determined

• Federal Formula – from FAFSA  Income & Assets (does not include home equity)   Family Members & Number in College Allowances in methodologies • Institutional Formula – from CSS Profile  Home  Clearer picture of Income & Assets  Non Custodial Parent/Self Employment • Special Circumstances  When and how you report?

 Any additional information the family believes to be important that is not reflected on the FAFSA

The Formula with Numbers!

Example #1 Private Institution Cost of Attendance MINUS Expected Family Contribution =

Financial Need

$50,000 $15,000

$35,000

Example #2 State Institution Cost of Attendance MINUS Expected Family Contribution =

Financial Need

$15,000 $15,000

$0

School

*Est. Cost/yr.

**Est. Family Contribution/yr.

***Amount of “Need” for Fin. Aid

The Formula with Numbers!

LMU

$50,000 $10,000 $40,000

UCLA

$30,000 $10,000 $20,000

L. B State

$20,000 $10,000 $10,000

ECC

$10,000 $10,000 0 *Cost for college includes: Room & board (whether living home or on/near campus), books, fees &/or tuition. Information based on estimates provided by State information and rounded up or down.

**Estimated Family Contribution would be based on the information provided on the FAFSA &/or PROFILE.

Amount used above is for demonstration purposes only.

*** “Need” is the difference between the two numbers. The financial package would include one or more of these items: Grants, Scholarships, Loans, Work/Study Program.

Packaging Financial Aid Awards

Cost of Attendance Expected Family Contribution Financial Need Financial Aid Package Stafford Loan Perkins Loan Work Study Institutional Grant Total Awarded Unmet Need $ 3,500 $ 2,000 $ 3,000 $26,500 $35,000 $0 $50,000 $15,000 $35,000

The Expectations & Realities of the Awards

 Compare Awards from each institution!

• Not all awards are the same!

 Is the Cost of Attendance realistic?

• In State & Out of State • Discretionary Expenses  The Student Contribution ( savings, summer employment)  The Parent Contribution ( PLUS LOANS )  The nuances of award funds • Work, Loan, Unmet Need

Award Notification

• Award Notification & Understanding your Award Letter  Estimated  Final  Award Guide  Accepting, Declining & Adjusting Awards  On-line processes  Student Rights & Responsibilities  Appeals

Disbursing Awards

 Full Time Enrollment  Accepting, Declining & Adjusting Awards  Entrance Counseling Requirements for Loan Programs  Completing Promissory Notes  Finding Employment/Completing Time Sheets  Satisfactory Academic Progress

Tips

 Put all deadlines on the calendar!!!

 File taxes early  Start a financial aid file • Make copies of all documents submitted for all four years  Apply for a FAFSA PIN  Apply Each and Every Year

Tips

 If you send any documents through the mail, make sure to get a certificate of mailing  Research outside agencies for scholarships  Check with each school you are applying to in order to find out what information they require and what their deadlines are  Review Websites  Use on line “web services tool” provided by the school

Scholarship & Application Services

 Be Cautious  Limit Dependency  Do your Homework  Manage Expectations • Consultants • Scholarships  Refer to institutional resources on the web

Thank you!

• Thank you for being here tonight!

• You are well on your way to successful financial planning and application cycle!

ANY QUESTIONS?