Training - Merion Mercy Academy
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Transcript Training - Merion Mercy Academy
FINANCIAL AID
The Basics & then some….
Merion Mercy Academy
October 18, 2012
Presented by Bonnie Lee Behm
Director of Financial Assistance
Villanova University
Before we start….
Begin with a positive attitude!
Involve your child/family in the admission and
financial aid application process.
Discuss your ability to pay for college with your child
throughout the application process
Ask questions along the way – each school has their
own unique approach to financial aid
Financial Aid
Financial Aid = Assistance for students to fund
their education in the form of:
Grants
Scholarships
Loans
Student Employment
Categories of Financial Aid
Merit based Aid
Need-based Aid
Merit-Based Aid
Merit-Based Aid = grant assistance given to
students strictly on the basis of merit
Award usually remains the same over the course
of the student’s academic career
Merit may be defined in a variety of ways
Academic record
Special characteristics
Skills or talents
Involvement
(SAT, ACT, GPA, HS RANK)
( ex. Leadership, Creativity)
( ex. Musical, Athletic)
(ex. Community, Work)
Merit-Based Aid
Amounts can vary significantly from school to
school
Rule of thumb: more competitive the institution – less
merit based aid
May or may not require an application, interview,
submission of additional materials
May require a student to apply for admission by an
earlier date
May be administered by an office other than the FA
Office
Need-Based Aid
Need-Based Aid = aid awarded to students
on the basis of financial need Re-evaluated
each year as financial situations may
change.
Need will vary based on cost of attendance of the
school
Determination of need could be based on the
FAFSA, CSS PROFILE or both
How do you apply for need based
aid?
Complete the Free Application for Federal Student Aid
(FAFSA)
The FAFSA on the Web Worksheet (FOTW) is a great tool to
help you work through the process
Check with your school if they need additional forms
Some schools have their own forms
Schools may require a copy of tax returns, and/or W-2 forms
The CSS Financial Aid PROFILE may also be required at some
institutions
What Is The FAFSA?
Free Application For Federal Student Aid (FAFSA)
A standard application that collects financial &
demographic data about the student & parent
Used to apply for federal & state aid (may be
application for college aid, depending upon the
school)
File one FAFSA per student (not one per college)
Need to file a FAFSA every year you seek assistance
How/When to File the FAFSA?
Ways To Complete the FAFSA:
On-line at www.fafsa.gov
Complete as soon as possible after January 1 at
www.fafsa.gov
Make sure you select the FAFSA for the school year you
are planning to attend
List all the schools your child is considering attending
so the results of the FAFSA get to the school
Make sure you file by your school’s deadline for aid.
Check with your school if you do not know the filing
deadline.
Completing the FAFSA
NEW Tool to assist in the completion of the FAFSA
IRS DATA Retrieval Tool
Allows family to download tax information directly
from the tax return onto the FAFSA
Some families may not be able to use this tool – if
not they may be requested to submit an IRS Tax
Return Transcript
Filing The FAFSA
Based on prior calendar year tax information
May use estimated income and taxes
Students need to be encouraged to apply even if
they are not sure of their attendance at a
particular school
Do not wait to be accepted to college to file for
financial assistance
Deadlines
Check each
institution for their
specific deadline date
State or federal
deadline dates may
differ so make sure
you are meeting all
timelines
Financial Need
Cost of Attendance
-Expected Family Contribution
Financial Need
(Expected Family Contribution = EFC)
Cost of Attendance
Cost of Attendance typically includes:
Tuition & fees
Room & board
Books & supplies allowance
Personal expenses allowance
Transportation allowance
What Is The Expected Family
Contribution (EFC)?
EFC is determined by a formula that considers a student and
parents’ financial situation
Amount a family can reasonably be expected to contribute to
the student’s education during the school year
EFC & Financial Need are guidelines used by schools to
determine aid package
Formula used by the FAFSA is the Federal Methodology
Formula used by the PROFILE is Institutional Methodology
How Is The EFC Calculated?
Primary Factors Considered:
Taxable Income: AGI (wages earned + interest
dividends + other taxable income)
Untaxed income & benefits
Number in family
Number of dependent children in college
Assets (Primary residence and retirement
accounts are not considered on FAFSA)
How Is The EFC Calculated?
For more detailed information on how
the EFC is calculated visit:
www.finaid.org
www.collegeboard.com
Select Financial aid calculators
Institutional Methodology
Some schools may require the CSS Financial Aid
PROFILE
Primarily used by private schools
Collects supplemental data (home equity, financial data of
non-custodial parent, etc.)
Basis for awarding institutional need-based aid only
Register to complete form at www.collegeboard.com
There is a fee associated with the completion of the
CSS/Financial Aid PROFILE
Some PROFILE Schools require documents such as tax
returns to go to a service called IDOC
Sources of Aid
Federal
State
School/College/University
Private/Outside Organizations
Civic organizations (ex.-local Rotary Club, parent’s
employer, churches)
Federal Grant Aid
Federal Pell Grant
Federal Supplemental Educational
Opportunity Grant SEOG
Teacher Education Assistance for College &
Higher Education Grant (TEACH)
Federal Work and Loan Aid
Federal Work Study
Federal Perkins Loan
Federal Nursing Student Loan
Federal Direct Loan
Federal Direct PLUS Loan (parent’s loan)
State Aid
Awards may be merit or need based
May require some type of residency requirement
Deadlines for applying for state aid may vary from state
to state
Contact your state higher education assistance agency
for specific details on their programs of aid
College/University
Many schools offer their own sources of aid.
Understand that funding varies from school to
school therefore aid packages may vary
significantly
Funds may be merit or need based aid
Check with each school you are interested in
about their policies, application forms, process &
deadlines
Outside Sources
Private sources of scholarship funds include:
Service/Fraternal Organizations
Employers/Business
Churches/Religious Groups
The web is an excellent resource for parents,
students and counselors to seek free
scholarship assistance
Outside Sources continued
What is the effect of my aid package if outside scholarships are
received?
A school cannot exceed demonstrated financial need, so if
additional $ is received a school has a few options:
School can allow all outside aid to be used and not reduce
institutional aid assuming the student has remaining need
School can reduce institutional loan or work study first before
adjusting institutional grant
School can reduce institutional aid either $ for $ for each outside
dollar received or could reduce aid a percentage
Comparing Aid Offers
School A
School B
School C
$8500
$23000
$45000
$2000
$2000
$2000
NEED
$6500
$21000
$43000
PELL Grant
$2360
$2360
$2360
SEOG Grant
$0
$2000
$3000
PA State Grant
$1900
$4300
$4300
Perkins Loan
$0
$2000
$3000
Work Study
$0
$1500
$2500
Direct Loan - Subsidized
$2240
$3500
$3500
Institutional Grant
$0
$4500
$20000
Unmet Need
$0
$840
$4340
COST
- EFC
Comparing Aid Offers
School A
School B
School C
$8500
$23000
$45000
$12000
$12000
$12000
NEED
$0
$11000
$33000
PELL Grant
$0
$0
$0
SEOG Grant
$0
$0
$0
PA State Grant
$0
$1100
$1400
Perkins Loan
$0
$2000
$2000
Work Study
$0
$1500
$2500
Direct Loan - Subsidized
$0
$3500
$3500
Institutional Grant
$0
$2000
$21000
Unmet Need
$0
$900
$2600
COST
- EFC
Net Price Calculators (NPC)
NPC is a tool each school must have to assist you in
knowing what federal aid you may be entitled to.
Many schools will allow you to determine school based
aid on their NPC as well.
NPC also allows you to calculate a family contribution
Remember:
It is a tool – it is not the final award letter
Carefully read the things the school considers when it
calculates aid on the NPC
Comparing Aid Offers
What factors can cause changes to my eligibility in the
future? (i.e.- how will my package change if there is a
change in the number in college, what if my income
increases)
Is there room for movement (can I appeal) in my
financial aid award?
Comparing Aid Offers
Look at the Bottom line for each school carefully comparing
grants, loans and work opportunities as well as merit versus
need based programs
Consider possible changes in your family situation over the
next four years & consider how that can affect your ability to
pay not only in the next four years but over the years all your
children are in college
Additional things to consider
If you have unusual circumstances let the school about
your situation
Follow up with all requests for additional information from
your school or federal or state agency
You need to reapply for need based aid every year
If your family financial situation changes your need based
aid package may also change each year
Contact the Financial Aid Office with your questions or
concerns regarding the financial aid process
Timeline
September – start to apply for private aid
January/February – file FAFSA and/or PROFILE and any
other forms school requests
March/April – schools will send financial aid award letter
to you
Timeline continued
April – review financial aid awards and determine which
package is best for you and your family
May 1 – Deposit deadline for admission
NOTE: Students applying Early Action or Early Decision
may have earlier deadlines