Transcript Financial Aid 2009-2010 - Greece PTA Council

Financial Aid 2009 - 10
Tom DaRin
Vice President for Enrollment Management
Nazareth College
Two Forms of Financial Aid
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Need Based Aid: Demonstrated need
must be established first. Sources –
federal, state, and college.
 No Need/Merit Based Aid: Merit
means different things at different places
(academics, athletics, visual and performing
arts, geography are some examples).
Sources – federal (1), state, and college.
Formula To Determine Demonstrated
Need
Cost of Attendance (tuition, fees, room/board,
books, travel, personal)
minus
Expected Family Contribution (EFC)
equals
Demonstrated Need
Factors to determine the Expected
Family Contribution (EFC)
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Determine student status: dependent or independent
Parent(s) income in the prior tax year (2008). Divorce:
use custodial parent 1040
Number of family members pursuing a college degree
(exclude parents)
Family size
Student assets (20% of the total)
Student income above $3,400 (50% above $3,400)
Parents assets (5.6% of the total).
Assets
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Include: savings and checking accounts, bonds
(including savings bonds), 529 Savings Plans,
Uniform Gift to Minors, trusts, investments
such as second/vacation home, land, business
value
Do not include (for federal methodology):
home equity (primary residence), 401K, IRA’s,
employer sponsored pension programs
Financial Aid Forms
FAFSA(Free Application for Federal Student Aid)
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Required at every college that awards Federal Title IV
student aid.
File after January 1, but before published college
deadlines.
Must be filed each year the student is in college.
Up to 10 colleges may be listed at one time
It takes 2-5 days (electronically) before colleges receive
data from the federal processor
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you will receive a SAR (Student Aid Report) from the
processor. Check it carefully for errors or omissions. The
SAR is generated within minutes after submitting the FAFSA
and sent to you via email.
Financial Aid Forms
FAFSA(Free Application for Federal Student Aid)
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FAFSA must be filed electronically at www.fafsa.ed.gov.
No fee is charged.
Electronic filers must submit a PIN, in lieu of a
signature, for both the parent and student
(www.pin.ed.gov). Parent and student may apply for
the PIN at any time. Save your PIN.
Note: If you are eligible to file a 1040 A or 1040 EZ
tax form, your EFC is calculated using a simpler federal
methodology. For example, if you file the 1040 A or
EZ form, and your AGI is <$30,000, your EFC = 0.
That would qualify you for a maximum Pell Grant.
Supplemental Financial Aid Forms
College Scholarship Service (CSS) Profile
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Used by certain colleges to collect information early
and/or information not provided on FAFSA
Profile information is generally used to award
institutional (college) aid
Profile is not a substitute for FAFSA
A fee is required for processing ($25 initial
registration including first college/$16 each
additional college)
Contact CSS directly to process a Profile form. Only
accepted online at collegeboard.com
Only send Profile to those colleges that require it
Estimate carefully if you complete it before tax
information is available
Supplemental Financial Aid Forms
TAP (New York Tuition Assistance Program)
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Grant assistance available to New York residents,
who graduated from a NY high school, and attend a
college in NY (2 year or 4 year, public or private).
FAFSA filers, who are NYS residents, automatically
receive a pre-populated TAP application directly
from HESC (Higher Education Services
Corporation) in Albany
Complete the application and return to HESC once
you have determined which NY college you will
attend. (Probably after May 1)
Based on NYS taxable income (not Federal AGI) of
$80,000 or less.
Supplemental Financial Aid Forms
TAP (New York Tuition Assistance Program)
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Minimum Award $500 (NYS taxable income
between $46 – 80K)
Maximum Award $5000 (private college) / 90%
SUNY tuition (state supported colleges)
Renewable for 8 full time semesters. Funding
contingent upon state budget approval. (10
semesters for those enrolled in NYS HEOP or
EOP programs).
Supplemental Financial Aid Forms
Institutional (forms used by individual
colleges/universities)
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Used to collect information not found on the
FAFSA
Information received is used to award institutional
(college) aid
The institutional form is not used to determine
federal and state eligibility
Submit the form by the required due date
No fee to file
The form, if used, is usually found in the same
packet as the admissions application.
When will I hear from colleges?
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No financial aid may be awarded until a student has
been accepted for admission.
Four to six weeks after you submit the required forms
most colleges are ready to send a financial aid package
to the student. Remember, it’s contingent upon which
forms need to be submitted, when they are submitted,
and the quality of the information.
What can delay the process?
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Inconsistent or inaccurate information (ex.
incorrect Social Security number). Colleges will
ask for tax forms to verify what you have
reported.
Not answering all questions that pertain to you
and your situation.
Not filing the required forms and/or not filing
them on time.
Not properly signing the FAFSA via your PIN.
Important Tips to Remember
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Students with a May 1 reply date for accepting an
offer of admission must have all forms submitted
no later than March 1(Jan./1 – Feb/15 preferred)
Financial Aid offers may go out on a rolling basis
(first in, first out) depending upon admission
notification dates. Others may place the financial
aid award in with the acceptance letter (if admission
notification is later than 3/15)
File all the required forms by the earliest deadline
published. Do not wait to hear from Admissions
before filing for financial aid. If need be, estimate
taxes and submit forms. Verification comes later.
Sources of Financial Aid
Federal (need and merit based)
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Pell Grant: $4731 maximum award per year (’08-09/’9-’10 TBA). Based on
high demonstrated need. Minimum award $890.
ACG (Academic Competitive Grant) and SMART Grant: ACG are for Pell
eligible first and second year students who come out of a competitive secondary
school program of study. $750 for year 1; $1300 for year 2. SMART Grants
are for Pell eligible third and fourth year students with a minimum 3.0 gpa in
federally recognized programs in science, math, IT, engineering, and specialized
languages. $4000 per year. ACG and SMART grants are awarded above the
student’s Pell eligible amount.
TEACH Grants: $4000 per year (x4 years UG/x2 Graduate). Must teach in a
federally designated high need school district in a high need area (math, science,
special ed, foreign languages) for a minimum of 4 years. New in 2008-09.
Separate application must be filed at teachgrant.ed.gov. Merit aid – based on
high SAT/ACT scores and must maintain a 3.25 gpa.
Sources of Financial Aid
Federal (all need based)
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Campus Based Aid: based on the level of
demonstrated need and the amount available at
each college.
*Supplemental Education Opportunity Grant
(SEOG)
*Perkins Loan (5% interest). Repayment
begins 9 months after graduation.
*Federal Work Study (rate of pay varies)
Sources of Financial Aid
Federal (all need based)
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Stafford Loan or Direct Loan (Subsidized or
Unsubsidized)
$3500 Freshman / $4500 Sophomore / $5500 Junior &
Senior
(Annual Limits)
 An additional $2,000 may be borrowed per year beyond
these annual limits; unsubsidized only
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Subsidized Loan: loan amount is used to meet
demonstrated need. Repayment begins 6 months after
graduation. Interest rate set by federal government.
All 2009-10 loans at 5.6%. Colleges may be lenders
(direct) or you may apply through a bank. $31,000
would be the max to borrow. 10 years to repay.
Sources of Financial Aid
Federal (all need based)
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Unsubsidized Loan: Student has no
demonstrated need or other forms of aid are
meeting need. Repayment on interest portion of
the loan while in college. Repayment on principal
begins 6 months after graduation. Interest rate at
6.8%.
Stafford Loans or Direct Loans are student loans.
The student will repay.
Sources of Financial Aid
State (need and merit based)
TAP:
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Need Based
Grant assistance available to New York State residents
who graduated from a NY high school and attend a
college in NYS (2 year or 4 year, public or private).
Minimum Award $500
Maximum Award $5000 (private college) / 90% SUNY
tuition (state supported colleges)
Renewable for 8 full time semesters. Funding contingent
upon state budget approval. 10 semesters for HEOP or
EOP students.
Sources of Financial Aid
State (need and merit based)
continued
New York State Scholarships for Academic Excellence: Merit
Based
Each high school gets one $1500 award and school size determines the number
of $500 awards.
Leaders of Tomorrow Lottery Scholarships: Merit Based
Each high school receives one $1250 scholarship. Renewable for four years.
Student must attend full time and maintain a 3.0 gpa.
Math and Science Teaching Incentive Scholarship: Merit
Based
Apply beginning spring of freshmen year. $4,350 retroactive for the year.
Teaching service obligation for the recipient. You must reapply each year and
academic performance determines if renewed.
Sources of Financial Aid
Institutional (need and merit based)
No Need/Merit Based Scholarships:
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Awarded without regard to demonstrated need.
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Based on Academic Ability
Athletic Ability (Div. I or Div. II, NCAA or NAIA)
Special Talents and abilities (Artistic, Musical, Dramatic,
Leadership, etc. )
Some colleges may require a separate application
Awards may be for one year only; some may be
renewable
Merit aid may be combined with need based aid to meet
demonstrated need
Sources of Financial Aid
Institutional (need and merit based)continued
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Need Based Scholarship or Grant:
Awarded based on demonstrated need and
academic ability (FAFSA must be filed)
Grant-in-aid for athletic ability (Div. I or Div. II).
May be combined with merit based financial aid
Renewable based on changing demonstrated need
and level of achievement each year in college.
Sources of Financial Aid
Outside Sources (need and merit based)
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Employer, high school organizations, community organizations,
philanthropic organizations, etc.
Private loans for students. Fewer lenders participate. Higher
interest rates than Stafford Loans. Co-signer needed. Stringent
credit check. Interest rates can range between 5 – 13.5% plus
origination fees from 0 – 6%.
Numerous free web sites (www.collegeboard.com or
www.fastweb.com). Do not pay money to get money!
Outside sources may impact the financial aid package
When notified of outside awards colleges may reduce their own
aid.
Most outside awards are smaller amounts so impact on aid package
is modest
Total need based aid received may not exceed demonstrated need
Financial Aid Package:
Meeting Full Need
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Assumptions:
Student will attend college in NYS.
Family has one in college.
The college has resources to meet the full
demonstrated need of each student who applies
for aid.
Financial Aid Package
Meeting Full Need
College A
SUNY
College B
Private
College C
Private
Cost
EFC
Need
$16,000
$ 8,000
$ 8,000
Cost
EFC
Need
$32,000
$ 8,000
$24,000
Cost
EFC
Need
$50,000
$ 8,000
$42,000
Package
Package
Stafford Loan
Subsidized
Work-Study
$ 3,500
Package
$ 3,500
$ 1,500
Stafford Loan
Subsidized
Work-Study
NYS TAP
Perkins Loan
$ 500
$ 2,000
Scholarship
$
Total Aid
$ 8,000
500
$ 3,500
$ 2,000
Stafford Loan
Subsidized
Work-Study
NYS TAP
Perkins Loan
$ 500
$ 2,000
NYS TAP
Perkins Loan
$ 500
$ 2,500
Scholarship
$ 16,000
Scholarship
$ 32,500
Total Aid
$24,000
Total Aid
$42,000
$ 3,000
Financial Aid Package
Meeting Full Need
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Most colleges do not have the resources to
guarantee that full need will be met. Those that
can typically have very large endowments and a
lower percentage of students requiring need
based aid.
Financial Aid Package: Preferential
Packaging
Packaging Scenario: John Doe
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Top 15% of high school class
90 unweighted average (3.5 gpa) in core subjects
1780 SAT (600 Critical Reading/600 Math/580 Writing)
graduating from a NYS high school
Intended major: Biology
Family:
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Federal AGI $90,000
Family of 4
1 in college
NYS taxable income $73,000
Financial Aid Package: Preferential
Packaging
College A:
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Highly selective (less than 50% of applicants admitted)
Mean SAT: 1950
Mean grade point average: 3.75
Yield on admits to deposit: 35%
Located in the Midwest
Top three programs: Political Science, Economics, Biology
Financial Aid Package: Preferential
Packaging
College A:
* Cost of Attendance:
Tuition
Room/Board
Fees
Books
Personal/Travel
Total
$32,000
$10,500
$ 1,000
$ 1,000
$ 1,500
$46,000
Financial Aid Package: Preferential
Packaging
*
College A:
Demonstrated Need:
Cost of Attendance
- Family Contribution (FM)
Demonstrated Need
*
$46,000
- $13,000
$33,000
Package:
Federal Stafford Loan(subsidized)
Federal Work Study(@ $7.75 per hr)
College A Grant
Regional Scholarship
Total Aid Offered
$3,500
$2,000
$17,500
$4,000
$27,000
Financial Aid Package: Preferential
Packaging
College A:
Demonstrated Need
Total Aid Offered
Gap
Family Contribution (IM)
$33,000
$27,000
$ 6,000
$19,000
Financial Aid Package: Preferential
Packaging
College B:
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More Selective (70% of applicants admitted)
Mean SAT: 1750
Mean grade point average: 3.5
Yield on admits to deposit: 29%
Located in the Northeast USA
Top three programs: Business, Communications,
Music
Financial Aid Package: Preferential
Packaging
College B:
* Cost of Attendance:
Tuition
Room/Board
Fees
Books
Personal/Travel
Total
$24,500
$ 9,500
$ 1,000
$ 1,000
$ 1,000
$37,000
Financial Aid Package: Preferential
Packaging
*
College B:
Demonstrated Need:
Cost of Attendance
- Family Contribution (FM)
Demonstrated Need
*
$37,000
- $13,000
$24,000
Package:
Federal Stafford Loan(subsidized)
Federal Work Study(@ $7.75 per hr)
Federal Perkins Loan
College B Merit Scholarship
Total Aid Offered
$3,500
$2,500
$1,500
$14,500
$22,000
Financial Aid Package: Preferential
Packaging
College B:
Demonstrated Need
Total Aid Offered
Gap
Family Contribution (IM)
$24,000
$22,000
$ 2,000
$15,000
Financial Aid Package: Preferential
Packaging
College C:
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Less selective (90% of applicants admitted)
Mean SAT: 1590
Mean grade point average: 3.1
Yield on admits to deposit: 32%
Located in New York State
Top three programs: English, Education, Biology
Financial Aid Package: Preferential
Packaging
College C:
* Cost of Attendance:
Tuition
Room/Board
Fees
Books
Personal/Travel
Total
$23,000
$ 9,000
$ 1,000
$ 1,000
$ 1,000
$35,000
Financial Aid Package: Preferential
Packaging
College C:
*
Demonstrated Need:
Cost of Attendance
- Family Contribution (FM)
Demonstrated Need
*
$35,000
- $13,000
$22,000
Package:
College C Merit Scholarship
New York State TAP
Federal Perkins Loan
Stafford Loan (subsidized)
Campus Employment
Total Aid Offered
$16,000
$ 500
$2,000 Federal
$3,500
$1,000
$23,000
Financial Aid Package: Preferential
Packaging
College C:
Demonstrated Need
Total Aid Offered
Gap
Cost to Attend
$22,000
$23,000
$
0
$ 12,000
FYI’s
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You must reapply for financial aid each year
(Renewal FAFSA). How has your situation
changed? File electronically and receive an
electronic renewal form.
If awards are renewable, make sure you have met
eligibility criteria.
Make sure to read your financial aid award letters
carefully from each college. Do the math!
Make sure you know the college costs for the year
the student will attend.
Recommendation: File your FAFSA and
subsequent year’s Renewal FAFSA on line. File on
time!
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FYI’s continued
Students who are not Work-Study eligible may seek
employment on campus. Pay is usually the same as
work study.
Timing and accuracy are crucial to receiving your
aid awards well before published deposit due dates.
Financial aid awards are only good until May 1 for
Regular Decision, Early Action, and Rolling
Admission admits.
Any delay on a decision to attend may jeopardize
your package.
Early Decision admits usually have only 30 - 45 days
after their acceptance before enrollment deposit is
due. Complete early forms well before due dates.
Parent Options
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Parent Loan for Undergraduate Students (PLUS):
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Parents may borrow up to the full cost of attendance less
any financial aid received by the student.
Interest rate is 8.5% (7.9% at a Direct loan college).
Interest cap is 9%.
Caution: some colleges put PLUS into your financial aid
package to make it appear that you owe nothing.
You must prove credit worthy
Consider PLUS before borrowing a private education
loan
Monthly Payment Plans:
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some colleges offer their own
others may work with companies that specialize in this
(ex. Tuition Pay/Sallie Mae or Tuition Management
System)
Questions?
Tom DaRin
Vice President for Enrollment Management
Nazareth College, Rochester, NY 14618
585-389-2830
[email protected]
www.naz.edu