Transcript Putting Your Best Foot Forward

Top 10 Things to Know About
Financial Aid for College
(in 30 minutes or less)!
Jerry Cebrzynski
Lake Forest College

“Planning” for College costs

What exactly is financial aid

The financial aid “language”
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Application process in a nutshell
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How eligibility is determined

How a College can help

Timeline

Your next step
Choosing a College
Best Fit
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Program
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Location
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Size
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Mix of Students
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Academics
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Extracurricular
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Facilities
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Financial Considerations
Undergraduate Student Aid by Source and Type
(in Billions), 2010-11
SOURCE: The College Board, Trends in Student Aid 2011, Figure 2A.
1. Everyone should apply for aid
82% of all full-time, first-time (FTFT) undergraduate
students receive some form of financial aid
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92% at private colleges; 76% at public institutions
Nearly half (48%) of FTFT undergraduate students
received a Pell Grant
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Sometimes being rejected for federal aid is a prerequisite
for receiving private awards
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2. What is Financial Aid?
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Scholarships
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Grants
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Student Loans
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Work-Study
Four major sources of funding
Federal
State
College
Private
Organizations
Two Categories of Financial Aid
Merit-based
 From College as well as from foundations, etc.
 Specific criteria eligibility
 Solely based on student’s credentials
Need-based
 Calculated from FAFSA and other aid applications
 Sources can be federal, state, institutional
 Types include grants, student loans, work-study
3. Financing a College Education
is “A Partnership”
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To the extent they are able, parents have primary responsibility
to pay for their dependent children’s education
Students also have a responsibility to contribute to their
educational costs
Families should be evaluated in their appropriate financial
condition
A family’s ability to pay for educational costs must be evaluated
in an equitable and consistent manner, recognizing that
special circumstances can and do affect its ability to pay
The Financial Aid Office
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Is committed to removing financial barriers
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Educates students and families through quality
consumer information
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Provides services that do not discriminate
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Maintains the highest level of professionalism
4. Cost of attendance (COA) should
not be a mystery
Average Undergraduate Budgets
2011-12
$17,000
$38,500
SOURCE: The College Board, Trends in College Pricing 2011, Figure 1.
Direct costs vs. Indirect Costs
► Direct
costs = on tuition invoice
 Tuition, fees, housing, meal plan
► Indirect
costs = related educational expenses
 Books, supplies, transportation, laundry, …
► COA
should reflect direct and indirect expenses
Sticker Price
vs.
Net Price
(after Financial Aid & Scholarships)
New!
Net Price Calculator
Net Price Calculators
►Online,
College-specific estimator
►Average
grant/scholarship available to a family like
►Average
student loan and work-study eligibility
yours
►Estimated
award is not a promise, a guarantee, or
an actual aid offer
So . . . how does the
process begin?
5. To apply for all federal and state
aid, families must complete the...
The FAFSA collects basic financial data is
used to determine the student’s eligibility
by calculating an “index” #
Overview of the FAFSA
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2013-2014 available January 1, 2013
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FAFSA.GOV
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7 Steps
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Signed and submitted
electronically
FAFSA on the Web (FOTW)
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English or Spanish
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Skip logic and online editing
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Electronic signature
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E-mail notification
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19 million (99%) FOTWs processed 12/13 so far
FAFSA on the Web Worksheet
4-page booklet containing:
► Instructions
► 24
questions in 4 sections
 Start Here for all options –
 Initial FAFSA Entry
 Renewal Application Entry
 FAFSA Corrections
 Providing Signatures
 Continuing a Saved FAFSA
 Viewing Transaction History
FAQs
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Estimate figures on FAFSA; adjust later
► Divorced, separated, single parents
► Assets included
 Savings, stocks, other real estate
 529 Plans
► Assets not included
 Home equity
 Retirement accounts
 Insurance policies, annuities
► One FAFSA per student
► “Paying for help”
► Renewal of Aid
Supplemental Financial Aid
Applications
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The College
Scholarship Service
Financial Aid PROFILE
A College’s own
application for
financial aid
6. Special Circumstances Matter
► When
the numbers don’t tell the whole story
► When
the situation is expected to change (or has)
► Must
be able to document
► consideration
will vary from school to school
Financial Need
How much aid can a student receive?
Cost of
Attendance
-
Family’s
Contribution
=
Financial
Need
7. The Financial Aid Award Letter
(or “package” )
Will contain a combination of
•
scholarship, grant, loan and work-study funds
Why might “packages” be different?
•
•
•
•
•
cost of attendance
scholarship criteria and availability
institutional philosophy and funding
federal funding levels
the College’s needs as it shapes its
freshman class
Decoding the Award Letter
Compare
Ask questions
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COA
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Is aid renewable?
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Total amount of aid
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Terms for renewing?
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Types and sources
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Will aid change from year
to year?
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Will costs increase?
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Is more aid available if EFC
decreases?
“Financial
Aid
Shopping
Sheet”
8. Appeals
► Can
request change in aid if there is a valid reason
► Will
it make a difference?
 Is need already fully met?
 Is more aid available?
► Valid
reasons
 Special circumstances
9. Deadlines are essential
Deadlines
► Know
each College’s priority deadlines
 Read and retain all communication you receive
► Contact
school
 Merit scholarship deadlines
 Early Action/Early Decision/Regular Decision deadlines
 Deadlines for supplemental documents (tax returns,
etc.)
Timeline
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Complete FAFSA after January 1
Receive a Student Aid Report (SAR) 48-72 hours
later
Review SAR for correctness
Check if other additional application required or
beneficial
Receive Financial Aid Award Letter before May 1
10. Ask for

Right here at Stevenson
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A College’s Financial Aid Office
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The Internet
 www.collegezone.com
 www.finaid.org
 www.studentaid.ed.gov
 College Web Sites