Transcript General
Financing Education Beyond High School
1
Overview of Financial Aid What is Financial Aid How aid is calculated/packaged Application process Questions 2
Principles Of Need Analysis
To extent they are able, parents have primary responsibility to pay for dependent child’s education Students also have responsibility to contribute to educational costs Families should be evaluated in their present financial condition Family’s estimated ability to pay for educational costs must be evaluated in equitable & consistent manner, recognizing that special circumstances may affect family ability to pay Merit Aid departs from this philosophy 3
Goal of Financial Aid
Primary goal is to assist students in paying for their educational investment and is achieved by: Evaluating family’s ability to pay for educational costs Distributing limited resources in an equitable manner Providing a balance of gift aid and self-help aid 4
What is considered Financial Aid?
Scholarships – Institutional, Outside awards Grants – Federal/State/Institutional Loans – Federal/Institutional Employment opportunities Federal/Institutional 5
Types of Aid
• • •
Gift
Merit (Institutional) Grant (Institutional)
Need-Based Aid
PELL – Federal Grant SEOG – Federal Grant Self-help loans – Student pays back after graduation jobs – Student works while enrolled
Outside Aid (Grants/Scholarships)
State Grants – Tuition Assistance Program (TAP), Merit Other – Elks Club, Rotary, Lions Club, etc.
6
Self-Help
Loans to Students Federal Perkins Loan-max.$5500/yr; 5% interest; 10 years to repay, 9 months grace, campus-based Federal Stafford/Direct Loan- $3500 1 st 2 nd year, $5500 3 rd & 4 th years to repay; 6 months grace. year, $4500 years; 3.4% fixed interest; 10 Unsubsidized Stafford/Direct Loan- $2000 per year, 6.8% fixed interest.
Employment Federal Work Study Institutional 7
General Eligibility Requirements
Must be enrolled or accepted for enrollment in an eligible program of study Must be pursuing a degree, certificate, or other recognized credential Must be a U.S. citizen or eligible noncitizen Must be registered with Selective Service (if male and required to be 18 yr.) May not have eligibility suspended or terminated due to a drug-related conviction for current application year 8
General Eligibility Requirements
(continued) Must have a valid Social Security Number May not be in default on a federal student loan May not owe repayment of a federal grant Must be making satisfactory academic progress as defined by the school 9
Definition of Need
Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need 10
Cost of Attendance
Tuition and fees Room and meals Books and supplies, equipment, transportation, and miscellaneous personal expenses Study abroad costs Dependent care expenses Expenses related to a disability Expenses for cooperative education program 11
Expected Family Contribution
is the sum of four separate calculations: • Contribution from Parents’ Income • Contribution from Parents’ Assets • Contribution from Student’s • Contribution from Student’s Assets 12
Need Varies Based on Cost
1 2 Cost of Attendance (Variable) 3 EFC Expected Family Contribution (Constant) X Y EFC Need (Variable) Z
13
Need Formulas
• Federal Methodology (FM) (FAFSA) – Created by Congress – Used to allocate limited federal funds – Also used by some private colleges to distribute own aid • Institutional Methodology (IM) – Used by many private colleges to determine need for their institutional funds (PROFILE) – Tries to measure financial “need” rather than simply allocate funds. 14
Differences Between FM & IM Formulas:
IM: Minimum student contribution Home equity may be counted in parent assets Sibling in lower cost college or receiving merit aid or athletic aid not counted as full divider of parent contribution Passive losses may be added back into income Non-custodial parent may have contribution 15
Financial Aid Package
Institutional Grant Aid Federal SEOG Loans & Jobs Outside Scholarships Federal Pell Grant New York State TAP 16
OK, WE KNOW WHAT NEED-BASED AID IS, BUT WHAT IF THERE’S A GAP IN THE PACKAGE OR WE NEED TO FINANCE OUR EXPECTED FAMILY CONTRIBUTION?
For Student Unsubsidized Federal Stafford/Direct Loan (if not already in package as subsidized) For Parent: PLUS If have good credit can get up to cost of attendance less aid received Fixed 7.9% interest rate - 10 years to repay Where get: same place as Stafford/Direct Home Equity Loans Institutional and Other Private Loans Payment Plans Tuition Savings Plans (529) 17
Applying for Financial Aid is Actually A Very Simple Process
18
Financial Aid Applications and Processors
Uncle Sam’s Free Application for Federal Student Aid (FAFSA) All must fill this form out for federal & state aid Paper or on-line application College Scholarship Service’s Financial Aid PROFILE Private colleges and universities to distribute institutional funds On line applications only Non Custodial PROFILE 19
Free Application for Federal Student Aid (FAFSA)
Family’s personal and financial information required to calculate the student’s EFC is collected on FAFSA Paper versions of FAFSA First Time Applicants only Electronic version of FAFSA and Renewal FAFSA FAFSA on the Web at www.fafsa.ed.gov
Personal Identification Number (PIN) required and may be obtained at www.pin.ed.gov
20
PROFILE College Scholarship Service
Available on line only www.Collegeboard.com
Length of application personalized to each family’s unique financial status $25 for first school, $16 for each additional school Waiver of fees using USDA “reduced price lunch” income __________________________________________________
NON-CUSTODIAL PROFILE
Available on line only Cost is $25 21
Avoid ERRORS!
Errors made in completing these and/or supplemental forms may delay application processing and result in the loss of financial aid funds.
Please complete all forms carefully!
22
Frequent Errors
Divorced/remarried parent information Income earned by parents/stepparents Untaxed income U.S. income taxes paid Household size Number in postsecondary education Real estate and investment net worth Application is not signed by parent/student 23
Role of the Financial Aid Office
Determine eligibility for financial aid Packages aid depending on eligibility of funds Sends an award notification which details: Student’s cost of attendance Student’s Expected Family Contribution (student & parent) Amount of student’s financial need Award amount for each program for which student is eligible How and when aid will be disbursed Terms and conditions of student’s award 24
Financial Aid Application Summary
One - Know which forms to use Two - Apply for financial aid, no matter what Three - apply as early as possible -- the early bird gets the worm (sometimes) Four - Be as accurate as possible Five - Be ready to explain your answers - at least 30% of all applications are subject to verification Six - Make copies of your aid application and your tax return Seven - Register for the draft 25
YOU MUST REAPPLY EVERY YEAR
26
HELPFUL WEBSITES:
College Board
www.collegeboard.com
- to complete PROFILE and Non Custodial Profile - compare financial aid awards
US Department of Education
www.fafsa.ed.gov
to complete FAFSA
New York State Higher Education Services Corporation
www.hesc.com
- can determine eligibility for TAP – Tuition Assistance Program
General Information
www.finaid.org
- can search for outside awards 27
Additional Information to be aware of:
Net Price Calculator-Began October 29, 2011 Every school must have on their website Will provide you with estimate of financial aid you can expect to receive IRS Data Retrieval-you may be asked to do in addition to tax return Financial Aid Shopping Sheet-new format for aid award letters beginning with 2013-14. 28
Questions?? Need Help??
Call: Colgate Financial Aid Office 228-7431 Marcelle Tyburski Tom Wise Kris Hopkins Or email: [email protected]
29
Good Luck!
30