Transcript The Middle Class Family Paying for College

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Identify how much college will cost.
 Cost-Visit the various colleges and surf their
web sites to obtain their costs.
 Aid- Fill out the FAFSA (Free Application
for Federal Student Aid) and any other
application required by the college.
Cost of Attendance (COA)
– Expected Family Contribution
(EFC)
= Financial Need
1
X
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Y
3
Cost of
Attendance
(Variable)
Z
EFC
EFC
Expected Family
Contribution
Need
(Constant)
(Variable)
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Scholarships
Grants
Federal Loans
Employment Opportunities
Alternative Loans
Payment options
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Scholarships are typically awarded based
on:
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Academic Merit (GPA, rank, SAT/ACT test
scores)
Talent (Art, Music, Performing Arts, etc)
Athletic Ability.
Research each college for their specific
scholarship criteria and application
procedures.
Free scholarship web search @ fastweb.com
Federal
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Pell Grant
Awards range from $609-$5,550
 Based on Expected Family Contribution (EFC) from
FAFSA
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Supplemental Educational Opportunity Grant (SEOG)
 Must be Pell eligible to receive
 Awarded to student’s with the highest need
 Awards range from $100-$4,000
 Limited funds available
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Academic Competitiveness Grant
 Must be Pell eligible
 Maximum award 1st year undergraduate is $750
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National Smart Grant
 must be in a specific major (math, science, technology, certain
languages)
 Must be Pell eligible to receive
 Up to $4,000.00 for 3rd and 4th year of undergraduate studies and
maintain a 3.0 GPA
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TEACH Grant
$4000 per year.
As a recipient of a TEACH Grant, you must teach
full-time at a low-income school and within certain
high-need fields for at least four academic years
within eight calendar years of completing the program
of study for which you received a TEACH Grant.
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State –
 Tuition Assistance Program (TAP)
Awards range from $500- $3,280
 Based on family’s NYS Net Taxable Income (under
$80,000)
 Income limits increase if more than 1 in college full
time
 Web site: www.hesc.org
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NYS Merit Scholarships
Awards from $500 - $1,500 per year
 Renewable for 4 years
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Perkins Loan- Low interest loan (5% fixed).
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Subsidized Stafford Loan- Fixed rate loan (at 3.4%)
awarded based on financial need.
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Unsubsidized Stafford Loan- Fixed rate loan (at
6.8%). This loan is NOT based on financial need.
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Freshman (0-29 cr)
$3,500 sub.
$2,000 unsub.
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Sophomore(30-59 cr)
$4,500 sub.
$2,000 unsub.
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Jr/Senior (60+ cr)
$5,500 sub.
$2,000 unsub.
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Parent Loan to Undergraduate Students- Credit worthy
parents can borrow up to the cost of education minus
financial aid. Credit worthiness is determined by the
lender.
Current rate: 7.9%
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Federal College Work Study ProgramAwarded to students based on financial
need. Students have the opportunity to
work on campus and receive a pay
check based on the hours they have
worked.
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Competitive loans offered by lenders to
credit worthy borrowers.
Rates are currently about 4.5% (prime rate)
but vary by lender. Credit worthiness of
borrower impacts rate offered by lender.
Student may require a co-signer.
 Be cautious of “Financial Aid Consultants”
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Contact your financial aid office Most of the
information needed is readily available at no cost.
COMPLETING THE 2010-2011
FAFSA
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Apply after Jan 1 online at
www.fafsa.ed.gov
 Get a PIN- www.pin.ed.gov
 The student and parent need separate PIN
#
 It’s fast and secure
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The Worksheet presents the questions in the
same order as they are presented within
FAFSA on the Web
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The Worksheet helps you collect the
information needed to apply online.
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Gather records you will need
 W-2 forms and other records of money earned in 2010
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2010 Federal Income Tax Returns and applicable
schedules
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Records of Untaxed Income
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Current Bank Statements
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Business records
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Records of Investments (Stocks, Bonds etc.)
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Students’ name and date of birth
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Info is cross referenced to Homeland Security and
Social Security is used to confirm accuracy
State of Residence
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Important- If you are a NYS resident you may be
eligible for TAP
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Citizenship
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Student’s Marital Status
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Selective Service Registration
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Grade Level?- freshman, sophomore etc..
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Already have BA degree?
To determine if student is ‘independent’ student
must be:
st
 Jan. 1 , 1987
 Married
 Supporting children/dependents
 A Graduate Student
 A Veteran
 A Ward of Court or Orphan
Parents information must be reported if not
‘independent’
See full instructions about who is considered a
parent for purposes of completing this Step.
Do not include legal guardians or foster parents!
Keywords are biological or adoptive parents.
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Divorced or separated – Use information about the Custodial
parent
Remarried parent as of the date you complete form, answer for
parent and their new spouse.
Married - Both are living and married answer questions about
them.
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Parent’s Marital Status
 As of date filing FAFSA
Tax Filing Status
 You can file FAFSA based on estimated income
 ‘Wages From W-2’s
 Important item- FICA offset in need analysis
Adjusted Gross Income- from tax return
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Parent’s SSN, Date of Birth, and Name- if doesn’t match to SSA
records, processing stops
Parent’s state of residence- for TAP grant
Back to tax return info
 Tax paid
 Number of exemptions reported
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Parents Household Size –Include:
student and parents
 Siblings if parents provide more than ½ support in the
prior 12 months.
 other people, if they now live with parents, and if
parents provide more than half their support and will
continue to provide that level of support in 2010-11.
 A grandparent could be an example of others in the
household who meet this criteria.
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Include others only if they will attend at
least half time 6 credits or more per
semester in 2010-2011 in a program that
leads to a college degree or certificate.
Count the student as a college student
even if will attend college less than half
time in 2010-2011. Parents ARE NOT
included in this question.
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FAFSA Worksheets A, B, and C
 Report all other untaxed income
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Untaxed Social Security received by parent
Earned Income credit
Child support received
Untaxed pensions
Payments to tax deferred pension and savings plans
All other untaxed income
Report income exclusions
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Education credits from tax return
Child Support PAID
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Include the current balance of cash, checking and/or
savings accounts as of date completing FAFSA.
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Investments include real estate (not the primary
residence), trust funds, money markets, mutual funds,
CD’s, stocks, stock options, bonds, college savings
plans.
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Value of Parent Business
 Includes the market value of land, buildings,
machinery, equipment, inventory, etc. Also
includes S-Corporations and partnerships.
 Do not include a farm if your parents live on it.
 Do NOT include if family owned and operated
and has less than 100 employees
How Much Will College Cost You?
College Financing Calculators – visit the website at
www.collegeboard.org/parent
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Use the calculators to help you figure out what college really costs and how to pay for
it. If you need loans, you can also estimate the amount of debt you are going to have to
pay back. Any information you enter is secure and completely confidential.
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(EFC) Calculator - Estimate how much your family is expected to pay.
College Cost Calculator – Figure out how much college will cost you.
College Savings Calculator - Determine if you’re on track to save enough for college.
Student Loan Comparison Calculator - Compare Stafford, PLUS and alternative loan
offerings.
Student Loan Calculator - Calculate your monthly payments and compare them to
your expected starting salary.
Parent Debt Calculator - Find out your capacity to take on debt.
Parent Loan Repayment Calculator -Calculate your expected monthly loan
repayments.
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NYHELPs Education Loan
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Why choose this loan? For more details visit: www.nyhelps.org
Fixed interest rates. Most other private education loans have variable rates.
Peace of mind from monthly payments that will never increase.
Administered by New York State exclusively for the benefit
of New York’s students and families.
Loan Amounts
Annual maximum loan amounts are the lesser of:
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Cost of attendance minus all other federal (excluding federal PLUS loans), State, institutional and private aid.
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An annual maximum that varies by the year of the student:
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Freshmen - $10,000
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Sophomores - $15,000
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Juniors, seniors and graduate students - $20,000
Aggregate maximum loan amounts of:
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$20,000 for undergraduates at 2-year institutions
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$50,000 for undergraduates at 4-year institutions
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$70,000 for undergraduate and graduate study combined
The annual minimum is $2,000.
Eligibility Requirements
Borrowers must be both a New York State resident and a U.S. citizen or an eligible non-citizen.
Students must be matriculated at least half time at a participating New York State college.
Parents, legal guardians, and sponsors may borrow on behalf of a matriculated student attending a participating
college.
Students/borrowers must exhaust all Federal (except Federal Plus Loans), State, and institutional aid.
Students must meet Federal satisfactory academic progress standards.
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Did/will student file tax return?
Student may still have wages and not file a tax
return.
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Social Security Benefits received BY the
student –NOT received by the parent for the
student
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Work Study Earnings would be reported here
next year (in worksheet C)
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Include the current balance of cash, checking
and /or savings accounts. Values should be as
of the date you complete the FAFSA.
Need Analysis Formula adds 20% of reported
assets to family contribution.
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List up to six schools to which the student is applying
to.
Department of Education’s website for a listing of
codes at www.fafsa.ed.gov.
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For each school, select the housing plan that best
describes the type of housing you expect to live in *
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Indicate anticipated enrollment status (FT, ¾ time, ½
time, etc)- IMPORTANT
NOTE--If less than 6 credits you are ineligible for
most aid
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Keep going until you receive a confirmation
number
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Website gives you the option to print out the
FAFSA for your records
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Link to TAP grant website, HESC.org
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Student and school receive Student Aid Report (SAR)
from federal processor. FAFSA can be corrected at any
time during the school year.
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School may request additional information.
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School “packages” student and mails Award Letter to
student.
Questions?