Financial Aid Basics for Parents
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Transcript Financial Aid Basics for Parents
Financial Aid
Basics for Parents
David R. Gelinas
Senior Associate Dean
Office of Admission and Financial Aid
Fall, 2010
What will we cover?
Applying for Aid
Cost of Attendance
Need-Based Aid
Merit-Based Aid
Packaging/Awarding
Consumer Tips
Questions
What are the purposes of
need-based financial aid?
Make higher education accessible
to students and families who can’t
afford it on their own
Enable student to apply to firstchoice college
Attend college based on best fit
Equity in distributing limited
funds
What assumptions lie
behind need-based aid?
Students and parents contribute to
the extent they’re able
Similar treatment for similar
circumstances
More expected from those with
greater resources
How do students apply for
financial aid?
FAFSA
Free Application for Federal Student Aid
www.FAFSA.ed.gov
CSS Profile
Profileonline.CollegeBoard.com
At College’s Discretion
Tax returns and W-2 forms
Non-custodial Parent PROFILE
Institutional application
Dependent or Independent?
Federal Criteria for Student
Were you born before Jan. 1, 1988?
As of today, are you married?
Will you be working on a master’s or doctorate?
Are you currently serving on active duty in the US Armed
forces (other than training)?
Are you a veteran of US Armed Forces?
Do you have children who live with you and receive more
than half their support from you?
When you were 13, were both your parents deceased,
were you in foster care or a ward of the court?
Dependent or Independent,
cont.
Are you an emancipated minor as determined by a
state court?
Are you in legal guardianship as determined by a state
court?
Have you been declared by an emergency shelter
director funded by HUD to be a homeless
unaccompanied minor?
Did the director of runaway/homeless shelter
determine you to be homeless or self-supporting?
How is aid eligibility
determined?
Cost of education
- Expected Financial Assistance
(outside resources)
- Family contribution
= Student’s financial need
What is included in
cost of education?
Tuition and fees
Room and board
Books and supplies
Transportation
Miscellaneous personal expenses
Other optional costs that
might be included:
Computer (one time)
Student Health Insurance
Child/dependent care costs
Specialized equipment
Supportive needs
What are outside resources?
Scholarships from non-institutional
sources
Clubs and civic organizations
Churches
Employers
Foundations
Certain types of benefits
Private gifts
How is the family
contribution determined?
Parent contribution from income
(after allowances)
Parent contribution from assets
(after allowances)
Student contribution from
income and assets
What are merit-based
scholarships?
Availability varies from institution to institution
Strategies underlying merit awards vary
Recruiting device
Awarded after student is admitted
Procedures for being considered vary
Nomination
Scholarship application
Admission application
Questions To Ask About
Merit-Based Aid
Is the scholarship renewable?
If so, what are the requirements for
renewal?
Will it affect my need-based aid
eligibility?
What are
athletic scholarships?
Usually awarded by athletics
department, not admission/financial
aid office
Partial and Full scholarships
What are the components of
a financial aid package?
Gift Aid
Grants (Institutional, Federal, and State)
Merit-Based Scholarships
Self Help
Student Employment
Loans
Direct Stafford Loan (Student)
Perkins Loans (Some institutions)
Direct PLUS Loans (Parent)
Alternative Loans
Recap:
What is financial need?
Costs (variable)
Transportation
Books and Supplies
Tuition
Need (variable)
EFC (constant)
Room and Board
EFA
_
_
Estimated Financial
Assistance
(Outside Resources)
Student Contribution
=
Parent Contribution
How is need met?
Sample Aid Packages
Davidson
$49,954
$10,000
$39,954
Public U.
$22,000
$10,000
$12,000
Private U.
$35,000
$10,000
$25,000
Merit
Grant
Loan
Work Study
$0
$37,854
$0
$2,100
$0
$5,000
$3,500
$1,800
$10,000
$7,000
$4,000
$2,000
Total Aid
Unmet Need
$39,954
$0
$10,300
$1,700
$23,000
$2,000
$10,000
$11,700+loan
+interest
$12,000+loan
+interest
Cost
EFC
Need
Total Paid
Other Helpful Options
Summer/academic year employment
Payment plans
Federal Direct Stafford Loans
Federal Perkins Loans (at some
institutions)
Federal Direct PLUS Loans
Lines of credit and home equity loans
What are other things you
should know?
Deadlines are important
Early Decision/Early Action
Net Price Calculators
Need-blind vs. need-sensitive
May 1: National Candidates Reply
Date
What about the current
economic situation?
Institutions may choose to consider
individual family circumstances at
different times throughout year
Might affect a family’s funding options
Might not affect family contribution
Consumer Tips
Fee-based financial aid consultants?
Avoid scholarship programs that charge
application fees
Avoid scholarship search services that
charge fees
On-line Resources
The College Board
www.collegeboard.com
SmartStudent Guide to Financial Aid
www.finaid.org
Federal government
www.ed.gov
Scholarship Web sites
School Web sites
www.davidson.edu
Questions?
Thank you!
This presentation created by:
John B. Leach
Associate Dean
Office of Admission and Financial Aid