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