1. Navigating College Financial Aid Program Analysis
Dr. Herm Davis

2. Higher Education in Maryland
Institution
Year Founded
Washington College
1782
St. Johns of Annapolis
1784
University of Maryland at Baltimore
1807
Mount St. Mary’s
1808
MICA
1826
U.S.N.A
1840
U.M.C.P
1845
John’s Hopkins University
1857
Bowie State University
1865
Towson University
1866
McDaniel College
1867
College of Notre Dame
1873
Goucher College
1885
UMES
1886
Hood College
1893
Frostburg University
1898

3. COLLEGE SELECTION PROCESS
Quality of Education
Happiness
Security and Health
Affordability

4. “Top 10 Best Colleges: Public Schools National Universities” VS
“Top 10 Best Colleges: Public Schools National Universities” VS. “Top 10 Party Schools”
Top 10 Public Schools National Universities
(U.S. News & World Report)
Top 10 Party Schools
(Princeton Review rankings) 1
University of California – Berkley
University of Georgia – Athens 2
University of California – Los Angeles
University of Virginia
Ohio State University 3
University of Michigan – Ann Arbor
Penn State University – University Park 4
University of North Carolina – Chapel Hill
West Virginia University 5
College of William and Mary
Georgia Institute of Technology
University of Mississippi 6
University of California – San Diego
University of California - Davis
University of Texas – Austin 7
University of California – Santa Barbara
University of Texas - Gainesville 8
University of California – Irvine
University of Washington 9
University of Wisconsin - Madison
University of Iowa 10
University of Illinois
University of Florida
Purdue University
University of Georgia - Athens
University of Maryland – College Park
Depauw University

5. Components for Discussion
1 – Overview
2 – Forms Analysis
3 – Process Analysis
4 – FAFSA / CSS Profile Preparation & Analysis
5 – Resource Analysis
6 – Award Analysis

6. Overview of the Financial Aid Process
How to start the Financial Aid Process –
KNOW your 4 worst enemies!
Enemy #1 – Cost of Attendance
Enemy #2 – Missed deadlines
Two main reasons:
“Student must be admitted before filing for aid” – WRONG!
“Parents must have their Federal income taxes submitted” – WRONG!
Enemy #3 – Self discrimination
“We make too much to file for aid” – WRONG!
“We can’t afford a private college” – WRONG!
Enemy #4 – Your College Student
Student needs to check college’s financial aid website
Parents need to obtain their student’s ID and password

7. % Pell Recipients Among Freshman Estimated median SAT/ACT
4-year College Graduation Comparison Chart (1 of 2)
College or University
2011
4-Year Grad Rate
% Pell Recipients Among Freshman
Estimated median SAT/ACT
State
Size (Undergrad FTE)
Duke University
88.5%
13%
1440 NC
6,697
Wake Forest University
82.4%
14%
1325
4,657
University of Richmond
76.5%
1280 VA
3,457
Loyola University Maryland
79.2%
1198 MD
3,807
Johns Hopkins University
84.4%
12%
1395
5,820
University of North Carolina
at Chapel Hill
75.2%
20%
1310
18,579
Elon University
77.5%
10%
1215
5,032
Carnegie Mellon University
71%
1400 PA
5,830

8. 4-year College Graduation Comparison Chart (2 of 2)
College or University
4-Year Grad Rate
% Pell Recipients Among Freshman
Estimated median SAT/ACT
State
Size (Undergrad FTE)
University of Maryland-
College Park
66.1%
15%
1290 MD
25,535
Pennsylvania State University-Main Campus
63%
16%
1195 PA
37,763
Indiana University-Bloomington
49.8%
21%
1170 IN
31,427
Salisbury University
46.4%
1130
7,304
North Carolina State University
at Raleigh
40.8%
25%
1180 NC
23,172
Towson University
39.3%
1075
16,216
Hood College
60.2%
28%
1065
1,393
East Carolina University
32.5%
34%
1040
19,710

9. FAFSA Forms Analysis Free Application for Federal Student Aid (FAFSA)
CSS Profile
Institutional Aid Application (IAA)
Verification Work Sheet (VWS)

10. Free Application for Federal Student Aid (FAFSA)
Cost: Free
Submit for each student per year immediately after Jan. 1st.
PIN Required to sign electronically
fafsa4caster.ed.gov

11. CSS Profile https://profileonline.collegeboard.com
Cost is $25 for the initial application and $16 to add additional schools
CSS Non-Custodial Parent Profile cost is $25
CSS IDOC (Institutional Documentation Service)

12. Institutional Supplemental Forms
Institutional Aid Application (IAA)
“Institutional Funding Form”
Financial Aid Form found on college financial aid website
Verification Work Sheet (VWS)
-IRS Data Retrieval Tool (DRT) FAFSA Update
-VWS Form + w-2’s +IRS Tax Transcript
IRS ph:

13. Process Analysis Online processing How colleges receive data
How to correct data
EFC Formula
Awarding of Aid Formula

14. Maryland State Scholarship
ONLINE FAFSA Flow
FAFSA entered by
Student/Parent
School
ISIR
Individual Student
Information Report __ __
3. __ __
10.__
Student
Student Aid Report
S A R
Central
Processor
Student
Corrections
School
Award “Package”
Process
Maryland State Scholarship
Include a Maryland College
on the FAFSA
School
Award Letter Sent
to Student

15. FAFSA Preparation
-Who fills out the FAFSA? Parent(s) of the student, where the student has resided more than 50% of time of the calendar year. - Who’s information do you use? Parent(s) who are married or remarried OR Single, Divorced, Separated or Widowed?

16. FAFSA Preparation Student Financial Information
“As of today, what is your (student’s) total current balance of cash, savings and checking account(s)?”
“As of today, what is the net worth of your (student’s) investments, including real estate…”

17. FAFSA Preparation Parent(s) Financial Information
“As of today, what is the parent’s total current balance of cash, savings and checking account(s)?”
“As of today, what is the net worth of the parent’s investments, including real estate? (Don’t include the home in which your parents live. Net worth means current value minus debt.)”
“As of today what is the net worth of your parent’s current business and/or Investment farms? (Don’t include a family farm o family business with <100 FT employees)”

18. EFC FORMULA EFC = Expected Family Contribution
(ESC-I) Expected Student Contribution from Income
+ (ESC-A) Expected Student Contribution from Assets
+ (EPC-I) Expected Parent Contribution from Income
+ (EPC-A) Expected Parent Contribution from Assets
= (EFC) [Expected Family Contribution]

19. FAFSA Preparation Question? Student Parent
What is the value of your cash, checking, savings account?
$ 10,000
$ 20,000
What is the Value of investment accounts excluding all retirement accounts?
$ 6,000
$ 50,000
What is the value of your business account (excluding a family farm or family business with <100 FT employees)? $
20%
Age APA

20. Award Calculation LC MC 1 MC 2 HC COA $16,000 $20,000 $40,000 $60,000
EFC
$12,000
= NEED
$4,000
$8,000
$28,000
$48,000

21. FAFSA / CSS Profile Preparation and Analysis
Step-by-step Preparation
CSS Profile
Item Analysis
Student’s Income
Student’s Assets
Parent’s Income
-NO Untaxed Social Security
Parent’s Income Business/Farm Income
Untaxed Social Security Income
Parent’s Assets
-NO Home Equity, Retirement Plans or Business and Farm Assets
Including:
- Home Equity
-Retirement Plans
-Business and Farm Assets
Number in College
Special Circumstances
Non-Custodial Profile

22. Asset Protection Allowance
Age of older parent as of 12/31/13
Allowance if there are 2 parents
Allowance if there is only one parent 40
$27,300
$6,300 44
$30,000
$6,900 48
$33,000
$7600 50
$34,600
$8000 52
$36,500
$8300 54
$38,500
$8700 56
$40,600
$9200 60
$45,500
$10,200 64
$50,900
$11,300
65 and over
$52,000
$11,600
Example: If the age of the older parent is 50 and 2 parents are in the household: The asset protection allowance is $34,600

23. RESOURCE ANALYSIS Self Help Programs (Awarded before gift aid)
Work-study or student employment programs: federal and college.
Loans: Direct Loans, PLUS Loans and Private Loans –
borrowed money that you must pay back, usually with interest.
Gift Aid Programs – “Free Money”
Grants – Need Based
Money you don’t have to repay, typically based on financial need.
Scholarships – Merit and May be Need Based
Institutional, State and Private
Free money awarded usually based on your area of study or merit.

24. Federal Loans: The smart way to borrow
Federal Direct Loans
Subsidized Direct Loans
Based solely on financial need
Federal government pays the interest while you are in school
Unsubsidized Direct Loans
All eligible students can receive them, regardless of income or assets
You’re responsible for paying the interest while in school.

25. Federal Direct Loan Limits
Year
Dependent Undergraduates
Independent Undergraduates
Graduate and Professional Students
First Year
$3,500 + $2,000 = $5,500
$9,500
$20,500 – (effective 7/1/12- Grad Student Loans are only Unsubsidized)
_________________ Interest Rates – SEE Next Slide
Second Year
$4,500 + $2,000 = $6,500
$10,500
Third Year
$5,500 + $2,000 = $7,500
$12,500
Fourth Year
Total amount you can borrow
$27,000
$45,000

26. Federal Direct Loan Interest Rates
Loan Type
Current Interest Rates
( NOT Fixed rates)
Undergraduate Direct Loan
From 3.9 %
Not to exceed 8.25%
Graduate Direct Loan
From 5.4%
Not to exceed 10.5%
Direct PLUS Loan
(Parent Loan for Undergraduate Students)
From 6.4%
Not To exceed 10.5%
Federal Pell Grant = $5,635

27. Federal Direct PLUS Loans
Enable parents or stepparents (whose information is reported on the FAFSA) to borrow up to the cost of attendance.
Minus any other aid the student may receive
Legal guardians cannot borrow PLUS loans .

28. (Resource Analysis Continued)
Academic Common Market
“College 411” Guide
Innovative Opportunities
“Best College Deals” -
College Graduation Rates by years of study
Net Price Calculator

29. The Award Process
Colleges assign each student a password and user name after the admissions applications are received. The user name and password is assigned to allow students to monitor their admissions application, financial aid status, academic record and billing statements.
The financial aid offices uses this process to communicate with the students regarding their financial application status.

30. (The Award Process Continued)
After each college receives the aid application/documents it will post receipt of the document on the student’s financial aid page.
1. The posting will tell the student the status of the document received regarding its fulfillment.
2. If the college requires additional information, it will post the listing on the student’s aid page.
(PROBLEM: Student fails to monitor his/her financial aid page in order to take further action and thus complete the aid application process.)

31. 1. The awards will be posted for the student to accept or decline.
(The Award Process Continued)
After the student meets all requirements for awarding, the aid office will post the award on the student’s account.
1. The awards will be posted for the student to accept or decline.
2. If accepted, the student will be instructed regarding any additional action to be taken.
(Note: A student should check his/her college account as well as their personal account and regular U.S.P.S)
(Problem: Student fails to monitor his/her financial aid page to either accept or decline awards. In addition, even after accepting, many times the student fails to complete the award process by not fulfilling the loan application process.)

32. Navigating College Financial Aid
Program Analysis
Dr. Herm Davis
ww.drhermdavis.com