Presentation on theme: "College Financing Workshop"— Presentation transcript:
1 College Financing Workshop Greg BallAssistant Vice ChancellorBrandman UniversityChapman University System
2 Workshop Agenda Getting ready – the college calendar College costs Debunking college financing mythsTypes of financial aid - grants, scholarships, work & loansThe application process - (FAFSA, GPA Verification Form, CSS Financial Aid PROFILE and other forms)Evaluating Financial Aid AwardsNext steps in the process
3 The College CalendarCheck out the specific deadlines for schools of interestOctober - MarchIF REQUIRED BY THE SCHOOL, complete the CSS Financial Aid Profile form. (Only required by about 500 schools)Apply for scholarshipsApply for admissionNovember – March: Obtain FAFSA-on-the-Web Pre-Application Worksheet (www.fafsa.ed.gov)December 15: Notification date for early admission at some schools
4 The College Calendar February - April: January - February: Submit FAFSA & Cal Grant GPA Verification FormCheck on housing application deadlinesFebruary - April:Notifications for regular admission followed by financial aid award letters.Send add’l documents as requested (IRS tax return transcripts and other forms)Before deciding where to attend, visit the colleges, if possible
5 The College Calendar Hit the books! May 1: Send tuition & housing deposits (most 4-year schools)Summer:OrientationPre-registrationAugust – September:Hit the books!
6 Strategy Work with Your Guidance Counselor Stay Organized Keep a file on each collegeAdmissions application deadline and required documents, copies and dates of each document submitted and all correspondenceRecord of campus visits and telephone conferencesFinancial aid application deadline and required documents, copies and dates each document was submitted and all correspondence.Costs for tuition, fees, residence hall, etc.
7 Strategy Stay Organized Financial Aid File FAFSA CSS Profile Form (if required)Student Aid Report Information Acknowledgement (received after filing FAFSA)Copies of Tax Returns and W-2sCopies of corrections
8 Deadline Dates & Mailing Procedures Assume deadline date means “received” date - both for electronic and paper submissionsMail at least one week before the deadline dateCertificate of Mailing is recommendedDo not send “Certified Mail” to a PO BoxIf mailing to a PO Box, do not use private overnight delivery services (i.e., FedEx, etc.) as they don’t have access to PO boxesYou may use U.S. Post Office Priority Mail to mail to a PO Box
9 Common ErrorsFailing to submit all required application forms and documentsMissing application deadlinesSubmitting incomplete application forms or documents
10 The Financial Aid Equation Cost of Attendance- Expected Family Contribution (EFC)= Estimated financial need oreligibility for financial aid
11 The Costs Of Going To College Tuition & FeesBooks & SuppliesRoom & BoardPersonal ExpensesTransportation
12 How Expensive is it? College A charges $10,000 College B charges $20,000Which is more expensive?College A if College B provides $15,000 in scholarships and College A provides no assistance.What if College B provided no scholarship assistance but provided $15,000 in low interest loans instead?
13 To assess costs, you need to know: The Sticker PriceThe Amount and type of Financial AidFew Families at high cost schools pay the full sticker price.
15 Financial Aid Award Packaging Availability of funds and institutional policy will influence amount and type of aid offeredMany schools are unable to meet full federal financial aid eligibility (need) due to limited resourcesSchools may use different need analysis methodologies to distribute aidSchools may use the federal need analysis methodology but under-award each student by a fixed amount or by a percentage of eligibility
17 Reduce Costs By:Take AP, IB, and CLEP tests and attend a college that accepts the results.Attend summer schoolIf attending a different college in the summer, be sure the units will transfer and are applicable to your degree.Max out on credits each term.Choose a major early.
18 Financial Aid Myths Scholarships will pay our student’s college costs. Reality: Only 4% of total financial aid is in the form of merit or talent-based scholarships.Our family makes too much money to qualify for financial aid.Reality: Many factors beyond annual income are considered in determining a family’s ability to pay for college expenses. These include family size, net value of assets, age of parents, number of children in college, and special circumstances.
19 Financial Aid MythsThe equity in our home will make our child ineligible for financial aid.Reality: Federal and state formulae do not consider home equity. Some independent institutions do review home equity but often adjust it relative to family income. Home equity is requested on the CSS Profile Form.Our other assets will make our child ineligible.Reality: Parental assets are protected for retirement. Parental assets have no effect on eligibility for 95% of applications. For the remaining five percent, no more than 5.7% of parents’ net assets (savings, investments, equity) are used in determining eligibility for aid. Retirement funds (IRA, 401K, 403b, etc.) are not considered assets (except for CSS Profile Form) but pre-tax amounts contributed in the prior tax year are considered untaxed income.
20 Financial Aid MythsI am not an A student or an athlete, so I will not be eligible for financial aidReality: Most financial aid is awarded on the basis of the economic situation of the parents and student. There also are funds available to students with special talents.Financial aid is available only to minoritiesReality: Although a few scholarships are based on race, gender, disability, or other special factors, the overwhelming amount of moneys are awarded on the basis of financial need. Awards based on academic ability, athletic and other special talents, and community service also exceed awards based on minority status.Loans are not a form of financial aidReality: Loans provide cash flow assistance by allowing students to spread the costs of college over a longer period of time. They are subsidized by the federal government.
21 Financial Aid Myths Big, prestigious colleges will award more aid Reality: Every college makes its own decisions about how much aid to offer. Big colleges have big expenses, and some small colleges have large endowments or other financial aid resources.More non-education debt will get me more financial aidReality: Need analysis formulas do not consider consumer or mortgage debt. Families that have borrowed excessively will find paying for college more difficult. Debt is debt, and unwise borrowing is always unwise, especially if the purpose is to get more financial aid.
22 Financial Aid MythsI will have to go deeply into debt in order to go to collegeReality: Most students graduate with less debt than the cost of a single year of private school tuition. A good rule of thumb is not to borrow more during college than your expected starting annual salary when you graduate.We cannot afford the high cost of collegeReality: Only the wealthiest families pay the full cost of college. The highest cost colleges tend to provide the biggest financial aid and scholarship awards.Student employment hurts gradesReality: On average, students who work up to 15 hours per week actually get better grades than those who do not work.
23 Financial Aid Myths Millions of dollars go unclaimed each year Reality: The only aid that goes unclaimed is aid that is so restricted that no one can qualify for it.Colleges cut support during the junior and senior yearsReality: Some college might engage in this practice, but no one has been able reliably to name one. The most common reason for reducing support is a change in eligibility due to an older sibling graduating from college and consequently no longer being considered in the eligibility analysis.My neighbor did not get financial aid, so neither will IReality: Your neighbor is not you. He or she may have significantly different financial circumstances than you do, despite outward appearances. Your neighbor’s child may have attended a lower cost school, or your neighbor may want you to think he or she is not receiving support. The only way to learn if you are eligible for financial aid is to apply for it. If you do not apply, you definitely will not receive assistance.
24 Financial Aid MythsThere is no point in applying for financial aid this year because I was denied assistance last year.Reality: Eligibility rules for financial aid change each year as do family circumstances. The only way to know if you are eligible is to apply.I should wait until I have filed tax returns before applying for financial aid.Reality: Meet the application deadlines! It is easier to complete the application materials after tax returns have been finalized, but it is far worse to miss a deadline. If you have not completed your tax returns by the application deadlines, estimate as closely as possible the information you report on the application and provide corrections later if needed.
25 Financial Aid MythsPrenuptial agreements and trust funds are good tools for sheltering money from the eligibility analysisReality: A prenuptial agreement is between a husband and wife before they are married. It is not binding on a third party, such as the federal government or a college, and cannot be used to change financial aid eligibility rules. Likewise, restrictions established in a trust fund, such as limiting access to income or principal, also have no affect on eligibility.Applying for financial aid will hurt my chances for admissionReality: Most colleges practice “aid blind” admission, which means they make admissions decisions without regard to ability to pay. If you are interested in one of the very few schools that does consider financial aid applicants differently from non-applicants, you still should apply. If you need financial aid to attend a school and do not apply for it, you will not receive assistance and consequently still will be unable to attend.
26 Financial Aid MythsI should wait until I am admitted before applying for financial aidReality: Meet the application deadlines! Many application deadlines for financial aid are earlier than the dates that colleges announce admissions decisions. If you do not meet the financial aid deadline, you may not be awarded some aid because funds will be exhausted by the time you do apply. By meeting the deadline, you will be considered fully for all financial aid funds and will be notified shortly after learning of your admission.If I win a scholarship, it will reduce my financial aid packageReality: This might be true to some extent. Federal rules prohibit a student receiving more than needed to attend school. If you have already received all the aid the government calculates you need, additional assistance requires a reduction in previously awarded funds. In most cases, students have not been awarded their full eligibility, and a scholarship is simply added to the amount they are receiving. When aid must be reduced, most colleges reduce loans and employment rather than grants and scholarships.
27 Financial Aid MythsI will not qualify for financial aid because I have saved money for college.Reality: Not as true as it used to be. With passage of the Higher Education Reconciliation Act, the federal government uses only 20% of student assets as part of the family contribution. For instance, if a student has $5,000 in savings, the change to the family contribution would be $1,000: $5,000 X 20% = $1,000. In some special circumstances, student assets are not considered at all.If my parents do not claim me on their tax return, I will get more aidReality: Not true since 1992 and not always true then.
28 Independent Student Criteria . . . The student MUST:be born before January 1, 1991, orbe married, orhave a dependent child living with the student and the student must be providing at least 50% support, orbe a Veteran of Armed Services or on active duty for purposes other than training, orat age 13 or older, be an orphan, foster child, or Ward of the Court, orbe a graduate degree seeking student, or
29 Independent Student Criteria Continued… be an emancipated minor as determined by a court, orbe in legal guardianship as determined by a court, orbe an unaccompanied youth who is homeless as determined by your high school homeless liaison, the director of an emergency shelter program funded by the US Dept. of Housing and Urban Development, or the director of a runaway or homeless youth basic center or transitional learning program, orspecial circumstances as determined by the Financial Aid OfficeIf “dependent,” parental financial information must be included on the FAFSA
30 Types of Financial Aid Grants (gift aid based on need) Scholarships (gift aid based on merit/talent)Work-StudyEducational Loans(student & parent loans)Depending on circumstances, students may obtain all types of aid (and several different grants, scholarships, loans and work-study)
31 Need-Based GrantsFederal Pell Grants ($5,645 maximum for year)Federal Supplemental Educational Opportunity Grant (FSEOG)$4,000 annual maximumState Cal Grants (financial need; sophomore and junioryear cumulative GPA)CSUs - full educationally-related, system-wide feesUCs - full educationally-related, system-wide feesIndependents – up to $9,084 forCollege GrantsCommunity College Fee Waiver (BOG)CSU State Univ Grant (SUG)UC GrantIndependent college grantsGrants are based on your financial need using that federal formula we mentioned. ClickEveryone wants as much grant aid as possible, because you don’t have to work for it and you don’t have to pay it back - it’s a gift. However, there isn’t enough grant aid to go around so even though you may have financial need, grants only go to the neediest of the needy families.The largest of all the grant programs is the Pell Grant. The maximum Pell Grant for next year will be $2,700. clickWe very fortunate in California to have one of the largest state grant programs, called Cal Grants. The Cal Grant is one of the only grant programs that not only requires need, but you also have to have a good GPA to be eligible. For this year, the minimum GPA was 3.16, counting your sophomore and junior years in high school only and that doesn’t include any weighted grades for honors or AP classes nor PE grades. However, once you get it, you’ll get it for 4 years, regardless of your college grades, as long as you show need each year. The Cal Grant award varies depending on which school you attend. At a CSU, the award is about $1,600; at a UC, it’s about $4,000, and at a private California college, it’s over $7,000. ClickThere’s also a Supplemental Grant or SEOG, Clickand the colleges have their own grants, including the community college fee waiver or BOG; the CSUs have their SUG or State University Grant; the UC s have their UC Fee Grant; and the private colleges use a lot of their tuition revenue to give back to needy students in their own grants. Click
32 Cal GrantsFor California residents attending a California college or universityCal Grant A Entitlement Awards based on: a financial need of at least $1,500; GPA of at least 3.00 in sophomore-junior years in high school; and family’s total 2013 income and assets are below State ceilingsCal Grant B awarded to very low-income families with at least a 2.0 GPA and financial need of at least $700Cal Grant C for occupational or vocational programsBy March 2, 2014, submitFAFSA toCal Grant GPA Verification Form to the California Student Aid Commission
33 2013-2014 Cal Grant A Income & Asset Ceilings NOTE: income & asset ceilings subject to change$64,300$89,1005$83,1004$76,5003$74,70026 or more $96, $64,300Source: California Student Aid Commission (CSAC)
34 Community College Fee Waiver The California Community College Board of Governors’ Enrollment Fee Waiver (BOG Fee Waiver) waives the California Community College’s enrollment fee for California residents:who are eligible for need-based financial aid, orwho receive CalWORKs/TANF, SSI, or General Assistance payments, orwhose family income falls below published income ceilingsTo learn more about this BOG Fee Waiver, go to
35 ScholarshipsAvailable from colleges, companies, community-based groups and other organizationsUsually require separate applicationsMay require transcript, essay, interview, or auditionBeware of scholarship search companies that charge a feeAt least once each week, check with the high school guidance office about scholarship opportunitiesMake use of free scholarship searches
36 A Lot Has Been Said About Students And Parents Getting Hooked By Fraudulent Scholarship Scams Beware false claims!“Thousands of dollars in scholarships go unclaimed each year”“Guaranteed or your money back!”“Give me your credit card or bank account number to hold this scholarship”“The scholarship will cost some money”“You’ve been selected. . .”“You’re a finalist in a contest” (that your child never entered)
37 Free Scholarship Searches These sites also contain useful financial aid information
38 Check out www.fastweb.com on the Web! This one’s on the levelSupported by:U.S. Department of EducationOver 1,300 colleges use their logoPraised by: LA and NY Times, Business Week, Money Magazine, Kiplinger’s, Wall Street Journal, CNN Financial News, CNBC, MSNBC. . .Many happy student testimonials
39 www.fastweb.com Has over 1,000,000 scholarships in database These are worth over $3 billionEach scholarship updated quarterly to maintain accuracy of databaseParent’s page offers unique perspectives from financial aid expertsSupported with an advisory board of educators
40 Sample Scholarship Application Questions Education, work and activities:High school and colleges attended, year in school, GPA, SAT/ACT scores, community service and employment historyStudent sports, hobbies, special talents/skills, and other interestsContact data:Name and address of studentDemographics:Birth date, gender, race, heritage, religion, marital status, citizenship, disabilitiesParent employer, education, and veteran status
41 Features of www.fastweb.com Easy to use - just go on the web page using the above URL addressGive yourself a passwordAnswer the questionsWait a few minutes for the search to take placeThen print out a letter to any sponsor chosen & submit itFollow up with sponsors
42 Additional features:Go back and visit your mailbox periodically-- fastWEB updates it with new scholarships listings for which you might be eligibleLink with important sources for general financial aid informationGet tips for making a good searchParents can use parent chat room
43 Gates Millennium Scholarship Funded by the Bill and Melinda Gates FoundationMinimum 3.3 high school GPAAfrican American, Asian, Hispanic or Native American students who are Federal Pell Grant eligible in their first year of collegeApplication deadline – January 15, 2014Renewable for undergraduate and graduate studiesMaintain minimum cumulative college GPA of 3.0Continue to demonstrate financial needMeet renewal deadlinesApplication and more information available at
44 Student Work EarningsWork-Study - Work program during school year or summer for students with financial needRegular work earnings during school yearSummer jobsStudies show that students who work in campus-sponsored jobs earn, on average, better grades than non-working students and are more likely to graduate in four years
45 Educational Loans: An Investment in the Future Federal Perkins LoansFederal Direct Stafford LoanFederal PLUS (Parental) Loan for Undergraduate StudentsPrivate or Institutional Loans for students and parentsInstitutional Monthly Payment PlansSome families use home equity loan for collegeInterest paid on student loans is deductible on federal tax returns for many middle income students and parents
46 Federal Direct Stafford Loans Student’s educational loanFrom federal government “direct” to school for students2 types: subsidized or unsubsidizedSeparate application/promissory note required (at least for the 1st year)Virtually all students (if enrolled half-time in a degree or certificate program and a U.S. citizen or eligible non-citizen) are eligible, regardless of financial need
47 Subsidized Direct Loans Need-basedNo payments or interest while in schoolHow much? $3,500 for freshmen; $4,500 for sophomores; $5,500 for juniors and seniorsPayments & interest begin 6 months after graduationInterest rate: 3.86% for undergraduatesRepayment options from 10 to 25 years
48 Unsubsidized Direct Loans Eligibility not based on income or needInterest rate of 3.86% for undergraduates begins when funds are disbursedDefer interest or pay interest while in schoolMaximum amount: $2,000 plus the borrowing maximum for the subsidized Direct Loan if student is ineligible for a subsidized Direct LoanAdditional borrowing - independent undergrads and dependents whose parents are ineligible for PLUS:$4,000 for freshmen/sophomores; $5,000 for juniors/seniors; grads up to $10,000
49 Federal PLUS (Parental) Loans Parents may borrow the total cost of education less any financial aid received (can be used to replace parent and student EFC)Interest rate: 6.41%monthly repayment ~ $100 per month for every $10K borrowedMinimal credit check requiredSeparate application is necessary (in late spring/early summer)Interest on loans is income tax deductible for many middle income parents
50 Net Price CalculatorFederal rules require that most colleges provide “Net Price Calculators” on their websites to give families information about the net cost (tuition minus estimated financial aid) to attend that college.LimitationsSome schools use sophisticated analysis; others use averages.Only as good as the information submitted.Bottom Line: Results may be unreliable.
51 How Students Apply for 2014-2015 Financial Aid FAFSA (Free Application for Federal Student Aid)Cal Grant GPA Verification FormFor California Residents OnlyCSS/Financial Aid PROFILE (if required)2013 IRS Federal Tax Transcripts2013 IRS Federal Tax Returns (including all schedules and W-2 forms) or Non-Filing FormsOther required forms may include:Verification FormNoncustodial Parent FormBusiness/Farm SupplementOther Special Appeal Forms
52 2014-2015 Application Materials All SchoolsFAFSA (Free Application for Federal Student Aid)File online after January 1, 2014 at:The electronic FAFSA Worksheet is available online in mid-December.File no later than the earliest college deadlinesThe FAFSA is usedfor federal aidfor some state aidby some schools for awarding institutional aidby you to list all schools to which you want your family information to be sent
53 2014-2015 Application Materials Some SchoolsCSS/Financial Aid PROFILEThe PROFILE Registration Guide, listing those schools that require the forms, is available on line at The College Board and also from the colleges and universities.Apply now at:Submit customized PROFILE no later than the earliest college deadlinesThe PROFILE is usedby some schools to award institutional aidto list all schools to which you want your family information sent
54 2014-2015 Application Materials OtherIncome Documentation2013 Federal Tax Transcript2013 Federal Tax Returnsall schedulesall W-2 formsdocumentation of non-taxable incomeOther Supplemental FormsDeveloped by individual college or university. Examples:Non-custodial parent or divorced/separated formBusiness/Farm SupplementVerification FormAppeals and Special CircumstancesCheck with schools to determine procedures and required documentation
55 Free Application for Federal Student Aid (FAFSA) FAFSA is the central element in federal student aid application processAsks for family’s financial and demographic informationUsed to calculate Expected Family Contribution based on federal methodology (FM)Used to confirm certain student eligibility criteria via database matches with federal agencies
56 Free Application for Federal Student Aid (FAFSA) Electronic FAFSAFAFSA on the WebPaper optionmid-December distributionIncludes postcard and supplemental information pageDistribution of the FAFSA will begin in early October. All FAFSAs will have been shipped by October 31). Quantities will be shipped to high schools automatically based on last year’s volumes.The “paper” FAFSA will again include a postcard to which the filer can affix a stamp to receive a confirmation of receipt from the federal FAFSA processor. The paper form will also include a supplemental information page detailing Federal programs.An electronic application option remains available via the Internet through FAFSA on the Web. NOTE: the PC-based “FAFSA Express” application option will be continued for at least one more year.
57 2014-2015 Electronic FAFSA Process Student uses FAFSA on the Web to enter and transmit application data to CPSFor FAFSA on the Web, student and family use PIN, or they print, sign and mail signature page to FAFSA ProcessorCPS edits data, performs database matches, calculates EFC, sends SAR Information Acknowledgement to student
58 Federal PINPIN (Personal Identification Number) serves as the electronic signature on the FAFSA and other federal aid documentsStudent and at least one custodial parent need a PINMay also be used to:Check on FAFSA statusVerify FAFSA dataMake FAFSA Corrections on the WebReapply for financial aid in future yearsApply NOW for your PINs at:
59 Paper FAFSA ProcessStudent (and family) completes either a paper FAFSA or Renewal FAFSAStudent mails paper FAFSA to FAFSA processorFAFSA processor enters and transmits application data to Central Processing System (CPS)CPS edits data, performs database matches, calculates EFC, prints and mails Student Aid Report (SAR) to student
60 Federal Methodology Need Analysis Many factors considered, includingTaxed and untaxed income of custodial parent(s) and studentNumber of family membersNumber of dependent children in college at least 1/2 time in for at least 1 academic termAge of older parent (to protect assets for retirement)Net assets (checking, savings, investments, ‘other’ real estate equity, business and farm equity)Neither home and/or family farm equity nor retirement assets are used to calculate eligibility for California state or federal aid
61 FAFSA Information & Tips File no later than March 2, 2014 or the earliest college deadline – whichever comes firstEasier to complete using 2013 tax return but use estimated income information if tax return is not filed.Student, parent, & preparer must sign FAFSA or provide PIN number for each
62 FAFSA Information & Tips May list up to 4 colleges on paper FAFSA, 10 on electronic FAFSADivorced or separated? Include custodial parent information onlyCustodial parent remarried? Include step-parent information as wellStudent and parent must complete the FAFSA every year by school's published deadlineAfter slide 48, insert NASFAA slides 40 through 54 inclusive
63 Common FAFSA ErrorsLeaving a field blank (If the answer is zero, write “0”).Not using legal name as it appears on the student’s Social Security card.The words “you” and “your” on the FAFSA always refer to the student, not the parents.Confusing “total income tax” with adjusted gross income, taxes withheld, or taxes due.Listing retirement assets as investments.
64 Common FAFSA ErrorsNot reporting Earned Income Credit, retirement plan contributions, combat pay, and military food and housing allowances as “untaxed income.”Not counting the student as a member of the family and/or as a family member who will be attending college.Women failing to indicate they are women for the Selective Service question.
65 Common FAFSA ErrorsNot listing colleges you want to receive the report, listing the wrong colleges, or using the wrong Federal School Code.Not reporting the student’s housing plans for each college.Not signing the form. (The student is always required to sign. At least one parent also must sign if parental information is required to be reported.)
66 FAFSA: Step One General student information: Name & address SSN & date of birthTelephone numberDriver’s license & stateaddress
67 FAFSA: Step One General student information (Questions 14 – 22): CitizenshipMarital statusState & date oflegal residenceSelective Service
68 FAFSA: Step One General student information (Questions 23 – 26): Drug ConvictionParent’sEducationHigh schooldiploma
69 FAFSA: Step One General Student Information (Questions 27 – 31 High School Info.First Bachelor’s DegreeYear in SchoolAcademicProgramWork StudyInterest
70 FAFSA: Step TwoStudent’s (& spouse’s, if married) income & asset informationQuestions 32 – 35:Student (& spouse, if married) 2013 IRS income tax return status & type
71 FAFSA: Step Two Questions 36 – 40: Student (& spouse, if married) 2013 adjusted gross income, federal tax paid, number of exemptions, and earnings from employment.
72 FAFSA: Step Two Questions 41 – 43: Total cash, savings, & checking Net worth of investmentsNet worth of businesses & investment farms
73 FAFSA: Step TwoQuestion 44 (Student’s Additional Financial Information):Education CreditsChild Support PaidTaxable Earnings from Need Based EmploymentFinancial Aid Reported to IRS As Part of AGICombat PayEarnings from Cooperative Education at a College
74 FAFSA: Step Two Question 45 (Student’s 2013 Untaxed Income): Payments to tax-deferred retirement plansIRA deductionsChild support receivedTax exempt interestUntaxed retirement distributionsLiving allowancesVeteran’s non-educational benefitsGiftsOther
75 FAFSA: Step Three Student’s dependency status questions: If all “no” responses, student is dependentIf “yes” to any question, student is independent
76 FAFSA: Step FourFinancial & household data for parents of dependent studentsQuestions 59 – 69Marital statusSSNs, last names, first initials, & dates of birthAddress
77 FAFSA: Step Four Questions 70 – 79 for parents: State and date of legal residencyHousehold sizeNumber in collegeReceipt of Federal Benefits
78 FAFSA: Step Four Questions 80 – 84 for parents: 2013 Federal tax return filing status and dislocated worker.
79 FAFSA: Step Four Questions 85 – 89 for parents: Parents’ 2013 adjusted gross income, federal tax paid, number of exemptions, and earnings from employment.
80 FAFSA: Step Four Questions 90 – 92 for parents’: Total cash, savings, & checking accountsNet worth of investmentsNet worth of businesses & investment farms
81 FAFSA: Step FourQuestion 93 (Parents’ Additional Financial Information):Education CreditsChild Support PaidTaxable Earnings from Need Based EmploymentFinancial Aid Reported to IRS As Part of AGICombat PayEarnings from Cooperative Education at a College
82 FAFSA: Step Four Question 94 (Parents’ 2013 Untaxed Income): Payments to tax-deferred retirement plansIRA deductionsChild support receivedTax exempt interestUntaxed retirement distributionsLiving allowancesVeteran’s non-educational benefitsGiftsOther
83 FAFSA: Step Five Questions 95 – 102: Independent student’s & spouse’s (if married) household size & number in college2013 Federal Benefit ProgramsDislocated worker
84 FAFSA: Step SixList of up to 4 schools to receive FAFSA data or 10 schools by filing online:Question 103:Federal school code for each schoolName/address for each schoolHousing plans for each school
86 “More Than Four” (or Ten) Strategy Get PIN and file electronicallyNot absolutely necessary but faster than paper and you can list 10 schools instead of 4.File earlier than the DeadlineFor every 10 additional schools, electronically file at least five business days earlier than the deadline. If you are considering 25 schools, make initial application at least 10 business days before the deadline (25 schools equals one initial group and two more groups. Two more groups equals 10 days.)On the first FAFSA, list your first 10 schools with the most expensive California school first. (Slight advantage for Cal Grant)
87 “More Than Four” (or Ten) Strategy About three to four days after sending initial electronic FAFSA, you will receive an electronic notice that the FAFSA has been processed and that data has been transmitted to your first 10 schools. Go to FAFSA-on-the-Web, change the current 10 schools to the next 10, electronically sign the corrections with student’s and one parent’s PIN, and resubmit.In another three to four days, you will receive notice that your corrected FAFSA record has been processed. If you still have more schools to which you wish to apply, log on to FAFSA on the Web and repeat this process until all your schools have been notified.
88 “More Than Four” (or Ten) Strategy When you decide to attend a particular school, make sure that school is listed to receive your FAFSA information. If it was on the last list of schools you submitted, you need do nothing. If it was one of the earlier schools you listed to receive your information, go back to FAFSA-on-the-Web, remove one of the currently listed schools, and replace it with the school you have decided to attend. Again, the student and at least one parent must electronically sign (PIN) the e-FAFSA.
89 Federal Resources General info or technical questions: (800) or (800) 4 FED AIDPIN Application ProcessFAFSA on the WebFederal School Codes by state by schoolStudents, parents, and counselors again have access to toll-free 800 number for general financial aid information and inquiry with the Department of Education.Calls from outside the U.S. can be made to (319)The toll free service can be used by students requiring specific technical assistance or duplicate copies of their Student Aid Reports.Federal information and assistance is also available from the Department of Education's Website:FAFSA on the Web can be accessed for online filing, and federal school codes are also available from the Department of Education's Website.
90 Financial Aid Notifications Award notification usually contains:Cost of attendance at that schoolHow the student’s need for assistance was determinedTypes and amounts of aid offeredHow aid will be disbursedTerms and conditions of offer
91 Financial Aid Notifications Students should:Accept or decline offerSign and return award notification to financial aid office, if requiredIf borrowing, complete loan counseling and sign promissory note (usually done online)
92 Summary of Financial Aid Process SubmitCSS Financial Aid PROFILE (for the independent colleges that require it)Federal FAFSA (to be completed every year after January 1)College Financial Aid Applications (some schools)Cal Grant GPA Verification Form before March 2Review Student Aid Report (SAR) for accuracy
93 Summary of Financial Aid Process If required, submit verification documents including 2013 federal tax transcriptsWhen you receive financial aid award notifications from collegesCompare and evaluate financial aid award lettersDecide which college to attendComplete loan applications if you or your parents plan to borrow
94 Making a DecisionSelect the college based on all the factors, not just cost and financial aidAcademic ProgramReputationLocationClass sizeLearning environmentCaliber of faculty
95 Making a DecisionType of College (Two year, four year, public, private, etc.)Is this my last school or next stop?Quality of facilitiesNature of the student bodyReligious affiliationRelationships with professorsSafety and emergency servicesWhat sacrifices must I make and are they worth it?
96 Making a Decision How long does it typically take to graduate? Career ObjectivesComfort Level (How does it feel?)How long does it typically take to graduate?Nationally, only 30% of students who start at a four year school graduate within four years.Six years at a less expensive college might cost more than four years at a higher cost institution.
97 Evaluating Aid Packages Financial aid awards contain varying amounts of grant, work-study, and loanCompare the awards you are offered to the cost of the college that made the offerConsider your need, not calculated need, and compare it to the offerGrants and scholarships vs. loans and workWhat are the terms and conditions of the scholarships, grants, and loans you have been offered?
98 Evaluating Aid Packages Is financial aid renewable?What are the terms for renewal?How long?If I study abroad, what will happen to my financial aid award?What if a parent or student loses a job?What if a parent or student obtains a higher paying job or gets a raise?What if I inherit a large sum of money?
99 Special Circumstances Contact the Financial Aid Office if there is:A loss or reduction in parent or student income or assetsA death or serious illness of family memberUnusual medical or dental expenses not covered by insuranceReduction in child support or social security benefitsFinancial responsibility for elderly grandparentsRoth IRA rolloversCasualty losses due to weather, fire, flood, theft, etc.Unusual capital gainsChildren with special needsTuition expenses at a private elementary or secondary school
100 Special Circumstances Bankruptcy or foreclosureCustodial parent remarries after application dateAlimony payments that are not deductible on the tax returnChange in income due to retirementParent called to active duty in the armed forcesChild care costsAny other unusual circumstances that affect ability to contribute to higher educationThe information you provide should be in writing, and the college may require completion of special forms and supporting documentation
101 Special Circumstances If you have a special circumstance, notify the financial aid office at each school to which you are making application.Before filing the FAFSA (and Profile form if required) learn the procedure for notifying the school about the special circumstance. Some schools prefer to have the information before making their financial aid decisions; others will ask you to wait until you receive their award letter.Respond promptly to any requests for additional information.Do not be concerned if you send information at a time different from when it is desired or if the information is incomplete. Financial aid administrators want to take your situation into account and will work with you.
102 Requesting Revision of a Financial Aid Award Over 85% of students receive adequate financial aid awards by doing nothing more than submitting a FAFSA and other application materials. If you are awarded and need more assistance, consider using this strategy when contacting the financial aid office:Establish a relationship. If possible, meet with a financial aid counselor or at least speak with one by telephone so that your situation can be fully understood .Make a written statement with supporting documentation. A written statement will be needed in order to meet audit and other requirements. Some schools may require the statement prior to the meeting with the aid administrator; others will ask you to submit one at your earliest convenience after the meeting. If you write before the meeting, make a supplemental statement after the meeting expressing appreciation for the meeting and summarizing your understanding of the discussion. If more information is needed, be sure to include it. When writing, include documents that verify your situation. For instance, if you have lost your job, include a copy of the termination notice and unemployment benefits.
103 Requesting Revision of a Financial Aid Award Work the people, not the system. Financial aid administrators are dedicated to making higher education affordable and are sympathetic to students who sincerely want to attend college. They are also well trained in the literally thousands of pages of regulations designed to assure proper stewardship of governmental and institutional moneys. Arguments about being “entitled” to additional funds because of some governmental rule are seldom successful because financial aid professionals know all the rules and have a sound rationale for the decision that was made. Entitlement arguments also take the discussion away from the needs of the student and into the realm of technical, regulatory knowledge. Instead, express your concerns about your award, establish a sympathetic relationship (which is easy since financial aid administrators want to help), and let the financial aid administrators work the system.
104 Requesting Revision of a Financial Aid Award “Let’s Make a Deal.” You can mention that another college has made a larger offer and ask for additional consideration on that basis. The answer will always be “No” at public institutions. Most independent colleges also will advise you that they have made their best possible offer based on the information they have about your circumstances, but a small number of independent schools may wish to match or exceed a competitor’s offer.Be Forthright. Financial aid administrators understand that some people are so desperate that they will be untruthful, but you lose sympathy when you lose credibility.
105 Requesting Revision of a Financial Aid Award Know how much additional money is required. The financial aid administrator will first need to know what is needed in order to work with you effectively.Be prepared with a rationale for your determination about needing additional money. Provide your estimate of the costs, your estimate of what family and student can provide, any non-family resources, and the level of financial aid. Explain how you arrived at the numbers. You will likely be asked about special circumstances, data provided on the FAFSA, and tax returns, etc.Stay relevant. Explain the essential elements of your financial situation and why additional moneys are needed. Answer questions completely but do not volunteer additional information.Be courteous. Financial aid administrators understand that money can be of considerable concern and will work with everyone who needs assistance. Nevertheless, it is always advantageous to have people work with you because they want to, not because it is part of their job.
106 Requesting Revision of a Financial Aid Award Show sincerity. Explain how important attending college X is and how appreciative you are about the assistance you have already been offered. Explain the financial sacrifices you will be making, such as a parent working overtime or taking a second job. A student can work after school and in the summer to save money for college. It may be possible to reduce family expenses in order to afford college. (Please note: It is never helpful to undertake high spending and then claim there is no money left for education. A new car, extravagant vacation, etc. will indicate education is a low priority. Financial aid funds are limited, and schools will give the highest priority to students and families who demonstrate they believe higher education is of paramount importance.) Be willing to borrow.
107 Contact InformationGreg Ball Assistant Vice Chancellor Brandman University Laguna Canyon Road Irvine, CA (949) (Direct Line with Voice Mail) (949) (Brandman University Financial Aid Office) For immediate assistance, telephoning the office is recommended.
108 Good luck with your college planning! Thank you for comingGood luck with your college planning!