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Leslie Limper Director of Financial Aid Reed College

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1 Leslie Limper Director of Financial Aid Reed College
Financial Aid Basics Leslie Limper Director of Financial Aid Reed College

2 Tonight’s Agenda Overview of The Financial Aid Process How do I apply?
What is financial need? Cost of Attendance (COA) The Expected Family Contribution (EFC) Types of Financial Aid Sources of Financial Aid Resources for additional information

3 The Financial Aid Process
Application for admission Application for financial aid (FAFSA) Supplemental applications (CSS Profile, institutional and scholarship applications) Determination of eligibility Notification of award Acceptance of award Disbursement of award

4 Initial Considerations
Merit vs. Need Need Blind vs. Need Aware Early Decision vs. Early Action vs. Regular Decision Level of Parental Involvement Beyond the Freshman Year

5 FAFSA: Free Application for Federal Student Aid
For the academic year, the FAFSA may be filed beginning January 1, 2014 Colleges may set FAFSA filing deadlines Collects financial information used to calculate the family’s expected family contribution May be filed electronically, or paper version may be obtained by calling FEDAID

6 FAFSA on the Web Home Page

7 Don’t Go There!

8 Student Financial Aid (SFA) PIN
Web site: Sign FAFSA electronically Can request PIN before January 1, 2014 Not required, but speeds processing May be used by students and parents throughout aid process, including subsequent school years

9 FAFSA Completion Challenges
Correct Social Security Numbers Definition of a parent Student independency criteria Assets

10 Unmarried and Married: Who are The Parents?
Never married, living separately: Include the legal custodial parent only Never married, living together: Include both legal parents (note: do not include partners who are not the student’s parent) Same sex couples in a state-recognized marriage: Include both parents or legal parent and stepparent

11 Separated, Divorced, Remarried: Who is The Parent?
Who did the student live with more during the past 12 months? NONE/EQUAL, then Who provided the most support in the past 12 months? NONE/EQUAL, then Who provided the most support during the most recent year that student actually received support? WHO LAST CLAIMED STUDENT? Remember, include information for stepparent if currently married to The Parent.

12 Assets Assets include: Current cash, savings, and checking balances
Investments (including stocks, bonds, trust funds, 529 plans) Rental properties and second homes Assets do not include: Primary residences Family owned businesses (under 100 employees) Family owned farms Retirement accounts

13 Supplemental Financial Aid Applications
College Scholarship Service PROFILE (CSS PROFILE) Non-Custodial PROFILE (NCP) Institutional supplemental forms

14 College Scholarship Service (CSS) PROFILE
Available in the fall of a student’s senior year (useful for ED and EA admission programs) Used by private, usually selective colleges to determine eligibility for need based institutional grant funds Allows families to more completely describe their financial commitments (medical, private elementary and secondary school expenses) Fee-based ($25 for first report, $16 for additional reports)

15 CSS Profile (IM) vs. FAFSA (FM)
Includes home equity as an asset Does not allow losses to offset earned income Non Custodial Parent Profile (NCP) calculates a contribution from the non-custodial parent based on financial information submitted by that parent

16 Special Circumstances
Cannot report on FAFSA Send explanation to financial aid office at each college College will review special circumstances Request additional documentation Decisions are final and cannot be appealed to U.S. Department of Education

17 Special Circumstances
Change in employment status Medical expenses not covered by insurance Change in parent marital status Unusual dependent care expenses Student cannot obtain parent information

18 What is Financial Need? – Expected Family Contribution (EFC)
Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need

19 What is Cost of Attendance
Direct costs Indirect costs Direct and indirect costs combined into cost of attendance Vary widely from college to college

20 What is the Expected Family Contribution (EFC)?
Amount family can be expected to contribute for one year of educational expenses Stays the same regardless of college, although colleges may use a different analysis for their institutional funding Two components Parent contribution Student contribution Calculated using FAFSA data and a federal formula

21 What is the Expected Family Contribution (EFC)?
Considers parent and student income Considers parent and student assets Considers number of family members Considers number of children in college (excludes parents in college) Does NOT consider an individual family’s monthly financial commitments, such as mortgage, living expenses, consumer debt, etc.

22 Examples of Financial Need
Private College 4 Year Public Community College Cost of Attendance $43,000 $23,000 $16,000 EFC $5,000 Demonstrated Need $38,000 $18,000 $11,000

23 Types of Financial Aid Scholarships (Merit) Grants (Need) Loans

24 Scholarships Money that does not have to be paid back
Awarded on the basis of merit, skill, or a unique characteristic

25 Grants Money that does not have to be paid back
Usually awarded on the basis of financial need

26 Loans Money students and parents borrow to help pay educational expenses Repayment usually begins after education is finished Only borrow what is really needed Look at loans as an investment in the future

27 Student Loans Federal: Fixed interest, may be subsidized by federal government depending on need, no credit test for student Private, alternative: Offered by private lenders, interest/fees based on credit score, often require credit worthy co-signer

28 Parent Loans Federal PLUS: Parents can borrow for dependent student
Non custodial parent can borrow for dependent student Step parent can borrow if step-parent’s financial information is reported on FAFSA Parents can borrow up to cost of attendance, less any other financial aid

29 Employment Allows student to earn money to help pay educational costs
A paycheck Funds not available until student works and turns in a time sheet

30 Sources of Financial Aid
Federal government State (Oregon Student Assistance Commission) Colleges and universities Private sources, civic organizations, and churches

31 Federal Student Aid Programs
Federal Pell Grant Federal Supplemental Educational Opportunity Grant Federal Perkins Loan Federal Work-Study Direct Loans PLUS Loans

32 Oregon Oregon Opportunity Grant (FAFSA)
Oregon Student Assistance Commission (

33 Colleges and Universities
Need based grants Merit based scholarships Athletic Music Theatre Other special talent or interest

34 The Perfect World An ideal financial aid package would ensure that financial aid applicants are not deterred by cost of attendance at their first choice college

35 The Real World A student’s financial aid package is influenced positively or negatively by the availability of funds, annual award amounts and limits, as well as institutional priorities, such as: Enrollment goals Academic profile Diversity (economic, ethnic) Extracurricular activities (sports, music, theatre, etc.) Legacy

36 Award Notification A financial aid “package” sent to the student by the school(s) in paper or electronic format May require written acceptance May include loan information Requires careful scrutiny since content and format vary Financial Aid Shopping Sheet may help standardize format

37 Additional Considerations
“Need” is a federally defined concept and may not reflect a family’s actual financial situation Schools may not be able to meet all of a family’s federally defined “need” with financial aid Future indebtedness should be carefully considered when accepting loans Families should report to the school any special circumstances that will affect their ability to pay for college

38 Net Price Calculators Mandated by federal law
“Net Price” is the total Cost of Attendance minus all grant aid Some schools will also include information on loans and work

39 Net Price Calculators Accuracy of net price result is only as good as the accuracy of the information you enter Results will vary from college to college Use caution when providing personally identifiable information such as name, date of birth, or address Comparative net price information can be found at:

40 Resources for Additional Information
College web sites Federal Student Aid at

41 Scholarship Searches

42 What Can I Do Now? Apply for a PIN for student AND parent
Use Net Price Calculators on college web sites to get an estimate of your expected family contribution (EFC) and eligibility for financial aid OR visit Make a spreadsheet of all admission and financial aid application requirements and deadlines. Visit and start your OSAC scholarship application.

43 Questions?

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