Presentation on theme: "Financing Education in Challenging times Operation Inform 2011."— Presentation transcript:
Financing Education in Challenging times Operation Inform 2011
TOPIC 1.How much does college cost? 2.What’s new in financial aid 3.How is financial need determined? 4.Sources and types of financial aid 5.Reviewing award letters
Operation Inform 2011 Net-Price Calculator By October 2011, all colleges must post net- price calculators on their Web sites The aim of these calculators is to pinpoint the net price that a family will pay after receiving any scholarships or need-based grants
Operation Inform 2011 How Much Does College Cost? Cost of Attendance (COA) Includes: direct costs Indirect cost Colleges combine direct costs and indirect costs to make the cost of attendance (student budget).
Operation Inform 2011 How Much Does College Cost? Cost of Attendance (COA) Includes: 1.Tuition and fees 2.Room and board 3.Books and supplies 4.Transportation 5.Miscellaneous personal expenses
Operation Inform 2011 How Much Does College Cost? 4 Year PRIVATE On-Campus Student ex. Tuition and fees:$29,010 Room and board: 10,944 Books and supplies: 1,172 Transportation: 737 Personal expenses: 1,353 Total Budget: $43,216 Source: College Board: Trends in College Pricing 2010 Middle States Averages.
Operation Inform 2011 How Much Does SUNY Cost Baccalaureate Degree Program ? NY State Resident Living On-Campus Tuition and fees: $6,600 Room and board: 10,820 Books and supplies: 1,260 Transportation: 1,010 Personal expenses: 1,430 Total Budget: $21,120 Source: SUNY Office of Student Financial Aid, System Administration
Operation Inform 2011 How Much Does SUNY Cost Associate Degree Program Cost at ? In District Commuting – at Community College Tuition and fees: $4,190 Room and board: 3,400 Books and supplies: 1,270 Transportation: 1,670 Personal expenses: 1,180 Total Budget: $11,710 Source: SUNY Office of Student Financial Aid, System Administration
Operation Inform 2011 How Much Does SUNY Cost? The Bill: Typical First Semester Direct Charges New York State resident baccalaureate degree student living on campus for Tuition $2,635 ($5,270) Fees 665 Room & Board 5,410 Total Direct Charges $8,710
Operation Inform 2011 How is Financial Need Determined? Estimated Family Contribution (EFC) is determined from: Parents income and assets Primary home value excluded Student’s income and assets Size of family Age of parents Number of children in college COA minus EFC = Need
Operation Inform 2011 FAFSA Information Student Dependency Status Parent Information Independent Student Information Colleges Receive Information NEW IRS Date Retrieval for FAFSA
Operation Inform 2011
Federal Updates Data Element Revisions: Students will be asked to provide the name of their high school Students will be asked about their preference for participating in a work-study program Enrollment status question deleted TEACH Grant question deleted
Operation Inform 2011 Federal Updates to Major Aid Programs No More ACG or Smart Grant All Student loans are William D. Ford Direct Student Loans ( No more Stafford) Parents must file FAFSA to be eligible for PLUS American Opportunity Credits - new tax credit worth up to $2,500
Operation Inform 2011 Federal Updates to Major Aid Programs PELL Grant Maximum annual award $5,550 (always pending legislation and appropriation)
Operation Inform 2011 Major Aid Programs William D. Ford Direct Loans Subsidized 3.4% ( ) 6.8% ( ) Based on need Federal government pays interest while student is in school $3,500 for Freshman Unsubsidized 6.8 % fixed interest Not based on need Student is responsible for interest while in school Max loan: cost of education minus financial aid $5,500 for Freshman
Operation Inform 2011 Major Aid Programs Perkins Loan Need-based Low interest rate (5%) Student pays no interest while in school Max $5,500 per year May be forgiven
Operation Inform 2011 Major Aid Programs TEACH Grant Up to $4,000 per year For students who intend to teach: - a high-need field - that serves students of low-income Four year service contract More information:
Operation Inform 2011 Major Aid Programs PLUS For parents of dependent students Borrow up to entire cost of college less financial aid No adverse credit (parent must pass credit check) Interest Rate 7.9%
Operation Inform 2011 Tools For Families FAFSA4caster Instead of waiting, you can use the FAFSA4caster NOW to receive an early estimate of your eligibility for federal student aid.
Operation Inform 2011 FAFSA4caster Provides general information about federal student aid Estimates federal student aid eligibility Your estimate will be shown in the College Cost worksheet You can also provide estimated amounts of other student aid and savings
Operation Inform 2011 Major Aid Programs TAP Tuition Assistance Program Maximum award $5000 Student must be NY state resident attending college in NY state Most students receive up to 8 semesters of TAP Must maintain academic progress
Operation Inform 2011 Tools For Scholarships Private scholarship search At your college of interest Free Internet scholarship searches Local library resources Local businesses and civic organizations (including professional associations) related to student's field of interest Parent’s employer/union
Operation Inform 2011 Reviewing Award Letters Comparing Financial Aid Award Packages SUNY COA$21,120 SUNY SFA Package - 6,100* Net cost to family $15,020 Non-SUNY COA$43,216 Non-SUNY SFA Package- 16,000* Net cost to family$27,216 Focus on Net Cost vs. SFA Package Focus on Type of Aid & Total Amount * Student loans are not included Source: College Board: Trends in College Pricing 2010
Operation Inform 2011 Reviewing Award Letters Questions you should ask: What is the source of aid? What is the out-of-pocket expense? Will the scholarship be renewed? Is there a GPA requirement? What happens if the requirement is not met?