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Financing Education in Challenging times Operation Inform 2011.

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Presentation on theme: "Financing Education in Challenging times Operation Inform 2011."— Presentation transcript:

1 Financing Education in Challenging times Operation Inform 2011

2 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

3 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

4 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).

5 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

6 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.

7 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

8 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

9 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

10 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

11 Operation Inform 2011 FAFSA Information  Student Dependency Status  Parent Information  Independent Student Information  Colleges Receive Information NEW IRS Date Retrieval for FAFSA

12 Operation Inform 2011

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15 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

16 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

17 Operation Inform 2011 Federal Updates to Major Aid Programs  PELL Grant Maximum annual award $5,550 (always pending legislation and appropriation)

18 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

19 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

20 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:

21 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%

22 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.

23 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

24 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

25 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

26 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

27 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?

28 Operation Inform 2011 Discussion?


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