3 Molloy College Fast Facts Undergraduate- 3200 (est) Majors includeNursing, Education and more than 50 othersLocated in Rockville CentreRes Halls opened in 2011.Student-athletes compete in East Coast Conference (D2)Molloy campus life includes more than 40 student clubs
4 Equal OpportunityIn our democracy every young person should have an equal opportunity to obtain a higher education, regardless of his station in life or financial means. – President John F. Kennedy
5 Warren Buffett“Investing in yourself is the best thing you can do”
10 SO YOU THINK YOU DON’T QUALIFY ?..THINK AGAIN! Avg Financial aid package for incoming freshman$18,018 (includes loans, work study and grants)$13,723 (includes grant and scholarship money only)
11 Free Application for Federal Student Aid (FAFSA) Family’s personal and financial information required to perform need analysis is collected on FAFSAPaper versions of FAFSA“Regular” FAFSARenewal FAFSAElectronic version of FAFSAFAFSA can be processed after Jan 1st
12 Free Application for Federal Student Aid (FAFSA) U.S. Department of Education form that collects demographic and financial informationFederal aid eligibility determined by FAFSAMust be filed annuallySome schools may use the results to award their own institutional aidFile on-line at .Available in English and Spanish
13 Federal Student Aid Personal Identification Number (FSA PIN) Website:Sign FAFSA electronicallyNot required, but speeds processingComing Spring an update to the Pin..Stay tuned!
14 New for : FSA IDIn April 2015, students and parents who have a FAFSA PIN or are applying for the first time will be prompted to create a new FSA IDSelf-created username and passwordTransitioning away from using Social Security Numbers as a sign-on credentialPINs will be needed to create the FSA ID for current users
15 FAFSA on the Web Apply Reapply English and Spanish options ApplyReapplyEnglish and Spanish optionsAccess PIN Web siteCheck status of applicationView SAR informationMake corrections
17 FAFSA on the Web Good reasons to file electronically: Built-in edits to prevent costly errorsSkip-logic allows applicant to skip unnecessary questionsOption to utilize tax information directly downloaded thru IRS Data Retrieval tool.Corrections to FAFSA application is quicker.Instant “help” online for common questions available.
18 FAFSA continued…For the academic year, the FAFSA may be filed beginning January 1, 2015High School seniors would fill out FAFSA anytime after January 1, 2015.You may list up to 10 colleges to receive the results of your FAFSA
19 School Deadlines Don’t Drop the Ball Check with colleges directly!..March 1?April 1?..
20 Key elements to FA eligibility Primary incomeSavings (both)Investments (both)Real estate (Not your Home)Household size (who lives with you )..if you are lucky like me to have your in-laws living with you..that could help FA eligibility.
21 Saving Vehicles, what impact do they have to Fin Aid? Child assets are assessed at 20%Parent assets are assessed at 5.64%
22 Trust FundsIf the trust fund is in the name of the student, spouse, parent, then it should be reported as that person’s asset on the FAFSAIf the trustee has the authority to change the beneficiary, then the trust may be reported as an asset of the trusteeIf a trust is dedicated to paying for the beneficiary's education, it should be reported as an asset of the beneficiary.
23 Trust funds (con’t)If a trust does not pay its own taxes, follow the money. The individual who pays taxes on the trust's income is often the owner of the trust.Owned by more than one person…report the amount owned.
24 Parent’s assets Parent’s income reported Parent’s assets reported (with exception of home value, and retirements savings)Generally speaking, 1st 45K of parents savings and investment value does not count in formulaAssessed at 5.64% (after the 1st 45K )Business value (less than 100 employees..business value does not count
25 How does Child support factor into FAFSA?? Child support paid is included on the FAFSAIf parent or step parent pays child support , info is included on FAFSAChild support rec’d (all children in household) is included.
26 Pension income?.Pension income IS included on the FAFSA..if it’s untaxed it’s listed on a special section of the form.
27 Some schools may require CSS/Profile Form Check if College requires formhttps://profileonline.collegeboard.comProfile form digs deeper in family’s situationForm costs $ to file $25 for 1st college…$16 for every additional college
28 CSS Profile Differences Non-custodial incomeHome value (but usually capped at 2-3 times household income529 plans owned by someone besides parent or stuent..(i.e Aunt?..Uncle?..Grandparent?
29 What is the Expected Family Contribution (EFC)? Amount family can reasonably be expected to contributeStays the same regardless of collegeTwo componentsParent contributionStudent contributionCalculated using FAFSA data and a federal formula
30 + Miscellaneous Expenses How Financial Need is Determined Cost of Attendance - Expected Family Contribution = Financial NeedTuition and FeesBooks and SuppliesRoom and BoardTransportation+ Miscellaneous Expenses= Cost of AttendanceExpectedFamily ContributionParent’s Contribution from IncomeParent’s Contribution from AssetsStudent’s Contribution from IncomeStudent’s Contribution from Assets
31 Sample award package ABC university (private) COA= 50,000 EFC = 25,000 FN= 25,000DEF university (public)COA = 25,000 EFC = 25,000FN=You could be eligible for need based aid at one college but not another
32 Sample EFC’s Family of 4.. Family of 5 Mom and Dad have combined incomes of$150K60K in savingsOwn their homeEFC = $33KMom and Dad have combined income of $200KNo savingsOwn their homeEFC 47K
33 Sample EFC’s Family of 3 Family of 6 Single parent home Parent earns 70KNo savingsRentsEFC = 9KOne income family = 65K15K in savingsOwns homeEFC = 4K
34 Sample packages Duke university SUNY Albany Avg costs- 64,000 Avg aid package= 40,561Avg grant = 35,951Net Price= 28,049Avg costs- 23,000Avg aid package= 9,960Avg grant = 7,190Net Price= 15,810
35 Principles of Need Analysis To the extent they are able, parents have primary responsibility to pay for their dependent children’s educationStudents also have a responsibility to contribute to their educational costsFamilies should be evaluated in their present financial condition*****A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect its ability to pay
36 Special Circumstances Change in employment statusMedical expenses not covered by insuranceUnusual dependent care expensesNatural Disaster
37 Grounds for an appeal Did an inheritance inflate last year's income? Any one time occurrence is worth letting the college know about..(Had to pull out retirement money to pay for a home improvement…so income is inflated)
38 Affected by “Sandy”?Even though home value is not factored into the FAFSA formula, there could be some things adjusted based on property damage (out of pocket expenses, etc) Write a letter of explanation to college
39 IRS-FSA ConceptFederal Student Aid (FSA) and the Internal Revenue Service (IRS) have developed a collaborative solution to simplifies FAFSA completion.Tax filer Retrieves Their Own DataNo ConsentVoluntaryWill allow some applicants that use FAFSA on the Web to retrieve their income tax data from the IRS.IRS data can be automatically transferred to FOTW.The IRS Data Share Project takes a different approach to doing a match, and it’s this approach that has enabled us to make the significant progress we have made over the past few months.Through collaboration between ED and the IRS – at the highest levels – we’ve been able to develop an IRS solution that will make completing the most difficult part of the FAFSA – which is providing income information – much simpler for many students and parents.The new process will allow students using FOTW (and their parents if they’re dependent) to request and receive their income tax data directly from the IRS while they’re in their FOTW session.Once tax data have been received by the taxpayer from the IRS, he or she will be given the option to have that IRS data automatically transferred into his or her FOTW application.So, the big difference between the process we’re working on now and past projects is that taxpayer data will be presented to the taxpayer directly, not to ED, and the taxpayer can choose what to do with that data – in other words, the taxpayer gets to decide whether to share the information with ED by transferring it into FOTW -- or not.Past solutions have relied on a more mandatory approach, and I think it’s for that reason that we’ve run into obstacles in the past.So, putting the taxpayer in the driver’s seat – so to speak – has really helped to get us beyond some of the stickier policy and legal issues, and opened the door for making some real progress here.Now, the data share process we’ll talk about today is still a work in progress.We’ve accomplished an enormous amount of work in a very short amount of time, but there are some details that still need to be worked out. But these details are relatively small at this point, so what you see today should be very close to the final process we’ll be implementing.And, as you’ll see, the process only involves two IRS screens and should be quite simple for applicants and their parents to get through.
40 529 College Savings Plan www.nysaves.org www.savingforcollege.com A 529 college savings program is a tax-advantaged savings plan that enables you to invest for college free of federal and, sometimes, state income taxes. You can use this investment to pay for tuition, certain room-and-board expenses, books, supplies, and other qualified higher-education expenses.
41 Saving for college gives you more options Bottom line: If you save for your child’s college expenses you reap the benefit of more attendance options for your child and your child may borrow less while attending college .UG students who graduate with less debt have greater employment options and more opportunities for future education
42 Independent Student Definition At least 24 years old by December 31 of award year covered by FAFSA;Graduate or professional student;Married;Has legal dependents other than a spouse;Orphan or ward/dependent of the court;Veteran of U.S. Armed Forces
43 Who’s data on the FAFSA Scenario 1 Student Mom Dad Scenario 2 Student lives with Mom ( Mom is divorced from Birth Father).Student and Mom only.
44 Who’s data on FAFSA? Scenario 3 Student lives with Dad (dad is divorced from birth Mom)Student and DadScenario 4Student lives with Mom and Mom is remarriedStudent, Mom and StepDad..
45 What should I expect after I file?? Student files FAFSAStudent and FA office rec’d dataFA office reviews dataFA office sends student “award” letterStudent needs to respond to accept or declineIn certain instances, colleges may require financial documents to process aid
46 Net Price CalculatorCOLLEGES ARE NOW REQUIRED TO HAVE ESTIMATING TOOLS ON THEIR WEBSITE ALLOWING FAMILES TO GET A REASONABILE ESTIMATE ON NET COSTS.
48 What Makes Up a Package Federal Grants State Grants Intuitional Grants and ScholarshipsFederal LoansFederal Work-StudyOutside ScholarshipsPrivate/Alternative Loans
49 Types of Scholarships Consider all types of scholarships: Academic meritAthletic abilityField of studyEthnic backgroundReligious affiliationSpecial interestsConsider all types of scholarships:Acdemic meritAthletic abilityField of studyEthnic backgroundReligious affiliationSpecial interests
50 Private Sources Foundations, businesses, charitable organizations Deadlines and application procedures vary widelyBegin researching private aid sources earlyThe Internet to name one
51 Civic Organizations and Churches Research what is available in communityTo what organizations and churches do student and family belong?Application process usually occurs during spring of senior yearSmall scholarships add up!
52 EmployersCompanies may have scholarships available to the children of employeesCompanies may have educational benefits for their employees
53 Pell Grants Pell is an entitlement Based on need Max award could be upwards of $5,000Does not run outDeadline June 30th or last day of enrollment
54 SEOG Federal Grant Based on need Up to 4,000 per year Limited Fund (it can run out)
55 Institutional Grants Academic Based Scholarships Talent Based Scholarships (Athletic, Music, etc)Need Based Grants/Scholarship
56 TAP State Grant Based on net taxable income (less than 80k) Full time/Part-Time enrollment statusStudent can receive TAP for 8 semesters then he or she could be considered TAPPed Out (you like that one...I just made it up..)May 1st deadline (APPLY VIA LINK AFTER FAFSA OR DIRECT AT
57 William D Ford Direct loans Unsubsidized4.66% fixed interestNot based on needStudent is responsible for interest while in school$5,500 for FreshmanSubsidized4.66% fixed ( )Based on needFederal government pays interest while student is in school$3,500 for Freshman
58 Direct Plus Loan for Parents For parents of dependent studentsBorrow up to entire cost of college less financial aidNo adverse credit (parent must pass credit check)if you are denied…student can borrow additional unsb direct loan for $4KInterest Rate 6.41%
59 This is my final slide!..YES! Encourage parent and students to FILE EARLY!FAFSA can be filed before taxes are completed. Estimate!Advise parents and students to AVOID using websites, consultants that charge money to apply for financial aid. Questions?