Presentation on theme: "Presenter name Presenter title, organization Counting the Costs An Introduction to Financial Aid for Private and Independent Schools Event/Location Date."— Presentation transcript:
Presenter name Presenter title, organization Counting the Costs An Introduction to Financial Aid for Private and Independent Schools Event/Location Date
2 The “Five Ws” of Financial Aid Who is responsible for paying for my child’s education? What is “financial aid”? Why should I apply for financial aid? When should I start planning? Where should I go for more help?
3 Who is responsible for paying for a child’s education?
5 Grants Financial aid in the form of a grant from a school is not a loan and does not need to be repaid. Need-based School-financed Financial assistance comes from each school’s budget, not from SSS by NAIS or from the government. Other types of help that may be available Loans, monthly payment plans Scholarships
6 Tuition and Financial Aid Landscape Source: NAIS 2012-2013 Facts at a Glance for all member schools, National Association of Independent Schools
7 When should I start planning to apply for financial aid for Academic Year 2014-15?
8 Make a schedule to meet school deadlines. Most deadlines fall between December – April. Missed deadlines = missed dollars. Make a budget: Add all sources of income (wages, tips, child support, etc.). Subtract all expenses. Improve the bottom-line: Decrease expenses / Increase discretionary income Research full cost of attendance: tuition+ fees+ books+ trips + ? Do your tax returns early. When should I start planning for 2014-15?
9 Check your school’s financial aid AND admissions deadline – they may be different. Missing deadlines could result in reduced aid or NO aid. DO NOT wait until you have received an admission decision to begin the financial aid process. Plan ahead: Begin collecting documents early. Set personal deadline 2-3 weeks earlier than schools’ deadlines. Allow time to ask questions When should I submit my information?
11 Contact the school(s) you are considering for the 2014-15 year. Request financial aid information when you first contact the school for admission information. Collect all the documents you need: Parents’ Financial Statement (PFS) or other aid application School-specific forms Supplementary questionnaires Tax-related documents 1040, W-2s, any additional tax schedules/forms Bank Statements Bills/receipts (i.e. unexpected household, medical expenses ) How do I apply for financial aid?
12 How do I apply for financial aid? Submit and pay for the Parents’ Financial Statement (PFS) Online only PFS Online: sss.nais.org/parents - $41 nonrefundable fee (Pay by credit card, direct debit/ach, PayPal)
13 SSS Has Gone GREEN Online PFS Only Fewer than 1% of PFS applications were paper. Paper applications dropped by 62% over the prior year. Fewer than 30% of SSS schools received any paper PFSs in 2013 (representing a 40% drop from 2012). Fewer than 1% of SSS schools received more than 10 paper PFSs in 2013.
14 PFS Online Support Use the PFS workbook that you can use to gather your answers prior to getting online so your time in front of the computer is best used. View helpful webinars to learn how to navigate and complete the online application correctly. Phone and email support are available if you get stuck along the way.
16 How is my financial aid eligibility calculated? Income (money coming in) minus Expenses (money going out) Assets (what you own) minus Liabilities (what you owe) Family members who live in the house (who you support) SSS takes all items into consideration to determine your Discretionary Income. SSS will recommend to the school what portion of your discretionary income is available to pay for education. Each school will verify the information you presented, then calculate its ability to meet your remaining need.
17 Frequently Asked Questions Will my retirement accounts be included? How does my home equity factor in? How do I know if I’m even going to qualify? How long does the application take to complete? What if I don’t have my taxes done in time to submit them? What if I’m divorced? How do 529 Plans work?
18 How is my financial aid award calculated? Tuition/Total Cost of Attendance -Family Contribution (as calculated by SSS) Total Financial Need Financial aid offer from school
19 Financial Need Calculation Example 1: School Can Meet Full Need $17,000 Cost of Attendance -$5,000 Family Contribution (as calculated by SSS) $12,000 Financial Need If school meets 100% of need $12,000 Financial Aid Grant
20 Financial Need Calculation Example 2: School Cannot Meet Full Need $17,000 Cost of Attendance -$5,000 Family Contribution (as calculated by SSS) $12,000 Financial Need If school meets 75% of need $9,000 Financial Aid Grant
21 Comparing Financial Aid Offers School 1: Full Need $15,000Cost of Attendance - $ 3,000 Family Contribution $12,000Financial Need $15,000Cost of Attendance - $12,000Financial Aid Award $ 3,000Bottom Line School Meets 100% of Need School 2: Partial Need $10,000Cost of Attendance - $ 3,000 Family Contribution $ 7,000Financial Need $10,000Cost of Attendance - $ 3,500Financial Aid Award $ 6,500Bottom Line School Meets 50% of Need
22 Visit sss.nais.org/parents for more resources
24 What else do I need to know? Read your school’s financial aid instructions. On the PFS, fill in all “critical” questions. On the PFS, give estimates and use zeros when appropriate (do not leave items blank). Pay for PFS Online by credit card, direct debit, PayPal, or Fee Waiver. Keep copies of all forms and documents.
37 What can you afford to contribute? Be realistic.
38 Something not captured on PFS? Tell your story.
39 Your PFS does not have to be completed in one sitting. You can save it and finish later where you left off. Just click “Complete Your PFS.”
40 After submitting your PFS, you can mail or upload any required documents you’ve been instructed to send to SSS.
41 Need more information? Contact your school’s admissions or financial aid professional Call or email the PFS Application Helpline (800) 344-8328, firstname.lastname@example.org Visit the SSS website, sss.nais.org/parents, for guidance to help you understand financial aid and complete your PFS.