Understanding the Financial Aid Process

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How Do They Determine If I’m Eligible? COA – FC = NEED COA stands for Cost of Attendance (Includes tuition, books, room/board, etc.) FC stands for Family Contribution (Based on parents and students income, assets, ages, number of people in school) Need is how much aid the family is eligible for. COA – FC = NEED COA stands for Cost of Attendance (Includes tuition, books, room/board, etc.) FC stands for Family Contribution (Based on parents and students income, assets, ages, number of people in school) Need is how much aid the family is eligible for.

What can we do? Private Scholarships? * Guidance Department * * * College’s Scholarships Private Scholarships? * Guidance Department * * * College’s Scholarships

What should we know about our Family Contribution? Asset Protection Allowance What is considered an asset? Parental Assets vs. Student Assets Is debt considered? Is our home considered an asset - -Calculators -Federal Housing Index Asset Protection Allowance What is considered an asset? Parental Assets vs. Student Assets Is debt considered? Is our home considered an asset - -Calculators -Federal Housing Index

What should we know about our Family Contribution? Parent Income vs. Student Income Student Income allowance Parent Income vs. Student Income Student Income allowance

Borrowing Options Student Loans vs. Parental Loans Subsidized vs. Unsubsidized Loans PLUS Loans Understanding life of loan Student Loans vs. Parental Loans Subsidized vs. Unsubsidized Loans PLUS Loans Understanding life of loan

Financial Aid Myths vs. reality: Income too High Grades too Low Own a home Aid is only for special groups Myths vs. reality: Income too High Grades too Low Own a home Aid is only for special groups

Sources of Financial Aid FEDERAL GOVERNMENT Pell Grants SEOG Grants College Work/Study Subsidized and Unsubsidized Stafford Loans Perkins Loans PLUS and SLS Loans FEDERAL GOVERNMENT Pell Grants SEOG Grants College Work/Study Subsidized and Unsubsidized Stafford Loans Perkins Loans PLUS and SLS Loans

Sources of Financial Aid Federal Government State Government Special programs for in-state residents. Teachers, health professionals, minorities, etc. Contact Higher Education Student Assistance Authority for more information. Federal Government State Government Special programs for in-state residents. Teachers, health professionals, minorities, etc. Contact Higher Education Student Assistance Authority for more information.

Sources of Financial Aid Federal Government State Government Colleges and Universities Private universities have endowment funds, outside of federal and state funds. Create competition Give preferential packaging to students who are in top 25% of applicants. Federal Government State Government Colleges and Universities Private universities have endowment funds, outside of federal and state funds. Create competition Give preferential packaging to students who are in top 25% of applicants.

Sources of Financial Aid Federal Government State Government Colleges and Universities Private Sources Are private scholarship services worth it? Only 3% of all the aid. Don’t spend too much time looking for this small piece of the pie. Federal Government State Government Colleges and Universities Private Sources Are private scholarship services worth it? Only 3% of all the aid. Don’t spend too much time looking for this small piece of the pie.

How Do You Apply? The FAFSA (Free Application for Federal Student Aid) EVERYONE must fill out this form to get aid You cannot apply for Federal Loans if you do not fill one out The FAFSA (Free Application for Federal Student Aid) EVERYONE must fill out this form to get aid You cannot apply for Federal Loans if you do not fill one out

How Do You Apply For Aid? The FAFSA The CSS/Financial Aid Profile And Registration Form. Many Private schools want this form as well Registration and application can only be submitted online via the Internet. Asks about home equity, more detailed explanation of income, assets and expenses. Should be consistent with FAFSA The FAFSA The CSS/Financial Aid Profile And Registration Form. Many Private schools want this form as well Registration and application can only be submitted online via the Internet. Asks about home equity, more detailed explanation of income, assets and expenses. Should be consistent with FAFSA

FAFSA Estimate 2012 taxes, based on 2011 tax returns Federal Government interested in all aspects of tax return Details of all assets that day Audit/verification process similar to IRS Estimate 2012 taxes, based on 2011 tax returns Federal Government interested in all aspects of tax return Details of all assets that day Audit/verification process similar to IRS

CSS/PROFILE Most private schools require this form Much more invasive and complex Home equity treated as liquid asset Section Q $25.00 for 1 st school, $16.00 for each thereafter Most private schools require this form Much more invasive and complex Home equity treated as liquid asset Section Q $25.00 for 1 st school, $16.00 for each thereafter

How Do You Apply For Aid? The FAFSA. The CSS/Profile The school’s own institutional forms. Some schools require their own additional forms. They should be consistent with other forms Usually will ask similar questions to the other two forms. The FAFSA. The CSS/Profile The school’s own institutional forms. Some schools require their own additional forms. They should be consistent with other forms Usually will ask similar questions to the other two forms.

How Do You Apply For Aid? FAFSA CSS/PROFILE College Institutional Forms ADDITONAL FORMS: Business/Farm Supplement Divorced/Separated Situations? FAFSA CSS/PROFILE College Institutional Forms ADDITONAL FORMS: Business/Farm Supplement Divorced/Separated Situations?

Which Colleges Give You The Best Shot At Getting Money?

The Best Shot! Percentage of Need Met. Percentage of Gift Aid. Percentage of Self-Help Aid. Some schools meet most or all of needs in work/study or loans. (You do not want to find out in June that they meet most of your need in loans) Know before applying. Percentage of Need Met. Percentage of Gift Aid. Percentage of Self-Help Aid. Some schools meet most or all of needs in work/study or loans. (You do not want to find out in June that they meet most of your need in loans) Know before applying.

The Best Shot! Percentage of Need Met. Percentage of Gift Aid. Some schools meet most need in FREE money, while others give mostly loans. You want to know this BEFORE applying Percentage of Need Met. Percentage of Gift Aid. Some schools meet most need in FREE money, while others give mostly loans. You want to know this BEFORE applying

CASE STUDIES : Amherst College:UMASS-Amherst: Cost - $50,000Cost - $20,000EFC - $15,000 Need - $35,000Need - $5,000 School A:School B: Meets 100% NeedMeets 60% Need Gift Aid - 100%Gift Aid - 50% Self Help – 0%Self Help - 50% What you actually pay at each school: School A:School B: Total EFC = $15,000Original EFC = $15,000 Total Gift = $35,000+ Unmet Need = $2,000 Total Self = $0 Total EFC = $17,000 Total Gift = $1,500 Total Self = $1,500 Amherst College:UMASS-Amherst: Cost - $50,000Cost - $20,000EFC - $15,000 Need - $35,000Need - $5,000 School A:School B: Meets 100% NeedMeets 60% Need Gift Aid - 100%Gift Aid - 50% Self Help – 0%Self Help - 50% What you actually pay at each school: School A:School B: Total EFC = $15,000Original EFC = $15,000 Total Gift = $35,000+ Unmet Need = $2,000 Total Self = $0 Total EFC = $17,000 Total Gift = $1,500 Total Self = $1,500

How To Appeal Your Financial Aid Award

How To Negotiate For The Best Possible Package! Some schools mis-award Some schools under-award Some schools will try to compete with other schools Some schools mis-award Some schools under-award Some schools will try to compete with other schools

How To Appeal For The Best Possible Package Original Offer:Adjusted offer after negotiation: COA - $50,000COA - $50,000 FC - 8,000FC - 8,000 Need - $42,000 Aid Offered:New Package: University Grants - $15,000 University Grants - $30,000 College Work/Study - $2,000 Rensselaer Loans - $7,500Stafford Loan - $5,500 Perkins Loan - $4,000 Total Aid - $24,500 Total Aid - $41,500 Unmet Need - $17,500Unmet Need - $500 Original Offer:Adjusted offer after negotiation: COA - $50,000COA - $50,000 FC - 8,000FC - 8,000 Need - $42,000 Aid Offered:New Package: University Grants - $15,000 University Grants - $30,000 College Work/Study - $2,000 Rensselaer Loans - $7,500Stafford Loan - $5,500 Perkins Loan - $4,000 Total Aid - $24,500 Total Aid - $41,500 Unmet Need - $17,500Unmet Need - $500

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