Elaine Solinga Director of Financial Aid Services Connecticut College Financial Aid Services Telephone: Applying for Financial Aid Academic Year

Introduction What you will learn:  What financial aid is  Sources of financial aid  When and how to apply  How to pay the bill

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Determine Your Estimated Family Contribution at

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Funding a College Education - Who Are the Players? Family Federal & State Governments Outside agencies The college

How Much Financial Aid Will Be Offered?  Dependent on a family’s ability to pay.  Dependent on the funding policies established by the federal and state governments and the college.  Were the applications submitted by the deadline?

Definition of Financial Need Cost of Attendance Expected family contribution (EFC) Other financial assistance Financial need LESS EQUALS

Comparison of Need by Cost 4 Year Private4 Year Public2 Year Public Cost of Education$50,000$20,000$ 7,000 Expected Family Contribution (EFC)$10,000 Need$40,000$10,000 0

Meeting the Full Need and Gapping CollegeAB Cost of Education$50,000 Expected Family Contribution (EFC) $ 10,000 Need$40,000 Aid Awarded$40,000$30,000 Unmet Need 0 $10,000

Cost of Attendance  Tuition and Fees  Room and Board  Books and Supplies  Transportation  Study Away Expenses  Disability Expenses  Miscellaneous and Personal Expenses (purchase of a computer)

Family Contribution Components  Parent(s)’ 2008 income  Including untaxed income such as: child support received, annual contributions made to a retirement plan  Student’s 2008 income  Value of parent’s assets  Exclude principal value of retirement accounts  Include cash, college savings plans, other savings, trusts, bonds, money market, CD’s.  Value of student’s assets  Include cash, savings, trusts, bonds, money market, CD’s.  Number of household members  Number of dependents attending college at least half-time

Eligibility Assessed Using Federal Methodology  Based on information reported on the FAFSA (Free Application for Federal Student Aid, )  Formula determined by Congress that is used to determine eligibility for federal and most state funds  Home equity excluded  No information from the non-custodial parent  Custodial parent and stepparent incomes are included  Parent contribution divided by the # of dependents attending college at least half-time

Eligibility Assessed Using Institutional Methodology  Based on information provided on the CSS Profile or a custom institutional application  Used by schools to award their own funds  Home equity added in  Information from the non-custodial parent is required  Tax losses may be added back  Depreciation associated with a business or investment property may be added back  Parent contribution might not be divided equally: Lower contribution for dependents attending community college, proprietary school, and in-state public school, graduate school  Minimum student contribution

Remember!  Grants do not have to be repaid (unless a student withdraws during a term).  Student loans must be repaid  Federal Work Study provides income, which does not have to be repaid, from a part-time job

Sources of Need Based Aid - Federal  Federal Pell Grant – up to $4,731??  Federal SEOG Grant – up to $4,000  Federal AC Grant – up to $1,300  Federal National Smart Grant – up to $4,000  Federal TEACH Grant – up to $4,000  Federal Perkin Loans – up to $5,500  Federal Stafford Loan –  1 st year = up to $5,500 ($3,500 subsidized)  2 nd year = up to $6,500 ($4,500 subsidized)  3 rd -5 th year = up to $7,500 ($5,500 subsidized)  Federal Work Study - no limit but average range is $1,200 to $2,000

Sources of Need Based State Aid  State grants for CT residents  Connecticut Capitol Scholars,  $500 -$3,000  Deadline is February 15!!!  Connecticut Independent College Grant – award amount determined by College  CT Aid for Public College Student Grant – award amount determined by College  Can export Capitol Scholars Grant to these states: MA, RI, VT, NH, ME, PA-

Sources of Institutional Grants and Outside Resources  Institutional Grants – provided by the college either from tuition revenue and/or endowed funds  Outside Resources –  Employee Tuition Benefit  National Merit, Rotary, Garden Club, etc.  High school guidance office 

Student Eligibility Requirements  U.S. Citizen or eligible non-citizen  a permanent U.S. resident with a Permanent Resident Card (I-551);  a conditional permanent resident (I-551C);  the holder of an Arrival-Departure Record (I-94) from the Department of Homeland Security showing any one of the following designations: “Refugee,” “Asylum Granted,” “Parolee” (I-94 confirms paroled for a minimum of one year and status has not expired) or “Cuban-Haitian Entrant.”

Student Eligibility Requirements, con’t.  If male and age 18 must register for Selective Service;  Have a valid social security number;  Must be enrolled as a regular student in an eligible degree or certificate program;  Must have a high school diploma or an equivalent;  While enrolled in college, must make satisfactory academic progress.  Must have resolved any drug conviction issue.

Forms Required CollegeABC FAFSA XXX CSS Profile XX College Form XX Tax Returns X Non-Custodial Form XX Business Supplement XX Due Date 03/1502/1502/01

FAFSA on the Web’s Homepage

Free Application for Federal Student Aid, FAFSA  can’t file prior to 01/01/09  required by all schools  Used to determine eligibility for federal/state need based aid  Student and one parent should apply for a pin # now to sign the FAFSA electronically

CSS/Financial Aid Profile   Not required by all schools  $25 for the initial application and $16 for each additional college  Non-Custodial Parent’s Form = $25  Tool used to determine eligibility for need-based institutional grants.

Helpful Tips When Completing the FAFSA & Profile  Print out the FAFSA on the Web worksheet  Print out the Profile Pre-Application Worksheet  Have your 2008 federal tax return and W2 statements in front of you or prepare a draft 2008 federal tax return.  You can also use your 2007 federal tax return if income will be similar to  It is okay to estimate!

FAFSA Tips  Parents and students must provide their SSNs – if a parent does not have a SSN, enter zeros.  When reporting assets, report the value as of the date the FAFSA is completed minus the debt owed.  Investment property  Stocks, bonds, money market funds  CD’s, mutual funds, stock options, trusts  Coverdell savings accounts, college savings plans  Business/investment farm value

FAFSA Tips, con’t.  Assets not to report:  Value of your home  Retirement plans (pension funds, annuities, noneducation IRAS, Keogh plans)  Must also report as income:  Annual contributions to a retirement plan  Housing allowance paid to members of the military, clergy and others  Child support

Print out the FAFSA on the Web Worksheet

Filling Out the FAFSA

Student Information on the FAFSA

FAFSA Dependency Questions

Parent Marital Status

What is the Definition of a Parent?  If your parents are divorced or separated, answer the questions about the parent you lived with more during the past 12 months.  If you did not live with one parent more than the other, give answers about the parent who provided more financial support during the past 12 months.

What is the Definition of a Parent?  If your parent has remarried, your must include information about the stepparent.  If your parent is widowed or single, answer the questions about that parent.  The following people are not your parents unless they have adopted you: grandparents, foster parents, legal guardians, older brothers or sisters, and uncles or aunts.

What if parent information is not available?  Student has no contact with the parent(s) and does not know where they are (and the student has not been adopted by someone else); or  Student has left home due to an abusive situation. Must gather third party documentation to verify your living situation: attorney, court officer, social worker Submit that third party documentation to the college that you will most likely attend.

Parent Tax Return Information

FAFSA Parent Information

FAFSA Parent Tax Return Information

Family Size and # in College

Parent Assets

Student Information Similar to parent income and asset sections

What colleges should receive this data?

Student’s Electronic Signature

Confirmation Page

The Application Status Check

FAFSA Follow-Up

FAFSA Corrections  Types of corrections  Adding a school  Deleting a school  Changing estimated income to actual based on 2008 federal tax return and W2 information  Parent SSN and name do not match  Parent birthdate missing  If a correction to applicant data is needed, the correction may be made:  By the student at  By the school

FAFSA Corrections on the Web

CSS Profile Tips  In addition to the assets reported on the FAFSA, you will be required to report:  Value of your home, purchase price, purchase date and current debt  Value of your retirement accounts (but not for all schools).

Tuition & Fees $40,000 Room & Board 8,000 Books & Supplies 1,000Parent Contribution $ 2,250 Miscellaneous 500Student Contribution $ 1,750 Transportation 500Family Contribution $ 4,000 Total $50,000Need $46,000 Financial Aid Award (Cost less Resources) Federal Pell Grant $ 2,500 Federal Supplemental Educational Opp. Grant $ 2,500 Connecticut Independent College Grant $ 5,000 Connecticut Capitol Scholars Program $ 3,000 Federal Academic Competitiveness Grant $ 750 Federal Perkins Loan $ 1,000 Federal Stafford Loan $ 3,500 Federal Work Study $ 1,300 College Grant $26,450 Total Award $46,000 Sample Financial Aid Award – Full Need Met

College A B C Cost 50,000 Family Contribution 10,000 6,500 7,000 Need 40,00043,50043,000 Grants 34,20030,00035,000 Loans 4,500 0 Work 1,300 1,500 2,000 Total Aid 40,00036,00037,000 Unmet Need 0 7,500 6,000 True cost to family 10,00014,000 13,000 Comparison of Aid Awards

How Aid is Applied to the Bill  Tuition & Fees = $40,000  Room & Board = 8,000 Total Charges = $48,000 Less aid:  Grants$40,200  Loans$ 4,500 Total Aid Applied to the Bill $44,700 Balance Due $ 3,300 Usually paid in two installments: $1,650 August 1 $1,650 January 1 Federal Work Study is not applied to the bill.

What if my family contribution seems unreasonable? Compare aid awards from similar colleges. If the contribution is significantly different:  Ask how the contribution was determined  Is there a contribution expected from the non-custodial parent  Were losses reported on the tax return added back  What is the minimum student contribution  How were family members in college treated  Home equity  Request procedures for an “Appeal” or “Review”

How do I pay the bill?  Prepare monthly income/expense flow  Put surplus monthly income to work for you with a payment plan:    Use savings but keep enough to cover surprises!  Investigate home equity loan, or other private parent loans. Factors to consider: age, job market, other children to educate, income/debt ratio, credit rating

Federal PLUS Loans  Borrowers are parents of dependent undergraduate students  Annual loan limit: cost of attendance minus other aid  Fixed interest rate – 8.5%  Loan fees - up to 4%  Repayment begins 60 days after the loan is fully disbursed.  Can defer payments (interest will accrue) while student is enrolled at least half-time.

Aid Award in Subsequent Years  Loan amounts increase as the student advances to the next grade level  If parent income increases, the parent contribution will increase.  If student assets decrease, the student contribution will decrease  If the number of dependents enrolled in college changes, the parent contribution will change.  College institutional funding levels change from year to year

Questions to Ask  What forms must be submitted and by what date?  Does the school meet the student’s full demonstrated need?  What was the average loan balance for the last graduating class?  What happens to the aid offered if the student receives an outside scholarship?  How does an aid award change over 4 years?

Questions