January, 2012 Financial Aid Night

 Facts vs Myths  Deadlines  Parent’s Marital Status  Parent & Student Assets  Special Circumstances  Comparing Financial aid Packages

 My income is too high so I won’t apply.  The only way to know is to apply  My parents saved so I won’t get FA  Only a % of savings is considered  Millions of scholarships go unclaimed  These are “employer-reimbursement” plans  You have to be a minority to get FA  Federal FA is based on financial need, not race

 The form is too hard  FASFA keeps getting easier—help available online, phone, and in-person  Private colleges are too expensive  Sticker price does not take into account FA  My home is worth too much  Home value not considered for federal FA  Some institutions require the CollegeBoard Profile form that considers home equity

 Significant part of the college process  Negative consequences if missed  Application for financial aid Federal State Collegeboard Profile (some institutions)  Application for Scholarships Check deadlines in Junior year Apply in Senior year

 Federal  As of the date the application completed Single Widowed Divorced or Separated Parent the child lives with (or contributes 50% or more) Married or Remarried Parent the child lives with (or contributes 50% or more) Step-parent  CollegeBoard Profile  Non custodial parent may be considered

 Not: Home one lives in, life insurance, retirement plans, pension funds, annuities, IRAs, Keogh plans  Includes:  Other real estate  Trust funds  UGMA and UTMA accounts (owner)  Money market  Mutual funds

 Includes  CDs  Stock and stock options  Bonds  Other securities and commodities  Educational savings plans of all children Generally reported as a parent asset  Business 50.1% owner 100 or more full-time employees

 Parent Earnings to Consider Assets  Earnings over $50,000 and  Filed a complete 1040  Parent age 45 (single parent)  Protects up to $14,900  $120 for every $1,000  Parent age 45 (two parents)  Protects up to $42,900  $120 for every $1,000  Student  $200 per $1,000 of assets

 Student earnings up to $5,250 protected  Parent Income Reductions  State taxes  Social security taxes  Income protection allowance  % of the difference # in Family# in College 12 2 $16, $13, $20, $17, $24, $22, $29, $26, $34, $31,680.00

A need analysis formula established by Congress determines a student’s Expected Family Contribution; using information reported on the FAFSA. What?Why?Where? A comparative measure of how much a family can be expected to contribute over the course of an academic year Used to determine a student’s eligibility for most federal and state assistance Shown on the Student Aid Report (SAR) EFC Expected Family Contribution EFC Expected Family Contribution

 If the FAFSA does not reflect the current situation  High medical or dental expenses  Recent unemployment/Loss of untaxed income  Death of a parent  Documentation Required (contact college)  Written explanation  Unemployment decision  Letter from agency such as social security  Death certificate

Tuition & Fees Room & Board Transportation Books & Supplies Miscellaneous Living Expenses Cost of Attendance (COA) +

Cost of Attendance (COA) Cost of Attendance (COA) Expected Family Contribution (EFC) Expected Family Contribution (EFC) Financial Need Financial Need - = How much aid can a student receive?

College A COA (Cost of Attendance) EFC (Expected Family Contribution) Financial Need $3,000 $10,000 $7,000 $3,000 $20,000 $17, = = $3,000 $35,000 $32,000 - = College B College C

 Grants  Loans  Scholarships  More information available at:  

  EFC  Federal Financial Aid  College Costs   Illinois Monetary Award Grant (MAP  Federal Supplemental Educational Opportunity Grant(SEOG)  College Website  Net Price Calculator

Questions???