Financial Aid: What You Need to Know New York State Higher Education Services Corporation Welcome. I am _______________ from _____________________. Today, I’d like to share some important information with you about financial aid for college.

What is Financial Aid? Financial aid helps pay the cost of attending college. Some financial aid is based on need. Some financial aid is awarded based on other criteria, such as grades. Financial aid helps pay the cost of college. Financial aid is awarded from several sources, which we will discuss, and can be based on financial need or other criteria, such as academic excellence.

Sources of Financial Aid Federal government New York State Colleges – Institutional Aid Private sources The Federal Government, New York State and colleges all offer financial aid. I will discuss the types of aid each entity offers in a few minutes. Also, there are numerous private sources of scholarship funding such as: Elks Club, religious and community organizations, and private companies

Types of Financial Aid Scholarships – free money Grants – free money Work Study Loans It’s important to understand the different types of financial aid and to seek grant and scholarship first. Scholarships and Grants provide “free money” – that means you do not have to pay any of the money back. Many scholarships and grants are awarded to you through the financial aid process and may be based solely on your financial situation or on your academic, athletic or other achievements. The Work-study program provides on and off campus jobs and the student is paid by the college based on the hours he/she works. Federal loans are available for students and parents to help with the cost of college. Loans should always be the last resort for you as they must be repaid, with interest. When you are applying for financial aid -- always go for the “free money” first! 2

Explore FAFSA.GOV The FAFSA can be accessed by going online to www.fafsa.gov. FAFSA stands for the FREE Application for Federal Student Aid. Don’t make the mistake of going to a site such as FAFSA.com where they charge you to file your application. Students who are applying to college for the 2013-2014 academic year should complete the FAFSA as soon as possible after January 1, when the 2013-2014 application will be available. Students beginning college in the 2013-2014 academic year should make sure to use the 2013-14 application not the 2012-13 FAFSA application. 8

Free Application for Federal Student Aid FAFSA Evaluates a family’s ability to pay for their educational costs Determines an Expected Family Contribution (EFC) Allows family to receive Federal Student Aid (FSA) programs Let’s first talk about need-based student financial aid. Need-based financial aid is awarded based on the ability of the family to pay college expenses as determined by a calculation developed by the federal government. Information about a family’s ability to pay is gathered from the Free Application for Federal Student Aid. The FAFSA is your first step in applying for all federal and state financial aid, the family’s Expected Family Contribution – EFC – is then determined by a federal formula. It is important to note that resources supporting need-based aid are limited at most colleges and, therefore, students should not expect aid to cover all of their need.

Expected Family Contribution EFC Calculated based on Federal Formula Amount the family can reasonably be expected to contribute Includes parents’ and student’s contributions combined Stays the same regardless of the college selected Let’s talk more about the expected family contribution – EFC. Again, it is the dollar amount a family is expected to be able to contribute toward the student’s college costs. It is calculated using the federal government’s formula along with the data the parents and the student provided on the FAFSA – which we will discuss in more detail shortly. Again, the family’s EFC always remains the same regardless of the college the student attends.

Sample EFC for Family #1 EFC = $20,830 Family lives in New York Married Parents, Both Age 52 Household Size of 4 with 1 child going to college 2012 Adjusted Gross Income = $120,000 Assets = $20,000 Student Income/Assets = 0 EFC = $20,830 Let’s talk more about the expected family contribution – EFC. Again, it is the dollar amount a family is expected to be able to contribute toward the student’s college costs. It is calculated using the federal government’s formula along with the data the parents and the student provided on the FAFSA – which we will discuss in more detail shortly. Again, the family’s EFC always remains the same regardless of the college the student attends.

Sample EFC for Family #2 EFC = $4,926 Family lives in New York Single Parent, Age 48 Household Size of 3 with 1 child going to college 2012 Adjusted Gross Income = $60,000 Assets = $2,000 Student Income/Assets = 0 EFC = $4,926 Let’s talk more about the expected family contribution – EFC. Again, it is the dollar amount a family is expected to be able to contribute toward the student’s college costs. It is calculated using the federal government’s formula along with the data the parents and the student provided on the FAFSA – which we will discuss in more detail shortly. Again, the family’s EFC always remains the same regardless of the college the student attends.

Sample EFC for Family #3 EFC = $0 Family lives in New York Married Parents, Age 45 Household Size of 5 with 2 children going to college 2012 Adjusted Gross Income = $30,000 Assets = $500 Student Income/Assets = 0 EFC = $0 Let’s talk more about the expected family contribution – EFC. Again, it is the dollar amount a family is expected to be able to contribute toward the student’s college costs. It is calculated using the federal government’s formula along with the data the parents and the student provided on the FAFSA – which we will discuss in more detail shortly. Again, the family’s EFC always remains the same regardless of the college the student attends.

FAFSA4caster: FAFSA.gov While you may be a year or so away from having to complete the FAFSA, there is a tool that can familiarize you with the form and help you understand your options for paying for college. It’s the FAFSA4caster. Like the FAFSA, it is available at www.fafsa.ed.gov.

Determining Financial Need Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need What is financial need? Financial need is determined by subtracting the Expected Family Contribution – EFC – from the Cost of Attendance – COA – at a particular college. While your EFC always remains the same, the cost of attendance varies from college to college. Therefore, your financial need is different from college to college.

Cost of Attendance (COA) Tuition and fees Room and board Books and supplies Transportation Miscellaneous personal expenses Loan fees Study abroad costs Dependent care expenses Expenses related to a disability The cost of attendance, determined by the college, includes all of the expenses a student will incur, including tuition, fees, books, etc. All students may not have all of these components in their cost of attendance. Tuition and fees, room and board (or allowance for commuters), books and supplies, transportation allowance, and personal expenses are always included in a student’s COA. Loan fees, study abroad costs, dependent care expenses, and expenses related to a disability are also variable based on the student’s situation. 6

Sample COA Comparison College Baruch College (CUNY)* Binghamton University (SUNY)+ New York (Private)° Tuition/Fees $ 5,910 $ 7,613 $ 43,704 Room/Board $ 1,685 (Commuter) $ 12,336 (On-Campus) $ 16,133 (On/Off-Campus) Books $ 1,248 $1,000 $1,070 Transportation $ 986 $250 n/a Personal $ 2,885 $750 Total $ 12,714 $ 21,949 $61,907 Source: http://www.baruch.cuny.edu/financialaid/student_budgets.htm Source: http://www2.binghamton.edu/financial-aid/pdf/educational-costs-ugrads.pdf Source: http://www.nyu.edu/content/dam/nyu/financialAid/documents/tuitiongeneral.pdf Note: All figures based on 2012-13 academic year information *Source: http://www.baruch.cuny.edu/financialaid/student_budgets.htm +Source: http://www2.binghamton.edu/financial-aid/pdf/educational-costs-ugrads.pdf °Source: http://www.nyu.edu/content/dam/nyu/financialAid/documents/tuitiongeneral.pdf

Financial Need for Family #1 College Baruch College (CUNY) Binghamton University (SUNY) New York (Private) COA $ 12,714 $ 21,949 $ 61,907 EFC $ 20,830 Financial Need $ 0 $ 1,119 $ 41,077 Here is a simple example of how financial need is determined. Each college determines its own COA, as we have discussed. The EFC remains the same for each college. Subtracting the EFC from the COA at each college determines your financial need for each college. In the above example, the most need is establish at College C and the least at College A. Source: http://www.baruch.cuny.edu/financialaid/student_budgets.htm

Financial Need for Family #2 College Baruch College (CUNY) Binghamton University (SUNY) New York (Private) COA $ 12,714 $ 21,949 $ 61,907 EFC $ 4,926 Financial Need $ 7,788 $ 17,023 $56,981 Here is a simple example of how financial need is determined. Each college determines its own COA, as we have discussed. The EFC remains the same for each college. Subtracting the EFC from the COA at each college determines your financial need for each college. In the above example, the most need is establish at College C and the least at College A. Source: http://www.baruch.cuny.edu/financialaid/student_budgets.htm

Financial Need for Family #3 College Baruch College (CUNY) Binghamton University (SUNY) New York (Private) COA $ 12,714 $ 21,949 $ 61,907 EFC $ 0 Financial Need Here is a simple example of how financial need is determined. Each college determines its own COA, as we have discussed. The EFC remains the same for each college. Subtracting the EFC from the COA at each college determines your financial need for each college. In the above example, the most need is establish at College C and the least at College A. Source: http://www.baruch.cuny.edu/financialaid/student_budgets.htm

Net Price Calculators The federal government now requires all colleges to provide a net price calculator to help students and families estimate their net costs at that college, factoring in numerous variables, such as COA, EFC, potential scholarships and need-based grants. These calculators can vary greatly from college to college, but in general they provide students and families with an early estimate of financial aid and a net price estimate based on the student and family's individual circumstances. Net price calculators are located on the colleges’ websites.

Questions to Consider… If we are a high-need family, will the college meet our full need? Can our financial need affect a college admission decision? What are the financial aid philosophies of our prospective colleges? What if we have special circumstances? Financial aid begins with grants. Grants are “free money” – you do not have to pay back any grant money. Grants come from sources such as the Federal Government , which administers the Pell Grant; state programs, such as the Tuition Assistance Program – TAP – administered by New York State; and grants from the school itself, called institutional grants. Institutional grants may be awarded based solely on your financial situation or on your academic, athletic or other achievements.

Financial Aid Programs

Federal Student Aid Programs Pell Grant Federal Supplemental Educational Opportunity Grant (FSEOG) Federal Work-Study Federal Loans Federal Perkins Loan Federal Direct Stafford Loans Federal PLUS Loan The federal government administers a variety of different programs. You may be eligible for some or all of these types of aid, based on your financial aid application - the FAFSA. The Pell Grant is a need-based entitlement program, which means that if you are eligible, you will receive the grant. It is usually awarded to students with a higher financial need. Currently, the TAP award is up to $5,550 per year. The Federal Supplemental Educational Opportunity Grant – FSEOG – is also for undergraduates with exceptional financial need. Students who receive Federal Pell Grants have priority in this program, which is awarded by a college's financial aid office based on information in the FAFSA. The Federal Work-Study Program provides part-time jobs, based on financial need, which are offered through the college. Federal aid includes loans. Several federal loans are available; these, of course, must be repaid. We’ll discuss them a little later. 21

Studentaid.ed.gov More information on grant and scholarship programs, including award amounts, eligibility information, and any application supplements, can be found on our website at HESC.ny.gov. 22

Federal Aid: Keep in mind… Student must be a U.S. citizen or eligible non-citizen Male students must register with the Selective Service System (sss.gov) Must be within a certain EFC range to be considered for Pell Grant, FSEOG Demonstrate need for other programs such as Work-study, Subsidized loans There are a few requirements to receive federal student aid. These include: Have a high school diploma or equivalent, such as a GED. Be enrolled or accepted for enrollment as a matriculated student working toward a degree or certificate in an eligible program. Be a U.S. citizen or eligible non-citizen.

NYS Financial Aid Programs Major Financial Aid Programs Tuition Assistance Program (TAP) Aid for Part-Time Study NYS Scholarships for Academic Excellence NYS Math & Science Teaching Incentive Program Veterans Tuition Award Now, we will discuss New York State aid. New York provides more than 18 programs, including: TAP – one of the nation’s largest grant programs. Aid for Part-Time Study – a need-based grant of up to $2,000 per year for part-time students enrolled in approved undergraduate studies. NYS Scholarships for Academic Excellence – awarded to outstanding graduates from registered New York State high schools; awards are based on student grades in certain Regents exams; $1,500 and $500 awards to top scholars at each high school. NYS Math & Science Teaching Incentive Scholarships – offered to encourage students to pursue careers as secondary math and science teachers in grades 7 through 12. Information about all of these and other programs, as well as applications for many, are available on HESC.ny.gov.

HESC.ny.gov More information on grant and scholarship programs, including award amounts, eligibility information, and any application supplements, can be found on our website at HESC.ny.gov. 25

NYS Aid: Keep in mind… Student must meet citizenship, selective service requirements of FAFSA Student and parents, if dependent, must be legal residents of New York State Can only be awarded at eligible NYS higher education institutions There are specific program requirements for the various NYS scholarships There are a few requirements to receive federal student aid. These include: Have a high school diploma or equivalent, such as a GED. Be enrolled or accepted for enrollment as a matriculated student working toward a degree or certificate in an eligible program. Be a U.S. citizen or eligible non-citizen.

Colleges: Institutional Aid Depends on funding at each college College determines eligibility criteria for need-based and non-need-based programs Academic, athletic, and other talent-based scholarships and grants May require an additional application Keep track of deadlines! Institutional aid is funding from the college. Colleges establish eligibility criteria for their need-based and non-need-based programs. College websites and financial aid offices can provide information on their criteria. For many colleges, the FAFSA results provide a basis for the need-based institutional aid available. Colleges have a limited amount of institutional grant and scholarship money, so it is important for students and families to complete the FAFSA early. Institutions may also award grants and scholarships based on academic, athletic, and other talents. Make sure the college is aware of any special skill or talent you have so you are considered for any of these special awards. Some colleges require the completion of additional application forms to be considered for institutional aid. Keep track of all the different deadlines and applications required at the schools to which you are applying. You do not want to miss any opportunity to receive free institutional money.

Visit College Websites Source: http://www.studentaffairs.columbia.edu/finaid/ You can view the College Board’s list of participating colleges online through the College Board’s website, profileonline.collegeboard.com. You can also apply or download a copy of their student guide shown here. The application is usually available in early October much earlier than the FAFSA. Because of its early availability, some colleges may require the Profile to be filed as part of the early action or early decision admission process. This application is in addition to the FAFSA which needs to be completed as well to be considered for federal and state aid. Source: http://www.studentaffairs.columbia.edu/finaid/

Explore the CSS Profile http://profileonline.collegeboard.com You can view the College Board’s list of participating colleges online through the College Board’s website, profileonline.collegeboard.com. You can also apply or download a copy of their student guide shown here. The application is usually available in early October much earlier than the FAFSA. Because of its early availability, some colleges may require the Profile to be filed as part of the early action or early decision admission process. This application is in addition to the FAFSA which needs to be completed as well to be considered for federal and state aid.

Private Scholarships Billions of dollars in private funds available Charitable foundations, businesses, religious institutions, wealthy donors, and minority organizations All have their own individual applications and requirements

Websites to Start Searching There are plenty of private scholarships available but you need to do your homework. There are many free scholarship search sites such as collegeboard.com and fastweb.com. There are also more specific scholarship sites listed above. Remember, your school counselor is also an excellent source for scholarship information, especially for local scholarships available in your area!

Fastweb.com There are plenty of private scholarships available but you need to do your homework. There are many free scholarship search sites such as collegeboard.com and fastweb.com. There are also more specific scholarship sites listed above. Remember, your school counselor is also an excellent source for scholarship information, especially for local scholarships available in your area!

Scholarship Myths Searching and applying for scholarships is only the student’s responsibility. You have to have financial need to get a scholarship. Students have to have excellent grades, SAT/ACT scores to get a scholarship. Scholarship searching is done during senior year of high school. “It’s only $500, so why bother?” Some tips: • Check with your college financial aid office for scholarships. Take time to conduct research and prepare applications carefully. Some scholarships are for four years, others require a yearly application; apply yearly, if needed. For resources on scholarships: Visit the local library. Ask local businesses and organizations. Check with parents’ employers and unions.

CAUTION! Avoid paying a fee to file the FAFSA or a scholarship application! Avoid financial aid “consultants” and for-profit websites Submitting the FAFSA and NYS TAP application is FREE FREE help is available if you need assistance in completing the applications And just a reminder, the first “F” in FAFSA stands for FREE! You should not have to pay someone to complete your FAFSA and TAP applications. College financial aid offices as well as many school counselors can assist you with your FAFSA questions. Additionally , financial aid professionals volunteer to support a large number of free FAFSA assistance workshops, such as New York’s College Goal Sunday program and HESC’s Start Here Get There month-long FAFSA completion assistance campaign across the state. We will provide detail on these workshops later in this presentation.

Free FAFSA Help @ StartHereGetThere.org In addition to the tools always available on the HESC website, the microsite for Financial Aid Awareness Month, at StartHereGetThere.org, is featured from mid December through March each year. The website provides targeted information for students and families preparing for college and applying for financial aid with tutorials, videos, and links to applications.

Thank You! Thank you for your attention. Please let me know if you have any questions.