1. Financial Aid 101 The FAFSA and CSS Profile
Financial Aid The FAFSA and CSS Profile
Gear Up
Lawrence High School

2. Multilingual Advisors
What we do
Free Services
Walk-in only, no appointment necessary!
One-on-one Advising
Assistance completing applications and forms
Resources on education, financial aid and loan counseling
Multilingual Advisors
English, Spanish, Chinese, French, and Haitian-Creole
@ASAPlan4College
ASA College Planning Center

3. Overview of Financial Aid The Application Process
How Financial Aid Decisions Are Made
Paying for College
Free Resources
Agenda

4. Who, What, Where

5. Grants and scholarships (gift aid)
What is Financial Aid?
Most commonly known types of aid:
Grants and scholarships (gift aid)
Work-Study
Student Loans

6. Financial Aid Breakdown
Undergraduate Student Aid ($183.9 Billion)

7. Who Gives Out Financial Aid?
Federal
Grants, work-study, loans, tax incentives
State (Ex: Massachusetts)
Grants, scholarships, tuition waivers, loans
osfa.mass.edu
College/University (institutional aid)
Grants, scholarships, loans
Other Agencies
Scholarships, loans

8. Awarded in recognition of student achievements
Types of Aid - Merit
Awarded in recognition of student achievements
May or may not
be renewable
Not offered at
every school

9. Types of Aid - Need-based
Based on family’s financial eligibility (“need”)
Includes grants, loans, and work-study
Most financial aid is need-based
Must be making satisfactory
academic progress

10. The Applications

11. Must be completed every year!
The FAFSA
Free Application for Federal Student Aid (FAFSA)
Required by all colleges for federal and state aid
Available October 1, 2016: FAFSA.gov
Log in with an FSA ID: FSAID.ed.gov
IRS Data Retrieval Tool – available Immediately!
Must be completed every year!

12. Academic Year in College Tax Information (Year)
Early FAFSA
Students can report tax information from two years ago.
Academic Year in College
FAFSA Form (Year)
Tax Information (Year)
FAFSA Available…
September 2015-May 2016
FAFSA
2014
January 1, 2015
September 2016-May 2017
FAFSA
2015
January 1, 2016
September 2017-May 2018
FAFSA
October 1, 2016
September 2018-May 2019
FAFSA
2016
October 1, 2017

13. Overall Changes and Benefits
File the FAFSA form EARLY & ONCE.
More easily submit a completed FAFSA on-time.
The IRS Data Retrieval Tool (DRT) is available.
Receive notification of financial aid packages earlier.*

14. Parents: Biological or Adoptive parents ONLY
Who's on the FAFSA?
Parents:
Biological or Adoptive parents ONLY
Married, including same-sex parents
All parents who live together, married or not
Divorced/Separated: custodial parent (& current spouse)
Legal guardians, grandparents, relatives, etc. NEVER put their income information on the FAFSA

15. Who's on the FAFSA?

16. The colleges where you’re applying Parent and student data
What's on the FAFSA?
The colleges where you’re applying
Parent and student data
Income (2015 income for the FAFSA)
Assets:
Include: savings, checking, investments, other property
Do not include: primary home, retirement, life insurance, small family business
# in household, # of children in college

17. 1. Colleges & state receive data electronically
After you apply
1. Colleges & state receive data electronically
2. You will receive (electronically or by mail):
Student Aid Report (SAR)
CSS/Financial Aid PROFILE® Acknowledgement
Contact the Financial Aid Office with any special circumstances
Colleges may request Verification documents. Your financial aid application may be incomplete until you submit these documents.
Colleges review applications and determine your financial aid

18. What is the CSS / Financial Aid Profile?
College Scholarship Service Profile
College Board’s online financial aid application IN ADDITION TO FAFSA
Required by almost colleges/universities and scholarship programs
Used to award institutional financial aid funds
Opens October 1st each year

19. How Financial Decisions are Made

20. Total expenses for one year of college
Cost of Attendance
20
Total expenses for one year of college
Tuition & Fees

21. Cost of Attendance (COA)
Financial Aid Formula
21
Cost of Attendance (COA)
– Expected Family Contribution (EFC) = Financial Aid Eligibility
You might not get all that you are eligible for!

22. How the Formula Works
22
EFC = $5,000
Cost of Attendance ​

23. (COA) College of Earth, Sun and Moon=
Unmet Need = $37,750
(COA) College of Earth, Sun and Moon=
$71,750
These Amounts Vary at each school!
Federal Work-Study $3,500
Student Loan $5,500
Colleges use the EFC to determine eligibility for financial aid, then try to meet the eligibility (or fill the barrel) with financial aid from all resources
Most colleges are not going to be able to fill the barrel
The EFC always goes into the barrel first
Unmet need is more common than not
Explain what happens to EFC when there is unmet need. In this example, if the student decides to attend this institution, the family will need to contribute the EFC plus unmet need ($ $3000 = $8000) for the student to attend
Use this as an example to demonstrate how the EFC is often the MINIMUM contribution for a family, not necessarily a MAXIMUM
Explain the difference between direct and indirect costs in the COA and that even though the college won’t bill the student for indirect costs, the family still needs to determine how they will be met
Explain ways that students can reduce indirect costs, such as used books and cheaper travel
Explain how outside scholarships may affect the financial aid
The $5,500 student loan might actually be $5,500 of Direct Loans, which will include at least $2,000 in Unsubsidized Loans. Unsubsidized Loans don’t technically fill in financial need, though when students don’t have their entire financial need met with other aid, the Unsubsidized Loan does help to fill that need
Grant $13,500
Scholarship $9,500
EFC $2, $2,000

24. Net Price vs. Sticker Price
Each school has a price tag, but few will pay that price
You won’t know how much each school will cost for YOU until after you apply
Sticker Price
Gift Aid
Net Price
ASA College Planning Center

25. EFC = $2000
Eligible for 66350

26. $19,350

27. Paying for College

28. Student AND Parent Savings Accounts 2-5 payments per semester
Paying off a balance
Savings
529 Plans
Student AND Parent Savings Accounts
Payment Plan
2-5 payments per semester
Interest-free
Can choose amount
Borrowing
Education Loans
Once you receive your award letters, it is important to understand which school is giving you the most FREE money, which school is leaving you with the biggest balance, and which school might have included mostly loans, PLUS loans, etc.
Here is an example of a College Cost Calculator from MEFA, the Massachusetts Education Financing Authority. The colleges you are applying to might also have an interactive calculator to help you determine your Out-of-Pocket Expenses. The website FINAID.ORG has one that also lets you compare college characteristics, such as overall fit, academic quality, even how much snow the school gets! Whatever you use, the bottom line is you must understand what you are paying out of your pocket each semester, each year and for the next 4-6 years.

29. Paying off a balance Starting Balance = $15,000 New Balance
-$5000 (Parent Savings from 529 Plan, etc.)
$10,000
-$2000 (Student Savings from summer job)
$8,000
-$1500 (Parent payment plan of $150/month)
$6,500
-$500 (Student payment plan of $50/month)
$6,000
-$6000 Education Loan $0
Once you receive your award letters, it is important to understand which school is giving you the most FREE money, which school is leaving you with the biggest balance, and which school might have included mostly loans, PLUS loans, etc.
Here is an example of a College Cost Calculator from MEFA, the Massachusetts Education Financing Authority. The colleges you are applying to might also have an interactive calculator to help you determine your Out-of-Pocket Expenses. The website FINAID.ORG has one that also lets you compare college characteristics, such as overall fit, academic quality, even how much snow the school gets! Whatever you use, the bottom line is you must understand what you are paying out of your pocket each semester, each year and for the next 4-6 years.

30. Federal Direct Student Loans
A bit about loans…
Federal Direct Student Loans
Student is the sole borrower
Not based on credit
3.76% interest rate ( )
No payments while enrolled at least half time
Federal Direct PLUS Loans
Parent is the sole borrower
Based on a parent’s credit
6.31% interest rate ( )
Can defer payments
Rates are set annually on July 1st
While parents may want to take control (and are often the ones paying the bill), it shows a great deal of maturity and sincerity when the student initiates the conversation with the financial aid office. FA Officers will pay attention to this!
Secondly, and importantly, you do not want to go in to the financial aid office and try to set up a negotiation. Talk of how School B did this for you and you want School A to match it will not go over well. You can ask them to help you understand the differences in financial aid award offers or their office’s financial aid awarding policy. Your best bet is often in simply expressing your sincere desire to attend, and wanting to make sure that you haven’t left any opportunity on the table – as you are willing to explore every option – as is evidenced by your on-time admission application, FAFSA, institutional financial aid application, etc.

31. Private Loans Parent is either borrower or co-signer
A bit about loans…
Private Loans
Parent is either borrower or co-signer
Approval and interest rate based on a parent’s credit
Limited repayment options
While parents may want to take control (and are often the ones paying the bill), it shows a great deal of maturity and sincerity when the student initiates the conversation with the financial aid office. FA Officers will pay attention to this!
Secondly, and importantly, you do not want to go in to the financial aid office and try to set up a negotiation. Talk of how School B did this for you and you want School A to match it will not go over well. You can ask them to help you understand the differences in financial aid award offers or their office’s financial aid awarding policy. Your best bet is often in simply expressing your sincere desire to attend, and wanting to make sure that you haven’t left any opportunity on the table – as you are willing to explore every option – as is evidenced by your on-time admission application, FAFSA, institutional financial aid application, etc.

32. At what point is a balance too high?
Things to think about
At what point is a balance too high?
How do you know when a chosen school is unaffordable?
What are some back-up options?
While parents may want to take control (and are often the ones paying the bill), it shows a great deal of maturity and sincerity when the student initiates the conversation with the financial aid office. FA Officers will pay attention to this!
Secondly, and importantly, you do not want to go in to the financial aid office and try to set up a negotiation. Talk of how School B did this for you and you want School A to match it will not go over well. You can ask them to help you understand the differences in financial aid award offers or their office’s financial aid awarding policy. Your best bet is often in simply expressing your sincere desire to attend, and wanting to make sure that you haven’t left any opportunity on the table – as you are willing to explore every option – as is evidenced by your on-time admission application, FAFSA, institutional financial aid application, etc.

33. Free Resources

34. Educational Opportunity Centers
Local Resources
34
FAFSA Day
Free assistance completing the FAFSA
November 2016 and January 2017
FAFSADay.org for all dates and times
Educational Opportunity Centers
Free financial aid help
MassEdCo.org (MA)
ASA College Planning Centers
Weekly Workshops
Tuesday 6-7pm: FSA ID
Saturday 10-11am: FAFSA Completion

35. https://nces.ed.gov/collegenavigator Better Make Room Campaign
Resources
SALT
College Scorecard
College Navigator
Federal Student Aid
Better Make Room Campaign
Text “college” to 44044

36. Come visit us! ASA College Planning Center
Main location: Boston Public Library, Copley Square
700 Boylston St. Boston, MA 02116
(617) or Toll-free: (877)
Mon-Thurs. 9AM-7:30PM Friday-Saturday 9AM-5PM
ASA College Planning Center