1. College Financial Aid Night
Morgan a. Kelly
Director, Student financial assistance
Sacred Heart University

2. Tonight’s Agenda FAFSA update for 2017-2018
Sources & Types of Financial Aid
Financial Aid Applications
Determining Eligibility
Net Price Calculator
Student Loans
Outside Scholarships
Questions to Ask
Financial Aid Resources

3. FAFSA Update 2017-2018 Academic Year
“Old” FAFSA
New Prior-Prior FAFSA
Available January of student’s senior year
Use taxes from year prior
Student enters college Fall 2016, report 2015 tax information
Make corrections once taxes are filed
College enrollment deadline before you may have accurate financial aid information
Available October of student’s senior year
Use taxes from two years prior
Student enters college Fall 2017, report 2015 tax information
Taxes have been filed
Allows more time to consider the financial aspect of college decision

4. Sources & Types of Financial Aid
Read your award package carefully! Understand what is free, what is earned, and what is repaid.
Grants & Scholarships
Free, sometimes referred to as
gift aid
Work-Study Program
Earned in a paycheck as the
student works
Federal Stafford Loans
Subsidized: no interest while enrolled
Unsubsidized: interest accrues while enrolled
Repaid, however, no payment due on either loan while enrolled

5. Financial Aid Applications
Free Application for Federal Student Aid (FAFSA)
Required for Federal & State Aid
fafsa.gov
CSS Profile
Not used by every college; primarily only by private colleges
css.collegeboard.org
Institutional Applications
Check school publications and websites
Deadlines
Each school may have their own deadlines
Submit two weeks before earliest deadline
February 15th Deadline - Submit by February 1st

6. Federal Student Aid ID (FSA ID)
Gives you access to Federal Student Aid’s online systems
Serves as your legal, electronic signature for FAFSA, Federal Stafford Loans and Federal Parent Loans.
Replaces the Federal Student AID PIN (used from )
Students and at least one parent need an FSA ID.
Specific to each individual, i.e. if you have more than one student in college, a parent only has one FSA ID
Create FSA ID
fsaid.ed.gov
Name, SSN, date of birth, mailing address, address & phone number
Students should not use a high school address
Must match the information on file with the Social Security Administration (SSA)

7. Free Application for Federal Student Aid
FAFSA Basics
Information Requested
fafsa.gov  not “.com”
FAFSA will be available 10/1/16
Creates eligibility for Federal & State Financial Aid
Submitted each year the student is in school
1 FAFSA per student, not per family
No cost to complete FAFSA
Parent & Student 2015 tax information
If eligible, use data retrieval tool, otherwise enter manually
If divorced/separated, use custodial parent information
Information on savings & checking account balances; investments, including stocks and bonds
Will take into account more than 1 student in college

8. Data Retrieval Tool (DRT)
Transfer parent & student tax data directly into FAFSA from the IRS
On “Parent Financial Information" page, answer DRT eligibility questions
Enter Parent’s FSA ID & Click "Link to IRS“ (will leave the FAFSA website)
Submit IRS information & select “Transfer My Information into the FAFSA”
Repeat for student tax filers on “Student Financial Information” page
If unable to use DRT, enter information manually
Current unable to use DRT if, on 2015 taxes:
Married and filed as Married Filing Separately
Married and filed as Head of Household
Filed a Form 1040X amended tax return
Filed a Puerto Rican or foreign tax return

9. After Submitting the FAFSA
Review the Student Aid Report for errors
If necessary, make corrections and resubmit FAFSA
If selected for verification, a notification will be present
You may be required to submit tax transcripts and/or other forms for verification purposes to the school
If selected, financial aid awards are tentative until verification is complete
If 2015 tax information is not representative of current income
Contact each school about appeal/professional judgment
Do not alter FAFSA information on your own

10. CSS Profile Application
CSS Profile Basics
Information Requested
css.collegeboard.org
Overview of application
Link to start your CSS Profile
Available 10/1/16
Used to determine eligibility for institution specific funding
May not be required each year, depends on institution
1 CSS Profile per student, not per family
$25 to complete one CSS Profile, $16 each additional application
Parent & Student 2015 tax information
Enter information manually
If divorced/separated, use custodial parent information
Some schools may require Non-Custodial Profile Form
Will ask for other financial information including assets, medical debt & expenses
Will take into account more than 1 student in college

11. Determining Eligibility
Cost of Attendance
Federal EFC
____________
Financial Need

12. Total Cost of Attendance
The Cost of Attendance
Direct Costs
Tuition and required fees
Room and board for resident students
Indirect Costs
Books and supplies
Transportation to and from campus
Miscellaneous personal expenses
Direct Costs
Indirect Costs
Total Cost of Attendance

13. Expected Family Contribution (EFC)
The EFC is calculated according to a formula established by law
The formula considers financial information reported on a student’s FAFSA, along with family size and the number of family members who will attend college during the year.
Subject to federal verification
Used to calculate the amount of federal financial aid a student is eligible to receive
The EFC is not a guarantee of the dollar amount a student will pay to attend college
Net Cost of each college is subject to Federal, State & individual school funding

14. Eligibility for Financial Aid
4 Year Private 4 Year Public
Total Cost
- Federal EFC
= Financial Need
$45,000
$10,000
$35,000
$22,000
$10,000
$12,000

15. Need-Based vs. Merit Based
Need-based aid is subject to a student’s demonstrated financial need. Merit-based aid considers achievement, talent & participation, regardless of financial need.
Need-Based Aid
Pell Grant
Work Study
Merit-Based Aid
Academic Achievement
Athletic Achievement

16. The Financial Aid Award Package
Total Cost = $45,000
Total Cost = $45,000
College Grant: $28,000
Unmet Need: $15,000
College Grant: $13,000
Work: $1,500
Work: $1,500
Loan: $5,500
Loan: $5,500
EFC: $10,000
EFC: $10,000

17. The Financial Aid Award Package
Total Cost = $45,000
Total Cost = $45,000
College Grant: $28,000
Actual Cost after Merit: $7,000
Academic: $18,000
Work: $1,500
Loan: $5,500
Athletic: $20,000
EFC: $10,000

18. Information Requested
Net Price Calculator
What is it?
Information Requested
Allows for an estimate of your expenses and financial aid possibilities from each institution
Not a guaranteed award
Intended to help families understand out-of-pocket expenses earlier in the application process
Financials from Parent & Student 2015 Tax Returns
Earnings statements (W2 forms, recent paycheck stubs)
Bank statements
Student academic information

19. Loan Repayment Calculator
Student Loans
Options
What to Consider
Stafford Loans
Solely in the student’s name
Subsidized/Unsubsidized Stafford
No credit check, student cannot be in default on a previous loan
Private Loans
Student will need a co-signer
Requires credit check
Parent Loans
Solely in the parent’s name
Loan Repayment Calculator

20. Outside Scholarships Consider making a specific email account
Look for opportunities where there will be less applicants
Start with town, then county, then state, then national
Specific major, ancestry, or participation
Notify college when you win a scholarship
May reduce current award from school
Potential Sources
Guidance Office
Local Businesses
Civic and Community Organizations
Ethnic & Cultural Organizations
Parents’ Employer
Churches/Religious Groups

21. Outside Scholarships Fast Web School Soup Admission Hook
School Soup
Admission Hook
Scholarship America
Tuition Funding Sources
Should not pay for these applications
May require information from financial aid forms
Expected Family Contribution
Renewal varies based on award

22. Questions to ask and not assume!
When will I receive my financial aid award?
How do outside awards affect the aid package?
What is the school’s policy on non-custodial parents?
Are the scholarships/grants renewable each year?
What happens if financial circumstances change?

23. Financial Aid Resources
To request a copy of your Tax Return Transcript (if unable to use data retrieval tool on FAFSA)
studentloans.gov To completed Stafford Loan paperwork and Apply for Plus Loans
Consumer tips for parents and students as well as financial aid tools for completing required applications
studentaid.ed.gov An Office of the U.S. Department of Education
The Connecticut Office of Higher Education

24. Paying For College What Are the Options?
Jennifer Dudley
Wells Fargo - Assistant Vice President

25. Option #1 - Federal Parent Loans
Borrower = Parent, loans are borrowed through the college
Fixed interest rate
Fee
Covers the cost of education (COE) minus financial aid
Not need-based
Credit check required
Repayment begins after disbursement, may request deferment
10 – 25 year repayment depending on repayment plan
Tip: Consider interest rate and fees, evaluate the monthly payment amount.

26. Option #2 – Private Student Loans
Borrower = Student with parent/sponsor as co-borrower
Private loans are offered by a variety of lenders
Credit based loan approvals
Fixed and Variable interest rates , check with lender
Rates determined at application, usually no fees
Borrow Cost of Attendance minus financial aid (borrowing limits)
Deferred repayment available
Typically year repayment
Tips: Consider interest-only payments while in-school/grace. Shop lenders for repayment, forbearance, death and co-signer release options. Consider total monthly payment on loans.

27. Option #3 – Home Equity
Income, debt and credit score determine eligibility and the interest rate of loan
Home Equity Loan
The lender advances you the total loan amount upfront
Amount borrowed usually is limited to 80% of the equity in your home determined by the home’s market value and how much you owe on the mortgage
Home Equity Line of Credit (HELOC)
Provides you with a source of funds that you can draw on as needed for a pre-determined time-frame
What are the fees and closing costs associated with the loan?
Consider risks of a variable rate loan
Tip: If you tap into your home equity and fail to pay the loan back ,this may put your house at risk.
Source: Consumer Federal Trade Commission article Home Equity

28. Option #4 – 401K
You may be able to borrow money from your employer’s retirement plan to pay for college expenses for yourself, your spouse, or your children. For example, you can borrow up to half your vested balance in your company 401(k) plan or $50,000
Advantage
The interest you pay goes back into your retirement account, so you're paying yourself
Disadvantages
The loan must be repaid in five years
If you quit, are fired, or are laid off, your loan may be due immediately
The money you borrow is no longer invested in your retirement fund
Tip: Ask you Financial Advisor about using retirement funds for college
Source: finaid.org/savings/retirement funds

29. Thank you for your time For even more information:
studentaid.ed.gov
fafsa.ed.gov
anycollege.com
collegenet.com
tuitionfundingsources.com

30. THE HIGH SCHOOL SCHOLARSHIP FOUNDATION OF FAIRFIELD, INC.
Awarded over $220,000 in scholarship aid June 2016
Over 100 scholarships – many with criterion
Single web-based application for all scholarships
Available on the HSSFF website in early April; deadline to submit usually near the end of April
More information about the application process is provided to seniors in early April via home room, school and HSSFF websites, our Facebook page, high school daily bulletins and the guidance offices
Website: