1. Understanding Your Financial Aid Award Letter

2. About Us
ASA College Planning Center

3. 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

4. Main location: Boston Public Library, Copley Square
Come visit us!
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
Satellite Location: Bunker Hill Community College – Chelsea
70 Everett Ave. Chelsea, MA 02150
Every Monday, 11AM-5PM
Satellite Location: Asian American Civic Association
87 Tyler St. Boston, MA 02111
Every Wednesday 9AM-12PM and 1PM-5PM
ASA College Planning Center

5. Financial Aid Award Letters After the Award Agenda
Financial Aid Review
Financial Aid Award Letters
After the Award
Agenda
Title

6. Financial Aid Review
Title

7. Cost of Attendance (COA)
Financial Aid Formula 7
Cost of Attendance (COA)
– Expected Family Contribution (EFC) = Financial Aid Eligibility

8. Cost of Attendance (COA) (The Whole Kit & Caboodle)
Direct Costs
(AKA “The BILL”)
Fees
Room & board
Tuition
You will be BILLED for Tuition/Fees and Room and Board if you live on campus. This is what is known as a TERM Bill.
A school cannot bill you for the other “Stuff” – fast food, laundry, phone calls, school supplies, dorm decorations, etc. However, you will need to purchase or acquire many of these items. So the total cost for a student to attend a college for one year will include what is on the bill, PLUS whatever extras (necessity or luxury) you need to purchase.
For those looking to cut costs, the extras are where you can save some money. Think about buying dorm decorations and other supplies from a thrift store or dollar store. Stock up on snacks from COSTCO to bring with you so you don’t’ have to spend a fortune at the vending machine. Also, ask your school if there are lower-cost residence halls or meal options available. +
Indirect Costs
(Everything Else)

9. COA-EFC = Financial Aid Need
Some more key terms
Expected Family Contribution (EFC)
Determines how much need-based aid you are eligible to receive.
NOT necessarily the amount you will pay!
COA-EFC = Financial Aid Need
ASA College Planning Center

10. 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

11. Grants Scholarships Types of Free Aid Federal, State, Institutional
Usually based on a student’s need
Scholarships
Primarily Institutional*
Usually based on an achievement or
special characteristic
ASA College Planning Center

12. Loans Employment Types of Non-Free Aid Direct Loans
Direct Subsidized – 3.76% interest rate
$3500, $4500, $5500, $5500
Direct Unsubsidized – 3.76% interest rate
$2000 per year (dependent)
$6000 per year (independent)
PLUS Loan – 6.31% interest rate (7.29% APR)
Parent Loan up to COA
Employment
Federal Work-Study (FWS)
Work on Campus, earn $$
Does NOT come off your bill
ASA College Planning Center

13. Financial Aid Award Letters
Title

14. This is all you need to know
ASA College Planning Center

15. How Financial Aid Works
Compare the financial aid award letters from multiple schools based on:
Cost of attendance
Amount and types of aid awarded
Amount you are expected to pay toward the costs
The total to be paid by you
Follow the instructions on the financial aid award letter to accept the financial aid package.
Be aware of the school’s deadline.
Be aware of additional steps that may be required depending on the types of aid you accept.
How to Plan for College

16. EFC = $2000
President’s
Presentation Title

17. How Financial Aid Works
At SALT University…
$69,474 (COA) -
$2,000 (EFC)
_____________________________
= $67,474 (Financial Aid Need)
If SALT University has given you $66,472
WHAT IS YOUR BALANCE?
How to Plan for College

18. How Financial Aid Works
The balance: is $5,002
$3,002 (Balance after award from SALT university’s financial aid award) +
$2, (EFC)
__________________________________
= $5,002
How to Plan for College

19. EFC = $2000
Presentation Title

20. How Financial Aid Works
Congratulations on being accepted to SALT University! After a careful review of your financial aid application, we are pleased to offer you the following financial aid award:
(Your EFC = $8,225)
Real cost paid may differ
Not all Awards are created equal
Parent PLUS Loan
How to Plan for College

21. These Amounts Vary at each school!
Unmet Need $37,750
Federal Work-Study $3,500
Student Loan $5,500
These Amounts Vary at each school!
Grant $13,500
Colleges use the EFC to determine eligibility for financial aid, then try to meet the eligibility (or fill the barrel) with financial aid from all resources
Most colleges are not going to be able to fill the barrel
The EFC always goes into the barrel first
Unmet need is more common than not
Explain what happens to EFC when there is unmet need. In this example, if the student decides to attend this institution, the family will need to contribute the EFC plus unmet need ($ $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
Scholarship $9,500
EFC $3,000

22. Interactive College Cost Calculator (Courtesy of MEFA):
Compare!
Interactive College Cost Calculator (Courtesy of MEFA):
ASA College Planning Center

23. Loan Info
Presentation Title

24. The Benefits of Federal Loans
Positives
The Benefits of Federal Loans
No credit check
Annual limits
3.76% fixed interest rate for (Undergrad)
5.31% fixed interest rate for (Graduate)
Repayment, Deferment and Forbearance Options
Build good credit with timely payments

25. Federal Student Loans for Undergraduates
Federal Government
The lender
Loan Servicer
Will be assigned to the student
Student
YOU!
This is the basic principle for a Direct Loan. Student is sole borrower. Usually known as the “Direct Stafford Loan”
Parents can apply separately for their own loan, if needed, called the Parent PLUS loan.
How to Plan for College

26. Federal Student Loans for Undergraduates
Student is the sole borrower
No credit check
Annual limits, $5,500 for a 1st year dependent student.
3.76 % fixed interest rate for
Repayment, Deferment and Forbearance Options after 6-month grace period.
Parents can also borrow Federal Loans, (Parent PLUS Loans) must apply separately. 6.31% interest.
How to Plan for College

27. 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.

28. Private or Alternative Loans
Loans made by banks or other lending institutions.
Each private loan product offers its own terms and conditions—so do your research.
Exhaust your federal loan eligibility before you consider a private loan.

29. Private Loan Considerations
Consider the following:
Interest rate
Fees
Repayment options
Application of extra payments toward principal
Frequency of changes to monthly payment
Also important:
Cancellation policies, grace period, deferment & forbearance options, benefits, and default

30. After the Award
ASA College Planning Center

31. Paying off a balance
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.

32. Exhaust ALL financial aid options before borrowing student loans
Borrowing Basics
Exhaust ALL financial aid options before borrowing student loans
Borrow ONLY what you need!
Before thinking about borrowing, exhaust all other aid options. Grants and scholarships are the most attractive aid options since they are “free money” and never have to be repaid. Work-study is an option for you to earn money toward your education by working in an on campu s student work position. Take advantage of tuition reimbursement and assistantships and fellowships as well if they are available.
Once you’ve exhausted all other aid options, then look into borrowing. The yearly loan maximums are very generous and are often much more than you need. Don’t borrow this full amount unless you absolutely need it. Before applying, determine your remaining expenses and then borrow only the amount you need. By limiting the amount you borrow, you will have a positive impact on your financial future.
Many students need to borrow money to pay for college. Whether you’ve already borrowed, filled out an application for a loan, or are planning to, it’s critical that you know the basics of borrowing money.

33. -$5000 (Parent Savings from 529 Plan, etc.) $10,000
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.

34. $$$ you save now and contribute to the bill
Every Penny Counts
$$$ you save now and contribute to the bill
can help lower your loans bills later
Three students at ASA University have a gap of $2,000 a year, after using all of their federal subsidized loans ($19,000).
Presentation Title

35. $80/month $0 Every Penny Counts Add. Loans $8,000 Add. Loans $4,000
Student Contribution
Loan Payment
Total Over 10 Years
Additional Costs
Add. Loans $0
$160/month
$187
$22,440
$80/month
Add. Loans $4,000
$233
$27,960
+$5,520 $0
Add. Loans $8,000
$279
$33,480
+$11,040
Presentation Title

36. Balance STILL Too Big?
Appeal your financial aid award if you think your financial situation has changed since completing the FAFSA.
Contact the Financial Aid Office to discuss any additional assistance – not just free money!
Always always always discuss your situation with the financial aid office, even if you think it won’t make a difference. This is not the time to be humble! Put all your cards on the table, the more they know, the better.
STOCK PHOTO: # OR # 36

37. Any special circumstances.
What To Talk About
Any special circumstances.
Job loss, significant health care expenses, K-12 school expenses, etc.
Where your money goes.
Budget worksheets
Income and expenses
Existing debt*
Sending money to family overseas
*While most schools will look at existing CONSUMER debt as a lifestyle choice and will not factor it into consideration, some debt, such as parent’s educational loans or money being paid toward educating siblings, may be taken into consideration.
STOCK PHOTO #

38. How To Talk
When possible, the student should be the one asking for more resources.
It is okay to sincerely ask 1) for a specific amount, and 2) if there are any other options available to help you attend their institution.
Put ALL your cards on the table! The more information you provide, the better you can present your situation.
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.

39. Thank you

40. EFC = $2000
Eligible for 66350

41. $19,350

42. Provide a recommendation for which college your student should attend.
Activity
Your student has award letters from 3 colleges – Curry College, Bridgewater State University and UMass Boston. She lives a few blocks from Curry, but really wants the experience of living on campus. She prefers the small, enclosed setting of Curry, and said that she enjoyed the feeling of being “away from it all.” She stated that she was a bit apprehensive about living right in the middle of a city.
Evaluate and compare each award using the College Cost Calculator Sheet.
Provide a recommendation for which college your student should attend.
ASA College Planning Center