1. Financial Aid: An Overview A Presentation of
MASFAA Financial Aid Presentation
High School Financial Aid Presentation 1 1

2. MASFAA Financial Aid Presentation
High School Financial Aid Presentation
Introduction
Tonight you will learn:
What Financial Aid is
Sources of Financial Aid
The formulas used in determining your eligibility
When and how to apply
Resources for more information 2

3. MASFAA Financial Aid Presentation
Who Are You?
High School Financial Aid Presentation
Is this process new to you?
Where is your son or daughter thinking about attending college?
What is the cost of that institution?
How will you pay for it? 3

4. MASFAA Financial Aid Presentation
Agenda
High School Financial Aid Presentation
Learn the language: Review some simple vocabulary
Financial Aid Primer: Forms, Formulas and Funds
How do I apply?
Financial Aid Calendar
Review of the Forms 4

5. MASFAA Financial Aid Presentation
High School Financial Aid Presentation
What is Financial Aid?
Grants, Scholarships
Free Gifts
Do not have to be repaid
Loans
Money that must be repaid
Borrowed by student, parent, or both
Work Study
Money student is given the opportunity to earn $$
IOU 10 5

6. MASFAA Financial Aid Presentation
High School Financial Aid Presentation
Grants & Scholarships
Pell Grant
MASSGrant
SEOG
Tuition Waiver
Fee Grant
Institutional Grant
Private Scholarship
Massachusetts Performance Bonus 6

7. Educational Loan Programs
MASFAA Financial Aid Presentation
High School Financial Aid Presentation
Educational Loan Programs
Massachusetts No Interest Loan
Federal Perkins Loan
Federal Direct or Stafford Loan (subsidized or unsubsidized)
Institutional loans
Other state loans 7

8. MASFAA Financial Aid Presentation
Over $68 Billion given out in Financial Aid in
Source: The College Board

9. Financial Aid Basic Premises
MASFAA Financial Aid Presentation
High School Financial Aid Presentation
Financial Aid Basic Premises
STUDENTS have the primary responsibility for contributing to their education to the extent that they are able
PARENTS are responsible for contributing to their children’s education to the extent that they are able
FAMILIES with similar circumstances will be expected to contribute similar amounts to higher education; those with different circumstances will be expected to contribute different amounts 12 9

10. Financial Aid BASIC FORMULA
MASFAA Financial Aid Presentation
High School Financial Aid Presentation
Financial Aid BASIC FORMULA
Cost of Attendance (COA) Expected Family Contribution (EFC)
= Financial Aid Eligibility/Family Need 13 10

11. COST OF ATTENDANCE (COA)
MASFAA Financial Aid Presentation
High School Financial Aid Presentation
COST OF ATTENDANCE (COA)
Books
Tuition
and Fees
Room
and Board + + +
Other Personal Expenses
Supplies + +
Transportation 14 11

12. The Expected Family Contribution
MASFAA Financial Aid Presentation
High School Financial Aid Presentation
The Expected Family Contribution
IS a measure of parent’s capacity over time to absorb educational costs
IS NOT a dollar amount expected from current income or assets.
IS NOT an estimate of “extra” cash available.
EFC 16 12

13. Elements of Federal Methodology
MASFAA Financial Aid Presentation
Elements of Federal Methodology
High School Financial Aid Presentation
# in college
Assets
Income
FAFSA
Taxes
Used to award all Federal Aid at public and private schools
Uses both parent and student information (for dependent students)
Uses standard income and asset protection allowances
Does not consider HOME EQUITY or Qualified Retirement Assets
# in family
The Financial
Aid Funnel
Expected Family Contribution (EFC) 18 15

14. Current Federal Methodology
MASFAA Financial Aid Presentation
Current Federal Methodology
High School Financial Aid Presentation
STUDENT Contribution (dependent) +
PARENT Contribution
Parent Income % after taxes and income protection allowance
Parent Assets* 3-6% after asset protection allowance * Retirement & Home Equity not included in federal formula
Divided by number in college
Student Income 50% after taxes and income protection allowance of $2500
Student Assets 35%
EXPECTED FAMILY CONTRIBUTION 19 16

15. Institutional Methodology for Institutional Funds
MASFAA Financial Aid Presentation
High School Financial Aid Presentation
Institutional Methodology for Institutional Funds
Used by colleges to give out their own money
Formula could vary widely from school to school
Generally includes more assets than the Federal Methodology Home Equity often included
Often requires additional applications/forms 20 17

16. MASFAA Financial Aid Presentation
High School Financial Aid Presentation
Family Profile
Oldest Parent’s Age: 50
Family Members: 4 Number in College: 1
Federal tax: 10% of AGI
The Parent Contribution A Case Study
Federal Methodology 23 23 18

17. How Does the Formula Work?
MASFAA Financial Aid Presentation
High School Financial Aid Presentation
How Does the Formula Work?
COA - EFC = NEED
COA
$30,000
$25,000
Need
EFC
$20,000
$15,000
$10,000
$5,000 $0
Private A
Private B
State College/ University
Community College
COA
$30,000
$25,000
$10,000
$5,000 24 19

18. The “Step” Approach to Awarding Financial Aid
MASFAA Financial Aid Presentation
High School Financial Aid Presentation
The “Step” Approach to Awarding Financial Aid
For Institutional Grants, Admissions Ranking can determine Financial Aid Awarded 20

19. The Financial Aid Barrel A Sample Financial Aid Award
MASFAA Financial Aid Presentation
The Financial Aid Barrel A Sample Financial Aid Award
High School Financial Aid Presentation
COA - EFC = Need
$25, ,000 = 17,000
Unmet Need = $1,900
Work = $1,500 Work Study
Loan = $2,600 Stafford Loan
Gift Aid = $6,000 Grant + $5,000 Scholarship
EFC = $8,000 21 21

20. Sources of Financial Aid Consider All Your Options!
MASFAA Financial Aid Presentation
High School Financial Aid Presentation
Sources of Financial Aid Consider All Your Options!
Federal Government
State Government
College / University
Private Agencies (Kiwanis, Elks, church or synagogue group)
Professional associations
Parent’s employer 22

21. MASFAA Financial Aid Presentation
‘Financially’ Manageable
During and AFTER the College years
Look at your entire Financial Situation
Estimate the ‘Total’
Cost of Education
4+ years of expenses
STUDENT
PARENT
Make financial decisions that :
Will not jeopardize
Financial Security
Comfortable Retirement
Educating other children
other financial goals
Will not leave excessive debt
Will not jeopardize financial independence after graduation

22. MASFAA Financial Aid Presentation
High School Financial Aid Presentation
“Insider” Tips
Find out the deadlines and comply!
Keep copies of what you send.
“Guess-timate” on your applications
If you have questions, ask!
Look at all of your financing options
Don’t rule out a school just because of its cost
Apply to one or two financially ‘safe’ school
Think about how you (parent & student) will pay your share of total college costs (2/4+ years) 24

23. Financial Aid Application Materials
MASFAA Financial Aid Presentation
Financial Aid Application Materials
High School Financial Aid Presentation
FAFSA - Free Application for Federal Student Aid
Required by all colleges
Free form
PROFILE
Some colleges need this
Paid form
Institutional Application
One per school
Usually part of admissions packet
Business/Farm Supplement
Non Custodial Parent Statement
Tax Return
REMEMBER! Forms must be filed EVERY YEAR. 25

24. MASFAA Financial Aid Presentation
High School Financial Aid Presentation
Financial Aid
VERIFICATION PROCESS
Can be required by the federal government or by any institution
is carried out by the institutions
involves documentation of data provided on the application forms
an award based on non-verified information is subject to change after the information has been verified
Could be asked to provide tax returns and other backup documents
Be prepared to verify your information 26

25. The Financial Aid Calendar
MASFAA Financial Aid Presentation
The Financial Aid Calendar
High School Financial Aid Presentation
January (or earlier for Profile): Complete forms (BEST GUESS IS OK FOR INCOME)
February (or earlier for Profile): Many school’s deadlines for forms
Late February - March: Schools may call you with questions
End of March - Early April: Admissions and Financial Aid notification mailed 27

26. The Financial Aid Calendar (continued)
MASFAA Financial Aid Presentation
High School Financial Aid Presentation
The Financial Aid Calendar (continued)
April: Compare award letters from different schools
May 1: DECISION DEADLINE - Tell all schools yes or no
May: Pay deposits (tuition, room and board) - about $500
June: Bill for the Fall semester, due by 8/1 or so
November - December: Bill for the Spring Semester 28

27. MASFAA Financial Aid Presentation
“I need more help!...”
MASFAA Financial Aid Presentation
High School Financial Aid Presentation
Higher Education Information Center 1(800)
Federal Student Aid Center - FAFSA Processing: FEDAID
College Scholarship Service - Profile Processing: (800)
Each college’s financial aid office
Your high school guidance office
Your state legislator’s office 31

28. Still more help on the WEB...
MASFAA Financial Aid Presentation
High School Financial Aid Presentation
Still more help on the WEB...
Resources for:
Financial Aid
Scholarships
College Information 33

29. HELPFUL HINTS IN COMPLETING THE FORMS
MASFAA Financial Aid Presentation
HELPFUL HINTS IN COMPLETING THE FORMS
High School Financial Aid Presentation
READ all the instructions
Complete the ENTIRE form, unless specifically instructed to leave something blank
Use number 2 pencil or a pen with black ink
Read “When You Fill Out This Form” on page 2 of FAFSA
Be sure to answer all questions on the form using information about the individual about whom the question is directed (e.g. Do not provide parent's social security number when asked to provide the student's social security number. )
Use regular first-class mail. Sending the forms special delivery or by overnight mail or by any other special process to the P.O. Box indicated MAY DELAY RECEIPT of the forms by the processor
Notify all of the financial aid offices of institutions to which student applies regarding any unusual or special family circumstances not already reflected on both of the forms 30

30. Let’s Fill Out the Forms
MASFAA Financial Aid Presentation
High School Financial Aid Presentation
Let’s Fill Out the Forms
Free Application for Federal Student Aid (FAFSA)
Profile Registration Form 29

31. MASFAA Financial Aid Presentation
High School Financial Aid Presentation
THANK YOU!
Questions? 38 34