1. Applying for Financial Aid Fall ‘18
It’s Time! corning community college

2. Knowledge is an Investment
If a man empties his purse into his head, no one can take it from him. An investment in knowledge always pays the highest return.
– Benjamin Franklin

3. What is Financial Aid?
Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses

4. Goals of Financial Aid: Affordability
To provide access -- regardless of income
To provide choice -- regardless of cost
Paying for college is a “partnership” between the student, parents, college, government, and outside sources

5. Principles of Need Analysis
To the extent they are able, parents have primary responsibility to pay for their dependent children’s education
Students also have a responsibility to contribute to their educational costs
Families should be evaluated in their present financial condition
A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect its ability to pay

6. What is the Expected Family Contribution (EFC)
Amount family can reasonably be expected to contribute
Stays the same regardless of college
Two components
Parent contribution
Student contribution
Calculated using FAFSA data and a federal formula
The EFC does NOT necessarily equal what the family pays

7. Financial Aid Formula – How Need is Calculated
Cost of Attendance
- Expected Family Contribution
= Financial Need

8. Need Varies Based on CostX Y Z
Cost of
Expected Family
Need
Attendance
Contribution (V
ariable)
(Constant) 1 2 3
EFC 5

9. Financial Aid Applications
Free Application for Federal Student Aid (FAFSA)
Free
New York State Tuition Assistance Program (TAP)
Can be linked when you file the FAFSA
CSS Profile
Required by some colleges/universities

10. FAFSA
Standard form that collects demographic and financial information about the student and family
Application to apply for federal grants, loans, and work-study
Colleges use EFC to award financial aid

11. FAFSA Can apply beginning October 1st
Will use tax return data from 2 years prior to start of academic year ( academic year = 2016 tax return data)

12. FAFSA – Getting the Application Started
Create a Federal Student Aid ID (FSA ID)
Available to create FSA ID (username/password) today
Students and parents should each create their own Federal Student Aid ID
fsaid.ed.gov

13. FAFSA

14. FAFSA Built-in edits to prevent costly errors
Skip-logic allows student and/or parent to skip unnecessary questions
Option to use Internal Revenue Service (IRS) Data Retrieval Tool to import tax data

15. FAFSA
More timely submission of original application and any necessary corrections
More detailed instructions and “help” for common questions
Ability to check application status online
Simplified application process in the future

16. IRS Data Retrieval Tool
While completing the FAFSA, applicant may submit real-time request to IRS for tax data
IRS sends real-time results to FAFSA application
Applicant chooses whether or not to transfer data to FAFSA
Tax returns must already be filed
Could reduce documents requested by financial aid office

17. Tips for starting the FAFSA
Make sure the FSA ID has been created
Read questions carefully – student vs. parent
Do not have to wait until accepted for admission
Info “as of the date you complete the form”

18. Frequent FAFSA Errors Social Security Numbers
Divorced/remarried parental information
Income earned by parents/stepparents
Untaxed income
U.S. income taxes paid
Household size
Number of household members in college
Real estate and investment net worth

19. Who Are Considered Parents on the FAFSA?
Biological or adoptive parents (regardless of gender)
Parents married and living with each other
Parents unmarried and living with each other
Parent widowed or single
Parents divorced or separated - answer questions for parent with whom student lived more during past 12 months. If equal time between each parent, answer for the parent who provided more financial support during the past 12 months
If custodial parent has remarried, answer about that parent and the person whom parent married (stepparent)

20. Who Are Not Considered Parents on the FAFSA?
Foster parents
Legal guardians who have not adopted the student
Relatives, such as grandparents, who have not adopted the student
Stepparents who have not adopted the student and the natural parent in the household is deceased. Must use remaining biological/adoptive parent, if any.

21. Special Circumstances
Change in employment status
Medical expenses not covered by insurance
Change in parent marital status
Unusual dependent care expenses
Cannot be documented using FAFSA
Send written explanation and documentation to financial aid office at each college

22. Excelsior and ETA Scholarships
Excelsior Scholarship – free tuition at SUNY/CUNY/Community College
Tuition = Excelsior + Pell + TAP + Other scholarships
Enhanced Tuition Award (ETA) - $6,000 at a participating private college in NYS
$6,000 = TAP + ETA + Institutional match

23. Eligibility Criteria for Excelsior Scholarship
Income less than $110,000 for ‘18-19 award year
Student must earn 30 credit hours per year
Student must maintain 2.0 GPA
May receive for up to 4 years
Student must live and work in NYS for same number of years. If not, then it converts to a no-interest loan
Apply through NYS HESC. Selection by HESC.
Priority to currently enrolled
Lottery if apps exceed funding

24. Eligibility Criteria for Enhanced Tuition Award (ETA)
Same as Excelsior
Schools must agree to freeze the tuition of the recipients for the duration of time that they receive the award
Schools can choose to opt in or out

25. Scholarships – based on Merit
Academic Scholarships
Other merit-based scholarships
Athletic, Music, Art, Leadership, etc.
Endowed Scholarships
Private
Local community organizations
Employers
Internet
Small scholarships add up!

26. Grants – based on Need Federal Pell Grant – up to $5,920
FSEOG – up to $4,000
New York State Tuition Assistance Program (TAP) – up to $5,165*
Institutional need-based grants
*Figures for academic year

27. Student Employment Federal College Work-Study Program
On-campus work program
Some positions are in community service
Usually minimum wage
typically 5 – 15 hours/week
Maximum earnings typically $1,500 to $2,500/year

28. Loans William D. Ford Direct Loan
Subsidized Federal Loan - $3,500 (1st year)
Unsubsidized Federal Loan - $2,000
Federal Parental Loan for Undergraduate Students (PLUS)
Alternative/private education loans
Always borrow federal loans first

29. How does a college construct a financial aid award package?
Schools attempt to meet your “financial need”.
Financial aid is awarded utilizing gift aid first and then self-help (student employment and loans) up to the financial need.
Total aid cannot exceed the total cost of attendance
Need-based aid cannot exceed the demonstrated financial need.
All aid (including outside/private scholarships) are included in the need calculation

30. Estimating Your Eligibility for Financial Aid
Net Price Calculator - Colleges are required to have estimating tools on their website allowing families to get a reasonable estimate of net costs.
FAFSA4caster - estimates your eligibility for federal student aid (on main page of FAFSA website fafsa.ed.gov)

31. Financial Aid Information

32. Avoid Financial Aid Scams
Organizations that offer to locate more aid and then charge you a fee
Anyone who charges you a fee:
for information about financial aid
to complete the FAFSA
to apply/receive a scholarship
Organizations that guarantee you will get a scholarship or aid

33. Financial Aid Calendar
Late summer/early – apply to college
October/November – apply for aid (FAFSA)
December – March – receive financial aid award letter from college
May 1st – College Decision Day
Summer – apply for loan
September – classes begin, aid applied to account

34. 529 College Savings Plans
Tax-exempt college savings vehicles with a low impact on need-based financial aid eligibility since considered as an asset of the account owner and not the beneficiary
FAFSA reporting:
Parent - reported as parent asset
Grandparent – not reported on the FAFSA
However, distributions from grandparents are considered “cash support” on the FAFSA in the following year

35. America Recovery and Reinvestment Act (ARRA) of 2009
American Opportunity Tax Credit – up to $2,500 per student for families with incomes less than $160,000

36. Helpful Hints Apply Beware of scams Pay attention to deadlines
Role of student
Talk about credit and smart borrowing
Importance of grades
Compare
Ask questions!

37. Director of Financial Aid
Troy Martin
Director of Financial Aid
QUESTIONS?