1. Financing Your Future 2016 Elizabeth Desi
Sr. Associate Director of Financial Aid
University of New Haven

2. What will we discuss? Financial Aid – What is it?
The process for Applying for financial aid
The school’s role
Financial aid award letters
Special circumstances
Loan programs
Scholarship searching
Estimating your financial aid at schools

3. The Basics Financial Aid = funding to help pay for college
Why do we need financial aid?
College costs money to attend
Community Colleges, State Schools, & Private Schools

4. Types of Financial Aid Scholarships Grants Loans Student Employment
Free money – don’t have to repay
Grants
Loans
Have to repay
Student Employment
Have to work to earn the money

5. Sources of Financial Aid
Federal
Money from the federal government
State
Money from the State in which you live
Institutional
Money from the College/University (merit, need- based, athletic)
Private
Money from private agencies, organizations, civic groups, high schools, churches, etc.

6. Applying for Financial Aid
File the Free Application for Federal Student Aid (FAFSA)
FAFSA is FREE
FAFSA determines eligibility for:
Federal grants and loans
State grants

7. Applying for Financial Aid
Institutions use the FAFSA to determine eligibility for their need-based scholarships
Schools may require additional forms to determine eligibility for financial aid
CSS Profile
Institutional Application

8. Completing the FAFSA FAFSA on the Web
File FAFSA if entering college Fall 2017
NEW!! FAFSA available in October 2016
Available NOW!
Forms for 2 years on website – use correct year
Have to complete FAFSA EACH YEAR
Will need to get FSA ID to sign
Go to fsaid.ed.gov
Student and Parent each need an FSA ID
Paper Signature Page option

9. FSA ID

10. FSA ID You will need to: Create your User Name & Password
Create Challenge Questions
Enter a significant date that is not your date of birth
Wait days to use your FSA ID
Social Security Administration must verify your identity before your FSA ID is available for use

11. Completing the FAFSA
Student Information sections & Parent Information sections – BE CAREFUL WHEN COMPLETING
Can add up to 10 schools on the web application
Can submit the FAFSA to schools in which you are interested in applying for Admissions.
Have to be offered Admissions before Financial Aid is determined

12. Completing the FAFSA Be Aware of Priority Filing Dates
Submit FAFSA by School & State Priority Filing Date – CT has had filing date as early as Feb 15
School & State funding is limited so file ON TIME
For , you can enter actual tax data & try to use the Data Retrieval Tool since you use income to complete

13. Completing the FAFSA IRS Data Retrieval Tool
Populates your income information directly from the Internal Revenue Service (IRS)
Available approximately 3 weeks after filing your tax return
Students selected for Verification
If don’t use IRS Data Retrieval, Tax Return Transcript is Required
Verification form & Other documentation Required
Note: Schools may have their own Verification process –
they may request tax return transcripts and other documentation beyond the federal requirements

14. FAFSA – Common Questions
Parent and Student Information on FAFSA
Student’s Application
If 2 students in family, each complete an application
Parent signs each
Divorced or Separated – Who completes?
Parent with whom student lived with most during the past 12 months
If lived with equally, the parent who provided more financial support
If Parent Remarried
Step-parent information must also be included
Note: The FAFSA looks at who is in the household and the
income in that household

15. FAFSA – Common Questions
Both parents living together but not married, both parent’s information must be on the FAFSA
Example: Divorced but living in the same house
Example: Never married but living together
Legal Guardians don’t complete FAFSA
Student completes FAFSA on own
Must provide court documentation to school
If no court documentation, parent must complete FAFSA with student

16. Processed FAFSA Student Aid Report (SAR) Review your SAR
Indicates your FAFSA has been processed
Indicates how family answered every question on the FAFSA
Review your SAR
Indicates the next steps
If there are issues that need to be resolved
Data Base matches – Social Security Number, Citizenship, Selective Service
Will indicate if a student is selected for Verification

17. EFC & the School
Results of the FAFSA is the Expected Family Contribution (EFC)
Amount you as a family can contribute toward the student’s education
Schools use the EFC to determine what types of financial aid and how much they can offer to a student

18. Cost of Attendance School determines the Cost of Attendance (budget)
different at each school
Cost of Attendance includes not only tuition, fees, room, meals (Direct costs) – ALSO Allowances for books, supplies, personal expense, travel expense, misc expense

19. EFC & the School
School takes Cost of Attendance and subtracts your EFC (results of your FAFSA) to determine a students “financial need”
Cost of Attendance
- Expected Family Contribution (EFC)
___________________________________________
Financial Need

20. EFC & the School
If the EFC is less than the Cost of Attendance, the student may be eligible for subsidized financial aid such as grants, scholarships, subsidized student loans and the parent PLUS loan

21. EFC & the School
If the EFC is greater than the Cost of Attendance, the student may be eligible for unsubsidized financial aid such as unsubsidized student loans and the parent PLUS loan
Merit scholarships are based on a student’s academic or athletic performance and can be awarded regardless of the EFC

22. Financial Aid Award Letters
The school communicates with the student via a Financial Aid Award
Awards may be electronic or paper
If electronic, student would receive notice or to view their award information on line
Awards offered are listed on the Award Letter – Awards make up a “Financial Aid Package”

23. Financial Aid Award Letters
Families should determine Direct costs of the school
Tuition, Fees, Room, Meals and any other expenses charged on the bill
May also want to factor in an amount for books – An average amount per semester for student enrolled full-time is $500 however the sciences, engineering and some other classes may be more expensive.

24. Financial Aid Award Letters
Families should understand each award listed
Is the award a LOAN? = Money you will have to repay
Is the award a scholarship or grant? = Money you won’t have to repay
Are the scholarships offered by the school renewable and if yes, what are the requirements?

25. Financial Aid Award Letters
Families should subtract the awards you want to accept from the amount you will be billed by the school to determine how much, if anything, you will need to pay for the student to attend that school
Some options for paying that balance:
Federal Parent Loan
Private Loan
Tuition Payment Plan

26. Special Circumstances
FAFSA is based on 2015 income information
Notify the Financial Aid Office if you have any financial changes in your household after 2015
Loss of Job – reduction in income
Extra Medical Expenses
Divorce or Separation

27. Loan Programs
Schools process federal student and parent loans through Direct Lending
Direct Loan program = The federal government is the lender. The school communicates with the government to process the educational loans
The Direct Loan program offers the Federal Student Loan for students and the Federal PLUS Loan for Parents

28. Loan Programs
Students will see the federal Direct Student Loan offered on the Financial Aid Award
Be Careful! You may see the Federal Direct Parent PLUS Loan on the student’s award

29. Loan Programs
Students and Parents must sign Promissory Notes for the loans
Students must also complete Entrance Loan Counseling before borrowing the student loan
The loan counseling lets the student know their rights and responsibilities in being a student loan borrower – It’s a learning tool
Provides some financial awareness for the student

30. Student Loans Direct Student Loans Low Interest rates
Interest rate set July 1 each year - not to exceed 8.25% - Fixed rate
Student is the borrower
Students are eligible regardless of family income
No penalty for early repayment of loan

31. Student Loans
The Subsidized Loan will be offered to students who demonstrate “financial need” based on the results of the FAFSA (EFC) and other financial aid the student is receiving
Up to $3,500 for a first year student depending on financial need
July 1, 2016 Fixed interest rate of 3.76% for undergraduates
Government pays interest on Subsidized loans, & principal is deferred while student is enrolled at least half-time

32. Student Loans Unsubsidized Student Loan
Fixed interest rate is currently 3.76% for undergraduates
Principal is deferred while student is enrolled at least half-time
Interest accrues while student is enrolled. If not paid, it will capitalize causing the balance of the loan to become larger
Interest is charged quarterly (every three months)
Example: $2,000 loan will accrue approximately $95 of interest for a year therefore loan balance will increase to $2,095 in one year

33. Parent Loan
The PLUS is a Federal Loan for parents to borrow, to assist with paying educational costs
Interest rate is a fixed rate currently at 6.31%
Credit based loan – Government reviews for any negative credit history
Repayment begins days after loan is fully disbursed. Parents normally borrow for the full year therefore the loan will not be fully disbursed until spring semester loan disburses, so repayment begins in February or March (option to defer payment until after student is no longer enrolled at least half-time)
Repayment period up to 10 years (depending on loan amount borrowed)
No penalty for early repayment of loan

34. Parent Loan
Parent may borrow up to Cost of Attendance (COA) minus other financial aid the student is receiving (loans are considered financial aid)
Borrowing up to the COA create an overpayment on the student account (Remember: COA is more than the actual bill). The overpayment may be refunded & will act as a reimbursement for educational expenses the parent may have paid to get the student to school and settled in their dorm room
Parent has option of how much to borrow. Parent may want to borrow only what they need to pay the bill

35. Loans Parent Loans and Student Loans have Fees
Actual disbursement of loan that is deducted from the student’s bill is lower than amount borrowed (by a small percent)
Student loans approximately 1.069% in fees
Parent loans approximately 4.276% in fees
Example:
Parent Loan for $5,000 with 4.276% in fees will disburse to the school in the amount of $4, ($2, per semester)
Student Loan for $3,500 with 1.069% in fees will disburse to the school in the amount of $3, ($1, per semester)

36. Parent Loan Denial
Some parents may not meet the credit criteria for the parent loan therefore the loan will be denied
Options for Parents:
Appeal the decision and request another review of Credit History if something has changed (if cleared up incorrect/negative issue on credit report)
Obtain an Endorser (someone to co-sign the loan)
Allow the loan to be denied and student borrow LIMITED AMOUNT of additional federal student loan

37. Parent Loan Denial
When a parent loan is denied, the government allows the student to borrow additional Unsubsidized Student Loan, however the amount is limited (up to $4,000/year for Freshman and Sophomores, and up to $5,000/year for Juniors and Seniors)
Student must accept the additional Unsubsidized loan award, before a school can process the additional amount

38. Private Alternative Loans
Another loan option available through a variety of lenders
Be sure to review terms & conditions of Private Alternative Loans. May have variable interest rate, require student to make monthly payments immediately, etc.
These loans are not as lenient in repayment as federal loans. They do not have repayment options like federal loans.
Students may borrow up to the Cost of Attendance minus any other financial aid they are receiving (loans are considered financial aid)

39. Private Alternative Loans
The student is the borrower of the loan
Loans are based on credit-worthiness – will likely look at income to debt ratio
Looking at your ability to repay the loan
Co-signer is usually required
These loans may have VARIABLE or Fixed interest rates
May REQUIRE interest to be paid immediately
Could have fees
Each private loan company sets the terms and conditions for the private loan program they offer

40. Private Alternative Loans
Student applies with the company and if loan is approved, the school will need to process the loan
May want to check for loan program in state
Connecticut Higher Education Supplemental Loan Authority
Currently has 4.95% Fixed Annual Rate
Must make interest payments
Up to 3% in fees
Some lenders/agencies offer loans for parents

41. Payment Plans Most schools offer a tuition payment plan
Many contract with outside vendors
May offer a 10 Month interest free plan to pay off the balance due for the year
Payments begin in June and end in March
Normally there is a fee to join (about $85 per year)
Monthly payments for 10 months

42. Payment Plans
Because these plans allow a shorter time to pay the balance, you usually have to make a higher monthly payment than you would in repaying a parent loan
Make sure you can afford the monthly payments for the payment plan before signing up

43. Scholarship Searching
Merit Scholarships
Often offered through Admissions Office rather than through Financial Aid Office
Be sure to meet Admission Application dates & submit appropriate paperwork to be considered
Scholarships for athletic ability or talent, ie band, music, etc

44. Scholarship Searching
Make sure student completes ALL forms
Some Financial Aid offices have a separate form for students to complete for scholarships
Some departments within the college or university may have their own scholarships to offer and their own process beyond the Financial Aid Office
A student should contact the department in which they are majoring or review their website to determine scholarship opportunities and the process
Some departments may offer scholarships to Freshmen, others may not consider a student for scholarships until the student “declares his or her major”

45. Scholarship Searching
Guidance Counselor’s Office
Community Service Organizations & Churches
Local businesses
Company where your Parent is Employed
Organizations in which you are involved
Bowling League
Girl Scouts, Boy Scouts, Eagle Scouts

46. Scholarship Searching
Search on your Own on the Internet
Watch for Scholarship Scams
Should not have to pay money to get FREE money
Don’t give bank account or credit card information
Finaid.org has scholarship listings categorized by unusual scholarships, average student scholarships, community service scholarships, prestigious scholarships, cancer scholarships, scholarships for Hispanic and Latino students

47. Scholarship Searching
Watch for scholarship scams!
You should not have to pay money to get FREE money
6 things to look for in detecting a scholarship scam:
“a scholarship guarantee” – No service can guarantee it will get you money.
“the service will do all the work” – No service can provide all of the personal information required, fill out essays, or supply the references a scholarship may require.
“a scholarship costs money” – Though some legitimate scholarships charge fees, be wary of charges. Applying for scholarships should NOT cost you money.
“you can only find this information here” – Scholarships, grants and awards for school are available in directories and all over the web. No one organization has a monopoly on the information
“being a finalist in a contest you never entered or randomly being selected by a national foundation to receive an award” – Most organizations only contact you after you have made an inquiry
“a service needs your credit card or checking account information” – NEVER!
“we have a high success rate” – The rate is usually based on the percent of students for whom the organization finds college scholarship matches

48. Other Resources
U.S. Department of Education, Student Aid on the Web
Select “Types of Aid”
Select “Learn More” in the “Scholarship Search” box

49. Studentaid.ed.gov

50. Net Price Calculator The Net Price Calculator
Every school in the country is required to have one
Should be within 2 clicks from the school’s homepage
Should be able to “search” on the school’s website
NPC provides and estimate of the financial aid you could receive if you were to attend that school
Focuses on the grants & scholarships you can potentially receive
Know anticipated costs before applying

51. Net Price Calculator Go to www.newhaven.edu Select “Quick Links”
Select “Net Price Calculator”
Provides an ESTIMATE of the financial aid you could receive – This is NOT an award
Some funds are limited – may see in NPC results but not on your Financial Aid Award
Try to provide accurate estimated information
Results will not be an accurate estimate if incorrect information is provided

52. Paying for College
Questions?