1. Financial Aid for College 2009
Financial Aid Presentation NCASFAA/ NCSEAA

2. Financial Aid Presentation NCASFAA/ NCSEAA
Scope of this Workshop
What is financial aid
College costs
Determination of eligibility
Need-based programs
Alternatives
How to complete a FAFSA
Financial Aid Presentation NCASFAA/ NCSEAA

3. Types of Student Financial Aid
Grants
Scholarships
Loans
Employment
Financial Aid Presentation NCASFAA/ NCSEAA

4. Financial Aid Presentation NCASFAA/ NCSEAA
Student Financial Aid
Merit-based
academics
talent
athletic
others
Need-based
financial considerations
Financial Aid Presentation NCASFAA/ NCSEAA

5. Financial Aid Presentation NCASFAA/ NCSEAA
Student Financial Aid
Need-based aid …
Family is responsible for costs to the extent of its ability to pay college costs
Provides access and choice
Annual determination of eligibility
Financial Aid Presentation NCASFAA/ NCSEAA

6. Financial Aid Presentation NCASFAA/ NCSEAA
College Costs
Direct
Indirect
Vary widely from college to college
Financial Aid Presentation NCASFAA/ NCSEAA

7. Financial Aid Presentation NCASFAA/ NCSEAA
Direct College Costs
Tuition
Required fees
Room
Meals
Books and Supplies
Financial Aid Presentation NCASFAA/ NCSEAA

8. Indirect College Costs
Transportation and miscellaneous personal expenses, including documented costs for a personal computer
Loan fees
Financial Aid Presentation NCASFAA/ NCSEAA

9. Indirect College Costs
Study abroad costs
Dependent care expenses
Disability-related expenses
Cooperative education program costs
Financial Aid Presentation NCASFAA/ NCSEAA

10. Applying for Federal Financial Aid
Free Application for Federal Student Aid (FAFSA)
Required for all types of federal aid
Use the worksheets available from high schools & financial aid offices to complete the online form.
99% of forms are filed online!
Paper forms can be obtained by calling FED-AID ( )
Complete on the Web at after January 1st, preceding the academic year
Results sent electronically to institutions listed by student on FAFSA and to the student (if you provide your address)
Financial Aid Presentation NCASFAA/ NCSEAA

11. Applying for State Financial Aid
The FAFSA is the application for most major state programs:
NC Education Lottery Scholarship
UNC Need-Based Grant
NC Community College Grant
NC Student Incentive Grant
EARN (new in )
And others
Other state programs may require additional forms. See CFNC.org for details by program.
Financial Aid Presentation NCASFAA/ NCSEAA

12. Applying for Financial Aid
Other forms ???
Institutional application
College Scholarship Service PROFILE
State applications
Outside scholarship applications
Financial Aid Presentation NCASFAA/ NCSEAA

13. Financial Aid Presentation NCASFAA/ NCSEAA
Need Help? FAFSA Day 2009
Saturday, February 21, 2009
Any time between 9 a.m. and noon
Get FREE help completing your FAFSA online from college financial aid officers.
Check CFNC.org/fafsaday or school counselor for closest location.
Register toll-free, CFNC or online at CFNC.org/fafsaday
Sponsored by College Foundation of North Carolina and the North Carolina Association of Student Financial Aid Administrators.
Financial Aid Presentation NCASFAA/ NCSEAA

14. Offers to help get aid are everywhere:
In the mail
Over the Internet
In newspapers
In magazines
Over the phone
Financial Aid Presentation NCASFAA/ NCSEAA

15. Financial Aid Presentation NCASFAA/ NCSEAA
Offers may be:
Legitimate offers of information and assistance
Example: CFNC.org and FAFSA Day
Misleading offers from individuals or companies trying to make money off of unsuspecting parents and students
Financial Aid Presentation NCASFAA/ NCSEAA

16. How do you identify offers that should be avoided?
Organizations that say they can help you 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
Financial Aid Presentation NCASFAA/ NCSEAA

17. Financial Aid Presentation NCASFAA/ NCSEAA
Potential “Scams”
“The scholarship is guaranteed or your money back.”
No one can guarantee your scholarship before it is awarded.
“Come to our free seminar and we’ll show you how to get more financial aid.”
This is a sales pitch. Don’t pay for information that you can get elsewhere for free.
Financial Aid Presentation NCASFAA/ NCSEAA

18. Other Misleading Offers
“The scholarship requires a small fee.” Never pay a fee to get a scholarship.
“You are a finalist” for an award you never applied for.
If you did not apply, it is not a
legitimate offer.
“You can’t get this information anywhere else.”
Everyone has access to the same information.
Financial Aid Presentation NCASFAA/ NCSEAA

19. Where can you find truly free information about financial aid?
Contact College Foundation of North Carolina at CFNC.org or toll free at CFNC
Service of the State of North Carolina
Talk to the financial aid administrator at the college of choice
Ask your high school counselor or visit the local library
Apply for federal financial aid at FAFSA.ed.gov
(notice it is not FAFSA.com!)
Financial Aid Presentation NCASFAA/ NCSEAA

20. Financial Aid Presentation NCASFAA/ NCSEAA
Remember!
You should never have to pay:
For information about college financial aid
To apply for federal financial aid (FAFSA)
To receive financial aid for college
Financial Aid Presentation NCASFAA/ NCSEAA

21. Applying for Financial Aid
Meet earliest deadline of colleges in which you are interested
Complete all questions accurately
Estimate if necessary to meet early deadlines
Don’t wait until you are admitted to file the FAFSA
Keep a photocopy of all documents for your records
Financial Aid Presentation NCASFAA/ NCSEAA

22. Applying for Financial Aid
Additional documentation may be required… for VERIFICATION of information
Tax returns
Untaxed income (Social Security, Child support, other)
Family size
Family members attending college
Other...
Financial Aid Presentation NCASFAA/ NCSEAA

23. Determination of Expected Family Contribution
Parents’ Contribution
Student’s Contribution
= Expected Family Contribution (EFC) +
Financial Aid Presentation NCASFAA/ NCSEAA

24. Determination of Parents’ Contribution
Parents’ total income for calendar year
(Taxable + Non-taxable)
- Federal Tax Paid (not withheld)
- State Tax Paid
- Social Security Withholding
- Living Allowance
- Child Support paid by parents
- Employment allowance
= Available Parent Income
Financial Aid Presentation NCASFAA/ NCSEAA

25. Determination of Parents’ Contribution
Total net assets (excluding home equity and
retirement accounts)
Protection allowance (varies by age of parent)
Net Worth
x 12% - =
Amount of assets used in determining EFC =
Financial Aid Presentation NCASFAA/ NCSEAA

26. Determination of Parents’ Contribution
Available Income
Asset Contribution
Adjusted Available Income
Percentage
Parent Contribution
Parent contribution will be divided by the number of family members in college, not including parents. + = x =
Financial Aid Presentation NCASFAA/ NCSEAA

27. Determination of Student’s Contribution
Student’s total income for calendar year (taxable and non-taxable)
- Federal tax paid (not amount withheld)
- State tax paid
- Social Security withholding
- Income protection allowance ($3,750)
= Student’s Available Income
x 50%
= Student’s Contribution from Income
Financial Aid Presentation NCASFAA/ NCSEAA

28. Determination of Student’s Contribution
Total net assets
20%
= Student’s Contribution from assets x
Financial Aid Presentation NCASFAA/ NCSEAA

29. Determination of Student’s Contribution
Student contribution from income
Student contribution from assets
= Total Student Contribution
Financial Aid Presentation NCASFAA/ NCSEAA

30. Financial Aid Presentation NCASFAA/ NCSEAA
Determination of EFC
Parents’ contribution
+ Student’s contribution
= Expected Family Contribution
Financial Aid Presentation NCASFAA/ NCSEAA

31. Financial Aid Presentation NCASFAA/ NCSEAA
Basic Formula for Aid
Cost of Attendance
Expected Family Contribution
Eligibility for Need-Based Funds - =
Financial Aid Presentation NCASFAA/ NCSEAA

32. Potential Institutional Adjustments to EFC for Institutional Funds
Establishment of a minimum level of student contribution
Use of home equity in determination of net assets
Adjustments for medical/dental expenses
Adjustments in the losses/depreciation claimed for business/farm operations
Financial Aid Presentation NCASFAA/ NCSEAA

33. Special Circumstances
Significant change in your family…
Unemployment of a parent
Death in the family
Change in parents’ marital status
Medical expenses not covered by insurance
Student cannot obtain parent information
Notify the financial aid office at your college of any special circumstances. Be prepared to provide documentation of any change, including the financial impact of the change.
Financial Aid Presentation NCASFAA/ NCSEAA

34. Sources of Financial Aid
Federal Government
State Programs
Institutional funds
Outside agencies
Financial Aid Presentation NCASFAA/ NCSEAA

35. Financial Aid Presentation NCASFAA/ NCSEAA
Types of Financial Aid
Gift
Scholarships
Grants
Self-help
Loans
Employment
Financial Aid Presentation NCASFAA/ NCSEAA

36. Financial Aid Presentation NCASFAA/ NCSEAA
Federal Aid Programs
Federal Pell Grant
Academic Competitiveness Grant
National SMART Grant
Federal Supplemental Educational Opportunity Grant
Federal Work-Study
Federal TEACH Grant (loan)
Federal Perkins Loan
Federal Stafford Loan
Federal Ford Direct Loan
Financial Aid Presentation NCASFAA/ NCSEAA

37. North Carolina Aid Programs (partial listing)
NC Student Incentive Grant
NC Legislative Tuition Grant
NC State Contractual Scholarship
NC Community College Grants
NC Education Lottery Scholarship
Education Access Rewards NC (EARN) (new )
UNC Need-Based Grants
Nurse Scholarships/Loans
Teacher Scholarships/Loans
Financial Aid Presentation NCASFAA/ NCSEAA

38. NC Reach (program for foster youth)
New funding for college students who :
Will/have age out of NC public foster care at age 18
Were adopted from foster care after age 12
Eligibility requirements
Age 18 – 25 and meet above criteria
Enroll at NC Community College or one of UNC System’s 16 campuses
Enroll on half-time basis or more
Pursue undergraduate degree/certificate /diploma
Program is designed to be combined with other aid and cover the full cost of attendance
Applications and additional information
Financial Aid Presentation NCASFAA/ NCSEAA

39. Institutional and Outside Aid
Institutional Aid
Grants & Scholarships
Loan Programs
Student Employment
Outside Agencies
Local organizations
Churches
Civic Groups
Parents’ employers
Veterans
Administration
Vocational Rehabilitation Services
Financial Aid Presentation NCASFAA/ NCSEAA

40. Financial Aid Presentation NCASFAA/ NCSEAA
Is that all there is?
Federal Unsubsidized Loans
(Stafford or Direct)
Federal PLUS Loans for parents of dependent students and for graduate or professional students
Financial Aid Presentation NCASFAA/ NCSEAA

41. Financial Aid Presentation NCASFAA/ NCSEAA
Is that all there is?
Private Alternative Loans for students or parents
Last resort--Always apply for federal loans first!
College Payment Plans
Outside Scholarships
Tax credits--Hope and
Lifetime Learning
Financial Aid Presentation NCASFAA/ NCSEAA

42. Tax Credits - Hope Tax Credit
Available for the first two years of college
Applies to tuition and required fees only.
Up to $1800 tax credit---better than a deduction since it comes directly off taxes owed.
Can claim 100% of first $1200 expenses and 50% of the next $1200.
Examples:
If you paid tuition of $5000 in 2008, you will be able to claim $1800 on the tax return completed in early 2009.
If you paid tuition of $1200, you will be able to claim only $1200.
If you paid tuition of $1800, you can claim $1500 (all of the first $1200, and 1/2 of the remaining $600…which is $300).
Financial Aid Presentation NCASFAA/ NCSEAA

43. Tax Credits - Lifetime Learning
Available for all years
Can claim for remaining undergraduate years and graduate study as well as professional development classes.
Can claim credit for 20% of tuition & fees, up to maximum of $2,000.
Income restrictions on who can claim Lifetime and Hope Tax Credits ….. Consult with your tax advisor!
Financial Aid Presentation NCASFAA/ NCSEAA

44. IRS Deductions and Credits for 2008
Certain taxpayers will qualify to take a tax deduction for tuition and fees (even if they don’t itemize).
Deductions of up to $4000/year.
Families with adjusted gross incomes up to $80,000 (single filers) & $160,000 (joint filers) can claim credit.
Cannot claim Hope or Lifetime Learning credit in the same year as deduction for same student.
Check with tax preparer to see if you qualify!
Financial Aid Presentation NCASFAA/ NCSEAA

45. Additional Information
College Foundation of North Carolina
The Student Guide
Published by US Department of Education
Student Financial Aid for North Carolinians
Publications in local libraries
Financial Aid Presentation NCASFAA/ NCSEAA

46. Financial Aid Presentation NCASFAA/ NCSEAA
Summary
Lots of aid available from federal and state governments
Get a PIN now!
Student and parent must each have a PIN
Complete forms by deadlines
Use to complete, sign and submit application.
Financial Aid Presentation NCASFAA/ NCSEAA

47. Financial Aid Presentation NCASFAA/ NCSEAA
Summary
Respond promptly to colleges if additional information requested
Tax returns or other information
College will notify via , Web or mail of aid eligibility
Student should follow colleges’ instructions to accept or decline aid offered.
Financial Aid Presentation NCASFAA/ NCSEAA

48. Financial Aid Presentation NCASFAA/ NCSEAA
Questions?
Financial Aid Presentation NCASFAA/ NCSEAA