College Financial Aid Night MORGAN A. KELLY ASSOCIATE DIRECTOR STUDENT FINANCIAL ASSISTANCE SACRED HEART UNIVERSITY

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1 College Financial Aid Night MORGAN A. KELLY ASSOCIATE DIRECTOR STUDENT FINANCIAL ASSISTANCE SACRED HEART UNIVERSITY

2 Tonight s Agenda Sources and Types of Financial Aid Application Process Determining Eligibility Thoughts and Tips

3 Types of Financial Aid Grants Scholarships Work-Study Programs Many organizations do not exhaust scholarships every year because students do not apply for them! Loans

4 Begin at the Beginning Check with College and Universities to see what Financial Aid Applications are required. Check financial aid deadline dates with Colleges and Universities. Submit required information at least two weeks before earliest deadline. For example; February 15 th Deadline -- Submit Information by February 1 st.

5 Application Process Free Application for Federal Student Aid (FAFSA) Required for all types of aid Profile Application (CSS Profile) Used primarily by private colleges. Institutional Applications Check school publications and websites

6 Federal Student Aid PIN Apply for PIN Change PIN Change PIN Information For students and parents Used for FAFSA application Used for student and parent loans

7 Federal Application Process The FAFSA is: Required by all schools administering Federal Student Aid Data collection vehicle that supports Federal Methodology (FM) Cannot be submitted until after January 1, but get organized as soon as possible

8 Federal Application Process After submitting the FAFSA: Review the Student Aid Report Make corrections, if necessary All filers may access SAR and make changes online If selected for review, a message will be present. You may have to submit tax transcripts and/or other forms for verification purposes to the school. Schools receive the applicant data electronically Schools may offer tentative award based on current information Schools now or later- may verify or adjust information

9 CSS Profile Application Process The College Board CSS Profile collects more comprehensive family and financial information Supports Institutional Methodology (IM) Allows schools to receive information earlier in the cycle College and programs rely on Profile data to award nonfederal funds Remember to check for other institution specific forms!

10 What s Next Determining Eligibility Cost of Attendance - EFC Financial Need

11 The Cost of Education Direct Costs Tuition and required fees Room and board for resident students Indirect Costs Books and supplies Transportation to and from campus Miscellaneous personal expenses Direct Costs Indirect Costs Total Cost of Education

12 What is the Expected Family Contribution EFC? The EFC is a measure of capacity over time to absorb educational costs Not a dollar amount expected from current income or assets Not an estimate of extra cash available Schools use the EFC (Federal and/or Institutional) and cost of education to put together a package of financial assistance. The EFC is subject to school verification and adjustments.

13 Elements of Need Analysis The Financial Aid Funnel Uses both parent and student information (dependent students) # in family Income Parent s income is the major determinant FAFSA # in college FM EFC Uses standard income and asset protections allowance Parents assets range from 2% to 6% of total Students assets range from 25% to 35% of total Federal Methodology (FM) does not consider Home Equity or Qualified Retirement Assets

14 Elements of Need Analysis Profile The Financial Aid Funnel Home Equity Allowances Medical Institutional Methodology (IM) treats income and assets differently than FM Typically uses home equity Protection for emergencies Protection for college savings May allow for medical expenses Institutional options! IM EFC It is OK to estimate!

15 Eligibility for Financial Aid 4 Year Private 4 Year Public Total Cost $34,000 $14,000 - FM EFC $10,000 $10,000 = Eligibility $24,000 $4,000

16 Need-Based vs. Merit Based Need-based aid is dependent on a family s EFC. Meritbased aid is award considering achievement, talent, participation. not a family s EFC. Need- Based Aid Merit- Based Aid Pell Grant Academic Achievement Work Study Athletic Achievement

17 The Financial Aid Package Total Cost = $34,000 Total Cost = $34,000 College Grant: $17,000 Work: $2,000 Loan: $5,000 Unmet Need: $4,000 College Grant: $13,000 Work $2,000 Loan: $5,000 EFC: $10,000 EFC: $10,000

18 The Financial Aid Package Total Cost = $34,000 Total Cost = $34,000 College Grant: $17,000 Actual Cost after Merit: $7,000 Work: $2,000 Academic: $12,000 Loan: $5,000 EFC: $10,000 Athletic: $15,000

19 Questions to ask and not assume! How do outside awards affect the aid package? What is the school s policy on non-custodial parents? What is the average student debt level? Are the scholarships/grants renewable each year? How might awards change in future years? What happens if financial circumstances change?

20 Thoughts and Tips Many factors involved in the awarding of aid which results in very different financial aid packages from different schools. Understand award letters ask questions! The best deal is not always the best fit! Look at all financing options start with those offered by the college at which the student enrolls. Consider a financial safety school. Financing plans should cover 4 years.

21 Where There s The Web, There s a Way Consumer tips for parents and students as well as financial aid tools for completing required applications. Financial Aid Information Page. Lists a variety of financial aid information, including family contribution calculators. FASTWEB, Free scholarship search. Scholarships, Free search FAFSA info and publications American Savings Foundation Federal Trade Commission: Information on scholarship scams and how to avoid them.

22 Where There s The Web, There s a Way A site designed by the U.S. Department of Education in collaboration with students to help students make the dream of college a reality. The agency of the federal government that establishes policy for, administers, and coordinates most federal assistance to education. The Connecticut State Higher Education website for state financial aid programs and links to Connecticut colleges and universities. The Connecticut Higher Education Supplemental Loan Authority. Provider of the Connecticut Family Education Loan Program (CHESLA). Use the College Board s College Financing Calculators to help you figure out how to pay for college.