Seton Hall University. Where Leaders Learn. Financial Aid 101

Transcription

1 Financial Aid 101

2 Q: What is Financial aid? A: Any form of monetary assistance that helps pay for college This includes, scholarships, need-based grants, loans, work-study, etc. It is not just gift aid.

3 How do you apply? FAFSA gov t form used by all. It is free Recommend apply online at built in edit checks, skip logic & on-line tracking PIN will act as signature for parents & students get PIN at Must wait until Jan 1 to apply on-line. Recommend early Feb after taxes filed Schools may have deadline, meeting deadline impt for eligibility. SHU recommends March 1

4 What info goes on the FAFSA? Biographical info, citizenship, marital status, tax return info, income, number in household, drug convictions, etc. Selective service registration Seton Hall University Info is needed for student and parent If parents are divorced provide info for parent you live with more than 50% of the time. If they are remarried, your step parent info must be included as well

5 FAFSA Tools FAFSA on Web worksheet - good way to start and get an idea of FAFSA. Actual FAFSA is longer. Get from just search for FAFSA worksheet Have questions call fed-aid, they ll help you fill it out. Don t pay someone to file for you Recommend using IRS data retrieval tool pulls data from IRS, ensures accuracy & expedites process. Must have field your taxes already. IRS data may lag 2-3 weeks

6 FAFSA tips & FAQs Enter SSN & Name exactly as they appear on your SS card. Do not leave questions blank If parent has no SSN fill in all 000s Don t use commas or decimal points, always round to the nearest dollar. Enter income from your tax returns not your W-2 Parents do not have to be U.S. citizen or eligible non-citizen to qualify, only the student needs to be You can list up to 10 colleges on your FAFSA Other Tips come get handout

7 CSS Profile Used by some Private schools. only complete if the school requires Complete on-line at the Requires more detailed info than the FAFSA, i.e. debt, home equity, etc. Used by schools to determine institutional aid. Does not impact gov t aid. Fee is $9, plus $16 per school It should take minutes Seton Hall University

8 CSS Profile It is okay to estimate and may have to as usually complete early All parent info is in green & white & other info is in blue & white Don t use the back button when navigating Don t leave any number fields blank, put 0s instead You must still file the FAFSA, if you want loans or govt aid Need Help? Interactive tips & instructions on college board website

9 What happens after you file the FAFSA? Government takes about 2 weeks to process your FAFSA. Once the FAFSA is processed you will receive a SAR (Student Aid Report) Your SAR is ed to you if you provided an address or available at with your PIN Once you receive SAR carefully review for accuracy. Correct any errors on-line. Also update estimates on-line once they become actual. Your FAFSA results will also be sent to your state financial aid agency and the schools you listed on the FAFSA.

10 FAFSA Results The most important piece of information the FAFSA provides is the EFC (expected or estimated family contribution). The EFC is the amount they estimate you can contribute to your child s education. I like to say it is what the government thinks you can pay for college Want an early estimate of your EFC, go to finaid.org or search for FAFSA4caster on

11 The Importance of EFC Your EFC will determine your eligibility for need-based aid from the federal government, the state, and most likely all colleges. EFC determines your financial need, using this basic formula. Cost of Attendance - EFC.. = Financial Need Your EFC is always the same regardless of where you go to college

12 Q: What is Cost of Attendance (COA)? A: It is all Direct & Indirect Costs Direct costs: (Billed items) Tuition Fees Room & Board (if the student lives on campus) Indirect costs: (Unbilled items) Transportation Books & supplies Room & Board (if the student lives at home)

13 Types of Aid 1. Gift aid you don t need to pay back Grants & scholarships Need-based or non-need based, i.e. merit-based 2. Self Help Aid Loans Work Study Seton Hall University

14 Need-based Grants (gift aid) Your EFC only dictates your eligibility for need-based aid. Need-based aid is available from: Federal Government Pell reserved for neediest students usually with EFC about $5,000 or less. Awards range from $600-$5,700. Amount will be the same at all schools. SEOG grants availability varies by school, reserved for neediest & minimal awards, usually $2,400 State Government NJ TAG Awards range form $2,000- $12,000 use variation of EFC. Have to stay in state to receive grant. Only for NJ residents. HESAA will send SEN, read carefully and answer additional FAFSA questions. Award amounts will vary based on type of school Colleges eligibility & amounts vary Seton Hall University

15 Scholarships & Non- Need- Based Gift Aid Awarded on basis of skill, merit, talent, etc. Scholarships from schools to which you are applying check their websites Fastweb.com, finaid.org, collegeboard.com Check with local organizations like Knights of Columbus, Lions Club, Rotary, your church, etc. Parent s employers Seton Hall University

16 Self Help Aid Work-study Student gets job on campus Works prescribed hours gets pay check from school, not deducted from bill. Not counted as income on FAFSA as opposed to working at the Mall Work- study jobs help students make friends and stay connected to campus. Many jobs usually available even without FWSP

17 Stafford Loan Guaranteed as a result of filing the FAFSA, no credit check, fed gov is lender. In student s name. Payback 6 months after graduate (or drop below ½ time). 10 year repayment period Principle deferred until graduation Subsidized loan interest deferred until repayment begins. Unsubsidized interest capitalizes unless you start repaying while in school Sub or unsub determined by remaining need, except that $2,000 is always unsub. Currently fixed interest rate of about 3.5% Set amounts Fr - $5,500, Soph -$6,500, Jrs. & Sr. $7,500

18 Parent Plus Loan Loan in Parent s name, credit check involved, federal gov is lender. Must have FAFSA on file & also apply on Max you can borrow is COA all gift aid and student loans (if you take them). Repayment begins while student is in school, usually Nov of 1 st year. Repayment is over 10 years (can extend to 20). Current interest is about 6.4% fixed. If parent is denied a PLUS loan student can get $4,000 additional unsub Stafford. Parents can also explore home equity loans or alternative loans from any other lenders. Visit elmselect.com

19 So Now What Happens? Schools will take results of FAFSA & put together a package indicating their total cost of attendance and all your aid, scholarships, need-based grants, loans, work-study, etc. Usually send package in March-April This is when you see bottom line. Also called the net cost. Total Cost all gift aid = net cost Seton Hall University

20 Compare the Bottom Line (Net Cost) It is important to compare the bottom line (net cost) from all schools, so you can compare. Creating a spreadsheet will help School A School B School C Total Cost $35,000 $19,000 $42,000 Scholarships -$12,000 -$4,000 -$21,000 Pell $0 $0 $0 TAG -$4,000 -$2,000 -$7,000 School need aid -$2,500 -$1,000 -$3,000 Net Cost $16,500 $12,000 $11,000 Biggest mistake ruling out schools at outset due to cost wait to compare net cost. Cost calculators provide good early estimate. All schools have them on their website.

21 Quick Quiz Win a Prize! 1. What is Financial Aid? 2. What is the Total Cost of Education? 3. What do all students receive as a result of filing the FAFSA? 4. How much should you pay to file the FAFSA? 5. After you get your financial aid packages from all schools, what should you compare?

22 Questions