Crystal Bonds, Principal HSMSE FINANCIAL AID PRESENTATION Presented by: Wade A. Klein HSMSE Director of College Services & School Counselor
Overview Overview of the Financial Aid Process Steps to Submitting the FAFSA form Steps to Submitting the CSS Profile Checklists How to Research Scholarships Tips & Strategies to Maximize Your Financial Aid Awards How to Analyze a Financial Award Packages
What is financial aid? Definition: Financial aid is money given to students to help pay for college. There are four types of financial aid: 1. Scholarships (Free Money) 2. Grants (Free Money) 3. Employment Programs 4. Educational Loans
Scholarships Free Money: This is money that does not have to be repaid. Scholarships may be based on: financial need, academic achievement athletic ability special skills membership to a particular racial/ethnic group. Scholarships are usually granted by governments, governmental agencies, organizations, corporations, colleges, etc.
Grants Free Money: This is money that does not have to be repaid Grants are primarily awarded based on financial need or academic achievement A. Federal Pell Grants Recipients must be U.S. citizens or eligible non-citizens. This money is awarded based on entitlement. The maximum EFC (not income) to be eligible to receive a Pell Grant is $5,237 Amounts change yearly. The maximum award for the 2014-2015 year is $5,550
Grants B. Federal Supplemental Educational Opportunity Grant (FSEOG) Recipients must be U.S. citizens or eligible non-citizens This money is NOT awarded on the basis of entitlement. Funding is limited and NOT guaranteed, even if you are eligible. Money is awarded on a first come, first serve basis. APPLY EARLY! Colleges receive a limited amount of money to spend from the government. Awards vary by college and are usually between $100 and $4,000 a year. Variables depend on: 1. When you apply 2. Your level of financial need 3. The funding level and policies of your college
Grants C. Check special grant and scholarship programs for: Native Americans Disabled Students Children of: Parents currently serving in the armed forces Parents who died in action in Iraq or Afghanistan Veterans Police Officers Fire Fighters Victims of September 11, 2001
Employment Programs Programs that enable students to work to help pay for or reduce school costs A. Federal Work-Study Funding is limited and NOT guaranteed, even if you are eligible. Money is awarded on a first come, first serve basis. APPLY EARLY! Colleges will coordinate the program Many work-study programs only pay minimum wage and place a cap on earnings. You may decline a work-study placement if you find an offcampus job that pays more money Remember- you do not want a job interfering with your studies! B. Co-op Programs Provides course credit as wages Sponsored by the college
Educational Loans Loans are money lent to students and/or to their families Loans MUST be repaid To apply for loans, please visit: www.studentloans.gov www.myedaccount.com
Educational Loans (continued) A. Federal Perkins Loan This is a low, fixed-rate loan offered by the college. Fixed rate means that the rate of interest on the loan stays the same (fixed=cannot change) for the life of the loan (until the loan is repaid in full) Perkins loans are issued to students, not parents (Loans issued to parents: Federal Parent Plus Loan Program) Eligibility is based on financial need and on a first come, first serve basis. Students may borrow up to $5,500 per year. However, this amount may be lower because the college determines the amount Students may borrow up to $27,500 for their entire undergraduate education. However, this amount may be lower because the college determines the amount Repayment is deferred (postponed usually until nine months after graduation), and then a 5% interest rate is placed on the loan
Educational Loans B. Subsidized Federal Direct Stafford Loan Subsidized means the government pays the interest on this loan while the student remains in school (and usually six to nine months after graduation) Fixed interest rate. This means that the rate of interest on the loan will remain the same throughout the life of the loan. The rate for loans disbursed for the academic year 2015-2016 will be 6.8% Eligibility is based on financial need The student borrows the money; parents are not responsible to pay back the loan The lender is the US Department of Education - William D. Ford Direct Loan Service Center Direct loan means that no bank or credit institution is involved. The loan is issued directly from the US Department of Education. However, the actual money is disbursed to the borrower through the college he or she is attending.
Educational Loans B. Subsidized Federal Direct Stafford Loan If you are a dependent, undergraduate student you can borrow annually up to: $3,500 if you're a first-year student enrolled in a program of study that is at least a full academic year $4,500 if you've completed your first year of study and the remainder of your program is at least a full academic year $5,500 if you've completed two years of study and the remainder of your program is at least a full academic year $23,000 total for your entire undergraduate education
Educational Loans (continued) C. Unsubsidized Federal Direct Stafford Loan Same interest rate as the subsidized Stafford Loan, but the eligibility is not based on need Repayment is deferred while in school and up until six months after graduation, but interest accrues and is added to the principal amount (amount you borrowed). This means that you don t have to pay the principal or interest while you re in school and up to six months after you graduate from college. The interest rate is fixed at 6.8% The rules that apply to the subsidized loan also apply to the unsubsidized loan. The lender is the US Department of Education - William D. Ford Direct Loan Service Center.
Educational Loans (continued) C. Unsubsidized Federal Direct Stafford Loan If you are a dependent, undergraduate student you can borrow annually up to: $5,500 if you're a first-year student enrolled in a program of study that is at least a full academic year $6,500 if you've completed your first year of study and the remainder of your program is at least a full academic year $7,500 if you've completed two years of study and the remainder of your program is at least a full academic year $30,000 total for your entire undergraduate education
Educational Loans (continued) D. Subsidized and Unsubsidized Stafford Loans (FFEL Program) Not Direct Stafford Loans) See above information for Direct Stafford Loans. FFEL Program: these are Stafford loans in which a bank or credit institution (i.e. Citibank) is the lender The interest rate is fixed at 8.5%
Educational Loans (continued) E. Federal Parent Plus Loan Program Variable rate loan for parents of dependent students who are enrolled in college The current interest rate is 6.41% for a direct loan from the government and 8.5% for a FFEL loan (Federal Family Education Loan- private institution or bank) Parents may borrow up to the cost of education Parents may borrow the amount of money that is not met by financial aid or student loans If parents do not qualify for the Parent Plus Loan, their children may apply for a supplemental loan If parents do not qualify for a Parent Plus Loan, dependent students may borrow up to the Stafford independent students loan amount
What is the Cost of Attendance? The Cost of Attendance (COA) is the amount of money a family can expect to spend to send their child to one year of college. These costs may include: Tuition and fees Room and board Books and supplies Transportation and travel expenses Miscellaneous expenses (pizza, toothpaste, fun)
What is the Cost of Attendance? Billable (direct costs) vs. Non-Billable (indirect costs) Tuition and fees Room and board Books and supplies Transportation & travel expenses Miscellaneous expenses (pizza, toothpaste, fun) Billable Billable Indirect Indirect Indirect
What is the EFC (Expected Family Contribution)? The EFC is the amount of money which the family is expected to contribute to a student s education for that year Your EFC is calculated according to a federal formula EFC is determined by: Income (taxable and untaxed) Assets and benefits (for example, unemployment or Social Security) Family size Number of family members who will be attending college or career school are also considered. Determine your EFC by using an EFC Calculator: http://www.collegeboard.org/ http://www.finaid.org/
What is Financial Need? Financial Need is the amount of money a family needs to finance their child s or children s education. This amount is derived by subtracting the EFC from the Cost of Attendance (COA). COA is the total amount it will cost you to attend school, usually expressed as a yearly figure. The COA is determined using rules established by law. The COA includes tuition and fees; on-campus room and board (or a housing and food allowance for off-campus students); and allowances for books, supplies, transportation, loan fees, everyday items, and if applicable, dependent care. Cost of Attendance (COA) - Expected Family Contribution (EFC) = Financial Need
What is Financial Need? Cost of Attendance (COA) - Expected Family Contribution (EFC) Financial Need
Who May Receive Federal Student Aid? U.S. citizen or permanent resident High school graduate/ged holder Eligible degree/certificate program Valid Social Security number Males registered for Selective Service Satisfactory academic progress
What is the FAFSA? FAFSA (Free Application for Federal Student Aid) is the primary form that helps colleges determine the types and amount of financial aid you re eligible to receive through federal, state and college sources If granted aid, you ll receive award letters from those schools to which you have applied indicating the type and amount of financial aid for which you qualify. Carefully review before you make a final decision You MUST submit a copy of all award letters to the counseling office. In most cases you will receive these letters in March and April
What do I need to start the FAFSA? Apply for a Personal Identification Number (PIN) online at www.pin.ed.gov for both you and your custodial guardian Your parent or guardian will need an email address to receive their PIN. If they do not have one, or if it is easier for you to receive it, create an email account in their name Use the FAFSA on the Web Worksheet (English and Español) or the paper version of the FAFSA as a worksheet for the online application Write your name on the FAFSA, exactly how it appears on your Social Security Card Begin compiling your 2014 income tax information in January
What do I need to start the FAFSA? You may also use paycheck stubs, disability claim check stubs, food stamp information, and public assistance information to estimate your 2014 income If you cannot start compiling 2014 tax figures, use your 2013 tax forms to estimate your income and tax liability for 2014! You will be able to update this information later using the SAR (Student Aid Report,) but it is crucial to submit the FAFSA as early as possible! If your family had a recent significant loss of income, be prepared to support this claim with documentation. Please see Mr. Klein if you have any questions regarding this matter
What else should I know about the FAFSA? The FAFSA only has space to send the information to 10 schools (make sure at least one of them is in New York State!) If you applied to more than ten schools, use the Student Aid Report (SAR) to list the other colleges to which you have applied Once the FAFSA has been processed, you may also erase the original schools to which you applied and type in the names of additional colleges This will not delete the submission of your original schools New York residents: list at least one school from New York State to initiate the process to receive state aid (TAP Tuition Assistance Program)
What else should I know about the FAFSA? You may want to list the schools alphabetically. Some colleges may assume that the way you list your colleges is in order of preference, and may not be as generous with your financial aid package if they doubt the seriousness of your application (i.e. Muhlenberg) On your original form, apply to one in-state school to generate state aid. (Apply to at least one college in New York State to access the TAP application (HESC.com) Do Not Use the paper FAFSA!
When do I complete the FAFSA? The suggested deadline to file the FAFSA is February 1, 2015. Correct or update information with actual 2013 figures (from tax forms) on the SAR report and return it to the college of your first choice Your SAR will contain your EFC (Expected Family Contribution). Follow specific instructions for the financial aid award letters that you receive from the colleges
New York State Aid TAP (Tuition Assistance Program) - https://www.tapweb.org/totw/ How to Apply: A TAP application will be automatically generated by listing at least one college in New York State on the FAFSA application After you confirm the FAFSA submission, you may file the electronic TAP Application online by clicking on the New York State resident link and completing the TAP on the Web application. The TAP deadline is February 30, 2015! After successful completion of the TAP application, you will receive an email message alerting you to check the status of your application. Processing may take up to 10 business days. You will not receive an email message until your electronic application is processed If you missed the direct link from the FAFSA form you must wait 3 to 4 business days for HESC to receive and process your completed FAFSA information. After successful transmission of your FAFSA information, you will receive an email message directing you to the HESC Website to complete the TAP on the Web (TOTW) Application
New York State Aid TAP (Tuition Assistance Program) - https://www.tapweb.org/totw/ The maximum annual TAP award for 2015-2016 is $5,165. The maximum household income to receive a TAP award is $80,000 The TAP award is allocated to the first New York State college that you listed on the FAFSA. If you are attending another college in New York State, you will have to contact HESC to have your TAP award transferred to your attending college
How to Complete and Submit the Online FAFSA form?
You Tube How to Fill Out the FAFSA
What does actual application look like? Dependent Student with Parental Data 35
College Academic Year
These fields are prefilled based on FAFSA respon ses
You Tube After the FAFSA: What Happens Next
What are Institutional Financial Aid Forms? Some institutions require you to submit financial aid forms that are specific to only their schools Inquire with the financial aid office to make sure you submit all the required documentation Failing to submit all the correct documents may prevent you from receiving financial aid!
What is the CSS Profile? The CSS Profile is a financial aid application service of the College Board Exclusively for many private colleges, larger public universities and scholarship organizations Why? To determine institutional financial aid (college own funds, endowments) (The FAFSA and TAP determine Federal and New York State Aid) For a list of private college and scholarships that require the CSS Profile please visit: https://profileonline.collegeboard.com/prf/pxremotepartinstitutionservlet/pxremotepartinstitutio nservlet.srv The Student Guide (2014-2015) is available at: https://profileonline.collegeboard.org/prf/vignetteservlet/vignetteservlet.srv?relativepath=/profile /pdfs/1314_profile_regist_guide.pdf Seleccione aquípara ver 2014-15 La Guía del Estudiante. http://professionals.collegeboard.com/profdownload/profile_student_guide-spanish.pdf
How Do I Register for the CSS Profile? Click on the link for the year that you will be attending college (not the current year of when you are submitting the registration)(2015-2016) Click this link: http://student.collegeboard.org/css-financial-aid-profile There are two parts to the CSS Profile: 1. Registration form (which is sent to each college that requires the CSS Profile) 2. Individual questions that are specific to each school. (Not every schools will require the same information) Cost: $25 to register and send the information to the first school $16: Submit the CSS Profile to each additional school Fee waivers: The CSS Profile will automatically waive the fee for eligible students based on the information that they submit Some institutions that accept the CSS Profile will require you to submit document and information electronically through another College Board service, IDOC (Institutional Documentation Service).
Scholarship Search Engines: College Board Fastweb.com Scholarships.com Zinch.com CareerInfoNet.org CollegeNET.org ScholarshipMonkey.com Colleges: Scholarships Merit (Look at less competitive colleges ) Academic Interest Just Ask
Local Scholarships Unions Local Religious, Civil Organizations, Ethnic Centers, Local Resources & Businesses Check out local and neighborhood papers Just Ask Average award through searching: $2,000 $2000 not even worth my time! Or is it $2000 = 200 hours of Work Study = 2.5 hours/week
Tips & Strategies File early Colleges may reduce institutional aid if student receives outside scholarship Colleges may use 20% of student savings; 5.65% of parental savingsinvest savings and other assets in retirement accounts but taxes and penalties Scams: Never pay for the FAFSA and Financial Aid completion; financial advice from a CPA or CFP is different. Don t Lie! However, inform Financial Aid Administrators of circumstances Negotiate financial aid packages like buying a car Students may refuse Work-study if they find a higher paying job
Tips & Strategies Negotiate financial aid packages like buying a car Students may refuse Work-study if they find a higher paying job Review Financial Aid award packages carefully- difficult deciphering Beware of Front-Loading grants and scholarships Beware of gaps Beware of packaging non-need baseed
How to Analyze Financial Aid Award Packages from Colleges
Contact: Wade Klein 212-281-6490 ext. 5240 wklein@hsmse.org