Understanding the Financial Aid Process. College Funding Services Website: ineedfinancialaid.com...

Understanding the Financial Aid ProcessUnderstanding the

Financial Aid Process

College Funding ServicesCollege Funding Services

Website: ineedfinancialaid.com

Toll Free: 844-CFS4AID (237-4243)

General: info@ineedfinancialaid.com

Website: ineedfinancialaid.com

Toll Free: 844-CFS4AID (237-4243)

General: info@ineedfinancialaid.com

How Do They Determine If I’m Eligible?

How Do They Determine If I’m Eligible?

COA – EFC = NEEDCOA = Cost of Attendance

(Includes tuition, books, room/board, etc.)

EFC = Expected Family Contribution(Based on parent and student income, assets, age, number of students in school, etc.)

Need = Amount of aid the family is eligible

COA – EFC = NEEDCOA = Cost of Attendance

(Includes tuition, books, room/board, etc.)

EFC = Expected Family Contribution(Based on parent and student income, assets, age, number of students in school, etc.)

Need = Amount of aid the family is eligible

What should we know about our Family Contribution?

What should we know about our Family Contribution?

Asset Protection AllowanceWhat is considered an asset?Parental Assets vs. Student Assets

Is debt considered?How should we value our home? -www.finaid.com

-Calculators -Federal Housing Index

Asset Protection AllowanceWhat is considered an asset?Parental Assets vs. Student Assets

Is debt considered?How should we value our home? -www.finaid.com

-Calculators -Federal Housing Index

What should we know about our Family Contribution?

What should we know about our Family Contribution?

Parent Income vs. Student Income

Student Income allowance = $6,260

Self-employed families Do NOT include business assets/worth on FAFSA if you have less than 100 employees

Salary to a dependent as tax benefit detrimental for financial aid

Parent Income vs. Student Income

Student Income allowance = $6,260

Self-employed families Do NOT include business assets/worth on FAFSA if you have less than 100 employees

Salary to a dependent as tax benefit detrimental for financial aid

Borrowing OptionsBorrowing Options

Student Loans vs. Parental Loans

Subsidized vs. Unsubsidized Loans

Federal vs. State vs. Private

Read fine-print and understand entire life of loan

Student Loans vs. Parental Loans

Subsidized vs. Unsubsidized Loans

Federal vs. State vs. Private

Read fine-print and understand entire life of loan

Financial AidFinancial Aid Myths vs. reality: Income too High Grades too Low Own a home Aid is only for special groups

Myths vs. reality: Income too High Grades too Low Own a home Aid is only for special groups

Sources of Financial Aid

Sources of Financial Aid

FEDERAL GOVERNMENTPell GrantsSEOG GrantsCollege Work/StudySubsidized and Unsubsidized Stafford Loans

Perkins LoansPLUS

FEDERAL GOVERNMENTPell GrantsSEOG GrantsCollege Work/StudySubsidized and Unsubsidized Stafford Loans

Perkins LoansPLUS

Sources of Financial Aid

Sources of Financial Aid

State GovernmentSpecial programs for in-state residents.

Teachers, health professionals, minorities, etc.

Contact HESAA (609) 584-4480www.hesaa.org

State GovernmentSpecial programs for in-state residents.

Teachers, health professionals, minorities, etc.

Contact HESAA (609) 584-4480www.hesaa.org

Sources of Financial Aid

Sources of Financial Aid

Colleges and Universities

Private universities have endowment funds, outside of federal and state funds.

Create competitionGive preferential packaging to students who are in top 25% of applicants.

Colleges and Universities

Private universities have endowment funds, outside of federal and state funds.

Create competitionGive preferential packaging to students who are in top 25% of applicants.

What if I do not Qualify for Need-Based

Aid?

What if I do not Qualify for Need-Based

Aid?Merit Aid

Some Schools do not award merit aid

School by school basis; some more generous than others

Value SchoolsAverage School cost $30-$70KLower end of range

Ex. Binghamton UniversityCOA = $35,000

Merit AidSome Schools do not award merit aid

School by school basis; some more generous than others

Value SchoolsAverage School cost $30-$70KLower end of range

Ex. Binghamton UniversityCOA = $35,000

Sources of Financial Aid

Sources of Financial Aid

Private scholarships

Account for 3% of all financial aid

High school guidance department

Private scholarships

Account for 3% of all financial aid

High school guidance department

How Do You Apply?How Do You Apply?

The FAFSA (Free Application for Federal Student Aid)

EVERYONE must fill out this form to get aid

You cannot apply for Federal Loans if you do not fill one out

Not accessible until Jan. 1st

Accessible at FASFA.ed.govAudit/verification process similar to IRS

The FAFSA (Free Application for Federal Student Aid)

EVERYONE must fill out this form to get aid

You cannot apply for Federal Loans if you do not fill one out

Not accessible until Jan. 1st

Accessible at FASFA.ed.govAudit/verification process similar to IRS

FAFSAFAFSA

New Requirement: FSA IDStudent and ParentNeeded to access/submit the FAFSA

Username/Password (Replaced PIN number)

FSAID.ed.govEstimate 2015 taxes, based on 2014 tax returns

Details of all assets that day

New Requirement: FSA IDStudent and ParentNeeded to access/submit the FAFSA

Username/Password (Replaced PIN number)

FSAID.ed.govEstimate 2015 taxes, based on 2014 tax returns

Details of all assets that day

CSS/PROFILECSS/PROFILE

Most private schools require this form

Much more invasive and complexHome equity treated as liquid asset

Section Qwww.collegeboard.com $25.00 for 1st school, $16.00 for each thereafter

Most private schools require this form

Much more invasive and complexHome equity treated as liquid asset

Section Qwww.collegeboard.com $25.00 for 1st school, $16.00 for each thereafter

How Do You Apply For Aid?

How Do You Apply For Aid?

Institutional Applications

Some schools require their own additional forms.

They should be consistent with other forms

Usually asks similar questions to the other two forms

Institutional Applications

Some schools require their own additional forms.

They should be consistent with other forms

Usually asks similar questions to the other two forms

How Do You Apply For Aid?

How Do You Apply For Aid?

FAFSACSS/PROFILECollege Institutional FormsADDITONAL FORMS:

Business/Farm SupplementDivorced/Separated Situations

FAFSACSS/PROFILECollege Institutional FormsADDITONAL FORMS:

Business/Farm SupplementDivorced/Separated Situations

Which Colleges Give You The Best Shot At Getting

Money?

Which Colleges Give You The Best Shot At Getting

Money?

CASE STUDIES :CASE STUDIES :

Amherst College: UMASS-Amherst:Cost - $70,000 Cost - $23,000EFC - $15,000 EFC - $15,000Need - $55,000 Need - $8,000

School A: School B:Meets 100% Need Meets 60% NeedGift Aid - 100% Gift Aid - 50%Self Help – 0% Self Help - 50%

What you actually pay at each school:School A: School B:Total EFC = $15,000 Original EFC =

$15,000Total Gift = $55,000 + Unmet Need = $3,000Total Self = $0 Total EFC

= $18,000Total Gift =

$2,500Total Self =

$2,500

Amherst College: UMASS-Amherst:Cost - $70,000 Cost - $23,000EFC - $15,000 EFC - $15,000Need - $55,000 Need - $8,000

School A: School B:Meets 100% Need Meets 60% NeedGift Aid - 100% Gift Aid - 50%Self Help – 0% Self Help - 50%

What you actually pay at each school:School A: School B:Total EFC = $15,000 Original EFC =

$15,000Total Gift = $55,000 + Unmet Need = $3,000Total Self = $0 Total EFC

= $18,000Total Gift =

$2,500Total Self =

$2,500

How To Appeal Your Financial Aid AwardHow To Appeal Your Financial Aid Award

How To Appeal For The Best Possible PackageHow To Appeal For The Best Possible Package

5 Point Plan of Attack

1. Bring color/background to your story

2. Ask for specific amount of additional aid

3. Show awards offered by other colleges

4. Challenge expenses not considered on taxes

5. Be persistent

5 Point Plan of Attack

1. Bring color/background to your story

2. Ask for specific amount of additional aid

3. Show awards offered by other colleges

4. Challenge expenses not considered on taxes

5. Be persistent

Helpful LinksHelpful Links

ineedfinancialaid.com cfs.inviteeducation.com collegeboard.com collegeprowler.com fafsa.ed.gov fastweb.com finaid.com

ineedfinancialaid.com cfs.inviteeducation.com collegeboard.com collegeprowler.com fafsa.ed.gov fastweb.com finaid.com