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College Financial Aid Presentation 2014
Citation preview
Financial Aid For the Class of 2014
Presented by Cecilia E. Johnston, JD•College Applications Educator•Foothill Parent & Volunteer•www.ceciliajohnston.com
Tonight’s Presentation
Financial Aid Basics & the FAFSAShort BreakCSS:Profile (Optional)
Conquering Your Fears! For Students, the
scariest part of College Admissions is getting into the college of their choice.
For their Parents, the scariest part is paying for it!!!
Knowledge is Power! Study Your Handouts View this PowerPoint on Foothill Counselor’s web
page. Attend FAFSA Workshops at Ventura College and
other sites. “Help” function on Financial Aid Form websites Will give you the confidence to
successfully apply for financial aid !
What is Financial Aid ?
Free Money: Scholarships Grants
Self Help: Loans Employment:
Federal Work study
NUMBER ONE Rule of Financial Aid
Students AND their families have the primary responsibility to pay for postsecondary education expenses. Doesn't’t matter if parents choose
not to contribute to student’s education.
Therefore, it is very unusual for a student who has just graduated from high school to be “independent” for purposes of Financial Aid.
The “MAGIC FORMULA”
COA-EFC=FN
Used to determine amount of Financial Aid available to you.
More Magic Formula COA (Cost of Attendance) Minus EFC (Expected Family
Contribution Index Number) Equals FN (Demonstrated Financial
Need)
Note: EFC usually stays the same no matter how much the COA.
See Your Handouts handouts for more information.
How do I file for Financial Aid? Complete and file FAFSA
FAFSA = “Free Application for Federal Student Aid”
Make sure that your gpa has been submitted for Cal Grant consideration.
AND Submit CSS:Profile and/or other supplemental information if required by colleges to which you are applying. Usually private schools.
How do I know if I need to file the CSS:Profile?
Are any of the colleges/ universities to which you are applying listed on the reverse side of the CSS:Profile Handout?
Required to file CSS:Profile?
No?
Go home at the end of this presentation about the FAFSA.
Yes?
Please stay for a short presentation following the break.
NUMBER TWO Rule re: Financial Aid
Always, always, always apply for financial aid. Doesn‘t matter if you think that you
won’t qualify. Will need to file to qualify for non-
need based federal loans. Many schools will NOT consider you
for merit or other scholarships unless you apply for federal financial aid.
FAFSA Timeline Complete & Submit FAFSA as
soon as humanly possible. Use estimated 2013 income figures, then amend after
filing tax return. About 100 questions—max.
Will receive SAR (Student Aid Report) via email within 3-5 days!
Can always amend FAFSA.
Seven Steps to filling out FAFSA
Step One: Gather information and go to www.fafsa.ed.gov
Be careful to use “ed.gov” website. FAFSA is always free!
FAFSA.GOV Homepage
Step Two: Information About the Student
Student Demographics
Name must match Social Security Number.
Use the Help & Hints section on each page.
Step Three: School Selection:
Add by Federal School Code List at least one California school first. (for Cal Grants) There is room to list only 10 schools on the FAFSA.
You will need to amend your FAFSA to add any additional schools.
See “Blue Sheet” for more information on how do this!
Step Four: Dependency Status In most cases, your student will be a
dependent. There are very few exceptions.
Step Five: Parent Information Required if student is dependent. Parents must answer both
demographic and financial information to determine Custodial Parent for FAFSA
purposes. Ability to contribute to student’s
educational expenses.
Divorced or Separated Parents Provide information for parent who
student has spent at least 51% of time with in past 12 months.
Remarried Parent? Provide info about parent AND step-parent regardless of: Agreement of non-support Prenuptial Agreement Divorce Decree
Divorced or Separated (Part 2)
Parent filling out FAFSA need not be the custodial parent per divorce decree.
Parent filling out FAFSA need not be the parent who claims the student as an exemption for income tax purposes.
NEW!!! Non-Married Parents Living Together
Dependent students’ FAFSA must include income and other information about both of the student’s legal parents (biological or adoptive) if the parents are living together, regardless of the parents’ marital status or gender.
Parent Income & Assets: You will see a list of types of Assets on
FAFSA—click the box next to the asset and you will be asked questions about those assets.
FAFSA looks at Adjusted Gross Income. 529 Accounts are considered Parents’
assets. Some assets that FAFSA does not consider
including: Your family home Your Retirement Accounts Your small business (less than 100
employees)
Step Six: Student’s Assets Same list of Assets to click on. Tip: Most of student’s assets are expected to be
used for education expenses. What may make sense for tax savings may not make sense for financial aid. Ask your accountant or financial advisor for assistance.
Rule Number Three of Financial Aid
Do not do anything that could get you in trouble with the IRS!
In general, you want to look as poor as possible for FAFSA purposes.
Again, do not do anything that could get you in trouble with the IRS!!
If you have questions, talk to your accountant or financial advisor.
A few helpful hints:
Fill out FAFSA the day after you have paid your mortgage and big bills.
Value of assets is NET, not gross. Asset protection allowances are built into
the formula based on age of oldest parent. Questions: Call FAFSA.
Step Seven: Submission Student and Parent(s)
electronically Sign and Submit.
Both Student and one Parent apply for a PIN to sign. Save PINs for next year!
Confirmation Page
You will receive an electronic Confirmation Page with:Confirmation NumberEstimated EFC Index NumberList of CollegesNext StepsOption of transferring parents’ data to sibling’s FAFSA!
Student Aid Report Notification Arrives electronically in 2-5 days. Has EFC and Pell Grant eligibility. If you don’t like the results or
have special circumstances or expenses: Contact individual colleges which
can exercise “Professional Judgment Override.”
Your EFC when you receive your Financial Aid packages (by April 1) may be slightly different.
The Dreaded “GAP”
Not every school meets 100% of your Financial Need.
The Dreaded “GAP”
Not every school meets 100% of your Financial Need.
Example: (On your “Blue Sheet” COA: $25,000 Minus EFC: $10,000 = FN: $15,000
But College only meets 66% of FN equaling $10,000, leaving a gap of $5,000.
The Dreaded “GAP”
Not every school meets 100% of your Financial Need.
Example: COA: $25,000 Minus EFC: $10,000 = FN: $15,000
But College only meets 66% of FN $10,000 leaving a gap of $5,000.
You must make up the difference; you will be responsible for the EFC of $10,000 plus GAP of $5,000 = $15,000.
A Few Financial Aid Tools: Net Cost Calculators:
Every school is required to have one on their website.
School Data: www.collegecost.ed.gov/scorecard/ www.collegedata.com www.collegenavigator.gov
Info: www.finaid.org
All links may be found on your “BLUE SHEET” handout.
Cute Puppy Break!
VERIFICATION FAFSA can now verify your form with the information on your federaltax return. About 30% of FAFSAs are subject to
verification. If you see an “*” next to your EFC on your SAR—
you will need to verify your FAFSA by submitting supporting documentation.
More Verification You will get letters from schools to which you applied
with instructions. May have to obtain IRS Transcript. Verification Docs are sent to schools, NOT FAFSA. Your Financial Aid Package is on HOLD until verification
completed.
“The Magic Button” The IRS Data Retrieval Tool
Only on FAFSA Will automatically populate FAFSA with your 2013
Federal Tax Return Information. Automatic Verification!!
Won’t be subject to FAFSA Verification. No need to order IRS Transcript.
Easy to use for returning college students with later FAFSA due dates.
Problem for Incoming Freshmen IRS Data Retrieval Tool not available until February 2,
2013. Must wait 3 weeks after electronic tax filing and 8 weeks
after snail mail tax filing. Many colleges have Financial Aid Form due dates in
February (and even January!) What to do?
Financial Aid Filing Strategy Step by step instructions are on your “Blue Sheet”
The key is to file your FAFSA using estimated figures for 2013. ASAP!
Do NOT wait until you have filed your 2013 Federal Income Tax Return!!
You will meet the school Financial Aid deadline by filing your FAFSA with your 2013 estimates.
Cute Hedgehog Break
What kinds of Financial Aid are available?
Your handouts do a great job of setting forth information about all of the types of financial aid. Refer to them.
Remember Two Main Types: Free Self Help
Free Financial Aid Grants
Pell (Federal) Cal Grant Institutional Grants (from
the school) Other
Scholarships: Institutional (from the
school) Private from other
sources
Self Help Financial Aid Loans
Perkins: Federal, Low income, low interest rate. Stafford: Federal
Subsidized: Need based, limited amount. Unsubsidized: All eligible students, limited
amount. PLUS Loans: Federal, taken out by parents up to
COA Private Loans: Banks, Credit Unions.
More Self Help Aid Work Study
(Federal) On campus Well paying Doesn't’t count as
“income” for purposes of FAFSA and CSS:Profile
Cute Kitten Break
Ventura College Promise Grant
Available on a first come, first serve basis. (Only about 800 available.)
Covers a Ventura County high school graduate’s first year fees at Ventura College. (Tuition)
Must file FAFSA to be eligible. Don’t miss Field Trip to VC in May to
matriculate!!
CAL GRANT
Key Points: Automatic application when
Submit FAFSA. Need Based (see income ceilings on
on Blue Sheet) May only be used at a California
School. Deadline to submit FAFSA and gpa is
March 2. (Don’t worry about gpa submission—done by high school registrar in fall 2013.)
More about Cal Grants Different amounts depending
on which California school you attend: CSU: $5,970 UCs: $12,192 Private: $9,223
Different types of Cal Grants: A,B & C Info. In Handouts Some schools are not Cal
Grant eligible. (ex. Univ. of Phoenix, ITT Tech etc.)
New! Middle Class Scholarship Program (MCS)
“Automatic” application by filing FAFSA by March 2.
For undergraduates with Family incomes from $80,000 to $150,000 (per FAFSA.)
Attend an University of California or California State University campus.
Issues with funding/sliding scale (See handout for more info.)
This year approx. $1,700 to $77.
Cute Platypuses
California Aid Report (CAR) You will receive your CAR electronically. Will notify you if you will receive a Cal Grant
(and possibly the Middle Class Scholarship.)
Financial Aid Packages You will receive your
financial aid package shortly after you receive your offer of admission from a college or university.
Compare the packages.
The more Free Money, the better the package.
Universal College Acceptance Date
MAY 1, 2014 The last day to pay your deposit to the
college or university of your choice! Deposit is usually between $500-$1000.
Remember: Need to fill out FAFSA and
CSS:Profile every year. Save all PINs and copies of
submitted paperwork. Much of info is transferred
from this year’s form to next year’s form!
Due dates are later in the Spring for continuing students.
WARNING: “Certified College
Financial Planners/Advisors”
are also Licensed Life Insurance Brokers who are trying to sell you expensive financial products to “shelter your assets.”
Please be careful!!!
Confused? Overwhelmed? Read your Handouts. This PowerPoint on FTHS Counselors’ page
on website. Talk to your Guidance Counselor. Use the “Help” function as you
are filling out forms. Call or ‘On Line Chat’ with FAFSA
Ventura College FAFSA Workshops and “Cash For
College” Workshops. (See Blue Sheet)
Book Recommendation “Paying for College
Without Going Broke” by Kalman Chaney 2014 ed. Two part guide:
First goes over the financial aid process
Second goes over the FAFSA & CSS:Profile step by step
Available at bookstores and on line.
CSS Profile and other Financial Supplements
Some Private Schools use FAFSA and CSS Profile and/or their own supplemental Financial Aid Forms.
CSS Profile on line. Costs $ (Waivers available.)
Looks more deeply into family finances. Fill out one form for all
colleges: different questions for different colleges
CSS-Profile Differences Many schools require that Non-Custodial Parent fills out Supplement. Considers Family Home as an asset.
For valuation: subtract mortgage from value as determined by Federal House Price Index Calculator.
Don’t forget to subtract mortgages, down payment loans from value.
More Differences: Value of Businesses: NET Worth
Most Service Businesses have a very low net worth for Financial Aid Purposes.
Assets held in sibling’s names are counted Retirement funds counted Not a free form. Use College Board id and
password to access. (Save this info. for next year!) Space to explain Unusual Circumstances: ie. large
medical expenses etc.
Even More Differences! Contribution from Student’s
Parents: One expert recommends that you wait
until you get SAR, take the EFC and reduce it by 30%.
Estimate Prior Year and Future Income. CANNOT amend CSS-Profile so make
sure that your estimates are very close.
IDOC: free service where you submit supporting documentation-not all schools use this.
CSS-Profile: Finally,
Every school that uses CSSProfile or own Supplements will treat your assets and liabilitiesdifferently; many times in your favor! You will know what your EFC is when you
receive your Financial Aid Packet. Questions? Use the CSS:Profile toll free
number on the CSS:Profile handout.
Cute Panda Cub Says Goodbye, Thank you and Good Luck!