demystifying financial aid. “how can i afford to send my child to an independent school?”

Demystifying Demystifying Financial AidFinancial Aid

““How can I afford to send my child How can I afford to send my child to an independent school?”to an independent school?”

Financial Aid in Independent Financial Aid in Independent Schools: the BasicsSchools: the Basics

Primarily Primarily need-basedneed-based funds funds

Funds come from the individual Funds come from the individual schoolsschools

Provides Provides accessaccess to independent schools to independent schools for qualified students from diverse for qualified students from diverse economic backgrounds & economic backgrounds & allowsallows schools schools to build the best student body they canto build the best student body they can

How to ApplyHow to Apply

Ask the school! All Ask the school! All are slightly different.are slightly different.

Tell the school Tell the school early early that you want to apply that you want to apply for financial aid.for financial aid.

Deadlines are crucial.Deadlines are crucial.

Your Financial ProfileYour Financial Profile

Income (this year and next year)Income (this year and next year) Expenses (this year and next year)Expenses (this year and next year) AssetsAssets DebtsDebts

School and Student Service for School and Student Service for Financial Aid (SSS)Financial Aid (SSS)

Owned and directed Owned and directed by the National by the National Association for Association for Independent SchoolsIndependent Schools

““Princeton” formsPrinceton” forms

Helps schools Helps schools determine need of determine need of families.families.

PFS (or other application form)

tax return

4506 form

Student InformationStudent Information

Parent/Guardian Information & Parent/Guardian Information & School SelectionSchool Selection

Income and ExpensesIncome and Expenses

Family Assets and DebtsFamily Assets and Debts Assesses the “financial strength” of the familyAssesses the “financial strength” of the family

Family Educational ExpensesFamily Educational Expenses

Other Expenses and Additional Other Expenses and Additional InformationInformation

DO NOT LEAVE BLANK!DO NOT LEAVE BLANK!

What’s next?What’s next?

Your “EFC”Your “EFC”

EEstimated stimated

FFamily amily

CContributionontribution

How does SSS determine your How does SSS determine your Estimated Family Contribution?Estimated Family Contribution?

Discretionary Income Discretionary Income

Your Estimated Family Your Estimated Family Contribution is usually 22-44% Contribution is usually 22-44% of your Discretionary Income. of your Discretionary Income.

Example: Family of 4, Total Gross Income Example: Family of 4, Total Gross Income $100,000 (and Net Worth of $100,000)$100,000 (and Net Worth of $100,000)

IncomeIncome $100,000$100,000

+ Small % of Net Worth $ 1,500+ Small % of Net Worth $ 1,500

- Tax, Misc. Allowance- Tax, Misc. Allowance $ 35,000$ 35,000

- Moderate Standard - Moderate Standard

of Livingof Living $ 28,000$ 28,000

Discretionary IncomeDiscretionary Income $ 38,500$ 38,500

x x 35% 35%

Estimated Family Estimated Family

ContributionContribution $ 13,500$ 13,500

Not the “Final Say”Not the “Final Say”

Once Admissions knows who they want to Once Admissions knows who they want to accept, Financial Aid looks at the EFC but accept, Financial Aid looks at the EFC but often makes often makes adjustmentsadjustments..

Schools make adjustments based on their Schools make adjustments based on their own policies and budgets:own policies and budgets: Some make adjustments for geographic Some make adjustments for geographic

differences in cost of livingdifferences in cost of living Some may not count your home as an Some may not count your home as an

assetasset Some schools cannot afford to meet full Some schools cannot afford to meet full

need for all familiesneed for all families

Schools notify familiesSchools notify families

Usually schools will inform families of Usually schools will inform families of any financial aid offered with an offer of any financial aid offered with an offer of admissionadmission

Grants offered will not necessarily be the Grants offered will not necessarily be the same from every school (due to differing same from every school (due to differing policies and budgets)policies and budgets)

What if it’s not enough?What if it’s not enough?

Things to think about…Things to think about…

LoansLoans Monthly payment plansMonthly payment plans Look creatively at your earning potential, Look creatively at your earning potential,

spending priorities, or asset managementspending priorities, or asset management Call the Financial Aid Office at the school and Call the Financial Aid Office at the school and

explain the problem and ask for helpexplain the problem and ask for help

Common Questions & Common Questions & ConcernsConcerns

““Will I qualify?”Will I qualify?”

Depends on many factors: income, assets, Depends on many factors: income, assets, debts, number of children, parents’ age…debts, number of children, parents’ age…

Tuition is costly; families from a wide Tuition is costly; families from a wide range of income levels can qualify.range of income levels can qualify.

““So, should we apply?”So, should we apply?”

If you think you need it, you should apply. If you think you need it, you should apply.

Plan ahead! Plan ahead!

You may not be able to apply later.You may not be able to apply later.

““Will applying for financial aid affect Will applying for financial aid affect my child’s chances for admission?” my child’s chances for admission?”

Most schools separate their admissions Most schools separate their admissions and financial aid processes so that and financial aid processes so that financial need does not prejudice your financial need does not prejudice your application. But, budgets are limited.application. But, budgets are limited.

““What about ‘extras’?”What about ‘extras’?”

Questions to ask schools:Questions to ask schools: What is included in the tuition What is included in the tuition

rate?rate? Are there other fees such as Are there other fees such as

lunch, books, PTA dues, or lunch, books, PTA dues, or uniform fees?uniform fees?

Is there supplemental financial Is there supplemental financial assistance available for trips, assistance available for trips, or other incidental expenses?or other incidental expenses?

Top 5 to RememberTop 5 to Remember

1.1. If you think you need itIf you think you need it, apply., apply.

2.2. Don’t miss Don’t miss deadlinesdeadlines!!

3.3. Ask questionsAsk questions if something is not clear. if something is not clear.

4.4. Be Be honesthonest, and as , and as accurateaccurate as possible. as possible.

5.5. Provide Provide detailsdetails. (Do not leave item #32 . (Do not leave item #32 on the PFS blank!)on the PFS blank!)