Financial Aid DiscussionFinancial Aid Discussion

December 13, 2012

Discussion TopicsDiscussion Topics

Forms and DeadlinesNet Price CalculatorIRS Data RetrievalExpected Family Contribution (EFC)Financial NeedAid TypesAward NotificationSpecial CircumstancesOutside ResourcesQuestions

FormsForms

Multiple forms needed to apply for financial aid

FAFSA (Free Application for Federal Student Aid); All schools require this form

CSS PROFILE required by most private schools NYS TAP Application required to apply for state

grant assistance

DeadlinesDeadlinesMeet all deadlines for financial aid as they vary from school to school.

Regular Decision deadlines may be as early as February 1, 2013

Early Decision deadlines may be as early as November 1, 2012

Early Action deadlines may be as early as December 1, 2012

CSS PROFILECSS PROFILE

www.collegeboard.com$9 application fee and $16 charge for each school listedUsed by most private colleges to award institutional fundsApproximately 300 questionsMust be filed electronically

FAFSA-Free Application for FAFSA-Free Application for Federal Student AidFederal Student Aid

www.fafsa.govNo application feeRequired by all institutions for federal aid eligibilityShould file electronicallyRequired for Federal PLUS loan

NYS TAP ApplicationNYS TAP Application

NYS TAP Application (NYS residents only)

https://www.tapweb.org/totw/

Filing TipsFiling Tips

Use estimated 2012 tax information; aid packages are only as good as your estimate

Meet the deadlines. Do not wait for your student to be admitted as you may miss a deadline

Use exact spelling of name on social security card and correct social security number

Filing TipsFiling Tips

Both parent and student will need a pin to electronically sign the application

Apply for the FAFSA pin prior to starting the application

www.pin.ed.gov

IRS Data RetrievalIRS Data Retrieval

New requirements for financial aid offices began in 2012-2013

Available in early February 2013 after many aid filing deadlines

Use estimated information and then two weeks after you complete your tax return you will be able to go back into your FAFSA and select IRS Data Retrieval

IRS Data RetrievalIRS Data Retrieval

Federal tax returns no longer acceptable documentation

If families choose not to use IRS Data Retrieval process, schools will require each family to request and submit official IRS tax transcripts

IRS Data RetrievalIRS Data RetrievalUnable to use IRS Data Retrieval if you meet the

following criteria and will need to submit a Tax Return Transcript.

You file with a tax status of married filing separatelyYou indicate you will not file a tax returnYou file an amended tax returnYou file a Puerto Rican or foreign tax returnParent(s) report all zeros for ssnStudent uses an 888 identifier for ssnMarital status has changed

Net Price CalculatorNet Price Calculator

Mandated by the Department of Education

All schools must have on their website as of October 29, 2011

Accuracy?

Estimated information only

Does not guarantee admission

What is the EFC?What is the EFC?

EFC = Expected Family Contribution

Amount family can be expected to contribute (discretionary income, borrowing ability, assets)

What is the EFC?What is the EFC?Two components– Parent contribution– Student contribution

Calculated using data from both the PROFILE and FAFSA

EFC calculation may differ from school to school

Financial NeedFinancial Need

Cost of Attendance

Minus Expected Family Contribution

Equals Financial Need

Financial Need: An ExampleFinancial Need: An Example

Tuition 37,000Room/Board 13,400Estimated Books 1,405Estimated Personal Expenses 1,762Direct Loan Fee 40

Cost of Attendance53,607

Minus EFC20,000

Equals Financial Need33,607

Types of Financial Aid- Types of Financial Aid- ScholarshipsScholarships

Scholarships typically not based on financial need

Academic or talent components

Require full time enrollment and cumulative GPA for renewal

Do not need to be repaid

Types of Financial Aid- GrantsTypes of Financial Aid- Grants

Grants – federal, state, institutional aid based on financial need and are not repaid

Federal Pell Grants, Federal SEOG (EFC < 4995)

NYS TAP Grants (Delaware, Rhode Island, Vermont) NYS TAP Grant looking for net NYS Taxable income < $80,000

Types of Financial Aid- GrantsTypes of Financial Aid- Grants

Institutional Grants—normally limited options at public institutions. Privates will have more resources

Awards may change from year to year if financial need changes

Types of Financial Aid - LoansTypes of Financial Aid - LoansLoans – federal and private loans. Some require financial need and are repaid with interest

Federal Direct Subsidized and Unsubsidized Loans

– Subsidized is need based and interest does not accrue while the student attends at least half time. Current interest rate is 3.4%

– Unsubsidized is not based on need and interest does accrue immediately. Current interest rate is 6.8%

Types of Financial Aid - LoansTypes of Financial Aid - Loans

Federal Perkins Loan

– Subsidized and based on financial need with a 5% fixed interest rate

Federal Direct PLUS Loan

– Federal loan program to help parents meet their EFC. Maximum eligibility is cost of attendance minus aid. Current interest rate is fixed at 7.9%

Types of Financial Aid - LoansTypes of Financial Aid - Loans

Private, Alternative Loans

– Loan programs that allow students to meet their educational costs

– Require a cosigner and the student must be 18

– Interest rates are variable and usually with an index

– Maximum eligibility is cost of attendance minus aid

Types of Financial Aid - Types of Financial Aid - EmploymentEmployment

Employment Opportunities

Federal Work Study based on financial need

Schools may have their own work program

Students normally work 8-10 hours a week and are paid directly for any hours worked

Award NotificationAward Notification

Financial aid packages are released once all forms have been submitted and the student has been accepted for admission

– Single release date– Rolling release

Special CircumstancesSpecial Circumstances

Circumstances we are able to consider:

Business Failure/Long term loss of employment

Medical expenses not covered by insurance

Special CircumstancesSpecial Circumstances

Circumstances we are unable to consider:

Consumer debtInability to liquidate assetsCash flow problems

Include details of your special situation on thePROFILE in the text box provided; If PROFILE isnot required check with the Office of Financial Aid for their specific form.

Outside ScholarshipsOutside Scholarships

Explore outside agencies and local organization for awards

Check with your employer

www.fastweb.com

Questions ?

Contact InformationContact Information

Barbie BargherAssistant DirectorStudent Financial ServicesIthaca Collegebbargher@ithaca.edu

800.429.4275 (phone)607.274.1895 (fax)www.ithaca.edu/finaidsfs@ithaca.edu