financing education in challenging times operation inform 2011

Financing Education in Challenging times

Operation Inform 2011Operation Inform 2011

Operation Inform 2011

TOPIC

1. How much does college cost?2. What’s new in financial aid3. How is financial need determined?4. Sources and types of financial aid5. Reviewing award letters


Net-Price Calculator

By October 2011, all colleges must post net-price calculators on their Web sites

The aim of these calculators is to pinpoint the net price that a family will pay after receiving any scholarships or need-based grants


How Much Does College Cost?Cost of Attendance (COA) Includes:

direct costsIndirect cost

Colleges combine direct costs and indirect costs to make the cost of attendance (student budget).


How Much Does College Cost?

Cost of Attendance (COA) Includes:1. Tuition and fees2. Room and board3. Books and supplies4. Transportation5. Miscellaneous personal expenses


How Much Does College Cost?

4 Year PRIVATE On-Campus Student ex.Tuition and fees: $29,010Room and board:

10,944Books and supplies: 1,172Transportation: 737Personal expenses: 1,353Total Budget: $43,216

Source: College Board: Trends in College Pricing 2010 Middle States Averages.


How Much Does SUNY Cost Baccalaureate Degree Program 2011-12?NY State Resident Living On-Campus Tuition and fees: $6,600Room and board: 10,820Books and supplies: 1,260Transportation: 1,010Personal expenses: 1,430Total Budget: $21,120

Source: SUNY Office of Student Financial Aid, System Administration


How Much Does SUNY Cost Associate Degree Program Cost at 2011-12?

In District Commuting – at Community College

Tuition and fees: $4,190Room and board: 3,400Books and supplies: 1,270Transportation: 1,670Personal expenses: 1,180Total Budget: $11,710

Source: SUNY Office of Student Financial Aid, System Administration


How Much Does SUNY Cost?

The Bill: Typical First Semester Direct Charges

New York State resident baccalaureate degree student living on campus for 2011-12

Tuition $2,635 ($5,270)Fees 665Room & Board 5,410Total Direct Charges $8,710


How is Financial Need Determined?Estimated Family Contribution (EFC) is

determined from: Parents income and assets

Primary home value excluded Student’s income and assets Size of family

Age of parents Number of children in college

COA minus EFC = Need


FAFSA Information Student Dependency Status Parent Information Independent Student Information Colleges Receive Information

NEW 2011-12 IRS Date Retrieval for FAFSA


Federal UpdatesData Element Revisions:

Students will be asked to provide the name of their high school

Students will be asked about their preference for participating in a work-study program

Enrollment status question deleted TEACH Grant question deleted


Federal Updates to Major Aid Programs No More ACG or Smart Grant All Student loans are William D. Ford Direct

Student Loans ( No more Stafford) Parents must file FAFSA to be eligible for PLUS American Opportunity Credits - new tax

credit worth up to $2,500


Federal Updates to Major Aid Programs

PELL GrantMaximum annual award $5,550 (always pending

legislation and appropriation)


Major Aid Programs William D. Ford Direct Loans

Subsidized 3.4% (2011-2012) 6.8% (2012-2013) Based on need Federal government

pays interest while student is in school

$3,500 for Freshman

Unsubsidized 6.8 % fixed interest Not based on need Student is responsible for

interest while in school Max loan: cost of

education minus financial aid

$5,500 for Freshman


Major Aid Programs Perkins Loan

Need-based Low interest rate (5%) Student pays no interest while in school Max $5,500 per year May be forgiven


Major Aid Programs 2011-12 TEACH Grant

Up to $4,000 per year For students who intend to teach:

- a high-need field - that serves students of low-income

Four year service contract More information: www.studentaid.ed.gov


Major Aid Programs PLUS

For parents of dependent students Borrow up to entire cost of college less

financial aid No adverse credit (parent must pass credit

check) Interest Rate 7.9%


Tools For FamiliesFAFSA4caster

Instead of waiting, you can use the FAFSA4caster NOW to receive an early estimate of your eligibility for federal student aid.


FAFSA4caster Provides general information about federal student aid Estimates federal student aid eligibility Your estimate will be shown in the College Cost worksheet You can also provide estimated amounts of other student aid and savings


Major Aid Programs TAP

Tuition Assistance Program Maximum award $5000 Student must be NY state resident attending

college in NY state Most students receive up to 8 semesters of

TAP Must maintain academic progress


Tools For Scholarships Private scholarship search At your college of interest Free Internet scholarship searches

www.fastweb.com www.students.gov

Local library resources Local businesses and civic organizations

(including professional associations) related to student's field of interest Parent’s employer/union


Reviewing Award LettersComparing Financial Aid Award PackagesSUNY COA $21,120SUNY SFA Package - 6,100*Net cost to family $15,020

Non-SUNY COA $43,216Non-SUNY SFA Package - 16,000*Net cost to family $27,216

Focus on Net Cost vs. SFA PackageFocus on Type of Aid & Total Amount* Student loans are not included

Source: College Board: Trends in College Pricing 2010


Reviewing Award LettersQuestions you should ask: What is the source of aid? What is the out-of-pocket expense? Will the scholarship be renewed? Is there a GPA requirement? What happens if the requirement is not met?


Discussion?

financing education in challenging times operation inform 2011

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