PRESENTED BY:

Financing a College Education

• What Is F inanc ia l A id?• Types of A id• Federa l A id• State A id• Appl icat ions to Complete• What happens NEXT?

Agenda

What is Financial Aid?

Financial Aid consists of funds provided to students and families to help pay for postsecondary (college)

educational expenses.

What is Financial Aid?

Eligibility Requirements

A student must:-Valid Social Security Number-U.S. Citizen or eligible non-citizen-Registered with Selective Service (if male)-Must have a high school diploma or equivalent (GED)-Pursue a degree or certificate -Have courses that are applicable to their degree/certificate-Maintain satisfactory academic progress

A student cannot have:-Previous student loans in default-An overpayment of any Federal grant or loan

T h i s i s th e amo u n t th a t th e f i n an c i a l a i d o f f i ce es t i mates i t w i l l co s t yo u to a t ten d

th e i r i n s t i tu t i o n fo r o n e acad emi c year.

C O A i s e s t a b l i s h e d b y e a c h i n s t i t u t i o n a n d v a r i e s d r a s t i c a l l y f r o m i n s t i t u t i o n t o i n s t i t u t i o n .

Cost of Attendance

COA

Direct Cost-Expenses paid directly to the institution

Indirect Costs-Expenses incurred but not paid to the institution

• Tuition• Fees• On-campus Room & Board • Personal Computer (if

required by school)

• Books• Personal Exp.• Off-campus Room & Board• Loan Fees• Transportation

Cost of Attendance

School X School Y

Expense Resident

Tuition & Fees $4,754

Room & Board $5,850

Books & Supplies

$1,200

TOTAL $11,804

Expense Resident

Tuition & Fees $46,700

Room & Board $13,620

Books & Supplies

$2,665

TOTAL $62,985

Cost of Attendance

A n u m b e r c a l c u l a t e d a c c o r d i n g t o a f o r m u la e s t a b l i s h e d b y U . S . D e p a r t m e n t o f E d u c a t io n

u s in g d a t a f r o m t h e F r e e A p p l i c a t i o n f o r F e d e r a l S t u d e n t A i d ( FA F S A ) .

C o m m o n l y r e f e r r e d t o a s a s t u d e n t ’s E F C .

Expected Family Contribution

EFC

Expected Family Contribution

• Amount family can reasonably be expected to contribute toward educational expenses for the academic year

• Various components:Parent ContributionStudent Contribution

• Stays the same regardless of selected institution

Financial Need

COA

EFC

Financial

Need

Financial Need

Need-based aid is financial aid that you can receive if you have financial need and meet other eligibility criteria. You can’t receive more need-based

aid than the amount of your financial need.

If your COA is $6,000 and your EFC is 2000, your financial need is $4,000; so you aren’t eligible for more than $4,000 in need-based aid.

Need based federal student aid programs:-Federal Pell Grant-Federal Supplemental Education Opportunity Grant (SEOG)-Direct Subsidized Loan-Federal Perkins Loan-Federal Work-Study

Types of Financial Aid

Grants Scholarships

Loans Employment

Categories of Financial Aid

Merit (Non-need based) Academic Talent Athletic Other

Need-based Financial Considerations

Sources of Aid

FederalStateInstitutional FundsOutside funds

Federal Aid

Pell SEOG (Supplemental Educational Opportunity Grant)

Maximum Award =$5850Can receive for 6 years

(Full Time) or until 1st Bachelors Degree

Prorated based on degree applicable credit hours

Maximum Award =$ 4000Can receive until 1st

Bachelors DegreeProrated based on degree

applicable credit hoursAwarded to students with

exceptional financial need

Federal Grants

TEACH (Teacher Education Assistance for College and Higher Education)

Federal Work-Study (FWS)

• TEACH Grant recipients must agree to serve as a full-time

teacher in a high-need field in a public or private

elementary or secondary school that serves low-income

students for at least four academic years within eight

years of completing the degree.

• Recipients that fail to complete this service obligation will

have their TEACH Grant converted to a Federal Direct

Unsubsidized Stafford Loan with interest since acceptance

of award added.

• Meet certain academic achievement requirements

(generally, scoring above the 75th percentile on a college

admissions test or maintaining a cumulative GPA of at

least 3.25).

• High Need Fields: Bilingual Education, English Language

Acquisition, Foreign Language, Mathematics, Reading

Specialist, Science, Special Education.

• $4,000 per year, $16,000 for undergraduates total, $8,000

total for graduate students

• Undergraduate and graduate students are eligible• Employment may be on or off campus• Schools must use portion of FWS funds for

community service employment activities• Student works to earn pay check• Pay rate is determined by school

Federal Grants

Subsidized Unsubsidized

4.66% (2014-2015)Must demonstrate

“need”Interest free when

enrolled for 6 credit hours or more

4.66% (2014-2015)Need is not

consideredInterest accrues

Pay while in school or Capitalize

Federal Direct Stafford Loans

Federal Direct Stafford Loans

• Funds provided directly by Federal government• Must be registered for at least 6 degree-applicable credits per semester• Not credit-based• 6 Month Grace Period• 6 repayment plans (10 – 30 years)• Each school determines criteria for class year and loan eligibility• Electronic MPN and Entrance Counseling must be completed prior to borrowing

Stafford Loans• Undergraduate borrowing limit $57,500

Loan Limit per class year

Freshman $5,500

Sophomore $6,500

Junior & Senior $7,500Of the above amounts, $2,000 must be Unsubsidized funds

Federal Perkins Loan

• Eligible students Undergraduate and graduate students Priority to students who show “exceptional need,” as defined by

school• Annual loan amount varies

Maximum amounts of $4,000 or $6,000 for undergraduate and graduate students respectively

• Interest rate: 5%• 9 month grace period • Repayment period may be up to 10 years Not all schools participate

Federal PLUS Loan

• Federal parent loan program for parents of dependent undergraduate students enrolled in at least 6 degree applicable credits per semester

• Annual loan limit: COA minus other aid

• Fixed Interest rate of 7.21%

• Repayment begins 60 days after loan is fully disbursed

• Credit basedParent Denied for PLUS Loan:

Student becomes eligible to borrow additional unsubsidized Stafford loanUp to $4,000 for first & second years

of undergraduate study

Alternative Loans

• Loans through private bank lenders to help meet costs not covered by other aid

• Annual loan limit: COA minus other aid• Credit based• Student applicants usually need a parent or other cosigner• Usually deferrable while attending school Many lenders offer educational loans. Interest rate and terms vary

based on lender. Shop around!

New York State Aid

New York State Aid

New York residents attending New York Schools only

Must submit FAFSA in order for TAP application to be available

First school listed on FAFSA will receive TAP award information

Net Taxable Income limits: $80,000 for dependent student $10,000 for independent student without children

Awards based on New York State Net Taxable Income from prior year & school’s tuition

Maximum award is $5,000 for dependent students

TAP ( Tuition Assistance Program)

APTS (Aid for Part-Time Students) Part-time TAP

Separate, paper application available in Financial Aid Office and processed by college, not NYS

Awards vary, not to exceed cost of tuition

Must be enrolled in less than twelve degree applicable credits

Available for new students and returning students who have attended college prior to 2006-2007

For students enrolled in less than twelve degree applicable credits AND

Completed twelve credits per semester in two preceding, consecutive semesters. Must have been a first time, freshman in 2006-2007 or after

Uses same online application as full-time TAP

New York State Aid

Institutional Outside Agencies

Grants or Scholarships funded by the institution

Employment of Student workers (different from FWS)

Local organizations Churches Civic Groups Employer Veterans Administration

Other Sources of Aid

Begin Researching Early!Deadlines /Application procedures can vary!

FAFSATAP

CSS PROFILEINSTITUTIONAL FORMS

Application To Complete

www.fafsa.gov

FAFSAAvailable:January 1st

Collects:Personal InformationFinancial Information

Up to 10 School CodesStudent & Parent

Signature(PIN)

Determines:Student’s EFC

FREE!

Frequent FAFSA Errors

• Social Security Number• Divorced/remarried parental information• Income earned by parents/stepparents• Income tax paid, AGI, tax refund• Household size• Number of family members in college• Real Estate & investment net worth

• Includes: stocks, bonds, certificates of deposits, mutual funds & trust funds, • Excludes: primary residence, retirement accounts (IRA, 401(k), 403(b),

pension plan) & life insurance policies

IRS Data Retrieval

IRS Data Retrieval

• RECOMMENDED, if available, as an option for student and parents.

• FAFSA will “Retrieve Data” from the IRS to populate most income related fields on the FAFSA.

• Generally available within 2 weeks of filing taxes electronically or 4-6 weeks after mailing a paper tax return.

• Students and parents can log back onto their FAFSA and complete the IRS Data Retrieval at any time, even after FAFSA is initially submitted.

• Families that do not or cannot utilize the IRS Data Retrieval tool will be required to obtain a Tax Return Transcript from the IRS for the verification process.

• Not available to everyone. Those who file taxes late, amend their return, owe tax, file using an extension, have identity theft issues and recent change in marital status will most likely not be able to use IRS Data Retrieval and may be delayed in receiving an IRS Tax Return Transcript.

www.tapweb.org

Available:January 1st

Application linked through the confirmation page of FAFSA OR

available after FASA is processed.

Collects:Requires NYS Tax

information.

Determines:TAP & Part-time Tap

eligibility

www.pin.ed.gov

Click icon to add picturePersonal Identification

• Four digit number

• Created by student& parent

• Remains the same throughout college career

• Electronic Signature

• Accesses Federal Website

http://css.collegeboard.org/

CSS Profile• Takes up to 45 minutes to

2 hours to complete

• Untaxed income

• Mortgage information

• Detailed investment information- Stocks, Bonds, etc.

• One-time submission –No changes after submission

• Fee for the submission and additional fees for each additional institution added (Fee Waivers are available)

• You will be contacted if additional documents are needed

What happens next?

Applications are received at all intuitions listed.

Step One

Step Two

Follow up with EACH Institution!

Many institutions have GO GREEN! If more information is required be sure to submit all

necessary documentation.1/3 of FAFSA applications are selected for Verification Be aware of DEADLINES!Don’t wait until the last minute!

Step Three

Reviewing Award Letters

School X School Y

Fall Spring Total

Federal Pell Grant $2925 $2925 $5850

Subsidized Stafford $1750 $1750 $3500

Unsub Stafford $1000 $1000 $2000

Estimated NYS TAP $250 $250 $500

TOTAL AWARDS $5925 $5925 $11,850

Step Three

Based upon a Dependent, full-time (12cr), freshman student with an EFC of 0

Total=

$11,850

COA=

$11,804

-$46

Total=

$11,850

COA=

$62,985

$51,135

Step Four

Good Luck!