the novice financial aid workshop. zf. duane quinn director of training and development zamerican...

The Novice Financial Aid Workshop

F. Duane Quinn

Director of Training and Development

American Student Assistance

Diane Place

Assistant Director of Financial Aid

Bridgewater State College

Agenda

History and Theory Determining Eligibility

(need)

EFC Formulas

Principles of Packaging

Professional Judgment

Resolution of “C” Flags

History of Need Analysis:

Need Analysis Agreements (50’s - ‘75)Uniform Methodology (‘75 - ‘86)Congressional Methodology (‘86 - ‘92)Federal Methodology (‘92 - ‘present)Institutional Methodology -Resource

Analysis (‘89 - present)

Common Precepts of Need Analysis:

Use the prior year (base year) income An indication of current financial strength

Verifiable

Consistent

Available

Common Precepts: (Cont’d)

Deal with the family in their current circumstances

Apply “Horizontal” and “Vertical” equity

Treat unusual circumstances on an individual basis

Theory of Need Analysis

Parents and students are responsible for financing education costs......…

Up to their ability.

Theory

The student and her family will benefit the most from higher education and should pay for it......

Financial Aid should provide Access and Choice

Eligibility

Costless Family contribution

= Eligibility for aid

Cost not just tuitionTuition

+ Room and Boardor Commuter expenses+ Books and supplies+ Transportation expenses+ Personal expenses+ “Other” special costs

The Family Contribution

Not “extra” money.

Not “family savings”

The ability of both the parents and

the student to absorb educational

expenses over time.It should represent a true sacrifice

on the part of the family.

Different Ways to Apply for Aid

Paper FAFSA

Renewal FAFSA

FAFSA on the WEB http://www.fafsa.ed.gov

New for 2003 -2004

Question 60: Date parents became

married, separated, divorced, widowed?

Question 99: What is your e-mail

address?

e-mail confirmation for those providing

e-mail address

Application Process

FAFSAFAFSA

Paperor

Web

Application Process

FAFSAFAFSAFed. ProcessorFed. Processor

Application ProcessData MatchesData Matches


Application Process

College A

College B

College C

COLLEGESCOLLEGES

UP TO 6UP TO 6

Data MatchesData Matches


Application Process

College A

College B

College C

COLLEGESCOLLEGES

UP TO 6UP TO 6



SARE-MAIL

PIN

Application Process

College A

College B

College C

COLLEGESCOLLEGES

STUDENTSTUDENT

UP TO 6UP TO 6



SARE-MAIL

PIN

CSS PROFILE

Supplemental Form

Required by some colleges to determine eligibility for college aid

Used by some for Early Decision Process

Eligibility

Costless Family contribution

= Eligibility for aid

Example of Two Schools

COLLEGE “A”

cost $24,000- F.C $ 8,000=need $16,000


COLLEGE “B”

cost $12,000-F.C. $ 8,000=need $ 4,000

Federal Methodology

Used for: All Title IV programs (must use)

Institutions (some) States (grant programs) Other scholarship agencies

Federal Methodology

Three FormulasDependent StudentsIndependent with Dependents (other

than a spouse)Independent without Dependents

(other than spouse)

Two Formula Variations

# 1 Simplified Needs Test (SNT)(no assets included in

formula)

Parent (Ind. Student) AGI less than $50,000

Parent and Student Completed, or are eligible to complete, an IRS 1040A or 1040 EZ or non-filer

Two Formula Variations

# 2: Low Income Bypass (automatic 0 EFC)

Parent (Ind. Student) AGI less than $13,000

Completed, or is eligible to complete, an IRS 1040A or 1040 EZ or non filer

Independent Students:Who are they???

Over age 24 by Jan 1 of award year.

orVeteran of the

Armed Forcesor

Graduate Student

Marriedor

Orphan; wardor

Has legal dependent (other than spouse) live with and support

orHave children & provide > 1/2

support

Independent Students - Two Categories

Different formulas

With dependents?

childother dependentnot just a spouse

Without dependents?

no dependentswith spouse

Who is a Dependent?

Child who receives 1/2 support from student.

Natural child; adoptive child; legal ward

Child does not have to live with the student.

Any other person who lives with student and get 1/2 support and will continue to receive this support during the award year.

The Financial Aid Package

GRANTS - “Free money” Never has to be repaid

WORK - An opportunity to earn college funds.

LOANS - Funds which must be repaid


COLLEGE “A”

cost $24,000- F.C $ 8,000=need $16,000


costcost $24,000.$24,000.


costcost $24,000$24,000

F. C.F. C.

$ 8,000.$ 8,000.

need = $16,000need = $16,000


Pell / Waivers / State

Pell / Waivers / State

costcost $24,000$24,000

F. C.F. C.

$ 8,000.$ 8,000.

need = $13,000need = $13,000

$ 3,000


costcost $24,000$24,000

F. C.F. C.

$ 8,000.$ 8,000.loanloan

$3,000$3,000

need = 13,000need = 13,000


costcost $24,000$24,000

F. C.F. C.

$ 8,000.$ 8,000.loanloan

$3,000$3,000workwork$ 2,000$ 2,000

need = $11,000need = $11,000


costcost $24,000$24,000

F. C.F. C.

$ 8,000.$ 8,000.loanloan

$3,000$3,000workwork$ 2,000$ 2,000

grant = $11,000 grant = $11,000 meet full needmeet full need


costcost $24,000$24,000

F. C.F. C.

$ 8,000.$ 8,000.loanloan

$3,000$3,000workwork$2,000$2,000

grant = $8,000grant = $8,000

unmet need “GAP”unmet need “GAP” $3,000$3,000

The Effect of Private Scholarships on the Financial Aid Package


costcost $24,000$24,000

F. C.F. C.

$ 8,000.$ 8,000.loanloan

$3,000$3,000workwork$ 2,000$ 2,000


OUTSIDE SCHOLARSHIP $$$$$$OUTSIDE SCHOLARSHIP $$$$$$

$ 3000.$ 3000.


costcost $24,000$24,000

F. C.F. C.

$ 8,000.$ 8,000.loanloan

$3,000$3,000workwork$ 2,000$ 2,000


$$$$$$


costcost $24,000$24,000

F. C.F. C.

$ 8,000.$ 8,000.loanloan

$3,000$3,000workwork$ 2,000$ 2,000


$$$$$$$$$$


costcost $24,000$24,000

F. C.F. C.

$ 8,000.$ 8,000.loanloan

$3,000$3,000workwork$ 2,000$ 2,000



costcost $24,000$24,000

F. C.F. C.

$ 8,000.$ 8,000.loanloan

$3,000$3,000workwork$2,000$2,000

grant = $8,000grant = $8,000



costcost $24,000$24,000

F. C.F. C.

$ 8,000.$ 8,000.loanloan

$3,000$3,000workwork$2,000$2,000

grant = $8,000grant = $8,000


$$$$$$$$

How Do College’s Adjust Awards?

Institutional Policy... will differ from school to school

Must have a policy

Available in writing to student at time of award

How Do Colleges Adjust?

Allow Outside scholarships to fill “gap”.

50% from “self-help” and 50% from Institutional grant.

Reduce Institutional grant dollar for dollar.

Some combination of all of these.

Professional Judgment:

Historical

Professional Judgment:

1992 Reauthorization of the Higher Education Assistance Act of 1965

Section 480 (Dependency Issues)

Section 479 (Cost of Attendance)

Defining Professional JudgmentThe Act of a Financial Aid Officer

using her Legislated Authority to alter the outcome of federal need analysis by recognizing unusual circumstances of the parent / student which effects their ability to absorb educational expenses over time (EFC); or results in an alteration of the student’s cost of education.

“C” Flags

IntroductionWhat is a “C” Flag?INS MatchSocial Security Administration MatchSelective Service MatchNSLDS MatchDrug Conviction Match

INS Match

Primary Confirmation – INS match through CPS

Secondary Confirmation – 13 digit INS Verification Number and Form G-845S (see handout) Acceptable Documentation

Documentation in Subsequent Years

Social Security Administration

SSNOs CPS matches on name, ssn and dob

Citizenship CPS matches on name, ssn, dob and

citizenship Documentation – school decides what is

appropriate, not Dept. of Ed

Selective Service

Who is required to register?Who is NOT required to register?Documenting non-confirmed

registrations Status Information Letter Other factors

NSLDS Match

No Data on Student Rejects, no RELEVANT history, student not in

databaseDefaults

Repayment in Full Satisfactory Payment Arrangements Rehabilitation

Overpayments (repayments) School error Student error

Drug Conviction Flag

Student self-certifies School’s responsibility

Questions?

the novice financial aid workshop. zf. duane quinn director of training and development zamerican...

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