Welcome Class of 2014 Parents!

Senior Parent Night October 3rd, 2013

Agenda

• Intro and Importance of College (10 min)• College Seminar Update and Policies (15 min) • Financial Aid Process/Action Items (35 min)• Scholarships (10 min)• Q & A (10 min)

Rationale

• We just met in May - why are we meeting again so soon?– Time to meet with parents about questions &

concerns– Make sure parents/guardians aware of what’s

going on first semester before it’s over – Parents last year wanted scholarship information

earlier in the year

Our Mission

UIC College Prep prepares students from under-resourced communities to use their college degrees and careers to make a positive multigenerational change.

Our Goals

1. 100% of Seniors are accepted into a 4-year college

2. All students graduate from college3. Students graduate without an unreasonable

amount of student/parent indebtedness

Senior College Team

• Grisel Murillo– Counselor for most of Corral, Graney, Nance, Tortorice

• Megan Ballard– Counselor for most of Dorcy, Heltzel, Matsukane, Simmons,

Wright• Sarah MacCallum– College Seminar Instructor, Counselor for MacCallum

• Jeanie Cho– Alumni Coordinator, Counselor for select students from all

advisories

Importance of a College Degree

“The economy that's coming is one where the value of education after high school really determines whether or not you join the middle class.” – Anthony Carnevale, Economist, Georgetown U.

Lifetime Earnings by Education

2-year versus 4-year Degrees

A Bachelors Degree can only be earned at a 4yr college. This degree is more advanced and usually provides better employment opportunities, more opportunities to grow in your profession and higher earning potential.

Why not just transfer?

Q: Shouldn’t my scholar just go to a 2year college first to save money then transfer to a 4year school?

A: The savings sound great but may not always be the reality:– Most students go part time, start working, or don’t focus on their

studies and end up spending at least 3 years at a 2 year school – Transfer students have a harder time finding scholarships for just

the last two years as opposed to finding 4-year renewable scholarships that start for incoming college freshmen.

– Most Noble students who started at 2 year schools did not successfully transfer to 4 year schools

Why not just transfer?

According to a TG Research Report based on data from the U.S. Department of Education’s National Center for Education Statistics:

“Savings from the time spent at a lower-cost community college often vanish as transfer students borrow more than native students during their final years. Transfer students receive less grant money than native students, especially at a four-year private university, likely contributing to an increase in borrowing to make up the difference.”

Which College?

• All 4-Year Colleges Are NOT Created Equal• Factors we consider:– Graduation Rates - % graduate in 6 years– Selectivity – % students admitted– Campus Supports (advisors, TRIO, staff)– % Financial Need Met – How well colleges meet

family’s need (more to come).

COLLEGE SEMINAR INSTRUCTOR

Sarah MacCallum

Application Timeline*

• 1 application ready for proofreading by college counselor (not submitted online)

This week

• 3 additional applications due to College Counselors for endorsement

October 30

• Applications with priority deadlines due

November 1

• 3 additional application due to College Counselors for endorsement

November 13

• 3 additional applications due to College Counselors for endorsement

December 6

2nd Semester Timeline

• Initial FAFSA completed in class using estimates

January 9

• All FAFSAs updatedwith new 2013 tax info

End of March

• Explore typical college issues, decide on college with help of counselors and parents

• Discuss costs, debt, and gain financial literacy, review awards

3rd and 4th quarter

How are College Lists Chosen?

• Students discuss potential colleges with College Counselors, create a list of 10+ colleges to apply to– Students counseled around college fit factors, cost of

college, selectivity etc.– 3 Safety, 4 Match, 3 Reach Applications (for most

students)– Lists can be seen on Naviance website “Family

Connection”– Most students lists are still in the process of being

approved

Application Approval

• College Counselor Endorsement of Applications– Each college application is proofread by your

student’s college counselor before it is submitted– Ensures that your student will submit a high-

quality, competitive application– Required for a grade in class

Quality Control & Consequences

• If a student submits an application without endorsement (College Counselor proofreading/approval), they earn 2 demerits. – This is the only instance where demerits are

issued in the application process– This goes for colleges outside their list too

Myths and Truths

• Myth: A student will receive 2 demerits for applying to a college that is not on their original list – TRUTH: Students ARE allowed to apply to colleges

outside of their endorsed college list and will not receive demerits for the application as long as they speak to counselor first (paragraph may be requested)

Myths and Truths

• Myth: Counselors have colleges they will not allow, and students cannot apply to schools outside their “10” – TRUTH: We will never say “No”, we might say “Yes,

but please explain.” Parents can set up meetings or phone calls

Myths and Truths

• Myth: Students can only work on and submit applications in class – TRUTH: Absolutely false. Students may work on

applications at home as much as they want. After a counselor approves/endorses them, they may submit at home with parents

– 3 business days to do so after endorsement

FINANCIAL AID Process and Review

The Costs of College

Average 4-Year College Sticker Price• In-state public colleges: $17,131• Out-of-State public colleges: $29,657• Private colleges (in and out-of-state): $38,589•Most Expensive Privates: > $50,000*Assume an additional $3k-4k for textbooks, supplies, transportation and other personal/misc. expenses.

Source: College Board’s “Trends in College Pricing” 2011-12

REMEMBER: Sticker Price is not the same as YOUR Net Price

Sources of Financial Aid

Federal State

Institutional Private

Types of Financial Aid

Grants Scholarships

Work Study Loans

GRANTS

• Grant aid is based on the financial need of the student and family that does not need to be repaid. FAFSA lets students apply for: – Federal Pell Grant – up to $5,645– Illinois MAP Grant – up to $4,720– Federal Supplemental Educational Opportunity Grant

(SEOG) – up to $4,000 (usually less)

• Institutions can provide need-based grants too

Scholarships

• Money awarded based on things like academic achievement, athletic ability, artistic talent or ethnic background.

• Generally do not require repayment but some may have conditions that need to be fulfilled to receive the award.

Work-Study

• On- or off-campus work opportunities for students provided at the college through federal funds.

• These jobs pay at least minimum wage but generally max out at 15 hours/wk

• Eligibility is based on financial need.

Student Loans• Vast majority of students must borrow for college

• Federal Loans don’t need to be repaid during college

• Having some loans is a good investment in your education and future; too much can harm your financial future

• Students apply for Federal loans with the FAFSA. Most Federal loans are in students’ name only – no cosigner!

• Private loans are also available but are NOT recommended

• Student must repay all loans even if they don’t graduate so DON’T borrow more than you need!!!

Federal Student LoansProgram Subsidized? Interest for 2013-

14 (Fixed)First Yr. Max

Subsidized Stafford Loan

(Direct)Yes 3.86%* $3,500

UnsubsidizedStafford (Direct) No 3.86%* $2000-5,500

Perkins Loan (Institution) Yes 5% $5,000

Parent PLUS (Direct) No 6.41%* Cost –

Other Aid

Financial Aid Eligibility

• In order to receive federal and state financial aid you must: – Be a U.S. citizen or eligible noncitizen– Have a Valid Social Security Number – Register with Selective Service (males)– Maintain satisfactory academic progress

Undocumented • Status of parent NOT important for FAFSA – OK if parents undoc

if student is a citizen or legal resident– These parents should still do taxes with ITIN instead of SSN

• Dreamers CAN go to college

• DEFERRED ACTION: NOT the Dream Act, SSN would be valid for work only, not Financial aid

• If student does not have valid SSN:– CANNOT complete the FAFSA– Must rely on private scholarships and apply for as many as they can!

Scholarships for Dreams

• Fiesta del Sol Guadalupe A. Reyes Scholarship• Latinospro.org• MALDEF Guide • USHLI Scholarship Guide • Hispanic Scholarship Fund • New Illinois Dream Commission funds

THE FINANCIAL AID PROCESS

(See Timeline Handout)

• “Free Application for Federal Student Aid”• Required for all eligible seniors for a grade• Process will begin January 8th and 9th, upon

return from winter break

• Complete CSS PROFILE if required!

Step 1 – Completing the FAFSA

•FREE, online at www.FAFSA.GOV

•Opens up 1/1/14 for the 2014-15 school yr.

•No Federal deadline, but colleges have own priority deadlines

FAFSA Calculates EFC

• EFC = Expected Family Contribution

– A measure of the amount student and family are expected to contribute toward college for one year; used to determine eligibility for most federal and state assistance and some private scholarships.

– The FAFSA Calculates your EFC using a formula that combines things like income, family size and other factors

– Depending on many factors, a family may end up paying more or less than this amount.

Cost of Attendance

• COA is an estimate made by each college of the expenses usually incurred by students for one year.

• Colleges may have more than one COA depending on the different programs of study and different living arrangements.

Colleges Calculate Your “Need”

COA EFC NEED

Dependency Status

Independent Students must be either:

• Born before January 1, 1991• Married• Graduate or professional student• Veteran or currently serving on active duty • Have legal dependents other than a spouse, for whom more than

50% of the support is provided• Orphan, ward of the court, or in foster care after the age of 13• Emancipated minor or in legal guardianship, determined by a

court with proof• Unaccompanied youth who is homeless or at risk of being

homeless

Who is a “Parent”?

• BIOLOGICAL parent(s) the student lives with (NEW: you need both of their taxes even if not married but living together)

• STEP-PARENTS married to your custodial parent

• ADOPTIVE Parents (if adopted before age 13)

• Grandparents and Legal Guardians are NEVER considered parents

• FAFSA dependency may not be the same as for taxes (it does not matter who claims the student, it matters who you live with!)

Filing Taxes Correctly

• Colleges CAN compare admissions applications with FAFSA

• Colleges HAVE REJECTED taxes and made families redo

• If you are married, the only correct options are Married Filing Jointly or Married Filing Separately.

• Spouses should not be claimed as dependents or left off taxes even if undocumented

• Unemployment is taxable income

What gets counted?

Main Factors:

• Adjusted gross income • Actual household size – NOT the number of people claimed– Who do parents support more than 50%?

• Number of children (not parents) in college• Student income (any amount over $6,000) • Untaxed income• Assets

Untaxed Income

• Child Support (for all children) for 2013• Contributions to tax deferred pension and

savings (i.e. 401k or 403b)• Untaxed IRA and pension distributions• Veterans non-education benefits • Workers comp or disability (from employer,

NOT SSI)

Assets• Rental/2nd Property Net Value– Market Value - Amount still owed– Obvious to colleges – line 17 of tax return

• Savings/Checking Acct. balance:– Pay off things now (mortgage) to have less in your savings

/checking– Self-reported but they have the right to ask proof

NOT COUNTED:• Small business w/ <100 employees: protected• Retirement: protected

Step 2 – Student Aid Report (SAR)REQUIRED WHETHER FAFSA DONE AT SCHOOL OR HOME!

Step 3 – Update FAFSA/Request Transcript • We will request your 2013 taxes in February.

Please file as soon as possible.

• NEW: IRS tax transcripts: all students will request an IRS tax transcript for verification purposes! This can be done in school 2 weeks after taxes are electronically filed. Please e-file if possible!

Step 4 – Complete Verification Required for most students

Step 5 – Compare & Appeal Award Letters

• If you have financial circumstances not indicated on the FAFSA, you may be able to appeal to ask for more aid.

• Some colleges more receptive than others. • IMPORTANT: Document your situation – i.e. medical,

nursing home, private school tuition bills, etc. Data trumps emotion!

Unmet Need

• Very few colleges claim to meet 100% of need • Unmet need occurs when a college cannot

meet your “financial need”• Our goal is for students to attend schools that

can meet as much of their need as possible, (with as few loans as possible) after the EFC is subtracted – we call these “money schools”

Ways to Pay• Financial aid (free money and student loans • Savings! (college is more important than Xmas or prom!)• Payment plans – often 5 payments/semester • Student work (be careful, $6,000+ affects EFC in future)• Home equity loans (not recommended)• IRA/401 distributions (NOT recommended – will affect AGI for

next year)

• NOTE: If you pay out of pocket, you can receive education tax credits up to $2500 per student (American Opportunity Credit)

Exit Interviews

Required for all seniors before graduation

Who? Parent, student and a UICCP college counselor

When? April and May

Why? Review final award letter for attending college and understand/plan for financial obligation

How? After scholar and family decide on attending college, contact a college team member to schedule an interview.

Scholarships! • Students are provided extended scholarship lists in

the College Seminar class – they will receive the updated list on Monday, October 7th This list is updated throughout the year with new opportunities. They are also registering on College Greenlight.

• Students are encouraged & responsible for working on scholarship applications outside of school hours; the College Seminar Class is currently focused on College Applications.

Scholarships! • College Seminar Scholarship Requirements:

– 7 Scholarships completed throughout the end of semester 1, and semester 2

– For credit, students must apply to “quality” scholarships that require more work (raffle & lottery scholarships are sometimes questionable)

• When students apply early, how do they get credit?– Students MUST keep all essays, copies of scholarship applications,

and confirmations that they submitted to turn in to Ms. MacCallum when they are due for class in order to receive credit for them

• REMEMBER:– Students CAN apply to more than 7, and we encourage that!– If Transcripts or recommendations are required, students should

give 2 weeks notice to counselors

Action Items• Set up a meeting with your counselor if you have personal questions• If student doing FAFSA at home, let us know and provide SAR• If you have a special/changed financial situation or marital status,

have your students tell their counselors ASAP• Optional parent nights for FAFSA: TBA• Do 2013 taxes as EARLY AS POSSIBLE • Encourage students to bring in ALL college paperwork • Help students apply for scholarships and track deadlines• Don’t make any final decisions until ALL award letters are received

and exit interview is completed • SAVE, SAVE, SAVE for college!

Questions?