applying for financial aid 2011-2012 academic year financial aid services telephone: 860-439-2058...
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Applying for Financial Aid2011-2012 Academic Year
Financial Aid ServicesTelephone: 860-439-2058
E-Mail: [email protected]
What you will learn:
• What financial aid is
• Sources of financial aid
• When and how to apply
• How to pay the bill
Helpful Advice
• Visit college web sites for application requirements and deadline dates
• Colleges are required to have a net price calculator by August 2011. Some colleges already have them on their web sites.
More Advice www.finaid.com
Better Business Bureauwww.bbb.com
Studentaid.ed.gov
Funding a College Education Who Are the Players?
Family
Federal & State Governments
Outside agencies
The college
How Much Financial Aid Will Be Offered?
• Dependent on a family’s ability to pay • Dependent on the funding available
from the federal and state governments and the college.
• Were the financial aid applications and supporting documentation submitted by the deadline date
Definition of Financial NeedCost of Attendance
Expected family contribution (EFC)
Other financial assistance
Financial need
LESS
LESS
EQUALS
Comparison of Need by Cost(Assumes full-time enrollment)
4 Year Private 4 Year Public 2 Year Public
Cost of Education $50,000 $20,000 $ 7,000
Expected Family Contribution (EFC) $10,000 $10,000 $10,000
Need $40,000 $10,000 0
Meeting the Full Need and Gapping
College A B
Cost of Education $50,000 $50,000
Expected Family Contribution (EFC)
$ 10,000 $ 10,000
Need $40,000 $40,000
Aid Awarded $40,000 $30,000
Unmet Need 0 $10,000
Cost of AttendanceTuition and FeesRoom and BoardBooks and SuppliesTransportationStudy Away ExpensesDisability ExpensesMiscellaneous and Personal Expenses
(purchase of a computer)
Family Contribution Components
Parent(s)’ 2010 income Including untaxed income such as: child support
received, annual contributions made to a retirement plan Student’s 2010 income Value of parent’s assets
Exclude principal value of retirement accounts Include cash, college savings plans, other savings, trusts,
bonds, money market, CD’s. Value of student’s assets
Include cash, savings, trusts, bonds, money market, CD’s. Number of household members Number of dependents attending college at least
half-time
Eligibility Assessed Using Federal Methodology
Based on information reported on the FAFSA (Free Application for Federal Student Aid, 2011-2012)
Formula determined by Congress that is used to determine eligibility for federal and most state funds
Home equity excludedNo information from the non-custodial parentCustodial parent and stepparent incomes are
included Parent contribution divided by the # of
dependents attending college at least half-time
Eligibility Assessed Using Institutional Methodology
Based on information provided on the CSS Profile or a custom institutional application
Used by schools to award their own funds Home equity added in Information from the non-custodial parent is
required Tax losses may be added back Depreciation associated with a business or
investment property may be added back Parent contribution might not be divided equally
and no allowance for graduate school Minimum student contribution
Remember! Grants/Scholarshhips do not have to be
repaid (unless a student withdraws during a term). Grants are typically awarded based on need and scholarships are typically awarded based on merit or athletic ability.
Student loans must be repaid Federal Work Study provides
income, which does not have to be repaid, from a part-time job
Grants/Scholarshhips do not have to be repaid (unless a student withdraws during a term). Grants are typically awarded based on need and scholarships are typically awarded based on merit or athletic ability.
Student loans must be repaid Federal Work Study provides
income, which does not have to be repaid, from a part-time job
Sources of Need Based Aid Federal Grants
(Funding for 2011-2012 has not yet been determined)Federal Pell Grant – $5,550Federal SEOG Grant – up to $4,000Federal TEACH Grant – up to $4,000
Studentaid.ed.gov for detailed information about these programs.
Sources of Need Based Aid – Federal Loans and Student
Employment studentaid.ed.gov
Federal Perkin Loans – up to $5,500 Interest rate is 5% fixed Program may change for next year
Federal Direct Stafford Loan – 1st year = up to $5,500 ($3,500 subsidized) 2nd year = up to $6,500 ($4,500 subsidized) 3rd-5th year = up to $7,500 ($5,500 subsidized) Interest rate is 4.90% Fees = 1% with an up front rebate of .5%
Federal Work Study - no limit but average range is $1,200 to $2,000 Students work approximately 8 – 10 hours per week Most paychecks are issued via direct deposit
Sources of Need Based State Aid ctdhe.org
State grants for CT residentsConnecticut Capitol Scholars, www.ctdhe.org
$500 -$3,000Deadline is February 15!!!
Connecticut Independent College Grant – award amount determined by College
CT Aid for Public College Student Grant – award amount determined by College
Can export Capitol Scholars Grant to these states: MA, RI, VT, NH, ME, PA-
Sources of Institutional Grants and Outside Resources
Institutional Grants/Scholarships are provided by the college either from tuition revenue and/or endowed funds and annual gifts.
Outside Resources – Employee Tuition BenefitNational Merit, Rotary, Garden Club, etc.
High school guidance officewww.finaid.org
Student Eligibility Requirements
• U.S. Citizen or eligible non-citizen• a permanent U.S. resident with a Permanent
Resident Card (I-551);– a conditional permanent resident (I-551C);– the holder of an Arrival-Departure Record (I-
94) from the Department of Homeland Security showing any one of the following designations: “Refugee,” “Asylum Granted,” “Parolee” (I-94 confirms paroled for a minimum of one year and status has not expired) or “Cuban-Haitian Entrant.”
Student Eligibility Requirements, con’t.
• If male and age 18 must register for Selective Service;
• Have a valid social security number;• Must be enrolled as a regular student in an
eligible degree or certificate program;• Must have a high school diploma or an
equivalent;• While enrolled in college, must make
satisfactory academic progress.• Must have resolved any drug conviction
issue.
Forms Required
College A B C
FAFSA X X X
CSS Profile X X
College Form X X
Tax Returns & W2 Statements
X
Non-Custodial Parent’s Form
X X
Business Supplement
X X
Due Date 03/15 02/15 02/01
FAFSA on the Web Homepagewww.fafsa.ed.gov
Free Application for Federal Student Aid, 2011-2012
FAFSA• Can’t file prior to 01/01/2011• Required by all schools• Used to determine eligibility for
federal/state need based aid• Student and one parent should apply
for a pin # now to sign the FAFSA electronically
www.pin.ed.gov
Helpful Tips When Completing the FAFSA
Print out the FAFSA on the Web WorksheetHave your 2010 federal tax return and W2
statements in front of you or prepare a draft 2010 federal tax return.
You can also use your 2009 federal tax return if income will be similar to 2010.
It is okay to estimate!
Helpful Tips When Completing the FAFSA
• Parents and students must provide their SSNs – if a parent does not have a SSN, enter zeros.
• When reporting assets, report the value as of the date the FAFSA is completed minus the debt owed. Investment property Stocks, bonds, money market fundsCD’s, mutual funds, stock options, trustsCoverdell savings accounts, college savings
plansBusiness/investment farm value
Helpful Tips When Completing the FAFSA
• Assets not to report:– Value of your home– Retirement plans (pension funds,
annuities, non-education IRAS, Keogh plans)
• Must also report as income:– Annual contributions to a retirement plan– Housing allowance paid to members of
the military, clergy and others– Child support
The Student Eligibility page collects basic Title IV eligibility information, such as citizenship and drug convictions.
The status message on this page indicates early Title IV eligibility for the student based on their valid Social Security Number, citizenship status, and drug convictions.
If you perform an action that is successful, the system will provide you with a GREEN box and a success message.
What is the Federal Definition of a Parent?
• If your parents are divorced or separated, answer the questions about the parent you lived with more during the past 12 months.
• If you did not live with one parent more than the other, give answers about the parent who provided more financial support during the past 12 months.
What is the Federal Definition of a Parent?
• If your parent has remarried, your must include information about the stepparent.
• If your parent is widowed or single, answer the questions about that parent.
• The following people are not your parents unless they have adopted you: grandparents, foster parents, legal guardians, older brothers or sisters, and uncles or aunts.
What if parent information is not available?
– Student has no contact with the parent(s) and does not know where they are (and the student has not been adopted by someone else); or
– Student has left home due to an abusive situation.
• Must gather third party documentation to verify your living situation: attorney, court officer, social worker
• Submit that third party documentation to the college that you will most likely attend.
When the parent selects a check box, the full FAFSA question will appear with a text box to provide a dollar amount.
• The signature process, for the student and parent, is contained within one page.
• If the student would like to review their information before signing their FAFSA, they will need to click on the “View or Print your FAFSA information” link at the top of the page.
If the student selects the “View or Print your FAFSA information” link at the top of the Sign & Submit page, their information will display in this format.
The confirmation number will contain the student’s randomly generated identification number.
FAFSA Follow-Up
Frequent FAFSA Errors• Social Security Numbers• Divorced/remarried parental information• Income earned by parents/stepparents• Untaxed income• U.S. income taxes paid • Household size• Number of household members in college• Real estate and investment net worth
https://profileonline.collegeboard.com/
CSS/Financial Aid Profilehttps://profileonline.collegeboard.com/Not required by all schools$25 for the initial application and $16
for each additional collegeNon-Custodial Parent’s Form = $25Tool used to determine eligibility for
need-based institutional grants.
CSS Profile Tips• In addition to the assets reported on
the FAFSA, you will be required to report:– Value of your home, purchase price,
purchase date and current debt– Value of your retirement accounts (but
not for all schools).
Tuition & Fees $40,000Room & Board 8,000Books & Supplies 1,000 Parent Contribution $ 2,250Miscellaneous 500 Student Contribution $ 1,750Transportation 500 Family Contribution $ 4,000Total $50,000 Need $46,000
Financial Aid Award (Cost less Resources)
Federal Pell Grant $ 2,500Federal Supplemental Educational Opp. Grant $ 2,500Connecticut Independent College Grant $ 5,000Connecticut Capitol Scholars Program $ 3,000Federal Perkins Loan $ 1,000Federal Stafford Loan $ 3,500Federal Work Study $ 1,300College Grant $27,200
Total Award $46,000
Sample Financial Aid Award – Full Need Met
How Aid is Applied to the Bill
Tuition & Fees = $40,000 Room & Board = 8,000 Total Charges = $48,000
Less aid:
Grants $40,200 Loans $ 4,500Total Aid Applied to the Bill $44,700Balance Due $ 3,300Usually paid in two installments: $1,650 August 1 $1,650 January 1
Federal Work Study is not applied to the bill.
What if my family contribution seems unreasonable?
Compare aid awards from similar colleges. If the family contribution is significantly different:
• Ask how the contribution was determinedIs there a contribution expected from the
non-custodial parent? Were losses reported on the tax return added
back?What is the minimum student contribution?How were family members in college treated?Was home equity included in the analysis?
• Request procedures for an “Appeal” or “Review”
How do I pay the bill? Prepare monthly income/expense flow Put surplus monthly income to work for you with a
payment plan. Each college arranges with a third party provider to participate in one or more plans. Here are some samples:www.afford.comwww.tuitionpay.com
Use savings but keep enough to cover surprises! Investigate home equity loan, or other private parent
loans. Factors to consider: age, job market, other children to educate, income/debt ratio, credit rating
Federal PLUS Loan
Borrowers are parents of dependent undergraduate students
Annual loan limit: cost of attendance minus other aid
Fixed interest rate (Direct Loan) – 7.9%Loan fees - up to 4%Repayment begins 60 days after the loan is
fully disbursed.Can defer payments (interest will accrue)
while student is enrolled at least half-time.
Aid Award in Subsequent YearsLoan amounts increase as the student
advances to the next grade levelIf parent income/assets increase, the parent
contribution will most likely increase.If student assets decrease, the student
contribution will decreaseIf the number of dependents enrolled in
college changes, the parent contribution will change.
College institutional funding levels change from year to year
Questions to Ask
• What forms must be submitted and by what date?
• Does the school meet the student’s full demonstrated need?
• What was the average loan balance for the last graduating class?
• What happens to the aid offered if the student receives an outside scholarship?How does an aid award change over 4 years?
Thank you for your attention. What questions can I answer
for you?