September 23, 2015

Top 10 Things You Must Know About Financial Aid

Glenn HS Presentation

1.) Everyone Should Apply for Aid• Many sources of aid are available. If you apply, you may be

eligible for:• Scholarships• Grants• Work-Study Programs• Loans

• Questions to ask:• Does financial need have an impact on admissions

decision?• Does applying early decision affect financial aid eligibility?• How can I access your Net Price Calculator?

DEADLINES

2.) Meeting Deadlines is Essential• Know each college’s priority deadlines:

• Read and retain all the communications you receive from the college or university

• Read each school’s website or contact each school’s Financial Aid Office

• Merit scholarship deadlines• Early action/ early decision deadline• Regular decision deadline• Deadlines for supplemental documents-

tax returns, W-2s, etc

Applications

3.) All aid applications are not the same• Federal Aid- Free Application for Federal Student Aid (FAFSA):

• Required by all schools awarding federal aid; available online at www.fafsa.ed.gov

• Institutional Aid- PROFILE (or institutional application)• Required by some schools; available online at

www.collegeboard.com• State Aid- varies by state• Scholarships- specific to organization

• Be alert for scholarship scams!

What’s an Expected Family Contribution (EFC)

4.) The “Expected Family Contribution” is…• The amount a family can contribute based

on analysis of the FAFSA and/or the PROFILE data:

• Not necessarily the amount the family will pay for college

• The family contribution may be the same regardless of which college the student attends—although….

• The aid award can differ to college to college

Cost of Attendance

5.) Cost of Attendance should not be a mystery• Direct Costs = Billed through the institution

• Tuition, fees, housing, meal plan• Indirect Costs = Related educational

expenses• Books, supplies, transportation,

personal expenses, insurance• The Cost of Attendance reflects both direct

and indirect costs• Net Price Calculator- new tool that schools

are required to post on website to breakdown costs.

6.) Definitions are important!• Eligibility:

• A defined criteria is met• Need (aka demonstrated need, financial need):

• The difference between the Cost of Attendance (COA) and the Expected Family Contribution (EFC)

$35,000 COA

-$17,000 EFC

$18,000 demonstrated need

7.) Categories of Financial Aid• Merit:

• Often from the institution, but can also come from foundations, scholarship organizations, etc.

• Need-Based• Calculated from FAFSA/PROFILE data• Sources can be federal, state,

institutional

8.) Types of Financial Aid• Federal grants- Pell, SEOG, SMART,TEACH• Federal Direct Loans• Federal Work Study• State grants• Institutional grants• External scholarships• Private loans

9.) Decoding the Aid Award Letter

Compare:

• Costs of Attendance (COA)

• Total amount of aid• Types of aid offered• Amount of gift aid

(grants/scholarships)• Amount of loan

(interest rate, repayment terms, etc)

Ask Questions:

• Is the grant renewable?• What are the terms for

renewing? (GPA, hours enrolled, course reqs)

• Is amount of work-study realistic

• Will aid change from year to year

• Will aid increase if COA increases?

Financial Aid Appeal

10.) Special Circumstances Matter• When the numbers don’t tell the whole story

• Unique family situation not evident on the FAFSA• Prior debt

• When the situation is expected to change (or has)• Change in employment• Medical expenses• Divorce

• Must be able to provide documentation• Copies of bills, canceled checks, termination

letters, etc

Prior Prior Year starts in 2017-2018

• Starting in the 2017-2018 academic year, the FAFSA will start using prior prior year tax data

• Using two-years prior tax info is intended to increase the form’s accuracy and provide an earlier and more accurate idea of anticipated aid and college costs

• The IRS Data Retrieval Tool (DRT) will be readily available and allows automatic population of a student’s FAFSA with tax return data and decreases the need for additional documentation