Student Financial Aid: What You Need to Know!Spring/Summer 2015

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What is Financial Aid?

– Financial aid helps pay the cost of attending college

– Some financial aid is based on need– Some financial aid is awarded based

on other criteria, such as grades or talent

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Types of Financial Aid

– Scholarships – free money– Grants – free money– Work Study– Loans

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Sources of Financial Aid

– Federal government

– New York State

– Colleges (Institutional Aid)

– Private sources

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Common Financial Aid Applications

• FAFSA – for federal student aid, the most commonly filed aid application

• New York State TAP application – for aid at colleges in New York State

• CSS Profile – institutional aid application required by some colleges

• Scholarship Applications – private, institutional or state programs

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What is the FAFSA?

• Free Application for Federal Student Aid

• Used to determine need-based aid eligibility• Calculates the Expected Family Contribution (EFC)

• Apply starting January 1st of senior year• Check with each college for due dates

• Available online at FAFSA.GOV• Be careful of scam websites!

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FAFSA.GOV

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FAFSA4caster @ FAFSA.gov

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FAFSA: Student Sections

• Student Information & Eligibility– Basic info: address, email, name of high school, citizenship

status

• College Information– Up to 10 colleges may be listed; can be updated by correction

• Dependency Determination– Questions that will determine student’s dependency status

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FAFSA: Parent, Income, & Signature Sections• Parent Information & Income

– Marital status, name, date of birth, SSN, state of residence– Household size, Number in college– Income from most recent tax return, untaxed income, asset

information

• Student Income• Signature Section

– Sign using the student and parent’s FSA ID

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Common Questions: FAFSA

• If we don’t think we qualify for need-based financial aid, do we still file the FAFSA?– Many families mistakenly believe they do not

qualify– Consult with colleges, FAFSA may be needed

for merit-based aid

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Common Questions: Assets

• Do you report your home value or retirement accounts on the FAFSA as an asset?– No, your primary residence and tax deferred

retirement accounts are excluded from FAFSA

• How are 529 college savings plans treated?– The value of 529 Plans, for all children, need to be

reported as a parent investment on the FAFSA

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Tips for Maximizing FAFSA Eligibility

• Students applying to the FAFSA should have zero income and assets, if possible– Avoid UGMA/UTMA custodial accounts or trust funds

• Tax-deferred retirement accounts (IRAs, 401Ks, etc.) are the best place to shift assets

• Lower savings account value by paying down debts or prepaying mortgages

• Don’t be afraid of 529 accounts!

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Expected Family Contribution (EFC)

• Amount family can reasonably be expected to contribute toward student’s college expenses

• Used to determine eligibility for federal grants, need-based aid at college

• Based on your responses to the FAFSA questions

• Stays the same across colleges

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Determining Need-based Aid Eligibility

Cost of Attendance (COA)

– Expected Family Contribution (EFC)

= Financial Need

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Cost of Attendance (COA)

– Tuition & Fees– Room & Board– Books, Supplies– Transportation– Miscellaneous

Personal Expenses

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Examples of Financial Need

College College

AACollege College

BBCollege College

CC

COACOA $ 11,000$ 11,000 $30,000$30,000 $60,000$60,000

- EFC- EFC 5,0005,000 5,0005,000 5,0005,000

= Financial = Financial Need Need $ 6,000$ 6,000 $ 25,000$ 25,000 $55,000$55,000

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Financial Aid Programs

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Federal Student Aid Programs• Pell Grant• Supplemental Educational Opportunity Grant

(FSEOG)• Work-Study• Perkins Loan• Direct Stafford Loan• Direct PLUS Loan

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Studentaid.ed.gov

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NYS Student Aid Programs

• Tuition Assistance Program (TAP)– Need-based, up to $5,165/year– For New York State residents only– Full or part-time study at approved school in

New York State– Based on NYS Income Tax information

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Apply for New York State Aid

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Other NYS Student Aid Programs

• NYS Science, Technology, Engineering and Mathematics (STEM) Incentive Program

• NYS Scholarships for Academic Excellence• NYS Achievement and Investment in Merit Scholarship

(NYS-AIMS)• NYS Masters in Education Teacher Incentive Scholarship

Program• NYS Math & Science Teaching Incentive Program

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Visit hesc.ny.gov for more info

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Applying for Institutional Aid

• Depends on funding and eligibility criteria at each college– Is the college need-blind or need-sensitive in admissions?– Does the college meet full need for low-income applicants?– Are there any merit-based opportunities for families that

don’t qualify for need-based financial aid?

• May require more applications than the FAFSA– Is the CSS Profile required?

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The CSS Profile

• Private application used by some colleges for awarding institutional aid

• Collects more income, asset, expense info than FAFSA– Non-custodial parent income, retirement account, home values,

etc.

• Application is not free, fee waivers are available• Apply starting October 1st of senior year online at

collegeboard.org

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CSS Profile @ collegeboard.org

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Tip: Use Net Price Calculators

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SUNY Net Price Calculator

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Other Sources: Outside Aid

• Private scholarship programs are widely available– sponsored by charity, business, religious, civic and minority

organizations

• Each have their own application process, eligibility criteria, and deadlines

• Inquire with each college about impact on financial aid package

• Be organized and start applying early!

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Scholarship Searching

• Online scholarship search websites– Fastweb.com– Collegeboard.org– Scholarships.com

• Check your local library, employer or union• Avoid scholarship scams

– Unnecessary fees, ID theft

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Questions?