What Every Graduate Financial Aid Administrator

Should Know AboutUndergraduate Financial Aid

Karen Sokol Director of Financial Resource

ManagementSeton Hall Law

Joe WeglarzExecutive Director,

Student Financial ServicesMarist College

Overview of Marist College

Total number of students: Undergraduate: 4,300 Graduate: 1,000

Total number of applications received for 2009-10: 9,900+

85% of students receive some form of financial aid Marist awards over $30 million in institutional aid Marist processes over $45 million in loans

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EASFAA Conference May 17 - 20, 2009 Washington, D.C.

Overview of Seton Hall Law

Total number of students: 1,100 Total number of applications received for 2008

Class: 3,536 85% of students receive some form of financial aid Seton Hall Law awards over $8 million in

institutional aid Seton Hall Law awards over $30 million in loans

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Agenda

Forms

Types of Aid

Conclusion

Q & A

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Why?

Student Expectations

Marketing Pieces: Marist Affordability Guide

Aggregate Loan Limits

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The Purpose of Financial Aid

Primary goal is to assist students in financing their education and is achieved by:

• Evaluating family’s ability to pay

• Distributing limited resources in an equitable manner

• Providing a balance of gift aid and self-help aid

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What is Financial Aid?

Scholarships

Grants

Loans

Employment Opportunities

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Forms

FAFSA CSS Profile Institutional

Application

FAFSA Need Access or other

Financial Aid Form Institutional

Application

Undergraduate Graduate

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The College Scholarship Service (CSS)Financial Aid Profile Used by some colleges and universities to award their own

private financial aid funds Students should register at least two weeks before the

earliest school or scholarship program filing date you need to meet.

The student completes a personalized PROFILE application based on his/her information and college choices

All students are charged $25 for the initial application. This covers the costs of creating your PROFILE Application and the first school report. You will be charged $16 for each additional college or program to which you want information sent.

Students register for the PROFILE service online at https://profileonline.collegeboard.com/index.jsp

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What Is The EFC?

EFC = Expected Family Contribution(Most schools use to determine and award financial aid)

Cost of Attendance

• Determined by each school• May include:

— Tuition and Fees

— Room and Board

— Books, Travel, and Miscellaneous Expenses

Cost of Attendance

(minus)

The Family’s EFC

= Financial Need

Cost of Attendance

(minus)

The Family’s EFC

= Financial Need

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5 Factors Considered in Calculating the EFC:1. Income2. Assets3. Household size 4. Number of students in

college 5. Age of older parent

Examples of Assets:•Educational IRA Accounts•529 Savings Plan•Prepaid Tuition Plan•Trusts•Inheritance•Stocks•Cash•Mutual Funds

Examples of Assets:•Educational IRA Accounts•529 Savings Plan•Prepaid Tuition Plan•Trusts•Inheritance•Stocks•Cash•Mutual Funds

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Undergrad: Dependency Questions

Were you born before January 1, 1986? As of today are you married? (Answer "Yes" if

you are separated, but not divorced.) At the beginning of the school year 2009-2010

will you be working on a master's or doctorate program (such as an MA, MBA, MD, JD, PhD, EdD, or graduate certificate, etc.?

Are you currently serving on active duty in the U.S. Armed Forces for purposes other than training?

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Undergrad: Dependency (Cont.)

Are you a veteran of the U.S. Armed Forces? Do you have children who receive more than half of

their support from you between July 1, 2009 and June 30, 2010?

Do you have dependents (other than children or spouse) who live with you and who receive more than half of their support from you, now and through June 30, 2010?

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Undergrad: Dependency (Cont.)

At any time since you turned age 13, were both your parents deceased, were you in foster care or were you a dependent or ward of the court?

Are you or were you an emancipated minor as determined by a court in your state of legal residence?

Are you or were you in legal guardianship as determined by a court in your state of legal residence?

At any time on or after July 1, 2008, did your high school or school district homeless liaison determine that you were an unaccompanied youth who was homeless?

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Undergrad: Dependency (Cont.)

At any time on or after July 1, 2008, did the director of an emergency shelter or transitional housing program funded by the U.S. Department of Housing and Urban Development determine that you were an unaccompanied youth who was homeless?

At any time on or after July 1, 2008, did the director of a runaway or homeless youth basic center or transitional living program determine that you were an unaccompanied youth who was homeless or were self-supporting and at risk of being homeless?

"YES" to ANY of these questions on the FAFSA - "Independent"

"NO" to ALL of these questions - "Dependent“ EASFAA Conference May 17 - 20, 2009 Washington, D.C.

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Undergrad: Dependency Overrides

If you have reason to appeal your dependency status, you must clearly demonstrate an adverse family situation in order for us to consider you independent for financial aid purposes. This is called a dependency override, and is considered on a case-by-case basis.

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Important Points

Graduate students are independent Financial aid and state requirements may

vary with institutions The FAFSA must be filled out or renewed every year

the student is in college in order to be eligible for financial aid

Don’t assume that all colleges will meet 100% of your demonstrated financial need

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Important Points– Do Either of These Apply?

529 College Saving Plans: For a student who must report parental information, the

accounts are reported as parental investments on the FAFSA, including all accounts owned by the student and all accounts owned by the parents for any member of the household.

Dislocated Worker: In, general, a person is considered a dislocated worker if

they meet one of the conditions specified in questions 85 and 103 on the FAFSA

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Frequent FAFSA Errors

Divorced/remarried parent information Income earned by parents/step-parents Untaxed income U.S. income taxes paid Household size Number of post-secondary education students Real estate and investment net worth

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Undergraduate: Types of Gift Aid

Federal• Federal Pell Grant: $976 - $5,350• Supplemental Educational Opportunity Grant (SEOG)• Academic Competitiveness Grant (ACG)

– 1st academic yr. - $750– 2nd academic yr. - $1,300

• National Science and Mathematics Access to Retain Talent Grant (SMART)

– 3rd yr. - $4,000– 4th yr. – $4,000

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Undergraduate: Types of Gift Aid

State• NY State TAP: $500 – 5,000 • NJ State TAG: $2,850 at a County College to $10,718

at an Independent College or University• Vermont State Incentive Grant $500 – 10,800 for

2008-09• Rhode Island State Grant-$250 – 1,200

Institutional• Need-Based Grant in Aid

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Undergraduate: Types of Scholarship Aid

State• NY State Scholarship for Academic Excellence• NY Lottery-Leaders of Tomorrow Scholarship• NJ STARS, NJ STARS II, Edward J. Bloustein Distinguished Scholars• Urban Scholars Award, NJ World Trade Center Scholarship

Institutional• Merit Scholarship• Athletic Scholarship• Music scholarship• Debate Scholarship

Private• Endowed and Outside Scholarships

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Self-Help Aid

LOANS

Federal Stafford

Federal Perkins

Federal PLUS

Private

EMPLOYMENT

• Federal Work-Study (Need-based)

• Funds generally go directly to student

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Federal Stafford Loan (Subsidized and Unsubsidized)

Subsidized Stafford: • Need-Based• Government pays interest earned

while in school

Unsubsidized Stafford: • Financial need is not a consideration• Interest is accruing while

the student is in school• Interest payments can be made or

deferred

Subsidized Loan:

Effective 07/01/09 fixed interest rate of 5.6%

Subsidized Loan:

Effective 07/01/09 fixed interest rate of 5.6%

Unsubsidized Loan:

Effective 07/01/09 fixed interest rate of 6.8%

Unsubsidized Loan:

Effective 07/01/09 fixed interest rate of 6.8%

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Annual Stafford Loan Limits $5,500 Freshman

0 - 29 earned credits

$6,500 Sophomore 30 - 59 earned credits

$7,500 Junior & Senior 60 - 89 earned credits for Junior 90-120 earned credits for Senior

BASE

ANNUAL

LOAN

LIMITS

Grace period and deferment provisions:– 6 months after student falls below half-time status (6 credits) or graduates

Grace period and deferment provisions:– 6 months after student falls below half-time status (6 credits) or graduates

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Federal Perkins Loan

Made through participating schools to undergraduate, graduate and professional degree students

Offered to students who demonstrate financial need Available to students enrolled full time or part-time Repaid to your school Maximum Annual Loan Amount – $5,500 for

undergraduate students with an aggregate maximum of $27,500. $8,000/year for graduate and professional students with an aggregate maximum of $60,000

Interest rate of 5% with a nine-month grace period Repayment period up to 10 years

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Federal PLUS Loan Borrowers are parents of dependent

undergraduate students Annual loan limit: cost of attendance minus all

other financial aid Fixed Interest of 8.50% for FFEL or 7.9% for Direct

Lending Repayment begins after final disbursement for

the year. However, beginning in the 2008-2009 academic year, parents are able to apply for a deferment. They must contact the lender.

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Private Loans

• Loan in the student’s name

• Credit-based

• Can borrow up to the cost of attendance minus other aid

• The interest rates and terms vary with lender

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Graduate Aid: Grants

Federal• Federal Pell Grant: Graduate Students not eligible• Supplemental Educational Opportunity Grant $0• Academic Competitiveness Grant (ACG) $0• National Science and Mathematics Access to Retain Talent Grant (SMART)

$0State

• NY State TAP: $75-550• NJ State TAG: $0• (NJ) EOF: $2,850 maximum• (NY) Clyde Ferguson: varies – NJ law schools only

Institutional• Need-Based Grant in Aid – varies depending in institutional funding

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Graduate Aid: Scholarships

State• None?

Institutional• Merit Scholarships• Endowed Scholarships

Private• Outside Scholarships

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Graduate Aid: Loans

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Subsidized Stafford Loans – • 6.8% interest rate, no reduction in the interest rate• $8,500 annually

Unsubsidized Stafford Loans – • 6.8% interest rate• $12,000 annually

Perkins Loans – • 5% interest rate• Up to $8,000 annually

Graduate Plus Loans – • 7.9% interest rate (Direct) or 8.5% interest rate (FFEL)• COA less other aid

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Graduate Aid: Student Employment

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• Federal Work Study

• Research Assistants

• Graduate Assistants

• Fellowships

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Scholarship Search College Board

www.collegeboard.com/paying

FastWeb www.fastweb.com

Sallie Mae www.thesalliemaefund.org

Scholarship America www.scholarshipamerica.org

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Questions?

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