1 / 43

Financial Aid: Back to Basics

Financial Aid: Back to Basics. Andrea M. DeLuca, Assistant Director. Elizabethtown College Financial Aid Office. Presentation Objectives. Familiarize with terminology Outline application process Describe aid sources List resources available Reduce your anxiety. Getting Started.

dorie
Download Presentation

Financial Aid: Back to Basics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Financial Aid:Back to Basics Andrea M. DeLuca, Assistant Director Elizabethtown College Financial Aid Office

  2. Presentation Objectives • Familiarize with terminology • Outline application process • Describe aid sources • List resources available • Reduce your anxiety

  3. Getting Started • Campus visits • Personal interviews with admissions and financial aid • Create college spreadsheet • Complete admissions application by December of senior year • Note financial aid deadlines • Complete federal taxes early

  4. When beginning your college search, DO NOT rule out any school based solely on the cost. Only eliminate schools once financial aid is known and affordability is determined! A word of advice:

  5. Role of the Financial Aid Office • Resource for family • Responsible to federal government • Administer state funding • Steward of college funds • Student advocate

  6. Do You Qualify for Financial Aid? To be considered for financial aid, you must: APPLY FOR IT!

  7. Potential Applications • Free Application for Federal Student Aid (FAFSA) • Institutional application • CSS PROFILE Form • Civic, religious, service scholarship applications

  8. When Do You Apply For Financial Aid? • The earliest that you may submit the FAFSA is January 1st of the senior year. • May 1st is the deadline to apply for a PHEAA State Grant (PA Residents Only). • Check with each institution to determine their own financial aid deadline. • Review private sources for their deadlines.

  9. Who Completes the Application? • Student • Parents • Natural/adoptive • Single: divorced, separated, widowed • Remarried: Natural and step (who you live with) AND

  10. Application Suggestions • Schedule time to do it together. • Be aware of application deadlines. • Complete federal tax return & schedules as early as possible. • Complete all items – don’t leave any blank spaces

  11. Privacy Matters Under the Family Educational Rights and Privacy Act (FERPA), all information submitted on applications is protected. The data is treated as strictly confidential, maintained in a secure area, and only released to a third party upon obtaining student’s signature.

  12. FAFSA on the Web (FOTW) • www.fafsa.gov • Be sure to use the “.gov” and not “.com” • www.pin.ed.gov • Obtain a PIN to sign the FAFSA

  13. Why get a federal PIN?Personal Identification Number • Improves speed of application process • Used as “signature” on current and future FAFSA and loan applications • Used to make corrections to the FAFSA • Student/parent(s) should apply for their individual PIN – only one parent will need a PIN. www.pin.ed.gov

  14. Where does your information go? FAFSA Web or paper Federal Government (data entry, analysis, matches) SAR $ $ $ State (grant award) Student Colleges $ $ $ $ $

  15. Verification • FAFSA data checked against source of data for accuracy • Common documents requested include: • 2013 Federal Tax Data • W-2 Forms • Verification Worksheets • Review performed by the Financial Aid Office

  16. Students and parents are the primary source of funds for postsecondary education and are expected to contribute to the extent they are able. Basic Premise

  17. Aid Sources • Federal government • State government • Postsecondary institutions • Private agencies

  18. Philosophies of Meeting Need Dependent upon: • Funds available to meet applicants’ need • Specific goals of enrollment • Amount of federal campus-based funds • Special circumstances

  19. Cost of Education • Direct Costs • Tuition • Fees • Room • Board • Indirect Costs • Books & Supplies • Transportation • Personal Expenses

  20. Financial Aid Eligibility Cost of Education - Expected Family Contribution Student’s Financial Need

  21. Parent Contribution + Student Contribution Expected Family Contribution

  22. EFC Determining Factors • Parental Income (Taxed and Untaxed) • Parental Assets (Excluding Primary Home & Tax-Sheltered Retirement Plans) • Student Income (amounts over $6,000) • Student Assets • Family Size/Number in College • Age of the Older Parent

  23. Items Not Included in the Federal Formula • Consumer Debt • Prior Educational Debt • Auto Expenses Permitted With Professional Judgment • Parent in College Expenses • Elementary/Secondary Tuition for Siblings • Medical & Dental Expenses

  24. Types of Financial Aid • Gift Aid • Scholarships • Grants • Self-Help • Employment • Loans

  25. Factors Which May Influence the Financial Aid Package • Academics • SAT’s • Class Rank • H.S. Attended • AP Courses • Predicted G.P.A. • Academic Track in High School • Diversity- Gender/Ethnicity • Athletic Ability • Talent- Theater, Art • Activities- Yearbook, Government • Geographic Diversity • Legacies

  26. How Gift Aid is Awarded • Merit-based aid (Scholarships) • Academic ability • Special talent/achievement • Program of study • Need-based aid (Grants) • Financial need • Largest source of gift aid funds

  27. Federal Grants PELL • “Floor” of Financial Aid Package • Maximum Award: $5,645 • EFC determines eligibility ($5,081 or less) • Limited to 6 years of full-time eligibility SEOG • “Priority to Pell Grant recipients • Award Range $100 to $4000 based on school’s funding • Determined by Financial Aid Office

  28. PHEAA State Grant • Initial application = FAFSA • PHEAA online application notice sent • Must be a PA resident • Award value up to $4,362 • Correlates to cost of college

  29. Employment (Self Help) • Spending money • Time management • Focused academics • Support group • Job references (Recommended schedule: 6-10 hours a week)

  30. Types of Employment • Federal Work Study (FWS) • Part-time employment on or off campus • Partially subsidized by federal government • Institutional Employment • Part-time employment on campus • Fully subsidized by college

  31. Student Loans • Borrowed money to be paid back with interest. • An investment of students in themselves. • Available to all undergraduate students

  32. Federal Student Loan • For 2013-2014, loans have a fixed interest rate of 3.86 % (set annually with an 8.25% cap) • Annual eligibility based on student’s grade level

  33. Federal Student Loan • Loan fees of 1.072% (increased from 1.051%) are charged. • Principal deferred while enrolled at least half-time (minimum of 6 credits). • Six-month grace period after last date of attendance. • Standard 10-year repayment term (other options available).

  34. Federal Perkins Loan • Students with exceptional need • Loan amount determined by Financial Aid Office • Interest rate: 5% • Loan maximums: $5,500 per year • 9-month grace period • Deferment/cancellation provisions

  35. Private Scholarship Searches • Always FREE • Never provide personal information such as your SSN • Seek help finding scholarships through: • High School Guidance Office • Financial Aid Office • World Wide Web Sites http://www.finaid.com http://www.fastweb.com http://www.collegeboard.org

  36. Outside Scholarships • Must be reported • Individual institutions will handle scholarships differently • Check policy of each institution

  37. Other Options for payment • 10-month interest-free payment plans • Assortment of bank plans • Institutional plans • Federal PLUS loans (6.41%, with a 10.50% cap) • Home equity loans (Pursue these options after college choice is made.)

  38. Professional Judgment The law provides the Financial Aid Office the flexibility to deal with special circumstances and conditions which are applied on a case-by-case basis after the original application has been filed.

  39. Types of Professional Judgment • Separation or divorce • Death of one parent • Loss of employment income • Loss of non-taxable income • Unusual medical expenses • Other unusual circumstances

  40. Must I Reapply? • Yes! Annually • Every year a new financial “snapshot” • Family circumstances may change • Income • Assets • Number in college • Number in household • Special circumstances

  41. Foundation: Base-Year Income • 2013 Federal Tax Return • 2014 Federal Tax Return • 2015 Federal Tax Return • 2016 Federal Tax Return 2014-2015 Academic Year 2015-2016 Academic Year 2016-2017 Academic Year 2017-2018 Academic Year

  42. Best Sources for Help • College financial aid office • PHEAA regional office • Local lenders • Local civic, religious, service organizations • High school guidance counselor

  43. Good Luck and Best Wishes! Elizabethtown College Financial Aid Office 717-361-1404

More Related