The Novice Financial Aid Workshop

1. The Novice Financial Aid Workshop

2. F. Duane QuinnDirector of Training and Development American Student Assistance Diane PlaceAssistant Director of Financial Aid Bridgewater State College

3. History and Theory Determining Eligibility (need) EFC Formulas Principles of Packaging Professional Judgment Resolution of “C” Flags Agenda

4. History of Need Analysis: • Need Analysis Agreements (50’s - ‘75) • Uniform Methodology (‘75 - ‘86) • Congressional Methodology (‘86 - ‘92) • Federal Methodology (‘92 - ‘present) • Institutional Methodology -Resource Analysis (‘89 - present)

5. Common Precepts of Need Analysis: • Use the prior year (base year) income • An indication of current financial strength • Verifiable • Consistent • Available

6. Common Precepts: (Cont’d) • Deal with the family in their current circumstances • Apply “Horizontal” and “Vertical” equity • Treat unusual circumstances on an individual basis

7. Parents and students are responsible for financing education costs......… Up to their ability. Theory of Need Analysis

8. The student and her family will benefit the most from higher education and should pay for it...... Financial Aid should provide Access and Choice Theory

10. Eligibility Cost less Family contribution = Eligibility for aid

11. Cost not just tuition Tuition + Room and Board or Commuter expenses + Books and supplies + Transportation expenses + Personal expenses + “Other” special costs

12. The Family Contribution • Not “extra” money. • Not “family savings” • The ability of both the parents and the student to absorb educational expenses over time. • It should represent a true sacrifice on the part of the family.

13. Different Ways to Apply for Aid • Paper FAFSA • Renewal FAFSA • FAFSA on the WEB • http://www.fafsa.ed.gov

14. New for 2003 -2004 • Question 60: Date parents became married, separated, divorced, widowed? • Question 99: What is your e-mail address? • e-mail confirmation for those providing e-mail address

15. Application Process FAFSA Paper or Web

16. Application Process FAFSA Fed. Processor

17. Application Process Data Matches FAFSA Fed. Processor

18. Application Process Data Matches College A FAFSA College B Fed. Processor College C COLLEGES UP TO 6

19. Application Process Data Matches College A FAFSA College B Fed. Processor College C COLLEGES SAR E-MAIL PIN UP TO 6

20. Application Process Data Matches College A FAFSA College B Fed. Processor College C STUDENT COLLEGES UP TO 6 SAR E-MAIL PIN

21. CSS PROFILE • Supplemental Form • Required by some colleges to determine eligibility for college aid • Used by some for Early Decision Process

23. Eligibility Cost less Family contribution = Eligibility for aid

24. Example of Two Schools • COLLEGE “A” cost $24,000 - F.C $ 8,000 =need $16,000

25. Example of Two Schools COLLEGE “B” cost $12,000 -F.C. $ 8,000 =need $ 4,000

26. Federal Methodology • Used for: • All Title IV programs (must use) • Institutions (some) • States (grant programs) • Other scholarship agencies

27. Federal Methodology Three Formulas • Dependent Students • Independent with Dependents (other than a spouse) • Independent without Dependents (other than spouse)

28. Two Formula Variations • # 1 Simplified Needs Test (SNT) (no assets included in formula) • Parent (Ind. Student) AGI less than $50,000 • Parent and Student Completed, or are eligible to complete, an IRS 1040A or 1040 EZ or non-filer

29. Two Formula Variations • # 2: Low Income Bypass (automatic 0 EFC) • Parent (Ind. Student) AGI less than $13,000 • Completed, or is eligible to complete, an IRS 1040A or 1040 EZ or non filer

30. Over age 24 by Jan 1 of award year. or Veteran of the Armed Forces or Graduate Student Married or Orphan; ward or Has legal dependent (other than spouse) live with and support or Have children & provide > 1/2 support Independent Students:Who are they???

31. With dependents? child other dependent not just a spouse Without dependents? no dependents with spouse Independent Students - Two CategoriesDifferent formulas

32. Childwho receives 1/2 support from student. Natural child; adoptive child; legal ward Child does not have to live with the student. Any other person who lives with student and get 1/2 support and will continue to receive this support during the award year. Who is a Dependent?

34. The Financial Aid Package • GRANTS - “Free money” Never has to be repaid • WORK- An opportunity to earn college funds. • LOANS - Funds which must be repaid

35. Example of Two Schools • COLLEGE “A” cost $24,000 - F.C $ 8,000 =need $16,000

36. The Financial Aid Package

37. The Financial Aid Package $24,000. cost

38. The Financial Aid Package cost $24,000 need = $16,000 $ 8,000. F. C.

39. The Financial Aid Package cost $24,000 Pell / Waivers / State need = $13,000 $ 3,000 $ 8,000. F. C.

40. The Financial Aid Package cost $24,000 need = 13,000 $3,000 loan $ 8,000. F. C.

41. The Financial Aid Package cost $24,000 need = $11,000 $ 2,000 work $3,000 loan $ 8,000. F. C.

42. The Financial Aid Package cost $24,000 grant = $11,000 meet full need $ 2,000 work $3,000 loan $ 8,000. F. C.

43. The Financial Aid Package cost $24,000 unmet need “GAP” $3,000 grant = $8,000 $2,000 work $3,000 loan $ 8,000. F. C.

44. The Effect of Private Scholarships on the Financial Aid Package

45. The Financial Aid Package OUTSIDE SCHOLARSHIP $$$$$$ $ 3000. cost $24,000 grant = $11,000 meet full need $ 2,000 work $3,000 loan $ 8,000. F. C.

46. The Financial Aid Package cost $24,000 grant = $11,000 meet full need $ 2,000 work $3,000 loan $ 8,000. $$$ F. C.

47. The Financial Aid Package cost $24,000 grant = $11,000 meet full need $ 2,000 work $3,000 loan $$$$$ $ 8,000. F. C.

48. The Financial Aid Package cost $24,000 grant = $11,000 meet full need $ 2,000 work $3,000 loan $ 8,000. F. C.

49. The Financial Aid Package cost $24,000 unmet need “GAP” $3,000 grant = $8,000 $2,000 work $3,000 loan $ 8,000. F. C.

50. The Financial Aid Package cost $24,000 unmet need “GAP” $3,000 $$$$ grant = $8,000 $2,000 work $3,000 loan $ 8,000. F. C.