Coaching Families Through Funancial Aid

1. Coaching Families Through Funancial Aid Meghan Cooley Director of Recruitment Communication | Augustana College meghancooley@augustana.edu Courtney Wallace Director of Admissison – Chicago Region | Augustana College courtneywallace@augustana.edu

2. PART I: What FAMILIES Need to Know

3. What Families Need to Know • Types of aid & how to apply • Frame expectations • Establish a timeline

4. 1. Types of Aid *Note: Studentaid.gov/glossary • Gift Aid • Merit-based • Talent-based • Need-based • Self-Help • Loans • Student Employment

5. Merit & Talent Aid • Types • Academic • Talent • Service/Involvement • Athletic • How to apply • Application for admission • Separate application • Audition • Interview • Essay

6. Need-based Aid • “Need” is defined by each school’s analysis of: • FAFSA – FREE Application for Federal Student Aid • Institutional Application • Combination of both • “Need” is relative to Cost of Attendance

7. Self-Help • Loans • Student Employment

8. Loan Options • Federal Loan Options • Stafford (6.8% fixed) • Limit based on year in school ($5,500, $6,500, $7,500 ) • Perkins (5% fixed) • Not every college participates • Limited funding • PLUS (7.9% fixed) • Parent Loan • Easy application (must not have adverse credit history) • Private Student Loans • Variable & fixed interest rates • 85% of dependent undergraduates need a co-signer • Other: home equity, other collateral loans, etc

9. Myth of Student Loan Crisis One year at Harvard costs $57,950. But most students don’t go to Harvard. The average yearly tab for a first-time, full-time student living on campus, it turns out, is $27,453 at four-year schools and $15,267 at two-year schools. Even most of the students who do go to Harvard don’t end up paying full price. Taking grants and scholarships into account, these students owed $16,459 for the 2009-10 school year; nationwide, the average four-year student who received aid owed $17,360.

10. Horror stories of students drowning in $100,000+ debt might discourage young people from enrolling in college, but they are as rare as they are terrifying.

11. Student Employment • Different names… pretty much the same thing • Federal Work-Study • Student Employment • Campus Employment • Paid for hours worked ($ goes directly to the student) • Can be used for: • Tuition • Books • Pizza, etc.

12. 2. Frame Expectations How Families Pay for College . . . www1.salliemae.com/about/news_info/research/how_america_pays_2010/

13. How will you pay? • Dispel hope for “magical” full-tuition scholarship • Hope is not a plan • Disregard averages • “Half the population is below average.” • Discuss your financial situation as a family • What are reasonable options for our family? • Determine a timeline to successfully navigate financial aid process

14. Questions to discuss as a family • How will we pay for college? • Have we saved for college? How much? • Do we have any special financial circumstances? • Do we need to complete the financial aid and scholarship paperwork? • Do we plan to take out loans? Student or parents or both? • Do we understand the difference between a college “sticker price” and the “net cost”? • What opportunities are worth paying more for? • Is our student planning to work (during school, summer, etc)?

15. 3. Timeline • Determine a timeline as early as possible • Help yourself – set the dates • Mark up family calendars • What motivates your family? • Include savings, scholarship and financial aid deadlines

16. Timeline See timeline in How families pay for college

17. PART II: Plan of Action: the Financial Aid Process

18. What’s Your Budget? • Annual & Monthly • Sources • Parent • Savings • Income • Student • Savings • Summer Earnings • Employment during the academic year • Outside assistance: scholarships, grants, etc.

19. What’s Important to the Student? • Debt-Free vs. School-of-Choice • The Bottom Line vs. “Fit” • Earning Potential vs. Loans

20. Federal v. Institutional • Federal • FAFSA = eligibility for federal student aid • Most institutions use FAFSA in determining need-based aid • Institutional • Different questions, different rules, different game

21. CSS profile (College Scholarship Service) • The College Board’s CSS/Financial Aid PROFILE - online application that collects information used by almost 400 colleges and scholarship programs to award financial aid from sources outside of the federal government. After you fill out the application, the College Board sends it to the colleges and scholarship programs you have chosen. • Not all colleges and scholarship programs require the PROFILE. • DEADLINE: register at least two weeks before the earliest college or scholarship priority filing date you need to meet. • COST: Sending your PROFILE report to one college or scholarship program costs $25. Additional reports are $16 each. Students who are from low-income families with limited assets will automatically receive fee waivers. • Website: www.profileonline.collegeboard.org • Big future.com: Search: - How to Complete the CSS/Financial Aid PROFILE

22. Scholarships • Institutional • Know your stats: test scores, grades, rank in class • Know your talents • See individual websites • National, Regional • Example: Golden Apple for Education majors

23. Scholarships • Local • Employers • Businesses • Foundations • Church and civic organizations • Free Scholarship Search Sites • FastWeb's Free Scholarship Search: fastweb.com • College Zone Scholarship search: collegeillinois.com • Scholarships.com • College Board: collegeboard.org or bigfuture.org

24. Scholarships for anything • Dr. Seuss's "Oh the Places You'll Go" Scholarship. Based on the best-selling book by Dr. Seuss, this scholarship is awarded to high school seniors this year for their essay submissions on a specific prompt. Find the details athttp://origin-www.seussville.com/ohtheplaces/. • Stuck at Prom Scholarship Contest. A duct-tape prom dress and tux could win you a $3,000 scholarship this spring. Check out last year's entries at www.stuckatprom.com. • American Fire Sprinkler Association Scholarship Program. Fire safety is important, both at home and away at college. For completing a multiple choice test about fire safety, eligible students are entered in a pool for 1 of 10 $2,000 scholarships. Get the facts at www.afsascholarship.org. • Major Memorial Duck Calling Contest. Named for Chick and Sophie Major, this scholarship is awarded to a high school senior who can bring home the bacon, or rather, duck meat. Give it a shot at http://stuttgartarkansas.org. • Evan Scholars Foundation Scholarship. Calling all caddies! This scholarship is awarded annually by the Western Golf Association to students who have experience as caddies, a strong academic record, and most of all, a great record! FORE more details visit www.evansscholarsfoundation.com.

25. Scholarships continued • Klingon Language Institute Award. This scholarship is not limited to Trekkys - rather, it is available to students recognizing and studying the importance of language. Find details at www.kli.org/scholarship. • The National Candy Technologists Scholarship. If you have a sweet tooth, this scholarship is for you. Awarded annually, the AACT selects a student with a demonstrated interest in confectionary technology. Explore more at http://www.aactcandy.org/aactscholarship.asp. • Tall Clubs International Scholarship. That's right. Not only is it easier for you to reach things on the top shelf and dunk a basketball, but here's a scholarship for you if you are a 5'10" female or 6'2" male. Check it out athttp://www.tall.org/scholarships.cfm. • Mycological Society of America Scholarship. Fungi? Fun girl? For those students interested in spores, mushrooms, or mold, the MSA awards scholarship in over 15 categories at their annual meeting. Learn more athttp://msafungi.org/msa-awards. • GoodFit T-shirt photo contest.Augustana College (that's us) awards scholarships to high school seniors for submitting a photo of themselves wearing an Augie tee. Find the categories and submit your own atwww.augustana.edu/goodfit.

26. FAFSA FREE Application for Federal Student Aid • A standard form that collects demographic and financial information about the student and family • FAFSA = eligibility for federal student aid • Most institutions use this in determining need-based aid • May be filed electronically or using paper form (available in English & Spanish) **File electronically: Option to use Internal Revenue Service (IRS) data retrieval • You must reapply every year

27. FAFSA • Information reported on the FAFSA is confidential and is used ONLY to determine financial aid eligibility • May be filed at any time during an academic year, but no earlier than the January 1st prior to the academic year for which the student requests aid *Highly recommend asap! • You may be asked to submit documentation to the financial aid office for verification purposes • Keep a copy of everything you submit

28. FAFSA • List up to 10 colleges of your choice • List housing plans/preferences for your college choices • Parent income: based on total income of household student lives with most • Signature • Student • One parent (dependent students)

29. Special Circumstances • Cannot report on FAFSA • Send written explanation to financial aid office at each college (colleges will most likely request additional documentation) Examples • Change in employment status • Medical expenses not covered by insurance • Change in parent marital status • Student cannot obtain parent information • Parent in college

30. Results of FAFSA To Families: • Student Aid Report (SAR) link sent to student’s email if provided; by mail if no email provided • Student with PIN may view SAR on-line at www.fafsa.gov *review data, update if used estimated figures To Schools indicated: • Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA submitted *schools may ask for additional info

31. What is an EFC? • WHAT IT’S NOT… • A dollar amount expected from income and/or assets • An estimate of extra cash available • WHAT IT IS… • A financial index used to determine eligibility for federal student aid (i.e. Pell Grant, Subsidized Stafford Loan) • A measure of a family’s capacity over time to absorb educational costs • An important index for families to know

32. How to Determine Your EFC • The actual application… the FAFSA! • Complete the FAFSA as a junior, sophomore, or freshman • Gives you an idea of what to expect when you complete the FAFSA after January 1 of your senior year. • Other “estimators”

33. Estimate at X college • Net Price Calculator • Federally mandated • Estimated Cost of Attendance for that individual at that specific institution • Based on income information and/or academic info

34. Award Notification Award notification packets may include: • Award letter detailing applicable scholarships, grants, work, and federal student loans. • Direct and Indirect cost information • Net Cost calculations • Cost to attend the institution after scholarships, grants, and federal student loans applied to charges. • Some schools may use direct and indirect costs in calculating net cost. • Important information regarding loan applications.

35. PART III: Know what questions to ask

36. Talking to colleges • Families need to • be comfortable talking finances • ask direct questions • See questions in How families pay for college • be proactive • discuss scholarships, financial aid, etc. EARLY in their college search

37. Final Thoughts • Knowledge is power • Family discussion • Clear expectations • Plan of action • Deadlines • Celebrate milestones

38. References • Best Definitions: studentaid.gov/glossary • How Families Pay Graph: www1.salliemae.com/about/news_info/research/how_america_pays_2010/ • The Myth of the Student-Loan Crisis, The Atlantic, March 2013.http://www.theatlantic.com/magazine/archive/2013/03/myth-student-loan-crisis/309231/ • How families pay for college: www.collegequestions.org • Federal Student Aid Program: www.studentaid.ed.gov • U.S. Department of Education – FAFSA: www.fafsa.gov • Apply for your federal PIN #: www.pin.ed.gov • Illinois Student Assistance Commission: www.colllegeillinois.com • College Board: collegeboard.org and bigfuture.org

39. QUESTIONS and shameless Augustana plug Nearly 90 – Majors & related areas of study. Largest majors: Biology/Pre-Med, Business, Psychology, Education, English, Accounting, Spanish, CSD, Communication, Political Science 2500 – Students 400,000 – Population of Quad Cities 94% – Graduating seniors only in college four years 12:1 – Student to teacher ratio More than 150 – student groups, clubs and activities. Over 50% involved in sports; 25% join a musical ensemble; 85% of students volunteer, More than 25 – service, religious and social awareness groups 95% – graduates employed or pursuing an advanced degree within a year of graduation 87% of those pursing advanced degrees were accepted to their first or second choice of grad school More than 55% – study abroad; In top 40 – number of students who study abroad 99% – success rate for matching first-year roommates