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WELCOMES Parents and Students

WELCOMES Parents and Students. www.principianp.com. Principia NP’s Mission Statement:

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WELCOMES Parents and Students

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  1. WELCOMESParents and Students www.principianp.com Principia NP’s Mission Statement: The primary mission of Principia NP is to educate parents and students about the financial aid and admissions process while helping the planet. Fall 2004

  2. WELCOMEParents and Studentsto “The Financial Aid Game” www.principianp.com Principia NP’s Mission Statement: The primary mission of Principia NP is to educate parents and students about the financial aid and admissions process while helping the planet.

  3. Presentation Outline www.principianp.com • The Good • The Bad • The Ugly • What is Financial Aid • The FAFSA Form & The CSS Profile Form • Award Letter • What will college really cost my family? • Will my family qualify for Aid? • What are my families options for paying for college

  4. www.principianp.com Will I Graduate in 4 years?? • Public School -20% graduate in 4 years. • Private School -50%. • 65% of all enrolled students are still in college after 4 Years • 50% Do Not Finish the same course of study that they Started

  5. www.principianp.com 4Years or 5? • College’s require 124 to 128 Credits to graduate a 4 year institution • 12CR X 2 (Semester Per Yr) = 24 X 4 (Year in School) = 96 Credits • 15CR X 2 (Semester Per Yr) = 30 X 4 (Year in School) = 120 Credits 15CR (Each Semester 3 Yr) + 2 Summer & Winter = 126 90 Credits + 36 Credits 6 and 7 year plans also available

  6. The Bad www.principianp.com The largest Graduation class in History • Over 3.5 Million High School Students 2011 • Northeast has the highest SAT Average 530 Math 540 CR • On average students are applying to 7 to 10 College • Previous Average 5 to 6 colleges • The average debt of graduating students is $32,000

  7. www.principianp.com The Bad Average College Cost • Public $12,000 to $25,000 • Private $30,000 to $44,000 • Elite $45,000 to $60,000

  8. www.principianp.com They have now crossed over $60,000 • Columbia Univ. $61,385 • Fordham $57,450 • NYU $62,757 • George W. Univ. $62,407 • Sarah Lawrence $63,344 * Numbers account for tuition, room and board and misc cost

  9. www.principianp.com No need to panic

  10. www.principianp.com Understand the lingo What Does Financial Aid Really Mean? Gift Aid = FREE!! Self Help = Loans and Work-study!!

  11. www.principianp.com How Financial Aid is Awarded Financial Aid Scholarships Grants Loans Work-Study

  12. www.principianp.com Are you Financially Fit or Academically Sound Where is your advantage GPA & SAT Family Finances VS

  13. www.principianp.com Merit Aid • Academic • GPA, Class Standing, SAT Score • Athletic • Scholarship or help with admission • Neglected Resources • College’s own money

  14. www.principianp.com Institutional Scholarships • Many institutions offering such awards: • Follow a simple rubric based primarily on SAT or ACT scores and secondarily on class rank/ grade point average • Require earlier application deadlines and supplemental materials for consideration Colleges want to attract the students who best represent their highest academic standard

  15. www.principianp.com Some Institutions follow a straightforward rubric when awarding scholarships, based primarily on SAT or ACT scores, secondarily on class rank. Priority deadlines often apply. CollegeScholarshipEntry CriteriaPriority DeadlineAmount Iona College Presidential 1300 SAT, 29 ACT December 1st $27,650 Adelphi Univ. Dean’s 1050 to 1190 SAT Regular Admissions $8,000-$11,500 top ¼ of Class U.R.I. Centennial 1200 SAT December 15th $2,000-$8,000 top 1/3 of class FDU Dean’s 1060 SAT Regular Admissions $9,500 3.0 GPA

  16. www.principianp.com Neglected Resources • Restricted Endowment Funds • Available through the admissions office • Criteria set by Donor and committee • Sometimes require demonstrated need • Scholarships Vary • Leigh Marching Band $1,000 to $2,500 • Princeton Steamboat $12,000 • Antioch College in Yellow Springs, Ohio Free Tuition !!!!!! • North Carolina State University John Gatling Scholarship Full Cost

  17. www.principianp.com Neglected Resources • Employer Sponsored Scholarships • Available to employees and dependents • Criteria include both merit and need • Employers include: Dress Barn Abbott Laboratories UPS GlaxoSmithKline Kulite Semiconductor Toys “R” Us Turner Construction Valley National Bank Delta Dental Johnson & Johnson McDonalds Check with your employer

  18. www.principianp.com www.principianp.com Understand the rules before you start playing the game • Some Schools give merit • Some give need • Some give both • COA & EFC • Profile vs Fafsa • The new Harvard Int.

  19. www.principianp.com HOW DO I QUALIFY? COST OF ATTENDANCE (COA) MINUS EXPECTED FAMILY CONTRIBUTION (EFC) FINANCIAL NEED

  20. www.principianp.com WHAT COMPRISES COA? • TUITION AND FEES • ROOM AND BOARD • PERSONAL EXPENSES • BOOKS, SUPPLIES, COMPUTER • TRANSPORTATION • LOAN FEES

  21. www.principianp.com Which Form Do I fill Out? FAFSA FORM CSS PROFILE VS

  22. www.principianp.com Starting the process • Important Things to know • Federal Methodology is the formula created by Congress to determine the EFC. • Primary Residence and Retirement Accounts are not assessed • Used by all public & Private colleges • Information Collected on FAFSA Form Start after Jan. 1

  23. www.principianp.com Online or Paper form What is your best bet • Application Fees • Reliability • Making deadlines • Making it easy • Paper forms are becoming extinct WWW.FAFSA.GOV

  24. www.principianp.com Online or Paper form What is your best bet • Application Fees • Reliability • Making deadlines • Making it easy • Paper forms are becoming extinct IRS Data Retrieval

  25. www.principianp.com Online or Paper form What is your best bet • Application Fees • Reliability • Making deadlines • Making it easy • Paper forms are becoming extinct IRS Data Retrieval

  26. www.principianp.com Online or Paper form What is your best bet • Application Fees • Reliability • Making deadlines • Making it easy • Paper forms are becoming extinct IRS Data Retrieval

  27. ww.principianp.com Get Your PIN Research The Schools and Programs • There are more than 3800 colleges & Universities • Double Check Majors • Check out deadlines • Merit Scholarship Deadlines • Retention Rate • SAT Requirements • Financial aid and scholarships available WWW.PIN.GOV

  28. www.principianp.com Fafsa Counts • Cash, Savings, Checking • Stocks and Bonds • Mutual Funds • 529 Plans • Second Homes • Child Support • Untaxed Income • Retirement Contributions

  29. www.principianp.com For Business Owners: • The value of a business is not assessed if that business employs fewer than 100 employees. • Corporate tax returns may be requested and income may be imputed as personal income.

  30. www.principianp.com Expected Family Contribution (EFC) Parent’s Formula Parents' Income - A Living Allowance (family size)- Taxes x 22% to 47% = Parents’ Contribution from Income Parents’ Assets - Asset Protection Allowance (age based) x 5.6% = Parents’ Contribution from Assets Student’s Formula Students’ Income - Income Taxes - Standard Deduction of $3,500 X 50% = Students’ Contribution from Income Students’ Assets - no deductions X 20% = Students’ Contribution from Assets

  31. www.principianp.com Fafsa Part II Important New Requirement State of New Jersey’s New Financial Aid Requirements

  32. www.principianp.com Hesaa Requirements • Drivers License • Student’s Social Security Benefits • Student’s • Student’s Earned Income Credit • Parent’s Social Security Benefits • Parent’s Earned Income Credit

  33. www.principianp.com Starting the process • Important Things to know • Institutional Methodology is the formula created by Private Colleges to determine the EFC. • Primary Residence and Retirement Accounts are assessed • Used by Private and Elite Colleges • Information Collected by CSS Profile *START DEPENDS*

  34. www.principianp.com Profile Counts • Cash, Savings, Checking • Stocks and Bonds • Mutual Funds • 529 Plans • Second Homes • Child Support • Non-Custodial Parents Information • Home and Car Value • Untaxed Income • Retirement Accounts

  35. www.principianp.com For Divorced or Remarried Parents: • FAFSA does not consider the income and assets of the non-custodial parent in determining aid. • If the custodial parent has remarried, the spouse is considered a parent, and that person’s income and assets are counted.

  36. www.principianp.com The “Financial Aid Initiative” Enhanced Eligibility Eliminated Loans • Harvard U. • Yale U. • Brown U. • Princeton • Amherst College • Cornell U. • Dartmouth U. • Duke U. • M.I.T. • U. of Chicago • U. Of Penn. • Williams College

  37. www.principianp.com Harvard University The “Zero to 10%” Standard: Zero to $60,000: Families pay nothing $60k to $120k: Phase-in to 10% $120k to 180k: 10% of income 180k and above special circumstances apply

  38. www.principianp.com Yale University OLD vs. new comparison

  39. www.principianp.com Two in College One Student Two Students COA $35,000 $70,000 EFC $20,000 $20,000 Expected Family Contribution is divided by the number of students

  40. www.principianp.com Frequent Filing Errors • Parent and student Social Security Numbers • Divorced/remarried parental information • Untaxed income • U.S. income taxes paid • Household size • Number of household members in college • Real estate and investment net worth

  41. www.principianp.com Have these on hand! • U.S. income tax return (IRS Form 1040, 1040A or 1040EZ) • W-2 forms and other records of earnings • Current bank statements • Records of untaxed income • Business and farm records • Records of stocks, bonds and other investments • Student’s driver’s license and social security number

  42. School sends financial aid package award letter to the student. Student reviews and returns award letter, indicating preferred lender (if needed) and any necessary changes. www.principianp.com And then. . .

  43. www.principianp.com The Award Letter What is on the Award Letter • The Cost of Attendance • The EFC • Estimated Financial Aid • Scholarships • Grants • Loans • Work-Study

  44. www.principianp.com www.principianp.com Let’s Make a Deal • You can ask for more • Always ask for more • Use similar colleges • Be pro-active but not rude If you don’t ask you will never know

  45. www.principianp.com Meeting a Student’s Financial Need • Choose your college wisely, because: • Not all will meet 100% of need • Private colleges generally: • Meet a higher percentage of need • Award a higher percentage of gift aid • Many students can attend a private college for the same cost as a public university!

  46. www.principianp.com Private VS. Public Montclair State University Cost of Attendance $27,493 Expect Family Contribution $10,000 Financial Need $17,493 Avg. Percent of Need Met 63% ($11,021) Unmet Need 36% $6,472 Avg. Scholarship And Grant Given 37% $4,049 Actual cost Gift Aid - COA = $20556 CornellUniversity Cost of Attendance $55,374 Expect Family Contribution $10,000 Financial Need $45,374 Avg. Percent of Need Met 100% ($45,374) Unmet Need 0% $0 Avg. Scholarship And Grant Given 100% $45,374 Actual cost COA – Gift Aid = $10,000

  47. www.principianp.com Loans Direct Loans - Subsidized - Unsubsidized Perkins Loans - Need based loan PLUS Loans -Parent Loans Fall 2004

  48. www.principianp.com Loans Part II NJ Class Sallie Mae Wells Fargo Citi Bank Chase PNC Fall 2004

  49. www.principianp.com The Green Initiative • Principia NP is fully funded and supported by the Green Initiative. The Green Initiative is an e-waste recycling program created by the founder of Principia NP to make it possible for all parents, students, and guidance officers to receive college funding and admissions assistance without charge or obligation.

  50. www.principianp.com The Green Scholarships E-Waste Includes: • Computers • Laptop Computers • PDA’s • Sports equipment • T-I Calculators • Stereo equipment • Printers • Business & • Office Equipment • DVD Players • Toner (full or empty) • Cameras *We do pick up materials at offices.

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