Applying for Financial Aid 2019-2020 Academic Year

1. Applying for Financial Aid2019-2020 Academic Year Patricia Buono Senior Assistant Director of Financial Aid Services Telephone: 860-439-2058 e-mail: patricia.buono@conncoll.edu

2. How do I choose a College? • Can I envision this as my home for the next 4 years? – the dorm rooms, the food, the campus, the library, the community….. • Have I spoken to the academic department (deans, faculty) about how my major is supported at the College? (Can I sit in on a class?) • Is there a career center that will assist me with interships and ultimately job searches? • Can I afford this College?

3. Is this affordable? • Use each college’s Net Price Calculators • It will help you determine your estimated expected family contribution(EFC) FOR ONE YEAR • Remember that: • This is a ball park estimate not a guarantee. • NPCs are unique to each college’s awarding policies. • You can ask the Financial Aid office to look over your results to see if it seems that you entered the data right. • Visit college websites for: • Awarding information, application requirements and deadlines

4. NET PRICE CALCULATOR TIPS • Use prior–prior year data – for 2019-20 use 2017 income. • If using estimates, it is OK to use calculator more than once with different income – this will not be completely accurate. • Don’t forget untaxed income: • i.e. tax deferred pension contributions or losses on tax return • Be careful when answering asset questions • no retirement funds or primary residence home equity. • Divorced parents can combine income or do two separate calculations--but results will not be completely accurate.

5. How do we support students with the cost of college? • The family’s ability to pay is determined • including College Savings Plans and employer tuition benefits etc. • Outside Scholarships (i.e. from the community) • Federal and State government funding • Collegefunding:depending on endowment size & awarding policies • Does the college offer non need based scholarships: i.e. MERIT or ATHLETIC? • Avoid losing aid: make sure you meet application deadlines.

6. Cost of Attendance • Tuition • Room & Board • Books & Class Supplies • Transportation • Miscellaneous and Personal Expenses (i.e. purchase of a computer, sometimes health insurance fee, dorm room items needed)

7. Definition of Financial Need Cost of Attendance LESS Expected family contribution (EFC) calculated demonstrated need LESS Other financial assistance i.e. non parent 529 plans, employer tuition benefits, and outside scholarships EQUALS Financial need

8. How is my financial need met? When financial need is determined: • Federal and State Aid is applied first • The remaining need is filled with institutional grant funding -- if a college awards 100% of demonstrated need. --Generally, State schools DO NOT meet 100% of demonstrated need.

9. Comparison of Need by Cost

10. Meeting the Full Need or Gapping

11. What is used to determine the Family Contribution? • “PRIOR PRIOR” YEAR INCOME INFORMATION • Parent(s)’ and Student’s 2017 income • Parentassetsvalueat the time of the application • Exclude retirement account balance or primary residence home equity • Include trusts, equity value of investment properties, business net worth • Include 529 plans set up by parents(not UGMA/UTMA* accounts) • Studentassets value at the time of the application • Include trusts, if student is beneficiary and UGMA/UTMA* accounts • 529 plans set up by someone OTHER than a parent • # of household members: must provide at least 50% support • # of dependents attending college (at least half-time) *UGMA/UTMA: uniform gift/transfer to minors act: the student owns the account but the parent is the “custodian” or administrator of the account. These must be listed in student asset balances.

12. Some untaxed income items that may be included FROM THE FEDERAL INCOME TAX RETURN, FORM 1040 • Health Savings Account deduction (1040, line 25) • Tax Exempt Interest (1040, line 8b) • Untaxed portions of Pension/Annuity withdrawals (1040, line 16a – 16b) • Untaxed portions of Retirement account withdrawals (1040, line15a – 15b) • Untaxed portion of Social Security benefits (1040, line 20a – 20b) • IRA or SEP/SIMPLE/Qualified Plan contributions (1040, line 28 & 32) • On CSS Profile only: • Maybe: Earned Income & Additional Child Tax Credits (1040, lines 66a & 67) • Maybe: depreciation/losses from 1040, Schedule C, E or Business Tax Return ALSO, • Child Support Received (not on tax return) • Pension contributions (on W2: box 12: codes D,E,F,G,H&S only) • Military/Clergy housing allowance benefit (not on tax return)

13. Federal Aid Eligibility Determined Using the FAFSA (FREE Application for Federal Student Aid) • https://fafsa.ed.gov • 2019-2020 FAFSA available 10/01/2018 • State of Connecticut deadline is 2/15/2019 (for CT residents) • Must be a U.S. Citizen or an Eligible Non-Citizen • A parent & the student must create a user name and password for the FAFSA at https://fsaid.ed.govand will use this id/pswd. all 4 years • MOBILE APP NOW AVAILABLE • EXCLUDE on FAFSA only: • Home Equity in your primary residence • Information about the noncustodial parent • INCLUDE: • Stepparent(who is married to the custodial parent) income must be included. • MULTIPLE DEPENDENTS IN COLLEGE • Parent contribution is divided by the # of dependents in college • dependents must be enrolled at least half time in undergraduate or graduate studies • Parents in college are NOT included in this number. • Unmarried but living together/same sex marriages: Income from both partners is used.

15. Helpful FAFSA Tips • Use Prior Prior year income information (i.e. 2017 income for 2019-20 application). • Critical information: LEGAL nameand correct SSNs &DOBsThis is cross checked with the SSA–so carefully double check data. • When reporting assets, don’t forget: • % of ownership of Investmentreal estate equity (value minus mortgage) • If renting out a portion of primary residence, include that % of value – debt. • % of ownership in legaltrusts (Remember wills are not trusts.) • Don’t include retirement fund balances under investments. • 529 College Savings Plans: • in parent’s name -- include in parent’s investment balances. • in name of other than parent – include in student’s investments • (for CSS Profile put amount in 529 held by other than parent question–BUT not both in that question AND student assets).

16. CSS ProfileDetermines Institutional Grant Eligibility -- (not used by all schools) • CSS Profile: at https://cssprofile.collegeboard.orgcost: $25 + $16 @school • They provide a list of schools that use the CSS Profile • Using student & custodial parent (include stepparent, if applicable) information • The non-custodial parent (ncp) will also complete a separate profile application on College Board website with their information. • The school will use the data from the custodial parent +EITHER the ncpOR the step parent – not all three • Items that may be used in the calculations: • Primary residence net home equity • Items such as losses and certain deductions on the tax return may be added back to the income total • Parent contribution might not be divided equally for # in college: • no allowance for dependents in graduate school • reduced allowance for a lower cost institution (i.e. community college) • Reduced or no allowance for siblings receiving substantial merit/athletic aid • USE COMMENT SECTION to relay special circumstances

18. Federal Aid Includes:funding for 2019-20 not yet determined ALL NEED BASED: • GRANTS: • Federal Pell Grant – up to $6,095 • Federal SEOG Grant – up to $4,000 This is a campus based program -- so amounts may vary from college to college. • LOANS: • William D. Ford subsidized/unsubsidized loans: • Interest rate: 5.05% Dept of Education origination fee: 1.062% • Limits: freshman: $5,500, sophomore: $6,500, junior/senior: $7,500@ • Federal Workstudy: campus job earning anywhere from $1,000-$3,000 https://studentaid.ed.govfor detailed information about these programs.

19. State Grants • For CT residents attending a college in CT • www.ctdhe.org/SFA/default.shtml • Up to $4,500 FUNDING NOT DETERMINED FOR 2019-20 YET • Some schools may be getting little or no funding for this grant • Roberta B. Willis Scholarship Program: • FAFSA required – must file by February 15, 2019 • Need based: EFC less than $11,000 • Usually up to around $3,000

20. Outside Resources • Outside Resources – such as: • Employee Tuition Benefit • Contributions from relatives • 529 College Savings plans set up by other than parents • Outside Scholarships: • usually from civic and community foundations/businesses • Use High school guidance office as a resource • Ask companies that are in the field of your major • Search: www.finaid.org

21. https://studentaid.ed.gov

22. finaid.org

23. ParentInformation • My parents are divorced/separated -- which parent goes on the FAFSA as the custodial parent? • Custodial Parent means: • the parent you lived with more during the past 12 months. • or the parent who provided more financial support during the past 12 months, if the living arrangements are equal. • If your Custodial parent has remarried, you must include information about the stepparenton the FAFSA. • On the CSS Profile (not FAFSA): Non custodial parent information may be requested too. • Biological/Adoptive parents who are together but unmarried: combine income and asset balances of both on the FAFSA

24. ParentInformation • If biological parent(s) information is unattainable, call the College for further instructions (paperwork needed). • The following people are not your parents unless they have adopted you: • grandparents, foster parents, legal guardians, brothers, sisters, aunts, uncles, cousins or other unrelated persons with whom you may live.

25. FEDERAL SHOPPING SHEET FINANCIAL AID AWARD • Required by State of CT for CT colleges/universities. • Purpose: to compare awards “apples to apples”. • Same format used by all institutions. • Net Price/Cost means Cost of Attendance – EFC – grants/scholarships • After Net Price/Cost, you will see loan and work study options. (Note: work study earnings are paid directly to student.) • Also reported: loan default rate, graduation rate, average loan balances and other payment options.

27. What if my family contribution seems unreasonable? If the family contribution is significantly different from what you expected, ask the financial aid office to help you understand how the contribution was determined. • Is there a contribution expected from the non-custodial parent? • Were losses reported on the tax return added back? • What is the minimum student contribution? • How were number of family members in college treated? • Was home equity included in the analysis? • You may have incorrectly answered a question on the application and a talk with them might clear that up. • ***If you have special circumstances or a change in your income/financial situation, request instructions and deadlines for an “Appeal” or “Review” of the award.

28. Aid Award in Subsequent Years“The Four Year Plan” • Most Colleges make you apply every year for financial aid. • But ask: Is this award for just this year? • Loan amounts increase as the student advances to the next grade level (causing grants to decrease). SOME OTHER REASONS YOUR EFC WILL CHANGE: • Increases/decreases in the family income • Increases/decreases in the family asset balances • CHANGE IN NUMBER OF dependents enrolled in college • Rememberthat only for federal purposes is a sibling attending graduate school included in number in college • Change in the number in family(i.e. eldest child moves out or back in) • Change in amount of taxes paid, reported losses or tax deferred payments

29. Other Resources to Consider • Withdrawals from Savings / Investments / 529 Plans • The College’s Installment Payment Plan (not a loan) • Home Equity loans, 401K loans, Stock loans • Alternative Student Loans through private lenders (i.e. banks, credit unions, state institutions and national student loan lenders) • Federal PLUS program (Parent Loan for Undergraduate Student) • Interest rate: 7.60% Dept. of Education Origination fee: 4.248% • Apply for outside scholarships • Check with your financial planner or CPA for other options open to you specifically. • Earnings from student’s summer or campus job.

30. Resources for you • High School Guidance Office • Financial Aid Offices • College’s Websites • www.studentaid.ed.gov • www.finaid.org • www.fafsa.ed.gov

31. GET FREE HELP FILLING OUT THE FAFSA! FREE event www.collegegoalsundayct.org(may not be up to date) OR CALL YOUR SCHOOL • Many local sites available, such as: • NL Science & Technology High School?? • Eastern CT State University, Oct. 28, 1-4pm • Fitch High School, may not have one this year • Windsor High School, Oct. 14, 1-4pm Financial Aid Professionals will be present to answer all of your FAFSA questions and help you submit your FAFSA right there.

32. RECAP • Visit College websites for deadlines & requirements • Use each College’s Net Price Calculator • Complete FAFSA (by 2/15/19) (Go to College Goal Sunday) • Compare awards by the Net Price -- not bottom line total award. • Remember this is only an award for the first year – consider what year 2, 3 & 4 might look like. • Have we explored all other resources for payment? (outside scholarships, payment plans, loans etc.)

33. Thank you for your attention.What questions can I answer for you?Good luck in your College search journey!