Understanding the Financial Aid Process

1. Understanding the Financial Aid Process

2. College Funding Services 110 Midvale Terrace Suite #1 Westfield, NJ 07090 Email: bill@ineedfinancialaid.com matt@ineedfinancialaid.com www.ineedfinancialaid.com

3. How Do They Determine If I’m Eligible? • COA – FC = NEED • COA stands for Cost of Attendance • (Includes tuition, books, room/board, etc.) • FC stands for Family Contribution • (Based on parents and students income, assets, ages, number of people in school) • Need is how much aid the family is eligible for.

4. What can we do? Private Scholarships? * Guidance Department * www.fastweb.com * www.ftc.gov * College’s Scholarships

5. What should we know about our Family Contribution? • Asset Protection Allowance • What is considered an asset? • Parental Assets vs. Student Assets • Is debt considered? • Is our home considered an asset -www.finaid.com -Calculators -Federal Housing Index

6. What should we know about our Family Contribution? • Parent Income vs. Student Income • Student Income allowance

7. Borrowing Options • Student Loans vs. Parental Loans • Subsidized vs. Unsubsidized Loans • PLUS Loans • Understanding life of loan

9. Financial Aid • Myths vs. reality: • Income too High • Grades too Low • Own a home • Aid is only for special groups

10. Sources of Financial Aid • FEDERAL GOVERNMENT • Pell Grants • SEOG Grants • College Work/Study • Subsidized and Unsubsidized Stafford Loans • Perkins Loans • PLUS and SLS Loans

11. Sources of Financial Aid • Federal Government • State Government • Special programs for in-state residents. • Teachers, health professionals, minorities, etc. • Contact Higher Education Student Assistance Authority for more information. • www.hesaa.org

12. Sources of Financial Aid • Federal Government • State Government • Colleges and Universities • Private universities have endowment funds, outside of federal and state funds. • Create competition • Give preferential packaging to students who are in top 25% of applicants.

13. Sources of Financial Aid • Federal Government • State Government • Colleges and Universities • Private Sources • Are private scholarship services worth it? • Only 3% of all the aid. • Don’t spend too much time looking for this small piece of the pie.

14. How Do You Apply? • The FAFSA (Free Application for Federal Student Aid) • EVERYONE must fill out this form to get aid • You cannot apply for Federal Loans if you do not fill one out

15. How Do You Apply For Aid? • The FAFSA • The CSS/Financial Aid Profile And Registration Form. • Many Private schools want this form as well • Registration and application can only be submitted online via the Internet. • Asks about home equity, more detailed explanation of income, assets and expenses. • Should be consistent with FAFSA

16. FAFSA • Estimate 2012 taxes, based on 2011 tax returns • Federal Government interested in all aspects of tax return • Details of all assets that day • Audit/verification process similar to IRS • www.fafsa.ed.gov

17. CSS/PROFILE • Most private schools require this form • Much more invasive and complex • Home equity treated as liquid asset • Section Q • www.collegeboard.com • $25.00 for 1st school, $16.00 for each thereafter

18. How Do You Apply For Aid? • The FAFSA. • The CSS/Profile • The school’s own institutional forms. • Some schools require their own additional forms. • They should be consistent with other forms • Usually will ask similar questions to the other two forms.

19. How Do You Apply For Aid? • FAFSA • CSS/PROFILE • College Institutional Forms • ADDITONAL FORMS: • Business/Farm Supplement • Divorced/Separated Situations?

20. Which Colleges Give You The Best Shot At Getting Money?

21. The Best Shot! • Percentage of Need Met. • Percentage of Gift Aid. • Percentage of Self-Help Aid. • Some schools meet most or all of needs in work/study or loans. (You do not want to find out in June that they meet most of your need in loans) • Know before applying.

22. The Best Shot! • Percentage of Need Met. • Percentage of Gift Aid. • Some schools meet most need in FREE money, while others give mostly loans. • You want to know this BEFORE applying

23. CASE STUDIES : Amherst College:UMASS-Amherst: Cost - $50,000 Cost - $20,000 EFC - $15,000 EFC - $15,000 Need - $35,000 Need - $5,000 School A:School B: Meets 100% Need Meets 60% Need Gift Aid - 100% Gift Aid - 50% Self Help – 0% Self Help - 50% What you actually pay at each school: School A:School B: Total EFC = $15,000 Original EFC = $15,000 Total Gift = $35,000 + Unmet Need = $2,000 Total Self = $0 Total EFC = $17,000 Total Gift = $1,500 Total Self = $1,500

24. How To Appeal Your Financial Aid Award

25. How To Negotiate For The Best Possible Package! • Some schools mis-award • Some schools under-award • Some schools will try to compete with other schools

26. How To Appeal For The Best Possible Package Original Offer: Adjusted offer after negotiation: COA - $50,000 COA - $50,000 FC - 8,000 FC - 8,000 Need - $42,000 Need - $42,000 Aid Offered:New Package: University Grants - $15,000 University Grants - $30,000 College Work/Study - $2,000 College Work/Study - $2,000 Rensselaer Loans - $7,500 Stafford Loan - $5,500 Perkins Loan - $4,000 Total Aid - $24,500 Total Aid - $41,500 Unmet Need - $17,500 Unmet Need - $500

27. Helpful Links • www.ineedfinancialaid.com • www.collegeboard.com • www.mefa.org • www.collegeprowler.com • www.fafsa.ed.gov • www.finaid.com