Demystifying Financial Aid: Essentials for College Funding

1. What You Need to Know About Financial Aid Presented By: Kara Moore Director of Financial Aid Pitzer College

2. Topics We Will Discuss • What is financial aid? • Cost of attendance (COA) • Expected family contribution (EFC) • Financial need • Categories, types, and sources of financial aid • Free Application for Federal Student Aid (FAFSA) • Special Circumstances

3. What is Financial Aid? Financial aid consists offunds provided to students and families to help pay for postsecondary educational expenses

4. What is Cost of Attendance (COA)? Indirect Costs - Expenses associated with attending school that can vary and are not charged directly Direct Costs - charges that are directly billed to the student Transportation Tuition and fees Room and board Miscellaneous personal expenses Books and supplies

5. What is Expected Family Contribution (EFC)? • Measurement of student’s and family’s ability (not willingness) to pay postsecondary educational expenses Student contribution Parent contribution (for dependent students)

6. What is Financial Need?

7. Factors Considered in Determining Need and FAFSA EFC • Income of custodial parent(s) and student • Assets of custodial parent(s) and student • Number of family members in the household • Number of dependent children in college • Age of older parent *Home, retirement, and business assets do not have to be reported on the FAFSA.

8. Categories of Financial Aid Sources of Financial Aid • Federal Government • State Government • Post-Secondary Institutions • Private Agencies Need-based aid Non-need-based aid

9. Types of Financial Aid Self-Help Aid Gift Aid

10. Scholarships & Grants- Funds that you do not need to repay Self-Help Aid Gift Aid

11. Scholarships and Grants • Federal Grants/Scholarships • Federal Pell Grant • Must complete the FAFSA and meet eligibility requirements • Based on financial need • Federal Supplemental Educational Opportunity Grant (SEOG) • Must complete the FAFSA and meet eligibility requirements • Based on financial need

12. Scholarships and Grants • State: Cal Grant A – B & C Eligibility • U.S. citizen or eligible non-citizen • California Resident • Awarded based on financial need and academic achievement • Meet income and asset requirements • Meet GPA requirements • Attend a California college • Eligible students must submit the FAFSA and Cal Grant GAP Verification form by March 2, 2019

13. Scholarships and Grants • College Grants/Scholarships • Awarded on basis of merit and/or need • Use information from FAFSA and/or institutional applications, such as the CSS Profile • Deadlines vary by school, CHECK WEBSITE • Outside Grants/Scholarships • Available from companies, religious organizations, community organizations, etc. • Can be based on need, merit or both • Usually require a separate application and possibly an essay, transcript or interview

14. Scholarships and Grants • Outside Grants/Scholarships • Find through FREE search engines: • Fastweb.com • Unigo.com/scholarships • Cappex.com/scholarships • Research and apply EARLY • Employee Benefits • Companies may have scholarships available to the children of employees • Companies may have educational benefits for their employees

15. Work-Study Employment- Funds you earn by working during the school year Self-Help Aid Gift Aid

16. Loans- Funds that you borrow and must repay Self-Help Aid Gift Aid

17. Types of Loans • Federal Loans • Direct Subsidized Loan • Need-based • Interest does not accrue while student is in school • Direct Unsubsidized Loan • Not need-based • Interest accrues while student is in school • Parent PLUS Loan • Not need-based • Able to borrow up to the cost of attendance, minus any financial aid • Repayment begins 60 days after final disbursement of the year • Private/Alternative Loans • Colleges may refer families to certain lenders. However, most will recommend families conduct their own research.

18. How to Apply *If a school requires the CSS PROFILE, they also require the FAFSA. The CSS PROFILE does not replace the FAFSA, it is in addition to the FAFSA.

19. FAFSA:Free Application for Federal Student Aid • Required by all schools • Used to calculate EFC and federal aid eligibility • May be filed beginning October 1, 2018 • Most colleges set their own FAFSA filing deadlines • Uses 2017 tax information

20. FSA ID • Username and password combination created by student and parent(s) • Used for FAFSA completion and signature • May be used by students and parents in subsequent school years

21. Filling out the FAFSA

22. FAFSA on the Web (FOTW)

23. Benefits of Using FOTW or myStudentAid • Built-in edits to prevent costly errors • Skip-logic allows student and/or parent to skip unnecessary questions • Option to use Internal Revenue Service (IRS) Data Retrieval Tool to import tax data

24. myStudentAid Mobile App • Mobile ability to begin, complete, save and submit the FAFSA • Prompts applicant to create a save key, which allows them to complete it at a later time

25. myStudentAid Mobile App • FAFSA completion tracked • Successful completion of each section indicated • Digital signature • Confirmation of submission • Estimated EFC calculation

26. IRS Data Retrieval Tool • Allows for certain tax return information to be transferred from the IRS database • Participation is voluntary and student chooses whether or not to transfer data to FOTW • IRS will authenticate taxpayer’s identity • If tax record is found, IRS transfers information to populate the FAFSA • Reduces documents requested by financial aid office

27. FAFSA Signatures • Required for: • Student • One parent (dependent students) • Format for submitting signatures • Electronic using FSA ID • Signature page

28. Frequent FAFSA Errors • Social Security Numbers • Divorced/widowed/remarried parental information • Income earned by parents/stepparents • Untaxed income • U.S. income taxes paid • Household size • Number of household members in college • Real estate and investment net worth

29. Making FAFSA Corrections If necessary, corrections to FAFSA data may be made by: • Using FAFSA on the Web • Submitting documentation to college’s financial aid office FAFSA corrections through FOTW can also be used to send the student’s FAFSA to more than 10 schools. *If you are required to also complete the CSS Profile, please keep in mind that it cannot be edited after submission.

30. Basic Tips • Different schools have different requirements and deadlines, so make sure you check each school’s website. • Example: some schools require the CSS Profile and/or tax documents in addition to the FAFSA • Availability of funds and institutional policy will influence amount and type of aid offered • Divorced? Include custodial parent information ONLY on the FAFSA. • You may be asked to provide information about the noncustodial parent on the CSS Profile • Remarried? Include step-parent’s information on the FAFSA and CSS Profile. • File early!

31. Special Circumstances • Conditions exist that cannot be documented with the FAFSA • Send written explanation and documentation to your college’s financial aid office • College will review and request additional information if necessary • Decisions are final and cannot be appealed to U.S. Department of Education

32. Secondary school tuition Special Circumstances Unusual uncovered medical/dental expenses Extraordinary dependent care Parent or spouse death Student cannot obtain parental information Loss of employment Divorce

33. Questions? Contact Information Kara Moore, Director of Financial Aid at Pitzer College Email: financial_aid@Pitzer.edu Phone: 909.621.8208