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Financial Aid Misunderstandings

Financial Aid Misunderstandings. Removing the veil of confusion. Back to the Future. Really, we’re not the bad guys!.

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Financial Aid Misunderstandings

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  1. Financial Aid Misunderstandings Removing the veil of confusion Back to the Future

  2. Really, we’re not the bad guys! • Parents, students and our peers across campus may share a misunderstanding of the many roles of the financial aid office and how federal regulations are our driving force. Compliance requirements sometimes put financial-aid-office practices at odds with a school’s customer-service ideals, and complaints from students and their families can end up in the hands of the school’s administration. Back to the Future

  3. Why don’t they understand?? • It’s an ongoing battle! • Information overload! • Requests for more information! • They Don’t Read! • The Media • Hear-Say! (My friend at work told me… My neighbor’s kid gets… Our financial planner says…) Back to the Future

  4. ● …And federal jargon! Back to the Future

  5. THE NEGOTIATION Q. Can we come in and discuss your offer? We’d like to negotiate a “better deal”. Hold on… Back to the Future

  6. Are we buying a car or a college education? Back to the Future

  7. The easy answer: Most colleges adhere to specific financial aid award guidelines set by the federal government and cannot adjust an award for a family just because they feel they got a better “deal” at another college. Back to the Future

  8. Talking Points: • Special Circumstance consideration • Aid Comparison Worksheet • Value of Educational Experience at your Institution • Student and parent loan programs Back to the Future

  9. The Dreaded EFCQ: My EFC is 0. That means it is going to cost me $0 to go to your school, right? Back to the Future

  10. A. Absolutely …… Not! Back to the Future

  11. EFC • Financial aid is based on the EFC index number as calculated by the U.S. Department of Education. This same number is used by all schools that were on the list of schools to receive your FAFSA information. Back to the Future

  12. Eligibility for financial aid is determined, in part, by the difference between what a student’s family can afford to pay and the cost of attending a specific college or university. Back to the Future

  13. But, How do we explain the “gap”? “Well it’s a store for all ages…” “No, not that gap!” Back to the Future

  14. Financial Aid Gap! • Financial need is the difference between the EFC and total COA. Some schools guarantee to meet your financial need with the Financial Aid Award ; others will not or cannot meet the need. • Unmet need is the Gap. Back to the Future

  15. Defending the Piggy Bank • Q: The more I save for college the less the school/government will give me? • Therefore, I shouldn’t save right? Back to the Future

  16. A: Wrong! Back to the Future

  17. Cuts Down on Borrowing! • Saving for college is always a good idea. Since most financial aid comes in the form of loans, the aid you are likely to receive will need to be repaid. Tucking away money could mean that you have fewer loans to repay, and it won’t make you ineligible for aid if you need it. A family’s share of college costs is based mostly on income, not assets such as savings. Back to the Future

  18. Federal Work Study • Q: You’ll find a Federal Work Study job for me and if I don’t earn all of it the college will just bill me or pay it, right? • A: No. Back to the Future

  19. Discussion topics: • How does CWS work at your school? • What works and what doesn’t? • Why is it such a hard concept for some people? • What explanations work? Back to the Future

  20. Unused Financial Aid Back to the Future Q: Millions of dollars in financial aid go unused every year. How can I get some? A: ??? Shhhhhh We keep our unused financial aid down in the basement. How about you??

  21. Fact: Most financial aid comes from the federal government. Most “unclaimed” money is slated for a few eligible candidates, such as employees of a specific corporation or members of certain organizations. Scholarship resources at your school? Resource: Outside Scholarship Resources Back to the Future

  22. The Borrowers • Q: I’ll be able to get enough loans to cover me, right? • A. Maybe not… Back to the Future

  23. Discussion Topics: • Federal loans • Private loans • Bad credit • Good credit • Building good credit • Losing good credit Back to the Future

  24. Current Buzzword: “Financial Literacy” We aren’t financial planners! Resource: Glossary of Money Words Back to the Future

  25. What are your Questions??? Back to the Future

  26. Thank You • Kim Kuhajda – Baldwin-Wallace College • Carolyn McCluskey – Baldwin-Wallace College • Monica Miller – EdAmerica • Cheryl Willard – Baldwin-Wallace College Back to the Future

  27. Information for this Presentation was obtained at www.usatoday.com/money/perfi/basics/2008-04-17-myths-mistakes_N.htm www.collegeboard.com/student/pay/add-it-up/396.html www.ceastudyabroadblog.com/2007/08/study-abroad-scholarships-and-financial.html www.collegeplanningservices.org http://www.stfrancis.edu/finaid/commis.htm Back to the Future

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