Navigating Financial Aid: Your Path to College Affordability

1. Financial Aid 101 September 24, 2019 Diamond McCreadyAssociate Director of Financial Aid

2. Agenda • What is financial aid? • What aid is available? • Where does it come from? • How is aid determined? • Who is eligible? • How do students apply? • What happens next?

3. What is Financial Aid? Financial aid makes college affordable for you. • Funds provided to students and families to help pay for college expenses. • It is intended to bridge the gap between what college cost and what your family can afford to pay. If you think you can’t afford college, think again. There’s aid out there!!

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

5. Sources of Financial Aid

6. Federal Financial Aid • Grants • Pell Grant • Supplemental Education Opportunity Grant (SEOG) • Teach Grant • Iraq and Afghanistan Service Grant (IASG) • Work Study • Need based award provides funds earned through part-time employment on and off campus • Student receives paycheck to help with expenses

7. Federal Financial Aid, cont. • Federal Direct Loans • Student Loans- student’s name, fixed interest rate • Subsidized: Need-based, government pay interest while in school • Unsubsidized: Non need based, interest starts accruing • Parent PLUS loan- parent’s name, fixed interest rate, credit check required www.studentaid.ed.gov

8. State Financial Aid • Residency requirements usually apply • Award aid on the basis of both merit and need • Deadlines vary by state

9. State Financial Aid- Maryland • Maryland Higher Education Commission • http://www.mhec.state.md.us • Requirements: • Parent and student must be a MD resident • Must use aid at a MD school • Must file FAFSA or MSFAA by March 1st (list a MD school) • FAFSA: US Citizens or Eligible Non-Citizens • MSFAA: Non-Citizens who qualify for in-state tuition (ineligible for federal aid) • Some programs require separate applications • Automatically reviewed for Educational Assistance Grant and Guaranteed Access Grant • Guaranteed Access Partnership Program (GAPP) Match Program

10. State Financial Aid- Maryland www.mdelect.net • Delegate • Could be up to 3 delegates, depending on size of district • No additional requirements, just a separate application • Minimum $200 • Senatorial • No additional requirements, just a separate application • Minimum $400 Contact in February!

11. Institutional Financial Aid • Award aid on the basis of both merit and need • Aid may be gift aid or self help aid • Use information from the FAFSA and/or institutional applications (ex. CSS Profile) • Deadlines and application requirements can vary by institution • Check with each school

12. Institutional Financial Aid • Criteria may differ for each scholarship/grant and may or may not include the following: • Financial Need • Academic Merit (ex. HS grades, HS rank, test scores) • Special Skills or Talents (ex. Athletics, performing arts)

13. Private Sources of Financial Aid • Financial aid funding that comes from private organizations • Civic Organizations • Professional Associations • Private Businesses • Deadlines and application procedures can vary widely • Start Early!!! • Never pay to apply for a scholarship

14. Private Sources of Financial Aid • Check with your high school guidance counselor • Possible list of outside scholarships • Does your high school offer scholarships • Check the institutions you’re applying to outside scholarship webpage • Use reliable scholarship search services • http://www.fastweb.com • https://bigfuture.collegeboard.org/scholarship-search • https://www.central-scholarship.org/

15. Determining Financial Need

16. Cost of Attendance (COA) • Differs widely and determined by individual schools • Includes an allocation for direct and indirect charges • Direct Charges: (Typically charged by the college) • Tuition and Fees (differs based on in-county, out of county, out of state) • Room and board(differs based on on-campus, off-campus, or with parent) • Indirect Charges: (Normally not charged by the college) • Allowance for books and supplies • Allowance for transportation • Allowance for other miscellaneous expenses Note: COA is the maximum aid you can have- it’s not exactly what you will end up paying!

17. COA Comparison Chart This is just the ‘sticker’ price, not the final price. You will not be billed for all items listed. You will be charged for tuition, fees, and room and board, respectively.

18. Expected Family Contribution (EFC) • Expected Family Contribution • (EFC) A need analysis formula established by Congress determines a student’s Expected Family Contribution; using information reported on the FAFSA

19. Expected Family Contribution (EFC) • Two components: • Student contribution • Parent contribution (if student is dependent) • Same amount at every college

20. General Student Eligibility Criteria • Must be enrolled or accepted for enrollment in eligible program of study • Must have a HS Diploma or GED (or homeschooled certification) • Must be pursuing a degree, certificate or other recognized credential • Must be a U.S. citizen or eligible noncitizen • Must be registered with Selective Service (if male) • May not have been convicted of a drug-related offense while receiving Title IV aid • Must have a valid Social Security Number (SSN) • May not be in default on a federal student loan • Must now owe an overpayment of federal grant or loan funds

21. How to Apply for Financial Aid To be considered for student aid, a student must complete all forms required by a college. Note: Communicate with each college to find out what is required for a complete application.

22. Free Application for Federal Student Aid (FAFSA)

23. Completing the FAFSA What information is needed? • Social Security Number. Be sure that it is correct and your name matches completely! • Records of income, such as income earned from work and business, child support paid or received, and any other untaxed income. If available refer to W-2 Forms and Federal Income Tax Return IRS Form 1040, 1040A, or 1040EZ. Use income records from 2 years prior: for instance, when completing the 2020-2021 FAFSA refer to 2018 tax information. • Information about assets, such as savings, certificates of deposit, stock, bonds, 529 plans and other college savings programs, investment real estate, business, and farm. • Driver’s license number, if the student has one. • Alien Registration Number, if not a U.S. Citizen

24. Federal Student Aid ID (FSA ID) • Website: https://fsaid.ed.gov • A username and password that you must use to log in to certain U.S. Department of Education (ED) websites. • Used to sign FAFSA electronically (student and parent) • May be used by students and parents throughout aid process, including subsequent school years

25. Independent Student Definition • At least 24 years old by December 31 of award year covered by the FAFSA; • Graduate or professional student; • Married; • Has children or dependents (other than a spouse) for whom the student provides more than half support; • Orphan or ward/dependent of the court or in foster care since age 13; • Veteran of U.S. Armed Forces or currently serving on active duty (for other then training purposes) in the Armed Forces; or • In legal guardianship as determined by state or emancipated minor, or • Determined to be homeless or unaccompanied youth, or • Determined to be “independent” by financial aid administrator based on unusualcircumstances

26. Who is considered a parent? • Biological or adopted parent(s) • If parents are separated/divorced and not living together use the custodial parent • If custodial parent is re-married must report the step-parent’s info • If your legal parents are unmarried, but live together, both parents information must be reported • For the purposes of the FASFA and EFC calculation, legally married same-sex couples are treated as married If unable to obtain parent information, student should contact the institution

27. Additional FAFSA Information • College and housing information- can list up to 10 schools • If necessary, corrections (not updates) may be made to FAFSA • IRS Data Retrieval Tool • Should be available when FAFSA opens! • Reduces documents requested by financial aid offices • Reduced likelihood or errors which could impact EFC calculations

28. CSS Profile • Used by SOME colleges and organizations to award their institutional/private funds • Asks similar questions to the FAFSA and even more… • Looks at primary home value • Looks at business/farm value • Looks at what makes up the AGI • Looks at noncustodial parent (NCP) • Some schools ask additional questions • Schools apply their own adjustments to come up with an ‘institutional’ methodology for the EFC • Available Oct 1st! • Login using College Board Information • List of institutions using CSS Profile can be found at: https://profileonline.collegeboard.org/prf/PXRemotePartInstitutionServlet/PXRemotePartInstitutionServlet.srv

29. What Happens Next?(After FAFSA submission) • Schools electronically download information • Schools may ask for additional documentation (tax forms, W-2s, citizenship paperwork, etc.) • Schools will send an award notification (estimated or actual, after a student has been admitted) • Compare offers and terms

30. Special Circumstances If there has been a significant and recent change in your family circumstances, you may be eligible to have there circumstance considered. • Change in employment status • Changes in parent marital status • High medical expenses not covered by insurance • Unusual dependent care expenses Most schools call this a Professional Judgment Appeal

31. Other options to pay for college • Tuition payment plans (offered by school) • 529 Savings & Prepaid Tuition Programs • Employer Tuition Reimbursement Plan • Military Tuition Assistance/ Veterans Benefits • Tuition Waivers • Alternative (private) student loans

32. Questions to ask? • Are the awards renewable or must you apply annually? • Are the award amounts increased/decreased? • What are the stipulations? (Maintain specific GPA, major, need, etc.) • What if my EFC increases or decreases? • What if I get other sources of aid? Will my awards change?

33. Where Do I Go From Here? • Obtain and review admissions and financial aid web sites and materials for each school to which you are applying • Meet all financial aid application deadlines • Complete FAFSA and other application materials, such as CSS PROFILE application, if required by school or state agency • Submit all requested follow-up documents • Investigate other sources of aid

34. Financial Aid Do’s • Apply early and pay close attention to all deadlines. • Get an FSA ID now at fsaid.ed.gov. Be sure to keep it somewhere you will remember. • Use your legal name, as shown on your Social Security card. • Keep a copy of everything you submit.

35. Financial Aid Don’ts • Assume that one college will need the same information as the next. • Assume you won’t qualify for financial aid! • Forget to sign the FAFSA and hit submit.

36. Key Reminders • Must apply for FAFSA annually • Be sure to sign FAFSA • Never pay to complete FAFSA or scholarship applications • List at least 1 Maryland school on FAFSA • Even if you do not think you will qualify, still apply

37. Contact Information! Diamond McCreadyAssociate Director of Student Financial AidGoucher CollegeDiamond.McCready@goucher.edu410.337.6430

38. Questions Thank you for coming today!