Applying for Financial Aid 2020-2021 Academic Year

1. Applying for Financial Aid2020-2021 Academic Year Sean Martin Director of Financial Aid Services

2. Is this affordable? • Use each college’s Net Price Calculators (NPC) • to help you determine your estimated expected family contribution(EFC) FOR ONE YEAR • Remember: • 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 & deadlines

3. NET PRICE CALCULATOR TIPS • Use prior–prior year data – for 2020-21 use 2018 income. • Using exact amounts will give you a more accurate outcome. • If using estimates, it is OK to use calculator more than once with different income – results will not be completely accurate. • Don’t forget UNTAXED INCOME: • i.e. tax deferred pension contributions , child support, pension/IRA withdrawals 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.

4. 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? If so, do they still require a financial aid application? • Does the college award 100% of demonstrated need? • Avoid losing aid: make sure you meet application deadlines.

5. 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)

6. Definition of Financial Need Cost of Attendance MINUS Expected family contribution (EFC) calculated demonstrated ability to pay EQUALS Financial need

7. Comparison of Need by Cost

8. Meeting the Full Need or Gapping

9. Major factors in family contribution calculation • INCOME • Some schools will not allow losses on your tax return in the calculation. • ASSET BALANCES • NUMBER IN THE HOUSEHOLD being supported by the parents (more than 50%) • NUMBER OF DEPENDENTS IN COLLEGE • Some schools only allow dependents in undergraduate studies in the calculation • Any changes in the above in subsequent years WILL IMPACT your financial aid eligibility.

10. What information is used? • “PRIOR PRIOR” YEAR INCOME INFORMATION • Parent(s)’ and Student’s 2018 income • Parentassetsvalueat the time of the application • Exclude retirement account balance or primary residence home equity • Include trusts(for parent), 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 (Be careful on CSS Profile: Do not put this in student assets AND answer the 529 by other question. It will be doubled counted.) • # of household members: Parent(s) must provide at least 50% support • # of dependents attending college (at least half-time)(might be limited to dependents in undergraduate studies) *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.

11. 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

12. Federal Aid Eligibility Determined Using the FAFSA (FREE Application for Federal Student Aid) • https://fafsa.ed.gov • 2020-2021 FAFSA available 10/01/2019 • State of Connecticut deadline is 2/15/2020 (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.gov*****and 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/information 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.

14. 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 ncp OR the step parent – not all three • Items that may be used in the calculations: • Primary residence net home equity (value – debt) • Items such as losses and certain deductions on the tax return may be added back to the income total (i.e. depreciation, earned income credit) • 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

16. Federal Aid Includes:funding for 2019-20 not yet determined ALL NEED BASED: • GRANTS: • Federal Pell Grant – up to $6,195 • 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 direct subsidized/unsubsidized loans: • Interest rate: 4.53% Dept of Education origination fee: 1.059% • 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.

17. State Grants • For CT residents attending a college in CT • www.ctdhe.org/SFA/default.shtml • Up to $4,500 FUNDING NOT DETERMINED FOR 2020-21 YET • Roberta B. Willis Scholarship Program: • FAFSA required – must file by February 15, 2020 • Need based: EFC less than $11,000 (may change) • Usually up to around $3,000

18. 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

19. Sample Award Letter

20. 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.

21. 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

22. Other Payment Sources 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: 7.08% Dept. of Education Origination fee: 4.236% • 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.

23. Resources for you • High School Guidance Office • Financial Aid Offices • Colleges’ Websites • www.studentaid.ed.gov • www.finaid.org

24. RECAP • Visit College websites for deadlines & requirements • Use each College’s Net Price Calculator • Complete FAFSA (by 2/15/20) (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. • Explore all other potential resources for payment (outside scholarships, payment plans, loans etc.)

25. Questions???