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What Every Graduate Financial Aid Administrator Should Know About Undergraduate Financial Aid

What Every Graduate Financial Aid Administrator Should Know About Undergraduate Financial Aid. Karen Sokol Director of Financial Resource Management Seton Hall Law Joe Weglarz Executive Director, Student Financial Services Marist College. Overview of Marist College.

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What Every Graduate Financial Aid Administrator Should Know About Undergraduate Financial Aid

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  1. What Every Graduate Financial Aid Administrator Should Know AboutUndergraduate Financial Aid Karen Sokol Director of Financial Resource Management Seton Hall Law Joe Weglarz Executive Director, Student Financial Services Marist College

  2. Overview of Marist College • Total number of students: • Undergraduate: 4,300 • Graduate: 1,000 • Total number of applications received for 2009-10: 9,900+ • 85% of students receive some form of financial aid • Marist awards over $30 million in institutional aid • Marist processes over $45 million in loans EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  3. Overview of Seton Hall Law • Total number of students: 1,100 • Total number of applications received for 2008 Class: 3,536 • 85% of students receive some form of financial aid • Seton Hall Law awards over $8 million in institutional aid • Seton Hall Law awards over $30 million in loans EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  4. Agenda • Forms • Types of Aid • Conclusion • Q & A EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  5. Why? • Student Expectations • Marketing Pieces: • Marist Affordability Guide • Aggregate Loan Limits EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  6. The Purpose of Financial Aid Primary goal is to assist students in financing their education and is achieved by: • Evaluating family’s ability to pay • Distributing limited resources in an equitable manner • Providing a balance of gift aid and self-help aid EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  7. What is Financial Aid? • Scholarships • Grants • Loans • Employment Opportunities EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  8. Forms Undergraduate Graduate • FAFSA • CSS Profile • Institutional Application • FAFSA • Need Access or other Financial Aid Form • Institutional Application EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  9. The College Scholarship Service (CSS)Financial Aid Profile • Used by some colleges and universities to award their own private financial aid funds • Students should register at least two weeks before the earliest school or scholarship program filing date you need to meet. • The student completes a personalized PROFILE application based on his/her information and college choices • All students are charged $25 for the initial application. This covers the costs of creating your PROFILE Application and the first school report. You will be charged $16 for each additional college or program to which you want information sent. • Students register for the PROFILE service online at https://profileonline.collegeboard.com/index.jsp EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  10. What Is The EFC? EFC = Expected Family Contribution (Most schools use to determine and award financial aid) • Cost of Attendance • Determined by each school • May include: • Tuition and Fees • Room and Board • Books, Travel, and Miscellaneous Expenses Cost of Attendance (minus) The Family’s EFC = Financial Need EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  11. 5 Factors Considered in Calculating the EFC: • Income • Assets • Household size • Number of students in college • Age of older parent • Examples of Assets: • Educational IRA Accounts • 529 Savings Plan • Prepaid Tuition Plan • Trusts • Inheritance • Stocks • Cash • Mutual Funds EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  12. Undergrad: Dependency Questions • Were you born before January 1, 1986? • As of today are you married? (Answer "Yes" if you are separated, but not divorced.) • At the beginning of the school year 2009-2010 will you be working on a master's or doctorate program (such as an MA, MBA, MD, JD, PhD, EdD, or graduate certificate, etc.? • Are you currently serving on active duty in the U.S. Armed Forces for purposes other than training? EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  13. Undergrad: Dependency (Cont.) • Are you a veteran of the U.S. Armed Forces? • Do you have children who receive more than half of their support from you between July 1, 2009 and June 30, 2010? • Do you have dependents (other than children or spouse) who live with you and who receive more than half of their support from you, now and through June 30, 2010? EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  14. Undergrad: Dependency (Cont.) • At any time since you turned age 13, were both your parents deceased, were you in foster care or were you a dependent or ward of the court? • Are you or were you an emancipated minor as determined by a court in your state of legal residence? • Are you or were you in legal guardianship as determined by a court in your state of legal residence? • At any time on or after July 1, 2008, did your high school or school district homeless liaison determine that you were an unaccompanied youth who was homeless? EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  15. Undergrad: Dependency (Cont.) • At any time on or after July 1, 2008, did the director of an emergency shelter or transitional housing program funded by the U.S. Department of Housing and Urban Development determine that you were an unaccompanied youth who was homeless? • At any time on or after July 1, 2008, did the director of a runaway or homeless youth basic center or transitional living program determine that you were an unaccompanied youth who was homeless or were self-supporting and at risk of being homeless? "YES" to ANY of these questions on the FAFSA - "Independent" "NO" to ALL of these questions - "Dependent“ EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  16. Undergrad: Dependency Overrides • If you have reason to appeal your dependency status, you must clearly demonstrate an adverse family situation in order for us to consider you independent for financial aid purposes. This is called a dependency override, and is considered on a case-by-case basis. EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  17. Important Points • Graduate students are independent • Financial aid and state requirements may vary with institutions • The FAFSA must be filled out or renewed every year the student is in college in order to be eligible for financial aid • Don’t assume that all colleges will meet 100% of your demonstrated financial need EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  18. Important Points– Do Either of These Apply? • 529 College Saving Plans: • For a student who must report parental information, the accounts are reported as parental investments on the FAFSA, including all accounts owned by the student and all accounts owned by the parents for any member of the household. • Dislocated Worker: • In, general, a person is considered a dislocated worker if they meet one of the conditions specified in questions 85 and 103 on the FAFSA EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  19. Frequent FAFSA Errors • Divorced/remarried parent information • Income earned by parents/step-parents • Untaxed income • U.S. income taxes paid • Household size • Number of post-secondary education students • Real estate and investment net worth EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  20. Undergraduate: Types of Gift Aid Federal • Federal Pell Grant: $976 - $5,350 • Supplemental Educational Opportunity Grant (SEOG) • Academic Competitiveness Grant (ACG) • 1st academic yr. - $750 • 2nd academic yr. - $1,300 • National Science and Mathematics Access to Retain Talent Grant (SMART) • 3rd yr. - $4,000 • 4th yr. – $4,000 EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  21. Undergraduate: Types of Gift Aid State • NY State TAP: $500 – 5,000 • NJ State TAG: $2,850 at a County College to $10,718 at an Independent College or University • Vermont State Incentive Grant $500 – 10,800 for 2008-09 • Rhode Island State Grant-$250 – 1,200 Institutional • Need-Based Grant in Aid EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  22. Undergraduate: Types of Scholarship Aid State • NY State Scholarship for Academic Excellence • NY Lottery-Leaders of Tomorrow Scholarship • NJ STARS, NJ STARS II, Edward J. Bloustein Distinguished Scholars • Urban Scholars Award, NJ World Trade Center Scholarship Institutional • Merit Scholarship • Athletic Scholarship • Music scholarship • Debate Scholarship Private • Endowed and Outside Scholarships EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  23. Self-Help Aid • EMPLOYMENT • FederalWork-Study • (Need-based) • Funds generally go directly to student LOANS • Federal Stafford • Federal Perkins • Federal PLUS • Private EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  24. Federal Stafford Loan (Subsidized and Unsubsidized) Subsidized Stafford: • Need-Based • Government pays interest earned while in school Unsubsidized Stafford: • Financial need is not a consideration • Interest is accruing while the student is in school • Interest payments can be made or deferred Subsidized Loan: Effective 07/01/09 fixed interest rate of 5.6% Unsubsidized Loan: Effective 07/01/09 fixed interest rate of 6.8% EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  25. Annual Stafford Loan Limits • $5,500 Freshman • 0 - 29 earned credits • $6,500 Sophomore • 30 - 59 earned credits • $7,500 Junior & Senior • 60 - 89 earned credits for Junior • 90-120 earned credits for Senior BASE ANNUAL LOAN LIMITS • Grace period and deferment provisions: • 6 months after student falls below half-time status (6 credits) or graduates EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  26. Federal Perkins Loan • Made through participating schools to undergraduate, graduate and professional degree students • Offered to students who demonstrate financial need • Available to students enrolled full time or part-time • Repaid to your school • Maximum Annual Loan Amount – $5,500 for undergraduate students with an aggregate maximum of $27,500. $8,000/year for graduate and professional students with an aggregate maximum of $60,000 • Interest rate of 5% with a nine-month grace period • Repayment period up to 10 years EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  27. Federal PLUS Loan • Borrowers are parents of dependent undergraduate students • Annual loan limit: cost of attendance minus all other financial aid • Fixed Interest of 8.50% for FFEL or 7.9% for Direct Lending • Repayment begins after final disbursement for the year. However, beginning in the 2008-2009 academic year, parents are able to apply for a deferment. They must contact the lender. EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  28. Private Loans • Loan in the student’s name • Credit-based • Can borrow up to the cost of attendance minus other aid • The interest rates and terms vary with lender EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  29. Graduate Aid: Grants Federal • Federal Pell Grant: Graduate Students not eligible • Supplemental Educational Opportunity Grant $0 • Academic Competitiveness Grant (ACG) $0 • National Science and Mathematics Access to Retain Talent Grant (SMART) $0 State • NY State TAP: $75-550 • NJ State TAG: $0 • (NJ) EOF: $2,850 maximum • (NY) Clyde Ferguson: varies – NJ law schools only Institutional • Need-Based Grant in Aid – varies depending in institutional funding EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  30. Graduate Aid: Scholarships State • None? Institutional • Merit Scholarships • Endowed Scholarships Private • Outside Scholarships EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  31. Graduate Aid: Loans • Subsidized Stafford Loans – • 6.8% interest rate, no reduction in the interest rate • $8,500 annually • Unsubsidized Stafford Loans – • 6.8% interest rate • $12,000 annually • Perkins Loans – • 5% interest rate • Up to $8,000 annually • Graduate Plus Loans – • 7.9% interest rate (Direct) or 8.5% interest rate (FFEL) • COA less other aid EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  32. Graduate Aid: Student Employment • Federal Work Study • Research Assistants • Graduate Assistants • Fellowships EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  33. Scholarship Search • College Board www.collegeboard.com/paying • FastWeb www.fastweb.com • Sallie Mae www.thesalliemaefund.org • Scholarship America www.scholarshipamerica.org EASFAA Conference May 17 - 20, 2009 Washington, D.C.

  34. Questions? EASFAA Conference May 17 - 20, 2009 Washington, D.C.

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