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Financial Aid for College

Financial Aid for College. Scope of this Workshop . What is financial aid College costs How to apply Determination of eligibility Need-based programs Alternatives. Types of Student Financial Aid . Grants Scholarships Loans Employment. Student Financial Aid. Merit-based academics

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Financial Aid for College

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  1. Financial Aid for College

  2. Scope of this Workshop • What is financial aid • College costs • How to apply • Determination of eligibility • Need-based programs • Alternatives Financial Aid Presentation Project,NCASFAA/NCSEAA

  3. Types of Student Financial Aid • Grants • Scholarships • Loans • Employment Financial Aid Presentation Project,NCASFAA/NCSEAA

  4. Student Financial Aid • Merit-based • academics • talent • athletic • others • Need-based • financial considerations Financial Aid Presentation Project,NCASFAA/NCSEAA

  5. Student Financial Aid Need-based aid ……. • Family is responsible for costs to the extent of its ability to pay college costs • Provides access and choice • Annual determination of eligibility Financial Aid Presentation Project,NCASFAA/NCSEAA

  6. College Costs • Direct • Indirect • Vary widely from college to college Financial Aid Presentation Project,NCASFAA/NCSEAA

  7. Direct College Costs • Tuition • Required fees • Room • Meals • Books and Supplies Financial Aid Presentation Project,NCASFAA/NCSEAA

  8. Indirect College Costs • Transportation and miscellaneous personal expenses, including documented costs for a personal computer • Loan fees Financial Aid Presentation Project,NCASFAA/NCSEAA

  9. Indirect College Costs • Study abroad costs • Dependent care expenses • Disability-related expenses • Cooperative education program costs Financial Aid Presentation Project,NCASFAA/NCSEAA

  10. Applying for Federal Financial Aid • Free Application for Federal Student Aid (FAFSA) • Required for all types of federal aid • Use the worksheets available from high schools & financial aid offices to complete the online form. • 96% of forms are filed online! • Paper forms can be obtained by calling 1-800-4-FED-AID (1-800-433-3243) • Complete on the Web at www.fafsa.ed.gov after January 1st, preceding the academic year • Results sent electronically to institutions listed by student on FAFSA and to the student (if you provide your email address) Financial Aid Presentation Project,NCASFAA/NCSEAA

  11. Applying for State Financial Aid • The FAFSA is the application for most major state programs: • NC Education Lottery Scholarship • UNC Need-Based Scholarship • NC Community College Scholarship • NC Student Incentive Grant • EARN (new for 2008-2009) • And others • Other state programs require additional forms. See CFNC.org for details by program. Financial Aid Presentation Project,NCASFAA/NCSEAA

  12. Applying for Financial Aid • Other forms ??? • Institutional application • College Scholarship ServicePROFILE • State applications • Outside scholarship applications Financial Aid Presentation Project,NCASFAA/NCSEAA

  13. Saturday, February 9, 2008 Any time between 9 a.m. and noon at all locations except Charlotte Get FREE help completing your FAFSA online from college financial aid officers. Check CFNC.org/fafsaday or school counselor for closest location. Register toll-free, 866-866-CFNC or online at CFNC.org/fafsaday Sponsored by College Foundation of North Carolina and the North Carolina Association of Student Financial Aid Administrators. Need Help?FAFSA Day 2008 Financial Aid Presentation Project,NCASFAA/NCSEAA

  14. Offers to help find aid are everywhere: • In the mail • Over the Internet • In newspapers • In magazines • Over the phone Financial Aid Presentation Project,NCASFAA/NCSEAA

  15. Offers may be: • Legitimate offers of information and assistance • Example: CFNC.org and FAFSA Day • Misleading offers from individuals or companies trying to make money off of unsuspecting parents and students Financial Aid Presentation Project,NCASFAA/NCSEAA

  16. How do you identify offers that should be avoided? • Organizations that say they can help you locate more aid and then charge you a fee • Anyone who charges you a fee for information about financial aid • If they charge you a fee to apply for federal financial aid (FAFSA) • If they charge a fee to receive financial aid Financial Aid Presentation Project,NCASFAA/NCSEAA

  17. Potential “Scams” • “The scholarship is guaranteed or your money back.” No one can guarantee your scholarship before it is awarded. • “You can’t get this information anywhere else.” Everyone has access to the same information. Financial Aid Presentation Project,NCASFAA/NCSEAA

  18. Other Misleading Offers • “The scholarship requires a small fee.” Never pay a fee to get a scholarship. • “You are a finalist” for an award you never applied for. If you did not apply, it is not a legitimate offer. • “Come to our free seminar and we’ll show you how to get more financial aid.” This is a sales pitch. Don’t pay for information that you can get elsewhere for free. Financial Aid Presentation Project,NCASFAA/NCSEAA

  19. Where can you find free information about financial aid? • Contact College Foundation of North Carolina at CFNC.org or toll free at 866-866-CFNC • Service of the State of North Carolina • Talk to the financial aid administrator at the college of choice • Ask your high school counselor or visit the local library • Apply for federal financial aid at FAFSA.ed.gov Financial Aid Presentation Project,NCASFAA/NCSEAA

  20. Remember! You should never have to pay: • For information about college financial aid • To apply for federal financial aid (FAFSA) • To receive financial aid for college Financial Aid Presentation Project,NCASFAA/NCSEAA

  21. Applying for Financial Aid • Meet earliest deadline of colleges in which you are interested • Complete all questions accurately • Estimate if necessary to meet early deadlines • Don’t wait until you are admitted to file the FAFSA • Keep a photocopy of all documents for your records Financial Aid Presentation Project,NCASFAA/NCSEAA

  22. Applying for Financial Aid • Additional documentation may be required… for VERIFICATION of information • Tax returns • Untaxed income (Social Security, Child support, Income reported on FAFSA worksheets, other) • Family size • Family members attending college • Other... Financial Aid Presentation Project,NCASFAA/NCSEAA

  23. Determination of Expected Family Contribution Parents’ Contribution + Student’s Contribution _________________________ = Expected Family Contribution (EFC) Financial Aid Presentation Project,NCASFAA/NCSEAA

  24. Determination of Parents’ Contribution Parents’ total income for calendar year (Taxable + Non-taxable) - Federal Tax Paid (not withheld) - State Tax Paid - Social Security Withholding - Living Allowance - Child Support paid by parents - Employment allowance ___________________________________ = Available Parent Income Financial Aid Presentation Project,NCASFAA/NCSEAA

  25. Determination of Parents’ Contribution Total net assets (excluding home equity) - Protection allowance (varies by age of parent) ___________________________ = Net Worth X 12% ____________________ = Amount of assets used in determining EFC Financial Aid Presentation Project,NCASFAA/NCSEAA

  26. Determination of Parents’ Contribution Available Income + Asset Contribution ___________________ = Adjusted Available Income X Percentage ___________________ = Parent Contribution Parent contribution will be divided by the number of family members in college, not including parents. Financial Aid Presentation Project,NCASFAA/NCSEAA

  27. Determination of Student’s Contribution Student’s total income for calendar year (taxable and non-taxable) - Federal tax paid (not amount withheld) - State tax paid - Social Security withholding - Income protection allowance ($3,080) __________________________________ = Student’s Available Income X 50% __________________________________ = Student’s Contribution from Income Financial Aid Presentation Project,NCASFAA/NCSEAA

  28. Determination of Student’s Contribution Total net assets X 20% ________________ = Student’s Contribution from assets Financial Aid Presentation Project,NCASFAA/NCSEAA

  29. Determination of Student’s Contribution Student contribution from income + Student contribution from assets __________________________ = Total Student Contribution Financial Aid Presentation Project,NCASFAA/NCSEAA

  30. Determination of EFC Parents’ contribution + Student’s contribution ______________________ = Expected Family Contribution Financial Aid Presentation Project,NCASFAA/NCSEAA

  31. Basic Formula for Aid Cost of Attendance – Expected Family Contribution __________________________ = Eligibility for Need-Based Funds Financial Aid Presentation Project,NCASFAA/NCSEAA

  32. Potential Institutional Adjustments to EFC for Institutional Funds • Establishment of a minimum level of student contribution • Use of home equity in determination of net assets • Adjustments for medical/dental expenses • Adjustments in the losses/depreciation claimed for business/farm operations Financial Aid Presentation Project,NCASFAA/NCSEAA

  33. Special Circumstances • Significantchange in your family… • Unemployment of a parent • Death in the family • Change in parents’ marital status Notify the financial aid office at your college of these special circumstances. Be prepared to provide documentation of any change, including the financial impact of the change. Financial Aid Presentation Project,NCASFAA/NCSEAA

  34. Sources of Financial Aid • Federal Government • State Programs • Institutional funds • Outside agencies Financial Aid Presentation Project,NCASFAA/NCSEAA

  35. Gift Scholarships Grants Self-help Loans Employment Types of Financial Aid Financial Aid Presentation Project,NCASFAA/NCSEAA

  36. Federal Aid Programs • Federal Pell Grant • Academic Competitiveness Grant • National SMART Grant • Federal Supplemental Grant • Federal Work-Study • Federal Perkins Loan • Federal Stafford Loan • Federal Ford Direct Loan Financial Aid Presentation Project,NCASFAA/NCSEAA

  37. North Carolina Aid Programs (partial listing) • NC Student Incentive Grant • NC Legislative Tuition Grant • NC State Contractual Scholarship • NC Community College Grants • NC Education Lottery Scholarship • Education Access Rewards NC Scholars Fund (EARN) (new ‘08-’09) • UNC Need-Based Grants • Nurse Scholarships and Loans • Teacher Scholarships and Loans Financial Aid Presentation Project,NCASFAA/NCSEAA

  38. Institutional Aid Grants & Scholarships Loan Programs Student Employment Outside Agencies Local organizations Churches Civic Groups Parents’ employers Veterans Administration Vocational Rehabilitation Services Institutional and Outside Aid Financial Aid Presentation Project,NCASFAA/NCSEAA

  39. Is that all there is? • Federal Unsubsidized Loans (Stafford or Direct) • Federal PLUS Loans for parents of dependent students and for graduate or professional students Financial Aid Presentation Project,NCASFAA/NCSEAA

  40. Is that all there is? • Private Alternative Loans for students or parents • Last resort--Always apply for federal loans first! • College Payment Plans • Outside Scholarships • Tax credits--Hope and Lifetime Learning Financial Aid Presentation Project,NCASFAA/NCSEAA

  41. Available for the first two years of college Applies to tuition and required fees only. Can claim up to $1650 tax credit---better than a deduction since it comes directly off taxes owed. Can claim 100% of first $1100 expenses and 50% of the next $1100. Examples: If you paid tuition of $5000 in 2007, you will be able to claim $1650 on the tax return completed in early 2008. If you paid tuition of $1100, you will be able to claim only $1100. If you paid tuition of $1800, you can claim $1450 (all of the first $1100, and 1/2 of the remaining $700…which is $350). Tax Credits--Hope Tax Credit Financial Aid Presentation Project,NCASFAA/NCSEAA

  42. Tax Credits--Lifetime Learning • Available for all years • Can claim for professional development type classes as well as remaining undergraduate years and graduate years of college. • Can claim credit for 20% of tuition & fees, up to maximum of $2,000. • There are income restrictions on who can claim Lifetime and Hope Tax Credits….consult with your tax advisor! Financial Aid Presentation Project,NCASFAA/NCSEAA

  43. IRS Deductions and Credits for 2007 • Certain taxpayers will qualify to take a tax deduction for tuition and fees (even if they don’t itemize). • Deductions range up to $4000/year. • Families with adjusted gross incomes up to $80,000 (single filers) & $160,000 (joint filers) can claim credit. • Cannot claim Hope or Lifetime Learning credit in the same year for same student. • Check with tax preparer to see if you qualify! Financial Aid Presentation Project,NCASFAA/NCSEAA

  44. Additional Information • College Foundation of North Carolinahttp://www.cfnc.org • The Student Guide • Published by US Department of Education http://www.ed.gov/prog_info/SFA/StudentGuide • Student Financial Aid for North Carolinians • At the CFNC Web site, click on paying for college and then publications. • http://www.finaid.org • Publications in local libraries Financial Aid Presentation Project,NCASFAA/NCSEAA

  45. Summary • Lots of aid available from federal and state governments • Get a PIN now! www.pin.ed.gov • Student and parent must each have a PIN • Complete forms by deadlines • Use www.fafsa.ed.gov to complete, sign and submit application. Financial Aid Presentation Project,NCASFAA/NCSEAA

  46. Summary • Respond promptly to colleges if additional information requested • Tax returns or other information • College will notify via email, Web or mail of aid eligibility • Student should follow the colleges’ instructions to accept or decline aid offered. Financial Aid Presentation Project,NCASFAA/NCSEAA

  47. Questions?

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