Financial Aid 101: An Overview

1. Financial Aid 101:An Overview Alex Muro Director of Financial Aid School of Forestry and Environmental Studies Assistant Director Student Financial Services Yale University

2. The Forms You Need to Know • US citizens or permanent residents • FAFSA (Free Application for Federal Student Aid) • CSS Financial Aid PROFILE • Institutional requirements • International students • ** Aid not available at all schools ** • Institutional requirements

3. The Forms You Need to Know (continued) • FAFSA (Free Application for Federal Student Aid) • Required by all colleges and universities • Available January 1 for next school year • January 1, 2011 for 2011/2012 • Free • www.fafsa.ed.gov • PIN • Eligibility for federal financial aid

5. The Forms You Need to Know (continued) • CSS Financial Aid PROFILE • Required by some colleges and universities • Available October 1 for next school year • October 1, 2010 for 2011/2012 • $25 for first school and $16 for each additional school • profileonline.collegeboard.com • Eligibility for institutional financial aid

7. The Forms You Need to Know (continued) • Institutional Requirements – check with each individual school • Institutional application • Tax return for prior year • 2010 for 2011/2012 • Verification worksheet

8. Vocabulary • COA = Cost of Attendance (aka budget) • Direct expenses (tuition, room, board, fees) + indirect expenses (books, supplies, transportation, personal expenses) • EFC = Expected Family Contribution • What a family is expected to contribute toward the COA • Not same as what will be paid to school • Financial Need = COA minus EFC

9. Vocabulary (continued) • Need-based aid • Non need-based aid • Awarded on basis of student’s ability or talent or ethnic heritage • Meeting full need • Gapping • Need-aware admissions policy • Need-blind admissions policy

10. www.collegeboard.com • Scholarship Search • Compare Aid Awards • College Financing Calculators • Expected Family Contribution (EFC) • Federal Methodology (FM) • Institutional Methodology (IM)

11. “Insider” Tips • Comply with deadlines • Examples (Yale) • November 1 – Early Action (notification December 15) • March 15 – Regular Decision (… April 1) • April 15 – continuing students (… June 1) • Checklist for each school • Copies of all submitted forms • First come, first served • Not only the first year but every year! • Estimate when necessary

12. “Insider” Tips (continued) • Focus on net price, not sticker price • All schools required to provide net price calculator on their websites by October 2011 • Ask questions • Review all available financing options, such as loans and payment plans • Explain special circumstances with initial application • Notify financial aid office of any significant changes in income and assets as soon as possible

13. Income • Taxed income • In general, Adjusted Gross Income from tax return • Untaxed income • Most common sources include contributions to retirement plans and child support received

14. Assets • Cash • Checking and savings accounts • Investments (not including retirement) • Home equity (IM only) • Other real estate • College savings plans

15. Federal Grants • Pell Grant • $5,550 annual maximum for 2010/2011 • Supplemental Educational Opportunity Grant (SEOG) • Pell eligible • $4,000 annual maximum for 2010/2011 • Amount and recipients determined by school

16. Federal Grants (continued) • Teacher Education for Assistance for College and Higher Education (TEACH) Grant • $4,000 annual maximum for 2010/2011 • 3.25 GPA or qualifying score on admissions test • Agree to teach in low income school in specific subject after graduation

17. Loans • Federal • William D. Ford Federal Direct Loan Program (Direct Loan Program) • Direct Subsidized and Unsubsidized Loans for student borrowers (includes former Stafford Loans) • Direct Parent PLUS Loans for parent borrowers • Private

18. Direct Loans • Fixed interest rate of 6.8%* • No credit check required • No payments required while student is enrolled at least half-time (in-school deferment) and for 6 months after graduation (grace period) • Different repayment, deferment, and forbearance options

19. Direct Loans (continued) • Subsidized: need-based • Federal government pays interest on loan while student is in school and during grace period • Unsubsidized: not need-based • Student must make interest-only payments while in school and during grace period to avoid capitalization

20. Dependent Student without PLUS Denial

21. Direct Loan Forgiveness • Volunteer work • Military • Teaching • Legal and medical studies • Medicine • Public service • studentloans.gov

22. Direct Parent PLUS Loan • Fixed interest rate of 7.9% • Credit check required • No debts more than 90 days past due • No bankruptcy, foreclosure or similar action within the past 5 years • Repayment terms same as Direct Unsubsidized Loan if in-school deferment requested

23. Direct Parent PLUS Loan (continued) • Not available to parents of independent students • Annual loan limit = cost of attendance minus other aid

24. Private Loans • Interest rates usually variable but sometimes capped • Credit check required • Repayment terms usually same as Direct Unsubsidized Loan • Consider state sponsored lenders • CT Higher Education Supplemental Loan Authority (CHESLA)

25. Resources • US Department of Education studentaid.ed.gov • College Board www.collegeboard.com • FinAid Guide to Financial Aid www.finaid.org

26. Resources (continued) • High school • College or university to which student is applying • Beware of scams • Most, if not all, information that you may need is available for free!

27. My Contact Information Alex Muro Email alexander.muro@yale.edu Phone Monday, Tuesday, and Friday 203-432-5105 Wednesday and Thursday 203-436-4068