Financial Aid 101 Fall 2019

1. Financial Aid 101 Fall 2019

2. Agenda • What is Financial Aid? • Cost of Attendance (COA) • Expected Family Contribution (EFC) • What is Financial Need? • All About the Free Application for Federal Student Aid (FAFSA) • Net Price Calculator • Types of Financial Aid • Financial Aid Award Letters • Searching for Scholarships • Questions?

3. What is Financial Aid? • Financial Aid is funding that is intended to help students pay education-related costs including  tuition, fees, room & board, books, supplies and other related expenses for their education at a college or university. • Financial aid may awarded based on: • Financial need (need-based) • Other criteria, such as academic or athletic ability (merit-based)

4. What is the Cost of Attendance? The term Cost of Attendance (COA) refers to an estimate of total expenses that students may incur while attending school for the academic year. The COA includes… Direct Institutional Costs: tuition, fees, room & board. Indirect Costs: Travel expenses, purchase of a computer, books, etc.

5. What is the Expected Family Contribution (EFC)? • Amount the federal government estimates a family can reasonably be expected to contribute towards their child’s college costs. • Calculated from a federal application form and a federal formula using student financial data, parent financial data, and household data. • The EFC amount is the same regardless of which college or university the student plans to attend.

6. What is Financial Need? Cost of Attendance –Expected Family Contribution *EFC = Financial Need

7. Examples of Financial Need • College ACollege BCollege C • COA $ 15,000 $40,000 $60,000 • - EFC $ 5,000 $ 5,000 $ 5,000 • = Financial • Need $ 10,000 $ 35,000 $55,000 • The EFC and a student’s Financial Need is determined by information collected on financial aid applications • FAFSA

8. Why is the EFC & Financial Need Important? Because It Helps Determine a Student’s Eligibility for Certain Types of Federal, State, and Institutional Aid

9. Free Application for Federal Student Aid (FAFSA) • To apply for federal aid, you need to complete an online form called the Free Application for Federal Student Aid, commonly referred to as the FAFSA. You can find the online application at www.fafsa.ed.gov • To begin the application, both you and a parent will need a FAFSA ID, which can be obtained by going to www.fsaid.ed.gov.This is an important password, you will use all four years of college, so be sure to keep a record of it.

10. Free Application for Federal Student Aid (FAFSA) For the 2020-21 academic year, you can file the FAFSA beginning October 1st2019

11. Common Documents Needed to Complete FAFSA • Social Security Numbers/Cards • US Permanent Resident Card, if non-citizen • Student, Parent Income Tax Information • 2018 Federal tax return & 2018 W-2s • Can use prior - prior year (PPY) filed & processed taxes • Records of untaxed income • Such as child support received, interest income • Cash, savings and checking account balances • Investments, including stocks, bonds, real estate • Excludes retirement accounts, value of primary residence, but includes values of 529s.

12. FAFSA: Student Section • Student Information & Eligibility • Basic info: address, email, name of high school, citizenship status • Student Income information • College Information • Up to 10 colleges may be listed; can be updated by correction; must choose housing option • Dependency Determination • Questions that will determine student’s dependency status

13. FAFSA: Parent, Income, & Signature Section • Parent Information & Income • Marital status, name, date of birth, SSN, state of residence • Household size, Number in college • Income reported on 2018 tax return • untaxed income, asset information • Signature Section • Sign using the student and parent’s FSA ID

14. Reporting & Updating Income: IRS Data Retrieval Tool • Connects to IRS for tax data of completed tax returns • Data usually available 2 weeks after filing taxes electronically • Can be used at first FAFSA submission or during updates/corrections

15. Common Questions: Eligibility • We don’t think we qualify for need-based financial aid, do we still file the FAFSA? YES!!! • Schools cannot determine institutional grants without the FAFSA • At some schools, FAFSA may be needed for merit-based aid

16. Common Questions: Dependence • Can a student apply for financial aid without reporting their parent’s information? • In most cases, students under 24 will be required to report parent information • For special circumstances, consult with the Financial Aid Office

17. Common Questions: Parents • If a student’s parents are divorced or separated, whose info is provided? • Custodial Parent • What if both biological parents are living together but unmarried? • Both parents file together • Do stepparents report their income? • Yes

18. After Applications are Filed… • Schools listed on FAFSA receive an electronic record – cannot see other schools listed on FAFSA • Schools begin financial aid packaging process • Student may be required to provide additional documentation at this time • When processing is finished, an award letter is sent to student

19. Financial Aid Award Letter • College award letter contains • Amount of federal aid for which students are eligible, including loan options • Estimate of state aid for which students are eligible • Institutional aid (Merit awards, grants, etc.) • Breakdown of costs

20. Types of Financial Aid • Gift Aid: Does Not Have to Be Paid Back and Awarded on Basis of Merit, Skill or Financial Need • Scholarships – Academic, Merit, Athletic awards as determined by Admissions/Athletic Departments • Pell Grant - Eligibility based on a combination of financial need, college costs, and your enrollment status (full or part-time). • Institutional Aid - Based on your financial need, some institutions may award additional money. • TAP - Tuition Assistance Program (TAP), free aid for eligible New York State Residents – apply @www.hesc.gov

21. Types of Financial Aid • NYS Scholarship Programs: • Provides tuition awards to students: • NYS Residents • Have a combined AGI of $125,000 or less as reported on family’s 2018 tax returns • Enrolled for at least 12 credits per term and complete at least 30 credits each year (successively), applicable toward his or her degree program • Mustreside in NYS for the length of time the award was received, and, if employed during such time, be employed in NYS. • Review all the requirements for eligibility as well as 2020-21 application open date at https://www.hesc.ny.gov/

22. Types of Financial Aid • Self Help: Includes Loans & Payment Options. • Loans • Federal Subsidized Stafford Loan - Federal student loan which students can use to help pay education expenses. Loan eligibility is based on financial need. Interest does notaccrue while the student is in school. The interest rate is currently at 4.53%. • Federal Unsubsidized Stafford Loan – Federal student loan which students can use to help pay education expenses. Loan eligibility is not based on financial need.Interest accrues while the student is in school. The interest rate is currently at 4.53 %.

23. Types of Financial Aid • Self Help: Includes Loans & Payment Options. • Loans (continued) • Parent PLUS Loan- PLUS loans are federal loans that parents of dependent undergraduate students can use to help pay education expenses. The loan is not guaranteed and an approved loan application is required. The interest rate is 7.08% and repayment of the loan can be deferred until after the student graduates • Private & Alternative Loans - Students can apply online and will need a credit worthy co-signer. • Tuition Payment Plan - Out-of-pocket budgeted tuition payments

24. Use Net Price Calculators • Prior to receiving any financial aid packages, it may be helpful to utilize colleges’ Net Price Calculator. • Enter your information, such as your household size and income, to generate an estimate of a specific college’s cost of attendance, average aid package (based on what families with similar demographics have received), out-of-pocket costs, average indebtedness, and average net price – which is the result of subtracting cost of attendance from grant aid. • Net price calculators vary in format from school to school. The results are estimates and averages to be used as a planning tool only.

25. Net Price, Best Fit & Making Decisions… • College ACollege BCollege C • Tuition • Fees, R&B $ 20,130 $63,260 $58,660 • Scholarship $ 2,800 $ 7,000 $17,000 • TAP $ 1,025 $ 1,025 - • Student Loan$ 5,500 $ 5,500 $ 5,500 • Out of Pocket $ 10,805 $ 49,735 $36,160 • * Sample Student Profile – SAT 1050-1150, GPA of 88-91 • College A – SUNY • College B – In- State Private - Reach • College C – Out of State Private

26. Scholarship Searching • Online scholarship search websites • Fastweb.com • Collegeboard.org • Scholarships.com • Check local library, employer or union

27. More Questions??? Thank You!