Top 10 Things to Know About Financial Aid for College

1. Top 10 Things to Know About Financial Aid for College Jerry Cebrzynski Director of Financial Aid, Lake Forest College

2. College cost “planning” What exactly is financial aid The financial aid “language” Application process in a nutshell How eligibility is determined How a College can help Timeline Your next step

4. Choosing a CollegeBest Fit • Program • Location • Size • Mix of Students • Academics • Extracurricular • Facilities • Financial Considerations

5. In the News

6. Current College Costs2011-2012 Average Tuition, Fees, Room, Board 4 Year Public: $17,000 4 Year Private: $35,000 Average personal expenses [clothing, laundry, toiletries, recreation, entertainment] = $2,000 Books = $700 - $1,000 per year

7. Direct costs vs. Indirect Costs Direct costs = on tuition invoice Tuition, fees, housing, meal plan Indirect costs = related educational expenses Books, supplies, transportation, laundry, … COA should reflect direct and indirect expenses

8. 1. Cost of attendance (COA) should not be a mystery

9. Sticker Price vs. After Financial Aid/Scholarship Price New! Net Price Calculator

10. Net Price Calculators Online, College-specific estimator Average grant/scholarship available to a family like yours Average student loan and work-study eligibility Estimated award is not a promise, a guarantee, or an actual aid offer

11. 2. Financial Aid is “A Partnership” • To the extent they are able, parents have primary responsibility to pay for their dependent children’s education • Students also have a responsibility to contribute to their educational costs • Families should be evaluated in their appropriate financial condition • A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect its ability to pay

12. Committed to removing financial barriers an advocate for the student at all levels Educates students and families through quality consumer information Provides services that do not discriminate Maintains the highest level of professionalism The Financial Aid Office

13. 3. What is Financial Aid? • Scholarships • Grants • Student Loans • Work-Study

14. Four major sources of funding Federal State College Private Organizations

15. Two Categories of Financial Aid From College as well as from foundations, etc. Specific criteria eligibility Solely based on student’s credentials Calculated from FAFSA and other aid applications Sources can be federal, state, institutional Types include grants, student loans, work-study Merit-based Need-based

16. 4. Everyone should apply for aid • Many types and sources of aid are available • On the fence? • 67% of all students receive aid [88% at private colleges • Sometimes being rejected for federal aid is a prerequisite for receiving private awards

17. So . . . how does the process begin?

18. The FAFSA collects basic financial data is used to determine the student’s eligibility by calculating an “index” # 5. To apply for all federal and state aid, families must complete the...

19. Overview of the FAFSA 2012-2013 available January 1, 2012 FAFSA.GOV 7 Steps Signed and submitted electronically

20. FAFSA on the Web (FOTW) English or Spanish Skip logic and online editing Electronic signature E-mail notification 19 million (99%) FOTWs processed 11/12 so far

21. FAFSA on the Web Worksheet 4-page booklet containing: Instructions 24 questions in 4 sections

22. FAQs Estimate 2011 income on FAFSA; adjust later Divorced, separated, single parents Assets included Savings, stocks, other real estate 529 Plans Assets not included Home equity Retirement accounts Insurance policies, annuities One FAFSA per student Renewal of Aid

23. Option to Access IRS Information 23

24. IRS Data Retrieval

25. Supplemental Financial Aid Applications The College Scholarship Service Financial Aid PROFILE A College’s own application for financial aid

26. 6. Special Circumstances Matter • When the numbers don’t tell the whole story • When the situation is expected to change (or has) • Must be able to document • consideration will vary from school to school

27. Special Situations Examples of items not on the FAFSA: income change (work, child support, SSBs, etc) large healthcare costs some educational costs support of extended family significant non-elective home repairs consideration will vary from school to school check with financial aid office for “how to” provide #s and explanation, and daytime phone

28. Financial Need How much aid can a student receive? Cost of Attendance Family’s Contribution Financial Need - =

29. 7. The Financial Aid Award Letter (or “package” ) Will contain a combination of • scholarship, grant, loan and work-study funds Why might “packages” be different? • cost of attendance • scholarship criteria and availability • institutional philosophy and funding • federal funding levels

31. Compare COA Total amount of aid Types and sources Ask questions Is aid renewable? Terms for renewing? Will aid change from year to year? Will costs increase? Is more aid available if EFC decreases? Decoding the Award Letter

32. 8. Appeals • Can request change in aid if there is a valid reason • Will it make a difference? • Is need already fully met? • Is more aid available? • Valid reasons • Special circumstances

33. 9. Deadlines are essential

34. Timeline Complete FAFSA after January 1 Receive a Student Aid Report (SAR) 48-72 hours later Review SAR for correctness Check if other additional application required or beneficial Receive Financial Aid Award Letter before May 1

35. 10. Ask for • Right here at LZHS • A College’s Financial Aid Office • The Internet • www.collegezone.com • www.finaid.org • www.studentaid.ed.gov • College Web Sites

36. Scholarship and Financial Aid Search Services Beware of scholarship scams (consultants, seminars) Same goes for Financial Aid “Advisors” FAFSA.com not the same as FAFSA.gov WWW.FINAID.ORG Never pay for a service you can do yourself, and for free!

37. Financial Aid Questions to Ask a College ACM.EDU