Financing Education Beyond High School

1. Financing Education Beyond High School University of Puget Sound November 1, 2012

2. Financing Your Education • How to apply • How eligibility is determined • What aid is available

3. Financial Aid Application Process • Free Application for Federal Student Aid (FAFSA) • Check each school’s financial aid website for applications required: • FAFSA, CSS Profile, Institutional Application • Application deadlines

4. FAFSA on the Web • Web site: www.fafsa.gov • 2013-14 FAFSA available on January 1, 2013 • Tip: Do not go to www.fafsa.com! • The FAFSA is FREE • Apply for FAFSA PINS: Student AND Parent • IRS DATA RETRIEVAL

5. To Register for a PIN: www.pin.ed.gov

6. What Information is Reported? • Student income and asset values • Parent income and asset values • Income reported is from previous year’s federal tax return • Untaxed income (child support received, voluntary contributions to retirement plan) • Household size • Number of dependents attending college at least half-time

7. Reporting Income • Income based on federal tax return • For 2013-14 school year, use 2012 tax return • Okay to estimate until you have filed your return • Wages (from W-2), AGI, Taxes Paid, Business Income, Capitol Gains • Untaxed Income

8. Reporting Assets • Cash, Savings and Checking acct. balances as of date FAFSA signed • Net Investment and Real Estate values, including college savings, trust funds, vacation properties, etc. • Do not include primary residence or funds held in retirement accounts (IRA, 401K, etc) • Investment farm value • Net Business value only if over 100 employees

9. Corrections If a correction to applicant data is needed, the correction may be made: • www.fafsa.gov if student has a PIN; or • By the school • IRS Data Retrieval-when taxes are completed

10. How Will My School(s) Receive my FAFSA? • Can list up to 10 schools on FAFSA on web • FAFSA data will be electronically transmitted to all schools listed • Each School is required to review the data for all admitted students, and to calculate eligibility for federal student aid

11. Expected Family Contribution EFC =Expected Family Contribution • Calculated using a formula established by Congress • Results in a dollar value between $0 and $99,999 • Not a prediction of how much cash you actually have on hand. Rather, it's the best estimate of your capacity (over time) to absorb the costs of education.

12. Cost of Attendance (COA) • Tuition and Fees • Room and Board • Books and Supplies • Personal Expenses • Travel Expenses

13. Definition of Need Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need

14. Financial Need Examples: EFC $12,000 • Puget Sound • COA $53,940 - EFC $12,000 = $41,940 Need • UW-WA Resident • COA $26,066 - EFC $12,000 = $14,066 Need • The EFC is not necessarily the amount of money you will have to pay each year. • Private colleges might offer you grants and scholarships not offered by a public college, and you may find that a private college is more affordable, or at least comparable to a public college • TIP: If finances are critical, it is important to apply to a variety of colleges and compare aid offers

15. What Types of Financial Aid ? • Grants • Scholarships • Loans • Work-Study

16. Sources of Aid • Federal, State, Institutional, Private • Private universities have their own institutional scholarships and grants funded through their endowments • Public universities may or may not offer institutional scholarships and grants

17. Federal Aid • Pell Grant • SEOG (Supplemental Educational Opportunity Grant) • Federal Work-Study • Perkins Loan for students • Stafford Loan for students • Plus Loan for parents Detailed descriptions in The Student Guide http://studentaid.ed.gov

18. State Financial Aid • Washington State Need Grant: for low income families • State Work Study

19. Stafford Loans (Subsidized and Unsubsidized) • Subsidized Stafford: Must demonstrate “need” (3.4% 2012-13 fixed interest rate) • Unsubsidized Stafford: Need is not a consideration (6.8% 2012-13 fixed interest rate) • Base annual loan limits (combined subsidized and unsubsidized) • $5,500 for 1st year undergraduates • $6,500 for 2nd year undergraduates • $7,500 for each remaining undergraduate year

20. Work-Study • Undergraduate students are eligible • Employment may be on or off campus • Hours average 10-12 hours/week • Great way to cover personal expenses and develop valuable job skills

21. Scholarships • Institutional scholarships and grants vary by college and are typically funded through donor and alumni support • Merit scholarships based on review of academic profile to include H.S. GPA, Rigor of coursework completed, and SAT/ACT scores • The more time you invest in scholarship searches the more likely you will receive something. No time/effort = no money. Make the effort!

22. Private Scholarships • Private Scholarships are available from a wide variety of sources, including employers, clubs, community organizations, credit unions and even your own high school. (i.e. Elks, Rotary, Kiwanis) • MIGHT result in decreased aid from other areas, especially if you are admitted to college that “meets full need”. • Don’t ever pay for a scholarship search!!

23. Private Scholarship Search • Free Internet scholarship search engines: • GoCollege.com: The Collegiate Websource – http://www.gocollege.com • Fast Web www.fastweb.com • College Board Scholarship Search http://apps.collegeboard.com/cbsearch_ss/welcome.jsp • TIP: open a separate yahoo account for scholarship search email. Online searches generate a lot of mail.

24. Other Options • Parent PLUS Loan • (7.9% fixed interest rate) • Monthly Payment Plan • Balance is divided into 10 monthly payments. • Fee. • Consider a combination of the PLUS parent loan and a payment plan

25. Special Circumstances Let your college know if you experience: • Loss of employment, or reduction in income • Unusually high out-of-pocket medical expenses, not including insurance premiums • Tuition for siblings attending private K-12

26. TIPS • Apply to at least 5 colleges if finances are very important. Aid packages will vary. • Compare costs to aid package to determine net amount you will pay. Use that number when comparing aid offers. Private college might turn out to be comparable to public college. • Examine total loan debt you will have to repay once you graduate!

27. NET PRICE CALCULATOR • All schools must provide a Net Price Calculator • Net Price Calculator is an estimate,based on specific questions, of what a student’s aid package could be at that particular school. • www.pugetsound.edu/sfs

28. Good Luck!