Financial Aid 101 De-Mystifying the Process

1. Financial Aid 101De-Mystifying the Process John Iacovelli Dean of Enrollment Management Richard Stockton College of New Jersey

2. Goal of Financial Aid Primary goal is to assist students in paying for college and is achieved by: • Evaluating family’s ability to pay for educational costs • Distributing limited resources in an equitable manner • Providing a balance of gift aid and self-help aid

3. Sources of Aid • Federal • State • The University/College • Private • Civic organizations (i.e., local Rotary Club, parent’s employer, high school awards, etc.)

4. Types of Financial Aid • Scholarships • Grants • Loans • Employment Opportunities

5. Merit-Based Aid vs. Need-Based Aid • Merit-Based Aid - aid given to students strictly on the basis of merit. May be based on: • Academic record • Special characteristics • Skills or talents • Involvement • Does not have to be repaid; may be renewable from year to year. • Need-Based Aid - aid awarded to students on the basis of financial need. Re-evaluated each year as financial situations may change.

6. Need-Based Aid • Gift Aid • Grants • Self-help • Loans • Employment

7. Grants • Federal • PELL • SEOG • State • TAG • EOF • Institutional • Private Grants and Scholarships

8. Loans • Federal Perkins Loan • Federal Direct Loan Program • Subsidized Stafford Loan (4.50%) • Unsubsidized Stafford Loan (6.80%) • PLUS (7.9%) • Loan Limits: • First-year students – $3,500 • Second-year student – $4,500 • All other grade levels remain at $5,500 • All students eligible for additional $2000 of unsubsidized loan. • NJCLASS Supplemental Loan Program 7.59% - fixed 7.09% with ACH

9. Merit-Based Aid • State Programs • Distinguished Scholarship • Urban Scholarship • NJ STARS & NJ STARS II • Institutional Awards • Academic Scholarships • Athletic Scholarships Not funded for Fall 2010

10. Application Process • Submit the Free Application for Federal Student Aid (FAFSA) prior to the college’s deadline • To ensure maximum consideration for federal, state, and institutional aid, check information from each college to determine: • Required application materials • Application deadlines

11. General Eligibility Requirements • Must have a valid Social Security Number • May not be in default on a federal student loan • May not owe repayment of a federal grant • Must be making satisfactory academic progress as defined by the school

12. General Eligibility Requirements • Must be enrolled or accepted for enrollment in an eligible program of study • Must be pursuing a degree, certificate, or other recognized credential • Must be a U.S. citizen or eligible noncitizen • Must be registered with Selective Service

13. Free Application for Student Aid(FAFSA) • FAFSA on the Web at www.fafsa.ed.gov • Collects family’s personal and financial information used to calculate the student’s EFC

14. To Register for a Pin:www.pin.ed.gov

15. A FAFSA Must Be Filed on the Web

16. Common Mistakes Madeon the FAFSA • Correct name, social security #, birth date • Number of people in the household • Divorced/remarried households • Taxes paid vs. taxes withheld • Parental and student assets • Worth of a second home • “Zero is a number” Please note: 2009-10 FAFSA expands definition for independent student (emancipated minor).

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

18. What is EFC? • Basis of financial aid package • EFC is determined by a federal formula that calculates need via the FAFSA • EFC & Financial Need are guidelines used by schools to determine a financial aid package • EFC not necessarily equal to the out-of-pocket cost of the family

19. Cost of Attendance • Tuition and fees • Room and board • Books and supplies, equipment, transportation, and miscellaneous personal expenses • Study abroad costs • Dependent care expenses • Expenses related to a disability • Expenses for cooperative education program

20. 1 X 2 Y 3 Z EFC EFC Cost of Attendance (Variable) Expected Family Contribution (Constant) Need (Variable) Need Varies Based on Cost

21. The Cycle of Financial Aid Jan-March • Student /Parents complete FAFSA March-April • School sends award letter June-July • School sends Fall semester bill

22. CAUTION! • Avoid being charged a fee to file the FAFSA • Completing and processing the FAFSA is FREE • When filing FAFSA, make sure you go directly to: www.fafsa.ed.gov • Contact the financial aid office if you need help in completing the FAFSA

23. Where Do I Go From Here? • Obtain and review admission and financial aid materials from each school to which you are applying • Meet all application deadlines • Complete FAFSA and any other application materials required by the school (i.e., CSS Profile) • Investigate ALL sources of aid

24. HESAA Services • Web Site • www.hesaa.org • Financial Aid Hotline • 800-792-8670 8:00 am – 8:00 pm Monday thru Thursday 8:00 am – 5:00 pm Friday • NJBEST • Mapping-Your-Future.org

25. Additional Resources • Services and Forms: Fin Aid! “The SmartStudent Guide to Financial Aid” www.finaid.org USDE Publications www.studentaid.ed.gov/students/publications/FYE/index.html FastWebwww.fastweb.com FAFSA on the Web www.fafsa.ed.gov U.S. Department of Education PIN www.pin.ed.gov Mapping Your Future www.mapping-your-future.org

26. Additional Resources • EFC Calculators: College Board www.collegeboard.com/paying Fin Aid! “The SmartStudent Guide to Financial Aid” www.finaid.org • Organizations and Agencies: United States Department of Education www.ed.gov National Association of Student Financial Aid Administration (NASFAA) www.nasfaa.org