Agenda
• Definition of financial aid.
• Deadlines Matter!
• How do I apply?
• Watch loans carefully!
Philosophy of Financial Aid
• Students and parents are the primary
source of funds for postsecondary
education and are expected to pay for
dependent child’s education to the
extent they are able.
• Students also have a responsibility to
contribute to educational costs.
• Financial aid is available to assist
families in paying for college.
Apply
File on time – AND EARLY!
Submit the FAFSA as soon after January 1 as
possible!!
• DO NOT WAIT until your taxes are filed –
estimate income and update later
• Accurately provide name, DOB, and social
security number
• Parental information – whose information is
needed?
• Make sure parent(s) and student each have PIN
UPDATE – NEW CHANGE
• For the 2015-2016 FAFSA, Parental
Information has CHANGED!
• If a student’s parents LIVE
TOGETHER, regardless of marital
status or gender, BOTH parents must
provide information on FAFSA.
• If unmarried, they then cannot
participate in IRS Retrieval.
FAFSA on the Web
• Web site: www.fafsa.ed.gov
• 2015-2016 FAFSA on the Web available
on January 1, 2015
• FAFSA on the Web Pre-Application
Worksheet:
– Available prior to January 1
– Questions follow order of FAFSA on the Web
FAFSA.ED.GOV
• Please make sure you use the above
website! NOT fafsa.com!
• It is FREE to apply – if you are asked
to pay, you are on the wrong page!
• Make sure you apply for the 20152016 school year!
FAFSA.ED.GOV
• Easy Steps!
• 1. Get PIN numbers
• 2. Print out and complete the
worksheet from FAFSA.ED.GOV
• 3. Use 2013 taxes to ESTIMATE
• 4. Log into FAFSA.ED.GOV and use
completed worksheet to enter info
• 5. Add colleges, and sign with PINs!
IMPORTANT!
Confirmation Page and Number
OTHER FORMS
• MAKE SURE YOU KNOW WHICH
FORMS YOU MAY ALSO NEED!
• CSS PROFILE – fee-based through
Collegeboard.org
• INSTITUTIONAL FORMS – check
with each college
Goals of Financial Aid
• Primary goal is to assist students in
paying for college:
– Evaluate family’s ability to pay
educational costs
– Distribute limited resources in an
equitable manner
– Provide balance of gift aid and selfhelp aid
ACRONYMS
• FAFSA – Free Application for Federal
Student Aid
• EFC – Estimated Family Contribution
• COA – Cost of Attendance
EFC for Dependent Student
Parental contribution from income and
assets (Income, assets, size of
household, taxes, # in college, age of
eldest parent)
+ Student contribution from income and
assets
________________________________
= Expected Family Contribution (EFC)
Definition of Federal Need
Cost of attendance (COA)
- Expected family contribution (EFC)
= Federal Need
Cost of Attendance
DIRECT EDUCATIONAL COSTS
• Tuition
• Fees, books and supplies
LIVING COSTS
* Room and Board
* Transportation
• Miscellaneous personal expenses
What is Financial Aid?
• Grants/Scholarships
– “Free” money that does not have to be
repaid.
• Student Loans
– Money that must be repaid.
• Employment Opportunities
– Money to be earned by the student.
How Federal Need Varies
Cost of Attendance
25,000
20,000
15,000
Need
EFC
10,000
5,000
0
College A
•
•
•
•
College B
College C
College D
COA varies by school
Student’s EFC the same regardless of the school
Need may vary by school
Financial aid may not meet the entire need
Deadlines Matter!!
Definition of Federal Need
Cost of attendance (COA)
- Expected family contribution (EFC)
= Federal Need
- Total Financial Aid Package
________________________________
GAP!!!!!
How does GAP work?
COA --------- $50,000
- EFC ------ $10,000
= Federal Need - $40,000
- Total Aid Package - $30,000
____________________________
GAP = $10,000 so EFC now $20,000
GAP!!!
• If your Financial Aid Packages
does NOT cover 100% of your
need, you have a GAP!
MOST schools will GAP.
Sources of Aid
• SOURCE #1 – PARENTS/STUDENT
• SOURCE #2 – Federal/State
• SOURCE #3 - Institutional
• SOURCE #4 - Private
Institutional Aid
• Grants/Scholarships
– Merit Based
– Need Based
• Loans
– Terms vary from school to school
– Not all schools offer institutional loans
• Employment Opportunities
– Some schools offer jobs that are not federal
work-study positions
PAYING YOUR EFC and GAP
How can you pay for your expected
family contribution/GAP?
• Savings & Investments (Before)
• Current Income (During)
• Borrowing (During and After)
Financing Options
• Savings
– Work and save during the summer to cover
expenses
• Tuition Payment Plan
– Make monthly payments to the college
• Federal Parent PLUS Loan
– Credit based, fixed interest rate
• Alternative Loans
– Credit based and typically require co-signer
Reducing Expenses
Enrollment charges
• Can you save on tuition?
• Transfer and AP/Dual
enrollment credits
• Living expenses
•
•
•
•
On-campus or living at home?
Meal plans
Travel expenses
Health insurance
• Books and supplies
• Buy used books, ebooks or
rent them
Popular Online Textbook Sites
www.amazon.com
www.barnesand noble.com
www.chegg.com
www.half.com
www.textbooks.com
Federal Stafford Loans
• Subsidized: Must demonstrate
“need”
• Unsubsidized: Not based on “need”
• Base annual loan limits
– Undergraduates up to $5500 per year
– Graduates up to $6000 per year
Amount varies, dependant upon need.
Other Sources of Funds
• Private scholarships and
– Clubs and Civic organization
– Parents’ employers
– Hannaford
– Wal-Mart
• Military
– G.I. Bill
– Veterans Benefits
– ROTC
• FAMEMAINE.COM for help, scholarship
searches, etc.
Final Thoughts
• EVERYONE should apply for financial
aid
• Know and meet deadlines
• Print and save copies of everything
submitted
• Respond quickly to requests for
information
• Beware solicitations charging fees
• Don’t be afraid to ask questions