Elizabeth Desi
Sr. Associate Director of Financial Aid
University of New Haven
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File the Free Application for Federal Student
Aid (FAFSA)
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FAFSA is FREE
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FAFSA determines eligibility for:
• Federal grants and loans
• State grants
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Institutions use the FAFSA to determine
eligibility for their need-based scholarships
Schools may require additional forms to
determine eligibility for financial aid
 CSS Profile
 Institutional Application
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University of New Haven uses the CSS Profile
to provide earlier award information
 UNH School Code is 3663
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FAFSA on the Web
◦ www.fafsa.gov
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File 2013-2014 FAFSA if entering college Fall 2013
 (Forms for 2 years on website – use correct year)
◦ Have to complete FAFSA EACH YEAR
◦ Available January 1
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Two ways to sign
◦ PIN – Sign Electronically
 www.pin.ed.gov
 Real Time (“Display Now”)
 Both Student and Parent need a PIN
◦ Paper Signature Page
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Can add up to 10 schools on the web application
Should complete and submit the FAFSA when you
are applying for Admissions providing you are
applying for Admissions after January 1.
Have to be offered Admissions before Financial Aid
is determined
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Be Aware of Priority Filing Dates
◦ Submit FAFSA by School & State Priority Filing
Date – CT has had filing date as early as Feb 15
◦ School & State funding is limited so file ON TIME
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Can enter estimated income information to meet
priority date, then make corrections after you file
tax returns
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IRS Data Retrieval Tool
◦ Populates your income information directly from the
Internal Revenue Service (IRS)
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Complete & file your tax return
◦ File Electronically – Wait 2 weeks to correct FAFSA
◦ File Paper – Wait approximately 8 weeks to correct
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Students selected for Verification
◦ If don’t use IRS Data Retrieval, Tax Return Transcript is Required
◦ Verification form & Other documentation Required
Note: Schools may have their own Verification process to
which they may request tax return transcripts and other
documentation beyond the federal requirements
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Parent and Student Information on FAFSA
 Student’s Application
 If 2 students in family, each complete an application
 Parent signs each
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Divorced or Separated – Who completes?
◦ Parent with whom student lived with most during
the past 12 months
 If lived with equally, the parent who provided more
financial support
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If Parent Remarried
◦ Step-parent information must also be included
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Legal Guardians don’t complete FAFSA
◦ Student completes FAFSA on own
◦ Must provide court documentation to school
◦ If no court documentation, parent must complete
FAFSA with student
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Student Aid Report (SAR)
◦ Indicates your FAFSA has been processed
◦ Indicates how family answered every question on the FAFSA
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Review your SAR
◦ Indicates the next steps
◦ If there are issues that need to be resolved
◦ Data Base matches – Social Security Number, Citizenship,
Selective Service
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Will indicate if a student is selected for Verification
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Can use to add schools or make corrections
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Results of the FAFSA is the Expected Family
Contribution (EFC)
• Amount you as a family can contribute toward the
student’s education
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Schools use the EFC to determine what types
of financial aid and how much they can offer
to a student
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Scholarships
 Free money – don’t have to repay
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Grants
 Free money – don’t have to repay
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Loans
 Have to repay
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Student Employment
 Have to work to earn the money
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Federal
 Money from the federal government
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State
 Money from the State in which you live
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Institutional
 Money from the College/University (merit, needbased, athletic)
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Private
 Money from private agencies, organizations, civic
groups, high schools, churches, etc.
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School determines the Cost of Education
(budget)
• different at each school
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Cost of Education includes not only tuition,
fees, room, meals (Direct costs) – ALSO
Allowances for books, supplies, personal
expense, travel expense, misc expense
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School takes Cost of Education and subtracts your
EFC (results of your FAFSA) to determine a students
“financial need”
Cost of Education
- Expected Family Contribution (EFC)
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Financial Need
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If the EFC is less than the Cost of Education,
the student can be eligible for subsidized
financial aid such as grants, scholarships,
subsidized student loans
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If the EFC is greater than the Cost of
Education, the student is eligible for
unsubsidized financial aid such as
unsubsidized student loans and parent loans
Merit scholarships are based on a student’s
academic performance and can be awarded
regardless of the EFC
The school communicates with the student
via a Financial Aid Award
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Awards may be electronic or paper
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If electronic, student would receive notice or
email to view their award information on line
Awards offered are reported on the Award
Letter – Awards make up a “Financial Aid
Package”
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Families should determine Direct costs of
the school
• Tuition, Fees, Room, Meals and any other
expenses charged on the bill
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May also want to factor in an amount for
books – An average amount per semester
for student enrolled full-time is $500
however the sciences, engineering and
some other classes may be more expensive.
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Families should understand each award listed
• Is the award a LOAN? = Money you will have to
repay
• Is the award a scholarship or grant? = Money you
won’t have to repay
• Are the scholarships offered by the school
renewable?
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Families should subtract the awards you want
to accept from the amount you will be billed
by the school to determine how much, if
anything, you will need to pay for the student
to attend that school
◦ Some options for paying that balance:
 Federal Parent Loan
 Private Loan
 Tuition Payment Plan
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FAFSA is based on “prior year income”
◦ Use 2012 income information for 2013-2014 FAFSA
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Notify the Financial Aid Office of financial
changes for 2013 if decreased from 2012
◦ Loss of Job – reduction in income
◦ Extra Medical Expenses
◦ Divorce or Separation
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Schools process federal student and parent
loans through Direct Lending
• Direct Loan program = The federal government is
the lender. The school communicates with the
government to process the educational loans
• Students will see the federal Direct Student Loan
offered on the Financial Aid Award
• May see federal Direct Parent PLUS Loan on Award
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The Direct Loan program offers the Federal
Student Loan for students and the Federal
PLUS Loan for Parents
School will provide information regarding
their process and application procedure to
apply for the loans - You may also review
school’s website for the process
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Students and Parents must sign Promissory
Notes for the loans
Students must also complete Entrance Loan
Counseling before borrowing the student
loan
• The loan counseling lets the student know their
rights and responsibilities as a student loan
borrower
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Direct Student Loans
• Low Interest rates
• Interest rate set July 1 each year - not to exceed
8.25% - Fixed rate
• Student is the borrower
• Students are eligible regardless of family income
• No penalty for early repayment of loan
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The Subsidized Loan will be offered to
students who demonstrate “financial need”
based on the results of the FAFSA (EFC) and
other financial aid the student is receiving
• Up to $3,500 for a first year student depending on
financial need
• July 1, 2013 Expected to be fixed interest rate of
6.8% for undergraduates
• Government pays interest on Subsidized loans, &
principal is deferred while student is enrolled at
least half-time
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Unsubsidized Student Loan
• Fixed interest rate is 6.80% for undergraduates
• Principal is deferred while student is enrolled at
least half-time
• Interest accrues while student is enrolled. If not
paid, it will capitalize causing the balance of the
loan to become larger
• Interest is charged quarterly (every three months)
Example: $2,000 loan will accrue approximately
$140 of interest for a year therefore loan balance
will increase to $2,140 in one year
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The PLUS is a Federal Loan for parents to borrow,
to assist with paying educational costs
• Interest rate is a fixed rate at 7.9%
• Credit based loan – Government reviews for any negative
credit history
• Repayment begins 30-60 days after loan is fully
disbursed. Parents normally borrow for the full year
therefore the loan will not be fully disbursed until spring
semester loan disburses, so repayment begins in
February or March (option to defer payment until after
student is no longer enrolled full-time)
• Repayment period up to 10 years (depending on loan
amount borrowed)
• No penalty for early repayment of loan
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Parent may borrow up to Cost of Education minus
other financial aid the student is receiving (loans
are considered financial aid)
Borrowing up to the Cost of Education will allow
the parent to receive a refund (Remember: Cost of
Education is more than the actual bill). The refund
will act as a reimbursement for educational
expenses the parent may have paid to get the
student to school and settled in their dorm room
Parent has option of how much to borrow. Parent
may want to borrow only what they need to pay the
bill
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Parent Loans and Student Loans have Fees
• Actual disbursement of loan that is deducted from the
student’s bill is lower than amount borrowed (by a small
percent)
• Student loans approximately 1% in fees
• Parent loans approximately 4% in fees
• Example:
• Parent Loan for $5,000 with 4% in fees will disburse to the
school in the amount of $4,800 ($2,400 per semester)
• Student Loan for $3,500 with 1% in fees will disburse to the
school in the amount of $3,465 ($1,732.50 per semester)
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Some parents may not meet the credit criteria
for the parent loan therefore the loan will be
denied
Options for Parents:
• Appeal the decision and request another review of
Credit History if something has changed (if cleared up
incorrect/negative issue on credit report)
• Obtain an Endorser (someone to co-sign the loan)
• Allow the loan to be denied and student borrow
LIMITED AMOUNT of additional federal student loan
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When a parent loan is denied, the government
allows the student to borrow additional
Unsubsidized Student Loan, however the
amount is limited (up to $4,000/year for
Freshman and Sophomores, and up to
$5,000/year for Juniors and Seniors)
Student must accept the additional
Unsubsidized loan award, before a school can
process the additional amount
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Sometimes students will need additional funding beyond
the financial aid that is offered, therefore there are Private
Alternative loans available through lenders
Be sure to review terms & conditions of Private Alternative
Loans. May have variable interest rate, require student to
make monthly payments immediately, etc.
These loans are not as lenient in repayment as federal
loans. They do not have repayment options like federal
loans.
Students may borrow up to the Cost of Education minus
any other financial aid they are receiving (loans are
considered financial aid)
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The student is the borrower of the loan
Loans are based on credit-worthiness – will
likely look at income to debt ratio
Co-signer is usually required
These loans may have VARIABLE interest rates
• Some now offering Fixed interest rates
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May REQUIRE interest to be paid immediately
Could have fees
Cannot consolidate with federal loans
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Student applies with the lender and if loan is
approved, the school will have to process the loan
Check for loan programs within the state
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Connecticut Higher Education Supplemental Loan Authority
www.chesla.org
Currently has 5.95% Fixed Annual Rate
Must make interest payments
Check for loan programs with your credit union for
competitive rates/terms
Some lenders/agencies offer loans for parents
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Most schools offer a tuition payment plan
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Many contract with outside vendors
• May offer a 10 Month interest free plan to pay off
the balance due
• Payments begin in June and end in March
• Normally there is a fee to join (about $80 per year)
• Monthly payments are withdrawn from your bank
account for 10 months
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Because these plans allow a shorter time to
pay the balance, you usually have to make a
higher monthly payment than you would in
repaying a parent loan
Make sure you can afford the monthly
payments for the payment plan before
signing up
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Merit Scholarships
◦ Often offered through Admissions Office rather
than through Financial Aid Office
 Be sure to meet Admission Application dates & submit
appropriate paperwork to be considered
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Make sure student completes ALL forms
• Some Financial Aid offices have a separate form for
students to complete for scholarships
• Some departments within the college or university
may have their own scholarships to offer and their
own process beyond the Financial Aid Office
• A student should contact the department in which they
are majoring or review their website to determine
scholarship opportunities and the process
• Some departments may offer scholarships to
Freshmen, others may not consider a student for
scholarships until the student “declares his or her
major”
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Community Service Organizations & Churches
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Company where your Parent is Employed
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Search on your Own on the Internet
◦ Watch for Scholarship Scams
 Should not have to pay money to get FREE money
Don’t give bank account or credit card information
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www.zinch.com
www.fastweb.com
www.collegeboard.com/paying
www.freschinfo.com
www.eCampusTours.com
www.collegeanswer.com
www.finaid.org
• Finaid.org has scholarship listings categorized by unusual
scholarships, average student scholarships, community service
scholarships, prestigious scholarships
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Watch for scholarship scams!
◦ You should not have to pay money to get FREE money
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6 things to look for in detecting a scholarship scam:
◦ “a scholarship guarantee” – No service can guarantee it will get you money.
◦ “the service will do all the work” – No service can provide all of the personal
information required, fill out essays, or supply the references a scholarship may
require.
◦ “a scholarship costs money” – Though some legitimate scholarships charge fees, be
wary of charges. Applying for scholarships should NOT cost you money.
◦ “you can only find this information here” – Scholarships, grants and awards for school
are available in directories and all over the web. No one organization has a monopoly
on the information
◦ “being a finalist in a contest you never entered or randomly being selected by a
national foundation to receive an award” – Most organizations only contact you after
you have made an inquiry
◦ “a service needs your credit card or checking account information” – NEVER!
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U.S. Department of Education, Student Aid on
the Web www.studentaid.ed.gov
• Select “Types of Aid”
• Select “Learn More” in the “Scholarship Search” box
• State of Connecticut Dept. of Higher Education
• www.ctdhe.org and select “Financial Aid” at top of screen
on right
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Go to www.newhaven.edu
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Select “Quick Links”
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Select “Net Price Calculator”
• Provides an ESTIMATE of the financial aid you could
receive – This is NOT an award
• Some funds are limited – may see in NPC results but
not on your Financial Aid Award
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Try to provide accurate estimated information
• Results will not be an accurate estimate if incorrect
information is provided
Questions?