National Association of Student
Financial Aid Administrators
© NASFAA 2008

• You (student)
• Your parents
– Colleges, universities, state and federal agencies all view you and your parents as the first source of funds for college
• Government sources
• Institutional aid
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• Cost of Attendance
• Expected Family Contribution
• Demonstrated Need
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• Direct costs
(tuition, fees, room and board)
• Indirect costs
(books, travel and personal expenses)
• Direct and indirect costs combined into cost of attendance
• Vary widely from college to college
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• Amount family can reasonably be expected to contribute
• Stays the same regardless of college
• Two components
– Parent contribution
– Student contribution
• Calculated using FAFSA data and a federal formula (Income, assets, family size, number in college, etc…)
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College A
• COA
• EFC
• Need
$35,000
- $20,000
= $15,000
College C
• COA
• EFC
• Need
$15,000
- $20,000
= $0
College B
• COA
• EFC
• Need
$25,000
- $20,000
= $ 5,000
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• Need-based
• Non need-based or merit
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• Gift Aid
– Scholarships
– Grants
• Self Help Aid
– Loans
– Employment
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• Federal government
– http://studentaid.ed.gov/
• State government
– http://www.in.gov/ssaci/
• Colleges & Universities
• Private sources
• Civic organizations and churches
• Employers
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• Largest source of financial aid
• Aid awarded primarily on the basis of financial need
• Must apply every year using the FAFSA
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• Federal Pell Grant
• Academic
Competitiveness Grant and National Science and
Mathematics Access to
Retain Talent Grant
• Teacher Education
Assistance for College and Higher Education
Grant
• Federal Supplemental
Educational Opportunity
Grant
• Federal Perkins Loan
• Federal Work-Study
• Stafford Loans
– Subsidized or unsubsidized
• PLUS Loans
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• Residency & college attendance requirements
• Award aid on the basis of both merit and need
• Use information from the FAFSA
• www.ssaci.in.gov/estudent
• Deadlines vary by state
– Indiana - March 10
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• Programs vary
• Attempt to meet Need (FAFSA)
– Federal, State, then institutional
• Academic Scholarships
– GPA and SAT/ACT scores
• Merit Scholarships (athletic, music, etc…)
• Special grants and scholarships
• Work Study (gov’t or institutional)
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• Foundations, businesses, charitable organizations
• Deadlines and application procedures vary widely
• Begin researching private aid sources early
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• Research what is available in community
• To what organizations and churches does student and family belong?
• Application process usually begins fall of senior year
• Small scholarships add up!
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• Companies may have scholarships available to the children of employees
• Companies may have educational benefits for their employees
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• A standard form that collects demographic and financial information about the student and family
• Should be filed electronically
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• Information used to calculate the Expected
Family Contribution or EFC
– The amount of money a student and his or her family may reasonably be expected to contribute towards the cost of the student’s education for an academic year
• Colleges use EFC to award financial aid
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• May be filed at any time during an academic year, but no earlier than the
January 1 st prior to the academic year for which the student requests aid
• For the 2011-12 academic year, the FAFSA may be filed beginning January 1, 2011
• Colleges may set FAFSA filing deadlines
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• Web site: www.fafsa.ed.gov
• 2011-12 FAFSA on the Web available on January
1, 2011
• FAFSA on the Web Worksheet:
– Used as “pre-application” worksheet
– Questions follow order of FAFSA on the Web
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Good reasons to file electronically:
• Built-in edits to prevent costly errors
• Skip-logic allows student and/or parent to skip unnecessary questions
• More timely submission of original application and any necessary corrections
• More detailed instructions and “help” for common questions
• Ability to check application status on-line
• Simplified renewal application process
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• Web site: www.pin.ed.gov
• Sign FAFSA electronically
• Can request PIN before
January 1, 2011
• May be used by students and parents throughout aid process, including subsequent school years
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• Required
– Student
– One parent (dependent students)
• Format
– Electronic using PIN
– Signature page
– Paper FAFSA
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• Social Security Numbers – Name / birth date
• Divorced/remarried parental information
• Income earned by parents/stepparents
• Untaxed income
• U.S. income taxes paid
• Household size
• Number of household members in college
• Real estate and investment net worth
• Male students – 18 yrs. – Selective Service
– www.sss.gov
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Central Processing System (CPS) notifies student of FAFSA processing results by:
• Paper Student Aid Report (SAR) if paper
FAFSA was filed and student’s e-mail address was not provided
• SAR Acknowledgement if filed FAFSA on the Web and student’s e-mail address was not provided
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• CPS notifies student of FAFSA processing results (EFC) by:
– E-mail notification containing a direct link to student’s on-line SAR if student’s e-mail was provided on paper or electronic FAFSA
• Student with PIN may view SAR on-line at www.fafsa.ed.gov
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• Institutional Student Information Record
(ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA submitted
• College reviews ISIR
– May request additional documentation, such as copies of federal tax returns
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• Issued by college
• Review data for accuracy
• Update estimated information when actual figures are available
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If necessary, corrections to FAFSA data may be made by:
•
Using FAFSA on the Web ( www.fafsa.ed.gov
) if student has a PIN;
• Updating paper SAR (SAR Information
Acknowledgement cannot be used to make corrections); or
• Submitting documentation to college’s financial aid office
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• Cannot report on FAFSA
• Send explanation to financial aid office at each college
• College will review special circumstances
– Professional Judgment
– Request additional documentation
– Decisions are final and cannot be appealed to U.S.
Department of Education
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• Change in employment status
• Medical expenses not covered by insurance
• Change in parent marital status
• Unusual dependent care expenses
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Family Profile
Oldest Parent’s Age: 50
Family Members: 4
Number in College: 1
Federal tax: 10% of AGI
The Parent Contribution
A Case Study
If Parents' Assets are:
$15,000 $50,000 $70,000 $100,000
Parents' AGI
$40,000
Expected Parent Contribution will be:
$1,115 $1,150 $1,678 $2,470
$60,000 $4,968 $5,021 $5,837 $7,252
$80,000 $11,710 $11,818 $12,911 $14,603
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2007-2008 Federal Methodology
23

The Financial Aid Barrel
A Sample Financial Aid Award
COA EFC = Need
$25,000 8,000 = 17,000
Unmet Need = $1,900
Work = $1,500 Work Study
Loan = $2,600 Stafford Loan
Gift Aid = $6,000 Grant +
$5,000 Scholarship
EFC = $8,000
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College A
• COA $35,000
• Total Aid - $20,000
• Net Cost = $15,000
College B
• COA $25,000
• Total Aid - $ 9,000
• Net Cost = $16,000
What will I actually end up paying?
Consider more than just the price tag.
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• High school counselors
• College admissions and financial aid staff
• College websites
• Military: ROTC
• Local organizations, foundations, employers, libraries, etc.
• Scholarship databases
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• Comply with deadlines
• Apply early if possible
• Be specific in describing special circumstances
• Document dates and times forms were submitted
• Financial Aid awards may vary significantly amongst colleges, particularly private institutions
• Feel free to ask questions and maintain contact with Student Financial Services
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• Advanced Placement courses
• Credit by exam
– College Level Examination Program (CLEP)
– Institutional exams
• Accelerated degree programs
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• Don’t initially eliminate any school because of sticker price
• Any amount saved may result in additional options for paying for college
• Think of college more in terms of long-term investment rather than short-term cost
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• Federal Tax Credits
– Hope tax credit
– Lifetime Learning tax credit
• 529 College Savings Accounts
– http://www.savingforcollege.com/529_plan_details/
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• February 20, 2011
• IPFW
• 2 – 4 p.m.
• http: www.collegegoalsunday.org
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• College recruiting service
• Not just for athletes
• www.sportsworx.com/
• Rodney Sinn
– rodneysinn@me.com
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• Begin with the end in mind
• Begin early
• Be aggressive
• Prayerfully consider where God wants your student to attend. Do not choose a school just because it has the best $ deal.
• Consult your friends who have gone before and trusted advisors
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