College Financial Aid Night
JULIE B. SAVINO
UNIVERSITY FINANCIAL ASSISTANCE
SACRED HEART UNIVERSITY
College Financial Aid Night
 For Students, the scariest part is getting into the
college of their choice.
 For their Parent, the scariest part is paying for it!!!
Tonight’s Agenda
And…..
To Dispel Financial Aid Myths
A discussion of :
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Sources and Types of Financial Aid
Application Process
Determining Eligibility
Thoughts and Tips
The Cost of Higher Education
Myth
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The published cost represents the true cost.
In Actuality
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What really matter is the amount the student will pay.
It’s the net price!
Net Price by Income 1999-2012: Public Four-Year Institutions
College Board Trends in College Pricing, 2012
Net Price by Private Institutions
College Board Trends in College Pricing, 2012
Net Price Calculator
 Federal mandate intended to help students and their families manage financial
expectations.
 Institutions all have their own versions!
 Online device offering customized approximations of college costs based on:
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Standard inputs of family size, income, savings, etc.
Calculator estimates a prospective student’s aid
Subtracts that from a college’s list price
And spits out a “net price”.
 Wide variation -- financial aid is as much art as science!
 While the tool is to be approachable and accurate,
the output will be more predictive as the student gets
closer to the application stage.
Who Qualifies for Financial Aid?
Myth

Only low-income families qualify for financial aid.
Truth
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The EFC should be less than the cost of attendance for a
student to qualify for need-based aid.
Who Qualifies for Financial Aid?
Principles of Financial Aid
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Parents and students are primarily responsible for financing
an education.
Sacrifice is assumed.
Financial aid assessment is an evaluation of economic
strength, not cash flow.
The family contribution is standardized calculation that
assesses ability to pay, not a willingness to pay.
Financial aid is a supplement whose intent is for student
access and choice.
Types of Financial Aid
 Grants
 Scholarships
 Work-Study Programs
 Loans
Many organizations
do not exhaust
scholarships every
year because
students do not
apply for them!
2013-2014 $184.1 Billion For Undergraduate Students
Source of Information: The College Board “Trends in Student Aid 2014”
To learn more visit: https://trends.collegeboard.org/
Student Debt is at Mortgage Levels
Myth
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Student Debt is at a crisis level.
Students borrow over $100,000 in student loans.
In Actuality
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More students are going to college and therefore, more
students are borrowing.
Only 4% of students with outstanding student debt owe
$100,000 or more.
Most had pursued advanced degrees!
Student Debt Levels
Source: Federal Reserve Bank of New York, The College Board Trends in Student Aid 2014
Student Debt Levels
Source: Federal Reserve Bank of New York, The College Board Trends in Student Aid 2014
Who Can Get Financial Aid?
For Federal Assistance, and in general …….
 U.S. citizen or permanent resident
 High school graduate/GED holder
 Enrolled in an eligible degree/certificate program
 Valid Social Security number
 Males registered for Selective Service
 Satisfactory academic progress
States, colleges, and private scholarships have their
own eligibility criteria.
Be sure you know what you need to do to qualify.
Do You Want to Be Considered Financial Aid?
The FATAL Mistakes
 DEADLINES
 missing application dates
 missing admission dates
 missing information
Do You Want to Be Considered Financial Aid?
For students to be considered for financial aid — money
given or loaned to help pay for college — you have to
apply.
Applying for financial aid is like applying for admission
to college, but they’re not the same thing.
The financial aid application process usually has its own
forms, deadlines and requirements — and you
don’t have to wait to be admitted to a college before you
apply for financial aid.
Do You Want to Be Considered Financial Aid?
 Check with College and Universities ….
1.
What Financial Aid Applications are required?
2.
What are the financial aid deadline dates?
Submit required information at least two weeks before earliest
deadline.
 For example; Deadline February 15th -- Submit by February 1st.

Common Financial Aid Applications
 Free Application for Federal Student Aid (FAFSA)
 Required for all types of aid
 www.fafsa.ed.gov
 Profile Application (CSS Profile)
 Used primarily by private colleges.
 https://profileonline.collegeboard.com
 Institutional Applications
 Check school publications and websites
Federal Student Aid Process
 Federal Student Aid Programs
 Applying for College
 Applying for Financial Aid
 My FSA
 High school juniors can take
advantage of FAFSA4caster
web site and learn about the
process, gain early awareness
of aid eligibility and much
more.
www.studentaid.ed.gov
Federal Student Aid Login – “New”
 No more PIN!
 Students now create a FSA ID
 Yes, Parents too create their
own FSA ID
 Used for FAFSA application
 Import your tax information
from the IRS
 Used for student and parent
loans
 https://fsaid.ed.gov
Federal Application Process
 The FAFSA is:
 Required by all schools
administering Federal
Student Aid
 Data collection vehicle
that supports Federal
Methodology (FM)
 Cannot be submitted until
after January 1, but get
organized as soon as
possible
 Get worksheet at
www.studentaid.ed.gov/
worksheet
https://fafsa.ed.gov/
Federal Application Process
 The FAFSA is:
 Required by all schools
administering Federal
Student Aid
 Data collection vehicle
that supports Federal
Methodology (FM)
 Cannot be submitted until
after January 1, but get
organized as soon as
possible
 Get worksheet at
www.studentaid.ed.gov/
worksheet
https://fafsa.ed.gov/
Federal Application Process
 Complete the FAFSA
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IRS Data Retrieval Tool offered for ease and accuracy. Use to import data
for initial application or update application at a later date.
 Review the FAFSA results through the Student Aid Report
Applicants receive an email with a link to access the SAR.
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Correct your FAFSA, if necessary
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Review all messages
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Your may find messages selecting for review which may require you to
submit various forms of documentation to the school.
 Schools receive applicant data electronically
 May offer tentative award based on current information
 May verify or adjust information – upfront or later
CSS Profile Application Process
 The College Board CSS Profile
collects more comprehensive
family and financial information
 Supports Institutional
Methodology (IM)
 Allows schools to receive
information earlier in the cycle
 College and programs rely on
Profile data to award nonfederal
funds
 Remember to check for other
institution specific forms!
https://student.collegeboard.org/cssfinancial-aid-profile
What’s Next
Determining Eligibility
Cost of Attendance
- Expected Family Contribution
____________ ____________
= Financial Need
The Cost of Education
 Direct Costs
 Tuition and required fees
 Room and board for resident students
 Indirect Costs
 Books and supplies
 Transportation to and from campus
 Miscellaneous personal expenses
Direct
Costs
Indirect
Costs
Total Cost
of
Education
What is the Expected Family Contribution – EFC?
 The EFC is a measure of capacity over time to absorb
educational costs
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Not a dollar amount expected from current income or assets
Not an estimate of extra cash available
Not the same as the student’s bill or the amount a family will actually pay
to attend college.
 Federal EFC is used as an ELIGIBILITY INDEX for federal aid
purposes. EFC determines student eligibility for the Pell Grant
and other forms of federal aid and state aid.
 Schools use an EFC (Federal and/or Institutional) and cost of
education to put together a “package” of financial assistance.
 The EFC is subject to school verification and adjustments.
Elements of Need Analysis
The Financial Aid Funnel
# in
family
FAFSA
Income
# in
college
 Uses both parent and student
information (dependent students)
 Parent’s income is the major
determinant
 Uses standard income and asset
protections allowance
 Parents’ assets range from 2% to
6% of total
 Students’ assets range from 25% to
35% of total
FM EFC
 Federal Methodology (FM) does
not consider Home Equity or
Qualified Retirement Assets
Elements of Need Analysis
The Financial Aid Funnel
 Institutional Methodology
(IM) treats income and assets
differently than FM
Home
Equity
Medical
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Profile
Allowances
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Typically uses home equity
Protection for emergencies
Protection for college savings
May allow for medical
expenses
May adjust for regional cost of
living
 Institutional options!
IM EFC
 It is OK to estimate!
Financial Aid Notification
A financial aid award
notification is a
communication from a
college that states the
type and amount of
financial aid the student
is eligible to receive if
the students enrolls at
the institution.
Need-Based vs. Merit Based
Need-based aid is dependent on a family’s EFC.
Merit-based aid is an award considering achievement, talent,
participation …. not exclusively based on family’s EFC.
NeedBased Aid
MeritBased Aid
Pell Grant
Academic
Achievement
Work Study
Athletic
Achievement
Eligibility for Financial Aid
4 Year Private 4 Year Public
Total Cost
$42,000
$19,000
- FM EFC
$15,000
$15,000
= Eligibility
$27,000
$4,000
The Financial Aid Package
Total Cost = $42,000
Total Cost = $42,000
Unmet Need:
Scholarship/Grant: $19,000
$4,000
Scholarship/Grant: $15,000
Work
$2,500
Work
$2,500
Loan:
$5,500
Loan:
$5,500
EFC:
$15,000
EFC:
$15,000
The Financial Aid Package
Total Cost = $42,000
Unmet Need:
Total Cost = $42,000
$4,000
EFC after Merit: $12,000
Scholarship/Grant: $15,000
Work:
$2,500
Loan:
$5,500
EFC:
$15,000
Academic:
$15,000
Athletic:
$15,000
Financial Aid Reality
Total Cost of Education
(minus) - Aid Awarded
(equals) = Family Share
Finding the Family Share
Income
Loan
Savings
Finding the Family Share
 Ask people if they know of any private scholarships you could apply for –
employer, guidance office, faith based organizations, clubs family may
belong to and local library. Do research on the web. There are many free,
quality websites for scholarship searches. Be imaginative!
 Families should save as much as they can – no amount is too small!
 Sign up for monthly payment plan through the institution, generally will
allow you to pay the remaining balance over 10 months.
 If you find it difficult to pay within a 10 month period, research long-term
financing options.
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Federal Parent Loan (Plus)
Connecticut Family Education Loan Program (CHESLA)
Private Alternative Loan for Education
Personal Family Options
State of Connecticut Programs
http://www.ctohe.org/sfa
Governor's Scholarship
CT Minority Teacher Incentive Grant/Weisman Teacher Scholarship
English Language Learner Educator Incentive Program
Veterans Benefits
CHESLA Loan Program
The Connecticut Higher Education Supplemental Loan Authority.
Provider of the Connecticut Family Education Loan Program
(CHESLA). www.chesla.org
Top 5 Things to Consider!
1. Never rule out a college because of cost alone.
2. Compare costs before applying — Net price calculators can provide
an estimate of financial aid eligibility and remaining college costs. Net
price calculators should be available on every college's website.
3. Remember to apply — FAFSA deadlines are available online at
https://fafsa.ed.gov/deadlines.htm. Many colleges and universities also
provide funds through an institutional application, the CSS/Financial Aid
PROFILE® and/or a state application.
4. Get advice — The financial aid office at the college or universities you are
applying provide workshops or can give advice.
5. Compare awards — Look at scholarships, grants, loans, and parental
contributions before making a final decision on a college.
Questions to ask and not assume!
 How do outside awards affect the aid package?
 What is the school’s policy on non-custodial parents?
 What is the median student debt level?
 Are the scholarships/grants renewable each year?
 Does the college have a “need-blind” or “need-
sensitive” admissions policy?
 How might awards change in future years?
Final Thoughts …
 Many factors involved in the
awarding of aid result in
different financial aid packages
from different schools.
 Consider a financial “safety”
school.
 The best deal is not always the
best fit!
 Consider all types of aid …
particularly when it comes to
educational loans.
 Look at all financing options –
start with those suggested by
the college at which the student
enrolls.
 Financing plans should cover 4
years.
 Appeal if circumstances
change.
 Spend time with scholarship
and grant search tools – they
make a difference!
Where There’s “The Web”, There’s a Way
www. nces.ed.gov/collegenavigator National Center for Education helps you prepare for
your education beyond high school, build a list of schools using My Favorites for side-byside comparisons, apply for financial aid and even help plan a career.
www.college.gov A site designed by the U.S. Department of Education in collaboration with
students to help students make the dream of college a reality.
www.ed.gov The agency of the federal government that establishes policy for, administers,
and coordinates most federal assistance to education. The site provides information about
the popular Student Guide to Financial Aid and how to apply online to federal programs.
www.sss.gov The Selective Service Registration allows students to check registration and
register for Selective Service.
www.gibill.va.gov
GI Bill.
Department of Veteran’s Affairs provides information on the Post-9/11
www.nslds.ed.gov
student loans.
National Student Loan Data System allows students to track their
.
Where There’s “The Web”, There’s a Way
www.ctohe.org The Connecticut State Higher Education website for state financial aid
programs and links to Connecticut colleges and universities.
www.chesla.org The Connecticut Higher Education Supplemental Loan Authority. Provider
of the Connecticut Family Education Loan Program (CHESLA).
www.collegeboard.com Use the College Board’s College Financing Calculators to help you
figure out how to pay for college and information on scholarships.
www.nasfaa.org Consumer tips for parents and students as well as financial aid tools for
completing required applications.
www.finaid.org Financial Aid Information Page. Lists a variety of financial aid information,
including family contribution calculators.
www.ftc.gov Federal Trade Commission protects America's consumers by providing
information on scholarship scams and how to avoid them.
Where There’s “The Web”, There’s a Way
www.fastweb.com FastWEB a highly popular, customized financial aid scholarship matching
service from a database of 1.5 million scholarships.
https://bigfuture.collegeboard.org/scholarship-search By The College Board. Find scholarships,
other financial aid and internships from more than 2200 programs totaling nearly $ 6 million.
https://mycollegedollars.hyfnrsx1.com can be accessed through FaceBook.
www.scholarships.com Free scholarship search
www.scholarshipamerica.org Dollars for Scholars chapters of Scholarship America mobilizes
support for students getting into and graduating from college. It is a national organization that
has helped more than 1.7 million students follow their dream of getting to college.
www.asfdn.org American Savings Foundation is an independent charitable foundation dedicated
to strengthening the community by supporting education, human services, and the arts, with a
special emphasis on the needs of children, youth, and families through grants to community
organizations and college scholarships.
www.studentlendinganalytics.com Student Lending Analytics lists private loan options for
undergraduates to serve schools and their students who need a focused and neutral resource for
help in finding a private student loan.
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