e38 coaching families through financial aid

Meghan Cooley Director of Recruitment Communication | Augustana College

Ryan Gebler

Assistant Director of Financial Aid | Lawrence University

1

Many families have unrealistic

expectations Families need to be educated early Ignorance takes away access We have knowledge to share

Why do this session?

2

Start with the Basics

3

Introduce reality Introduce it early Define payment options

www1.salliemae.com/about/news_info/research/how_america_pays_2010/

Paying for College

4

Studentaid.gov/glossary English & Spanish Discuss the definitions Don’t just provide a list Keep people engaged/learning Meeting bingo Prizes

Remember: ignorance = lack of access

Vocabulary/Definitions

5

Present a timeline as early as possible Provide clear deadlines or milestones Help families own the dates Mark up family calendars What motivates your families?

Include savings, scholarship and financial aid deadlines

Timeline

6

What FAMILIES Need to Know

7

1. Types of aid & how to apply 2. Frame expectations 3. Plan of action

What Families Need to Know

8

Gift Aid Merit-based Talent-based Need-based

Self-Help Loans Student Employment

1. Types of Aid

9

Types Academic Talent Service/Involvement Athletic

How to apply Application for admission Separate application Audition Interview Essay

Merit & Talent Aid

10

“Need” is defined by each school’s analysis of: FAFSA Institutional Application Combination of both

“Need” is relative to Cost of Attendance

Need-based Aid

11

Loans Student Employment

Self-Help

12

Federal Loan Options Stafford Limit based on year in school ($5,500, $6,500, $7,500 )

Perkins Not every college participates Limited funding

PLUS Parent Loan Easy application (must not have adverse credit history)

Private Student Loans Variable & fixed interest rates 85% of dependent undergraduates need a co-signer

Loan Options

13

Different names… pretty much the same thing Federal Work-Study Student Employment Campus Employment

Paid for hours worked ($ goes directly to the student) Can be used for: Tuition Books Pizza, etc.

Student Employment

14

Net Price Calculator Federally mandated Estimated Cost of Attendance for that individual at that

specific institution Based on income information and, sometimes, academic

information

2. Frame Expectations

15

Dispel hope for “magical” full-tuition scholarship Hope is not a plan Are scholarships stackable? Do scholarships help meet need?

Dismiss myths Private schools provide grants to bring the cost down to that of a

public school. MYTH! Disregard averages “Half the population is below average.” –Ryan’s statistics professor

Ask questions How is scholarship determined for first year? How is it renewed for future years? (GPA, major, other

commitments?)

2. Frame Expectations

16

Understand your EFC Net Price Calculator (available on school’s website) FAFSA 4Caster FAFSA

What is the family’s budget? What is most important for the student? Get organized & apply! Which board game are you playing?

3. Plan of Action

17

Plan of Action: Teaching Families About the

Financial Aid Process

18

WHAT IT’S NOT… A dollar amount expected from income and/or assets An estimate of extra cash available

WHAT IT IS… A financial index used to determine eligibility for federal

student aid (i.e. Pell Grant, Subsidized Stafford Loan) A measure of a family’s capacity over time to absorb

educational costs An important index for families to know

What is an EFC?

19

FAFSA 4caster

https://fafsa.ed.gov/FAFSA/app/f4cForm Other “estimators” The actual application… the FAFSA! Complete the FAFSA as a junior, sophomore, or freshman Gives you an idea of what to expect when you complete the

FAFSA after January 1 of your senior year.

How to Determine Your EFC

20

Annual & Monthly Sources Parent Savings Income

Student Savings Summer Earnings Employment during the academic year

Other

What’s Your Budget?

21

Debt-Free vs. School-of-Choice The Bottom Line vs. “Fit” Earning Potential vs. Loan Debt

What’s Important to the Student?

22

What are the deadlines? Deadline by type of application Federal Institutional State? Scholarships

Firm or soft deadline? What are the documents? How can you track documents?

Get Organized

23

Federal FAFSA = eligibility for federal student aid Most institutions use this in determining need-based aid

Institutional Different questions, different rules, different game

Applications: Federal v. Institutional

24

Timeline

What When

Preliminary Planning Freshman, Sophomore, Junior

Deadlines & Documents Summer before Senior Year

Application for Admission Fall of Senior Year

Institutional Application(s) Varies: November-March

FAFSA January/February of Senior Year

“Outside Scholarships” Varies: November-April

25

Know what questions to ask

26

Where is the money coming from? Do parents know? Does the student know? Coach them through what questions to

ask themselves Prepare them to discuss their financial

plan with a college

What’s your pie look like?

27

Families need to: be comfortable talking finances ask direct questions be proactive discuss scholarships, financial aid,

etc. EARLY in their college search

Talking to Colleges

28

Best Definitions: studentaid.gov/glossary

How Families Pay Graph: www1.salliemae.com/about/news_info/research/how_america_pays_2010/

Public Service Pieces: Online: collegequestions.org

Hardcopy: order from augustana.edu/publicservice

Preparing for College: The Parent Path Preparing for College: the College Path Checklist Preparing for College: 25 Questions to Ask a College How Families Pay for College The Liberal Arts and Your Education

References

29

Meghan Cooley meghancooley@augustana.edu

Ryan Gebler geblerr@lawrence.edu

30