What Every Graduate Financial Aid Administrator
Should Know AboutUndergraduate Financial Aid
Karen Sokol Director of Financial Resource
ManagementSeton Hall Law
Joe WeglarzExecutive Director,
Student Financial ServicesMarist College
Overview of Marist College
Total number of students: Undergraduate: 4,300 Graduate: 1,000
Total number of applications received for 2009-10: 9,900+
85% of students receive some form of financial aid Marist awards over $30 million in institutional aid Marist processes over $45 million in loans
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EASFAA Conference May 17 - 20, 2009 Washington, D.C.
Overview of Seton Hall Law
Total number of students: 1,100 Total number of applications received for 2008
Class: 3,536 85% of students receive some form of financial aid Seton Hall Law awards over $8 million in
institutional aid Seton Hall Law awards over $30 million in loans
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Agenda
Forms
Types of Aid
Conclusion
Q & A
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Why?
Student Expectations
Marketing Pieces: Marist Affordability Guide
Aggregate Loan Limits
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The Purpose of Financial Aid
Primary goal is to assist students in financing their education and is achieved by:
• Evaluating family’s ability to pay
• Distributing limited resources in an equitable manner
• Providing a balance of gift aid and self-help aid
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What is Financial Aid?
Scholarships
Grants
Loans
Employment Opportunities
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Forms
FAFSA CSS Profile Institutional
Application
FAFSA Need Access or other
Financial Aid Form Institutional
Application
Undergraduate Graduate
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The College Scholarship Service (CSS)Financial Aid Profile Used by some colleges and universities to award their own
private financial aid funds Students should register at least two weeks before the
earliest school or scholarship program filing date you need to meet.
The student completes a personalized PROFILE application based on his/her information and college choices
All students are charged $25 for the initial application. This covers the costs of creating your PROFILE Application and the first school report. You will be charged $16 for each additional college or program to which you want information sent.
Students register for the PROFILE service online at https://profileonline.collegeboard.com/index.jsp
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What Is The EFC?
EFC = Expected Family Contribution(Most schools use to determine and award financial aid)
Cost of Attendance
• Determined by each school• May include:
— Tuition and Fees
— Room and Board
— Books, Travel, and Miscellaneous Expenses
Cost of Attendance
(minus)
The Family’s EFC
= Financial Need
Cost of Attendance
(minus)
The Family’s EFC
= Financial Need
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5 Factors Considered in Calculating the EFC:1. Income2. Assets3. Household size 4. Number of students in
college 5. Age of older parent
Examples of Assets:•Educational IRA Accounts•529 Savings Plan•Prepaid Tuition Plan•Trusts•Inheritance•Stocks•Cash•Mutual Funds
Examples of Assets:•Educational IRA Accounts•529 Savings Plan•Prepaid Tuition Plan•Trusts•Inheritance•Stocks•Cash•Mutual Funds
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Undergrad: Dependency Questions
Were you born before January 1, 1986? As of today are you married? (Answer "Yes" if
you are separated, but not divorced.) At the beginning of the school year 2009-2010
will you be working on a master's or doctorate program (such as an MA, MBA, MD, JD, PhD, EdD, or graduate certificate, etc.?
Are you currently serving on active duty in the U.S. Armed Forces for purposes other than training?
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Undergrad: Dependency (Cont.)
Are you a veteran of the U.S. Armed Forces? Do you have children who receive more than half of
their support from you between July 1, 2009 and June 30, 2010?
Do you have dependents (other than children or spouse) who live with you and who receive more than half of their support from you, now and through June 30, 2010?
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Undergrad: Dependency (Cont.)
At any time since you turned age 13, were both your parents deceased, were you in foster care or were you a dependent or ward of the court?
Are you or were you an emancipated minor as determined by a court in your state of legal residence?
Are you or were you in legal guardianship as determined by a court in your state of legal residence?
At any time on or after July 1, 2008, did your high school or school district homeless liaison determine that you were an unaccompanied youth who was homeless?
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Undergrad: Dependency (Cont.)
At any time on or after July 1, 2008, did the director of an emergency shelter or transitional housing program funded by the U.S. Department of Housing and Urban Development determine that you were an unaccompanied youth who was homeless?
At any time on or after July 1, 2008, did the director of a runaway or homeless youth basic center or transitional living program determine that you were an unaccompanied youth who was homeless or were self-supporting and at risk of being homeless?
"YES" to ANY of these questions on the FAFSA - "Independent"
"NO" to ALL of these questions - "Dependent“ EASFAA Conference May 17 - 20, 2009 Washington, D.C.
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Undergrad: Dependency Overrides
If you have reason to appeal your dependency status, you must clearly demonstrate an adverse family situation in order for us to consider you independent for financial aid purposes. This is called a dependency override, and is considered on a case-by-case basis.
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Important Points
Graduate students are independent Financial aid and state requirements may
vary with institutions The FAFSA must be filled out or renewed every year
the student is in college in order to be eligible for financial aid
Don’t assume that all colleges will meet 100% of your demonstrated financial need
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Important Points– Do Either of These Apply?
529 College Saving Plans: For a student who must report parental information, the
accounts are reported as parental investments on the FAFSA, including all accounts owned by the student and all accounts owned by the parents for any member of the household.
Dislocated Worker: In, general, a person is considered a dislocated worker if
they meet one of the conditions specified in questions 85 and 103 on the FAFSA
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Frequent FAFSA Errors
Divorced/remarried parent information Income earned by parents/step-parents Untaxed income U.S. income taxes paid Household size Number of post-secondary education students Real estate and investment net worth
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Undergraduate: Types of Gift Aid
Federal• Federal Pell Grant: $976 - $5,350• Supplemental Educational Opportunity Grant (SEOG)• Academic Competitiveness Grant (ACG)
– 1st academic yr. - $750– 2nd academic yr. - $1,300
• National Science and Mathematics Access to Retain Talent Grant (SMART)
– 3rd yr. - $4,000– 4th yr. – $4,000
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Undergraduate: Types of Gift Aid
State• NY State TAP: $500 – 5,000 • NJ State TAG: $2,850 at a County College to $10,718
at an Independent College or University• Vermont State Incentive Grant $500 – 10,800 for
2008-09• Rhode Island State Grant-$250 – 1,200
Institutional• Need-Based Grant in Aid
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Undergraduate: Types of Scholarship Aid
State• NY State Scholarship for Academic Excellence• NY Lottery-Leaders of Tomorrow Scholarship• NJ STARS, NJ STARS II, Edward J. Bloustein Distinguished Scholars• Urban Scholars Award, NJ World Trade Center Scholarship
Institutional• Merit Scholarship• Athletic Scholarship• Music scholarship• Debate Scholarship
Private• Endowed and Outside Scholarships
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Self-Help Aid
LOANS
Federal Stafford
Federal Perkins
Federal PLUS
Private
EMPLOYMENT
• Federal Work-Study (Need-based)
• Funds generally go directly to student
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Federal Stafford Loan (Subsidized and Unsubsidized)
Subsidized Stafford: • Need-Based• Government pays interest earned
while in school
Unsubsidized Stafford: • Financial need is not a consideration• Interest is accruing while
the student is in school• Interest payments can be made or
deferred
Subsidized Loan:
Effective 07/01/09 fixed interest rate of 5.6%
Subsidized Loan:
Effective 07/01/09 fixed interest rate of 5.6%
Unsubsidized Loan:
Effective 07/01/09 fixed interest rate of 6.8%
Unsubsidized Loan:
Effective 07/01/09 fixed interest rate of 6.8%
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Annual Stafford Loan Limits $5,500 Freshman
0 - 29 earned credits
$6,500 Sophomore 30 - 59 earned credits
$7,500 Junior & Senior 60 - 89 earned credits for Junior 90-120 earned credits for Senior
BASE
ANNUAL
LOAN
LIMITS
Grace period and deferment provisions:– 6 months after student falls below half-time status (6 credits) or graduates
Grace period and deferment provisions:– 6 months after student falls below half-time status (6 credits) or graduates
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Federal Perkins Loan
Made through participating schools to undergraduate, graduate and professional degree students
Offered to students who demonstrate financial need Available to students enrolled full time or part-time Repaid to your school Maximum Annual Loan Amount – $5,500 for
undergraduate students with an aggregate maximum of $27,500. $8,000/year for graduate and professional students with an aggregate maximum of $60,000
Interest rate of 5% with a nine-month grace period Repayment period up to 10 years
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Federal PLUS Loan Borrowers are parents of dependent
undergraduate students Annual loan limit: cost of attendance minus all
other financial aid Fixed Interest of 8.50% for FFEL or 7.9% for Direct
Lending Repayment begins after final disbursement for
the year. However, beginning in the 2008-2009 academic year, parents are able to apply for a deferment. They must contact the lender.
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Private Loans
• Loan in the student’s name
• Credit-based
• Can borrow up to the cost of attendance minus other aid
• The interest rates and terms vary with lender
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Graduate Aid: Grants
Federal• Federal Pell Grant: Graduate Students not eligible• Supplemental Educational Opportunity Grant $0• Academic Competitiveness Grant (ACG) $0• National Science and Mathematics Access to Retain Talent Grant (SMART)
$0State
• NY State TAP: $75-550• NJ State TAG: $0• (NJ) EOF: $2,850 maximum• (NY) Clyde Ferguson: varies – NJ law schools only
Institutional• Need-Based Grant in Aid – varies depending in institutional funding
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Graduate Aid: Scholarships
State• None?
Institutional• Merit Scholarships• Endowed Scholarships
Private• Outside Scholarships
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Graduate Aid: Loans
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Subsidized Stafford Loans – • 6.8% interest rate, no reduction in the interest rate• $8,500 annually
Unsubsidized Stafford Loans – • 6.8% interest rate• $12,000 annually
Perkins Loans – • 5% interest rate• Up to $8,000 annually
Graduate Plus Loans – • 7.9% interest rate (Direct) or 8.5% interest rate (FFEL)• COA less other aid
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Graduate Aid: Student Employment
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• Federal Work Study
• Research Assistants
• Graduate Assistants
• Fellowships
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Scholarship Search College Board
www.collegeboard.com/paying
FastWeb www.fastweb.com
Sallie Mae www.thesalliemaefund.org
Scholarship America www.scholarshipamerica.org
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Questions?
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