Financial Aid & The College Decision Process

Nashwa BollingAssociate Director of Budget, Research & Analysis

Financial Aid

The College Decision Process

Financial fit & the value of obtaining a degree

Be prepared◦Terms & Definitions◦Applications◦Types of Aid

Next Steps

Paying for College

Financial Aid Award Letter (Aid Package) Multi-year commitment Rising Costs Family Discussions Net Price Calculators

Is College Worth the Cost?

Adam Looney and Michael Greenstone, the Hamilton Project

Be Prepared

Welcome to the Financial Aid, I need the following information:◦ Salary◦ Investments◦ Cash, Savings, Checking balance◦ Home Value◦ Taxes Paid◦ Tax Transcript from the IRS

Be Prepared / Organization

Colleges have varying deadlines◦ Priority deadlines◦ Ask what it means?

Financial Aid Applications Scholarship Applications Terms

◦ Start developing a glossary◦ www.collegeincolorado.org (Financial Aid Planning)

Admission Office

Determines eligibility for merit based aid◦ Evaluate GPA ◦ ACT and/or SAT Scores◦ Extracurricular Activities◦ Leadership◦ Community Service◦ Teacher Recommendations

Financial Aid Office

Establishes the cost of attendance (Sticker Price)

Evaluates family’s ability to pay by determining an expected family contribution (EFC)

Offers financial aid based on the cost of attendance and the expected family contribution

Distributes resources in an equitable manner

Counsels families on financial issues

Determining Costs and Aid

Cost of Attendance◦ Direct Costs

Tuition and Fees Room & Board

◦ Indirect Costs Books & Supplies Transportation Personal Expenses

Determining Costs and Aid

Financial NeedCost of Attendance - Expected Family ContributionFinancial Need

◦ Need varies based on cost◦ Most colleges are unable to meet 100% of

financial need with scholarship and grant aid

Financial Aid Applications

FAFSA – Free Application for Federal Student Aid

◦ Required to determine eligibility for many federal, state and institutional aid programs which can include scholarships, grants, work study and student loans

◦ www.fafsa.ed.gov

Expected Family Contribution FAFSA

◦ Income Taxed and Untaxed Allowances for

Basic Living Expenses, Social Security and income taxes

◦ Assets Cash, Savings, Checking, Stocks, 529 plans, Business

Net Worth Home value is NOT included Allowances for

Asset Protection and Education Savings

Equation: Adjusted Gross Income – Allowances + Assets = EFC

Financial Aid Applications CSS PROFILE – College Board

◦ Many private universities and scholarship providers require the CSS PROFILE application to determine financial eligibility for institutional aid programs

University of Denver, Daniels Fund, Colorado College (400 nationwide)

◦ $25 Application Fee◦ Comprehensive look at family wealth

Includes home equity◦ Non-custodial parent information◦ http://profileonline.collegeboard.com

Financial Aid Applications

Documentation needed to complete applications (Parent and Student)◦ Federal Income Tax Returns◦ W-2 Forms◦ Driver’s License◦ Social Security Numbers◦ Savings and Checking Account

Information

Financial Aid Applications

Additional Documentation needed to complete CSS PROFILE application (Parent and Student)

◦ Records of untaxed income & benefits

◦ Current Mortgage Information◦ Records of stocks, bonds, trusts,

and other investments

Financial Aid Applications

Tips for Completing Applications◦ Meet Deadlines◦ You can estimate information on both the FAFSA

and CSS PROFILE applications◦ Reapply every year ◦ Ensure Social Security Number is correct◦ Send applications to the correct institutions◦ Ask questions if you are unsure

Types of Aid Scholarships & Grants

◦ Need-based, merit-based, or a combination Federal & State Grants

◦ For lower income students & families Student Employment

◦ Students work on campus 10-20 hours a week◦ Paid hourly wages◦ Great way to gain valuable work experience

Loans◦ Direct Stafford, Parent PLUS, and private

Loans – Are they Evil?

No, but excessive borrowing is!

How much will your payment be?◦ Loan Balance of $10,000◦ 6.8% interest rate◦ Standard 10 year Repayment Plan

A. $105B. $115C. $125D. $135

For every $10,000 in loan balance, you will pay $115 per month for 10 years. $3,810 in interest

Smart Borrowing

Don’t borrow more than your first year salary

What do teenagers think their salary will be? (Charles Schwab - Teens & Money Survey 2011)

Financial Aid Resources

Financial Aid Office & Website◦ Webinars / Chats / Videos / FAQs

Application Completion Events◦ High School◦ FAFSA Free for All Events◦ Financial Aid Office

Department of Education◦ @FAFSA◦ http://studentaid.ed.gov

Private Scholarships

Civic Groups/Organizations (Rotary, Lions, etc…) Religious Organizations Corporations (Target, Coca Cola, Ford, etc….) www.fastweb.com or www.scholarships.com Facebook App: My College Dollars High School Counselor College or University Financial Aid Office Website

Where Do I Go From Here? Make financial aid part of your college visits Do a bit of detective work!

◦ Do the colleges use financial need in determining their admission decisions?

◦ How does the college treat private scholarships? ◦ On average how much need does a college meet?

Utilize Net Price Calculators Inform colleges about special circumstances Investigate and apply for private scholarships

Questions?

Nashwa BollingAssociate Director of Budget, Research

& Analysis, Financial Aid

303-871-4020 finaid@du.edu

A copy of the presentation is available at:

http://duadmission.typepad.com/blog/