understanding the financial aid process. college funding services website: ineedfinancialaid.com...
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Understanding the Financial Aid ProcessUnderstanding the
Financial Aid Process
College Funding ServicesCollege Funding Services
Website: ineedfinancialaid.com
Toll Free: 844-CFS4AID (237-4243)
General: [email protected]
Website: ineedfinancialaid.com
Toll Free: 844-CFS4AID (237-4243)
General: [email protected]
How Do They Determine If I’m Eligible?
How Do They Determine If I’m Eligible?
COA – EFC = NEEDCOA = Cost of Attendance
(Includes tuition, books, room/board, etc.)
EFC = Expected Family Contribution(Based on parent and student income, assets, age, number of students in school, etc.)
Need = Amount of aid the family is eligible
COA – EFC = NEEDCOA = Cost of Attendance
(Includes tuition, books, room/board, etc.)
EFC = Expected Family Contribution(Based on parent and student income, assets, age, number of students in school, etc.)
Need = Amount of aid the family is eligible
What should we know about our Family Contribution?
What should we know about our Family Contribution?
Asset Protection AllowanceWhat is considered an asset?Parental Assets vs. Student Assets
Is debt considered?How should we value our home? -www.finaid.com
-Calculators -Federal Housing Index
Asset Protection AllowanceWhat is considered an asset?Parental Assets vs. Student Assets
Is debt considered?How should we value our home? -www.finaid.com
-Calculators -Federal Housing Index
What should we know about our Family Contribution?
What should we know about our Family Contribution?
Parent Income vs. Student Income
Student Income allowance = $6,260
Self-employed families Do NOT include business assets/worth on FAFSA if you have less than 100 employees
Salary to a dependent as tax benefit detrimental for financial aid
Parent Income vs. Student Income
Student Income allowance = $6,260
Self-employed families Do NOT include business assets/worth on FAFSA if you have less than 100 employees
Salary to a dependent as tax benefit detrimental for financial aid
Borrowing OptionsBorrowing Options
Student Loans vs. Parental Loans
Subsidized vs. Unsubsidized Loans
Federal vs. State vs. Private
Read fine-print and understand entire life of loan
Student Loans vs. Parental Loans
Subsidized vs. Unsubsidized Loans
Federal vs. State vs. Private
Read fine-print and understand entire life of loan
Financial AidFinancial Aid Myths vs. reality: Income too High Grades too Low Own a home Aid is only for special groups
Myths vs. reality: Income too High Grades too Low Own a home Aid is only for special groups
Sources of Financial Aid
Sources of Financial Aid
FEDERAL GOVERNMENTPell GrantsSEOG GrantsCollege Work/StudySubsidized and Unsubsidized Stafford Loans
Perkins LoansPLUS
FEDERAL GOVERNMENTPell GrantsSEOG GrantsCollege Work/StudySubsidized and Unsubsidized Stafford Loans
Perkins LoansPLUS
Sources of Financial Aid
Sources of Financial Aid
State GovernmentSpecial programs for in-state residents.
Teachers, health professionals, minorities, etc.
Contact HESAA (609) 584-4480www.hesaa.org
State GovernmentSpecial programs for in-state residents.
Teachers, health professionals, minorities, etc.
Contact HESAA (609) 584-4480www.hesaa.org
Sources of Financial Aid
Sources of Financial Aid
Colleges and Universities
Private universities have endowment funds, outside of federal and state funds.
Create competitionGive preferential packaging to students who are in top 25% of applicants.
Colleges and Universities
Private universities have endowment funds, outside of federal and state funds.
Create competitionGive preferential packaging to students who are in top 25% of applicants.
What if I do not Qualify for Need-Based
Aid?
What if I do not Qualify for Need-Based
Aid?Merit Aid
Some Schools do not award merit aid
School by school basis; some more generous than others
Value SchoolsAverage School cost $30-$70KLower end of range
Ex. Binghamton UniversityCOA = $35,000
Merit AidSome Schools do not award merit aid
School by school basis; some more generous than others
Value SchoolsAverage School cost $30-$70KLower end of range
Ex. Binghamton UniversityCOA = $35,000
Sources of Financial Aid
Sources of Financial Aid
Private scholarships
Account for 3% of all financial aid
High school guidance department
Private scholarships
Account for 3% of all financial aid
High school guidance department
How Do You Apply?How Do You Apply?
The FAFSA (Free Application for Federal Student Aid)
EVERYONE must fill out this form to get aid
You cannot apply for Federal Loans if you do not fill one out
Not accessible until Jan. 1st
Accessible at FASFA.ed.govAudit/verification process similar to IRS
The FAFSA (Free Application for Federal Student Aid)
EVERYONE must fill out this form to get aid
You cannot apply for Federal Loans if you do not fill one out
Not accessible until Jan. 1st
Accessible at FASFA.ed.govAudit/verification process similar to IRS
FAFSAFAFSA
New Requirement: FSA IDStudent and ParentNeeded to access/submit the FAFSA
Username/Password (Replaced PIN number)
FSAID.ed.govEstimate 2015 taxes, based on 2014 tax returns
Details of all assets that day
New Requirement: FSA IDStudent and ParentNeeded to access/submit the FAFSA
Username/Password (Replaced PIN number)
FSAID.ed.govEstimate 2015 taxes, based on 2014 tax returns
Details of all assets that day
CSS/PROFILECSS/PROFILE
Most private schools require this form
Much more invasive and complexHome equity treated as liquid asset
Section Qwww.collegeboard.com $25.00 for 1st school, $16.00 for each thereafter
Most private schools require this form
Much more invasive and complexHome equity treated as liquid asset
Section Qwww.collegeboard.com $25.00 for 1st school, $16.00 for each thereafter
How Do You Apply For Aid?
How Do You Apply For Aid?
Institutional Applications
Some schools require their own additional forms.
They should be consistent with other forms
Usually asks similar questions to the other two forms
Institutional Applications
Some schools require their own additional forms.
They should be consistent with other forms
Usually asks similar questions to the other two forms
How Do You Apply For Aid?
How Do You Apply For Aid?
FAFSACSS/PROFILECollege Institutional FormsADDITONAL FORMS:
Business/Farm SupplementDivorced/Separated Situations
FAFSACSS/PROFILECollege Institutional FormsADDITONAL FORMS:
Business/Farm SupplementDivorced/Separated Situations
Which Colleges Give You The Best Shot At Getting
Money?
Which Colleges Give You The Best Shot At Getting
Money?
CASE STUDIES :CASE STUDIES :
Amherst College: UMASS-Amherst:Cost - $70,000 Cost - $23,000EFC - $15,000 EFC - $15,000Need - $55,000 Need - $8,000
School A: School B:Meets 100% Need Meets 60% NeedGift Aid - 100% Gift Aid - 50%Self Help – 0% Self Help - 50%
What you actually pay at each school:School A: School B:Total EFC = $15,000 Original EFC =
$15,000Total Gift = $55,000 + Unmet Need = $3,000Total Self = $0 Total EFC
= $18,000Total Gift =
$2,500Total Self =
$2,500
Amherst College: UMASS-Amherst:Cost - $70,000 Cost - $23,000EFC - $15,000 EFC - $15,000Need - $55,000 Need - $8,000
School A: School B:Meets 100% Need Meets 60% NeedGift Aid - 100% Gift Aid - 50%Self Help – 0% Self Help - 50%
What you actually pay at each school:School A: School B:Total EFC = $15,000 Original EFC =
$15,000Total Gift = $55,000 + Unmet Need = $3,000Total Self = $0 Total EFC
= $18,000Total Gift =
$2,500Total Self =
$2,500
How To Appeal Your Financial Aid AwardHow To Appeal Your Financial Aid Award
How To Appeal For The Best Possible PackageHow To Appeal For The Best Possible Package
5 Point Plan of Attack
1. Bring color/background to your story
2. Ask for specific amount of additional aid
3. Show awards offered by other colleges
4. Challenge expenses not considered on taxes
5. Be persistent
5 Point Plan of Attack
1. Bring color/background to your story
2. Ask for specific amount of additional aid
3. Show awards offered by other colleges
4. Challenge expenses not considered on taxes
5. Be persistent
Helpful LinksHelpful Links
ineedfinancialaid.com cfs.inviteeducation.com collegeboard.com collegeprowler.com fafsa.ed.gov fastweb.com finaid.com
ineedfinancialaid.com cfs.inviteeducation.com collegeboard.com collegeprowler.com fafsa.ed.gov fastweb.com finaid.com