1	"Financial Aid Overview" Financial Aid Overview 2008-2009 Denise Peña Financial Aid Advisor
2	Commonly Asked Questions What is Financial Aid? Where does it come from? What aid is available? Who is eligible? How to apply?
3	Agenda Define Financial Aid Define Financial Need How Need is Determined Types of Resources Federal Aid Programs State Aid Programs Other Aid How to Apply Tips for Avoiding Problems Putting It All Together
4	What is Financial Aid? Scholarships Grants Loans Employment opportunities
5	Types of Aid Gift Aid: Grants and scholarships (need-based or merit-based) Self-help Aid: Loans and employment (need-based or non-need-based)
6	Goals of Financial Aid Primary goal is to assist students in paying for college and is achieved by: Evaluating family’s ability to pay educational costs Distributing limited resources in an equitable manner Providing balance of gift aid and self-help aid
7	Financial Need
8	Need Varies Depending on Cost
9	COST OF ATTENDANCE (COA)
10	Expected Family Contribution An expectation of family ability to contribute to paying college costs over time A formula used to measure relative financial strength to contribute to education Not a measure of “extra” cash on hand Think of it as an index
11	Elements of Federal Methodology Used to determine eligibility for all Federal Aid Both parent and student information (for dependent students) Uses standard income and asset protection allowances Does not consider primary home or retirement assets No cost to complete the application
12	Institutional Methodology for Institutional Funds Similar “funnel” Used by some colleges to give out their own money Formula could vary from school to school Generally includes more assets than the Federal Methodology Home Equity often included Non-custodial Parent Information Often requires additional applications/forms
13	Parent Contribution Base Year Income (prior tax year) Assessed only after allowances for taxes, standard living allowance, and other normal expenses are deducted from income Current Assets Assessed only after allowances for retirement and other protections are allowed Number in Household Number in College (excluding parents)
14	Student Contribution Base year income Current Assets Assessed at a higher rate than parental assets WHY? Students have the primary responsibility to contribute to their own educations Students are the primary beneficiaries of their own education
15	Types of Resources Primary—Resources BEFORE Financial Aid Secondary—Student Financial Aid used to REDUCE or FINANCE educational expenses Alternative Resources—generally to FINANCE or MANAGE the cost of education after primary and secondary resources are used
16	Primary Resources FAMILY Resources Savings and other investments Earnings Employer Tuition Benefits Student and Parent(s) STUDENTS have the primary responsibility for contributing to their education to the extent that they are able. PARENTS are responsible for contributing to their children’s education to the extent that they are able.
17	Secondary Resources Financial Aid Grants and Scholarships Gift Aid that does not have to be repaid Merit-based Scholarships Need-based Grants Work Study Job opportunity for a student to help with their own education-related costs Student Loans Low-interest, deferred payment options for students—learn now, pay later Private Scholarships
18	Alternative Resources Parent and Private Loans Low-interest loans to finance cost of college over time Use to fill in where savings and earnings cannot Use to fill gap between college and financial aid Payment Plans Spread payments over academic year vs. lump sum
19	Institutional Aid Programs From college funds or endowed funds donated to the college The college’s own investment in the student Scholarships Often Merit-based, from schools and private agencies Often awarded through Admissions process Grants Often Need-based Apply for them Other: student work and loan programs
20	Federal Grants Federal Pell Grant (2008-09) Exceptional financial need Entitlement $200 to $4,731 depending on calculated index (EFC) Federal SEOG Grant Exceptional financial need $200 to $2,000 depending on school’s allotment Academic Competitiveness Grant (ACG) $750 in first year, $1,300 second year Must meet eligibility criteria National SMART Grant $4,000 in 3^rd and 4^th year Must meet eligibility criteria
21	Cal Grants Cal Grant A & B Need-based criteria Income and Asset Ceilings Merit-based criteria 3.00 min GPA for Cal A 2.00 min GPA for Cal B Tuition and Fees (2008-09) Private Colleges maximum of $9,708 CSU maximum of $2,772 UC maximum of $6,636
22	Cal Grants, Cont’d. Apply through FAFSA School or student submits GPA Verification March 2, 2008 deadline (Very Firm!) More info available at www.calgrants.org
23	Self-Help Aid Resources Work Study—a job opportunity Stafford Loans Require repayment after the student leaves school Low interest rate (fixed at 6.0 - 6.8%) May be need-based (subsidized) or non-need-based (unsubsidized) Students do not accrue interest on subsidized loans while enrolled at least half-time in a degree-granting program
24	Self-help aid, Cont’d. Stafford Loan Limits Freshmen $5,500 (max $3,500 subsidized) Sophomores $6,500 (max $4,500 subsidized) Juniors and Seniors $7,500 (max $5,500 subsidized) Must apply for and meet FAFSA eligibility requirements Colleges will provide additional info on how to obtain the loan once eligibility is established
25	Self-Help Aid, Cont’d. Perkins Loan Low, fixed-interest rate (5%) Repayment begins 9 months after student leaves school Interest does not accrue while the student is at least half-time in a degree granting program Reserved for students with the highest demonstrated need Funding varies from school to school
26	Parent Loans Low-interest means to help families finance the cost of education Parent Loan for Undergraduate Students (PLUS) Credit-based approval process Interest is fixed at 8.5% Repayment can begin after student leaves school Check with college for their preferred application process
27	APPLYING FOR AID
28	General Students Eligibility Criteria Must be enrolled or accepted for enrollment in eligible program of study Must be pursing degree, certificate, or other recognized credential Must be a U.S. citizen or Eligible non-citizen Males must be registered with Selective Service May not have eligibility suspended or terminated due to drug-related conviction Must have valid Social Security Number (SSN)
29	Role of the Financial Aid Office Determines aid eligibility using federal formula Packages aid depending on availability of funds Sends award notification including: Award amount for each program for which student is eligible Disbursement methods and time frames Terms and conditions of each award
30	Aid Application Materials FAFSA - Free Application for Federal Student Aid Required by all colleges No Cost PROFILE Some private colleges require this Fee-based Institutional Aid Application Usually part of admissions packet Tax Returns Additional Forms Business/Farm Supplement Non Custodial PROFILE
31	PROFILE Collects 3-years of financial information 2006, 2007, and 2008 Collects additional info about household Educational loans in repayment Elementary/Secondary Tuition Costs Medical/Dental expenses Special Circumstance Asks campus-specific questions Alumni Relationships Much More DETAILED than the FAFSA!
32	FAFSA on the Web
33	FAFSA on the Web
34	PIN Registration
35	FAFSA on the Web Worksheet 8-page booklet containing: Instructions 97 questions in 5 sections Worksheets A, B, and C
36	FOTW Worksheet: Section 1 General Student Information Name State of legal residence Social Security Number Driver’s license number (optional)
37	FOTW Worksheet: Section 1 General Student Information Degree type Grade Level Enrollment Status
38	FOTW Worksheet: Section 2 Student’s dependency status If all “No” responses, student is dependent If “Yes” to any question, student is independent
39	FOTW Worksheet: Section 5 Federal School code for up to six schools Housing plans for each school
40	ERRORS can be COSTLY! Errors on the FAFSA or supplemental forms may DELAY application processing and result in the LOSS of financial aid funds. Read the instructions and complete all forms carefully!
41	Frequent FAFSA Errors Parent and student Social Security Numbers Divorced/remarried parental information Income earned by parents/stepparents Untaxed income U.S. income taxes paid Household size Number of household members in college Real estate and investment net worth
42	Making Corrections If necessary, corrections to FAFSA data may be made by: Using FAFSA on the Web (www.fafsa.ed.gov) if student has a PIN; Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or Submitting documentation to school’s financial aid office
43	Putting it All Together!
44	Putting It Together Research College Materials What aid programs do they offer? What is their aid application process? What are the DEADLINES! Apply for Everything Academic awards (as appropriate) Need-based awards Private scholarship resources
45	Dominican Example Students apply for admission (March 2^nd priority deadline) Students and Parents complete FAFSA by March 2^nd Cal Grant Deadline Financial Aid Office Reviews eligibility and determines student awards for admitted students Typical award includes: Academic Scholarship (determined by Admissions) Need-based Grant Work Study Student Loan
46	Dominican Example Starting Mid-March, students receive aid packages Compare Discuss with family Review Financial Options Decide Commit (4 Years!)
47	Final Tips Apply for everything Meet Deadlines Reapply every year Notify the financial aid office of any unusual family financial circumstances Ask for help when needed Remember that financial aid is heavily regulated. Have Patience, particularly with financial aid staff!
48	Helpful Resources California Student Aid Commission www.csac.ca.gov College Board www.collegeboard.com Financial Aid Information www.finaid.org Department of Education www.studentaid.ed.gov
49	Questions & Answers