Presented by Jeffrey C. Makris Director of College Counseling, Stuyvesant High School 1 January 2016 Financial Aid 101

An Overview What is “financial aid”? Who is eligible? How do I apply? When do I apply? What kinds of aid might I receive? Final recommendations Sample Aid Packages 2 Agenda

Scholarships – free money Grants – free money, too Loans – money that must be paid back  Work Study -earn money to meet college expenses 3 What is financial aid?

Merit -based aid : money awarded based upon achievement Need-based aid : money awarded because the student has financial need 4

An Overview General Eligibility for Federal Aid Matriculation toward a degree U.S. Citizens or Legal Permanent Residents Registration with Selective Service (males ages 18 – 25) 5 Who is eligible?

An Overview The Federal government maintains that it is the parents’ and student’s responsibility to pay for college. THEREFORE: Both student and parent information is required For divorce or separation, the parent with whom the student resides completes the forms For joint custody situations, the parent who provides the most support completes the forms Many private colleges may ask for “non-custodial” parent financial information, whether we like it or not Contact the college’s financial aid office in unusual scenarios 6 Who completes the forms?

A student is considered to be “Independent” by the Federal Government for only if : They were born before Jan 1, At the beginning of the ‘16-’17 school year they will be working on a Master’s or Doctorate program. They are married as of the date of application. They have legal dependents/children who receive more than ½ of their support from them. Since the student turned 13 both parents are deceased, or the student is a ward/dependent of the court A veteran of or serving active duty other than training in the U.S. Armed Forces They are an emancipated minor or in legal guardianship Declared an unaccompanied homeless youth 7

How do I apply? 8

All legitimate institutions require the FAFSA FAFSA used to calculate the student’s Expected Family Contribution (EFC) FAFSA generates a Student Aid Report (SAR) with the EFC The FAFSA is filed online The student and a parent must first get a FSA ID at: File FAFSA on the Web at 9 Free Application for Federal Student Aid (FAFSA)

Used to award federal and, sometimes, institutional aid Also required to apply for N.Y.S. Financial Aid (TAP) Complete FAFSA after January 1, 2016 Aim to complete it by January FAFSA (Cont.)

NYS Tuition Assistance Program Application TAP Application linked with FAFSA : on the Confirmation Page look for “Optional Feature-start your state application” FAFSA must be processed in order to apply for TAP Website is (Higher Education Services Corporation) 1 st New York institution listed on FAFSA is the school of record Change institution if needed in May 11 How to Apply for NYS Aid

CSS Profile - College Scholarship Service Used by more than 300 Private Colleges Only available online at CSS filers may be asked to supply tax returns via IDOC this winter Fees: $ Registration Fee $ Per College Fee waivers are generated based upon income information provided Fee waiver covers registration & eight colleges 12 Other financial aid forms

Some colleges may also use their own forms in addition to the FAFSA and CSS. Colleges may notify you but be proactive. Check! 13 Other forms cont.

Suggested Timetable ( ): Complete & Submit FAFSA/CSS/TAP- 1/15/16 Update FAFSA based upon 2015 Tax Return 2/15/16 Complete IRS Data Retrieval (asap several weeks after filing return) or request and send tax transcripts for verification, if required Colleges Begin to Award Aid -March Evaluate financial aid packages -March & April Final decision and deposit sent by 5/1/16 14 When do I apply?

KNOW YOUR RIGHTS! NO COLLEGE CAN REQUIRE A STUDENT TO RESPOND TO THEIR OFFER OF ADMISSION UNTIL THEY HAVE PROVIDED A FINANCIAL AID PACKAGE This is only if all of forms were submitted on time AND any requested documentation was supplied May 1 st is sacred, except with ED 15

Summary of Steps 1) Gather important documents 2) Student and parents each obtain FSA ID at: 3) Complete FAFSA at 4) Complete TAP application at 5) Complete the CSS Profile and any institutional forms 6) Check FAFSA Student Aid Report (SAR) and make corrections 7) File 2015 taxes 8) Update FAFSA 9) Activate IRS Data Retrieval or arrange for IRS Tax Transcript be sent to colleges if required 16

17 What kinds of aid might I receive?

Federal Grants Pell Grant (up to $5775) SEOG (up to $4000, but limited) TEACH-$4000, but must serve or pay Iraq/Afghanistan Federal Work Study Earn up to $2500-$3000 per year 18 Sources & Types Financial Aid

These are always better than private loans! Federal Direct Loan Programs Subsidized (need based, 4.29 % interest) Unsubsidized (not need based, 4.29% interest) Loan limits vary per year (1 st year combined max is $5500) The student is the borrower Federal PLUS Loan Parent is borrower Can borrow up to entire unmet COA 6.84 % interest 19 Federal Loans

Tuition Assistance Program (TAP) Need based grant for N.Y.S. colleges only $5,165 to $500 per year Based upon 2015 N.Y.S. Net Taxable Income $80,000 NTI or less 20 NYS Aid Programs

Scholarships & Grants from Colleges May be based upon need or merit May require separate application (scholarships) This is often the largest source of financial aid Many colleges use merit aid to enroll desirable students and meet enrollment needs (aka “tuition discounting”) 21 Institutional Financial Aid

Stuy seniors can apply to countless private scholarships Check , Naviance, and Scholarship winners must notify the school in which they enroll Private loans can be incredibly costly…try to avoid them 22 Private Sources of Financial Aid

AVOIDING SCAMS No one can guarantee anything! Real scholarships require work You should never have to pay to apply for a scholarship Pressure tactics are a bad sign…you aren’t buying a time -share! No one should encourage you to commit fraud 23

Final Recommendations DON’T WAIT…ESTIMATE! File 2015 taxes a.s.a.p. and file them electronically! Students who apply to more than ten schools must submit the FAFSA more than once to include all schools Students with undocumented parents should see their college counselor for guidance Check your junk/spam folder in your every day CSS filers should keep an eye out for an about IDOC Fraud can be very, very costly Ask for FREE help if you need it: Fed –Aid (US Dept. of Education) Any college or university financial aid office 24

Want More Free Help? College Goal NY: financial aid professionals help you file your FAFSA SUNY Financial Aid Days: financial aid information and hands-on help Check the Stuy website and your !

Sample Aid Packages 1 & 2 26

Sample Aid Packages 3 & 4 27