What You Need to Know About Financial Aid

Topics We Will Discuss Tonight What is financial aid? Cost of attendance (COA) Expected family contribution (EFC) Financial need Categories, types, and sources of financial aid Free Application for Federal Student Aid (FAFSA®) Special circumstances

What is Financial Aid? Financial aid helps pay the cost of attending college Financial aid may awarded based on Financial need (need-based) Other criteria, such as academic or athletic ability or a special talent (merit-based)

Formula for Need Based Financial Aid Cost of Attendance – Expected Family Contribution (EFC) = Financial Need

What is Cost of Attendance (COA)? The COA is determined by each college and varies widely, but it always includes the following components: Tuition and fees Room and board Books and supplies Transportation Miscellaneous expenses

What is Expected Family Contribution (EFC)? Amount family can reasonably be expected to contribute Stays the same regardless of college Determined based on FAFSA results

Need Varies Based on Cost

Categories of Financial Aid Need-based aid Non-need-based aid

Examples of Need Determination College A B C COA $ 15,000 $30,000 $60,000 - EFC 5,000 = Financial Need $ 10,000 $ 25,000 $55,000 This sample chart demonstrates a student’s eligibility for need-based financial aid based across three different priced colleges with an Expected Family Contribution of five thousand dollars. As mentioned earlier, the EFC calculated from the student’s FAFSA stays the same across all the different colleges. In the example you see that the student qualifies for need-based aid at all three colleges. However, at colleges priced the same as College C the student will have the greatest need. Now that we know how need is determined, let’s take a look at some of the financial aid programs that a student may receive to help cover their college costs.

Types of Financial Aid Scholarships Grants Free Money Loans Employment Self-Help Aid

Sources of Financial Aid Federal government States Colleges and universities Private sources Civic organizations and churches Employers

Federal Government Largest source of financial aid Aid awarded primarily on the basis of financial need Must apply each year using the FAFSA

Federal Student Aid Programs Federal Pell Grant Iraq and Afghanistan Service Grant (IASG) Teacher Education Assistance for College and Higher Education (TEACH) Grant Federal Supplemental Educational Opportunity Grant (FSEOG) Federal Work-Study (FWS) Federal Direct Student Loans (Direct Loans) Subsidized Unsubsidized Federal PLUS Loans

Federal Student Aid Eligibility Criteria Students must also Have a high school diploma or recognized equivalent, such as a GED/TASC Be enrolled, or accepted for enrollment, in an eligible degree or certificate program Maintain satisfactory academic progress requirements The student must have a high school diploma or an approved equivalent, such as a GED or TASC, which is what we use in New York State; The student must also be enrolled or accepted for enrollment as a matriculated student working toward a degree or certificate in an eligible program, and be making academic progress while attending school. Now let’s talk about the financial aid programs provided by New York State.

States Residency requirements usually apply Award aid on the basis of both merit and need Use information from the FAFSA and/or state aid applications Deadlines vary by state Check PDF FAFSA or FAFSA on the Web website

NYS Student Aid Eligibility Criteria Students must: Be New York State residents If dependent, parents must also be NYS residents Attend and matriculate at an eligible college in New York State Meet other eligibility criteria for specific programs More info at hesc.ny.gov To qualify for any New York State grant or scholarship program, students and parents must be residents of New York State for at least 12 months prior to starting college. In addition, the student must attend an eligible school located in New York State. New York State aid is not offered to students attending colleges outside of New York State. For some programs, students must meet other criteria, such as income limits. More details about state aid programs are available at hesc.ny.gov.

NYS Tuition Assistance Program (TAP) Separate application at www.HESC.ny.gov Undergraduates Need-based, up to $5,165/year Full-time and part-time study in NYS Based on NYS Income Tax information Need to maintain good grades The Tuition Assistance Program (TAP) is New York State’s need-based grant program. TAP is awarded to help cover tuition costs only and may be available for either full or part-time students attending a college in New York State. Currently, the maximum TAP award is up to $5,165 per year. Qualifying for TAP and the exact amount awarded will depend on student and parent New York State net taxable income.

NYS Excelsior Scholarship Provides full in-state tuition coverage for students attending SUNY/CUNY after Pell, TAP, & other grants, scholarships and waivers for tuition 2018-19 applicants must have a 2016 federal adjusted gross income (AGI) < $110,000 for student and parent AGI increases to $125,000 for 2019-20 applicants Must complete 2018-19 FAFSA & TAP application first & then the Excelsior application at hesc.ny.gov Must be full-time and earn 30 or more credits each year The Excelsior Scholarship provides for full in-state tuition coverage for students attending SUNY or CUNY. The scholarship is deducted by any Pell, TAP, or other grant or scholarship aid that covers tuition. 2018-19 applicants must have a household federal adjusted gross income (AGI) at or under $110,000 to qualify based on the 2016 income tax returns. The AGI cap will increase to $125,000 for 2019-20 applicants based on the 2017 income tax returns. You can apply for Excelsior after filing the FAFSA and TAP applications on hesc.ny.gov. The application period for the 2018-19 school year will be announced some time during this year.

Colleges and Universities Depends on funding at each college College determines eligibility criteria for need-based and non-need-based programs Academic, athletic, and other talent-based scholarships and grants May require an additional application May be free money or self-help aid Deadlines & Application requirements vary by institution (check with your college ASAP) Colleges also provide their own financial aid programs, known as institutional aid. Each college sets their own eligibility criteria for both need-based and non-need based financial aid programs. Many colleges use the FAFSA application to determine eligibility for need-based institutional aid programs. Some colleges require another financial aid application, such as The College Board’s CSS Profile, to be considered for need-based institutional aid. We will discuss the CSS Profile application a bit later. Merit-based institutional grants and scholarships may be based on academic, athletic, and other talents. Make sure the college is aware of any special skill or talent you have so you are considered for any of these special awards. Be sure to keep track of all the different deadlines and applications required at the schools to which you are applying. Funds may be limited, so be sure to complete required applications as early as possible. A college’s financial aid website can provide you with information on the availability of institutional aid programs, required applications, and deadlines.

Private Sources, Civic Organizations & Employers Foundations, businesses, charitable organizations Deadlines and application procedures vary widely Begin researching private aid sources early Research what is available in the community To what organizations and churches do the student and family belong? Companies may have scholarship available to employees or children of employees. Application process usually occurs during spring of the senior year. Small scholarships add up!

Free Application for Federal Student Aid (FAFSA®) A standard form that collects demographic and financial information about the student and family May be filed electronically or using paper form Available in English and Spanish

FAFSA Information used to calculate the expected family contribution (EFC) Amount of money a student and his or her family may reasonably be expected to contribute towards the cost of the student’s education for an academic year Colleges use EFC to award financial aid

FAFSA May be filed at any time during an academic year, but no earlier than October 1st prior to the academic year for which the student requests aid For the 2018–19 academic year, the FAFSA may be filed beginning October 1, 2017 Most colleges set FAFSA filing deadlines

FAFSA on the Web (FOTW) www.fafsa.ed.gov

FSA ID Sign FAFSA electronically Not required, but speeds up processing May be used by students and parents throughout aid process, including subsequent school year Only the owner should create a FSA ID https://fsaid.ed.gov/npas/index.htm

General Student Information Social Security Number Citizenship status Marital status Drug convictions Selective Service registration Level of parents’ school completion

Student Dependency Status FAFSA asks questions to determine dependency status for federal student aid (not IRS) purposes: If all “No” responses, student is dependent If “Yes” to any question, student is independent

Information About Parents & Student Tax, income, and other financial information Dislocated worker status Receipt of means-tested federal benefits Assets Untaxed income

IRS Data Retrieval Tool May be available October 2017 for 2018–19 processing cycle Participation is voluntary (but using it may reduce documents requested by the financial aid office Some may be unable to use the IRS DRT – in which case you must have your Federal Tax Forms in front of you

Signatures Required Format for submitting signatures Student One parent (dependent students) Format for submitting signatures Electronic using FSA ID Signature page Paper FAFSA

Frequent FAFSA Errors Social Security Numbers Divorced/widowed/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

FAFSA Processing Results CPS notifies student of FAFSA processing results by: Email notification containing a direct link to student’s online SAR, if student’s email was provided on paper or electronic FAFSA Student with FSA ID may view SAR online at www.fafsa.gov

Making Corrections If necessary, corrections to FAFSA data may be made by: Using FAFSA on the Web (www.fafsa.gov) if student has a FSA ID; Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or Submitting documentation to college’s financial aid office

FAFSA Processing Results Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA is submitted College reviews ISIR May request additional documentation

Complete your TAP Application Complete your TAP application by clicking the state application link on the FAFSA confirmation page. If you miss it, the student will receive an email to file for TAP within 3-4 days. Once you successfully complete the FAFSA, you will see the confirmation page. If you indicated you are a resident of New York State and listed at least one college located in New York State on the FAFSA application, the link highlighted in this screen shot will be present on the confirmation page. Using the link will bring you to the HESC TAP application web portal. Make sure pop-up blockers are set to allow pop-ups on the FAFSA website! First time TAP applicants will need to establish a HESC User ID and PIN number as part of the application process.

Complete the CSS Profile, if needed The CSS Profile is an additional application used by some private colleges to award institutional aid Check the financial aid page of the college website to see if the CSS Profile is required. Collects more detailed income and asset data Collects information about non-custodial parent Application fee, waivers may be available Apply starting October 1st of senior year online at collegeboard.org The college board’s CSS Profile, is an additional aid application that some colleges require before they award any institutional aid. It collects more detailed information than the FAFSA. Each college will tell you if the CSS Profile is required. It is important to note that the CSS Profile is not free. There is a $25 fee for the first school and a $16 fee for each additional school. Fee waivers may be available for some low-income applicants so be sure to check with your school’s guidance counselor or college advisor to see if you qualify. If you need assistance with any of the questions on the CSS Profile, check with those colleges that are requesting the information for advice on how to proceed. Colleges may choose to waive some of the required Profile items based on individual exceptions or special circumstances. The CSS Profile is available online at Collegeboard.org starting October 1 of your senior year.

Special Circumstances Cannot be documented using FAFSA Send written explanation and documentation to financial aid office at each college College will review and request additional information if necessary Decisions are final and cannot be appealed to U.S. Department of Education

Special Circumstances Change in income Change in employment status Unusual medical expenses not covered by insurance Change in parent marital status Unusual dependent care expenses Student cannot obtain parental information

Steps to Apply for Financial Aid in Review Step 1 – Get your FSA ID Step 2 – Complete your FAFSA at fafsa.gov Step 3 – Complete your TAP application Step 4 – Complete the CSS profile, if needed Step 5 – Complete the Excelsior Application Step 6 – Respond to college requests!!!