Applying for Financial Aid 2017-2018 Academic Year Patricia Buono Senior Assistant Director of Financial Aid Services Telephone: 860-439-2058 E-Mail: patricia.buono@conncoll.edu

Where do I start? Visit college websites for: application requirements and DEADLINES Net Price Calculator Found on each College’s website to help you determine your ESTIMATED expected family contribution (EFC) FOR ONE YEAR Each calculator is unique to that college’s awarding policies. Outcome is a ball park -- not an offer admission or financial aid.

TIPS NET PRICE CALCULATOR Carefully read all instructions and pop ups. If necessary, try to guesstimate income as close as possible. OK to use calculator more than once. Don’t forget untaxed income, i.e. tax deferred pensions or losses on tax return What to do if parents are divorced -- Combine income but results will not be completely accurate. Be careful what assets you put in the calculator.

finaid.org

www.studentaid.ed.gov

What goes into paying for Education? Family’s ability to pay Federal and State government funding College endowment size and awarding policies Outside scholarships i.e. from the community Does the college offer merit or athletic scholarships? Were the financial aid applications and supporting documentation submitted by the deadline date?

Definition of Financial Need Cost of Attendance LESS Expected family contribution (EFC) LESS Other financial assistance EQUALS Financial need

Cost of Attendance Tuition Room & Board Books & Class Supplies Transportation Miscellaneous and Personal Expenses (i.e. purchase of a computer, sometimes health insurance fee, dorm room items needed)

Comparison of Need by Cost (Assumes full-time enrollment) 4 Year Private 4 Year Public 2 Year Public Cost of Education $65,000 $25,000 $ 7,000 Expected Family Contribution (EFC) $10,000 Need $55,000 $15,000

Meeting the Full Need or Gapping College A B Cost of Education $65,000 Expected Family Contribution (EFC) $ 10,000 Need $55,000 Aid Awarded $35,000 Unmet Need $20,000 Add this to EFC!

Family Contribution Components 2017-18 USING “PRIOR PRIOR” YEAR INFORMATION Parent(s)’ 2015 income Student’s 2015 income Parent’s assets value at the time of the application Exclude retirement account balance or primary residence home equity Include trusts, equity value of investment properties, business net worth Include 529 plans set up by parents (not UGMA/UTMA* accounts) Student’s assets value at the time of the application Include trusts, if student is beneficiary and UGMA/UTMA* accounts 529 plans set up by someone other than a parent # of household members: must provide at least 50% support # of dependents attending college (at least half-time) *UGMA/UTMA: uniform gifts to minors act/uniform transfers to minors act where the student owns the account but the parent is the “custodian” or administrator of the account

Untaxed Income Where do I find these? FROM THE FEDERAL INCOME TAX RETURN, FORM 1040 Education Credits (1040, line 50) Health Savings Account deduction (1040, line 25) Tax Exempt Interest (1040, line 8b) Untaxed portions of Pension/Annuity withdrawals (1040, line 16a – 16b) Untaxed portions of Retirement account withdrawals (1040, line15a – 15b) Untaxed portion of Social Security benefits (1040, line 20a – 20b) IRA or SEP/SIMPLE/Qualified Plan contributions (1040, line 28 & 32) Earned Income Credit (1040, line 66a), possibly Additional Child Tax Credit (1040, line 67), possibly Maybe: depreciation/losses from 1040, Schedule C, E or Business Income Tax Return

Untaxed Income Where do I find these? ADDITIONAL ITEMS NOT FOUND ON THE FEDERAL INCOME TAX RETURN, FORM 1040 Child Support Received (not on 1040) Military/Clergy* housing allowance benefit (not on 1040) Pension contributions (W2 box 12 D, E, F, G, H & S) Make sure you don’t put untaxed income /assets in multiple places because it looks like extra income/assets! (i.e. retirement funds in retirement balances and in investment balances) *This includes any employer paid housing; i.e. school employees required to live on campus and not charged for that housing.

Federal Aid Eligibility Determined Using the FAFSA (FREE Application for Federal Student Aid) 2017-2018 FAFSA available 10/01/2016 on www.fafsa.ed.gov Must be a U.S. Citizen or an Eligible Non-Citizen A parent & the student must create a user name and password for the FAFSA at www.fsaid.ed.gov EXCLUDE: Home Equity in your primary residence Information about the noncustodial parent INCLUDE: Custodial parent and stepparent incomes are included MULTIPLE DEPENDENTS IN COLLEGE Parent contribution is divided by the # of dependents* in college *dependents must be enrolled at least half time in undergraduate or graduate studies Parents in college are NOT included in this number. Unmarried but living together/same sex marriages: Income from both partners is used.

www.fafsa.ed.gov

Helpful Tips When Completing the FAFSA Print out the 2017-18 FAFSA on the Web Worksheet Use your 2015 federal tax return and W2 statements. State of Connecticut 2017-18 deadline: 2/15/2017 College Goal Sunday for help with the 2017-18 FAFSA various sites and dates in October 2016 www.collegegoalsundayct.org .

Helpful Tips When Completing the FAFSA Make sure you use your LEGAL NAME (cross checked w/ SSA) Parents and students must provide their SSNs and DOB if a parent does not have a SSN, enter zeros. When reporting assets, in addition to savings/checking and liquid (non retirement) investments, remember to include: % of ownership of Investment real estate equity (value minus mortgage) If renting out a portion of primary residence, include that % of value – debt as well. % of ownership in legal trusts (Remember wills are not trusts.) 529 College Savings Plans: in parent’s name -- include in parent’s investment balances. in name of other than parent – include in student’s investments. Business/investment farm net worth (value minus debt) not if more than 50% family owned and with less than 100 employees

Changing the FAFSA You can update the FAFSA for the following: adding a college updating income i.e. after income tax return is filed correcting errors It is recommended (and may be required) to use the IRS Data Retrieval tool on the FAFSA to update your income – if you filed a federal income tax return.

CSS Profile (not used by all schools) determines Institutional Grant Eligibility CSS Profile: on College Board website cost: $25 + $16 for every additional school listed College Board website has a list of those schools that use the CSS Profile Completed using custodial parent and student information The non-custodial parent information required By completing the Non Custodial Parent Statement on College Board website Items that may be included: Primary residence equity Losses on federal income tax return or depreciation associated with a business or investment property may be added back Parent contribution might not be divided equally for # in college: no allowance for dependents in graduate school reduced allowance for a lower cost institution (i.e. community college) Reduced or no allowance for siblings receiving substantial merit/athletic aid Minimum student contribution: anywhere from $1,000 to $2,200

http://student.collegeboard.org/css-financial-aid-profile

CSS Profile Tips In addition to the assets reported on the FAFSA, you will also be required to report: Primary Residence Equity (value minus mortgage balance) (not necessarily used in formula) Value of your retirement accounts (although not used in formula) Business net worth (value minus debt) Also, use the comment section to relay special circumstances --i.e. a loss of income, one time income or unusual expenses.

CSS Profile Tips Once the Profile has been submitted, you will not be able to make corrections. So be careful! Contact your school if you need to update the information. Many colleges participate in the College Board’s IDOC document imaging service. You send your federal income tax returns, W2 forms, income statements and other required documents to IDOC Participating colleges listed on your profile can then access the docs electronically. Saves you multiple copying /mailing time and expense.

Remember! Grants/Scholarships do not have to be repaid unless a student withdraws during a term. May be considered taxable income -- any amount of grants/scholarships over the cost of tuition and books. Student loans must be repaid. Additional online requirements must be completed. Federal Work Study provides income from a campus job This does not go toward the tuition bill. This is paid to the student in the form of a paycheck or direct deposit.

Sources of Need Based Aid Federal Grants Federal Pell Grant – up to $5,815 Federal SEOG Grant – up to $4,000 Federal TEACH Grant – up to $4,000 Funding for 2017-2018 has not yet been determined. www.studentaid.ed.gov for detailed information about these programs.

Sources of Need Based Aid Federal Student Loans and Workstudy Federal Perkin Loans – up to $5,500 Interest rate is 5% fixed, no origination fees Program was cancelled by US Congress as of 9/30/2015. This may not be available for 2017-18. Federal Direct Loan – dependent student levels (online requirements apply) 1st year = up to $5,500 (of this a maximum $3,500 can be subsidized) 2nd year = up to $6,500 (of this a maximum $4,500 can be subsidized) 3rd-5th year = up to $7,500 (of this a maximum $5,500 can be subsidized) Current interest rates/fees 2016-2017 (2017-18 not announced yet) 3.76% interest rate 1.068% origination fee For more information go to: www.studentloans.gov Federal work study limits usually between $1,400-2,500.

Sources of Need Based Aid State Grants For CT residents attending a college in CT www.ctdhe.org Up to $4,500 FUNDING NOT DETERMINED FOR 2017-18 YET Roberta B. Willis Scholarship Program: FAFSA required – must file by February 15, 2017 Need based: EFC less than $11,000

Sources of Institutional Grants and Outside Resources Institutional Grants/Scholarships come from the college’s endowment funds. Outside Resources – such as: Employee Tuition Benefit Contributions from relatives National Merit, Rotary, Lions Club etc. Scholarships Use High school guidance office as a resource Ask companies that are in the field of your major Search: www.finaid.org

Student Federal Aid Eligibility Requirements U.S. Citizen or Eligible non-citizen Additional documentation may be needed to prove eligibility. Males, 18 and older, must register for Selective Service; Have a valid social security number; Must be enrolled, full time, in an eligible degree or certificate program; Must have a high school diploma or an equivalent (i.e. if home schooled); While enrolled in college, must make satisfactory academic progress (including # of credits and GPA).

What is the Federal Definition of a Parent? If your parents are divorced or separated, answer the FAFSA questions about the parent you lived with more during the past 12 months. If you did not live with one parent more than the other, give answers about the parent who provided more financial support during the past 12 months. Parents who are together but unmarried or same sex marriages: the incomes will need to be combined for FAFSA filing purposes.

What is the Federal Definition of a Parent? If your parent has remarried, you must include information about the stepparent on the FAFSA. The following people are not your parents unless they have adopted you: grandparents, foster parents, legal guardians, older brothers or sisters, or uncles or aunts Other unrelated persons that you may be living with.

What if parent information is not available? If (among a few other reasons) the student has no contact with the parent(s) and does not know where they are and the student has not been adopted by someone else or the student has left home due to an abusive situation or can be considered an unaccompanied youth / homeless, then the College will ask you to provide: third party documentation to verify your living situation from: i.e. an attorney, court officer, social worker. Some colleges also require that you complete their own waiver form in addition to submitting the 3rd party docs.

FEDERAL SHOPPING SHEET FINANCIAL AID AWARD Required by State of CT for CT colleges/universities Purpose: to compare awards “apples to apples” because they should all have the same format Net Price/Cost means Cost of Attendance – EFC – grants/scholarships After Net Price/Cost, you will see loan and work study options

How Aid is Applied to the Bill Generally, the College only bills you for Tuition & Fees and Room & Board Once in the fall semester – usually due in August Once in the spring semester – usually due in January Financial Aid that is posted to your bill: Grants and Scholarships (half posted in each semester) Federal Student Loans, if accepted, (half posted in each semester) once your student has completed the necessary online requirements Federal Work Study is NOT applied to the bill. It is paid to the student in the form of a paycheck or direct deposit as they work and is tax reportable earned income.

What if my family contribution seems unreasonable? Compare aid awards from similar colleges. If the family contribution is significantly different: Ask how the contribution was determined Is there a contribution expected from the non-custodial parent? Were losses reported on the tax return added back? What is the minimum student contribution? How were number of family members in college treated? Was home equity included in the analysis? Has there been a change in family dynamics since the FAFSA was filed re: # in college, income, expenses? If you have special circumstances, request procedures for an “Appeal” or “Review” and ask what the deadline is.

Aid Award in Subsequent Years “The Four Year Plan” Most Colleges make you apply every year for financial aid. But ask: Is this award for just this year? Loan amounts increase as the student advances to the next grade level (causing grants to decrease). Increases/decreases in the family income and/or assets will cause the family contribution to increase/decrease. If the number of dependents enrolled in college changes, the family contribution will change. Remember that only for federal purpose is a sibling attending graduate school included in number in college If the number in family changes, the family contribution will change. Federal and state funding levels change from year to year

How do I pay the rest of the bill? Withdrawals from Savings / Investments / 529 Plans The College’s Installment Payment Plan (not a loan) Home Equity loans, 401K loans, Stock loans Alternative Student Loans through private lenders (i.e. banks, credit unions, state institutions and national student loan lenders) Federal PLUS program (Parent Loan for Undergraduate Student) Apply for other outside scholarships Check with your financial planner or CPA for other options open to you specifically.

Federal PLUS Program PLUS = Parent loan to undergraduate student (student must be a dependent) offered by the Department of Education to custodial and non custodial parents Annual loan limit: cost of attendance minus other aid Fixed interest rate 6.31%, Loan origination fees 4.276% Repayment begins 60 days after the full loan is disbursed. Can defer payments (interest will still accrue) while student is enrolled at least half-time. 31

Resources High School Guidance Office Financial Aid Offices College’s Websites www.studentaid.ed.gov www.finaid.org www.fafsa.ed.gov

COLLEGE GOAL SUNDAY Get FREE help filling out the 2017-18 FAFSA!! www.collegegoalsundayct.org must register! Sunday, October 23, 2016 See next slide for additional dates & sites. 1:00 p.m. – 4:00 p.m. Local sites: New London: Science and Technology Magnet HS Willimantic: Eastern CT State University

College Goal Sunday Additional Dates and Sites Sunday, October 16, 2016 Middlesex Community College  Windsor High School Saturday, October 22, 2016 Gateway Community College & New Haven Promise  Housatonic Community College  Manchester Community College Sunday, October 23, 2016 Eastern Connecticut State University  East Hartford High School  Naugatuck Valley Community College  New London Science and Technology Magnet High School  Western Connecticut State University  Norwalk Community College  Hall High School Saturday, October 29, 2016  New Britain High School & American Savings Foundation

Financial Aid: An Overview Thank you for your attention. What questions can I answer for you? Good Luck in your College journey! Daniel T. Barkowitz, Lasell College 27