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 consists of funds provided to students and families to help pay for college.
What is Cost of Attendance (COA)? Direct costs Indirect costs Direct and indirect costs combined into cost of attendance Varies widely from college to college
What is Expected Family Contribution (EFC)? Calculated using data from a federal application form and a federal formula (FAFSA) Used to determine the student’s financial need Stays the same regardless of college Two components Parent contribution Student contribution
What is Financial Need? – Expected Family Contribution Cost of Attendance – Expected Family Contribution = Financial Need
Categories of Financial Aid Need-based aid Non-need-based aid
Types of Financial Aid Gift Aid Self-Help Aid Scholarships Grants Loans Employment Gift Aid Self-Help Aid
Gift Aid: Scholarships Money that does not have to be paid back Awarded on the basis of merit, skill, or unique characteristic
Gift Aid: Grants Money that does not have to be paid back Usually awarded on the basis of financial need
Self-Help Aid: Loans Money students and parents borrow to help pay college expenses Repayment usually begins after education is finished Only borrow what is really needed Look at loans as an investment in the future
Self-Help Aid: Work-Study Employment Allows student to earn money to help pay educational costs A paycheck; or Nonmonetary compensation, such as room and board Student may opt whether or not to work or number of hours to work
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 Work-Study (FWS) Subsidized and Unsubsidized Federal Direct Student Loans Federal Direct Parent PLUS Loans 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)
New York State Programs Information available at hesc.ny.gov Grants and Scholarships Additional State applications Must be NYS resident Attend a college in NYS Graduated from high school in the U.S. or earned a high school equivalency diploma
NYS Tuition Assistance Program (TAP) NYS Tuition Assistance Program (TAP) is New York State’s largest grant program. Must be legal NYS resident and US citizen or eligible noncitizen Attend a NYS college full time Award is based on the applicant’s and his or her family’s NYS net taxable income ($80,000 or less) Application available through on FAFSA confirmation page or can be completed at www.tapweb.org. Uses information from the FAFSA for the application
NYS Scholarships Excelsior Scholarship – SUNY & CUNY students Covers tuition liability only (Combination of Excelsior, TAP Grant, Pell Grant, tuition credit) For families who earn $110,000 or less on 2016 tax return Must enroll 12 credits per term and earn 30 credits during academic year to received Reside (and employed) in NYS for the length of the time the award was received Enhanced Tuition Awards – Students at participating NYS private colleges $6,000 (TAP Grant, ETA, match from College)
Additional NYS Scholarships & Awards Some examples: Part-time students Part-time Scholarships Aid for Part-time Study (APTS) Scholarships for Academic Excellence Achievement & Investment in Merit Scholarship (NY-AIMS) Veterans Tuition Awards World Trade Center Memorial Scholarship Many more at www.hesc.ny.gov
Colleges and Universities Award aid on the basis of both merit and need Aid may be gift aid or self-help aid Use information from the FAFSA and/or institutional applications Deadlines and application requirements vary by institution Check with each college or university
Private Sources Foundations, businesses, charitable organizations Deadlines and application procedures vary widely Begin researching private aid sources early Civic Organizations, Churches, Employers 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 File electronically at fafsa.gov
FAFSA Information used to calculate the expected family contribution (EFC) Colleges use EFC to award financial aid May be filed at any time during an academic year, but no earlier than the October 1st prior to the academic year for which the student requests aid Most colleges set FAFSA filing deadlines
FAFSA on the Web (FOTW) Website: fafsa.gov 2019–20 FAFSA on the Web available on October 1, 2018
FSA ID https://fsaid.ed.gov Parent and student both need an FSA ID Sign FAFSA electronically Used by students and parents throughout aid process, including subsequent school year Only the owner should create a FSA ID
What does the FAFSA ask? General Student and Parent Information Social Security Number Citizenship status Marital status Selective Service registration Student dependency questions Income Information Tax, income, and other financial information Assets Untaxed income Additional Information College and housing information Signatures Required – electronic using FSA ID
Tax Information - IRS Data Retrieval Tool While completing FAFSA, applicant may submit real- time request to IRS for tax data IRS will authenticate taxpayer’s identity If match found, IRS can transmit tax information of student/parent to the FAFSA application Applicant chooses whether or not to transfer data to FAFSA The 2019-20 FAFSA will use 2017 tax information Reduces documents requested by financial aid office
FAFSA Processing Results Central Processing System (CPS) notifies student of FAFSA processing results by: Email notification containing a direct link to student’s online SAR (Student Aid Report) if student’s email was provided on paper or electronic FAFSA Student with FSA ID may view SAR online at fafsa.gov The record is sent to colleges listed on FAFSA School may request additional documentation
Special Circumstances Special circumstance such as: 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 Cannot be documented using FAFSA What to do: Contact financial aid office at each college to explain situation and determine if supporting documentation is needed Decisions are final and cannot be appealed to U.S. Department of Education
Net Price Calculator Required of all colleges by federal regulations Estimated financial aid package for prospective students A starting point, not the end result
Resources fafsa.gov hesc.ny.gov www.racf.org www.fastweb.com www.studentaid.ed.gov
Government Sources Americorps – www.americorps.gov Veteran’s Benefits – www.gibill.va.gov ROTC scholarships or stipends Bureau of Indian Affairs – www.bia.gov NYS Access–VR (Vocational Rehabilitation) U.S. Dept. of Health and Human Services (HHS) – www.hrsa.gov
Helpful Tips (Re) Read everything from chosen College Follow instructions early Avoid summer rush - don’t procrastinate! Take responsibility/ask questions Be aware of FERPA (privacy laws) Make self-service your best friend!
Questions Marie Longyear Associate Director of Financial Aid St. John Fisher College 3690 East Ave Rochester, NY 14618 (585)385-8042 finaid@sjfc.edu