Welcome to the Wonderful World of Financial Aid Catherine Boscher-Murphy Associate Director Montclair State University

Topics of Conversation What is financial aid? Types and sources of financial aid How do you apply? Forms? Deadlines? How is eligibility determined? What is the Expected Family Contribution? Cost of Attendance

What is Financial Aid? Includes all funds made available to students not paid directly by the family Grants Scholarships Student employment (work-study) Loans

Grants Gift Aid Does not have to be repaid Typically awarded based on need

Scholarships Gift Aid Does not have to be repaid Typically awarded based merit or a skill Academic achievement Athletic ability

Student Employment Offered by college Part-time job Paid for hours worked Not applied to college bill

Loans Borrowed funds must be repaid Student loans Parent loans Private loans Interest and repayment plans differ by program Borrow wisely

Sources of Financial Aid Federal State of New Jersey Institutional Outside Organizations Civic organizations (ex.-local Rotary Club) Parent’s employer High school awards Private sources

Am I Eligible to Apply? US Citizen or legal resident HS Diploma or GED Valid Social Security number (student) Male – registered for Selective Service Enrolled in eligible program Degree/certificate program Eligible institution For NJ programs – must be resident of NJ 12 months prior to beginning college 9

How Do I Apply? FAFSA State of NJ (HESAA) College Board CSS Profile Free Application for Federal Student Aid 6000+ colleges/schools require State of NJ (HESAA) Additional questions for state grant eligibility College Board CSS Profile About 400 schools require this supplemental form Institutional forms 10

When Do I Apply? FAFSA – NJ HESAA Additional Questions - CSS Profile https://fafsa.ed.gov Available 10/1 in fall of high school senior year Priority deadlines vary for each college Meet the earliest deadline NJ HESAA Additional Questions - www.hesaa.org Deadline for completion is early fall after high school CSS Profile www.student.collegeboard.org/profile Varies by school 11

Three Key Terms EFC – Estimated Family Contribution COA – Cost of Attendance Need – what colleges use to develop award package Need will not be what you want it to be

EFC (Estimated Family Contribution) Formula produces the EFC Amount the family can reasonable contribute to educational costs Includes contribution from parent(s) and student income and assets EFC Calculator: https://bigfuture.collegeboard.org/pay-for-college/paying-your-share/expected-family-contribution-calculator

COA (Cost of Attendance) Direct and indirect expenses Tuition and fees direct Housing and Meals direct or indirect Books and Supplies direct (not billed) Transportation indirect Miscellaneous indirect

Determining Aid Eligibility COA - EFC NEED

Examples of Need COA 6000 25000 45000 EFC 11000 Need 14000 34000 School Type 2 yr. public 4 yr. public 4 yr. private COA 6000 25000 45000 EFC 11000 Need 14000 34000

Federal Programs Pell Grant SEOG Grant Federal Work Study Stafford Direct Student Loans TEACH Grant (loan) Parent PLUS loan Most programs for half-time/full-time students Maximum grant for 17-18 = $5920 SEOG allocation limits funding to neediest students FWS – allocation pay rate set by college; minimum wage; 6-10 hours per week Stafford – sub and unsub freshmen = $5500 per year interest rate this year is 4.45% with 1.069 origination fee TEACH = grant reverts to loan if do not fulfill requirements PLUS – 7.0% interest rate/ 4.264% orig. fee up to COA minus all other aid parent is the borrower - cannot borrow if no valid SSN

State of NJ Programs NJ Tuition Aid Grant (TAG) Educational Opportunity Fund (EOF) NJ Stars and Stars II Governor's Urban Scholarship (GUS) NJ CLASS In most cases, must be full-time student attending NJ college TAG awards based on type of school/which school Awards for this year $528 – 12,686 can be part-time at CC (6-11 credits) EOF – educationally and economically disadvantaged students awards $200 to $2500 based on type of institution NJStars – top 15% of high school class end of jr. or sr. year maintain GPA 3.0 in college tuition only NJStarsII – must have received NJSTARS, received AA degree with 3,25 GPA up to $2500 GUS – based on high school GPA and rank in class award = $1000 NJCLASS – private loan for NJ resident or attending NJ college interest rates from 4.48 – 8.36 based on credit; 3% orig. fee

Institutional Programs Need-based Merit based Skills based Availability varies greatly based on type and size of school, foundation funds, etc.

Other Resources Institutional payment plans Private loans 529 plans Vary from school to school Private loans Various lenders Interest rates and repayment options vary Use elmselect.com to compare 529 plans

Applications

Applications

FAFSA – Get a Log-in first Fsaid.ed.gov Log-in and password Use every year Use to log into FAFSA, Studentloans.gov, etc. Student and parent each need their own use different email addresses Ensure maximum consideration for federal, state and institutional aid Apply for priority deadlines Earliest one Complete all questions Collects family's personal and financial information File electronically

FAFSA – Apply Ensure maximum consideration for federal, state and institutional aid Apply for priority deadlines Earliest one Complete all questions Collects family's personal and financial information File electronically

Don’t Forget the State Aid Complete FAFSA by NJ State deadline Given option to link directly to NJ HESAA portal for additional questions If miss this part, can go directly to HESAA website Wait at least a week for HESAA to get the FAFSA

NJFAMS at Hesaa.org HESAA NJFAMS portal https://njfams.hesaa.org Student sets up userid and password to access the portal Receive notification about State verification requirements Check award status online

NJ Alternative FA Application The NJ Alternative Financial Aid Application allows undocumented students enrolled in eligible NJ colleges to apply for state grants (TAG, EOF, Stars, etc.) If you are NOT a US citizen or eligible noncitizen and meet the following criteria: Attended a NJ high school for at least three years Graduated from a NJ high school or received the equivalent of a high school diploma Registered for Selective Service (if male) Able to file an affidavit at the college stating you will file an application to legalize your immigration status as soon as you are eligible to do so

General Timeline October – March December – April June-August Complete college search Apply for Admissions Complete the FAFSA Complete the CSS Profile – if applicable December – April Acceptance notices sent Award letters sent June-August Fall semester term bills sent In here, typically once student has decided which school to attend, complete any requirements at the college and/or HESAA

Questions?