Financing a College Education Steve Joyce Bowdoin College Director of Student Aid, Emeritus

TOPICS FOR DISCUSSION The College List Estimating Aid and Family Share Filing for Financial Aid

COLLEGE ADMISSION APPLICATIONS…

COLLEGE LIST… If cost will be a factor: Do your homework… Net Price Calculator College websites. Be sure the application list includes … 2 or more “admits”, A college that offers merit scholarships, or A lower cost, public or Canadian college/university. Early Decision??

APPLYING FOR FINANCIAL AID…

WHAT IS FINANCIAL AID? Grants/Scholarships Loans Work Study Money that does not have to be repaid Loans Money that must be repaid Work Study Money earned by the student

FAFSA on the Web Web site: www.fafsa.gov 2019-2020 FAFSA available on or after October 1, 2018 Apply annually

FAFSA Highlights… It’s FREE!! The FAFAS can be filed beginning October 1 each year. Filing deadlines are set by the college. Deadline for ME state grants is May 1. The FAFSA collects “prior-prior year data.” 2018 tax information will be used for 2019-20 school year. IRS imports will improve accuracy and reduce verification issues, but data will not be visible on the FAFSA. Reporting changes to family circumstances and declines in income directly to colleges will be important.

FAFSA Highlights… Student and a parent each sign the FAFSA with a unique FAS ID Family income below $26,000 will qualify for an automatic zero EFC. Helpful Resources Handout Complete instructions and definitions. FAFSA worksheet Practice FAFSA (demo) Net Price Calculator

Click here to start a new FAFSA FAFSA Tips After beginning a FAFSA, you will click here for the remainder of the year Click here to start a new FAFSA

CREATE AN ELECTRONIC SIGNATURE: “FSAID” § Go to: fsaid.ed.gov As with the retired PIN, EVERY STUDENT and ONE PARENT of a dependent student will need an FSA ID to sign the FAFSA electronically. Defaults to “Create An FSA ID” Click on “Manage

FSAID Web sites: www.fsaid.ed.gov or www.fafsa.gov FEDERAL STUDENT AID I.D. (FSAID) Web sites: www.fsaid.ed.gov or www.fafsa.gov Create an FSAID for student and one parent. The FSAID is available immediately for FAFSA submission; in 1-3 days for edits or loan applications. Requires: E-mail address, user name and password plus 5 security questions. May be used throughout aid process. Can get FSAID anytime before or at filing.

LOG IN After beginning a FAFSA, Click here you will to start a for the remainder of the year Click here to start a new FAFSA

SELECT THE CORRECT FAFSA

Create a Save Key

Completing the FAFSA (Free Application for Federal Student Aid) 1. Deadlines File early and adhere to the college filing deadlines. At least one college must be listed to receive FAFSA data. Use 2017 tax figures. 2. Correct Name, Social Security #, and Date of Birth are vital for federal matches.

Completing the FAFSA (Free Application for Federal Student Aid) 3. Content: Student: Dependent or Independent Parents Marital Status: as of filing date Married. Living Together (Biological/Adoptive Parent). Separated/Divorced: Student residence, $$ 2017 Taxable Income: (Parents… adoptive/biological and Student): AGI, wages, interest, dividends. Data Import from IRS Untaxed Income: Contributions to retirement accounts Child support Gifts (529 contributions, from grandparents)

Completing the FAFSA (Free Application for Federal Student Aid) 3. Content: Assets: Cash, Investments, Property, Business, but… - Primary Residence/Farm DOES NOT COUNT. - Business Equity (<100 employees) DOES NOT COUNT. - “Recognized” retirement assets DO NOT COUNT. - You may have the option to omit all assets.

SELECT COLLEGES

IRS DATA RETRIEVAL 2017: Parent and Student

SIGN AND SUBMIT- STUDENT

SIGN WITH FSAID AND SUBMIT- PARENT

SUBMIT NOW

CONFIRMATION AND SPECIAL CIRCUMSTANCES

Completing the CSS PROFILE

COMPLETING THE CSS PROFILE (Used by some colleges for institutional aid) 1. Apply On-Line Registration: Begins October 1 Log on to www.collegeboard.com Click on CSS/PROFILE “Paying for College” Enter a user name and password Select Colleges to receive your data Pay the fee with a credit card. $9 plus $16/college Complete the PROFILE Application (Fee waivers are available for low income families) Submit the Application at least one week prior to the college’s published deadline.

Completing the CSS Profile 2. Unlike the FAFSA… Profile features Net worth includes: Primary Residence Business Equity Supplemental data required for: Noncustodial parents Business/Farm owners Space for narrative provided File once. Edits go through college aid offices.

THE FAMILY SHARE OR ESTIMATED FAMILY CONTRIBUTION (EFC)

Family Share: THE BIG 5 !! Parent Income: 2017Taxed and Untaxed Parent Assets: Current Cash, Savings, Investments, Real estate equity, Business equity, Trusts, 529s Student Assets: current savings, investments, business Family Size current. Number in Undergraduate College in 2018-19

PACKAGING FINANCIAL AID

The Award Barrel: Need-Based Aid Remember: COA - EFC = Need $25,000 - $8,000 = $17,000 Cost of Attendance = $25,000 Unmet Need = $1,000 Gift Aid = $11,000 Grant Work = $1,500 Work Study Loan = $3,500 Stafford Loan EFC = $8,000

A WORD OF CAUTION!!! Beware of solicitations for programs that “guarantee” to find financial aid and scholarships for a FEE! Beware of solicitations for FREE “financial aid interviews.” The Finance Authority of Maine and the Maine Association of Student Financial Aid Administrators (MASFAA) provide free counseling and assistance to students and families completing financial aid forms.

REMEMBER… 1. If college cost will be an important factor in deciding where to attend, be sure the student includes some lower cost schools on the list. 2. Apply for aid if the student will need grants, scholarships, loans or work study and apply on time. 3. Use a financial aid on-line calculator early in the process to estimate the aid and family cost for college. 4. Do not hesitate to call aid officers at colleges to which the student has been admitted to discuss the aid offer and resources  available to help pay the bill. 5. Before enrolling, ask how aid may change over the years and how much debt students may carry at graduation. Call or e-mail, if I can be helpful. sjoyce@bowdoin.edu