Demystifying Financial Aid

“How can I afford to send my child to an independent school?”

Financial Aid in Independent Schools: the Basics  Primarily need-based funds  Funds come from the individual schools  Provides access to independent schools for qualified students from diverse economic backgrounds & allows schools to build the best student body they can

How to Apply  Ask the school! All are slightly different.  Tell the school early that you want to apply for financial aid.  Deadlines are crucial.

Your Financial Profile Income (this year and next year) Income (this year and next year) Expenses (this year and next year) Expenses (this year and next year) Assets Assets Debts Debts

School and Student Service for Financial Aid (SSS)  Owned and directed by the National Association for Independent Schools  “Princeton” forms  Helps schools determine need of families.

PFS (or other application form) tax return 4506 form

Student Information

Parent/Guardian Information & School Selection

Income and Expenses

Family Assets and Debts  Assesses the “financial strength” of the family

Family Educational Expenses

Other Expenses and Additional Information

DO NOT LEAVE BLANK!

What’s next?

Your “EFC” Estimated Estimated Family Contribution

How does SSS determine your Estimated Family Contribution?  Discretionary Income  Your Estimated Family Contribution is usually 22-44% of your Discretionary Income.

Example: Family of 4, Total Gross Income $100,000 (and Net Worth of $100,000) Income$100,000 Income$100,000 + Small % of Net Worth $ 1,500 - Tax, Misc. Allowance$ 35,000 - Moderate Standard of Living$ 28,000 of Living$ 28,000 Discretionary Income$ 38,500 x 35% Estimated Family Contribution$ 13,500 Contribution$ 13,500

Not the “Final Say”  Once Admissions knows who they want to accept, Financial Aid looks at the EFC but often makes adjustments.  Schools make adjustments based on their own policies and budgets: Some make adjustments for geographic differences in cost of living Some make adjustments for geographic differences in cost of living Some may not count your home as an asset Some may not count your home as an asset Some schools cannot afford to meet full need for all families Some schools cannot afford to meet full need for all families

Schools notify families  Usually schools will inform families of any financial aid offered with an offer of admission  Grants offered will not necessarily be the same from every school (due to differing policies and budgets)

What if it’s not enough? Things to think about… Loans Loans Monthly payment plans Monthly payment plans Look creatively at your earning potential, spending priorities, or asset management Look creatively at your earning potential, spending priorities, or asset management Call the Financial Aid Office at the school and explain the problem and ask for help Call the Financial Aid Office at the school and explain the problem and ask for help

Common Questions & Concerns

“Will I qualify?”  Depends on many factors: income, assets, debts, number of children, parents’ age…  Tuition is costly; families from a wide range of income levels can qualify.

“So, should we apply?”  If you think you need it, you should apply.  Plan ahead!  You may not be able to apply later.

“Will applying for financial aid affect my child’s chances for admission?”  Most schools separate their admissions and financial aid processes so that financial need does not prejudice your application. But, budgets are limited.

“What about ‘extras’?”  Questions to ask schools: What is included in the tuition rate? What is included in the tuition rate? Are there other fees such as lunch, books, PTA dues, or uniform fees? Are there other fees such as lunch, books, PTA dues, or uniform fees? Is there supplemental financial assistance available for trips, or other incidental expenses? Is there supplemental financial assistance available for trips, or other incidental expenses?

Top 5 to Remember 1. If you think you need it, apply. 2. Don’t miss deadlines! 3. Ask questions if something is not clear. 4. Be honest, and as accurate as possible. 5. Provide details. (Do not leave item #32 on the PFS blank!)