Applying for Financial Aid Academic Year Financial Aid Services Telephone:

What you will learn: What financial aid is Sources of financial aid When and how to apply How to pay the bill

Helpful Advice Visit college web sites for application requirements and deadline dates Colleges are required to have a net price calculator by August Some colleges already have them on their web sites.

More Advice

Better Business Bureau

Studentaid.ed.gov

Funding a College Education Who Are the Players? Family Federal & State Governments Outside agencie s The college

How Much Financial Aid Will Be Offered? Dependent on a family’s ability to pay Dependent on the funding available from the federal and state governments and the college. Were the financial aid applications and supporting documentation submitted by the deadline date

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

Comparison of Need by Cost ( Assumes full-time enrollment ) 4 Year Private4 Year Public2 Year Public Cost of Education$50,000$20,000$ 7,000 Expected Family Contribution (EFC)$10,000 Need$40,000$10,000 0

Meeting the Full Need and Gapping CollegeAB Cost of Education$50,000 Expected Family Contribution (EFC) $ 10,000 Need$40,000 Aid Awarded$40,000$30,000 Unmet Need 0 $10,000

Cost of Attendance  Tuition and Fees  Room and Board  Books and Supplies  Transportation  Study Away Expenses  Disability Expenses  Miscellaneous and Personal Expenses (purchase of a computer)

Family Contribution Components  Parent(s)’ 2010 income  Including untaxed income such as: child support received, annual contributions made to a retirement plan  Student’s 2010 income  Value of parent’s assets  Exclude principal value of retirement accounts  Include cash, college savings plans, other savings, trusts, bonds, money market, CD’s.  Value of student’s assets  Include cash, savings, trusts, bonds, money market, CD’s.  Number of household members  Number of dependents attending college at least half-time

Eligibility Assessed Using Federal Methodology  Based on information reported on the FAFSA (Free Application for Federal Student Aid, )  Formula determined by Congress that is used to determine eligibility for federal and most state funds  Home equity excluded  No information from the non-custodial parent  Custodial parent and stepparent incomes are included  Parent contribution divided by the # of dependents attending college at least half-time

Eligibility Assessed Using Institutional Methodology  Based on information provided on the CSS Profile or a custom institutional application  Used by schools to award their own funds  Home equity added in  Information from the non-custodial parent is required  Tax losses may be added back  Depreciation associated with a business or investment property may be added back  Parent contribution might not be divided equally and no allowance for graduate school  Minimum student contribution

Remember!  Grants/Scholarshhips do not have to be repaid (unless a student withdraws during a term). Grants are typically awarded based on need and scholarships are typically awarded based on merit or athletic ability.  Student loans must be repaid  Federal Work Study provides income, which does not have to be repaid, from a part-time job

Sources of Need Based Aid Federal Grants ( Funding for has not yet been determined)  Federal Pell Grant – $5,550  Federal SEOG Grant – up to $4,000  Federal TEACH Grant – up to $4,000 Studentaid.ed.gov for detailed information about these programs.

Sources of Need Based Aid – Federal Loans and Student Employment studentaid.ed.gov  Federal Perkin Loans – up to $5,500  Interest rate is 5% fixed  Program may change for next year  Federal Direct Stafford Loan –  1 st year = up to $5,500 ($3,500 subsidized)  2 nd year = up to $6,500 ($4,500 subsidized)  3 rd -5 th year = up to $7,500 ($5,500 subsidized)  Interest rate is 4.90%  Fees = 1% with an up front rebate of.5%  Federal Work Study -  no limit but average range is $1,200 to $2,000  Students work approximately 8 – 10 hours per week  Most paychecks are issued via direct deposit

Sources of Need Based State Aid ctdhe.org  State grants for CT residents  Connecticut Capitol Scholars,  $500 -$3,000  Deadline is February 15!!!  Connecticut Independent College Grant – award amount determined by College  CT Aid for Public College Student Grant – award amount determined by College  Can export Capitol Scholars Grant to these states: MA, RI, VT, NH, ME, PA-

Sources of Institutional Grants and Outside Resources  Institutional Grants/Scholarships are provided by the college either from tuition revenue and/or endowed funds and annual gifts.  Outside Resources –  Employee Tuition Benefit  National Merit, Rotary, Garden Club, etc.  High school guidance office 

Student Eligibility Requirements U.S. Citizen or eligible non-citizen a permanent U.S. resident with a Permanent Resident Card (I-551); – a conditional permanent resident (I-551C); – the holder of an Arrival-Departure Record (I-94) from the Department of Homeland Security showing any one of the following designations: “Refugee,” “Asylum Granted,” “Parolee” (I-94 confirms paroled for a minimum of one year and status has not expired) or “Cuban-Haitian Entrant.”

Student Eligibility Requirements, con’t. If male and age 18 must register for Selective Service; Have a valid social security number; Must be enrolled as a regular student in an eligible degree or certificate program; Must have a high school diploma or an equivalent; While enrolled in college, must make satisfactory academic progress. Must have resolved any drug conviction issue.

Forms Required CollegeABC FAFSA XXX CSS Profile XX College Form XX Tax Returns & W2 Statements X Non-Custodial Parent’s Form XX Business Supplement XX Due Date 03/1502/1502/01

FAFSA on the Web Homepage

Free Application for Federal Student Aid, FAFSA Can’t file prior to 01/01/2011 Required by all schools Used to determine eligibility for federal/state need based aid Student and one parent should apply for a pin # now to sign the FAFSA electronically

Helpful Tips When Completing the FAFSA  Print out the FAFSA on the Web Worksheet  Have your 2010 federal tax return and W2 statements in front of you or prepare a draft 2010 federal tax return.  You can also use your 2009 federal tax return if income will be similar to  It is okay to estimate!

Helpful Tips When Completing the FAFSA Parents and students must provide their SSNs – if a parent does not have a SSN, enter zeros. When reporting assets, report the value as of the date the FAFSA is completed minus the debt owed.  Investment property  Stocks, bonds, money market funds  CD’s, mutual funds, stock options, trusts  Coverdell savings accounts, college savings plans  Business/investment farm value

Helpful Tips When Completing the FAFSA Assets not to report: – Value of your home – Retirement plans (pension funds, annuities, non- education IRAS, Keogh plans) Must also report as income: – Annual contributions to a retirement plan – Housing allowance paid to members of the military, clergy and others – Child support

The Student Eligibility page collects basic Title IV eligibility information, such as citizenship and drug convictions.

The status message on this page indicates early Title IV eligibility for the student based on their valid Social Security Number, citizenship status, and drug convictions.

If you perform an action that is successful, the system will provide you with a GREEN box and a success message.

What is the Federal Definition of a Parent? If your parents are divorced or separated, answer the 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.

What is the Federal Definition of a Parent? If your parent has remarried, your must include information about the stepparent. If your parent is widowed or single, answer the questions about that parent. The following people are not your parents unless they have adopted you: grandparents, foster parents, legal guardians, older brothers or sisters, and uncles or aunts.

What if parent information is not available? – 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 – Student has left home due to an abusive situation. Must gather third party documentation to verify your living situation: attorney, court officer, social worker Submit that third party documentation to the college that you will most likely attend.

When the parent selects a check box, the full FAFSA question will appear with a text box to provide a dollar amount.

The signature process, for the student and parent, is contained within one page. If the student would like to review their information before signing their FAFSA, they will need to click on the “View or Print your FAFSA information” link at the top of the page.

If the student selects the “View or Print your FAFSA information” link at the top of the Sign & Submit page, their information will display in this format.

The confirmation number will contain the student’s randomly generated identification number.

FAFSA Follow-Up

Frequent FAFSA Errors Social Security Numbers Divorced/remarried parental information Income earned by parents/stepparents Untaxed income U.S. income taxes paid Household size Number of household members in college Real estate and investment net worth

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CSS/Financial Aid Profile   Not required by all schools  $25 for the initial application and $16 for each additional college  Non-Custodial Parent’s Form = $25  Tool used to determine eligibility for need-based institutional grants.

CSS Profile Tips In addition to the assets reported on the FAFSA, you will be required to report: – Value of your home, purchase price, purchase date and current debt – Value of your retirement accounts (but not for all schools).

Tuition & Fees $40,000 Room & Board 8,000 Books & Supplies 1,000Parent Contribution $ 2,250 Miscellaneous 500Student Contribution $ 1,750 Transportation 500Family Contribution $ 4,000 Total $50,000Need $46,000 Financial Aid Award (Cost less Resources) Federal Pell Grant $ 2,500 Federal Supplemental Educational Opp. Grant $ 2,500 Connecticut Independent College Grant $ 5,000 Connecticut Capitol Scholars Program $ 3,000 Federal Perkins Loan $ 1,000 Federal Stafford Loan $ 3,500 Federal Work Study $ 1,300 College Grant $27,200 Total Award $46,000 Sample Financial Aid Award – Full Need Met

How Aid is Applied to the Bill  Tuition & Fees = $40,000  Room & Board = 8,000 Total Charges = $48,000 Less aid:  Grants$40,200  Loans$ 4,500 Total Aid Applied to the Bill $44,700 Balance Due $ 3,300 Usually paid in two installments: $1,650 August 1 $1,650 January 1 Federal Work Study is not applied to the bill.

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 family members in college treated?  Was home equity included in the analysis? Request procedures for an “Appeal” or “Review”

How do I pay the bill?  Prepare monthly income/expense flow  Put surplus monthly income to work for you with a payment plan. Each college arranges with a third party provider to participate in one or more plans. Here are some samples:    Use savings but keep enough to cover surprises!  Investigate home equity loan, or other private parent loans. Factors to consider: age, job market, other children to educate, income/debt ratio, credit rating

Federal PLUS Loan  Borrowers are parents of dependent undergraduate students  Annual loan limit: cost of attendance minus other aid  Fixed interest rate (Direct Loan) – 7.9%  Loan fees - up to 4%  Repayment begins 60 days after the loan is fully disbursed.  Can defer payments (interest will accrue) while student is enrolled at least half-time.

Aid Award in Subsequent Years  Loan amounts increase as the student advances to the next grade level  If parent income/assets increase, the parent contribution will most likely increase.  If student assets decrease, the student contribution will decrease  If the number of dependents enrolled in college changes, the parent contribution will change.  College institutional funding levels change from year to year

Questions to Ask What forms must be submitted and by what date? Does the school meet the student’s full demonstrated need? What was the average loan balance for the last graduating class? What happens to the aid offered if the student receives an outside scholarship?How does an aid award change over 4 years?

Thank you for your attention. What questions can I answer for you?