The Changing Landscape of Financial Aid

2014 SUNY College Fairs OpInform 2014 TOPICS 1.What’s new in financial aid 2.How is financial need determined? 3.Sources and types of financial aid 4.Reviewing award letters 5.SUNY SmartTrack

2014 SUNY College Fairs OpInform 2014 Federal Changes for the Coming Year  Interest Rates  Defense of Marriage Act/Parental Information  150% Subsidized Loan Limit  College Choice Tools

2014 SUNY College Fairs OpInform 2014 Federal Changes for the Coming Year  Annual fixed rates based on 10 Year T-Bill plus add-on Subsidized and unsubsidized loans (undergraduates): Add-on of 2.05% with cap of 8.25% PLUS loans (parent and grad/professional): Add-on of 4.6% with cap of 10.5%

2014 SUNY College Fairs OpInform 2014 Federal Changes for the Coming Year  FAFSA must include income of both the student’s legal parents (biological or adoptive) if the parents are living together, regardless of the parents’ marital status or genders  Mother and Father labels will change to Parent 1 and Parent 2. Help text will be significantly enhanced to provide guidance for parents who file separate tax returns

2014 SUNY College Fairs OpInform 2014 Federal Changes for the Coming Year  Limit on how many years a “first-time borrower” may receive subsidized loans  Students’ maximum time to receive subsidized loans is established based on the length of the program in which the student is enrolled - cannot exceed 150%  For first-time borrowers after July 1, 2013

2014 SUNY College Fairs OpInform 2014 Federal Changes for the Coming Year  College Affordability and Transparency Center College Navigator College and Affordability transparency list State spending list  Shopping sheet

2014 SUNY College Fairs OpInform 2014

2014 SUNY College Fairs OpInform 2014 New York State Updates for the Coming Year  TAP increase to $5,165  TAP max for students in foster care

2014 SUNY College Fairs OpInform 2014 How Much Does College Cost? Cost of Attendance (COA) Includes: 1.Tuition and fees 2.Room and board 3.Books and supplies 4.Transportation 5.Miscellaneous personal expenses

2014 SUNY College Fairs OpInform 2014 How Much Does SUNY Cost? Baccalaureate Degree Program NY State Resident Living On-Campus Source: SUNY Office of Student Financial Aid, System Administration Tuition and fees: $7,582 ($6,170 & $1,412) Room and board: 12,020 Books and supplies: 1,270 Transportation: 1,020 Personal expenses: 1,450 Total Budget: $23,342

2014 SUNY College Fairs OpInform 2014 How Much Does SUNY Cost? Associate Degree Program NY State Resident Living On-Campus Source: SUNY Office of Student Financial Aid, System Administration Tuition and fees: $4,646 ($4,076 & $570) Room and board: 9,730 Books and supplies: 1,320 Transportation: 1,280 Personal expenses: 1,110 Total Budget: $18,086

2014 SUNY College Fairs OpInform 2014 How is Financial Aid Determined? Estimated Family Contribution (EFC) is determined by:  Parents’ income and assets - primary home value excluded  Student’s income and assets  Size of family  Age of parents  Number of children in college COA minus EFC = Need

2014 SUNY College Fairs OpInform 2014 Sources and Types of Financial Aid

2014 SUNY College Fairs OpInform 2014 Sources and Types of Financial Aid: Scholarships  Private scholarship search  At your college of interest  Free internet scholarship searches  Local library resources  Local businesses and civic organizations (including professional associations) related to student’s field of interest  Parents’ employers/unions

2014 SUNY College Fairs OpInform 2014 Sources and Types of Financial Aid: Major Grant Programs PELL Grant  Must have EFC between $0 - $5,157  Maximum annual award $5,730 NYS TAP Grant  Based on NYS net taxable income  Maximum annual award $5,165

2014 SUNY College Fairs OpInform 2014 Sources and Types of Financial Aid: Federal Work Study  Based on financial need  On- or off-campus employment  Usually 12 to 15 hours per week

2014 SUNY College Fairs OpInform 2014 Sources and Types of Financial Aid: William D. Ford Direct Loans Subsidized  4.66%  Capped at 8.25%  Based on need  Federal government pays interest while student is in school  $3,500 for freshmen Unsubsidized  4.66%  Capped at 8.25%  Not based on need  Student is responsible for interest while in school  Loan cannot exceed cost of education minus financial aid Combined total of $5,500 for freshmen

2014 SUNY College Fairs OpInform 2014 Sources and Types of Financial Aid: Perkins Loan  Need-based  Low interest rate (5%)  Student pays no interest while in school  Maximum $5,500 per year  May be forgiven

2014 SUNY College Fairs OpInform 2014 Sources and Types of Financial Aid: Parent Loans for Undergraduate Students (PLUS)  For parents of dependent students  Borrow up to entire cost of college less financial aid  No adverse credit (parent must pass credit check)  Interest rate 7.21%  Capped at 10.5% Time Payment Plans  May vary…typically, families spread the direct costs over the semester or year

2014 SUNY College Fairs OpInform 2014 SUNY State-Operated Campuses TEACH Grant  Up to $4,000 per year  For students who intend to teach: a high-need field students of low-income  Four-year service contract  More information:

2014 SUNY College Fairs OpInform 2014 NYS STEM Scholarship  TAP introduced the STEM scholarship  Students will get their tuition for free at CUNY or SUNY if they graduate in the top 10% of their class  It is not income dependent  There is a 5-year service commitment

2014 SUNY College Fairs OpInform 2014

2014 SUNY College Fairs OpInform 2014 An innovative and transparent system-wide approach to promote awareness and understanding regarding college costs, college financing options and responsible student loan borrowing. What is SUNY Smart Track?

2014 SUNY College Fairs OpInform 2014 SUNY Smart Track  SUNY standard award letter  System-wide financial literary  Student engagement/communication  Delinquency/default resolution 

2014 SUNY College Fairs OpInform 2014 Smart Track Award Letter

2014 SUNY College Fairs OpInform 2014 Smart Track Award Letter Estimated Cost of Attendance Section (Direct vs. Indirect Costs) Transportation

2014 SUNY College Fairs OpInform 2014 Smart Track Award Letter Grants/Gift Aid Section

2014 SUNY College Fairs OpInform 2014 Estimated Remaining Costs Section Smart Track Award Letter

2014 SUNY College Fairs OpInform 2014 Options To Pay Net Cost Sections Smart Track Award Letter

2014 SUNY College Fairs OpInform 2014 Smart Track Award Letter College Overview Section  Graduation Rate  Loan Default Rate  Median Borrowing  Repaying Loan Information  School Contact Information

2014 SUNY College Fairs OpInform 2014 Customized College Information Section Smart Track Award Letter

2014 SUNY College Fairs OpInform 2014 How important is Financial Literacy for Student/Life Success?  SUNY Smart Track Financial Literacy is a value-added service provided to all SUNY students as part of their SUNY experience  Keeping students engaged promotes retention and increases completion rates  Students who have financial literacy are more likely to become successful student loan repayers – regardless of the amount borrowed

2014 SUNY College Fairs OpInform 2014 SUNY Smart Track Financial Literacy Website

2014 SUNY College Fairs OpInform 2014 Student Engagement/Communication  All student loan borrowers receive communications  Engage students in campus activities and services to promote retention  Get to know financial aid office staff – call or make a personal appointment to review your loan history and repayment information

2014 SUNY College Fairs OpInform 2014 All SUNY Campuses are linked to the SUNY Smart Track Financial Literacy Website

2014 SUNY College Fairs OpInform 2014 Questions?