Understanding the Financial Aid Process

College Funding Services 110 Midvale Terrace Westfield, NJ Ineedfinancialaid.com College Funding Services 110 Midvale Terrace Westfield, NJ Ineedfinancialaid.com

How Do They Determine If I’m Eligible? COA – FC = NEED COA stands for Cost of Attendance (Includes tuition, books, room/board, etc.) FC stands for Family Contribution (Based on parents and students income, assets, ages, number of people in school) Need is how much aid the family is eligible for. COA – FC = NEED COA stands for Cost of Attendance (Includes tuition, books, room/board, etc.) FC stands for Family Contribution (Based on parents and students income, assets, ages, number of people in school) Need is how much aid the family is eligible for.

What can we do? Private Scholarships? * Guidance Department * * * College’s Scholarships Private Scholarships? * Guidance Department * * * College’s Scholarships

What should we know about our Family Contribution? Asset Protection Allowance What is considered an asset? Parental Assets vs. Student Assets Is debt considered? Is our home considered an asset - -Calculators -Federal Housing Index (under “needs analysis”) Asset Protection Allowance What is considered an asset? Parental Assets vs. Student Assets Is debt considered? Is our home considered an asset - -Calculators -Federal Housing Index (under “needs analysis”)

What should we know about our Family Contribution? Parent Income vs. Student Income Student Income allowance Self-employed families Parent Income vs. Student Income Student Income allowance Self-employed families

Borrowing Options Student Loans vs. Parental Loans Subsidized vs. Unsubsidized Loans PLUS Loans Understanding life of loan Student Loans vs. Parental Loans Subsidized vs. Unsubsidized Loans PLUS Loans Understanding life of loan

Financial Aid Myths vs. reality: Income too High Grades too Low Own a home Aid is only for special groups Myths vs. reality: Income too High Grades too Low Own a home Aid is only for special groups

Sources of Financial Aid FEDERAL GOVERNMENT Pell Grants SEOG Grants College Work/Study Subsidized and Unsubsidized Stafford Loans Perkins Loans PLUS and SLS Loans FEDERAL GOVERNMENT Pell Grants SEOG Grants College Work/Study Subsidized and Unsubsidized Stafford Loans Perkins Loans PLUS and SLS Loans

Sources of Financial Aid Federal Government State Government Special programs for in-state residents. Teachers, health professionals, minorities, etc. Contact Massachusetts Education Financing Authority (MEFA) for more information. Federal Government State Government Special programs for in-state residents. Teachers, health professionals, minorities, etc. Contact Massachusetts Education Financing Authority (MEFA) for more information.

Sources of Financial Aid Federal Government State Government Colleges and Universities Private universities have endowment funds, outside of federal and state funds. Create competition Give preferential packaging to students who are in top 25% of applicants. Federal Government State Government Colleges and Universities Private universities have endowment funds, outside of federal and state funds. Create competition Give preferential packaging to students who are in top 25% of applicants.

How Do You Apply? The FAFSA (Free Application for Federal Student Aid) EVERYONE must fill out this form to get aid You cannot apply for Federal Loans if you do not fill one out The FAFSA (Free Application for Federal Student Aid) EVERYONE must fill out this form to get aid You cannot apply for Federal Loans if you do not fill one out

FAFSA Estimate 2014 taxes, based on 2013 tax returns Federal Government interested in all aspects of tax return Details of all assets that day Audit/verification process similar to IRS Estimate 2014 taxes, based on 2013 tax returns Federal Government interested in all aspects of tax return Details of all assets that day Audit/verification process similar to IRS

CSS/PROFILE Most private schools require this form Much more invasive and complex Home equity treated as liquid asset Section Q $25.00 for 1 st school, $16.00 for each thereafter Most private schools require this form Much more invasive and complex Home equity treated as liquid asset Section Q $25.00 for 1 st school, $16.00 for each thereafter

How Do You Apply For Aid? The FAFSA. The CSS/Profile The school’s own institutional forms. Some schools require their own additional forms. They should be consistent with other forms Usually will ask similar questions to the other two forms. The FAFSA. The CSS/Profile The school’s own institutional forms. Some schools require their own additional forms. They should be consistent with other forms Usually will ask similar questions to the other two forms.

How Do You Apply For Aid? FAFSA CSS/PROFILE College Institutional Forms ADDITONAL FORMS: Business/Farm Supplement Divorced/Separated Situations? FAFSA CSS/PROFILE College Institutional Forms ADDITONAL FORMS: Business/Farm Supplement Divorced/Separated Situations?

Which Colleges Give You The Best Shot At Getting Money?

CASE STUDIES : Amherst College:UMASS-Amherst: Cost - $60,000Cost - $23,000EFC - $15,000 Need - $45,000Need - $8,000 School A:School B: Meets 100% NeedMeets 60% Need Gift Aid - 100%Gift Aid - 50% Self Help – 0%Self Help - 50% What you actually pay at each school: School A:School B: Total EFC = $15,000Original EFC = $15,000 Total Gift = $45,000+ Unmet Need = $3,000 Total Self = $0 Total EFC = $18,000 Total Gift = $2,500 Total Self = $2,500 Amherst College:UMASS-Amherst: Cost - $60,000Cost - $23,000EFC - $15,000 Need - $45,000Need - $8,000 School A:School B: Meets 100% NeedMeets 60% Need Gift Aid - 100%Gift Aid - 50% Self Help – 0%Self Help - 50% What you actually pay at each school: School A:School B: Total EFC = $15,000Original EFC = $15,000 Total Gift = $45,000+ Unmet Need = $3,000 Total Self = $0 Total EFC = $18,000 Total Gift = $2,500 Total Self = $2,500

How To Appeal Your Financial Aid Award

How To Appeal For The Best Possible Package 5 Point Plan 1. Bring color/background to story 2. Ask for specific amount of additional aid 3. Show awards offered by other colleges 4. Challenge expenses not considered on taxes 5. Be persistent 5 Point Plan 1. Bring color/background to story 2. Ask for specific amount of additional aid 3. Show awards offered by other colleges 4. Challenge expenses not considered on taxes 5. Be persistent

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