Financial Aid & The College Decision Process Nashwa Bolling Associate Director of Budget, Research & Analysis Financial Aid D

The College Decision Process Financial fit & the value of obtaining a degree Be prepared Terms & Definitions Applications Types of Aid Next Steps

Paying for College Financial Aid Award Letter (Aid Package) Multi-year commitment Rising Costs Family Discussions Net Price Calculators

Is College Worth the Cost? Adam Looney and Michael Greenstone, the Hamilton Project

Be Prepared Welcome to the Financial Aid, I need the following information: Salary Investments Cash, Savings, Checking balance Home Value Taxes Paid Tax Transcript from the IRS

Be Prepared / Organization Colleges have varying deadlines Priority deadlines Ask what it means? Financial Aid Applications Scholarship Applications Terms Start developing a glossary www.collegeincolorado.org (Financial Aid Planning)

Admission Office Determines eligibility for merit based aid Evaluate GPA ACT and/or SAT Scores Extracurricular Activities Leadership Community Service Teacher Recommendations

Financial Aid Office Establishes the cost of attendance (Sticker Price) Evaluates family’s ability to pay by determining an expected family contribution (EFC) Offers financial aid based on the cost of attendance and the expected family contribution Distributes resources in an equitable manner Counsels families on financial issues

Determining Costs and Aid Cost of Attendance Direct Costs Tuition and Fees Room & Board Indirect Costs Books & Supplies Transportation Personal Expenses

Determining Costs and Aid Financial Need Cost of Attendance - Expected Family Contribution Need varies based on cost Most colleges are unable to meet 100% of financial need with scholarship and grant aid

Financial Aid Applications FAFSA – Free Application for Federal Student Aid Required to determine eligibility for many federal, state and institutional aid programs which can include scholarships, grants, work study and student loans www.fafsa.ed.gov

Expected Family Contribution FAFSA Income Taxed and Untaxed Allowances for Basic Living Expenses, Social Security and income taxes Assets Cash, Savings, Checking, Stocks, 529 plans, Business Net Worth Home value is NOT included Asset Protection and Education Savings Equation: Adjusted Gross Income – Allowances + Assets = EFC

Financial Aid Applications CSS PROFILE – College Board Many private universities and scholarship providers require the CSS PROFILE application to determine financial eligibility for institutional aid programs University of Denver, Daniels Fund, Colorado College (400 nationwide) $25 Application Fee Comprehensive look at family wealth Includes home equity Non-custodial parent information http://profileonline.collegeboard.com Why PROFILE: - better measure of family wealth - higher income protection than FAFSA - more comprehensive examination of wealth that includes home equity, assets in siblings name, contribution from both parents even if divorced.

Financial Aid Applications Documentation needed to complete applications (Parent and Student) Federal Income Tax Returns W-2 Forms Driver’s License Social Security Numbers Savings and Checking Account Information

Financial Aid Applications Additional Documentation needed to complete CSS PROFILE application (Parent and Student) Records of untaxed income & benefits Current Mortgage Information Records of stocks, bonds, trusts, and other investments

Financial Aid Applications Tips for Completing Applications Meet Deadlines You can estimate information on both the FAFSA and CSS PROFILE applications Reapply every year Ensure Social Security Number is correct Send applications to the correct institutions Ask questions if you are unsure

Types of Aid Scholarships & Grants Federal & State Grants Need-based, merit-based, or a combination Federal & State Grants For lower income students & families Student Employment Students work on campus 10-20 hours a week Paid hourly wages Great way to gain valuable work experience Loans Direct Stafford, Parent PLUS, and private

Loans – Are they Evil? No, but excessive borrowing is! How much will your payment be? Loan Balance of $10,000 6.8% interest rate Standard 10 year Repayment Plan $105 $115 $125 $135 For every $10,000 in loan balance, you will pay $115 per month for 10 years. $3,810 in interest

Smart Borrowing Don’t borrow more than your first year salary What do teenagers think their salary will be? (Charles Schwab - Teens & Money Survey 2011)

Financial Aid Resources Financial Aid Office & Website Webinars / Chats / Videos / FAQs Application Completion Events High School FAFSA Free for All Events Financial Aid Office Department of Education @FAFSA http://studentaid.ed.gov

Private Scholarships Civic Groups/Organizations (Rotary, Lions, etc…) Religious Organizations Corporations (Target, Coca Cola, Ford, etc….) www.fastweb.com or www.scholarships.com Facebook App: My College Dollars High School Counselor College or University Financial Aid Office Website

Where Do I Go From Here? Make financial aid part of your college visits Do a bit of detective work! Do the colleges use financial need in determining their admission decisions? How does the college treat private scholarships? On average how much need does a college meet? Utilize Net Price Calculators Inform colleges about special circumstances Investigate and apply for private scholarships

Questions? Nashwa Bolling 303-871-4020 finaid@du.edu Associate Director of Budget, Research & Analysis, Financial Aid 303-871-4020 finaid@du.edu A copy of the presentation is available at: http://duadmission.typepad.com/blog/