2 About MEFA  MEFA is a non-profit state authority that works to make higher education more accessible and affordable through community education programs, college savings plans, and low-cost financing options. Founded in 1982 by the Massachusetts State Legislature MEFA has assisted hundreds of thousands of families to finance a college education.

3 Seminar Agenda Overview of Financial Aid Financial Aid Applications Financial Aid Awarding Options for Paying the Balance Due MEFA’s Parent Assistance Services Issues for Counselors

4 Overview of Financial Aid Three components of financial aid:   Grants & scholarships   Loans   Work-study *Source:The College Board, 2007 Trends in Student Aid Undergraduate Student Aid ($97.1 Billion)

5 Sources of Financial Aid Federal State College/University Outside Scholarships

6 Two Different Ways to Award Aid Need-Based Financial Aid Awarded based on financial need determined by standard methodology All federal, state, and most college monies awarded using this system Merit-Based Financial Aid Given for academic, athletic, or other talent May or may not be renewable

7 Financial Aid Applications Free Application for Federal Student Aid (FAFSA) Required by all colleges for federal and state aid Free form Must be completed each year Online application recommended CSS/Financial Aid PROFILE® Some colleges require this form for institutional aid Fee-based form Online application required College Financial Aid Application Required by some colleges Usually part of admissions packet

8 Expected Family Contribution (EFC) Family has the primary responsibility for contributing to the student’s education Measure of what a family is expected to contribute toward student’s education for one year Calculated using standard methodology formula Visit to link to an EFC calculator.

9 Cost of Attendance (COA) _ Expected Family Contribution (EFC) = Financial Aid Eligibility/Financial Need Financial Aid Formula

10 Asset Impact (Family Size: 4) ABC Income:$60,000$60,000$60,000 Assets:$0$75,000$150,000 EFC:$4,420$5,230$8,800 Difference: $0$810$4,380 (Example 1: Income remains level, assets increase) *This example is an estimate only.

11 ABC Income:$60,000$100,000$150,000 Assets:$50,000$50,000$50,000 EFC:$4,420$14,559$30,660 Difference: $0$10,139$26,240 (Example 2: Assets remains level, income increases) *This example is an estimate only. Income Impact (Family Size: 4)

12 How the Formula Works Cost of Attendance In a perfect world…

13 Examples of Award Letters COA: $30,000 EFC: $5,000 Total Need: $25,000 Grants/Scholarships$20,000$17,000$12,000 Student Loans$3,500$3,500$3,500 Work-Study$1,500$1,500$1,500 Total$25,000$22,000$17,000 Unmet Need $0 $3,000$8,000 *This example is an estimate only. College ACollege BCollege C

14 Options for Paying the Balance Due Past Income Savings Other Assets Present Income Salary Payment Plans Future Income Parent Loans Student Loans

15 MEFA’s Parent Assistance Services assistance semi-monthly relating to deadlines, helpful hints, recommendations Links to online applications Links to MEFA Customer Service Your information will only be used by MEFA Complete the postage-paid card or visit to sign up for free financial aid information from MEFA’s Parent Assistance Services. Sign up tonight

16 College Financing for Counselors: Common Myths and Facts Myth: “If we apply for financial aid, it will hurt our chances of being admitted.” Fact: Most colleges practice need-blind admissions, where the applicant’s financial aid status has no bearing on the admissions decision.

17 Common Myths and Facts Myth: “You need good grades and high SAT scores to get financial aid.” Fact: Of the $131 Billion in financial aid awarded annually, most of it is based entirely on financial need, not merit.

18 Common Myths and Facts Myth: “I make too much money to be eligible for financial aid.” Fact: Financial aid eligibility varies from college to college and some institutions require the FAFSA application for merit scholarship eligibility.

19 Common Myths and Facts Myth: “We have a lot of personal debt, so we should be eligible for more financial aid.” Fact: Financial aid formulas measure the family’s overall financial strength based on income and assets. Personal debt is not considered when determining financial aid eligibility.

20 Common Financial Aid Eligibility Questions Parents' marital status/reporting Divorced/Separated Parents Stepparents? Dependency/independency Citizenship/residency requirements Undocumented students

21 Marital Status Natural/adoptive parents are married: Both report financial information whether filing jointly or separately Natural/adoptive parents are separated/divorced Custodial parent reports information on FAFSA Stepparent CSS/Profile

22 Establishing Dependency Status Thirteen questions on the FAFSA are used to determine if the student is required to submit parental information. Answering YES to any one question qualifies the student as independent for federal financial aid calculations, and no parental information or support is expected. Age 24 by January 1 Married, or supporting children or other dependents A graduate student Serving on active duty or a veteran Orphan, foster child, or ward of the court Emancipated minor, or in legal guardianship Unaccompanied youth, homeless, or at risk of being homeless

23 Citizenship U.S. Citizen Eligible non-citizen Permanent U.S. Resident Conditional permanent resident (I551C) According to Arrival Departure Record (I-94) Refugee Asylum Granted Parolee (minimum of 1 year, status not expired) Victim of Human Trafficking T-Visa holder Cuban-Haitian Entrant

24 Thank you! Questions? Paul Lynskey, Director of Secondary School Relations, MEFA, Kendra Lider-Johnson, Coordinator of College Admissions Services, MEFA,