2016-17 Financial Aid Presentation Daniel M. Tramuta Associate Vice President for Enrollment Services New York State Financial Aid Administrators Association (NYSFAAA) - Past President Eastern Association of State Financial Aid Administrators (EASFAA) - State Rep State University of New York at Fredonia tramuta@fredonia.edu 716.673.3253

Overview of Higher Education Landscape Challenges & Opportunities Demographics Decline in HS Graduates out to 2022 Selectivity Matrix Program Demand Retention Merit-Based Arms Race Scholarship – increased tuition discounting to find price point Cost & Affordability Debt at Graduation Return on Investment New Academic Programs Growth in STEM Programs http://www.fredonia.edu/finaid/stem.asp

Projected change in the number of high school graduates 2010 to 2019

Factors Most Noted in Choosing & Staying at a College Majors & Career Programs Offered Cost/Affordability Location/Campus Characteristics/Faith Support Campus Size/Safety Characteristics of Enrolled Students Selectivity

2014 Undergraduate Degree Demand – ACT Test Takers

The Financial Aid Funnel - How & When to Apply? Apply for Admission (Fall of Senior Year) Collect documents Create a FSA ID & Password at https://fsaid.ed.gov Fill out the 2016-17 FAFSA on the Web Worksheet (Do Not Mail this Worksheet) (Dec.) Complete FAFSA online at www.fafsa.gov in January 2016 (Estimate the information) Once your federral Tax return is completed go back to update your FAFSA via IRS Data Retrieval Tool Print the confirmation page Use the corresponding state scholarship link on the FAFSA Confirmation Page to apply for TAP Keep records

Create a FSA ID & Password Prior to Completeing the FAFSA

Create Account – Link PIN

FAFSA: IRS Data Retrieval Tool F CHhhhonnects to IRS for tax datConnects to IRS for tax data of completed tax returns Electronic filers – about 2 weeks after submittal Use for original FAFSA and corrections a of completed tax returns Use for original FAFSA and corrections AFSA: IRS Data Rdata of completed tax returns Use for original FAFSA and corrections etr Connects to IRS for tax ieval Tool

Should I pay someone to help me find or apply for student financial aid? FREE help is available Make sure you are not paying for free information Know what you are getting for your money Need more info: 1-800-4FEDAID

What Makes up a Financial Aid Package?

Sources of Financial Assistance

Federal & State Grants GGrant Programs PELL Grant Must have a FAFSA calculated EFC between $0 – $5,199 Max. Award: $5,775 T NYS TAP Grant TAP Grant Based on NYS net taxable income NY Net Income ceiling is $80,000 Max. Award: $5,165

STEM Incentive Program Tuition scholarship at SUNY or CUNY Eligibility Need to graduate in top 10% of high school class Need to study in STEM Field Need to maintain a 2.5 average Five-year service contract to work in NY state in a STEM field More information: www.hesc.ny.gov or Scholarship Unit at 1-888-697-4372

NY-AIMS Award of $500 Eligibility NY State high school graduate Achieved academic excellence Top 15% 3.3 GPA or above Honor Regents diploma or a score of 3 or higher on two advanced placement exams Based on unmet need Applications and more information available in May More information: www.hesc.ny.gov or Scholarship Unit at 1-888-697-4372

Federal Work Study Federal Work Study Based on financial need Earnings based on NYS minimum wage scale Traditionally on-campus employment Usually 6 to 10 hours per week

Subsidized Unsubsidized Federal Stafford Loan 4.29% Capped at 8.25% Based on need Federal government pays interest while student is in school $3,500 for freshmen Maximum Direct Loans for freshmen: $5,500 Unsubsidized 4.29% Capped at 8.25% Not based on financial need

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Administration Rollout of PPY September 14, 2015 In Des Moines, Iowa, President Obama announces action to implement PPY on the 2017-18 FAFSA On October 1, 2016, the FAFSA for the 2017-18 award year will be released by the Department of Education.

Identifying Implications The move to PPY could have some important implications for colleges and universities Budget and tuition planning timelines may need to be adjusted if award determinations are made in the fall instead of the spring Recruitment and admissions offices may need to alter messaging as high school seniors will receive financial aid information much earlier Earlier distribution of acceptance letters Earlier distribution of financial aid award letters

Using Prior-Prior Year Tax Income Data on the FAFSA The Free Application for Federal Student Aid (FAFSA) becomes available every January 1, and currently requires a family's tax information from one year prior. Families are encouraged to file the FAFSA as soon as possible to maximize their odds of receiving financial aid. But with tax deadlines months later, most have to estimate their tax information on aid applications and make corrections later. In the worst case scenario, some families miss out on financial aid funds that are disbursed on a first-come basis. Education Secretary Arne Duncan enacted a change this past Sunday that would fix this widespread issue. By using income from two years ago, otherwise known as prior-prior year (PPY) tax income data, families could file the FAFSA with tax information they already have, making the process quicker and easier. By taking advantage of the existing ability to import tax information directly from the IRS onto the FAFSA form, families will spend less time gathering paperwork and would make far fewer errors. The use of prior-prior year income also presents an opportunity to align admissions and financial aid decisions and give millions of families more time to plan for actual college costs, rather than sticker prices or projections. Low-income families experience very little income fluctuation from year to year and most would not see a significant change in their eligibility for a Pell Grant with a switch to prior-prior year income. Prior-prior year income is the closest thing we have to a "silver bullet" for an industry in search of meaningful solutions. With earlier aid awards, financial aid administrators would have more time to help families evaluate their options and make informed financial decisions.

Using Prior-Prior Year Tax Income Data on the FAFSA With the switch to PPY, students and families will be able to: File the FAFSA earlier. As you know, the FAFSA is made available January 1 of each calendar year, yet it is uncommon for a family or individual to be prepared to file an income tax return in the month of January. Under the new PPY system, the 2017-18 FAFSA will be available in October 2016, rather than January 1, 2017, and students can use the PPY’s completed income tax return. More easily submit a FAFSA. The IRS Data Retrieval Tool (DRT), which allows automatic population of a student’s FAFSA with tax return data and decreases the need for additional documentation, can be used by millions more students and families under PPY, since tax data from two-years prior would be readily available upon application. Receive earlier notification of financial aid packages. If students apply for aid earlier, colleges can in turn provide financial aid notifications to students earlier, ensuring that students and families have more time to prepare for college costs. Notifying students earlier of their financial aid packages will also leave more time for one-on-one counseling with students and families.  * Next year’s (2016-17) aid applicants will be using the same prior year federal income (2015) for two consecutive years

What PPY Could Mean for High School Counselors? Improved discussions about financing college Earlier and more realistic conversations about financial viability Improved College ScoreCard (CollegeScorecard.ed.gov) Financial Aid/FAFSA information nights held earlier May include more colleges/universities to assist Fall workload increases College/University requests for earlier visits

Potential Impacts on Student and Family Behavior Shifting priorities in college search Changed college application patterns Earlier and/or later applicants? Both? Earlier and more informed enrollment decisions Mixed views on stress

Potential Impacts on Admission and Recruitment Behavior Earlier discussions about financial viability Admissions staff cross-training Rolling admissions could be at an advantage Acceptances and financial aid decisions sent together? Challenges to articulating value proposition Adoption of early decision/early action programs Changes in yield projection accuracy Econometric modeling may not be as accurate Methodically enhance yield activities/resources Potentially have earlier, stronger indicators of class yield

Appeals Based on Unusual Circumstances Loss of Income, e.g. in academic year 2015-16, loss of Income in 2015 vs 2014 Medical/Dental expenses NOT PAID by insurance Death, separation, divorce...... 1-Time Fluctuation in Income Elementary/Secondary Private School Tuition Expenses Follow the procedures of the Financial Aid Office where student is attending.

SUNY Statewide Student Financial Aid Days Saturday, January 16, 2016 Saturday, February 20, 2016 Ask questions about the financial aid application(s), types of aid available and the actual awarding process Most campuses will offer web access and personal assistance to complete FAFSA’s online Register at www.suny.edu/student in early December 2015

Questions?