OpInform 2015 Back to Basics: Foundations of Financial Aid

OpInform 2015 Daniel M. Tramuta Associate Vice President for Enrollment Services State University of New York at Fredonia New York State Financial Aid Administrators Association (NYSFAAA) – Past-President Eastern Association of State Financial Aid Administrators (EASFAA) – State Rep

OpInform 2015 Overview Of Higher Education Landscape Demographics Decline in HS Graduates out to 2022 Selectivity Matrix Program Demand Retention Merit-Based Arms Race Cost and Affordability Scholarship–increased discounting to finding price point Debt at Graduation Return on Investment New Academic Programs

OpInform 2015 Projected change in the number of high school graduates 2010 to 2019

OpInform 2015 Factors Most Noted in Choosing & Staying at a College 1.Majors & Career Programs Offered 2.Cost/Affordability 3.Location/Campus Characteristics/Faith Support 4.Campus Size/Safety 5.Characteristics of Enrolled Students 6.Selectivity

2014 Undergraduate Degree Demand – ACT Test Takers OpInform 2015

 The Basics The Makings of a Financial Aid Package How Financial Need is Determined  Best Practices Discussing Financial Aid Reviewing Award Letters  Change to FAFSA Process  SUNY SmartTrack  SUNY Financial Aid Days Topics OpInform 2015

What Makes up a Financial Aid Package? OpInform 2015

What Makes up a Financial Aid Package? OpInform 2015 Grant Programs  PELL Grant Must have an EFC between $0-$5,199 Max. Award $5,775  NYS TAP Grant Based on NYS net taxable income Max. Award $5,165

What Makes up a Financial Aid Package? OpInform 2015 Scholarship Programs  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  Student’s employer  Parents’ employers/unions

What Makes up a Financial Aid Package? OpInform 2015 Federal Work Study  Based on financial need  Traditionally on-campus employment  Usually 12 to 15 hours per week

What Makes up a Financial Aid Package? OpInform 2015 Federal Perkins Loan Sunsetted by the U.S. Senate – discontinued as of 9/30/15 for all new borrowers  Based on financial need, 5% interest rate  Teacher Cancellation Benefits

What Makes up a Financial Aid Package? OpInform 2015 William D. Ford Direct Loans  Subsidized 4.29% Capped at 8.25% Based on need Federal government pays interest while student is in school $3,500 for freshmen  Unsubsidized 4.29% Capped at 8.25% Not based on need Maximum Direct Loans for freshmen: $5,500

What Makes up a Financial Aid Package? OpInform 2015 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 6.84%  Capped at 10.5% Time Payment Plans  May vary…typically, families spread the direct costs over the semester or year.

What Makes up a Financial Aid Package? OpInform 2015 Additional Resources

What Makes up a Financial Aid Package? OpInform 2015 SUNY State-Operated Campuses TEACH Grant  Up to $3,728 per year  For students who intend to teach: A high-need field Students of low-income  Four-year service contract  More information:

What Makes up a Financial Aid Package? OpInform 2015 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: or Scholarship Unit at

What Makes up a Financial Aid Package? OpInform 2015 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: or Scholarship Unit at

The New York State Masters-in-Education Teacher Incentive Scholarship Program OpInform 2015  Awarded to 500 top undergraduate students  Full graduate tuition to pursue Masters in Education at a SUNY or CUNY  Available for the academic year Eligibility  Student must be enrolled full-time in a master's degree in education program  Agree to teach in a NYS public elementary or secondary school for 5 years following degree completion

New York State ‘Get on Your Feet’ Loan Forgiveness Program OpInform 2015 Eligibility  Reside in NYS for 12 continuous months  Be a U.S. citizen or eligible non-citizen  Graduated or received a NYS HS equivalency diploma  Earned an undergraduate degree from a college or university located in NYS in or after  Have a AGI of less than $50,000  Enrolled in the federal IBR plan or Pay as You Earn plan  If employed, primary work location in NYS

New York State ‘Get on Your Feet’ Loan Forgiveness Program OpInform 2015 Eligibility  Current on all federal or NYS student loans  Current on the repayment of any NYS award  Be in compliance with the terms of any service condition imposed by a NYS award  Earned no higher than a bachelor’s degree at the time of application  Apply within 2 years of receiving an undergraduate degree

What Makes up a Financial Aid Package? OpInform 2015 Cost of Attendance

How is Financial Aid Determined? OpInform 2015 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

OpInform 2015 Best Practices

OpInform 2015 Best Practices Discussing Financial Aid at Family Meetings

OpInform 2015 Best Practices Reviewing Award Letters

OpInform 2015 Change to FAFSA Process for

Change to FAFSA Process OpInform 2015 Using Prior-Prior Year (PPY) 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 federal income tax information from the year prior. Families are encouraged to file the FAFSA as soon as possible after January 1 st 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 (9/13/15) 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 their 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.

Change to FAFSA Process OpInform 2015 Using Prior-Prior Year (PPY)Tax Income Data on the FAFSA With the switch to PPY, students and families will be able to: File the FAFSA earlier. As we discussed, 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 FAFSA will be available in October 2016, rather than January 1, 2017, and as such families can use the PPY’s completed income tax return on their 1718 FAFSA. 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 both admission and 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 ( ) aid applicants will be using the same prior year federal income (2015) for two consecutive years

Change to FAFSA Process OpInform 2015  Students will no longer need to estimate income, since prior-prior year income will be used on the FAFSA  Admission Application timeline will be moved up  FAFSA can be completed/submitted as early as October 1 st, 2017 using 2015 federal tax data  Financial aid packages will be developed & delivered earlier  Families will have more time to prepare for meeting college costs

OpInform 2015 SUNY Smart Track

OpInform 2015  SUNY standard award letter  System-wide financial literary  Student engagement/communication  Delinquency/default resolution 

SUNY Smart Track OpInform 2015

SUNY Smart Track Award Letters OpInform 2015

Breaking Down a SUNY Smart Track Award Letter OpInform 2015

Breaking Down a SUNY Smart Track Award Letter OpInform 2015

Breaking Down a SUNY Smart Track Award Letter OpInform 2015

Breaking Down a SUNY Smart Track Award Letter OpInform 2015 College Overview Section:  Graduation rate  Loan default rate

Breaking Down a SUNY Smart Track Award Letter OpInform 2015 College Overview Section:  Median borrowing  Repaying loan information  School contact information

Saturday, January 16, 2016 Saturday, February 20, 2016  Ask questions about the financial aid application, types of aid and the award process  Some campuses will offer web access to complete the FAFSA online  Students may register at in early December 2016 SUNY Financial Aid Days OpInform 2015

QUESTIONS? OpInform 2015