Financing your college Education

Agenda Introduction What is Financial Aid? Types of Financial Aid Free Application for Federal Student Aid (FAFSA) Scholarship Resources Saving for College Conclusion

Can I Afford a College Education? YES! A college education is the most important investment you can make in your future. Earning a bachelor’s degree or associate’s degree will open doors for you and can increase your earning potential throughout your life.

What is Financial Aid? Financial Aid = money provided to students to help pay for post-secondary educational expenses Grants: free money, usually financial need required Scholarships: free money, some skill/merit-based Loans: money that must be paid back Employment Opportunities: opportunity to earn money for college expenses/pocket money

Sources of Financial Aid Federal government State programs (e.g. NY State) Institutional funds Outside agencies/organizations

Types of Financial Aid Need-based Merit-based Money given because student has need. Includes: Grants (free money) Scholarships (free money) Loans (money that must be paid back) Merit-based Scholarships given because of skill such as: Academics Athletic Others

Cost of Attendance (COA) Direct Costs: tuition, required fees, room, meals, books & supplies Indirect Costs: transportation, miscellaneous personal expenses, study abroad expenses, dependent care expenses, disability-related expenses COA = direct + indirect costs Varies widely from college to college

Expected Family Contribution (EFC) EFC appears on the Student Aid Report (SAR). This number results from the financial information you provide in your FAFSA. EFC is an amount the student can reasonably be expected to contribute. This number is used to determine your eligibility for federal student financial aid.

Expected Family Contribution (EFC) What is Financial Need? COA = direct + indirect costs EFC = family contribution Calculated using data from the FAFSA and a federal formula Cost of Attendance (COA) Expected Family Contribution (EFC) Financial Need

Types of Grants Federal Grants (Annual) Pell Grant: up to $5,775 Federal Supplemental Educational Opportunity Grant (FSEOG): $500 to $5,165 New York State Grants (Annual) -Tuition Assistance Program (TAP): $500 to $5,165 -Aid for Part-Time Study (APTS)

Federal Work Study Provides part time jobs for undergraduate and graduate students with financial need Students are placed in jobs on or off-campus Paid by hour and the amount you earn cannot exceed your total Federal Work-Study award Must be enrolled in at least 6 credits *File early – funds are limited*

TAP (Tuition Assistance Program) TAP (Tuition Assistance Program) - New York State grant 4 year limit (no more than 8 full-time semesters) Special program (e.g. SEEK 10 semesters)

Federal Education Loans Loans for Students Direct Subsidized Loans (need-based) 1st Year = $3,500, 2nd Year = $4,500, 3rd/4th Years = $5,500 Direct Unsubsidized Loans (not need-based) 1st Year = $5,500, 2nd Year = $6,500, 3rd/4th Years = $7,500 Loans for Parents PLUS Loans (must meet credit standards) Amount = COA – Student’s Financial Need Parents responsible for repayment (begins 60 days after last disbursement) PLUS loan- be sure to include that only the parent is responsible for repayment which begins 60 days after the last disbursement

Federal Education Loans Direct Subsidized Loans Direct Unsubsidized Loans 2.0 GPA/at least 6 credits You don’t have to pay interest while in school at least half-time (6 credits or more). Interest rate 4.29% 3.0 GPA/at least 6 credits (graduate) Must pay interest while you are in school Interest rate undergraduate 4.29% graduate 5.84%

Federal Education Loans Direct PLUS Loans – Loans for Parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. Parents responsible for repayment (begins 60 days after last disbursement) Graduate PLUS Loans - Made to graduate or professional students. Credit Check is conducted for eligibility

Who is Eligible? General Eligibility for Student Aid Have high school diploma or it’s equivalent Be enrolled or accepted for enrollment as a regular student working toward a degree OR certificate in an eligible program Be a U.S. citizen or eligible non-citizen (i.e. permanent resident/political asylum) Registered with Selective Service (for all males between 18-25) Transfer students must be in good Financial Aid standing with your loans A legal resident of New York state for state aid Enrolled as a full-time student taking 12 or more credits (applicable toward your degree program) per semester for state aid Students must be in good academic standing for both federal & state aid

Free Application for Federal Student Aid (FAFSA) A standard form that collects demographic and financial information about the student and family Required for all types of federal aid FAFSA on the Web (www.fafsa.ed.gov) English & Spanish Available January 1st – the earlier you apply, the better the chances – we recommend Feb. 15th Colleges may set FAFSA filing deadlines Queens College Code: 002690

Dependency Status If a student meets any of the following criteria, they are considered Independent for Aid Eligibility: Foster Care (ages 13 or older) Orphan/Ward of the Court a student with both parents deceased If orphaned by 13 or older and subsequently adopted, student is considered independent Court has assumed legal custody of a student, not due to incarceration Legal Guardianship In all cases, documentation is required. These students qualify for the Federal Pell and NYS Grants.

FAFSA on the Web www.fafsa.ed.gov Apply Reapply English and Spanish options Access FSA ID Website Check status of application View Student Aid Report (SAR) information Make corrections

Method to file FAFSA Data File the FAFSA data utilizing the IRS Tax Data Retrieval Tool Process. It is most advisable that students use this method to supply tax information for themselves and/or parents to lessen their chances of being selected for verification. This isn’t a new process.

New York State Aid Programs Tuition Assistance Program (TAP) Available to NY State residents attending a college or university in NY State To Apply for TAP Complete FAFSA on the Web Express TAP Application Link will be available on FAFSA “Confirmation Page” Look for red heading “New York Residents Only.” If you miss TAP link, a reminder will be sent to your email address or you can go to www.hesc.ny.gov Queens College Code : 1416 TAP= NYS residents attending NY schools

Institutional Financial Aid Grants from College Awarded annually Award based on “Financial Need” Determine Renewability Scholarships from College Academic Merit & Financial Need Academic Merit Only May Require Separate Scholarship Application Ask the financial aid office for details on their available programs!

Scholarship Resources For a list of reputable scholarship searches, go to: www.newvisions.org/scholarships-for-new-york-city-students Scholarships for NYC and NYS students www.fastweb.com Scholarships and fellowships are identified based on background and profile www.finaid.org Dream Scholarship – www.thedream.us United Negro College Fund - www.uncf.org

Saving for College New York 529 College Savings Plans (www.nysaves.org) Tax-free earnings if used on qualified expenses*, otherwise tax + 10% penalty State deduction up to $5,000 ($10,000 for joint filers) per year Direct deposit of $25/$15 per pay period, up to $375,000 overall contribution Direct Plan (recommended, lower cost at 0.49%) vs. Advisor Plan Transferrable to beneficiary’s family Balances in 529 plan do not affect eligibility for state grants

Saving for College (continued) Coverdell Education Savings Account Tax-free earnings if used on qualified expenses*, otherwise tax + 10% penalty Limit $2,000/year/child, up until the child reaches age 18 Must be used by age 30, or transferred to another family member No limit on type of investment & can be used for primary/secondary education Cannot use Coverdell while taking Hope/Lifetime Learning Credit Extension of current provisions beyond 2010? US Savings Bond Tax-free earning for state Tax-free earning for federal if used to pay tuition & fees

Conclusion Don’t wait until you are admitted to file the FAFSA. Apply to colleges by earliest possible deadline. Complete all questions accurately. Estimate if necessary to meet early deadlines. You must RE-apply for financial aid each year. Know what your school’s priority and deadline dates are. Keep copies of all documents for your records. Beware of scams. Filing for FAFSA is FREE.

Thank you!