1. What You Need to Know About Financial Aid Bishop McNamara High School Senior Parent Financial Aid Meeting 12.8.15

2. Topics We Will Discuss Tonight What is financial aid? Categories and types of financial aid Financial need Expected Family Contribution (EFC) Cost of Attendance (COA) Resources for financial aid Free Application for Federal Student Aid (FAFSA) Special Circumstances

3. What is Financial Aid? Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses.

4. Categories of Financial Aid Need-based aid Awarded based on family’s ability to pay. Must file financial aid application(s). Non-need based aid Academic, athletic, leadership scholarships based strictly on student’s achievement. Allow schools to “shape” their student body. Research college publications and website for requirements.

5. Types of Financial Aid Scholarships Grants Loans Employment Gift Aid Self-Help Aid

6. Gift Aid Scholarships Money that does not have to be paid back. Awarded on the basis of merit, skill, or unique characteristic. Grants Money that does not have to be paid back. Usually awarded on the basis of financial need.

7. Self Help Aid Loans Money students and parents borrow to help pay college expenses. Repayment usually begins after education is finished. Only borrow what is really needed. Look at loans as an investment in the future. Work-Study Allows students to earn money to help pay educational costs. A paycheck; or Nonmonetary compensation such as room and board. Students may opt whether or not to work or number of hours to work.

8. Determining Need

9. Principles of Need Analysis To the extent they are able, parents have primary responsibility. Students also have a responsibility to contribute to their educational costs. Families should be evaluated in their present financial condition. Special conditions allow for extenuating circumstances.

10. Federal Methodology Formula created by congress to determine estimated family contribution (EFC). Calculated via the Free Application for Federal Student Aid (FAFSA). Required by all schools for need-based aid.

11. What is Expected Family Contribution (EFC)? Amount family can reasonably be expected to contribute Stays the same regardless of college Two components Parent contribution Student contribution Calculated using data from a federal application form and a federal formula

12. Expected Family Contribution (EFC) Parental Income Parental Assets Student Income Student Assets Parental Contribution Student Contribution EFC

13. EFC – Student’s Contribution Account TitleAccount TypeWhose Asset on FAFSA Parent in trust for ChildTotten TrustParent Child in trust for ParentTotten TrustChild Parent and ChildJoint AccountSplit Evenly Child and ParentJoint AccountSplit Evenly Parent as custodian for ChildCustodial AccountChild Parent as a trustee for ChildCustodial AccountChild

14. What is Cost of Attendance (COA)? Direct Costs Tuition & Fees Room & Board Indirect Costs Books & supplies, including computer Transportation Misc./personal Study Abroad Direct and indirect costs combined into cost of attendance (COA). Varies widely from college to college.

15. What is Financial Need?

16. EFC & Financial Need On-Campus Private On-Campus Public Commuter Public Cost of Attendance (COA)$43,921$19,548$11,438 Estimated Family Contribution (EFC)$17,000 Financial Need$26,921$ 2,548$ -0-

17. Estimating Costs FAFSA4CasterNet Price Calculator Each school is required to post on it’s website. Some schools have it on its admissions page; other on the financial aid page. Depending on the school’s financial aid structure, requested information could include academic as well as financial data. Provides an estimated financial aid package. www.fafsa.ed.gov

18. Sources of Aid

19. Sources of Financial Aid Federal Government States Colleges and universities Private sources Civic organizations and churches Employers

20. Federal Government Largest sources of financial aid. Aid warded primarily on the basis of financial need. Must apply each year using FAFSA.

21. Federal Student Aid Programs Federal Pell Grant Federal Supplemental Educational Opportunity Grant (FSEOG) Teacher Education Assistance for College and higher Education (TEACH) Grant Subsidized and Unsubsidized Federal Direct Student Loans (Direct Loans) Federal Work-Study (FWS) Iraq and Afghanistan Service Grant (IASG) PLUS Loans

22. States Residency requirements usually apply Award aid on the basis of both merit and need Use information from the FAFSA and/or state aid applications Deadlines vary by state Maryland deadline is 3/1/16

23. Maryland State Scholarship Programs Academic Common Market Guaranteed Access Grants Separate application. Educational Assistance Grants File FAFSA before 3/1/15 Senatorial Scholarships Contact Senator’s office Delegate Scholarships Contact each of 3 Delegates www.mhec.state.md.us

24. District of Columbia Residents In-state tuition at most public colleges and universities. $2,500 toward tuition at private schools in D.C., Maryland, and Virginia. Must apply using the DC OneApp. (dconeapp.dc.gov) Application window is February 1 st - June 30 th. dconeapp.dc.gov

25. Individual Colleges and Universities Award aid on the basis of both merit and need. Aid may be gift aid or self-help aid. Use information from the FAFSA and/or institutional applications. Deadlines and application requirements vary by institution. PRIORITY DEADLINE is February 15, 2016 Check with each college or university

26. Private Sources Foundations, businesses, charitable organizations. Deadlines and application procedures vary widely. Begin researching private aid sources now. Check Naviance for scholarship opportunities.

27. Civic Organizations and Churches Research what is available in the community. To what organizations and churches do student and family belong? Application process usually occurs during spring of senior year. Small scholarships add up!

28. Employers Companies may have scholarships available to the children of employees. Companies may have educational benefits for their employees.

29. Applying for Aid

30. Free Application for Federal Student Aid (FAFSA) A standard form that collects demographic and financial information about the student and family. May be filed electronically or using paper form. Information used to calculate EFC Amount of money a student and his or her family may reasonably be expected to contribute towards the cost of the student’s education for an academic year. Colleges use EFC to award financial aid.

31. FAFSA May be filed at any time during an academic year, but no earlier than the January 1 st prior to the academic year for which the students requests aid. For the 2016-2017 academic year, the FAFSA may be filed beginning January 1, 2016. Most colleges set FAFSA filing deadlines. Often around February 15, 2016.

32. FAFSA on the Web (FOTW) Website: www.fafsa.govwww.fafsa.gov 2016-2017 FAFSA on the Web available on January 1, 2016. FAFSA on the Web Worksheet: Used as “pre-application” worksheet Questions follow order of FAFSA on the Web

33. FAFSA on the Web (FOTW) Good reasons to file electronically: Built in edits to prevent costly errors. Skip-logic allows student and/or parent to skip unnecessary questions. Option to use Internal Revenue Service (IRS) Data Retrieval Tool to import tax data.

34. FAFSA on the Web (FOTW) Good reasons to file electronically: More timely submission of original application and any necessary corrections. More detailed instructions and “help” for common questions. Ability to check application status online. Simplified application process in the future.

35. IRS Data Retrieval Tool While completing FOTW, applicant may submit real-time request to IRS for tax data. IRS will authenticate taxpayer’s identity. If match found, IRS sends real-time results to applicant in new browser window. Applicant chooses whether or not to transfer data to FOTW.

36. IRS Data Retrieval Tool Available early February 2016 for 2016-17 processing cycle. Participation in voluntary. Reduces documents requested by financial aid office.

37. FSA ID https://fsaid.ed.gov/npas/index.htm Sign FAFSA electronically. Not required, but speeds processing. May be used by students throughout aid process, including subsequent school year. Only the owner should create a FSA ID.

38. Replies and Awards

39. FAFSA Processing Results Central Processing System (CPS) notifies student of FAFSA processing results by: Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s email address was not provided. SAR Acknowledgement if filed FAFSA on the Web and student’s email was not provided.

40. FAFSA Processing Results CPS notifies student of FAFSA processing results by: Email notifications containing a direct link to student’s online SAR if student’s email was provided on paper or electronic FAFSA Student with FSA ID may view Student Aid Report (SAR) online at www.fafsa.gov.

41. FAFSA Processing Results Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA submitted College reviews ISIR. May request additional information.

42. Student Aid Report Review data for accuracy and correct any errors. Update estimated tax information when actual figures become available.

43. Making Corrections If necessary, corrections to FAFSA data may be made by: Using FAFSA on the Web if student has FSA ID; Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); Or Submitting documentation to college’s financial aid office.

44. Financial Aid Award Letters After a college accepts you, you'll receive a letter that outlines how much the school will cost and what kind of financial aid package you'll receive — including federal, state, and school sources. There’s no standard format for schools’ award letters, but they contain the same overall information: How much your year in college will cost The financial aid package that the school is giving you What portion your family is expected to contribute Any gap you’ll have to make up through other sources

45. Sample Financial Aid Award Letter

46. Special Circumstances Cannot be documented using FAFSA. Send WRITTEN explanation and documentation to financial aid office at each college. College will review and request additional information if necessary. Decisions are final and cannot be appealed to U.S. Department of Education.

47. Special Circumstances Changes in employment status. Unusual medical expenses not covered by insurance. Change in parent marital status. Unusual dependent care expenses. High school/elementary school costs Student cannot obtain parental information.

48. Gapping If you have substantial unmet financial need you should try to delicately negotiate with the college or university. Find out whether the college has protocol in place. Write a letter, and be professional but passionate. Make a compelling case….whenever possible, using numbers. Be confident. Gather support. Think outside the box.

49. CSS Profile Designed to give schools a closer look into parent and student finances About 300 member schools. Submit registration form listing schools to receive information. Will be sent application to be completed with questions based on list of schools. Can take care of both steps on-line at http://profileonline.collegeboard.com. http://profileonline.collegeboard.com $25 registration fee includes first school; $16 per additional school.

50. You must reapply to FAFSA every year.

51. Summary and Tips

52. Applying for Aid: Common Errors Divorced/remarried parent information. Should be parent with whom student resides and step-parent, if appropriate. Income earned by parents/stepparents. Adjusted gross income Untaxed income. All money received should be included US taxes paid. Not taxes withheld

53. Applying for Aid: Common Errors Household size Do not include independent students or children who have moved out of the house. Number in postsecondary education. Do not include independent students or parents. Real estate and investment net worth.

54. Q & A When in doubt call and talk to a financial aid representative at the college or university in question.