2. F. Duane Quinn Financial Aid Specialist duane201@charter.net

3. ……But Before We Start…. “When we talk about the Financial Aid Process, I really wish I understood How??…... Why??……”

4. The Higher Education Assistance Act of 1965 The laws which established student financial aid. The law is “Reauthorized” every five years (Sort of!) An opportunity for change and reform

5. General Categories of Aid Merit Aid: Colleges Community Service Agencies Web Searches Need Based Aid Most College Aid Most Federal /State Aid

6. General Categories of Aid Non-need based aid PLUS Loans Unsubsidized Loans “Alternative Financing” Parent / Student Alternative loans Tax Credits

7. Theory Parents and students are responsible for financing education costs......… Up to their ability.

8. Theory The student and her family will benefit the most from higher education and should pay for it...… Savings Working Borrowing

9. A Student is “Dependent” until… Age 24 Veteran of armed forces Child whom he/she supports A dependent who lives with student and whom he/she supports Married Student Graduate Student Orphan or “Ward of the Court” Homeless Active Duty National Guard

10. Eligibility Cost lessFamily contribution =Eligibility for aid

11. Cost not just tuition Tuition +Room and Board orCommuter expenses +Books and supplies +Transportation expenses +Personal expenses +“Other” special costs

12. The Family Contribution Not “extra” money. Not “family savings” The ability of both the parents and the student to absorb educational expenses over time. It should represent a true sacrifice on the part of the family.

13. Hint: Know Your EFC Calculators available: Net Cost Calculator on College web pages Department of Education College Board Mapping Your Future

14. Different Ways to Apply for Aid Paper FAFSA (Limited distribution) Renewal FAFSA FAFSA on the WEB http://www.fafsa.ed.gov http://www.fafsa.gov

15. New for 2017 – 2018, “Prior/Prior” In past family reported income from year just ending Often “estimated” tax information, then correct after taxes completed 17 -18 will use tax data from prior year filed taxes FAFSA available in mid fall: Not January 1 Colleges may alter filing deadlines

16. Application Process College A College B College C COLLEGES STUDENT Data Matches FAFSA Fed. Processor SAR IRS Interface

17. The Student Aid Report SAR Acknowledgment of processing Read messages to assure properly processed Review data; Use to correct or update data Add additional Colleges Web file = web SAR; Paper with e-mail = web SAR; Paper without e-mail = paper SAR

18. CSS PROFILE Supplemental Form Required by some colleges to determine eligibility for college aid Used by some for Early Decision Process

19. Eligibility Cost lessFamily contribution =Eligibility for aid

20. Example of Two Schools COLLEGE “A” cost$ 40,000 - F.C$ 8,000 =need$32,000

21. Example of Two Schools COLLEGE “B” cost$19,000 -F.C.$ 8,000 =need$ 11,000

22. Will Saving Effect My Eligibility for Aid? (federal) Retirement plans are not reportable asset Home equity not a reportable asset (federal) Business with < 100 employees not reportable Parent assets heavily protected for retirement Do NOT save under student’s SSN… 20%

23. Based on 2016-17 Federal Methodology: Courtesy of MEFA (Massachusetts Educational Financing Authority) Family AFamily BFamily C Combined Parent Income $75,000 Combined Parent Assets $0$75,000$150,000 EFC$7,819$10,208$14,438 Difference$2,389$6,619 An example: 4 in the family, 1 child in college: Asset Impact on EFC

24. Family AFamily BFamily C Combined Parent Income $75,000$100,000$150,000 Combined Parent Assets $50,000 EFC$8,798$17,245$32,803 Difference$8,447$24,005 Based on 2016-17 Federal Methodology: Courtesy of MEFA (Massachusetts Educational Financing Authority) An example: 4 in the family, 1 child in college: Income Impact on EFC

25. So My Kid Is Just Going To Have to Borrow a Lot! Federal limits on student loans for undergraduate dependent students 1 st : $5,500. 2 nd $6,500 3 rd & 4 th $7,500. Not to exceed $31,500. (undergraduate dependent)

26. So My Kid Is Just Going To Have to get a lot of Scholarships! The most competitive colleges do not give “merit” Aid. Private scholarships most often reduce financial aid dollar for dollar (loan first, so it is a good thing!)

27. The Financial Aid Package GRANTS - “Free money” Never has to be repaid WORK - An opportunity to earn college funds. LOANS - Funds which must be repaid

28. The Financial Aid Package cost $40,000 F. C. $ 8,000.

29. The Financial Aid Package cost $40,000 F. C. $ 8,000. need = $32,000

30. The Financial Aid Package cost $40,000 F. C. $ 8,000. loan $4,000 work $ 3,000 grant = $25,000 meet full need

31. The Financial Aid Package cost $40,000 F. C. $ 8,000. loan $4,000 work $3,000 grant = $20,000 unmet need “GAP” $5,000

32. Where Ya’ Gonna Surf??? American Student Assistance www.amsa.com Department of Education www.ed.gov/student aid www.fafsa.gov College Board www.collegeboard.com Mapping Your Future www.mapping-your-future.org Financial Aid Information Page www.finaid.org