1. Early Awareness: The Financial Aid Basics
What Everyone Should Know
About the Financial Aid
Application Process
Presented by: Jessica Bernier
Director of Financial Aid, Vassar College

2. Early Awareness Financial Aid
Looking Beyond Cost
Cost of Attendance (COA)
Expected Family Contribution (EFC)
Financial Need
Components of Financial Aid
Financial Aid Programs
Financial Aid Process
Forms & Resources

3. Looking Beyond Cost…
A program of study that is of interest to the student
A program that will challenge the student academically
An environment in which the student will feel comfortable

4. Cost of Attendance (COA)
Components
Example
Direct Costs
Tuition and Fees
Room & Board
Indirect Costs
Books and Supplies
Personal/Misc. Expenses
Travel
Tuition $45,580 Room & Board$10,800 Student Activity Fee $310 Health Service Fee $380 Books & Misc. $2,250 Travel $Varies

5. Expected Family Contribution (EFC)
“A measure of a family’s financial aid strength calculated according to a formula established by law”
Composed of the Parent Contribution and Student Contribution

6. Expected Family Contribution (EFC)
What factors into the EFC?
A family’s taxed and untaxed income, assets and benefits are all considered in the formula
Other major factors include family size and number of family members attending college at least half time (not including parents)

7. Financial Need
Cost of Attendance - EFC (Parent + Student) = Financial Need

8. Components of Financial Aid
Sources of Financial Aid
Federal
Institutional
State
Private
Types of Financial Aid
Gift Aid
Grants based on need
Scholarships (academic, performance, athletic etc.)
Self-Help
Loans
Employment
Categories of Aid
Need-based
Non-need-based (merit)

9. Financial Aid Programs
Federal
Pell Grant
SEOG
Work Study
Perkins Loan
Federal Direct Stafford Loan
Subsidized, Unsubsidized
Parent Loan for Undergraduate Students (PLUS Loan)
New York State
Tuition Assistance Program (TAP)
Child of Veteran Award
Child of Deceased_____ Awards (Police Officer, Firefighter, Corrections Officer)
New York State Merit Awards
Institutional
Scholarships/Grants
Employment
Monthly Payment Plans
Private Sources
Outside Scholarships
Alternative Loan
Employers

10. Financial Aid Process Free Application for Federal Student Aid (FAFSA)
A Federal form filed electronically
Used to determine eligibility for federal & state aid
Collects demographic and financial information about the student and family
Can be filed beginning January 1st for the upcoming academic year (Jan. 1, 2013 for the academic year

11. Financial Aid Process FAFSA (cont’d)
FAFSA Student Information Includes:
Social Security number, citizenship Status, drug convictions, Selective Service registration, income & asset info
FAFSA Parent Information Includes:
Tax, income and other financial information, assets, dislocated worker status

12. Financial Aid Process Additional Forms
Additional forms may include:
CSS Profile
Institutional Application
Noncustodial Profile
Business and Farm Supplement
U.S. Income Tax Forms & W-2s
Corporate Tax Returns

13. Financial Aid Process CSS Profile
Institutional Methodology (CSS Profile) vs. Federal Methodology (FAFSA)
Colleges may use both the CSS and FAFSA to determine Federal aid and institutional aid
Institutional Methodology used by many colleges to award their institutional scholarships & grants.
The policies for awarding institutional aid varies between colleges

14. Financial Aid Process Why two forms? FAFSA vs. CSS Profile
Data
FAFSA
CSS PROFILE
Home Equity – Primary Residence
Not counted as an asset
Is an asset
Retirement Accounts
but may be asked
Payments to TDA
Treated as untaxed income
Business Equity
If < 100 employees – not an asset
Non-custodial parent
No information from NCP
Supplement Required
Education Savings Accounts
529 – Coverdell
Report as asset of owner – who created the account
Untaxed Social Security/
Military Housing Allowance
Not reported
Report as untaxed income
Filing Date
No earlier than January 1
As early as mid-October
Medical or Private School
Expenses
Only under PJ
More likely to be part of analysis

15. Financial Aid Process Divorce/Separation - Remarriage
FAFSA
Custodial parent completes FAFSA; residency establishes custody
Step-parent is considered “Parent”
Noncustodial parent not required to provide financial data
CSS Profile
Same rules apply for completing CSS Profile
However
Noncustodial parent may be required to complete the Noncustodial Profile

16. Financial Aid Process Special Circumstances
Some examples:
Change in parent marital status
Change in employment status
High medical expenses not covered by insurance
Unusual dependent care expenses
Send written explanation to financial aid office at each college

17. Financial Aid Process The Fundamental Question
What are you, as a parent, willing to do or sacrifice to have your son or daughter attend a particular college or university?

18. Financial Aid Process Need Analysis Formula
An objective and uniformly applied formula designed to establish the relative financial strength of families to meet education expenses over time
Not a cash flow analysis of extra cash
Analysis done on base year (prior year) income; i.e income for academic year 13-14

19. Financial Aid Process Net Price Calculators
All schools are required to have them on their website
Allows you to input your income and asset data & receive an estimate of your Family Contribution and Financial Aid package
Result is an ESTIMATE, only as good as the information provided
Schools will make the final determination of your financial aid package
Not able to factor in unusual circumstances

20. Financial Aid Process Understanding the Financial Aid Award
Determine what aid, if any, is guaranteed for all four years
Are there requirements to maintain aid? (i.e., GPA, participation in activity)
Does school guarantee to meet financial need all four years?
Determine what the family is required to contribute and what sources will be required to do so
Determine what is covered and what isn’t. (i.e., JYA)
Plan ahead - Estimate student and parent debt after four years
Some debt is OK!

21. Financial Aid Process Early Decision
One particular school is the “dream school”
Early Decision is binding
Make sure you are aware of the early decision policies at each school
If the amount of financial aid is going to be a major factor, as opposed to affordability, it is best not to apply early decision

22. Financial Aid Process
Every college has their own requirements and deadlines; it is important to know what these are early in the process
Depending on the college, additional information may be required in order to complete the financial aid application process
When in doubt, contact the FA office and ask

23. Forms & Resources www.fafsa.ed.gov – Where to file a FAFSA
- CSS Profile
– Info about NY State Grants & Scholarships
– Info about Federal student aid programs
– Free scholarship/grant search
– Pub.970; Tax Benefits of Education
The information used in this presentation was gathered from various sources including Vassar College, NASFAA and fafsa.ed.gov

24. Good Luck & Stay Positive!
It is important to look at what the college has to offer as well the long-term financial commitment
Both the parents and student need to be involved in the process
Student needs to know what is important to him/her, and parents provide support in analyzing college data
Good Luck & Stay Positive!