1. Scholarships and Financial Aid
How it All Works…
Scholarships and Financial Aid
                            

2. For copies of the PowerPoint Email m.scott@tcu.edu
                            

3. College Financial Aid Brochures

4. Scholarships Grants Work Loans Tax Credits Types of Financial Aid
The American Opportunity Credit

5. Sources of Financial Assistance
FEDERAL
STATE
INSTITUTIONAL
PRIVATE
FAMILY

6. How the Average Family Pays

7. Sources of Financial Assistance
Institutionally Funded Aid
Primary Aid Source at Privates
Philosophies Differ
Endowment vs. Discount

8. How Eligibility is Determined
Academic/Merit
Performance/Talent
Eligibility/Need-based

9. How Eligibility is Determined
Academic/Merit
Based on student performance, not financial status
SAT/ACT, Class Rank, HS GPA
Can be very competitive, or not
Generally tied to tuition

10. How Eligibility is Determined
Performance/Talent
Usually requires an audition
Very competitive
NCAA - Division I, II, III
Ncaa.org

11. An important Hint
Universities are like airlines.
We all overbook!

12. How Eligibility is Determined
Need-Based Aid
Federal
Eligibility calculated using methodology approved by Congress
Most common method at majority of universities
Institutional
May be calculated using CSS Profile methodology at some private universities
Both measure a family’s ability to pay, not their willingness to pay

13. Applying for Need-Based Aid
Forms
FAFSA
CSS Profile
Institutional Aid/Scholarship Application

16. Determining Eligibility
Calculating “Need”
Cost of Attendance
- Expected Family Contribution (EFC)
= Need

17. Tuition & Fees Residence Hall & Meals Books & Supplies Travel Expenses
Cost of Attendance
Tuition & Fees
Residence Hall & Meals
Books & Supplies
Travel Expenses
Study Abroad
Personal Expenses

18. Determining Eligibility
Calculating “Need”
Cost of Attendance
- Expected Family Contribution (EFC)
= Need

19. Want to know the secret of the EFC?

20. Parents of dependent students
Federal Methodology (FM)
PARENTS’ INCOME*
PARENTS’ ASSETS**
TAXABLE INCOME
CASH/BANK ACCOUNTS
INCOME EXCLUSIONS
(child support paid, taxable aid, tuition tax credits)
UNTAXED INCOME AND BENEFITS
INVESTMENTS AND OTHER REAL ESTATE EQUITY
NON-SMALL BUSINESS OR NON-FAMILY FARM NET WORTH
TOTAL INCOME
U.S. INCOME TAX
BUSINESS OR NON-FAMILY FARM ADJUSTMENT
F.I.C.A. TAX
STATE AND OTHER TAXES
NET WORTH
EMPLOYMENT ALLOWANCE
ASSET PROTECTION ALLOWANCE
INCOME PROTECTION ALLOWANCE
DISCRETIONARY NET WORTH
DISCRETIONARY NET WORTH
12% CONVERSION RATE
INCOME SUPPLEMENT (NOT LESS THAN ZERO)
AVAILABLE INCOME
ADJUSTED AVAIL. INCOME
AAI ASSESSMENT RATES
* Federal need analysis provisions provide an “ automatic zero EFC treatment for families with parental AGI of $ 20,000 or less if the parents are non-tax filers or file a 1040A or 1040EZ, or file a 1040 and receive federal means-tested benefits (TANF, SSI, free or reduced price lunch, food stamps or WIC).
** If the parents are non-tax filers, or file an IRS 1040A or EZ, or file an IRS 1040 and receive federal means-tested benefits, and the parents’ AGI is less than $ 50,000, no assets are included in the methodology
TOTAL PARENTS’ CONTRIBUTION
NUMBER OF DEPENDENT CHILDREN IN COLLEGE
PARENTS’ CONTRIBUTION FOR STUDENT

21. Pre-Paid Tuition and/or Savings Plans
Plans held by parents :
reported on the (FAFSA) as a parental asset, assessed at a maximum 5.64% rate
Plans owned by the student:
are to be reported as parental assets
Plans owned by grandparents, others:
distribution is reported as untaxed income, resulting in a severe reduction in eligibility for need-based aid

22. Equity in Awarding
Vertical
Horizontal

23. Financial Need and Admission
Need Blind– Students are admitted without regard to ability to pay.
Need Conscious
Need Sensitive
Meeting Need – supplying sufficient gift aid to equal COA minus EFC.
Often less than what parents expect, sometimes limited to “full – tuition”
Very few universities capable of doing this

24. Packaging Financial Aid
Less Expensive School
Cost of attendance $13,000
EFC $10,000
Need $ 3,000
Need-Based Grant $ 2,000 Loan $ 1, $ 3,000
More Expensive School
Cost of attendance $26,000
EFC $10,000
Need $16,000
Academic Scholarship -$ 8,000
Need-Based Grant $ 2,000
Work Study $ 2,000
Student Loan $ 4,000
-$16,000

25. Packaging Financial Aid
Less Expensive School
Cost of attendance $13,000
Parent Loan (PLUS) $10,000
Need $ 3,000
Need-Based Grant $ 2,000 Loan $ 1, $ 3,000
More Expensive School
Cost of attendance $26,000
Parent Loan (PLUS) $10,000
Need $16,000
Academic Scholarship -$ 8,000
Need-Based Grant $ 2,000
Work Study $ 2,000
Student Loan $ 4,000
-$16,000

26. Net Price Calculators
The Higher Education and Opportunity Act of 2008 (HEOA) requires all post secondary institutions that enroll first-time, full-time students and participate in the Title IV programs to provide a Net Price Calculator on its website by Oct. 29, Purpose – “to help current and prospective students, families, and other consumers estimate the individual net price of an institution of higher education for a student. 2

27. Net Price Calculators
Net Price Calculators must provide at least the following information:
Estimated total price of attendance
Estimated tuition and fees
Estimated room and board
Estimated books and supplies
Estimated other expenses (including personal expenses and transportation)
Total estimated merit and need-based grant
Estimated net price (price minus grant aid) 2

28. Net Price Calculators

29. Net Price Calculators

30. Net Price Calculators

31. Net Price Calculators

32. Which School is Right For You?
Academic
Social
The Best
Fit
Financial

33. Important Links www.collegeboard.com www.finaid.org www.fafsa.ed.gov

34. Mike Scott m.scott@tcu.edu