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Financing Your Education

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Presentation on theme: "Financing Your Education"— Presentation transcript:

1 Financing Your Education
Diane Corbett Director of Financial Aid University at Albany December 7, 2011

2 AGENDA What is financial aid? What determines need based aid?
Who is eligible? Who completes the forms? How and when do students apply? I applied for financial aid….now what? Award notification…. How do I read my award letter? Where do I go from here?

3 What is Financial Aid? Scholarships Grants Employment Loans
Do not need to be re-paid, must apply and meet individual scholarship criteria. Grants Do not need to be re-paid. Awarded by the College or University. Employment Work to earn money for college expenses. Loans Money that must be paid back.

4 What is Financial Aid? Merit Based Aid Need Based Aid
Money awarded to students based on academic, athletic or other merit performance Need Based Aid Money awarded to students with financial need

5 What Determines Need Based Aid?
Need Analysis Formula: Cost of Attendance (COA) Minus Expected Family Contribution = Financial Need

6 COA Includes: Tuition and Fees Room and Board Books and Supplies
Transportation Personal/Miscellaneous

7 Expected Family Contribution (EFC)
Family’s ability to pay based on Federal Methodology and/or Institutional Methodology

8 EFC Impact COA School A $20,000 School B School C -EFC $0 $ 5,000
$ 5,000 =Financial Need $15,000

9 COA Impact (cont.) COA School A $7,000 School B $20,000 School C
$30,000 -EFC $5,000 =Financial Need $2,000 $15,000 $25,000

10 Who is Eligible? Matriculation toward a degree
U.S. Citizenship or eligible non-citizen Registration with Selective Service males ages 18 – 25

11 Who Completes the Forms?
Paying for college is a shared responsibility Parent and student information is required. For divorce or separation situations, the parent (and their current spouse) with whom the student resides completes the forms. For joint custody situations, the parent who provides the most support completes the form. Biological parents and/or parents of legally adopted children.

12 How Do Students Apply? To Apply for Federal Aid:
Register for a Department of Education PIN Number Go to Digital Signature used to electronically sign applications. FAFSA (Free Application for Federal Student Aid) Go to Must complete every year to be considered for financial aid

13 How Do Students Apply? Caution!
Avoid being charged a fee to file the FREE Application for Federal Student Aid Be sure to go to

14 How Do Students Apply? FAFSA on the Web
Built in edits to help prevent errors Skip logic allows student/parent to skip unnecessary questions More timely submission More detailed instructions and “help” for common questions Ability to check application status on-line Simplified renewal application process IRS Data Retrieval

15 When Do Students Apply? File FAFSA after January 1st
the IRS Data Retrieval Process will be available for filing the FAFSA Make corrections to FAFSA You may use estimated income figures BUT you must log back on to the FAFSA once your taxes are completed and update your FAFSA Use the IRS Data Retrieval Process NOTE: If you do not use the IRS Data Retrieval Process, you may be required to submit additional documentation to the school including tax transcripts Watch for priority filing deadlines Some aid is awarded on “first-come, first-served” basis Check information from each school to determine required application materials and application deadlines

16 How Does IRS Data Retrieval Process Work?

17 How Does IRS Data Retrieval Process Work?

18 How Does IRS Data Retrieval Process Work?

19 How Does IRS Data Retrieval Process Work?

20 How Do Students Apply? New York State Grant
Tuition Assistance Program (TAP) TAP application part of FAFSA form on the web Link to Express TAP Application on “Confirmation Page” look for: “Optional Feature- Start your state application- Click here if you want to Apply for New York State- based financial aid.” Missed the link, a reminder will be sent.

21 How Do Students Apply? Errors can be costly!
Errors on the FAFSA or supplemental forms may delay application processing and result in the loss of financial aid funds. Read the instructions and complete all forms carefully!

22 I Applied for Financial Aid…Now What?
Watch for Follow Up Communications School may request documents May be required to update information on your FAFSA Financial Aid Award Letter

23 How Do I Read My Award Letter?
Scholarships Merit Based: Academic Artistic Athletic - Usually offered upon admission

24 How Do I Read My Award Letter?
Federal Grants (need based) Pell Grant A grant for highest need students who meet specified EFC parameters based on the FAFSA.

25 How Do I Read My Award Letter?
Federal Grants (Need Based) FSEOG (Federal Supplemental Educational Opportunity Grant) Limited Campus Based Funds Awarded first to students with the lowest EFCs who are Federal PELL Grant recipients

26 How Do I Read My Award Letter?
State Grant Program: TAP - (Tuition Assistance Program) Attending College in NYS NYS Resident NYS Net Taxable Income of $80,000 or less

27 How Do I Read My Award Letter?
State Grant Program-Educational Opportunity Program (EOP) Provides grant funding for eligible students Students must meet both academic and economic eligibility to be admissible Must be a NYS resident More information and income guidelines at

28 How Do I Read My Award Letter?
Federal Work Study Based on financial need Maximum eligibility is determined by the Financial Aid Office Students work usually 8-12 hours a week and receive a paycheck for hours worked Limited funds and limited jobs available On or off campus employment

29 How Do I Read My Award Letter?
Federal Loan Programs: Perkins Loan Stafford Loan PLUS Loan

30 How Do I Read My Award Letter?
Perkins Loan: A low interest (5%) loan for undergraduate students demonstrating financial need Priority given to students who show exceptional need

31 How Do I Read My Award Letter?
Subsidized Stafford Loan “Subsidized” means the interest on the loan is paid by the federal government while the student is enrolled in school at least half-time Fixed 6.8% interest for loans disbursed for The borrower must repay the loan Who is Eligible? Student must have financial need

32 How Do I Read My Award Letter?
Unsubsidized Stafford Loan “Unsubsidized” - student is responsible for the interest on the loan while in school Interest payment can be deferred If deferred, interest will be capitalized once at repayment Interest rate fixed at 6.8% Who is Eligible? Students who do not demonstrate financial need for all or part of the subsidized loans Students who are independent from their parents Parents are denied a PLUS loan

33 Stafford Loan Limits Stafford Loan for Dependent Students
Subsidized/Unsub Add’l Unsub - $3500 Freshman $2000 - $4500 Sophomore $2000 - $5500 Junior $2000 - $5500 Senior $2000

34 How Do I Read My Award Letter?
PLUS Loans Borrower is parent of an undergraduate dependent student Satisfactory credit history Borrow up to the cost of attendance less other financial aid Interest Rate 7.9% fixed Repayment begins 60 days after loan is fully disbursed unless deferment requested Additional Unsubsidized Stafford Loan if parent denied

35 Reviewing Award Letters
Questions you should ask: What is the source of aid? What is the out-of-pocket expense? Will the scholarship be renewed? Is there a GPA requirement? What happens if the requirement is not met?

36 What’s Next? Accept financial aid offers if required by institution
Admissions deposit due by May 1, 2012

37 Where Do I Go From Here? Obtain and review admissions and financial aid websites and materials for each school to which the student is applying Meet all application deadlines Complete the FAFSA and other application materials such as the College Scholarship Service’s PROFILE application if required Submit all requested follow up documents Investigate other sources of aid

38 Where Do I Go From Here? FAFSA4caster Net Price Calculator
Will help you understand your options for paying for college. The FAFSA4caster is available at: Net Price Calculator Provides a preliminary estimate of financial aid rather than a final determination of your award Net Price Calculators can be found on each College and Universitiy website. EFC Calculators There are a variety of different tools for calculating college costs, loan payments, savings, and the expected family contribution (EFC). Calculators are available at:

39 Where Do I Go From Here? Outside Scholarships Examples:
Generally awarded on an annual basis Sources of scholarships unlimited Scholarships must be counted as aid the student receives. Examples: Elks Scholarship Kiwanis Scholarship

40 Where Do I Go From Here? Free Internet Search Engines for Private Scholarship Search FinAid on the Web: College Board: FastWeb:

41 Where Do I Go From Here? Other Resources for Scholarship Searches
Local library Local businesses and civic organizations Parents’ employers

42 SUNY Statewide Financial Aid Day 2012
Saturday, January 21 & Saturday, February 11 Attend any participating campus Information about the financial aid application, types of aid and the award process Some campuses will offer web access to complete the FAFSA online Register at

43 Good Luck! Questions??


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