1. Applying for Financial Aid 2017-2018 Academic Year
Patricia Buono
Senior Assistant Director of Financial Aid Services
Telephone:

2. Where do I start? Visit college websites for:
application requirements and DEADLINES
Net Price Calculator
Found on each College’s website to help you determine your ESTIMATED expected family contribution (EFC) FOR ONE YEAR
Each calculator is unique to that college’s awarding policies.
Outcome is a ball park -- not an offer admission or financial aid.

3. TIPS NET PRICE CALCULATOR Carefully read all instructions and pop ups.
If necessary, try to guesstimate income as close as possible. OK to use calculator more than once.
Don’t forget untaxed income, i.e. tax deferred pensions or losses on tax return
What to do if parents are divorced --
Combine income but results will not be completely accurate.
Be careful what assets you put in the calculator.

4. finaid.org

6. What goes into paying for Education?
Family’s ability to pay
Federal and State government funding
College endowment size and awarding policies
Outside scholarships i.e. from the community
Does the college offer merit or athletic scholarships?
Were the financial aid applications and supporting documentation submitted by the deadline date?

7. Definition of Financial Need
Cost of Attendance
LESS
Expected family contribution (EFC)
LESS
Other financial assistance
EQUALS
Financial need

8. Cost of Attendance Tuition Room & Board Books & Class Supplies
Transportation
Miscellaneous and Personal Expenses (i.e. purchase of a computer, sometimes health insurance fee, dorm room items needed)

9. Comparison of Need by Cost (Assumes full-time enrollment)
4 Year Private
4 Year Public
2 Year Public
Cost of Education
$65,000
$25,000
$ 7,000
Expected Family Contribution (EFC)
$10,000
Need
$55,000
$15,000

10. Meeting the Full Need or Gapping
College A B
Cost of Education
$65,000
Expected Family Contribution (EFC)
$ 10,000
Need
$55,000
Aid Awarded
$35,000
Unmet Need
$20,000
Add this to EFC!

11. Family Contribution Components 2017-18
USING “PRIOR PRIOR” YEAR INFORMATION
Parent(s)’ 2015 income
Student’s 2015 income
Parent’s assets value at the time of the application
Exclude retirement account balance or primary residence home equity
Include trusts, equity value of investment properties, business net worth
Include 529 plans set up by parents (not UGMA/UTMA* accounts)
Student’s assets value at the time of the application
Include trusts, if student is beneficiary and UGMA/UTMA* accounts
529 plans set up by someone other than a parent
# of household members: must provide at least 50% support
# of dependents attending college (at least half-time)
*UGMA/UTMA: uniform gifts to minors act/uniform transfers to minors act where the student owns the account but the parent is the “custodian” or administrator of the account

12. Untaxed Income Where do I find these?
FROM THE FEDERAL INCOME TAX RETURN, FORM 1040
Education Credits (1040, line 50)
Health Savings Account deduction (1040, line 25)
Tax Exempt Interest (1040, line 8b)
Untaxed portions of Pension/Annuity withdrawals (1040, line 16a – 16b)
Untaxed portions of Retirement account withdrawals (1040, line15a – 15b)
Untaxed portion of Social Security benefits (1040, line 20a – 20b)
IRA or SEP/SIMPLE/Qualified Plan contributions (1040, line 28 & 32)
Earned Income Credit (1040, line 66a), possibly
Additional Child Tax Credit (1040, line 67), possibly
Maybe: depreciation/losses from 1040, Schedule C, E or Business Income Tax Return

13. Untaxed Income Where do I find these?
ADDITIONAL ITEMS NOT FOUND ON
THE FEDERAL INCOME TAX RETURN, FORM 1040
Child Support Received (not on 1040)
Military/Clergy* housing allowance benefit (not on 1040)
Pension contributions (W2 box 12 D, E, F, G, H & S)
Make sure you don’t put untaxed income /assets in multiple places because it looks like extra income/assets! (i.e. retirement funds in retirement balances and in investment balances)
*This includes any employer paid housing; i.e. school employees required to live on campus and not charged for that housing.

14. Federal Aid Eligibility Determined Using the FAFSA (FREE Application for Federal Student Aid)
FAFSA available 10/01/2016 on
Must be a U.S. Citizen or an Eligible Non-Citizen
A parent & the student must create a user name and password for the FAFSA at
EXCLUDE:
Home Equity in your primary residence
Information about the noncustodial parent
INCLUDE:
Custodial parent and stepparent incomes are included
MULTIPLE DEPENDENTS IN COLLEGE
Parent contribution is divided by the # of dependents* in college
*dependents must be enrolled at least half time in undergraduate or graduate studies
Parents in college are NOT included in this number.
Unmarried but living together/same sex marriages: Income from both partners is used.

16. Helpful Tips When Completing the FAFSA
Print out the FAFSA on the Web Worksheet
Use your 2015 federal tax return and W2 statements.
State of Connecticut deadline: 2/15/2017
College Goal Sunday for help with the FAFSA various sites and dates in October

17. Helpful Tips When Completing the FAFSA
Make sure you use your LEGAL NAME (cross checked w/ SSA)
Parents and students must provide their SSNs and DOB
if a parent does not have a SSN, enter zeros.
When reporting assets, in addition to savings/checking and liquid (non retirement) investments, remember to include:
% of ownership of Investment real estate equity (value minus mortgage)
If renting out a portion of primary residence, include that % of value – debt as well.
% of ownership in legal trusts (Remember wills are not trusts.)
529 College Savings Plans:
in parent’s name -- include in parent’s investment balances.
in name of other than parent – include in student’s investments.
Business/investment farm net worth (value minus debt)
not if more than 50% family owned and with less than 100 employees

18. Changing the FAFSA You can update the FAFSA for the following:
adding a college
updating income i.e. after income tax return is filed
correcting errors
It is recommended (and may be required) to use the IRS Data Retrieval tool on the FAFSA to update your income – if you filed a federal income tax return.

19. CSS Profile (not used by all schools) determines Institutional Grant Eligibility
CSS Profile: on College Board website cost: $25 + $16 for every additional school listed
College Board website has a list of those schools that use the CSS Profile
Completed using custodial parent and student information
The non-custodial parent information required
By completing the Non Custodial Parent Statement on College Board website
Items that may be included:
Primary residence equity
Losses on federal income tax return or depreciation associated with a business or investment property may be added back
Parent contribution might not be divided equally for # in college:
no allowance for dependents in graduate school
reduced allowance for a lower cost institution (i.e. community college)
Reduced or no allowance for siblings receiving substantial merit/athletic aid
Minimum student contribution: anywhere from $1,000 to $2,200

21. CSS Profile Tips
In addition to the assets reported on the FAFSA, you will also be required to report:
Primary Residence Equity (value minus mortgage balance) (not necessarily used in formula)
Value of your retirement accounts (although not used in formula)
Business net worth (value minus debt)
Also, use the comment section to relay special circumstances
--i.e. a loss of income, one time income or unusual expenses.

22. CSS Profile Tips
Once the Profile has been submitted, you will not be able to make corrections. So be careful!
Contact your school if you need to update the information.
Many colleges participate in the College Board’s IDOC document imaging service.
You send your federal income tax returns, W2 forms, income statements and other required documents to IDOC
Participating colleges listed on your profile can then access the docs electronically.
Saves you multiple copying /mailing time and expense.

23. Remember! Grants/Scholarships do not have to be repaid
unless a student withdraws during a term.
May be considered taxable income -- any amount of grants/scholarships over the cost of tuition and books.
Student loans must be repaid.
Additional online requirements must be completed.
Federal Work Study provides income from a campus job
This does not go toward the tuition bill.
This is paid to the student in the form of a paycheck or direct deposit.

24. Sources of Need Based Aid Federal Grants
Federal Pell Grant – up to $5,815
Federal SEOG Grant – up to $4,000
Federal TEACH Grant – up to $4,000
Funding for has not yet been determined.
for detailed information about these programs.

25. Sources of Need Based Aid Federal Student Loans and Workstudy
Federal Perkin Loans – up to $5,500
Interest rate is 5% fixed, no origination fees
Program was cancelled by US Congress as of 9/30/2015. This may not be available for
Federal Direct Loan – dependent student levels (online requirements apply)
1st year = up to $5,500 (of this a maximum $3,500 can be subsidized)
2nd year = up to $6,500 (of this a maximum $4,500 can be subsidized)
3rd-5th year = up to $7,500 (of this a maximum $5,500 can be subsidized)
Current interest rates/fees ( not announced yet)
3.76% interest rate
1.068% origination fee
For more information go to:
Federal work study limits usually between $1,400-2,500.

26. Sources of Need Based Aid State Grants
For CT residents attending a college in CT
Up to $4,500 FUNDING NOT DETERMINED FOR YET
Roberta B. Willis Scholarship Program:
FAFSA required – must file by February 15, 2017
Need based: EFC less than $11,000

27. Sources of Institutional Grants and Outside Resources
Institutional Grants/Scholarships come from the college’s endowment funds.
Outside Resources – such as:
Employee Tuition Benefit
Contributions from relatives
National Merit, Rotary, Lions Club etc. Scholarships
Use High school guidance office as a resource
Ask companies that are in the field of your major
Search:

28. Student Federal Aid Eligibility Requirements
U.S. Citizen or
Eligible non-citizen
Additional documentation may be needed to prove eligibility.
Males, 18 and older, must register for Selective Service;
Have a valid social security number;
Must be enrolled, full time, in an eligible degree or certificate program;
Must have a high school diploma or an equivalent
(i.e. if home schooled);
While enrolled in college, must make satisfactory academic progress (including # of credits and GPA).

29. What is the Federal Definition of a Parent?
If your parents are divorced or separated,
answer the FAFSA questions about the parent you lived with more during the past 12 months.
If you did not live with one parent more than the other, give answers about the parent who provided more financial support during the past 12 months.
Parents who are together but unmarried or same sex marriages:
the incomes will need to be combined for FAFSA filing purposes.

30. What is the Federal Definition of a Parent?
If your parent has remarried, you must include information about the stepparent on the FAFSA.
The following people are not your parents unless they have adopted you:
grandparents,
foster parents, legal guardians,
older brothers or sisters, or
uncles or aunts
Other unrelated persons that you may be living with.

31. What if parent information is not available?
If (among a few other reasons)
the student has no contact with the parent(s) and does not know where they are and
the student has not been adopted by someone else or
the student has left home due to an abusive situation or
can be considered an unaccompanied youth / homeless,
then the College will ask you to provide:
third party documentation to verify your living situation from: i.e. an attorney, court officer, social worker.
Some colleges also require that you complete their own waiver form in addition to submitting the 3rd party docs.

32. FEDERAL SHOPPING SHEET FINANCIAL AID AWARD
Required by State of CT for CT colleges/universities
Purpose: to compare awards “apples to apples” because they should all have the same format
Net Price/Cost means Cost of Attendance – EFC – grants/scholarships
After Net Price/Cost, you will see loan and work study options

34. How Aid is Applied to the Bill
Generally, the College only bills you for Tuition & Fees and Room & Board
Once in the fall semester – usually due in August
Once in the spring semester – usually due in January
Financial Aid that is posted to your bill:
Grants and Scholarships (half posted in each semester)
Federal Student Loans, if accepted, (half posted in each semester)
once your student has completed the necessary online requirements
Federal Work Study is NOT applied to the bill.
It is paid to the student in the form of a paycheck or direct deposit as they work and is tax reportable earned income.

36. What if my family contribution seems unreasonable?
Compare aid awards from similar colleges. If the family contribution is significantly different:
Ask how the contribution was determined
Is there a contribution expected from the non-custodial parent?
Were losses reported on the tax return added back?
What is the minimum student contribution?
How were number of family members in college treated?
Was home equity included in the analysis?
Has there been a change in family dynamics since the FAFSA was filed re: # in college, income, expenses?
If you have special circumstances, request procedures for an “Appeal” or “Review” and ask what the deadline is.

37. Aid Award in Subsequent Years “The Four Year Plan”
Most Colleges make you apply every year for financial aid.
But ask: Is this award for just this year?
Loan amounts increase as the student advances to the next
grade level (causing grants to decrease).
Increases/decreases in the family income and/or assets will cause the family contribution to increase/decrease.
If the number of dependents enrolled in college changes, the family contribution will change.
Remember that only for federal purpose is a sibling attending graduate school included in number in college
If the number in family changes, the family contribution will change.
Federal and state funding levels change from year to year

38. How do I pay the rest of the bill?
Withdrawals from Savings / Investments / 529 Plans
The College’s Installment Payment Plan (not a loan)
Home Equity loans, 401K loans, Stock loans
Alternative Student Loans through private lenders (i.e. banks, credit unions, state institutions and national student loan lenders)
Federal PLUS program (Parent Loan for Undergraduate Student)
Apply for other outside scholarships
Check with your financial planner or CPA for other options open to you specifically.

39. Federal PLUS Program
PLUS = Parent loan to undergraduate student (student must be a dependent)
offered by the Department of Education to custodial and non custodial parents
Annual loan limit: cost of attendance minus other aid
Fixed interest rate 6.31%, Loan origination fees 4.276%
Repayment begins 60 days after the full loan is disbursed.
Can defer payments (interest will still accrue) while student is enrolled at least half-time. 31

40. Resources High School Guidance Office Financial Aid Offices
College’s Websites

41. COLLEGE GOAL SUNDAY Get FREE help filling out the 2017-18 FAFSA!!
must register!
Sunday, October 23, 2016
See next slide for additional dates & sites.
1:00 p.m. – 4:00 p.m.
Local sites:
New London: Science and Technology Magnet HS
Willimantic: Eastern CT State University

42. College Goal Sunday Additional Dates and Sites
Sunday, October 16, 2016 Middlesex Community College  Windsor High School
Saturday, October 22, 2016 Gateway Community College & New Haven Promise  Housatonic Community College  Manchester Community College
Sunday, October 23, 2016 Eastern Connecticut State University  East Hartford High School  Naugatuck Valley Community College  New London Science and Technology Magnet High School  Western Connecticut State University  Norwalk Community College  Hall High School Saturday, October 29, 2016  New Britain High School & American Savings Foundation

43. Financial Aid: An Overview
Thank you for your attention What questions can I answer for you? Good Luck in your College journey!
Daniel T. Barkowitz, Lasell College 27