1. Financing Education Beyond High School1

2. Overview of Financial Aid What is Financial Aid
How aid is calculated/packaged
Application process
Questions 1

3. Principles Of Need Analysis
To extent they are able, parents have primary responsibility to pay for dependent child’s education
Students also have responsibility to contribute to educational costs
Families should be evaluated in their present financial condition
Family’s estimated ability to pay for educational costs must be evaluated in equitable & consistent manner, recognizing that special circumstances may affect family ability to pay
Merit Aid departs from this philosophy

4. Goal of Financial Aid
Primary goal is to assist students in paying for their educational investment and is achieved by:
Evaluating family’s ability to pay for educational costs
Distributing limited resources in an equitable manner
Providing a balance of gift aid and self-help aid 1

5. What is considered Financial Aid?
Scholarships – Institutional, Outside awards
Grants – Federal/State/Institutional
Loans – Federal/Institutional
Employment opportunities- Federal/Institutional 1 2

6. Types of Aid Gift Merit (Institutional) Grant (Institutional)
Need-Based Aid
PELL – Federal Grant
SEOG – Federal Grant
Self-help
loans – Student pays back after graduation
jobs – Student works while enrolled
Outside Aid (Grants/Scholarships)
State Grants – Tuition Assistance Program (TAP), Merit
Other – Elks Club, Rotary, Lions Club, etc.

7. Self-Help Loans to Students Employment
Federal Perkins Loan-max.$5500/yr; 5% interest; 10 years to repay, 9 months grace, campus-based
Federal Stafford/Direct Loan- $3500 1st year, $4500 2nd year, $5500 3rd & 4th years; 6.8% fixed interest; 10 years to repay; 6 months grace.
Unsubsidized Stafford/Direct Loan- $2000 per year, 6.8% fixed interest.
Employment
Federal Work Study
Institutional

8. General Eligibility Requirements
Must be enrolled or accepted for enrollment in an eligible program of study
Must be pursuing a degree, certificate, or other recognized credential
Must be a U.S. citizen or eligible noncitizen
Must be registered with Selective Service (if male and required to be 18 yr.)
May not have eligibility suspended or terminated due to a drug-related conviction for current application year 1

9. General Eligibility Requirements (continued)
Must have a valid Social Security Number
May not be in default on a federal student loan
May not owe repayment of a federal grant
Must be making satisfactory academic progress as defined by the school 1

10. Definition of Need – Expected Family Contribution (EFC)
Cost of Attendance (COA)
– Expected Family Contribution (EFC)
= Financial Need 1 4

11. Cost of Attendance Tuition and fees Room and meals
Books and supplies, equipment, transportation, and miscellaneous personal expenses
Study abroad costs
Dependent care expenses
Expenses related to a disability
Expenses for cooperative education program 1 6

12. Expected Family Contribution is the sum of four separate calculations:
Contribution from Parents’ Income
Contribution from Parents’ Assets
Contribution from Student’s
Contribution from Student’s Assets 1

13. Need Varies Based on Cost1 5

14. Need Formulas Federal Methodology (FM) (FAFSA)
Created by Congress
Used to allocate limited federal funds
Also used by some private colleges to distribute own aid
Institutional Methodology (IM)
Used by many private colleges to determine need for their institutional funds (PROFILE)
Tries to measure financial “need” rather than simply allocate funds.

15. Differences Between FM & IM Formulas:
Minimum student contribution
Home equity may be counted in parent assets
Sibling in lower cost college or receiving merit aid or athletic aid not counted as full divider of parent contribution
Passive losses may be added back into income
Non-custodial parent may have contribution

16. Institutional Grant Aid
Financial Aid Package
Institutional Grant Aid
Federal SEOG
Loans & Jobs
Outside Scholarships
Federal Pell Grant
New York State TAP 1

17. OK, WE KNOW WHAT NEED-BASED AID IS, BUT WHAT IF THERE’S A GAP IN THE PACKAGE OR WE NEED TO FINANCE OUR EXPECTED FAMILY CONTRIBUTION?
For Student
Unsubsidized Federal Stafford/Direct Loan (if not already in package as subsidized)
For Parent:
PLUS
If have good credit can get up to cost of attendance less aid received
Fixed 7.9% interest rate - 10 years to repay
Where get: same place as Stafford/Direct
Home Equity Loans
Institutional and Other Private Loans
Payment Plans
Tuition Savings Plans (529) 1

18. Applying for Financial Aid is Actually A Very Simple Process

19. Financial Aid Applications and Processors
Uncle Sam’s Free Application for Federal Student Aid (FAFSA)
All must fill this form out for federal & state aid
Paper or on-line application
College Scholarship Service’s Financial Aid PROFILE
Private colleges and universities to distribute institutional funds
On line applications only
Non Custodial PROFILE

20. Free Application for Federal Student Aid (FAFSA)
Family’s personal and financial information required to calculate the student’s EFC is collected on FAFSA
Paper versions of FAFSA
First Time Applicants only
Electronic version of FAFSA and Renewal FAFSA
FAFSA on the Web at
Personal Identification Number (PIN) required and may be obtained at 1 8

21. PROFILE College Scholarship Service
Available on line only
Length of application personalized to each family’s unique financial status
$25 for first school, $16 for each additional school
Waiver of fees using USDA “reduced price lunch” income
__________________________________________________
NON-CUSTODIAL PROFILE
Cost is $25

22. Avoid ERRORS!
Errors made in completing these and/or supplemental forms may delay application processing and result in the loss of financial aid funds.
Please complete all forms carefully! 1

23. Frequent Errors Divorced/remarried parent information
Income earned by parents/stepparents
Untaxed income
U.S. income taxes paid
Household size
Number in postsecondary education
Real estate and investment net worth
Application is not signed by parent/student 1

24. Role of the Financial Aid Office
Determine eligibility for financial aid
Packages aid depending on eligibility of funds
Sends an award notification which details:
Student’s cost of attendance
Student’s Expected Family Contribution (student & parent)
Amount of student’s financial need
Award amount for each program for which student is eligible
How and when aid will be disbursed
Terms and conditions of student’s award 1 20

25. Financial Aid Application Summary
One - Know which forms to use
Two - Apply for financial aid, no matter what
Three - apply as early as possible -- the early bird gets the worm (sometimes)
Four - Be as accurate as possible
Five - Be ready to explain your answers - at least 30% of all applications are subject to verification
Six - Make copies of your aid application and your tax return
Seven - Register for the draft

26. YOU MUST REAPPLY EVERY YEAR

27. HELPFUL WEBSITES: www.collegeboard.com
- to complete PROFILE and Non Custodial Profile
- compare financial aid awards
US Department of Education
- to complete FAFSA
New York State Higher Education Services Corporation
- can determine eligibility for TAP – Tuition Assistance Program
General Information
- can search for outside awards 1

28. NEW!!! Net Price Calculator Began October 29, 2011
Every school must have on their website
Will provide you with estimate of financial
aid you can expect to receive
Caution- only an estimate 1

29. Call: Colgate Financial Aid Office
Questions?? Need Help??
Call: Colgate Financial Aid Office
Marcelle Tyburski
Tom Wise
Kris Hopkins Or

30. Good Luck! 1