1. College Financial Aid Night
Julie B. Savino
Dean of University Financial Assistance
Sacred Heart University

2. Tonight’s Agenda Sources and Types of Financial Aid
Application Process
Determining Eligibility
Thoughts and Tips

3. Principles of Financial Aid
Parents and students are responsible for financing an education
- up to their ability.
Financial aid is a supplement and should offer students both access and choice.

4. Total Sources of Financial Aid $168
Total Sources of Financial Aid $168.4 Billion Estimated Student Aid by Source for Academic Year in Current Dollars (in Billions) Source of Information: The College Board “Trends in Student Aid”, October 2009
2/23/2019

5. Types of Financial Aid grants scholarships work-study programs
and loans

6. Types of Financial Aid
Gift Aid
Need-based
Merit-based

7. Begin at the Beginning…….
Check with Colleges and Universities to see what Financial Aid Applications are required.
Check financial aid deadline dates with Colleges and Universities.
Submit required information at least two weeks before earliest deadline. For example;
February 15th deadline,
Submit information by February 1st.

8. Application Process… Free Application for Federal Student Aid
Required for all types of aid
Profile Application
Used primarily by private colleges
Institutional Applications
Check school publications and websites
2/23/2019

9. Federal Application Process…
Federal Student Aid Programs
Applying for College
Applying for Financial Aid
My FSA
High School juniors can take advantage of FAFSA4caster web site and learn about the process, gain early awareness of aid eligibility, and much more.
General Information OR
Technical Assistance
(800)
or (319)

10. Federal Application Process…
Apply for PIN
Change PIN
Change PIN information
For Students and Parents

11. Federal Application Process…
The FAFSA is:
Required by all schools administering federal student aid.
Data collection vehicle that supports Federal Methodology (FM).
Cannot be submitted until after January 1 … But get organized as soon as possible.
2/23/2019

12. Federal Application Process …
After submitting the FAFSA:
Receive a Student Aid Report (SAR)
applicants get instructions for access to electronic Student Aid Report (SAR)
Review the SAR
make corrections, if necessary
all filers may access SAR and make changes on-line
If selected for review, a message will be present. May have to submit tax returns and/or other forms for verification purposes to the schools.
Schools receive applicant data electronically
Schools may offer tentative award based on current information
Schools – now or later – may verify or adjust information

13. Profile Application Process…
The College Board PROFILE collects more comprehensive family and financial information
Supports Institutional Methodology (IM)
Allows schools to receive information earlier in the cycle
Colleges and programs rely on PROFILE data to award nonfederal funds
Remember to check for other institution specific forms !!!

14. PROFILE Application Process …
PROFILE requires a registration step, to receive a …..
Customized Online Application includes:
Student specific information or cover letter
Standard Application
Section Q questions required by each school
PROFILE supplements or supplement information and links

15. What’s Next? Determining Eligibility

16. The Cost of Education Includes direct costs: Includes indirect costs:
Tuition and required fees
Room and board for resident students
Includes indirect costs:
Books and supplies
Transportation to and from campus
Miscellaneous personal expenses

17. What is the Expected Family Contribution ~ EFC ?
The EFC is a measure of capacity over time to absorb educational costs
Not a dollar amount expected from current income or assets
Not an estimate of extra cash available
Federal EFC is used as an ELIGIBILITY INDEX for federal aid purposes. EFC determines student eligibility for the Pell Grant and other forms of federal aid
Schools use the EFC (Federal and/or Institutional) and cost of education to put together a “package” of financial assistance
The EFC is subject to school verification and adjustments.

18. How does the Expected Family Contribution (EFC) result in a Financial Aid Package?
Total Cost of Education
(minus) – Federal EFC
(equals) = Federal Eligibility
or Financial Need
Total Cost of Education
(minus) – Institutional EFC
(equals) = Institutional Eligibility

19. Elements of Need Analysis
Taxes
Uses both parent and student information (dependent students)
Parents’ income is the major determinant
Uses standard income and asset protection allowances
Parents’ assets range from 2% to 6% of total
Student’s assets range from 25% to 35% of total
Federal Methodology (FM) does not consider HOME EQUITY or Qualified Retirement Assets
# in college
Income
# in family
Assets
FAFSA
The Financial
Aid Funnel
FM EFC

20. Elements of Need Analysis
Institutional Methodology (IM) treats income and assets differently than FM
Typically uses home equity
Protection for emergencies
Protection for college savings
May allow for medical expenses
Institutional options!
It’s OK to estimate !
Home Equity
Allowances
Medical
Profile
IM EFC

21. Eligibility for Financial Aid
4 Year Private
4 Year Public
Total Cost
$34,000
$14,000
- EFC
$10,000
$10,000
= Eligibility
$24,000
$ 4,000

22. The Financial Aid Package
Total Cost = $34,000
College Grant
$17,000
$ 2,000
Work
$ 5,000
Loan
Family Contribution
$10,000

23. The Financial Aid Package
Total Cost = $34,000
Unmet Need
College Grant
$13,000
$ 2,000
Work
$ 5,000
Loan
Family Contribution
$10,000

24. Financial Aid Reality Total Cost of Education (minus) – Aid Awarded
(equals) = Family Share

25. Finding the Family Share
INCOME
LOAN
SSSAVINGS
SAVINGS

26. Finding the Family Share
Ask people if they know of any private scholarships you could apply for – employer, guidance office, clubs family may belong to, and local library. Do research on the web. There are many free, quality websites for scholarship searches. Be imaginative!
Families should save as much as they can – no amount is too small!
Sign up for a monthly payment plan through the institution, generally will allow you to pay the remaining balance over 10 months.
If you find it difficult to pay within a ten month period, research long-term financing options …
Federal Parent Loan (PLUS)
Connecticut Family Education Loan Program (CT FELP)
Private Alternative Loan for Education
Personal Family Options
2/23/2019

27. Questions to ask and not assume!
How do outside awards affect the aid package?
What is the school’s policy on non-custodial parents?
What is the average student debt level?
Are the scholarships/grants renewable each year?
Does the college have a “need-blind” or need-sensitive admissions policy?
How might awards change in future years?
What happens if financial circumstances change?
Resource:
“Twenty Things You Need to Know About College Financing“
2/23/2019

28. Thoughts and Tips
Many factors involved in the awarding of aid which results in very different financial aid packages from different schools.
Understand Award Letters.
The best deal is not always the best fit!
Consider all types of aid.
Loans are a fact of life.
Look at all financing options – start with those offered by the college at which the student enrolls.
Consider a financial “safety” school.
Financing plans should cover 4 years.
Appeal if circumstances change.
2/23/2019

29. Where There’s “The Web,” There’s a Way . . .
A site designed by the U.S. Department of Education in collaboration with students to help students make the dream of college a reality.
The agency of the federal government that establishes policy for, administers, and coordinates most federal assistance to education.
The Connecticut State Higher Education website for state financial aid programs and links to Connecticut colleges and universities
The Connecticut Higher Education Supplemental Loan Authority . Provider of the Connecticut Family Education Loan Program (CHESLA).
Use the College Board’s College Financing Calculators to help you figure out how to pay for college.

30. Where There’s “The Web,” There’s a Way . . .
Consumer tips for parents and students as well as financial aid tools for completing required applications.
Financial Aid Information Page. Lists a variety of financial aid information, including family contribution calculators.
FASTWEB, Free scholarship search.
Scholarships, Free search.
Federal Trade Commission. Information on scholarship scams and how to avoid them.

31. THAT’S ALL FOLKS!