1. Financial Aid 101 De-Mystifying the Process
John Iacovelli
Dean of Enrollment Management
Stockton University

2. Goal of Financial Aid
Primary goal is to assist students in paying for college 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

3. Sources of Aid Federal State The University/College Private
Civic organizations (i.e., local Rotary Club, parent’s employer, high school awards, etc.)

4. Types of Financial Aid Scholarships Grants Loans
Employment Opportunities

5. Merit-Based Aid vs. Need-Based Aid
Merit-Based Aid - aid given to students strictly on the basis of merit. May be based on:
Academic record
Special characteristics
Skills or talents
Involvement
Does not have to be repaid; may be renewable from year to year.
Need-Based Aid - aid awarded to students on the basis of financial need. Re-evaluated each year as financial situations may change.

6. Grants Federal State Institutional Private Grants and Scholarships
PELL
SEOG
State
TAG
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Institutional
Private Grants and Scholarships

7. Loans Federal Direct Loan Program Loan Limits:
Subsidized Loan (3.76%)
Unsubsidized Loan (3.76%)
PLUS (6.31%)
Loan Limits:
First-year students – $3,500
Second-year student – $4,500
All other grade levels remain at $5,500
All students eligible for additional $2000 of unsubsidized loan.

8. NJ Class Loan NJ Class Supplemental Loan Program
Low fixed interest rates beginning with:
10 Year Repayment Loan of 4.48%
Immediate Repayment of Principal & Interest Only
15 Year Repayment Loan(s) of 5.19%
Immediate Repayment of Interest Only, while in school
20 Year Repayment Loan of 7.15%
Full deferment until out of school

9. Application Process Early FAFSA: Apply as early as October 1, 2016
Submit the Free Application for Federal Student Aid (FAFSA) prior to the college’s deadline
Early FAFSA: Apply as early as October 1, 2016
To ensure maximum consideration for federal, state, and institutional aid, check information from each college to determine:
Required application materials
Application deadlines

10. Free Application for Student Aid (FAFSA)
FAFSA on the Web at
New federal regulation: Prior Prior Year (PPY) Students can begin the FAFSA process starting October 1st
Collects family’s personal and financial information used to calculate the student’s EFC

11. A FAFSA Must Be Filed on the Web

12. Common Mistakes Made on the FAFSA
Correct name, social security #, birth date
Number of people in the household
Divorced/remarried households
Taxes paid vs. taxes withheld
Parental and student assets
Worth of a second home
“Zero is a number” Please note: for parents who complete a FAFSA from a completed tax return, the IRS Data Retrieval Tool (DRT) will avoid income mistakes.

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

14. What is EFC? Basis of financial aid package
EFC is determined by a federal formula that calculates need via the FAFSA
EFC & Financial Need are guidelines used by schools to determine a financial aid package
EFC not necessarily equal to the out-of- pocket cost of the family

15. Cost of Attendance Tuition and fees Room and board
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

16. Need Varies Based on CostX Y Z
Cost of
Attendance
(Variable)
Expected Family
Contribution
(Constant)
Need 1 2 3
EFC

17. The Cycle of Financial Aid
Oct-March
Student /Parents complete FAFSA
Nov-April
School sends award letter
June-July
School sends Fall semester bill

18. HESAA and Federal Student Aid Services
HESAA Web Site
HESAA Financial Aid Hotline
8:00 am – 8:00 pm Monday thru Thursday
8:00 am – 5:00 pm Friday
NJBEST – College Savings Plan
Federal Aid Website and Toll-free Number

19. Additional Resources Services and Forms:
Fin Aid! “The SmartStudent Guide to Financial Aid”:
USDE Publications :
FastWeb
FAFSA on the Web: “Practice” FAFSA:

20. Student Loan Debt = $1.4 TRILLION