1. How it All Works… Scholarships and Financial Aid

2. For copies of the PowerPoint Email m.scott@tcu.edu

3. College Financial Aid Brochures

4. Types of Financial Aid Scholarships Grants Work Loans Tax Credits The American Opportunity Credit

5. Sources of Financial Assistance FEDERAL STATE INSTITUTIONAL PRIVATE FAMILY

6. How the Average Family Pays

7. Sources of Financial Assistance International Students –Students that will need a visa (F-1) to study in the United States Not available to international students –Federal Funds –State Funds May be offered to international students –Private –Institutional

8. Sources of Financial Assistance Institutionally Funded Aid Primary Aid Source at Privates Philosophies Differ Endowment vs. Discount

9. How Eligibility is Determined Academic/Merit Performance/Talent Eligibility/Need-based

10. How Eligibility is Determined Academic/Merit Based on student performance, not financial status SAT/ACT, Class Rank, HS GPA Can be very competitive, or not Generally tied to tuition

11. How Eligibility is Determined Performance/Talent Usually requires an audition Very competitive NCAA - Division I, II, III Ncaa.org

12. Universities are like airlines. We all overbook! An important Hint

13. How Eligibility is Determined Need-Based Aid Federal Eligibility calculated using methodology approved by Congress Most common method at majority of universities Institutional May be calculated using CSS Profile methodology at some private universities Both measure a familys ability to pay, not their willingness to pay

14. Applying for Need-Based Aid Need-Based Aid Forms FAFSA CSS Profile Institutional Aid/Scholarship Application

17. Calculating Need Cost of Attendance - Expected Family Contribution (EFC) = Need Determining Eligibility

18. Tuition & Fees Residence Hall & Meals Books & Supplies Travel Expenses Study Abroad Personal Expenses Cost of Attendance

19. Calculating Need Cost of Attendance - Expected Family Contribution (EFC) = Need Determining Eligibility

20. Want to know the secret of the EFC?

21. AAI ASSESSMENT RATES INCOME EXCLUSIONS (child support paid, taxable aid, tuition tax credits) U.S. INCOME TAX F.I.C.A. TAX STATE AND OTHER TAXES EMPLOYMENT ALLOWANCE INCOME PROTECTION ALLOWANCE TOTAL INCOME PARENTS INCOME* TAXABLE INCOME UNTAXED INCOME AND BENEFITS AVAILABLE INCOME ADJUSTED AVAIL. INCOME TOTAL PARENTS CONTRIBUTION PARENTS CONTRIBUTION FOR STUDENT NUMBER OF DEPENDENT CHILDREN IN COLLEGE INCOME SUPPLEMENT (NOT LESS THAN ZERO) ASSET PROTECTION ALLOWANCE 12% CONVERSION RATE BUSINESS OR NON-FAMILY FARM ADJUSTMENT DISCRETIONARY NET WORTH NET WORTH PARENTS ASSETS** CASH/BANK ACCOUNTS INVESTMENTS AND OTHER REAL ESTATE EQUITY NON-SMALL BUSINESS OR NON-FAMILY FARM NET WORTH * Federal need analysis provisions provide an automatic zero EFC treatment for families with parental AGI of $ 20,000 or less if the parents are non-tax filers or file a 1040A or 1040EZ, or file a 1040 and receive federal means-tested benefits (TANF, SSI, free or reduced price lunch, food stamps or WIC). ** If the parents are non-tax filers, or file an IRS 1040A or EZ, or file an IRS 1040 and receive federal means-tested benefits, and the parents AGI is less than $ 50,000, no assets are included in the methodology Parents of dependent students Federal Methodology (FM) DISCRETIONARY NET WORTH

22. 529 Savings Plans Pre-Paid Tuition and/or Savings Plans Plans held by parents : –reported on the (FAFSA) as a parental asset, assessed at a maximum 5.64% rate Plans owned by the student: –are to be reported as parental asset s Plans owned by grandparents, others: –distribution is reported as untaxed income, resulting in a severe reduction in eligibility for need-based aid

23. Vertical Horizontal Equity in Awarding

24. Financial Need and Admission Need Blind – Students are admitted without regard to ability to pay. –Need Conscious –Need Sensitive Meeting Need – supplying sufficient gift aid to equal COA minus EFC. –Often less than what parents expect, sometimes limited to full – tuition –Very few universities capable of doing this

25. Less Expensive School Cost of attendance$13,000 EFC$10,000 Need$ 3,000 Need-Based Grant -$ 2,000 Loan -$ 1,000 -$ 3,000 More Expensive School Cost of attendance$26,000 EFC$10,000 Need$16,000 Academic Scholarship -$ 8,000 Need-Based Grant -$ 2,000 Work Study -$ 2,000 Student Loan -$ 4,000 -$16,000 Packaging Financial Aid

26. Less Expensive School Cost of attendance$13,000 Parent Loan (PLUS)$10,000 Need$ 3,000 Need-Based Grant -$ 2,000 Loan -$ 1,000 -$ 3,000 More Expensive School Cost of attendance$26,000 Parent Loan (PLUS)$10,000 Need$16,000 Academic Scholarship -$ 8,000 Need-Based Grant -$ 2,000 Work Study -$ 2,000 Student Loan -$ 4,000 -$16,000 Packaging Financial Aid

27. Net Price Calculators The Higher Education and Opportunity Act of 2008 (HEOA) requires all post secondary institutions that enroll first-time, full-time students and participate in the Title IV programs to provide a Net Price Calculator on its website by Oct. 29, 2011. Purpose – to help current and prospective students, families, and other consumers estimate the individual net price of an institution of higher education for a student. 2

28. Net Price Calculators Net Price Calculators must provide at least the following information: Estimated total price of attendance Estimated tuition and fees Estimated room and board Estimated books and supplies Estimated other expenses (including personal expenses and transportation) Total estimated merit and need-based grant Estimated net price (price minus grant aid) 2

29. Net Price Calculators

33. AcademicSocial Financial The Best Fit Fit Which School is Right For You?

34. www.collegeboard.com www.finaid.org www.fafsa.ed.gov www.fastweb.org www.irs.gov/pub/irs-pdf/p970.pdf www.studentaid.ed.gov Important Links

35. Mike Scott m.scott@tcu.edu