1. FINANCIAL AID The Basics and then some…… Presented by Bonnie Lee Behm
Director of Financial Assistance
Villanova University

2. Before we start…. Begin with a positive attitude!
Involve your child/family in the admission and financial aid application process. Discuss your ability to pay for college with your child or family throughout the application process
Ask questions along the way – each school has their own unique approach to financial aid

3. Financial Aid Grants Scholarships Loans Student Employment
Financial Aid = Assistance for students to fund their education in the form of:
Grants
Scholarships
Loans
Student Employment

4. Categories of Financial Aid
Merit based Aid
Need-based Aid

5. Merit-Based Aid
Merit-Based Aid = grant assistance given to students strictly on the basis of merit
Award usually remains the same over the course of the student’s academic career
Merit may be defined in a variety of ways
Academic record (SAT, ACT, GPA, HS RANK)
Special characteristics ( ex. Leadership, Creativity)
Skills or talents ( ex. Musical, Athletic)
Involvement (ex. Community, Work)

6. Merit-Based Aid Amounts can vary significantly from school to school
Rule of thumb: more competitive the institution – less merit based aid
May or may not require an application, interview, submission of additional materials
May require a student to apply for admission by an earlier date
May be administered by an office other than the FA Office

7. Need-Based Aid
Need-Based Aid = aid awarded to students on the basis of financial need Re-evaluated each year as financial situations may change.
Need will vary based on cost of attendance of the school
Determination of need could be based on the FAFSA, CSS PROFILE or both

8. How do you apply for need based aid?
Complete the Free Application for Federal Student Aid (FAFSA)
The FAFSA on the Web Worksheet (FOTW) is a great tool to help you work through the process
Check with your school if they need additional forms
Some schools have their own forms
Schools may require a copy of tax returns, and/or W-2 forms
NEW – TAX TRANSCRIPTS may be requested if family does not use IRS Match on FAFSA
The CSS Financial Aid PROFILE may also be required at some institutions

9. What Is The FAFSA? Free Application For Federal Student Aid (FAFSA)
A standard application that collects financial & demographic data about the student & parent
Used to apply for federal & state aid (may be application for college aid, depending upon the school)
File one FAFSA per student (not one per college)
Need to file a FAFSA every year you seek assistance

10. How/When to File the FAFSA?
Ways To Complete the FAFSA:
On-line at
Complete as soon as possible after January 1 at
Make sure you select the FAFSA for the school year you are planning to attend
Make sure you file by your school’s deadline for aid. Check with your school if you do not know the filing deadline.

11. Filing The FAFSA Based on prior calendar year tax information
May use estimated income and taxes
Students need to be encouraged to apply even if they are not sure of their attendance at a particular school
Do not wait to be accepted to college to file for financial assistance

12. Deadlines Check each institution for their specific deadline date
State or federal deadline dates may differ so make sure you are meeting all timelines

13. Financial Need -Expected Family Contribution Financial Need
Cost of Attendance
-Expected Family Contribution
Financial Need
(Expected Family Contribution = EFC)
_______________________________________________________________________________________________

14. Cost of Attendance Cost of Attendance typically includes:
Tuition & fees
Room & board
Books & supplies allowance
Personal expenses allowance
Transportation allowance
_______________________________________________________________________________________________

15. What Is The Expected Family Contribution (EFC)?
EFC is determined by a formula that considers a student and parents’ financial situation
Amount a family can reasonably be expected to contribute to the student’s education during the school year
EFC & Financial Need are guidelines used by schools to determine aid package
Formula used by the FAFSA is the Federal Methodology

16. How Is The EFC Calculated?
Primary Factors Considered:
Taxable Income: AGI (wages earned + interest dividends + other taxable income)
Untaxed income & benefits
Number in family
Number of dependent children in college
Assets

17. How Is The EFC Calculated?
For more detailed information on how the EFC is calculated visit: Select Financial aid calculators

18. Institutional Methodology
Some schools may require the CSS Financial Aid PROFILE
Primarily used by private schools
Collects supplemental data (home equity, financial data of non-custodial parent, etc.)
Basis for awarding institutional need-based aid only
Register to complete form at
There is a fee associated with the completion of the CSS/Financial Aid PROFILE

19. Sources of Aid Federal State School/College/University
Private/Outside Organizations
Civic organizations (ex.-local Rotary Club, parent’s employer, churches)

20. Federal Grant Aid Federal Pell Grant
Federal Supplemental Educational Opportunity Grant SEOG
Teacher Education Assistance for College & Higher Education Grant (TEACH)

21. Federal Work and Loan Aid
Federal Work Study
Federal Perkins Loan
Federal Nursing Student Loan
Federal Direct Loan
Federal Direct PLUS Loan

22. State Aid Awards may be merit or need based
May require some type of residency requirement
Deadlines for applying for state aid may vary from state to state
Contact your state higher education assistance agency for specific details on their programs of aid

23. College/University
Many schools offer their own sources of aid. Understand that funding varies from school to school therefore aid packages may vary significantly
Funds may be merit or need based aid
Check with each school you are interested in about their policies, application forms, process & deadlines

24. Outside Sources
Private sources of scholarship funds include:
Service/Fraternal Organizations
Employers/Business
Churches/Religious Groups
The web is an excellent resource for parents, students and counselors to seek free scholarship assistance

25. Comparing Aid Offers School A School B School C COST $8500 $23000
$45000
- EFC
$2000
NEED
$6500
$21000
$43000
PELL Grant
$2360
SEOG Grant $0
$3000
PA State Grant
$1900
$4300
Perkins Loan
Work Study
$1500
$2500
Direct Loan - Subsidized
$2240
$3500
Institutional Grant
$4500
$20000
Unmet Need
$840
$4340

26. Comparing Aid Offers School A School B School C COST $8500 $23000
$45000
- EFC
$12000
NEED $0
$11000
$33000
PELL Grant
SEOG Grant
PA State Grant
$1100
$1400
Perkins Loan
$2000
Work Study
$1500
$2500
Direct Loan - Subsidized
$3500
Institutional Grant
$21000
Unmet Need
$900
$2600

27. Comparing Aid Offers
Will the aid package change if outside scholarships are received?
What factors can cause changes to my eligibility in the future? (i.e.- how will my package change if there is a change in the number in college, what if my income increases)
Is there room for movement in my financial aid award?
Can I appeal the award?

28. Comparing Aid Offers
Look at the Bottom line for each school carefully comparing grants, loans and work opportunities as well as merit versus need based programs
Consider possible changes in your family situation over the next four years & consider how that can affect your ability to pay not only in the next four years but over the years all your children are in college

29. Additional things to consider
If you have unusual circumstances let the school about your situation
Follow up with all requests for additional information from your school or federal or state agency
You need to reapply for need based aid every year
If your family financial situation changes your need based aid package may also change each year
Contact the Financial Aid Office with your questions or concerns regarding the financial aid process

30. Net Price Calculators (NPC)
NPC is a new tool schools must have to assist you in knowing what federal aid you may be entitled to. Many schools will also allow you to determine school based aid on the NPC as well.
All schools will have one on their web by Oct. 29, 2011
It is a tool – it is not the final award letter

31. Timeline September – start to apply for private aid
January/February – file FAFSA and/or PROFILE and any other forms school requests
March/April – schools will send financial aid award letter to you

32. Timeline continued
April – review financial aid awards and determine which package is best for you and your family
May 1 – Deposit deadline for admission
NOTE: Students applying Early Action or Early Decision may have earlier deadlines

33. Questions? Thank you for your attention and GOOD LUCK