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January, 2012 Financial Aid Night.  Facts vs Myths  Deadlines  Parent’s Marital Status  Parent & Student Assets  Special Circumstances  Comparing.

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Presentation on theme: "January, 2012 Financial Aid Night.  Facts vs Myths  Deadlines  Parent’s Marital Status  Parent & Student Assets  Special Circumstances  Comparing."— Presentation transcript:

1 January, 2012 Financial Aid Night

2  Facts vs Myths  Deadlines  Parent’s Marital Status  Parent & Student Assets  Special Circumstances  Comparing Financial aid Packages

3  My income is too high so I won’t apply.  The only way to know is to apply  My parents saved so I won’t get FA  Only a % of savings is considered  Millions of scholarships go unclaimed  These are “employer-reimbursement” plans  You have to be a minority to get FA  Federal FA is based on financial need, not race

4  The form is too hard  FASFA keeps getting easier—help available online, phone, and in-person  Private colleges are too expensive  Sticker price does not take into account FA  My home is worth too much  Home value not considered for federal FA  Some institutions require the CollegeBoard Profile form that considers home equity

5  Significant part of the college process  Negative consequences if missed  Application for financial aid Federal State Collegeboard Profile (some institutions)  Application for Scholarships Check deadlines in Junior year Apply in Senior year

6  Federal  As of the date the application completed Single Widowed Divorced or Separated Parent the child lives with (or contributes 50% or more) Married or Remarried Parent the child lives with (or contributes 50% or more) Step-parent  CollegeBoard Profile  Non custodial parent may be considered

7  Not: Home one lives in, life insurance, retirement plans, pension funds, annuities, IRAs, Keogh plans  Includes:  Other real estate  Trust funds  UGMA and UTMA accounts (owner)  Money market  Mutual funds

8  Includes  CDs  Stock and stock options  Bonds  Other securities and commodities  Educational savings plans of all children Generally reported as a parent asset  Business 50.1% owner 100 or more full-time employees

9  Parent Earnings to Consider Assets  Earnings over $50,000 and  Filed a complete 1040  Parent age 45 (single parent)  Protects up to $14,900  $120 for every $1,000  Parent age 45 (two parents)  Protects up to $42,900  $120 for every $1,000  Student  $200 per $1,000 of assets

10  Student earnings up to $5,250 protected  Parent Income Reductions  State taxes  Social security taxes  Income protection allowance  % of the difference # in Family# in College 12 2 $16,230.00 $13,450.00 3 $20,210.00 $17,450.00 4 $24,970.00 $22,190.00 5 $29,460.00 $26,680.00 6 $34,460.00 $31,680.00

11 A need analysis formula established by Congress determines a student’s Expected Family Contribution; using information reported on the FAFSA. What?Why?Where? A comparative measure of how much a family can be expected to contribute over the course of an academic year Used to determine a student’s eligibility for most federal and state assistance Shown on the Student Aid Report (SAR) EFC Expected Family Contribution EFC Expected Family Contribution

12  If the FAFSA does not reflect the current situation  High medical or dental expenses  Recent unemployment/Loss of untaxed income  Death of a parent  Documentation Required (contact college)  Written explanation  Unemployment decision  Letter from agency such as social security  Death certificate

13 Tuition & Fees Room & Board Transportation Books & Supplies Miscellaneous Living Expenses Cost of Attendance (COA) +

14 Cost of Attendance (COA) Cost of Attendance (COA) Expected Family Contribution (EFC) Expected Family Contribution (EFC) Financial Need Financial Need - = How much aid can a student receive?

15 College A COA (Cost of Attendance) EFC (Expected Family Contribution) Financial Need $3,000 $10,000 $7,000 $3,000 $20,000 $17,000 - - = = $3,000 $35,000 $32,000 - = College B College C

16  Grants  Loans  Scholarships  More information available at:  www.studentaid.ed.gov  www.collegezone.com

17  www.fafsa4caster.ed.gov  EFC  Federal Financial Aid  College Costs  www.collegezone.com  Illinois Monetary Award Grant (MAP  Federal Supplemental Educational Opportunity Grant(SEOG)  College Website  Net Price Calculator

18 Questions???


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