1. Financial Aid Basics for Parents David R. Gelinas Senior Associate Dean Office of Admission and Financial Aid 2009

2. What will we cover? Applying for Aid Cost of Attendance Need-Based Aid Merit-Based Aid Packaging Consumer Tips Questions

3. What are the purposes of need-based financial aid? Make higher education accessible to students who can’t afford it on their own Enable student to apply to first- choice college Attend college based on best fit Equity in distributing limited funds

4. What assumptions lie behind need-based aid? Students and parents contribute to the extent they’re able Similar treatment for similar circumstances More expected from those with greater resources

5. How do students apply for financial aid? FAFSA Free Application for Federal Student Aid www.FAFSA.ed.gov CSS Profile Profileonline.CollegeBoard.com At College’s Discretion Tax returns and W-2 forms Non-custodial parent PROFILE Institutional application

6. Dependent or Independent? Federal Definition for 2010-11 Were you born before Jan. 1, 1987? As of today, are you married? Will you be working on a master’s or doctorate? Are you currently serving on active duty in the US Armed forces (other than training)? Are you a veteran of US Armed Forces? Do you have children who live with you and receive more than half their support from you? When you were 13, were both your parents deceased, were you in foster care or a ward of the court?

7. Dependent or Independent, cont. Are you an emancipated minor as determined by a state court? Are you in legal guardianship as determined by a state court? Have you been declared by an emergency shelter director funded by HUD to be homeless? Did the director of runaway/homeless shelter determine you to be homeless or self-supporting?

8. How is eligibility determined? Cost of education - Expected Financial Assistance (outside resources) -Family contribution = Student’s financial need

9. What is included in cost of education? Tuition and fees Room and board Books and supplies Transportation Miscellaneous personal expenses

10. What other optional costs might be included? Computer Child/dependent care costs Specialized equipment Supportive needs

11. What are outside resources? Scholarships from non-institutional sources Clubs and civic organizations Churches Employers Foundations Certain types of benefits Private gifts

12. How is the family contribution determined? Parent contribution from income (after allowances) Parent contribution from assets (after allowances) Student contribution from income and assets

13. How is financial need met? Gift Aid Grants Scholarships Self-Help Aid Student Loans Employment Awarding strategies vary by institution

14. What are merit-based scholarships? Availability varies from institution to institution Strategies underlying merit awards vary Recruiting device Awarded after student is admitted Procedures for being considered vary Nomination Scholarship application Admission application

15. Questions To Ask About Merit- Based Aid Is the scholarship renewable? If so, what are the requirements for renewal? Will it affect my need-based aid eligibility?

16. What are athletic scholarships? Based on athletic talent Usually awarded by athletics department, not admission/financial aid office Subject to governing body rules

17. What are the components of a financial aid package? Gift Aid Grants (Institutional, Federal, and State) Merit-Based Scholarships Self Help Loans (student and parent) FFEL and Direct Loan Programs oStafford and Perkins Parent Loans (PLUS) Alternative Loans Student Employment

18. Recap: What is financial need? Tuition Parent Contribution EFC (constant) Books and Supplies Transportation Room and Board Student Contribution Estimated Financial Assistance (Outside Resources) EFA _ _ = Need (variable) Cost (variable)

19. How is need met? Sample Aid Packages DavidsonPublic U.Private U. Cost$48,000$22,000$35,000 EFC$10,000 Need$38,000$12,000$25,000 Merit$0 $10,000 Grant$35,900$5,000$7,000 Loan$0$3,500$4,000 Work Study$2,100$1,800$2,000 Total Aid$38,000$10,300$23,000 Unmet Need$0$1,700$2,000 Total Paid $10,000$11,700+loan$12,000+loan

20. Other Helpful Options Summer/academic year employment Payment plans Federal Stafford/Direct Loans Federal Perkins Loans (at some institutions) Federal PLUS Loans Lines of credit and home equity loans

21. What are other things you should know? Deadlines are important Early Decision/Early Action Need-blind vs. need-sensitive May 1: National Candidates Reply Date

22. What about the current economic situation? Institutions may choose to consider individual family circumstances at different times throughout year Might affect a family’s funding options Might not affect the expected family contribution

23. Consumer Tips Avoid fee-based financial aid consultants Avoid scholarship programs that charge application fees Avoid scholarship search services that charge fees

24. On-line Resources The College Board www.collegeboard.com SmartStudent Guide to Financial Aid www.finaid.org Federal government www.ed.gov Scholarship Web sites School Web sites www.davidson.edu

25. Questions? Thank you! This presentation created by: John B. Leach Senior Assistant Dean Office of Admission and Financial Aid