1. Financing A College Education
Carolyn Lindley, Northwestern University
Jerry Cebrzynski, Lake Forest College

2. Top 10 Things to Know About Financial Aid for College

3. College cost planning
How a College can help
What exactly is financial aid
The financial aid “language”
Application process in a nutshell
How eligibility is determined
Other resources

5. Choosing a College Best Fit
Program
Location
Size
Mix of Students
Academics
Extracurricular
Facilities
Financial Considerations

6. Recent Headlines

7. Current College Costs 2010-2011
Average Tuition, Fees, Room, Board
4 Year Public: $16,000
4 Year Private: $33,000
Average personal expenses [clothing, laundry, toiletries, recreation, entertainment] = $2,000
Books = $700 - $1,000 per year

8. Tuition and fees at private colleges and universities increased by 4
Tuition and fees at private colleges and universities increased by 4.5% for (the second smallest increase in 37 years).
Tuition and fees at public universities increased by 7.9% for (6% at 2-year public colleges).

9. 1. Cost of attendance (COA) should not be a mystery

10. Sticker Price vs. After Financial Aid/Scholarship Price
Direct costs = on tuition invoice
Tuition, fees, housing, meal plan
Indirect costs = related educational expenses
Books, supplies, transportation, laundry, …
COA should reflect direct and indirect expenses

11. Net Price Calculator Tool
Required by Fall 2011
Net Price Calculator Tool

12. 2. Financial Aid is “A Partnership”
To the extent they are able, parents have primary responsibility to pay for their dependent children’s education
Students also have a responsibility to contribute to their educational costs
Families should be evaluated in their appropriate financial condition
A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect its ability to pay 7

13. The Financial Aid Office
Is committed to removing financial barriers
Is an advocate for the student at all levels
Educates students and families through quality consumer information
Provides services that do not discriminate
Maintains the highest level of professionalism 7

14. 3. What is Financial Aid? Scholarships Grants Student Loans Work-Study2

15. Four major sources of funding:
U.S. Department of Education
States
Colleges and Universities
Private Organizations

16. Categories of Financial Aid
Merit-based
From College as well as from foundations, etc.
Specific criteria eligibility
Solely based on student’s credentials

17. Categories of Financial Aid
Need-based
Calculated from FAFSA and other aid applications
Sources can be federal, state, institutional
Types include grants, student loans, work-study

18. 4. Everyone should apply for aid
Many types and sources of aid are available
On the fence?
67% of all students receive aid [88% at private colleges
Sometimes being rejected for federal aid is a prerequisite for receiving private awards

19. Undergraduate Aid by Source, 2009-10
Source: The College Board, Trends in Student Aid 2009

20. So . . . how does the process begin?

21. 5. All aid applications are not the same
Free Application for Federal Student Aid (FAFSA)
Required by all schools;
Institutional Aid
Supplemental applications for more information
Scholarships – specific to organization/school

22. To apply for all federal and state aid, families must complete the...
The FAFSA collects basic financial data is used to determine the student’s eligibility by calculating an “index” #

23. Overview of the FAFSA 2011-2012 available in January
Submit it soon after January 1
7 steps 23

24. FAFSA on the Web (FOTW) English or Spanish
Skip logic and online editing
Electronic signature
Electronic notification
17 million (99%) FOTWs processed 10/11 so far

25. FAFSA on the Web Worksheet
4-page booklet containing:
Instructions
24 questions in 4 sections

26. Supplemental Financial Aid Applications
The College Scholarship Service Financial Aid PROFILE
A College’s own application for financial aid

27. 6. Special Circumstances Matter
When the numbers don’t tell the whole story
When the situation is expected to change (or has)
Must be able to document
consideration will vary from school to school

28. The Financial Aid Award Letter
(or “package” )
Will contain a combination of
scholarship, grant, loan and work-study funds
Why might “packages” be different?
cost of attendance
scholarship criteria and availability
institutional philosophy and funding
federal funding levels

29. 7. Decoding the Award Letter
Compare
COA
Total amount of aid
Types and sources
Ask questions
Is aid renewable?
Terms for renewing?
Will aid change from year to year?
Will costs increase?
Is more aid available if EFC decreases?

30. 8. Appeals Can request change in aid if there is a valid reason
Will it make a difference?
Is need already fully met?
Is more aid available?
Valid reasons
Special circumstances

31. 9. Deadlines are essential

32. Deadlines Know each College’s priority deadlines Contact school
Read and retain all communication you receive
Contact school
Merit scholarship deadlines
Early Action/Early Decision/Regular Decision deadlines
Deadlines for supplemental documents (tax returns, etc.)

33. Timeline Complete FAFSA after January 1
Receive a Student Aid Report (SAR) 72 hours later
Review SAR for correctness
Check if other additional application required or are beneficial
Receive Financial Aid Award Letter before May 1

34. FAQs Savings, stocks, other real estate 529 Plans Home equity
Estimate figures on FAFSA; adjust later
Divorced, separated, single parents
Assets included
Savings, stocks, other real estate
529 Plans
Assets not included
Home equity
Retirement accounts
Insurance policies, annuities
One FAFSA per student
Renewal of Aid

35. 10. Ask for Right here at HPHS, DHS A College’s Financial Aid Office
The Internet
College Web Sites