1. Comparing Financial Aid Packages

2. “According to student loan servicer Sallie Mae, 65% of families used grants and scholarships to pay for college in 2013, up from 50% of families five years prior. What’s more, 49% of parents say they’re not regularly setting aside money to college savings, and 70% of those parents say the reason they’re not saving is because they simply can’t afford to.” Source http://www.forbes.com/sites/maggiemcgrath/2014/03/31/10-rules-for-decoding-college-financial-aid-award-letters/http://www.forbes.com/sites/maggiemcgrath/2014/03/31/10-rules-for-decoding-college-financial-aid-award-letters/

3. What happens after you submit the FAFSA? A Student Aid Report (SAR) is sent to you Colleges that you have been accepted to will send you: –Preliminary Aid Estimates –Financial Aid Award Letters

4. What is a “Financial Aid Award”? LoansLoans – typically make up more than ½ of the “financial aid award” and must be repaid ScholarshipsScholarships – free money based on criteria of donor GrantsGrants – free money typically based on financial need Work StudyWork Study – money you earn while going to college Institutional AwardsInstitutional Awards – free money from the college

5. Federal Stafford Loan Government Subsidized or Unsubsidized Loan Subsidized means you do not have to pay interest while in school Unsubsidized means interest accrues while in school (amount owed at graduation will be more that the amount you borrowed) Interest rate at 3.9% in 2015

6. Perkins Loan Need based Interest rate is 5% Repayment begins 9 months after your get out of college

7. Parent PLUS Loan Interest rate at 7.21% for 2014-15 Loan in parent’s name

8. Federal College Work Study You must find a job on campus Jobs offered on a first-come-first-served basis No guarantee you’ll get a job No guarantee of hours or amount of money offered in award package.

9. Ask for Professional Judgement Review Professional judgement is asking the college to reconsider your aid package based on changes to your financial need. Examples: medical bills, loss of job, or tuition expense for a sibling, divorce, death, a better offer at another school. Could ask to change loan money for more work-study

10. Find Out the School’s Scholarship Policy If you get additional outside scholarships, the school may reduce the scholarships that they are offering you Some school will use outside scholarships to reduce the amount you will have to pay in loans

11. How Financial Need is Determined Cost of Attendance (COA) $35,000 Expected Family Contribution (EFC) - 10,000 Financial Need $25,000 This is the amount that Financial Aid Office will try to come up with. It is what is called a Financial Aid Package

12. Good News about EFC If you filled out the FAFSA, and you and a sibling are going to college at the same time, your Expected Family Contribution (EFC) may be cut in half! EFC changes from year to year and it could go down as your financial situation changes

13. Which college is the best deal? Nuview University Ivy League University Cost of Attendance $20,000$40,000 Your EFC*$9,000 Remaining Financial Need (RFN) $11,000$31,000 *EFC is the same regardless of the university you choose to attend

14. Net Price Trumps Overall Cost youWhen you look at aid packages, look at the net cost (actual cost to you) and not the overall cost of attendance (sticker price)

15. Which college is the best deal? Nuview University Ivy League University Cost of Attendance$20,000$40,000 Your EFC*$9,000 Remaining Financial Need (RFN) $11,000$31,000 Grants$1,500$0 Scholarships$4,500$10,000 Work Study$500$1,000 Loans$1,500$20,000 Total Awards$8,000$31,000

16. Worksheet

17. Online Comparison Tool http://www.finaid.org/calculators/awardletter.phtml