1. Student Financial Aid What High School Seniors & Parents Should Know

2. 2 What is Financial Aid? Financial aid helps pay the cost of attending college Some financial aid programs are need-based Some financial aid programs are based on other criteria – not need

3. 3 Sources of Financial Aid Federal government New York State Colleges – Institutional aid Other sources –Businesses –Foundations –Clubs/Organizations

4. 4 Types of Financial Aid Awards Scholarships – free money Grants – free money Work Study Loans

5. 5 Need-based Financial Aid Need-based Aid –Your family’s ability to pay for educational costs is evaluated –Determined from information collected on need-based aid applications FAFSA, CSS Profile

6. 6 Definition of Need Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need

7. 7 Cost of Attendance (COA) Tuition and fees Room and board Books and supplies Transportation Miscellaneous expenses COA – EFC = Financial Need

8. 8 Expected Family Contribution (EFC) Calculated using a federal formula Includes contributions from parents and student Stays the same regardless of college selected COA – EFC = Financial Need

9. 9 Examples of Need Determination CollegeACollegeBCollegeC COA COA $ 15,000 $30,000$60,000 - EFC 10,000 10,000 = Financial Need $ 5,000 $ 20,000 $50,000

10. Aid Programs & The Application Process

11. 11 How to Apply for Federal Aid The newest FAFSA application is made available January 1 st of senior year Filing online at www.fafsa.gov is highly recommended!www.fafsa.gov –Worksheet includes built-in edits –Skip-logic for faster filing –Check status, make corrections online Be sure to check your colleges’ FAFSA filing deadlines

12. 12 FAFSA.gov

13. 13 FAFSA: Federal Student Aid Programs Pell Grant Supplemental Educational Opportunity Grant Work-Study Perkins Loan Direct Stafford Loan –Subsidized or Unsubsidized Direct PLUS Loan

14. 14 FAFSA: Creating an FSA ID Go to FSAID.ed.gov to establish FSA IDs for both the student and a parent

15. 15 FAFSA: Income Information Needed –Student, Parent Income Tax Information 2015 Federal 1040/AEZ, 2015 W-2 Can use prior year taxes as estimate –Records of untaxed income Such as child support received, interest income –Information on cash, savings and checking account balances –Investments, including stocks, bonds, real estate Excludes retirement accounts, value of primary residence

16. 16 FAFSA: Student Section Student Information & Eligibility –Basic info: address, email, name of high school, citizenship and Selective Service Status College Information –Up to 10 colleges may be listed; can be updated by correction Dependency Determination –Questions that will determine student’s dependency status

17. 17 FAFSA: Parent, Income, Signature Section Parent Information & Income –Marital status, name, date of birth, SSN, state of residence –Household size, Number in college –Income from 2015 tax return (or estimate), untaxed income, asset information Student Income Signature Section –Sign using the student and parent’s FSA ID

18. 18 FAFSA: The IRS Data Retrieval Tool Connects to IRS for tax data of completed tax returns Electronic filers – about 2 weeks after submittal Use for original FAFSA and corrections

19. 19 FAFSA Questions: Eligibility If we don’t think we qualify for need-based financial aid, do we still file the FAFSA? –Many families mistakenly believe they do not qualify –FAFSA must be filed to borrow federal student loans –Consult with colleges, FAFSA may be needed for merit-based aid

20. 20 FAFSA Questions: Dependence Can a student apply for financial aid without reporting their parent’s information? –In most cases, students under 24 will be required to report parent information –For special circumstances, consult with the financial aid office

21. 21 FAFSA Questions: Parents If a student’s parents are divorced or separated, whose info is provided? –Custodial Parent What if both biological parents are living together but unmarried? –Both parents file together Do stepparents report their income? –Yes

22. 22 FAFSA Questions: Assets Do you report your home value or retirement accounts on the FAFSA as an asset? –No, your primary residence and tax deferred retirement accounts are excluded from FAFSA How are 529 college savings plans treated? –The value of 529 Plans, for all children, need to be reported as a parent investment on the FAFSA

23. 23 How to Apply for New York State Aid

24. 24 Anytime TAP-on-the-Web Application

25. 25 NYS Student Aid Programs: TAP Tuition Assistance Program (TAP) –Undergraduate students only –Up to $5,165/year –Full-time and part-time study in NYS –Need-based grant Calculated on NYS Income Tax information

26. 26 Other NYS Student Aid Programs Scholarships for Academic Excellence Achievement & Investment in Merit Scholarship (AIMS) STEM Incentive Program Math & Science Teaching Incentive Program Masters-in-Education Teacher Incentive Scholarship Veterans Tuition Award

27. 27 NYS Student Aid Programs: STEM NYS STEM Incentive Program –Awards full in-state tuition scholarship at SUNY/CUNY colleges or universities –Graduating seniors ranked in top 10% of class –For undergraduate programs leading to a degree in Science, Technology, Engineering or Mathematics –Must execute service agreement –Apply online at hesc.ny.gov after graduation

28. 28 Apply for Other NYS Programs at hesc.ny.gov

29. 29 How to Apply for Institutional Aid Depends on application process at the college –Some colleges use information on the admissions application to determine eligibility for merit-based awards –The FAFSA may be used by the college to determine eligibility for need-based institutional aid May require more applications than the FAFSA –Is the CSS Profile or another institutional financial aid form required?

30. 30 The CSS Profile Private application used by some colleges for awarding institutional aid Collects more income, asset, expense info than FAFSA –Non-custodial parent income, retirement account balances, home values, etc. Application is not free, fee waivers are available Apply starting October 1 st of senior year online at collegeboard.org

31. 31 CSS Profile @ collegeboard.org

32. 32 Research College Financial Aid Websites

33. 33 Use Net Price Calculators

34. 34 Other Sources: Outside Aid Private scholarship programs are widely available –sponsored by charity, business, religious, civic and minority organizations Each have their own application process, eligibility criteria, and deadlines Inquire with each college about impact on financial aid package Be organized and start applying early!

35. 35 Scholarship Searching Online scholarship search websites –Fastweb.com –Collegeboard.org –Scholarships.com Check your local library, employer or union Avoid scholarship scams –Unnecessary fees, ID theft

36. Next Steps

37. 37 Special Circumstances Colleges do address changes to income that can affect financial aid applications –Unemployment, divorce/separation, other loss of income Follow college’s policy for review –Many have a designated form, process When addressing special circumstances: –Provide written explaination with supporting documentation

38. 38 After Applications are Filed… Schools student listed on FAFSA receive an electronic record Schools begin financial aid packaging process –Student may be required to provide additional documentation at this time When processing is finished, an award letter is sent to student

39. 39 Financial Aid Award Letter College award letter contains –Amount of federal aid for which students are eligible, including loan options –Amount of state aid for which students are eligible –Institutional aid

40. 40 Aid Appeals & Reconsideration Follow college’s policy –Some colleges do not consider appeals When appealing: –Use personal appeal letters –Make wise comparisons between colleges and their aid offers –Be realistic!

41. 41 Thank You! NYS Higher Education Services Corporation 99 Washington Avenue Albany, NY 12255 www.hesc.ny.gov 1-888-NYSHESC (1-888-697-4372)