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Paying For College: Getting Started. Sewanhaka High S chool Dec 4 th , 2013. Gene Rogers Financial Aid officer, Student Financial Aid Molloy College 516-323-4207 [email protected] Molloy College. Molloy College. Fast Facts.

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Paying for college getting started

Paying For College: Getting Started

Sewanhaka High School

Dec 4th , 2013

Gene Rogers

Financial Aid officer, Student Financial Aid

Molloy College

516-323-4207

[email protected]


Molloy college

Molloy College


Molloy college1

Molloy College

Fast Facts

Res Halls opened in 2011..an additional one will open in Fall 2014.

Student-athletes compete in East Coast Conference (D2)

Molloy campus life includes more than 40 student clubs

  • Undergraduate- 3200 (est)

  • Graduate- 1100(est)

  • Majors include

  • Nursing, Education and more than 50 others

  • Located in Rockville Centre


Equal opportunity

Equal Opportunity

In our democracy every young person should have an equal opportunity to obtain a higher education, regardless of his station in life or financial means.– President John F. Kennedy


Warren buffett

Warren Buffett

  • “Investing in yourself is the best thing you can do”


Sources of financial assistance

Sources of Financial Assistance


College graduation may 2018 will you be here as a student or a proud parent lets hope so

College Graduation May 2018..Will YOU be here as a Student or a Proud Parent?..Lets hope so!


Free application for federal student aid fafsa

Free Application for Federal Student Aid (FAFSA)

  • Family’s personal and financial information required to perform need analysis is collected on FAFSA

  • Paper versions of FAFSA

    • “Regular” FAFSA

    • Renewal FAFSA

  • Electronic version of FAFSA

    • WWW.FAFSA.GOV

  • FAFSA can be processed after Jan 1st


Free application for federal student aid fafsa1

Free Application for Federal Student Aid (FAFSA)

U.S. Department of Education form that collects demographic and financial information

Federal aid eligibility determined by FAFSA

Must be filed annually

Some schools may use the results to award their own institutional aid

File on-line at www.fafsa.gov .

Available in English and Spanish


Federal student aid personal identification number fsa pin

Federal Student Aid Personal Identification Number (FSA PIN)

  • Website: www.pin.ed.gov

  • Sign FAFSA electronically

  • Not required, but speeds processing

  • May be used by students and parents throughout aid process, including subsequent school years


Paying for college getting started

FAFSA on the Web

www.fafsa.gov

  • Apply

  • Reapply

  • English and Spanish options

  • Access PIN Web site

  • Check status of application

  • View SAR information

  • Make corrections


Fafsa tips

FAFSA - Tips

  • The correct name, date of birth, and social security number are crucial

  • Round off figures to the nearest dollar

  • “You” and “Your” refers to the student

  • Read the instructions (if you are applying for NY State school..don’t forget to apply for TAP)


Frequent fafsa errors

Frequent FAFSA Errors

  • Social Security Numbers

  • Divorced/remarried parental information

  • Income earned by parents/stepparents

  • Untaxed income

  • U.S. income taxes paid

  • Household size

  • Number of household members in college

  • Real estate and investment net worth


School deadlines

Check with colleges directly!..March 1?April 1?..

School Deadlines

Don’t Drop the Ball


Fafsa on the web

FAFSA on the Web

Good reasons to file electronically:

Built-in edits to prevent costly errors

Skip-logic allows applicant to skip unnecessary questions

Option to utilize tax information directly downloaded thru IRS Data Retrieval tool.

Corrections to FAFSA application is quicker.

Instant “help” online for common questions available.


Fafsa continued

FAFSA continued…

For the 2014-2015 academic year, the FAFSA may be filed beginning January 1, 2014

High School seniors would fill out FAFSA anytime after January 1, 2014.

You may list up to 10 colleges to receive the results of your FAFSA


Key elements to fa eligibility

Key elements to FA eligibility

  • Primary income

  • Student and Parents

  • Savings (both)

  • Investments (both)

  • Real estate (Not your Home)

  • Household size (who lives with you )


Saving vehicles what impact do they have to fin aid

Saving Vehicles, what impact do they have to Fin Aid?

  • Child assets are assessed at 20%

  • Parent assets are assessed at 5.64%


Parent s assets

Parent’s assets

Parent’s income reported

Parent’s assets reported (with exception of home value, and retirements savings)

1st 45K of parents savings and investment value does not count in formula

Assessed at 5.64% (after the 1st 45K )


How does child support factor into fafsa

How does Child support factor into FAFSA??

  • Child support paid is included on the FAFSA

    If parent or step parent pays child support , info is included on FAFSA

    Child support rec’d (all children in household) is included.


Some schools may require css profile form

Some schools may require CSS/Profile Form

Check if College requires form

  • https://profileonline.collegeboard.com

  • Profile form digs deeper in family’s situation

  • Form costs $ to file $25 for 1st college…$16 for every additional college


What is the expected family contribution efc

What is the Expected Family Contribution (EFC)?

Amount family can reasonably be expected to contribute

Stays the same regardless of college

Two components

Parent contribution

Student contribution

Calculated using FAFSA data and a federal formula


Paying for college getting started

How Financial Need is DeterminedCost of Attendance- Expected Family Contribution= Financial Need

Tuition and Fees

Books and Supplies

Room and Board

Transportation

+ Miscellaneous Expenses

= Cost of Attendance

Expected

Family Contribution

Parent’s Contribution from Income

Parent’s Contribution from Assets

Student’s Contribution from Income

Student’s Contribution from Assets


Sample award package

Sample award package

DEF university (public)

COA = 25,000EFC = 25,000

FN= 0

You could be eligible for need based aid at one college but not another

  • ABC university (private)

  • COA= 50,000

  • EFC = 25,000

  • FN= 25,000


Sample efc s

Sample EFC’s

Family of 4..

Family of 5

Mom and Dad have combined income of $200K

No savings

Own their home

EFC 47K

  • Mom and Dad have combined incomes of

  • $150K

  • 60K in savings

  • Own their home

  • EFC = $33K


Sample efc s1

Sample EFC’s

Family of 3

Family of 6

One income family = 65K

15K in savings

Owns home

EFC = 4K

  • Single parent home

  • Parent earns 70K

  • No savings

  • Rents

  • EFC = 9K


Principles of need analysis

Principles of Need Analysis

  • 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 present 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


Special circumstances

Special Circumstances

Change in employment status

Medical expenses not covered by insurance

Unusual dependent care expenses

Natural Disaster


Affected by sandy

Affected by “Sandy”?

  • Even though home value is not factored into the FAFSA formula, there could be some things adjusted based on property damage (out of pocket expenses, etc) Write a letter of explanation to college


Irs fsa concept

IRS-FSA Concept

  • Federal Student Aid (FSA) and the Internal Revenue Service (IRS) have developed a collaborative solution to simplifies FAFSA completion.

  • Tax filer Retrieves Their Own Data

    • No Consent

    • Voluntary

  • Will allow some applicants that use FAFSA on the Web to retrieve their income tax data from the IRS.

  • IRS data can be automatically transferred to FOTW.

  • Affected by Government Shutdown…stay tuned!..


529 college savings plan

529 College Savings Plan

  • www.nysaves.org

  • www.savingforcollege.com

  • A 529 college savings program is a tax-advantaged savings plan that enables you to invest for college free of federal and, sometimes, state income taxes. You can use this investment to pay for tuition, certain room-and-board expenses, books, supplies, and other qualified higher-education expenses.


Saving for college gives you more options

Saving for college gives you more options

  • Bottom line: If you save for your child’s college expenses you reap the benefit of more attendance options for your child and your child may borrow less while attending college .

  • UG students who graduate with less debt have greater employment options and more opportunities for future education


Independent student definition

Independent Student Definition

  • At least 24 years old by December 31 of award year covered by FAFSA;

  • Graduate or professional student;

  • Married;

  • Has legal dependents other than a spouse;

  • Orphan or ward/dependent of the court;

  • Veteran of U.S. Armed Forces


Who s data on the fafsa

Who’s data on the FAFSA

  • Scenario 1

  • Student

  • Mom

  • Dad

  • Scenario 2

  • Student lives with Mom ( Mom is divorced from Birth Father).

  • Student and Mom only.


Who s data on fafsa

Who’s data on FAFSA?

  • Scenario 3

  • Student lives with Dad (dad is divorced from birth Mom)

  • Student and Dad

  • Scenario 4

  • Student lives with Mom and Mom is remarried

  • Student, Mom and StepDad..


What should i expect after i file

What should I expect after I file??

  • Student files FAFSA

  • Student and FA office rec’d data

  • FA office reviews data

  • FA office sends student “award” letter

  • Student needs to respond to accept or decline

  • In certain instances, colleges may require financial documents to process aid


Net price calculator

Net Price Calculator

  • COLLEGES ARE NOW REQUIRED TO HAVE ESTIMATING TOOLS ON THEIR WEBSITE ALLOWING FAMILES TO GET A REASONABILE ESTIMATE ON NET COSTS.


Show me the money

Show me the Money


What makes up a package

What Makes Up a Package

  • Federal Grants

  • State Grants

  • Intuitional Grants and Scholarships

  • Federal Loans

  • Federal Work-Study

  • Outside Scholarships

  • Private/Alternative Loans


Types of scholarships

Types of Scholarships

Consider all types of scholarships:

Academic merit

Athletic ability

Field of study

Ethnic background

Religious affiliation

Special interests

Consider all types of scholarships:

Acdemic merit

Athletic ability

Field of study

Ethnic background

Religious affiliation

Special interests


Private sources

Private Sources

  • Foundations, businesses, charitable organizations

  • Deadlines and application procedures vary widely

  • Begin researching private aid sources early

  • The Internet www.fastweb.com to name one


Civic organizations and churches

Civic Organizations and Churches

  • Research what is available in community

  • To what organizations and churches do student and family belong?

  • Application process usually occurs during spring of senior year

  • Small scholarships add up!


Employers

Employers

  • Companies may have scholarships available to the children of employees

  • Companies may have educational benefits for their employees


Pell grants

Pell Grants

  • Pell is an entitlement

  • Based on need

  • Max award could be upwards of $5,000

  • Does not run out

  • Deadline June 30th or last day of enrollment


Paying for college getting started

SEOG

  • Federal Grant

  • Based on need

  • Up to 4,000 per year

  • Limited Fund (it can run out)


Institutional grants

Institutional Grants

  • Academic Based Scholarships

  • Talent Based Scholarships (Athletic, Music, etc)

  • Need Based Grants/Scholarship


Paying for college getting started

TAP

  • State Grant

  • Based on net taxable income (less than 80k)

  • Full time/Part-Time enrollment status

  • Student can receive TAP for 8 semesters then he or she could be considered TAPPed Out (you like that one...I just made it up..)

  • May 1st deadline (APPLY VIA LINK AFTER FAFSA OR DIRECT AT WWW.TAPWEB.ORG


William d ford direct loans

Subsidized

3.86% (2013-2014)

Based on need

Federal government pays interest while student is in school

$3,500 for Freshman

Unsubsidized

3.86% fixed interest

Not based on need

Student is responsible for interest while in school

$5,500 for Freshman

William D Ford Direct loans


Direct plus loan for parents

Direct Plus Loan for Parents

For parents of dependent students

  • Borrow up to entire cost of college less financial aid

  • No adverse credit (parent must pass credit check)if you are denied…student can borrow additional unsb direct loan for $4K

  • Interest Rate 5.41%


Changes to aid in the future

Changes to Aid in the Future

  • President Obama is working on many changes to the federal loan programs and working to increase grants programs as well. Keep an eye on media outlets for updates


Paying for college getting started

  • Encourage parent and students to FILE EARLY!

  • FAFSA can be filed before taxes are completed. DON’T WAIT, ESTIMATE!

  • Advise parents and students to AVOID using websites, consultants, planners or services that charge money to apply for financial aid.


Questions

Questions??


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