Financial Aid 101: An Overview

1. Financial Aid 101:An Overview Alex Muro Assistant Director Student Financial Services Yale University

2. The Forms You Need to Know • US citizens or permanent residents • FAFSA (Free Application for Federal Student Aid) • CSS Financial Aid PROFILE • Institutional requirements • International students • ** Financial aid not available at all schools ** • College Board International Student Financial Aid Application • Institutional requirements

3. The Forms You Need to Know (continued) • FAFSA (Free Application for Federal Student Aid) • Required by all colleges and universities • Free • www.fafsa.ed.gov • PIN • Eligibility for federal financial aid

4. Financial Aid 101:An Overview Alex Muro Assistant Director Student Financial Services Yale University

5. The Forms You Need to Know (continued) • CSS Financial Aid PROFILE • Required by some colleges and universities • $25 for first school and $16 for each additional school • profileonline.collegeboard.com • Eligibility for institutional financial aid

6. The Forms You Need to Know • CSS Financial Aid PROFILE • Required by some colleges and universities • $25 for first school and $16 for each additional school • profileonline.collegeboard.com • Available October 1, 2008 for 2009/2010 • Institutional Application • Check with each individual school

7. The Forms You Need to Know (continued) • Institutional Requirements – check with each individual school • Institutional application • Tax return for prior year • e.g 2008 for 2009/2010 • Verification worksheet

8. www.collegeboard.com • Scholarship Search • Compare Aid Awards • College Financing Calculators • Expected Family Contribution (EFC) • Federal Methodology (FM) • Institutional Methodology (IM)

9. FM and IM – How Are They Different? • Divorced or separated parents • Business or capital losses • FAFSA Worksheet A • Private school expenses • Family-owned business • Home equity

10. “Insider” Tips • Comply with deadlines • Checklist for each school • Copies of all submitted forms • Not only the first year but every year! • Estimate when necessary • Ask questions • Focus on net price, not sticker price • Review all available financing options

11. “Insider” Tips (continued) • Explain special circumstances with initial application • Notify financial aid office of any significant changes in income and assets as soon as possible

12. Vocabulary • COA = Cost of Attendance • Direct expenses (tuition, room, board, fees) + indirect expenses (books, supplies, transportation, personal expenses) • EFC = Expected Family Contribution • What a family is expected to contribute toward the COA • Not same as what will be paid to school • Financial Need = COA minus EFC

13. Vocabulary (continued) • Need-based aid • Non need-based aid • Awarded on basis of student’s ability or talent or ethnic heritage • Meeting full need • Gapping • Need-aware admissions policy • Need-blind admissions policy

14. Income • Taxed income • In general, Adjusted Gross Income • Untaxed income • Most common sources include contributions to retirement plans and child support received

15. Assets • Cash • Checking and savings accounts • Investments (not including retirement) • Home equity (IM only) • Other real estate • College savings plans

16. Federal Grants • Pell Grant • $4731 maximum for 2008/2009 • Supplemental Educational Opportunity Grant (SEOG) • Pell eligible • $4000 maximum for 2008/2009 • Amount and recipients determined by school

17. Federal Grants (continued) • Academic Competitiveness Grant (ACG) • Pell eligible • $750 for first year student • $1300 for second year • Rigorous high school program of study • 3.0 GPA for second year • National Science and Mathematics Access to Retain Talent (SMART) Grant • Pell eligible • $4000 for each of third and fourth years • Eligible major • 3.0 GPA

18. Federal Grants (continued) • Teacher Education for Assistance for College and Higher Education (TEACH) Grant • $4000 maximum for 2008/2009 • 3.25 GPA or qualifying score on admissions test • Agree to teach in low income school in specific subject after graduation

19. Loans • Federal • Stafford for student borrowers • Parent PLUS for parent borrowers • Private

20. Federal Stafford Loan • Fixed interest rate of 6.8%* • No credit check required • No payments required while student is enrolled at least half-time (in-school deferment) and for 6 months after graduation (grace period) • Different repayment, deferment, and forbearance options

21. Federal Stafford Loan (continued) • Subsidized: need-based • Federal government pays interest on loan while student is in school and during grace period • Unsubsidized: not need-based • Student must make interest-only payments while in school and during grace period to avoid capitalization

22. Dependent Student without PLUS Denial

23. Federal Stafford Loan Forgiveness • Volunteer work • Military • Education • Medicine • Public Service • http://www.finaid.org/loans/forgiveness.phtml • http://www.finaid.org/loans/publicservice.phtml

24. Federal Parent PLUS Loan • Fixed interest rate of 8.5% • Credit check required • No debts more than 90 days past due • No bankruptcy, foreclosure or similar action within the past 5 years • Repayment terms same as unsubsidized Stafford loan if in-school deferment requested

25. Federal Parent PLUS Loan (continued) • Not available to parents of independent students • Annual loan limit = cost of attendance minus other aid

26. Private Loans • Interest rates usually variable but sometimes capped • Credit check required • Repayment terms usually same as unsubsidized Stafford loan • Consider state sponsored lenders • CT Student Loan Foundation (CSLF) • CT Higher Education Supplemental Loan Authority (CHESLA)

27. Resources • US Department of Education studentaid.ed.gov • College Board www.collegeboard.com • FinAid Guide to Financial Aid www.finaid.org

28. Resources (continued) • High school • College or university to which student is applying • Beware of scams! • Most, if not all, information that you may need is available for free!

29. My Contact Information Alex Muro Email alexander.muro@yale.edu Phone 203-436-4068