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Financial Aid 101: An Overview Alex Muro Director of Financial Aid School of Forestry and Environmental Studies Assistant Director Student Financial Services Yale University The Forms You Need to Know US citizens or permanent residents FAFSA (Free Application for Federal Student Aid)

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Financial Aid 101:An Overview

Alex Muro

Director of Financial Aid

School of Forestry and Environmental Studies

Assistant Director

Student Financial Services

Yale University


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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

    • ** Aid not available at all schools **

    • Institutional requirements


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The Forms You Need to Know (continued)

  • FAFSA (Free Application for Federal Student Aid)

    • Required by all colleges and universities

    • Available January 1 for next school year

      • January 1, 2011 for 2011/2012

    • Free

    • www.fafsa.ed.gov

    • PIN

    • Eligibility for federal financial aid


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The Forms You Need to Know (continued)

  • CSS Financial Aid PROFILE

    • Required by some colleges and universities

    • Available October 1 for next school year

      • October 1, 2010 for 2011/2012

    • $25 for first school and $16 for each additional school

    • profileonline.collegeboard.com

    • Eligibility for institutional financial aid


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The Forms You Need to Know (continued)

  • Institutional Requirements – check with each individual school

    • Institutional application

    • Tax return for prior year

      • 2010 for 2011/2012

    • Verification worksheet


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Vocabulary

  • COA = Cost of Attendance (aka budget)

    • 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


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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


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www.collegeboard.com

  • Scholarship Search

  • Compare Aid Awards

  • College Financing Calculators

    • Expected Family Contribution (EFC)

      • Federal Methodology (FM)

      • Institutional Methodology (IM)


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“Insider” Tips

  • Comply with deadlines

    • Examples (Yale)

      • November 1 – Early Action (notification December 15)

      • March 15 – Regular Decision (… April 1)

      • April 15 – continuing students (… June 1)

    • Checklist for each school

    • Copies of all submitted forms

    • First come, first served

    • Not only the first year but every year!

  • Estimate when necessary


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“Insider” Tips (continued)

  • Focus on net price, not sticker price

    • All schools required to provide net price calculator on their websites by October 2011

  • Ask questions

  • Review all available financing options, such as loans and payment plans

  • Explain special circumstances with initial application

  • Notify financial aid office of any significant changes in income and assets as soon as possible


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Income

  • Taxed income

    • In general, Adjusted Gross Income from tax return

  • Untaxed income

    • Most common sources include contributions to retirement plans and child support received


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Assets

  • Cash

  • Checking and savings accounts

  • Investments (not including retirement)

  • Home equity (IM only)

  • Other real estate

  • College savings plans


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Federal Grants

  • Pell Grant

    • $5,550 annual maximum for 2010/2011

  • Supplemental Educational Opportunity Grant (SEOG)

    • Pell eligible

    • $4,000 annual maximum for 2010/2011

    • Amount and recipients determined by school


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Federal Grants (continued)

  • Teacher Education for Assistance for College and Higher Education (TEACH) Grant

    • $4,000 annual maximum for 2010/2011

    • 3.25 GPA or qualifying score on admissions test

    • Agree to teach in low income school in specific subject after graduation


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Loans

  • Federal

    • William D. Ford Federal Direct Loan Program (Direct Loan Program)

    • Direct Subsidized and Unsubsidized Loans for student borrowers (includes former Stafford Loans)

    • Direct Parent PLUS Loans for parent borrowers

  • Private


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Direct Loans

  • 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


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Direct Loans (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



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Direct Loan Forgiveness

  • Volunteer work

  • Military

  • Teaching

  • Legal and medical studies

  • Medicine

  • Public service

  • studentloans.gov


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Direct Parent PLUS Loan

  • Fixed interest rate of 7.9%

  • 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 Direct Unsubsidized Loan if in-school deferment requested


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Direct Parent PLUS Loan (continued)

  • Not available to parents of independent students

  • Annual loan limit = cost of attendance minus other aid


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Private Loans

  • Interest rates usually variable but sometimes capped

  • Credit check required

  • Repayment terms usually same as Direct Unsubsidized Loan

  • Consider state sponsored lenders

    • CT Higher Education Supplemental Loan Authority (CHESLA)


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Resources

  • US Department of Education

    studentaid.ed.gov

  • College Board

    www.collegeboard.com

  • FinAid Guide to Financial Aid

    www.finaid.org


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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!


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My Contact Information

Alex Muro

Email [email protected]

Phone Monday, Tuesday, and Friday

203-432-5105

Wednesday and Thursday

203-436-4068


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