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All About Financial Aid

All About Financial Aid. Presented By: New York State Financial Aid Administrators’ Association And Oswego State University. Your Guide This Evening. Kathy Flaherty Assistant Director, Financial Aid SUNY Oswego. Tonight’s Topics. What is financial aid How much will it cost

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All About Financial Aid

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  1. All About Financial Aid Presented By: New York State Financial Aid Administrators’ Association And Oswego State University

  2. Your Guide This Evening Kathy Flaherty Assistant Director, Financial Aid SUNY Oswego

  3. Tonight’s Topics • What is financial aid • How much will it cost • Expected Family Contribution • What is financial need • What aid is available • How to apply (FAFSA) • FAFSA4Caster • Special Circumstances

  4. About College Costs • College is expensive, but worth it • Sound investment • More than just tuition • Costs vary by type of college • Community College, Public College, Private College • Look at costs for full education • 4 – 6 years total, and beyond….

  5. Cost of Attendance Tuition and Fees Books & supplies Room and Board Transportation Some Personal Costs Loan Fees Disability Child Care Study Abroad

  6. Typical College Costs

  7. Paying for College: What is your plan • The money tree • “hope” • Scholarships • Financial aid

  8. Expected Family Contribution • Amount family can reasonably be expected to contribute • BUT NOT what the family will pay • Remains the same regardless of college price tag • Calculated from Federal formula and form (FAFSA/Profile) • 2 components: • Parent income/resources • Student income/resources

  9. What is Financial Need Cost of Attendance • Expected Family Contribution • Private Resources = Financial Need Amount of Financial Need determines aid received * Note: Colleges may not be able to offer enough aid to meet your financial needs

  10. What Is Financial Aid Funds provided to students/families to help pay for college educational expenses Includes Scholarships Grants Loans Employment Job Scholarship LLoan Grants

  11. Types of Aid • Scholarships • No repayment • Grants • No repayment • Based on Need • Loans • Repayment usually after education finished • Only borrow what is needed • Investment in future • Many types • Employment • Paycheck or compensation (room/board)

  12. Federal Government State Government Colleges Private Sources Civic Organizations Schools Religious Organizations Employers Sources of Aid

  13. Federal Government • Largest source • Awarded mainly based on financial need • Apply every year (FAFSA)

  14. Federal Grants • Pell Grant • Need Based • Up to $5,550 (2011-2012) • Supplemental Educational Opportunity Grant • Need Based • Targeted at lowest incomes • Varies between colleges • $100 - $4000 annual award

  15. TEACH Grant • Teacher Education Assistance for College and Higher Education • 75% percentile on admissions test/3.25 GPA • Must agree to teach at least 4 years • High need subject, low-income school • Failure to complete requirement • Grant becomes interest bearing loan (unsubsidized)

  16. State Aid • Both Merit and Need-Based • Residency Requirements • Apply every year (State form)

  17. New York State Grant • Tuition Assistance Program • Attend College in New York State • Award Range $500- $5500 • NY State Net Taxable Income < $80,500 • Part –time (APTS)

  18. College Scholarships • Tips to consider: • Merit vs. Need • Academic, Athletic, Talent, Ethnic • Family’s resources • School determines • Variable • Part of admissions process • Separate Application? • Renewable?

  19. Private Sources • Use reputable websites • www.finaid.org • www.fastweb.com • Your high school guidance office • Watch for deadlines • College • Public libraries • Local service organizations • Parents’ place of employment

  20. Loan Programs Federal Direct Stafford Loans (Student) Perkins Loan (Student) Federal Direct PLUS Loan (Parent) Alternative Student Loans (Private)

  21. Federal Loans • Perkins Loan • Low interest, subsidized • Highest need • Repayment after graduation • Awards vary • Direct Loans (Stafford) • Student’s loan • Need based • Repayment after graduation • Subsidized and Unsubsidized

  22. Federal Direct Stafford Loans Subsidized Direct Loan (Student) • Government pays interest while in school • Freshmen - $3,500 • Sophs - $4,500 • Junior/Senior - $5,500 • Interest = 3.4% • 6 month grace Unsubsidized Direct Loan (Student) • All eligible students • Regardless of income or assets • Interest = 6.8% • $2,000 annual loan

  23. A Word About Loan Interestat 6.8 % interest

  24. Parent Loans • Not based on need • Cost of Attendance less financial aid awarded • Good credit history • If credit history is not good, see financial aid officer • Repayment may begin after student graduates • Current interest rate = 7.9% • Processing fees apply

  25. Student Employment • Federal Work Study • Institutional Job programs • Opportunity to connect with college • Many benefits

  26. Apply for Financial Aid • Complete the FAFSA on-line • Apply for PIN number (student and parent) • For 2012-2013, FAFSA no earlier than January 1, 2012 • Application deadlines/priority dates • Use estimated figures if necessary • BUT be sure to update information after taxes are completed • Apply every year

  27. PIN Number • Electronic signature for • FAFSA • Loan application signature • Research aid database (NSLDS) • Protect your number

  28. PIN Registration

  29. Why File On Line • Built-in edits • Skip-logic allows to skip unnecessary questions • Timely submission • On-line help with questions • Check application status on-line • Simplified future application

  30. FAFSA on the Web (FOTW) www.fafsa.ed.gov

  31. FAFSA on the Web (FOTW) www.fafsa.gov

  32. The status message on this page indicates early Title IV eligibility for the student based on their valid Social Security Number, citizenship status, and drug convictions.

  33. Error messages are shown in a RED box at the top of the page and lists multiple errors at one time. • The error graphic is also shown next to each question that will need to be answered or corrected.

  34. Pages that contain only parental questions are now PURPLE. • Basic demographic information for the parents is collected on the Parent Demographic Information page.

  35. If the student’s parent is single, divorced, or widowed, the student will only see questions for the one parent. • The Virtual Keyboard icon is present for the parent’s Social Security Number and Date of Birth.

  36. IRS Data • New this year • At least 2 weeks after • Complete federal taxes • IRS Data Retrieval Tool • Voluntary • Could reduce docs requested by Financial Aid Office • How it works

  37. The confirmation number will contain the student’s randomly generated identification number. This will replace the student’s current confirmation number which is composed of their Social Security Number and first two letters of their last name.

  38. Estimate Eligibility (FAFSA4caster) • On line tool • Helps families prepare financially for college • Asks for data needed for FAFSA • Estimates Pell Grant eligibility • www.FAFSA4caster.ed.gov

  39. Early Results

  40. Aid Application Process Family Collects Information Evaluate Financial Aid Offers Fill Out FAFSA4caster Complete FAFSA online Receive Financial Aid Award Letter Review Student Aid Report

  41. Financial Aid Timeline • January • Apply for PIN • Research Private Scholarships • February • Complete FAFSA • March • Financial Aid award packages mailed • April • Compare Award Notices • May • Make College Choice

  42. Special Circumstances • Cannot be reported on FAFSA • Contact financial aid office(s) • Examples of special circumstances • Change in employment status • Medical bills not covered by insurance • Change in parent’s marital status • Unusual dependent care expenses • Student is unable to obtain parental information due to incarceration, abusive situation or no relationship with parents

  43. Other Payment Options • College Savings Plans (529) • New York Saves • Time Payment Plans • Offered by Colleges • Less expensive than borrowing

  44. New York Saves (529 Plan) https://uii.nysaves.s.upromise.com/ https://uii.nysaves.s.upromise.com/

  45. Use Tax Credits • Federal • American Opportunity Credit • Up to $2500 • Life-long Learning Credit • Up to $2000 • State

  46. Veteran Education Benefits • Post 9/11 GI Bill • Transfer to Dependents • Yellow Ribbon Program

  47. Money Management • Borrowing for College • Investment in their future • What is a loan • Don’t over borrow • Credit cards • Use and misuse • Building good credit • Bank Account • Direct Deposit • Career Services • Earnings vs debt repayment

  48. Helpful Web Sites • www.pin.ed.gov • www.fafsa.gov • www.hesc.com • www.finaid.org • www.oswego.edu/financial

  49. New York Higher Education Services Corporation • www. hesc.com

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