Richard Stockton College of New Jersey

1. Richard Stockton College of New Jersey Facts, Figures and Fundamentals of Financial Aid 2009-2010

2. What is Financial Aid? • Scholarships • Grants • Loans • Employment opportunities

3. Types of Aid • Gift aid: Grants and scholarships (need-based or merit-based) • Self-help aid: Loans and employment (need-based or non-need-based)

4. Goals of Financial Aid • Primary goal is to assist students in paying for college and is achieved by: • Evaluating family’s ability to pay educational costs • Distributing limited resources in an equitable manner • Providing balance of gift aid and self-help aid

5. Definition of Need Cost of attendance (COA) Click here to access Stockton’s Cost of Attendance – Expected family contribution (EFC) = Need

6. Federal Methodology Federal Methodology is the formula created by Congress to determine the Expected Family Contribution (EFC).

7. Principles of Need Analysis • To extent they are able, parents have primary responsibility to pay for dependent student’s education • Students also have responsibility to contribute to educational costs • Families should be evaluated in their present financial condition • Family’s estimated ability to pay educational costs must be evaluated in equitable and consistent manner, recognizing that special circumstances may affect family’s ability to pay

8. Independent Student Definition • At least 24 years old by December 31 of award year covered by the FAFSA; • Graduate or professional student; • Married; • Has children or dependents (other than a spouse) for whom the student provides more than half support; • Veteran of U.S. Armed Forces or currently serving on active duty (for other then training purposes) in the Armed Forces; or • At any time since you turned age 13, were both your parents deceased, were you in foster care, or were you a dependent/ward of the court? • Are you or were you an emancipated minor as determined by a court in your state of legal residence? • Are you or were you in a legal guardianship as determined by a court in your state of legal residence? • At any time on or after July 1, 2008 did your high school or school district homeless liaison determine that you were an unaccompanied youth who was homeless? • At any time on or after July 1, 2008 did the director of an emergency shelter or transitional housing program funded by the U.S. Department of Housing and Urban Development determine that you were an unaccompanied youth who was homeless? • At any time on or after July 1, 2008, did the director of a runaway or homeless youth basic center or transitional living program determine that you were an unaccompanied youth who was homeless or were self-supporting and at risk of being homeless? • Determined to be “independent” by financial aid administrator based on documented unusual circumstances

9. Federal Pell Grants • Awarded to eligible undergraduates pursuing first baccalaureate degree • Portable • Actual award amount based on COA, EFC, and enrollment status

10. Federal Supplemental Educational Opportunity Grants (FSEOG) • Eligible students: • Undergraduates pursuing first baccalaureate degree • Awarded first to students with “exceptional financial need” (i.e., students with lowest EFCs at that school) • Priority to Federal Pell Grant recipients • Annual award amounts: • $400 minimum • $4,000 maximum

11. Federal Work-Study (FWS) Earnings • Eligible students: Undergraduate and graduate students • Employment may be on or off campus • Eligible employers: • Schools • Federal, state, or local public agencies • Certain private nonprofit and for-profit organizations • Schools must use portion of FWS funds for community service employment activities

12. Federal Perkins Loans • Eligible students: • Undergraduate and graduate students • Priority to students who show “exceptional need,” as defined by school • Loan amount varies • Maximum annual loan amounts: • $5,500—undergraduate students • $8,000—graduate students

13. Federal Perkins Loans • Interest rate: 5% • 9-month grace period • Repayment period may be up to10 years • Deferment and cancellation provisions available

14. Stafford Loans • Student loans available under: • Federal Direct Education Loan Program (funds are lent to student and parent borrowers U.S. Department of Education.) • School determines loan eligibility and delivers loan proceeds to students

15. Stafford Loans • Subsidized: Must demonstrate “need” • Unsubsidized: Not based on “need” • Base annual loan limits (combined subsidized and unsubsidized): • $3,500 for freshman (fewer than 32 credits) • $4,500 for sophomore (32-63 credits) • $5,500 for each remaining undergraduate year • $8,500 for each year of graduate/professional study

16. Stafford Loans • Additional unsubsidized loan eligibility for independent undergraduate, graduate, and dependent students whose parents are ineligible to borrow PLUS: • $4,000 per year for 1st and 2nd year undergraduates • $5,000 per year for remaining years of undergraduate study • $12,000 per year for graduate study

17. Stafford Loans • Repayment begins after 6-month grace period • Maximum repayment period between 10 and 30 years depending on repayment plan chosen • Deferment and cancellation provisions available

18. PLUS • Parent loan program for parents of dependent undergraduate students as well as graduate students • Annual loan limit: COA minus other aid

19. PLUS • Loan fees based on principal amount of each loan • Repayment begins 60 days after loan is fully disbursed

20. General Student Eligibility Criteria • Must be enrolled or accepted for enrollment in eligible program of study • Must be pursuing degree, certificate, or other recognized credential • Must be U.S. citizen or eligible noncitizen • Must be registered with Selective Service (if male and required) • May not have eligibility suspended or terminated due to drug-related conviction while receiving federal student aid.

21. General Student Eligibility Criteria • Must have valid Social Security Number (SSN) • May not be in default on a federal student loan • Must not owe an overpayment of federal grant or loan funds • Must be making satisfactory academic progress (as defined by school)

22. Application Process • Request your pin number at www.pin.ed.gov • Apply after January 1 • File online www.fafsa.ed.gov • Federal School Code: 009345 –Richard Stockton College • Priority deadline March 1

23. FAFSA on the Web • Web site: www.fafsa.ed.gov • 2009-10 FAFSA on the Web available on or after January 1 • Pre-Application Worksheet: • Available prior to January 1st • Questions follow order of FAFSA on the Web

24. FAFSA on the Web • Good reasons to file electronically: • Built-in edits to help prevent costly errors • Skip-logic allows student and/or parent to skip unnecessary questions • More timely submission of original application and any necessary corrections • More detailed instructions and “help” for common questions • Ability to check application status on-line • Simplified renewal application process

25. PIN Registration • Web site: www.pin.ed.gov • Can get PIN before January 1 • May be used by students and parents throughout aid process, including subsequent school years

26. Frequent FAFSA Errors • Parent and student 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

27. FAFSA Processing Results • Central Processing System (CPS) notifies student of FAFSA processing results by: • Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s e-mail address was not provided • SAR Information Acknowledgement if filed electronically via FAFSA on the Web and student’s e-mail address was not provided

28. FAFSA Processing Results • CPS notifies student of FAFSA processing results by: • E-mail notification containing a direct link to student’s on-line SAR if student’s e-mail was provided on paper or electronic FAFSA • Student with PIN can view SAR on-line at www.fafsa.ed.gov

29. Making Corrections • If necessary, corrections to FAFSA data may be made by: • Using FAFSA on the Web (www.fafsa.ed.gov) if student has a PIN; • Submitting documentation to school’s financial aid office

30. Other Sources of Funds • State grants, scholarships, loans, and work programs • School need-based and non-need-based programs (e.g., academic based scholarships and grants) • Private business scholarships (e.g., Wal-Mart, Gates Foundation, etc.) • Civic organization scholarships (e.g., PTA, Elks Club, etc.)

31. Avoid Being Scammed To check legitimacy of scholarship search services or individuals, for information about financial aid scams, and tips to avoid being scammed visit these Web sites: • U.S. Department of Education: www.studentaid.ed.gov • Federal Trade Commission: www.ftc.gov/scholarshipscams • Better Business Bureau: www.bbb.com

32. Private Scholarship Search Free Internet scholarship search engines: • FinAid on the Web: www.finaid.org • College Board: www.collegeboard.com • FastWeb: www.fastweb.monster.com • GoCollege: The Collegiate Websource: www.gocollege.com

33. Private Scholarship Search • Local library resources • Local businesses and civic organizations • Parents’ employers

34. Good Luck!