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Financial Aid for College. Scope of this Workshop . What is financial aid College costs How to apply Determination of eligibility Need-based programs Alternatives. Types of Student Financial Aid . Grants Scholarships Loans Employment. Student Financial Aid. Merit-based academics

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Presentation Transcript
scope of this workshop
Scope of this Workshop
  • What is financial aid
  • College costs
  • How to apply
  • Determination of eligibility
  • Need-based programs
  • Alternatives

Financial Aid Presentation Project,NCASFAA/NCSEAA

types of student financial aid
Types of Student Financial Aid
  • Grants
  • Scholarships
  • Loans
  • Employment

Financial Aid Presentation Project,NCASFAA/NCSEAA

student financial aid
Student Financial Aid
  • Merit-based
    • academics
    • talent
    • athletic
    • others
  • Need-based
    • financial considerations

Financial Aid Presentation Project,NCASFAA/NCSEAA

student financial aid1
Student Financial Aid

Need-based aid …….

  • Family is responsible for costs to the extent of its ability to pay college costs
  • Provides access and choice
  • Annual determination of eligibility

Financial Aid Presentation Project,NCASFAA/NCSEAA

college costs
College Costs
  • Direct
  • Indirect
  • Vary widely from college to college

Financial Aid Presentation Project,NCASFAA/NCSEAA

direct college costs
Direct College Costs
  • Tuition
  • Required fees
  • Room
  • Meals
  • Books and Supplies

Financial Aid Presentation Project,NCASFAA/NCSEAA

indirect college costs
Indirect College Costs
  • Transportation and miscellaneous personal expenses, including documented costs for a personal computer
  • Loan fees

Financial Aid Presentation Project,NCASFAA/NCSEAA

indirect college costs1
Indirect College Costs
  • Study abroad costs
  • Dependent care expenses
  • Disability-related expenses
  • Cooperative education program costs

Financial Aid Presentation Project,NCASFAA/NCSEAA

applying for federal financial aid
Applying for Federal Financial Aid
  • Free Application for Federal Student Aid (FAFSA)
    • Required for all types of federal aid
    • Use the worksheets available from high schools & financial aid offices to complete the online form.
      • 96% of forms are filed online!
    • Paper forms can be obtained by calling 1-800-4-FED-AID (1-800-433-3243)
    • Complete on the Web at www.fafsa.ed.gov after January 1st, preceding the academic year
    • Results sent electronically to institutions listed by student on FAFSA and to the student (if you provide your email address)

Financial Aid Presentation Project,NCASFAA/NCSEAA

applying for state financial aid
Applying for State Financial Aid
  • The FAFSA is the application for most major state programs:
    • NC Education Lottery Scholarship
    • UNC Need-Based Scholarship
    • NC Community College Scholarship
    • NC Student Incentive Grant
    • EARN (new for 2008-2009)
    • And others
  • Other state programs require additional forms. See CFNC.org for details by program.

Financial Aid Presentation Project,NCASFAA/NCSEAA

applying for financial aid
Applying for Financial Aid
  • Other forms ???
    • Institutional application
    • College Scholarship ServicePROFILE
    • State applications
    • Outside scholarship applications

Financial Aid Presentation Project,NCASFAA/NCSEAA

need help fafsa day 2008
Saturday, February 9, 2008

Any time between 9 a.m. and noon at all locations except Charlotte

Get FREE help completing your FAFSA online from college financial aid officers.

Check CFNC.org/fafsaday or school counselor for closest location.

Register toll-free, 866-866-CFNC or online at CFNC.org/fafsaday

Sponsored by College Foundation of North Carolina and the North Carolina Association of Student Financial Aid Administrators.

Need Help?FAFSA Day 2008

Financial Aid Presentation Project,NCASFAA/NCSEAA

offers to help find aid are everywhere
Offers to help find aid are everywhere:
  • In the mail
  • Over the Internet
  • In newspapers
  • In magazines
  • Over the phone

Financial Aid Presentation Project,NCASFAA/NCSEAA

offers may be
Offers may be:
  • Legitimate offers of information and assistance
    • Example: CFNC.org and FAFSA Day
  • Misleading offers from individuals or companies trying to make money off of unsuspecting parents and students

Financial Aid Presentation Project,NCASFAA/NCSEAA

how do you identify offers that should be avoided
How do you identify offers that should be avoided?
  • Organizations that say they can help you locate more aid and then charge you a fee
  • Anyone who charges you a fee for information about financial aid
  • If they charge you a fee to apply for federal financial aid (FAFSA)
  • If they charge a fee to receive financial aid

Financial Aid Presentation Project,NCASFAA/NCSEAA

potential scams
Potential “Scams”
  • “The scholarship is guaranteed or your money back.”

No one can guarantee your scholarship

before it is awarded.

  • “You can’t get this information anywhere else.”

Everyone has access to the same information.

Financial Aid Presentation Project,NCASFAA/NCSEAA

other misleading offers
Other Misleading Offers
  • “The scholarship requires a small fee.” Never pay a fee to get a scholarship.
  • “You are a finalist” for an award you never applied for.

If you did not apply, it is not a

legitimate offer.

  • “Come to our free seminar and we’ll show you how to get more financial aid.”

This is a sales pitch. Don’t pay for information that you can get elsewhere for free.

Financial Aid Presentation Project,NCASFAA/NCSEAA

where can you find free information about financial aid
Where can you find free information about financial aid?
  • Contact College Foundation of North Carolina at CFNC.org or toll free at 866-866-CFNC
    • Service of the State of North Carolina
  • Talk to the financial aid administrator at the college of choice
  • Ask your high school counselor or visit the local library
  • Apply for federal financial aid at FAFSA.ed.gov

Financial Aid Presentation Project,NCASFAA/NCSEAA

remember
Remember!

You should never have to pay:

  • For information about college financial aid
  • To apply for federal financial aid (FAFSA)
  • To receive financial aid for college

Financial Aid Presentation Project,NCASFAA/NCSEAA

applying for financial aid1
Applying for Financial Aid
  • Meet earliest deadline of colleges in which you are interested
  • Complete all questions accurately
  • Estimate if necessary to meet early deadlines
  • Don’t wait until you are admitted to file the FAFSA
  • Keep a photocopy of all documents for your records

Financial Aid Presentation Project,NCASFAA/NCSEAA

applying for financial aid2
Applying for Financial Aid
  • Additional documentation may be required… for VERIFICATION of information
    • Tax returns
    • Untaxed income (Social Security, Child support, Income reported on FAFSA worksheets, other)
    • Family size
    • Family members attending college
    • Other...

Financial Aid Presentation Project,NCASFAA/NCSEAA

determination of expected family contribution
Determination of Expected Family Contribution

Parents’ Contribution

+ Student’s Contribution

_________________________

= Expected Family Contribution (EFC)

Financial Aid Presentation Project,NCASFAA/NCSEAA

determination of parents contribution
Determination of Parents’ Contribution

Parents’ total income for calendar year (Taxable + Non-taxable)

- Federal Tax Paid (not withheld)

- State Tax Paid

- Social Security Withholding

- Living Allowance

- Child Support paid by parents

- Employment allowance

___________________________________

= Available Parent Income

Financial Aid Presentation Project,NCASFAA/NCSEAA

determination of parents contribution1
Determination of Parents’ Contribution

Total net assets (excluding home equity)

- Protection allowance (varies by age of parent)

___________________________

= Net Worth

X 12%

____________________

= Amount of assets used in determining EFC

Financial Aid Presentation Project,NCASFAA/NCSEAA

determination of parents contribution2
Determination of Parents’ Contribution

Available Income

+ Asset Contribution

___________________

= Adjusted Available Income

X Percentage

___________________

= Parent Contribution

Parent contribution will be divided by the number of family members in college, not including parents.

Financial Aid Presentation Project,NCASFAA/NCSEAA

determination of student s contribution
Determination of Student’s Contribution

Student’s total income for calendar year (taxable and non-taxable)

- Federal tax paid (not amount withheld)

- State tax paid

- Social Security withholding

- Income protection allowance ($3,080)

__________________________________

= Student’s Available Income

X 50%

__________________________________

= Student’s Contribution from Income

Financial Aid Presentation Project,NCASFAA/NCSEAA

determination of student s contribution1
Determination of Student’s Contribution

Total net assets

X 20%

________________

= Student’s Contribution from assets

Financial Aid Presentation Project,NCASFAA/NCSEAA

determination of student s contribution2
Determination of Student’s Contribution

Student contribution from income

+ Student contribution from

assets

__________________________

= Total Student Contribution

Financial Aid Presentation Project,NCASFAA/NCSEAA

determination of efc
Determination of EFC

Parents’ contribution

+ Student’s contribution

______________________

= Expected Family Contribution

Financial Aid Presentation Project,NCASFAA/NCSEAA

basic formula for aid
Basic Formula for Aid

Cost of Attendance

– Expected Family Contribution

__________________________

= Eligibility for Need-Based Funds

Financial Aid Presentation Project,NCASFAA/NCSEAA

potential institutional adjustments to efc for institutional funds
Potential Institutional Adjustments to EFC for Institutional Funds
  • Establishment of a minimum level of student contribution
  • Use of home equity in determination of net assets
  • Adjustments for medical/dental expenses
  • Adjustments in the losses/depreciation claimed for business/farm operations

Financial Aid Presentation Project,NCASFAA/NCSEAA

special circumstances
Special Circumstances
  • Significantchange in your family…
    • Unemployment of a parent
    • Death in the family
    • Change in parents’ marital status

Notify the financial aid office at your college of these special circumstances. Be prepared to provide documentation of any change, including the financial impact of the change.

Financial Aid Presentation Project,NCASFAA/NCSEAA

sources of financial aid
Sources of Financial Aid
  • Federal Government
  • State Programs
  • Institutional funds
  • Outside agencies

Financial Aid Presentation Project,NCASFAA/NCSEAA

types of financial aid
Gift

Scholarships

Grants

Self-help

Loans

Employment

Types of Financial Aid

Financial Aid Presentation Project,NCASFAA/NCSEAA

federal aid programs
Federal Aid Programs
  • Federal Pell Grant
  • Academic Competitiveness Grant
  • National SMART Grant
  • Federal Supplemental Grant
  • Federal Work-Study
  • Federal Perkins Loan
  • Federal Stafford Loan
  • Federal Ford Direct Loan

Financial Aid Presentation Project,NCASFAA/NCSEAA

north carolina aid programs partial listing
North Carolina Aid Programs (partial listing)
  • NC Student Incentive Grant
  • NC Legislative Tuition Grant
  • NC State Contractual Scholarship
  • NC Community College Grants
  • NC Education Lottery Scholarship
  • Education Access Rewards NC Scholars Fund (EARN) (new ‘08-’09)
  • UNC Need-Based Grants
  • Nurse Scholarships and Loans
  • Teacher Scholarships and Loans

Financial Aid Presentation Project,NCASFAA/NCSEAA

institutional and outside aid
Institutional Aid

Grants & Scholarships

Loan Programs

Student Employment

Outside Agencies

Local organizations

Churches

Civic Groups

Parents’ employers

Veterans Administration

Vocational Rehabilitation Services

Institutional and Outside Aid

Financial Aid Presentation Project,NCASFAA/NCSEAA

is that all there is
Is that all there is?
  • Federal Unsubsidized Loans

(Stafford or Direct)

  • Federal PLUS Loans for parents of dependent students and for graduate or professional students

Financial Aid Presentation Project,NCASFAA/NCSEAA

is that all there is1
Is that all there is?
  • Private Alternative Loans for students or parents
    • Last resort--Always apply for federal loans first!
  • College Payment Plans
  • Outside Scholarships
  • Tax credits--Hope and

Lifetime Learning

Financial Aid Presentation Project,NCASFAA/NCSEAA

tax credits hope tax credit
Available for the first two years of college

Applies to tuition and required fees only.

Can claim up to $1650 tax credit---better than a deduction since it comes directly off taxes owed.

Can claim 100% of first $1100 expenses and 50% of the next $1100.

Examples:

If you paid tuition of $5000 in 2007, you will be able to claim $1650 on the tax return completed in early 2008.

If you paid tuition of $1100, you will be able to claim only $1100.

If you paid tuition of $1800, you can claim $1450 (all of the first $1100, and 1/2 of the remaining $700…which is $350).

Tax Credits--Hope Tax Credit

Financial Aid Presentation Project,NCASFAA/NCSEAA

tax credits lifetime learning
Tax Credits--Lifetime Learning
  • Available for all years
  • Can claim for professional development type classes as well as remaining undergraduate years and graduate years of college.
  • Can claim credit for 20% of tuition & fees, up to maximum of $2,000.
  • There are income restrictions on who can claim Lifetime and Hope Tax Credits….consult with your tax advisor!

Financial Aid Presentation Project,NCASFAA/NCSEAA

irs deductions and credits for 2007
IRS Deductions and Credits for 2007
  • Certain taxpayers will qualify to take a tax deduction for tuition and fees (even if they don’t itemize).
  • Deductions range up to $4000/year.
  • Families with adjusted gross incomes up to $80,000 (single filers) & $160,000 (joint filers) can claim credit.
  • Cannot claim Hope or Lifetime Learning credit in the same year for same student.
  • Check with tax preparer to see if you qualify!

Financial Aid Presentation Project,NCASFAA/NCSEAA

additional information
Additional Information
  • College Foundation of North Carolinahttp://www.cfnc.org
  • The Student Guide
    • Published by US Department of Education http://www.ed.gov/prog_info/SFA/StudentGuide
  • Student Financial Aid for North Carolinians
    • At the CFNC Web site, click on paying for college and then publications.
  • http://www.finaid.org
  • Publications in local libraries

Financial Aid Presentation Project,NCASFAA/NCSEAA

summary
Summary
  • Lots of aid available from federal and state governments
  • Get a PIN now! www.pin.ed.gov
  • Student and parent must each have a PIN
  • Complete forms by deadlines
  • Use www.fafsa.ed.gov to complete, sign and submit application.

Financial Aid Presentation Project,NCASFAA/NCSEAA

summary1
Summary
  • Respond promptly to colleges if additional information requested
    • Tax returns or other information
  • College will notify via email, Web or mail of aid eligibility
  • Student should follow the colleges’ instructions to accept or decline aid offered.

Financial Aid Presentation Project,NCASFAA/NCSEAA