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Understanding the Financial Aid Process

Understand the financial aid process, eligibility criteria, need-based aid, borrowing options, myths vs. reality, sources of aid, application procedures, merit aid, appealing aid packages, and helpful links.

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Understanding the Financial Aid Process

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  1. Understandingthe Financial Aid Process

  2. College FUNDING PROFESSIONALS • Website: www.collegefunding.com • Phone: 201-285-7890 • Email: mdaly@collegefunding.com

  3. How Do They Determine If I’m Eligible? • COA – EFC = NEED • COA = Cost of Attendance • (Includes tuition, books, room/board, etc.) • EFC = Expected Family Contribution • (Based on parent and student income, assets, age, number of students in school, etc.) • Need = Amount of aid the family is eligible

  4. What should we know about our Family Contribution? • Asset Protection Allowance • What is considered an asset? • Parental Assets vs. Student Assets • Is debt considered? • How should we value our home? -www.finaid.com -Calculators -Federal Housing Index

  5. What should we know about our Family Contribution? • Parent Income vs. Student Income • Student Income allowance = $6,420 • Self-employed families • Do NOT include business assets/worth on FAFSA if you have less than 100 employees • Salary to a dependent as tax benefit detrimental for financial aid

  6. Borrowing Options • Student Loans vs. Parental Loans • Subsidized vs. Unsubsidized Loans • Federal vs. State vs. Private • Read fine-print and understand entire life of loan

  7. Financial Aid • Myths vs. reality: • Income too High • Grades too Low • Own a home • Aid is only for special groups

  8. Sources of Financial Aid • FEDERAL GOVERNMENT • Pell Grants • SEOG Grants • College Work/Study • Subsidized and Unsubsidized • Stafford Loans • Perkins Loans • PLUS

  9. Sources of Financial Aid State Government • Special programs for in-state residents. • Teachers, health professionals, minorities, etc. • Contact HESAA (609) 584-4480 • www.hesaa.org • NJ TAG Grant • NJCLASS Loans

  10. Sources of Financial Aid Colleges and Universities • Private universities have endowment funds, outside of federal and state funds. • Create competition • Give preferential packaging to students who are in top 25% of applicants.

  11. What if I do not Qualify for Need-Based Aid? • Merit Aid • Top 25% of applicants • School by school basis; some more generous than others (some not at all) • Value Schools • Average School cost $30-$70K • Lower end of range = Value • Ex. Binghamton • COA = $35,000 • Honors Programs

  12. How Do You Apply? • The FAFSA (Free Application for Federal Student Aid) • EVERYONE must fill out this form to get aid • You cannot apply for Federal Loans if you do not fill one out • Accessible until October 1st • Accessible at FASFA.ed.gov • 2016 will be base income year for Class of 2018 • Details of all Assets that day • DEADLINES ARE PARAMOUNT

  13. FAFSA - FSA ID • New Login/Access Procedure: FSA ID • Required by student and one parent • Needed to access/submit the FAFSA • Username/Password (Replaced PIN number system) • Create Prior to preparing FAFSA: • FSAID.ed.gov

  14. CSS/PROFILE • Most private schools require this form • Much more invasive and complex • Home equity treated as liquid asset • Section Q • www.collegeboard.com • $25.00 for 1st school, $16.00 for each thereafter

  15. How Do You Apply For Aid? • Institutional Applications • Some schools require their own additional forms. • EX. - UPENN • They should be consistent with other forms • Usually asks similar questions to the other two forms

  16. How Do You Apply For Aid? • FAFSA • CSS/PROFILE • College Institutional Forms • ADDITONAL FORMS: • Business/Farm Supplement • Divorced/Separated Situations

  17. Which Colleges Give You The Best Shot At Getting Money?

  18. CASE STUDIES : Williams College:Rutgers Univeristy : Cost - $70,000Cost - $30,000 EFC - $15,000EFC - $15,000 Need - $55,000 Need - $15,000 School A:School B: Meets 100% Need Meets 60% Need Gift Aid - 90% Gift Aid - 60% Self Help – 10% Self Help - 40% What you actually pay at each school: School A:School B: Total EFC = $15,000 Original EFC = $15,000 + Unmet Need = $6,00 Total EFC = $21,000

  19. How To Appeal For The Best Possible Package 5 Point Plan of Attack • Bring color/background to your story • Ask for specific amount of additional aid • Show awards offered by other colleges • Challenge expenses not considered on taxes • Be persistent

  20. Helpful Links • collegeboard.com • collegeprowler.com • fafsa.ed.gov • fastweb.com • finaid.com

  21. THANK YOU FOR ATTENDING

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