Financial Aid 101 Nancy VanZetta Financial Aid Consultant - PowerPoint PPT Presentation

Financial Aid 101 Nancy VanZetta Financial Aid Consultant 585.637.4728 nancyvanzetta@twc.com September 18, 2018

What is Financial Aid  Grants, Scholarships  Loans  Work

Sources of Financial Aid  Federal  State  College  Private

Scholarship Searches  Fastweb www.fastweb.com  FinAid www.finaid.org  Scholarships.com www.scholarships.com

Grants  Pell Grant  Supplemental Educational Opportunity Grant (SEOG)  Teach Grant  NY Tuition Assistance Program (TAP)  Excelsior Scholarship/Enhanced Tuition Award

Federal Loans  Subsidized − Interest paid by the government while the student attends college at least half time  Unsubsidized − Interest paid by the student while attending college at least half time − Interest may be paid quarterly or capitalized at the time of repayment

Federal Loans  Direct Loan -  Processed directly through college □ Subsidized & Unsubsidized Stafford Loan: − Fixed rate of 5.05% for 2018-19 − Annual Loan Limit  $5,500 freshman - $3,500 subsidized w/additional $2,000 unsubsidized  $6,500 sophomore - $4,500 subsidized w/additional $2,000 unsubsidized  $7,500 junior and senior - $5,500 subsidized w/additional $2,000 unsubsidized □ Graduate Unsubsidized: − Fixed rate of 6.60% for 2018-19 − Annual Loan Limit  $20,500

Loans Cont’d  Direct PLUS Loan - − In parent name − 7.60% for 2018-19 − Processed directly through college − If parent is declined, student direct loan eligibility increased  Alternative/Private Education Loans − In student name − Needs Co-signer − Interest rate varies by lending institution − Taken out through a lending institution

Loan Repayment  Direct − Six months after completion of program or attendance drops below half-time − Forgiveness  Direct PLUS − Sixty days after funds issued to college − Principal may be deferred while student is enrolled halftime  Alternative/Private Loans See lender requirements −

Work  Federal Work Study  Institutional Payrolls

Prior to Applying for Aid  FAFSA4caster − www.fafsa4caster.ed.gov  Net Price Calculator − Every college must have on their website − Shows cost of attendance − Average grants and scholarships − Average loans − Average workstudy − Net cost of that college to family

Applications FAFSA  − Available now − Will receive e-mail when processed TAP  − Available now − Will receive award notice after New York State passes budget Profile  − Available now Institutional Application  − Usually found on college website Master Promissory Note (MPN)  − www.studentloans.gov Entrance Interview  − www.studentloans.gov

FAFSA  www.fafsa.gov  myStudentAid Mobile App  Must establish FSA ID and password for student and parent — https://fsaid.ed.gov  Use 2017 income and current assets  Since tax returns are already filed, you can complete the IRS Data Retrieval at the same time

Tuition Assistance Program (TAP)  www.hesc.ny.gov  Must establish user ID and PIN  Will only pick up first New York college listed on FAFSA  Return later and change college name if appropriate

HESC Confirmation of Online TAP Application

Profile  www.collegeboard.org  Listing of colleges that use the Profile  $25 registration fee includes one college, $16 for each additional report  IDOC  Cannot update information unless you are adding a college

Online Profile

How is Eligibility Determined? Parent Income Student Income Parent Assets Student Assets Household Size Number in College EFC – Expected Family Contribution

Cost of Attendance (COA)  Direct Costs − Tuition and fees − Room and board  Indirect Costs − Books and supplies − Transportation Cost of Attendance -EFC − Personal =Unmet Need

Award Letters  Will list all aid being offered, including TAP estimate  Will receive a separate one from each college  Shopping Sheet  Gapping  Expect to see federal loans listed

← Current “graduation rate survey” as reported to the National Center for Education Statistics under IPEDS ← Current “cohort default rate” as calculated by the Department ← New “median debt” calculated by the Department Institutions must use this form for service members of excellence but our preference would be for them to use this type of form for all students.

Comparing Awards A B C Cost 7,500 22,000 45,000 EFC 3,000 3,000 3,000 Unmet Need 4,500 19,000 42,000 Grant 1,000 4,000 20,000 Loan 1,500 12,500 18,000 Work 2,000 2,500 4,000

Verification  College may ask family to document income  Send documents as soon as they are requested  If the college requests an IRS transcript, you must get this document directly from the IRS − 1-800-908-9946 − http://www.irs.gov/individuals/Get-Transcript

Professional Judgment  Varies from college to college  Used to - Increase cost of attendance - Reduce estimated family contribution - Change dependency status  College may ask for documentation  Usually done after initial award made  Done directly with college

Special Circumstances  Change in family’s income from year reported on FAFSA  Medical expenses not covered by insurance or claimed on tax return  Change in parent marital status  Dependent care expenses or private elementary/secondary tuition

Tax Credits  Tuition and fees deduction  Interest on education loans  Education credits

What To Do Now  Check deadlines  Check college’s website to determine which applications they need and complete them prior to the earliest deadline  Download institutional application if needed  Complete Admissions applications  Check scholarship searches

What Not To Do  Wait until you know exactly which college student will attend  Assume that you’re not eligible if you don’t get a response, assume something went wrong and check with the college  Wait to respond to requests from college

Questions? Nancy Vanzetta Financial Aid Consultant 585.637.4728 nancyvanzetta@twc.com