NACAC Financial Aid 101 Paying for College Presented by Sandy Neel - PowerPoint PPT Presentation

NACAC Financial Aid 101 Paying for College Presented by Sandy Neel Executive Director of Financial Aid University of Louisville

Questions 1. Do you know how much college costs, and what is included in the total cost? 2. What is the difference between grants, scholarships, loans, and work study? 3. How does a student receive financial aid?

More than half the students attending college in the United States receive some form of financial assistance.

How Much Will it Cost? Billable or Direct costs typically charged by the college: these costs will show on the bill Tuition and fees Cost of living in residence hall + + Cost of meal plans on campus Indirect costs included in the COA: Allowance for Allowance for + Allowance for Personal expenses and a few + Transportation Books and supplies meals out

Published Cost • Myth – The published cost represents the true cost of a college or university. • The Larger Story – What really matters is the amount families actually pay for college. – This is called “ net price .” or billable costs 5

The Net Price Calculator

Assessing Student Need Cost of Education (the total cost of attending college) – Expected Family Contribution (minus the parents’ and student’s financial resources) = Financial Need

Assessing Student Need Expected Family Contribution (EFC) is the number used to determine students eligibility for federal student aid. The EFC calculations influenced by these factors: Income and potentially assets of the parents • • The amount the student can contribute from earnings and savings • Any monetary gifts the student receives Family size, age of oldest parent, number of children • currently attending college

The Financial Aid Process • FAFSA (Free Application for Federal Student Aid) – https://fafsa.gov • CSS Profile – profileonline.collegeboard.com Institutional aid applications • Be sure to check each individual school’s website to find out what forms must be filed and when they must be filed.

The Free Application for Federal Student Aid • Information Collected on the FAFSA evaluates the families financial strength • Determines Pell Grant Eligibility • Provides the information to the school so a financial aid package can be made and an award letter sent to the student

The CSS Profile • Provides a more thorough picture of family finances • Helps Financial Aid determine who needs institutional aid and how much • Allows families to outline special circumstances to the school • Gain access to institutional sources of funding that may not be available through FAFSA alone Used by approximately 400 colleges and scholarship • providers • Divorced and Separated parents may need to complete the profile for both the custodial and non- custodial parent

Types of Financial Aid Loans Grants Work- Scholarsh Study ips

Grants Federal Pell Grants Federal Supplemental Education Opportunity Grants (FSEOG) State grants Institutional grants

Scholarships May be for academic, athletic, leadership, music, theater, etc. Usually competitive Institutional National State (KEES) and Local including civic organizations

Work-Study Based on need Student is provided a job at an on-campus location such as Admission Office or library 10-15 hours per week At least minimum wage but may be above

Loans Direct Loans Subsidized and Unsubsidized PLUS (Parent Loan for Undergraduate Students) Private Loans

The Truth About Student Loans Average Student Loan Debt in Average Price of a New Average Student Loan Debt in Car: $31,252 Kentucky from 2015: $27,225 17

Is College Worth the Cost?

How Aid is Awarded $50,800 $20,700 $10,300 Family Contribution $2,196 $2,196 $2,196 KCTCS 4-Year Public 4-Year Private Award amounts shown are estimates only based upon an estimated EFC of $ 2196 .

$50,800 $20,700 Federal Pell $10,300 Family Contribution $3,770 $3,770 $3,770 $2,196 $2,196 $2,196 KCTCS 4-Year Public 4-Year Private

$50,800 $20,700 $10,300 CAP Grant $1,900 $1,900 $1,900 Federal Pell $3,770 $3,770 $3,770 Family Contribution $2,196 $2,196 $2,196 KCTCS 4-Year Public 4-Year Private

$50,800 $20,700 $10,300 KTG CAP Grant $2,920 $1,900 $1,900 $1,900 Federal Pell $3,770 $3,770 $3,770 $2,196 $2,196 $2,196 Family Contribution KCTCS 4-Year Public 4-Year Private

$50,800 KEES $20,700 KTG $10,300 CAP Grant $1,500 $3,000 $1,500 $1,500 Federal Pell $1,900 $1,900 $1,900 $3,770 $3,770 $3,770 Family Contribution $2,196 $2,196 $2,196 KCTCS 4-Year Public 4-Year Private

$50,800 $20,700 SEOG KEES $10,300 KTG $1,000 CAP Grant $1,500 $1,000 $934 Federal Pell $2,920 $1,500 $1,500 $1,900 $1,900 $1,900 Family Contribution $3,770 $3,770 $3,770 $2,196 $2,196 $2,196 KCTCS 4-Year Public 4-Year Private Award amounts shown are estimates only based upon an estimated EFC of $ 2196 .

$50,800 FWS $20,700 SEOG KEES $10,300 $3,000 KTG $1,000 $3,000 $1,500 CAP Grant $934 $1,000 $3,000 $1,500 $1,500 Federal Pell $1,900 $1,900 $1,900 Family $3,770 $3770 $3,770 Contribution $2,196 $2,196 $2,196 KCTCS 4-Year Public 4-Year Private Award amounts shown are estimates only based upon an estimated EFC of $ 2196 .

$50,800 Institutional Aid FWS $20,700 SEOG $20,000 KEES $10,300 $8,000 KTG $4,000 $1,000 $4,000 CAP Grant $1,500 $934 $1,000 $3,000 $1,500 $1,500 $1,900 $1,900 $1,900 Federal Pell $3,770 $3770 $3,770 $2,196 $2,196 $2,196 Family Contribution KCTCS 4-Year Public 4-Year Private

How to Get More Families to Complete the FAFSA • Host a Financial Aid Night • Chalk on sidewalk reminding of October 1 FAFSA filing date • Tee-Shirts • Postcards home to parents • Announcements • Texts

The earlier parents or guardians become aware of the costs associated with college, the better the family can incorporate educational costs into their savings plan.

Questions