Presentation Overview Recap: Financial Aid Application Process - PowerPoint PPT Presentation

Financing a Saint Joseph’s University Education Presented by: Elizabeth Rihl Lewinsky, Director of Financial Aid

Presentation Overview  Recap: Financial Aid Application Process  Verification Process  IRS Data Retrieval tool  EFC & Special Circumstances  Cost of Attendance  Financing Options  Campus Work Study & Outside Sources of Aid  Billing & Payment Process  FERPA & The Nest  Important Names & Offices to Know

Recap: Financial Aid Process 1. Submit the 2019‐2020 FAFSA at https://fafsa.gov 2. View financial aid package via Saint Joseph’s Admissions Account. 3. Review Financing Options at www.sju.edu/admittedfinance. 4. If selected for federal verification (deposited students will receive notification via email), submit required documents. • Submit Deposit @sju.edu/deposit to hold spot in incoming class • Admissions deposit credited toward initial bill $500 deposit for residential students ($375 deposit Credit on current bill‐ $125 security deposit returned after last semester) $250 deposit for commuter students 5. Complete Steps to obtain any Federal or Private Student Loans.

Verification Process •About 30% of all FAFSA filers are selected for the verification process to check the accuracy of the FAFSA information. •If selected, deposited will receive separate notification. •Documents that must be submitted: •2019–2020 Verification Form •IRS data retrieval (without any changes on FAFSA) •2017 Federal Tax Return Transcript (request from IRS via GetTranscript option at www.irs.gov)

I RS Data Retrieval Tool • If selected for verification upon filing FAFSA and IRS Data Retrieval Tool was not offered or used, must obtain 2017 IRS Tax Transcripts. Request tax transcripts at IRS Get Transcript site: www.irs.gov/transcript. – Download as pdf and upload through SJU Admissions Account (be sure student’s name is listed) – Request to receive by mail. Will receive via mail 5‐10 days later. Mail to SJU Financial Aid Office, 5600 City Avenue, Philadelphia, PA 19131. • Non‐Tax filer (2017) parents (of dependent students) and independent students must request IRS Verification of Non‐Filing Statement – Go to www.irs.gov/transcript. Select " Verification of Non‐filing Letter " select " 2017 “ in Tax Year Field. – Cannot download if you have NEVER filed taxes in previous years. Must use paper request: Download IRS Form 4506‐T at https://www.irs.gov/pub/irs‐ pdf/f4506t.pdf

W hat is the EFC • Basis of financial aid package • EFC=determined by a federal formula that calculates student’s “financial need “ based on info. on FAFSA • EFC & Financial Need are guidelines used by schools to determine aid package • EFC not necessarily = to out‐of‐pocket cost of family Cost of Attendance ‐ Expected Family Contribution =Financial Need

Prim ary Factors Used to Calculate EFC • Taxable Income: Adjusted Gross Income • Untaxed income & benefits • Number in family • Number of dependent children in college • Assets – includes cash/savings, value of other real estate and investments, 529 plans for all dependents – excludes value of primary home, retirement plans (IRA’s, Keogh, 401K’s), life insurance policies – Education Savings & Asset protection allowance acc. to age* ‐example: Oldest Parent’s Age = 50, $12,500 of assets protected if married*. • 12% of parents assets counted toward EFC • 20% of student’s assets counted *Based on 2019‐20 FAFSA, parent age as of 12/31/19.

Special Circum stances •In special circumstances, a Financial Aid Administrator can use “professional judgement” to update information on FAFSA and recalculate a student’s EFC. •Once student has filed 2019‐2020 FAFSA and receives financial aid package, if student or parent’s 2017 calendar year income, as listed on FAFSA, is higher than their projected 2019 calendar year income, due to: • Loss of income/unemployment • Death of a wage earner OR you had: • Significant medical expenses not covered by insurance • Other financial circumstance not reflected on the 2019–2020 FAFSA

Special Circum stances • Complete a Special Circumstance Appeal Form (see www.sju.edu/admittedfinance, under “Next Steps…for Admitted Students” click “Learn More” button, then “Special Financial Circumstance Consideration Process”). • Admitted Students must log into SJU Admission Account in order to access the form. • Response sent via email, typically, within 2‐3 weeks, and definitely prior to May 1 st .

Cost of Attendance Billed items: Tuition, fees, R&B (if resident), lab fees (if applicable)  Tuition: $46,350  Standard Fees: $200  Room & Board: $14,840* (meals=$5,416+$9,424 housing)  Total Billed Cost Resident: $61,390/year  Total Billed Cost Commuter: $46,550/year  Orientation fee: $250 freshmen; $100 for transfers  Health Insurance Fee: ‐12 months comprehensive coverage: $1,825. Provider: United Healthcare ‐Automatically applied to tuition bill ‐Can “opt out” online in summer *Based on standard housing and meal plan

Cost of Attendance  “ Unlimited Access Meal Plan” required of students in traditional freshmen housing  Hawk Cash Account:  Make cashless purchases at locations on and off campus using Hawk Card (official student ID)  Can reload at www.sju.hawkcard.com; can set up auto‐reload at regular intervals  Parking fee for commuters: $250/year for 2018‐19 (TBD 2019‐20)  Lab fees=Range from $50 to $250 depending upon course (ex.‐ science lab fee=$250/course)  Anticipated additional expenses: 1) Books 2) Personal Expenses 3) Transportation

Financing Options • Federal Direct Stafford Student Loan • University Payment Plan • Federal Direct Parent PLUS Loan • Private, Alternative Student Loans

Federal Direct Stafford Student Loans • Loans funded directly through the U.S. Department of Education via Federal Direct Loan Program. • Federal Direct Stafford Loan : – In student’s name/no credit check – Available to all students, regardless of need – Repayment begins 6 months following graduation or withdrawal – Standard 10 year repayment period – Current “ Variable‐Fixed ” interest rate of 5.05% on Stafford Loans for undergraduates; will be reset July 1, 2019 – 1.062% origination fee deducted by government

Financing Options: FD Student Loan Federal Direct Subsidized vs. Unsubsidized Stafford Loan • Subsidized – Based on financial need – Govt. pays interest on loan while student is in school and during 6‐month grace period • Unsubsidized – Available to ALL students, regardless of need – Interest paid quarterly or capitalized upon repayment (can pay quarterly‐use this interest savings calculator: http://www.youcandealwithit.com/borrowers/calculators‐and‐resources/calculators/interest‐ savings‐calculator.shtml) Base Stafford amount caps by grade level ‐ $3,500 freshmen year ‐ $4,500 sophomore year ‐ $5,500 junior/senior year • All dependent and independent undergraduates permitted to borrow an extra $2,000 Unsubsidized Stafford Loan in addition to base amount indicated above. • Total annual eligibility: ‐ freshmen: $5,500 ‐ sophomore: $6,500 ‐ junior & senior years: $7,500 • Add ’ l. unsubsidized available to independent students and dependent students whose parent(s) are denied on the PLUS Loan due to credit

Federal Aid Federal Direct Plus Loan (Parent Loan for Dependents) • Parent is borrower • Current “ Variable‐Fixed ” interest rate = 7.6% • Repayment typically begins within 60 days of 2 nd disbursement being made • Parents can defer for up to 4 years • Minimal credit check required • 4.264% origination fee charged by government • Unsubsidized (interest accrues from date of disbursement) • Borrow up to cost of attendance minus other financial aid student is receiving

Financing Options: PLUS Loan Repayment begins 60 days after 2 nd disbursement (March) • • “Variable‐fixed” interest rate; currently 7.60% but will be reset July 1, 2019. 10‐year repayment period • Can defer for up to 4 years while student is enrolled as an undergraduate by calling DL Servicing @ 888‐877‐7658 • If parent fails credit check, student eligible to borrow additional Federal Direct Unsubsidized Stafford Loan • ‐$4,000/year as freshmen/sophomore • ‐$5,000/year as junior/senior • ‐Parent must go through approval process each year • ‐Interest payments can be tax‐deductible • Endorser option if denied (Endorser Form available at www.StudentLoans.gov).

Financing Options: Private, Alternative Student Loans  Student=borrower  Credit‐worthy co‐signer needed for most students  Run credit check & debt/income ratios  Minimum FICO for consideration‐typically 675+  Can borrow up to COA minus other aid on annual basis—borrow for full year at once  All deferred until 6 months following graduation  Cosigner release offered with most  Repayment periods range from 10 years to 25 years  No penalty for pre‐payment  Most have $0 origination fees  Most offer variable & fixed‐rate options  Basis=Prime Rate (5.50%) or LIBOR (2.67%=6‐month; 2.61%=3‐month)  Visit http://www.bankrate.com/rates/interest‐rates/prime‐rate.aspx for current interest rates