Understanding the Financial Aid Understanding the Financial Aid Process Process
College Funding Services College Funding Services Website: ineedfinancialaid.com Website: ineedfinancialaid.com Toll Free: 844-CFS4AID (237-4243) Toll Free: 844-CFS4AID (237-4243) General: info@ineedfinancialaid.com General: info@ineedfinancialaid.com
How Do They Determine If I’m How Do They Determine If I’m Eligible? Eligible? � COA – EFC = NEED � COA – EFC = NEED � COA = Cost of Attendance � COA = Cost of Attendance � (Includes tuition, books, room/board, etc.) � (Includes tuition, books, room/board, etc.) � EFC = Expected Family Contribution � EFC = Expected Family Contribution � (Based on parent and student income, assets, � (Based on parent and student income, assets, age, number of students in school, etc.) age, number of students in school, etc.) � Need = Amount of aid the family is eligible � Need = Amount of aid the family is eligible
What should we know about our What should we know about our Family Contribution? Family Contribution? � Asset Protection Allowance � Asset Protection Allowance � What is considered an asset? � What is considered an asset? � Parental Assets vs. Student Assets � Parental Assets vs. Student Assets � Is debt considered? � Is debt considered? � How should we value our home? � How should we value our home? -www.finaid.com -www.finaid.com -Calculators -Calculators -Federal Housing Index -Federal Housing Index
What should we know about our What should we know about our Family Contribution? Family Contribution? � Parent Income vs. Student Income � Parent Income vs. Student Income � Student Income allowance = $6,260 � Student Income allowance = $6,260 � Self-employed families � Self-employed families � Do NOT include business assets/worth on FAFSA if � Do NOT include business assets/worth on FAFSA if you have less than 100 employees you have less than 100 employees � Salary to a dependent as tax benefit detrimental for � Salary to a dependent as tax benefit detrimental for financial aid financial aid
Borrowing Options Borrowing Options � Student Loans vs. Parental Loans � Student Loans vs. Parental Loans � Subsidized vs. Unsubsidized Loans � Subsidized vs. Unsubsidized Loans � Federal vs. State vs. Private � Federal vs. State vs. Private � Read fine-print and understand entire life � Read fine-print and understand entire life of loan of loan
Financial Aid Financial Aid � Myths vs. reality: � Myths vs. reality: � Income too High � Income too High � Grades too Low � Grades too Low � Own a home � Own a home � Aid is only for special � Aid is only for special groups groups
Sources of Financial Aid Sources of Financial Aid � FEDERAL GOVERNMENT � FEDERAL GOVERNMENT � Pell Grants � Pell Grants � SEOG Grants � SEOG Grants � College Work/Study � College Work/Study � Subsidized and Unsubsidized � Subsidized and Unsubsidized Stafford Loans Stafford Loans � Perkins Loans � Perkins Loans � PLUS � PLUS
Sources of Financial Aid Sources of Financial Aid State Government State Government � Special programs for in-state residents. � Special programs for in-state residents. � Teachers, health professionals, minorities, � Teachers, health professionals, minorities, etc. etc. � Contact NY State Higher Education � Contact NY State Higher Education Services Corporation Services Corporation � www.hesc.ny.gov � www.hesc.ny.gov
Sources of Financial Aid Sources of Financial Aid Colleges and Universities Colleges and Universities � Private universities have endowment � Private universities have endowment funds, outside of federal and state funds. funds, outside of federal and state funds. � Create competition � Create competition � Give preferential packaging to students � Give preferential packaging to students who are in top 25% of applicants. who are in top 25% of applicants.
What if I do not Qualify for What if I do not Qualify for Need-Based Aid? Need-Based Aid? � Merit Aid � Merit Aid � Some Schools do not award merit aid � Some Schools do not award merit aid � School by school basis; some more � School by school basis; some more generous than others generous than others � Value Schools � Value Schools � Average School cost $30-$70K � Average School cost $30-$70K � Lower end of range � Lower end of range � Ex. Binghamton University � Ex. Binghamton University � COA = $35,000 � COA = $35,000
Sources of Financial Aid Sources of Financial Aid � Private scholarships � Private scholarships � Account for 3% of all financial aid � Account for 3% of all financial aid � High school guidance department � High school guidance department
How Do You Apply? How Do You Apply? � The FAFSA (Free Application for Federal � The FAFSA (Free Application for Federal Student Aid) Student Aid) � EVERYONE must fill out this form to get aid � EVERYONE must fill out this form to get aid � You cannot apply for Federal Loans if you do not � You cannot apply for Federal Loans if you do not fill one out fill one out � Not accessible until Jan. 1 st � Not accessible until Jan. 1 st � Accessible at FASFA.ed.gov � Accessible at FASFA.ed.gov � Audit/verification process similar to IRS � Audit/verification process similar to IRS
FAFSA FAFSA � New Requirement: FSA ID � New Requirement: FSA ID � Student and Parent � Student and Parent � Needed to access/submit the FAFSA � Needed to access/submit the FAFSA � Username/Password (Replaced PIN � Username/Password (Replaced PIN number) number) � FSAID.ed.gov � FSAID.ed.gov � Estimate 2015 taxes, based on 2014 � Estimate 2015 taxes, based on 2014 tax returns tax returns � Details of all assets that day � Details of all assets that day
CSS/PROFILE CSS/PROFILE � Most private schools require this form � Most private schools require this form � Much more invasive and complex � Much more invasive and complex � Home equity treated as liquid asset � Home equity treated as liquid asset � Section Q � Section Q � www.collegeboard.com � www.collegeboard.com � $25.00 for 1 st school, $16.00 for each � $25.00 for 1 st school, $16.00 for each thereafter thereafter
How Do You Apply For Aid? How Do You Apply For Aid? � Institutional Applications � Institutional Applications � Some schools require their own additional � Some schools require their own additional forms. forms. � They should be consistent with other � They should be consistent with other forms forms � Usually asks similar questions to the other � Usually asks similar questions to the other two forms two forms
How Do You Apply For Aid? How Do You Apply For Aid? � FAFSA � FAFSA � CSS/PROFILE � CSS/PROFILE � College Institutional Forms � College Institutional Forms � ADDITONAL FORMS: � ADDITONAL FORMS: � Business/Farm Supplement � Business/Farm Supplement � Divorced/Separated Situations � Divorced/Separated Situations
Which Colleges Give You The Which Colleges Give You The Best Shot At Getting Money? Best Shot At Getting Money?
CASE STUDIES : CASE STUDIES : Amherst College: UMASS-Amherst: Amherst College: UMASS-Amherst: Cost - $70,000 Cost - $23,000 Cost - $70,000 Cost - $23,000 EFC - $15,000 EFC - $15,000 EFC - $15,000 EFC - $15,000 Need - $55,000 Need - $8,000 Need - $55,000 Need - $8,000 School A: School B: School A: School B: Meets 100% Need Meets 60% Need Meets 100% Need Meets 60% Need Gift Aid - 100% Gift Aid - 50% Gift Aid - 100% Gift Aid - 50% Self Help – 0% Self Help - 50% Self Help – 0% Self Help - 50% What you actually pay at each school: What you actually pay at each school: School A: School B: School A: School B: Total EFC = $15,000 Original EFC = $15,000 Total EFC = $15,000 Original EFC = $15,000 Total Gift = $55,000 + Unmet Need = $3,000 Total Gift = $55,000 + Unmet Need = $3,000 Total Self = $0 Total EFC = $18,000 Total Self = $0 Total EFC = $18,000 Total Gift = $2,500 Total Gift = $2,500 Total Self = $2,500 Total Self = $2,500
How To Appeal Your How To Appeal Your Financial Aid Award Financial Aid Award
How To Appeal For The Best How To Appeal For The Best Possible Package Possible Package 5 Point Plan of Attack 5 Point Plan of Attack 1. Bring color/background to your story 1. Bring color/background to your story 2. Ask for specific amount of additional aid 2. Ask for specific amount of additional aid 3. Show awards offered by other colleges 3. Show awards offered by other colleges 4. Challenge expenses not considered on taxes 4. Challenge expenses not considered on taxes 5. Be persistent 5. Be persistent
Helpful Links Helpful Links � ineedfinancialaid.com � ineedfinancialaid.com � cfs.inviteeducation.com � cfs.inviteeducation.com � collegeboard.com � collegeboard.com � collegeprowler.com � collegeprowler.com � fafsa.ed.gov � fafsa.ed.gov � fastweb.com � fastweb.com � finaid.com � finaid.com
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