Carolyn Lindley, Northwestern University Jerry Cebrzynski, Lake Forest College FinancingA College...

• Carolyn Lindley, Northwestern University

• Jerry Cebrzynski, Lake Forest College

FinancingFinancingAA

College EducationCollege Education

Top 10 Things to Know About Financial Aid for

College

College cost planningCollege cost planning

How a College can helpHow a College can help

What exactly is financial aidWhat exactly is financial aid

The financial aid The financial aid ““languagelanguage””

Application process in a Application process in a nutshellnutshell

How eligibility is determinedHow eligibility is determined

Other resourcesOther resources

Choosing a CollegeChoosing a CollegeBest FitBest Fit

► ProgramProgram

► LocationLocation

► SizeSize

► Mix of StudentsMix of Students

► AcademicsAcademics

► ExtracurricularExtracurricular

► FacilitiesFacilities

► Financial ConsiderationsFinancial Considerations

Recent Headlines

Current College Costs2010-2011

Average Tuition, Fees, Room, BoardAverage Tuition, Fees, Room, Board

• 4 Year Public: $16,0004 Year Public: $16,000

• 4 Year Private: $33,0004 Year Private: $33,000

Average personal expenses [clothing, Average personal expenses [clothing, laundry, toiletries, recreation, laundry, toiletries, recreation, entertainment] = $2,000entertainment] = $2,000

Books = $700 - $1,000 per yearBooks = $700 - $1,000 per year

Tuition and fees at private colleges Tuition and fees at private colleges and universities increased by 4.5% for and universities increased by 4.5% for 2010-11 2010-11 (the second smallest increase in 37 years). (the second smallest increase in 37 years).

Tuition and fees at public universities Tuition and fees at public universities increased by 7.9% for 2010-11 (6% at 2-increased by 7.9% for 2010-11 (6% at 2-year public colleges).year public colleges).

1. Cost of attendance (COA) should not be a mystery

Sticker PriceSticker Pricevs.vs.

After Financial Aid/Scholarship After Financial Aid/Scholarship PricePrice

►Direct costs = on tuition invoice Tuition, fees, housing, meal plan

► Indirect costs = related educational expenses Books, supplies, transportation, laundry, …

►COA should reflect direct and indirect expenses

Net Price Calculator Tool

Required by Fall 2011

►To the extent they are able, To the extent they are able, parentsparents have primary have primary responsibility to pay for their dependent children’s responsibility to pay for their dependent children’s educationeducation

►StudentsStudents also have a responsibility to contribute to their also have a responsibility to contribute to their educational costseducational costs

►Families should be evaluated in their Families should be evaluated in their appropriateappropriate financial conditionfinancial condition

►A family’s ability to pay for educational costs must be A family’s ability to pay for educational costs must be evaluated in an evaluated in an equitable and consistent mannerequitable and consistent manner, , recognizing that recognizing that special circumstancesspecial circumstances can and do can and do affect its ability to payaffect its ability to pay

2. 2. Financial Aid is “A Financial Aid is “A Partnership”Partnership”

► Is committed to removing financial barriersIs committed to removing financial barriers

► Is an advocate for the student at all levelsIs an advocate for the student at all levels

► Educates students and families through Educates students and families through quality consumer informationquality consumer information

► Provides services that do not discriminateProvides services that do not discriminate

► Maintains the highest level of Maintains the highest level of professionalismprofessionalism

The Financial Aid OfficeThe Financial Aid Office

3. 3. What is Financial What is Financial Aid?Aid?

► ScholarshipsScholarships

► GrantsGrants

► Student LoansStudent Loans

► Work-StudyWork-Study

U.S. Department of EducationU.S. Department of Education

StatesStates

Colleges and UniversitiesColleges and Universities

Private OrganizationsPrivate Organizations

Four major sources of Four major sources of funding:funding:

Categories of Financial Aid

►Merit-based

From College as well as from foundations, etc. Specific criteria eligibility Solely based on student’s credentials

Categories of Financial Aid

►Need-based

Calculated from FAFSA and other aid applications Sources can be federal, state, institutional Types include grants, student loans, work-study

4. Everyone should apply for aid

►Many types and sources of aid are available

►On the fence? 67% of all students receive aid [88% at 67% of all students receive aid [88% at

private collegesprivate colleges

Sometimes being rejected for federal aid Sometimes being rejected for federal aid is a prerequisite for receiving private is a prerequisite for receiving private awardsawards

Undergraduate Aid by Source, 2009-10Undergraduate Aid by Source, 2009-10

Source: The College Board, Trends in Student Aid 2009

So . . . how does the So . . . how does the process begin?process begin?

5. All aid applications are not the same

►Free Application for Federal Student Aid (FAFSA)

Required by all schools; www.FAFSA.GOV

► Institutional Aid

Supplemental applications for more information

►Scholarships – specific to organization/school

The FAFSA collects basic financial data The FAFSA collects basic financial data is used to determine the student’s is used to determine the student’s

eligibility by calculating an “index” #eligibility by calculating an “index” #

To apply for all federal and To apply for all federal and state aid, families must state aid, families must

complete the...complete the...

Overview of the FAFSAOverview of the FAFSA

► 2011-2012 available in January2011-2012 available in January

► Submit it soon after January 1Submit it soon after January 1

► 7 steps7 steps

FAFSA on the Web FAFSA on the Web (FOTW)(FOTW)

English or SpanishEnglish or Spanish

Skip logic and online editingSkip logic and online editing

Electronic signatureElectronic signature

Electronic notificationElectronic notification

17 million (99%) FOTWs processed 10/11 17 million (99%) FOTWs processed 10/11 so farso far

FAFSA on the Web FAFSA on the Web WorksheetWorksheet

4-page booklet containing:4-page booklet containing:

► InstructionsInstructions

► 24 questions in 4 sections24 questions in 4 sections

Supplemental Financial Aid Supplemental Financial Aid ApplicationsApplications

► The College The College Scholarship Service Scholarship Service Financial Aid Financial Aid PROFILEPROFILE

► A College’s own A College’s own application for application for financial aidfinancial aid

6. Special Circumstances Matter

►When the numbers don’t tell the whole story

►When the situation is expected to change (or has)

►Must be able to document

► consideration will vary from school to consideration will vary from school to schoolschool

The Financial Aid Award The Financial Aid Award LetterLetter

(or “package” )(or “package” )

Will contain a combination ofWill contain a combination of• scholarship, grant, loan and work-study fundsscholarship, grant, loan and work-study funds

Why might “packages” be different?Why might “packages” be different?

• cost of attendance cost of attendance • scholarship criteria and availability scholarship criteria and availability • institutional philosophy and funding institutional philosophy and funding • federal funding levelsfederal funding levels

7. Decoding the Award Letter

Compare► COA

► Total amount of aid

► Types and sources

Ask questions► Is aid renewable?

► Terms for renewing?

► Will aid change from year to year?

► Will costs increase?

► Is more aid available if EFC decreases?

8. Appeals

►Can request change in aid if there is a valid reason

►Will it make a difference?

Is need already fully met? Is more aid available?

►Valid reasons

Special circumstances

9. 9. Deadlines are Deadlines are essentialessential

Deadlines

►Know each College’s priority deadlines Read and retain all communication you receive

►Contact school Merit scholarship deadlines

Early Action/Early Decision/Regular Decision deadlines

Deadlines for supplemental documents (tax returns, etc.)

TimelineTimeline► Complete FAFSA after January 1Complete FAFSA after January 1

► Receive a Student Aid Report (SAR) 72 hours Receive a Student Aid Report (SAR) 72 hours laterlater

► Review SAR for correctnessReview SAR for correctness

► Check if other additional application required or Check if other additional application required or are beneficialare beneficial

► Receive Financial Aid Award Letter before May 1Receive Financial Aid Award Letter before May 1

FAQs► Estimate figures on FAFSA; adjust later► Divorced, separated, single parents► Assets included

Savings, stocks, other real estate 529 Plans

► Assets not included Home equity Retirement accounts Insurance policies, annuities

► One FAFSA per student► Renewal of Aid

10. 10. Ask for Ask for

Right here at HPHS, DHSRight here at HPHS, DHS

A College’s Financial Aid OfficeA College’s Financial Aid Office

The InternetThe Internetwww.collegezone.comwww.collegezone.com

www.finaid.orgwww.finaid.org

www.studentaid.ed.govwww.studentaid.ed.gov

College Web SitesCollege Web Sites