The Wonderful World of Financial Aid

Elizabethtown CollegeFinancial Aid Office

Presentation Objectives

Introduce TerminologyIntroduce Terminology

Outline Application ProcessOutline Application Process

Describe Aid ApplicationsDescribe Aid Applications

List Resources AvailableList Resources Available

Reduce Your AnxietyReduce Your Anxiety

Remember: This Valuable Piece Of Advice!

In the beginning of your student’s college In the beginning of your student’s college search, DO NOT rule out any school based search, DO NOT rule out any school based solely on the cost. The elimination of a solely on the cost. The elimination of a college occurs at the end of the process college occurs at the end of the process once eligibility of financial aid is known once eligibility of financial aid is known and affordability is determined! and affordability is determined!

First Steps

Campus VisitsCampus Visits Personal Interviews with Personal Interviews with

Admissions and Financial AidAdmissions and Financial Aid Organize College SpreadsheetOrganize College Spreadsheet Complete Admissions Complete Admissions

Application by December of Application by December of Senior YearSenior Year

Note Financial Aid DeadlinesNote Financial Aid Deadlines Complete Federal Taxes EarlyComplete Federal Taxes Early

The Financial Aid Office

Resource For FamilyResource For Family Responsible To Federal Responsible To Federal

GovernmentGovernment Administer State FundingAdminister State Funding Steward of College FundsSteward of College Funds Student Advocate Student Advocate

Basic Premise

Students and parents are the primary Students and parents are the primary source of funds for postsecondary source of funds for postsecondary

education and are expected to education and are expected to contribute to the extent they are able.contribute to the extent they are able.

Financial Aid

If you want to be considered for If you want to be considered for financial aid you must financial aid you must APPLY FOR ITAPPLY FOR IT – on time! – on time!

Primary Sources

Federal GovernmentFederal Government State GovernmentState Government Postsecondary Postsecondary

InstitutionsInstitutions Private AgenciesPrivate Agencies

Who Can We Talk With?

ALL information submitted ALL information submitted on these financial aid forms on these financial aid forms is protected under the Family is protected under the Family Educational Rights and Educational Rights and Privacy Act (FERPA). The Privacy Act (FERPA). The data is treated as strictly data is treated as strictly confidential, maintained in a confidential, maintained in a secure area, and only released secure area, and only released to a third party upon to a third party upon obtaining student’s signature.obtaining student’s signature.

Application Possibilities

Free Application for Free Application for Federal Student Aid Federal Student Aid (FAFSA)(FAFSA)

Institutional ApplicationInstitutional Application CSS PROFILE FormCSS PROFILE Form Civic, Religious, Service Civic, Religious, Service

Scholarship ApplicationsScholarship Applications

When Do You Apply ForFinancial Aid?

The earliest that you may submit the The earliest that you may submit the FAFSA is January 1FAFSA is January 1stst of the senior year. of the senior year.

May 1May 1stst is the deadline to apply for a is the deadline to apply for a PHEAA State Grant.PHEAA State Grant.

Check with each institution to determine Check with each institution to determine their own financial aid deadline.their own financial aid deadline.

Review private sources for their deadlines.Review private sources for their deadlines.

FAFSA – Web or Paper?

FAFSA on the WebFAFSA on the Web www.fafsa.govwww.fafsa.gov Obtain a PIN Obtain a PIN

(www.pin.ed.gov)(www.pin.ed.gov)

Paper ApplicationPaper Application

Why get a PIN?

Improves speed of application processImproves speed of application process Used as “signature” on current and future FAFSA Used as “signature” on current and future FAFSA

and loan applicationsand loan applications Used to make faster and easier corrections to the Used to make faster and easier corrections to the

FAFSAFAFSA Student/parents should apply for their own PINStudent/parents should apply for their own PIN Families may apply in the student’s senior yearFamilies may apply in the student’s senior year

(www.pin.ed.gov)(www.pin.ed.gov)

The Application Process

FAFSAWeb or paper

Federal Government(data entry, analysis, matches)

Student Colleges State(grant award)

$ $ $ $ $

SAR

$ $ $

Who Completes the Application?

StudentStudent

ParentsParents Natural/adoptiveNatural/adoptive Single: divorced, Single: divorced,

separated, widowedseparated, widowed Remarried: Remarried:

Natural and step Natural and step (who you live with)(who you live with)

Application Suggestions Schedule time to do it Schedule time to do it togethertogether!!

Read materials for deadlines.Read materials for deadlines. Complete federal tax return & Complete federal tax return &

schedules ASAP!schedules ASAP! May also complete “draft” copy. If May also complete “draft” copy. If

owe money, don’t send it until tax owe money, don’t send it until tax deadline.deadline.

Complete all items-DON’T LEAVE Complete all items-DON’T LEAVE BLANK ITEMS.BLANK ITEMS.

Submit FAFSA via the web (speed & Submit FAFSA via the web (speed & accuracy).accuracy).

Parent Contribution+ Student ContributionExpected Family Contribution

Expected Family Contribution(EFC)

EFC Determining Factors

Parental Income (Taxed and Untaxed)Parental Income (Taxed and Untaxed) Parental Assets (Excluding Primary Home Parental Assets (Excluding Primary Home

& Tax-Sheltered Retirement Plans)& Tax-Sheltered Retirement Plans) Student IncomeStudent Income Student AssetsStudent Assets Family Size/Number in CollegeFamily Size/Number in College Age of the Older ParentAge of the Older Parent

Allowances Included in Formula

Federal and State TaxesFederal and State Taxes Two Employed ParentsTwo Employed Parents Asset Protection for RetirementAsset Protection for Retirement Standard Guidelines per Family SizeStandard Guidelines per Family Size

Allowances Not Permitted In Federal Formula

Consumer DebtConsumer Debt Prior Educational DebtPrior Educational Debt Auto ExpensesAuto Expenses

Permitted With Professional JudgmentPermitted With Professional Judgment Parent in College ExpensesParent in College Expenses Elementary/Secondary Tuition for SiblingsElementary/Secondary Tuition for Siblings Medical & Dental ExpensesMedical & Dental Expenses

Verification

FAFSA data checked against sourceFAFSA data checked against source of data for accuracyof data for accuracy

Common documents requested include:Common documents requested include:2011 Federal Tax Returns2011 Federal Tax ReturnsW-2 FormsW-2 FormsVerification WorksheetsVerification Worksheets

Review performed by the Financial Aid Review performed by the Financial Aid OfficerOfficer

Institutional Methodology EFC

Used by some private collegesUsed by some private colleges Additional information used in formulaAdditional information used in formula Different allowances and calculationsDifferent allowances and calculations Additional applications requiredAdditional applications required IM EFC used only for institutional funds, IM EFC used only for institutional funds,

not federal fundsnot federal funds

Cost of Education

Direct CostsDirect Costs TuitionTuition FeesFees RoomRoom MealsMeals

Indirect CostsIndirect Costs Books & SuppliesBooks & Supplies TransportationTransportation Personal ExpensesPersonal Expenses

Financial Aid Eligibility

Cost of EducationCost of Education

- EFC- EFC

Student’s Financial NeedStudent’s Financial Need

Types of Financial Aid

Gift AidGift Aid ScholarshipsScholarships GrantsGrants

Self-HelpSelf-Help EmploymentEmployment LoansLoans

How Gift Aid is Awarded

Merit-based aid (Scholarships)Merit-based aid (Scholarships) Academic abilityAcademic ability Special talent/achievementSpecial talent/achievement Program of studyProgram of study

Need-based aid (Grants)Need-based aid (Grants) Financial needFinancial need Largest source of gift aid fundsLargest source of gift aid funds

Federal Grants

“ “Floor” of Financial Aid PackageFloor” of Financial Aid Package Maximum Award: $5,550Maximum Award: $5,550 EFC determines eligibility ($5,273 or less)EFC determines eligibility ($5,273 or less)

PELL

SEOG “ “Priority to Pell Grant recipientsPriority to Pell Grant recipients Award Range $100 to $4000 based on school’s fundingAward Range $100 to $4000 based on school’s funding Determined by Financial Aid OfficerDetermined by Financial Aid Officer

PHEAA State Grant

Initial Application = FAFSAInitial Application = FAFSA PHEAA Online Application Notice SentPHEAA Online Application Notice Sent Must Be a PA ResidentMust Be a PA Resident Award Value up to $4,348Award Value up to $4,348

Correlates to cost of collegeCorrelates to cost of college Out of state award significantly lessOut of state award significantly less

Money Earned as Payment for a Part-time Job (6-10 hours a week)

Employment

Spending money - Spending money - minimum wage or minimum wage or higherhigher

Time management Time management Better gradesBetter grades Support groupSupport group Job referencesJob references

Types of Employment Federal Work Study (FWS)Federal Work Study (FWS)

Part-time employment on or off campusPart-time employment on or off campus Partially subsidized by federal governmentPartially subsidized by federal government

Institutional EmploymentInstitutional Employment Part-time employment on campusPart-time employment on campus Fully subsidized by collegeFully subsidized by college

Student Loans Borrowed money to be Borrowed money to be

paid back with interest.paid back with interest. An investment of students An investment of students

in themselves.in themselves. Return of $1,000,000 over Return of $1,000,000 over

lifetime in earnings lifetime in earnings compared to high school compared to high school graduate.graduate.

Federal Perkins Loan

Students with exceptional needStudents with exceptional need Loan amount determined by Financial Aid Loan amount determined by Financial Aid

OfficerOfficer Interest rate: 5%Interest rate: 5% Loan maximums: $5,500 per yearLoan maximums: $5,500 per year 9-month grace period9-month grace period Deferment/cancellation provisionsDeferment/cancellation provisions

Federal Student Loan

For 2012-2013, new For 2012-2013, new loans have a fixed loans have a fixed interest rate of 6.8 %interest rate of 6.8 %

Annual eligibility Annual eligibility based on student’s based on student’s grade levelgrade level

Federal Student Loan

Up to 1% of amount borrowed can be Up to 1% of amount borrowed can be charged in fees. charged in fees.

Principal deferred while enrolled at least Principal deferred while enrolled at least half-time.half-time.

Six-month grace period followed by 10-Six-month grace period followed by 10-year repayment term.year repayment term.

Philosophies of Meeting Need

Dependent upon:Dependent upon: Funds available to meet applicants’ needFunds available to meet applicants’ need Specific goals of enrollmentSpecific goals of enrollment Amount of federal campus-based fundsAmount of federal campus-based funds Institutional EFC may be used for school Institutional EFC may be used for school

fundsfunds Special circumstancesSpecial circumstances

Student’s Possible Resources

Grants

Work

Loans

Federal State Institutional

•Pell•SEOG

•FWS

•PHEAA•OVR/OVH

•Summer FWS

•Merit Scholarship •Need Grants

•Perkins•Direct Stafford

•Short-term

•Self-help employment

Factors Which May Influence the Financial Aid Package

AcademicsAcademics SAT’sSAT’s Class RankClass Rank H.S. AttendedH.S. Attended AP CoursesAP Courses Predicted G.P.A.Predicted G.P.A. Academic Track in High Academic Track in High

SchoolSchool

Diversity- Diversity- Gender/EthnicityGender/Ethnicity

Athletic AbilityAthletic Ability Talent- Theater, ArtTalent- Theater, Art Activities- Yearbook, Activities- Yearbook,

GovernmentGovernment Geographic DiversityGeographic Diversity LegaciesLegacies

Private Scholarship Searches

You don’t have to pay!You don’t have to pay! Guidance OfficeGuidance Office Financial Aid OfficeFinancial Aid Office World Wide Web SitesWorld Wide Web Sites

http://www.finaid.comhttp://www.finaid.com

http://www.fastweb.comhttp://www.fastweb.com

http://www.collegeboard.orghttp://www.collegeboard.org

Treatment of Outside Scholarships

Must be reportedMust be reported Individual institutions treat differentlyIndividual institutions treat differently

100% reduction of work/loans100% reduction of work/loans 50% reduction of grants and 50% 50% reduction of grants and 50%

reduction of work/loansreduction of work/loans 100% reduction of grants100% reduction of grants Check policy of each institutionCheck policy of each institution

Other Options to Families with Financial Aid Package

10-month interest-free 10-month interest-free payment planspayment plans

Assortment of bank plansAssortment of bank plans Institutional plansInstitutional plans Federal PLUS loans (7.9%)Federal PLUS loans (7.9%) Home equity loansHome equity loans

(Pursue these options after college choice is made.)

Professional Judgment

The law provides the The law provides the Financial Aid Officer Financial Aid Officer the flexibility to deal the flexibility to deal with special with special circumstances and circumstances and conditions which are conditions which are applied on a case-by-applied on a case-by-case basis after the case basis after the original application original application has been filed.has been filed.

Types of Professional Judgment

Separation or divorceSeparation or divorce Death of one parentDeath of one parent Loss of employment incomeLoss of employment income Loss of non-taxable incomeLoss of non-taxable income Unusual medical expensesUnusual medical expenses Other unusual circumstancesOther unusual circumstances

Must I Reapply?

Yes! AnnuallyYes! Annually Every year a new financial “snapshot”Every year a new financial “snapshot” Family circumstances may changeFamily circumstances may change

IncomeIncome

AssetsAssets

Number in collegeNumber in college

Number in householdNumber in household

Special circumstancesSpecial circumstances

Foundation: Base-Year Income

2011 Federal 2011 Federal

Tax ReturnTax Return 2012 Federal 2012 Federal

Tax ReturnTax Return 2013 Federal 2013 Federal

Tax ReturnTax Return 2014 Federal 2014 Federal

Tax ReturnTax Return

2012-2013 Academic Year

2013-2014 Academic Year

2014-2015 Academic Year

2015-2016 Academic Year

Best Sources of Help

College Financial Aid OfficersCollege Financial Aid Officers PHEAA Regional OfficePHEAA Regional Office Local LendersLocal Lenders Local Civic, Religious, Service Local Civic, Religious, Service

OrganizationsOrganizations High School Guidance High School Guidance

CounselorCounselor

Presentation Review

TerminologyTerminology

Application ProcessApplication Process

Aid ApplicationsAid Applications

Resources AvailableResources Available

Anxiety ReducedAnxiety Reduced

Good Luck and Best Wishes!

Elizabethtown CollegeFinancial Aid Office

717-361-1404