MORGAN A. KELLYASSOCIATE DIRECTOR

STUDENT FINANCIAL ASSISTANCESACRED HEART UNIVERSITY

College Financial Aid Night

Tonight’s Agenda

Sources and Types of Financial Aid

Application Process

Determining Eligibility

Student Loans

Questions to Ask

Types of Financial Aid

Grants

Scholarships

Work-Study Programs

Loans Subsidized vs. Unsubsidized Stafford

Read your award package carefully! Understand what

is free, what is earned, and what

is borrowed.

Begin at the Beginning

Check with College and Universities to see what Financial Aid Applications are required.

Check financial aid deadline dates with Colleges and Universities. Submit required information at least two weeks

before earliest deadline. For example:February 15th Deadline -- Submit Information by February

1st.

Application Process

Free Application for Federal Student Aid (FAFSA) Required for Federal & State Aid www.fafsa.ed.gov

Profile Application (CSS Profile) Used primarily by private colleges. www.collegeboard.com

Institutional Applications Check school publications and websites

Federal Student Aid PIN

Apply for PIN

Change PIN

Change PIN Information

For students and parents

Used for FAFSA application

Used for student and parent loans

www.pin.ed.gov

Federal Application Process

Required by all schools administering Federal Student Aid

It is ok to use 2013 tax information as an estimate!

Cannot be submitted until after January 1, but get organized as soon as possible

www.fafsa.ed.gov

Federal Application Process

After submitting the FAFSA:Review the Student Aid Report

Make corrections, if necessary All filers may access SAR and make changes online

If selected for review, a message will be present. You may have to submit tax transcripts and/or other forms for verification purposes to the school.

Schools receive the applicant data electronically Schools may offer tentative award based on current

information Schools –now or later- may verify or adjust information

CSS Profile Application Process

The College Board CSS Profile collects more comprehensive family and financial information

It is ok to use 2013 tax information as an estimate!

Allows schools to receive information earlier in the cycle

Remember to check for other institution specific forms!

https://profileonline.collegeboard.com

What’s Next

Determining Eligibility

Cost of Attendance- EFC

____________ Financial Need

The Cost of Education

Direct Costs Tuition and required fees Room and board for resident students

Indirect Costs Books and supplies Transportation to and from campus Miscellaneous personal expenses

Direct Costs Indirect Costs

Total Cost of Education

What is the Expected Family Contribution – EFC?

The EFC is a measure of capacity over time to absorb educational costs Not a dollar amount expected from current income or

assets Not an estimate of extra cash available

It is a number used by your school to calculate the amount of federal student aid you are eligible to receive.

The EFC is subject to school verification and adjustments.

Elements of Need Analysis

FM EFC

# in college

# in family

Income

FAFSA

FAFSA

IM EFC

Allowances

Home EquityMedical

Profile

CSS Profile

Eligibility for Financial Aid

Total Cost

- FM EFC

= Eligibility

4 Year Private 4 Year Public$34,00

0

$10,000

$24,000

$14,000

$10,000

$4,000

Need-Based vs. Merit Based

• Need-based aid is dependent on a family’s EFC. Merit-based aid is award considering achievement, talent, participation, not a family’s EFC.

Need-Based

Aid

Pell Grant

Work Study

Merit-Based

AidAcademic Achieveme

nt

Athletic Achieveme

nt

The Financial Aid Package

Total Cost = $34,000 Total Cost = $34,000

College Grant: $17,000

Work: $1,500

Loan: $5,500

EFC: $10,000

Unmet Need: $4,000

College Grant: $13,000

Work: $1,500

Loan: $5,500

EFC: $10,000

The Financial Aid Package

Total Cost = $34,000 Total Cost = $34,000

College Grant: $17,000

Work: $1,500

Loan: $5,500

EFC: $10,000

Academic: $12,000

Athletic:$15,000

Actual Cost after Merit: $7,000

What is it? Necessary Information

Allows for an estimate of your expenses and financial aid possibilities

Not a guaranteed award

Intended to help families understand out-of-pocket expenses earlier in the application process

Student & Parent 2013 Income Tax Returns

Earnings statements (W2 forms, recent paycheck stubs)

Bank statements

Student academic information

Net Price Calculator

Options What to Consider

Stafford Loans Solely in the student’s name Subsidized vs. Unsubsidized

Stafford No credit check, student cannot

be in default on a previous loan

Private Loans Student will need a co-signer Requires credit check

Parent Plus Loan Solely in the parent’s name Requires credit check

Student Loans

Loan Repayment Calculator

http://www.finaid.org/calculators/loanpayments.phtml

Questions to ask and not assume!

How do outside awards affect the aid package?

What is the school’s policy on non-custodial parents?

What is the average student debt level?

Are the scholarships/grants renewable each year?

How might awards change in future years?

What happens if financial circumstances change?

Where There’s “The Web”, There’s a Way

• www.nasfaa.org Consumer tips for parents and students as well as financial aid tools for completing required applications.

• www.finaid.org Financial Aid Information Page. Lists a variety of financial aid information, including family contribution calculators.

• www.fastweb.com FASTWEB, Free scholarship search.

• www.studentaid.ed.gov A site designed by the U.S. Department of Education in collaboration with students to help students make the dream of college a reality.

• www.ctdhe.org The Connecticut State Higher Education website for state financial aid programs and links to Connecticut colleges and universities.