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Taming the Financial Aid Monster!!
AVID College Financial Aid Night Foothill Technology High School Tuesday, January 15th, 2013
Presented by:
Mrs. Heather Ferris and FTHS AVID English Presentation:
Mrs. Linda Kapala: Scholarships Ms. Cecilia Johnston: Financial Aid
Spanish Presentation: Ms. Alma Rodriguez, Ventura College
Conquering Your Fears! For Students, the
scariest part of College Admissions is getting into the college of their choice.
For their Parents, the scariest part is paying for it!!!
Knowledge is Power! “Fund Your Future” Workbook (Updated copies will be available
at the Counselors’ offices & Media Center.) CSS: Profile Handout “Blue Sheet” Handout (Correction: www.finaid.org) Ventura College Workshops (TBA) “Help” function on Financial Aid Form websites Will give you the confidence to apply for
financial aid !
What is Financial Aid ?
Free Money: Scholarships Grants
Self Help: Loans Employment:
Federal Work study
NUMBER ONE Rule of Financial Aid
Students AND their families have the primary responsibility to pay for postsecondary education expenses. Doesn’t matter if parents choose not
to contribute to student’s education. Therefore, it is very unusual for a
student who has just graduated from high school to be “independent” for purposes of Financial Aid.
The “MAGIC FORMULA”
COA-EFC=FN
More Magic Formula COA (Cost of Attendance) Minus EFC (Expected Family
Contribution) Equals FN (Demonstrated Financial
Need)
Note: EFC usually stays the same no matter how much the COA.
See Page 9 of Booklet.
How do I file for Financial Aid? Complete and file FAFSA
FAFSA = “Free Application for Federal Student Aid”
Make sure that your gpa has been submitted for Cal Grant consideration.
Submit CSS:Profile and/or other supplemental information if required by college to which you are applying. Usually private schools.
NUMBER TWO Rule re: Financial Aid
Always, always, always apply for financial aid. Doesn’t matter if you think that you
won’t qualify. Will need to file to qualify for non-
need based federal loans. Many schools will NOT consider you
for merit or other scholarships unless you apply for federal financial aid.
FAFSA Timeline Complete & Submit FAFSA as
soon as humanly possible. Use estimated 2012 income
figures, then amend after filing tax return.
About 100 questions—max. Will receive SAR (Student Aid
Report) via email within 3-5 days!
Can always amend FAFSA; will result in amended SAR.
Seven Steps to filling out FAFSA
“Fund Your Future” pages 6-9 Step One: Gather information and go
to www.fafsa.ed.gov Both Student and one Parent apply for a
PIN. Save PINs for next year!
Be careful to use “ed.gov” website. FAFSA is always free!
Step Two: Information About the Student
Student Demographics
Name must match Social Security card.
Use the Help & Hints section on each page.
Step Three: School Selection:
Add by Federal School Code If applying to over ten schools:
List at least one California school on first list. (for Cal Grants)
Then list schools with earliest financial aid deadlines first.
After you submit FAFSA and receive your Student Aid Report, wait a few days, then go back and delete schools and add the remaining schools on your list.
All schools will have access to FAFSA. See “Blue Sheet”
Step Four: Dependency Status In most cases, your student will be a
dependent. The exceptions are on Page 7.
Step Five: Parent Information Required if student is dependent. Parents must answer both
demographic and financial information to determine Custodial Parent for FAFSA
purposes. Ability to contribute to student’s
educational expenses.
Divorced or Separated Parents Provide information for parent who
student has spent at least 51% of time with in past 12 months.
Remarried Parent? Provide info about parent AND step-parent regardless of: Agreement of non-support Prenuptial Agreement Divorce Decree
Divorced or Separated (Part 2)
Parent filling out FAFSA need not be the custodial parent per divorce decree.
Parent filling out FAFSA need not be the parent who claims the student as an exemption for income tax purposes.
Parent Income & Assets: You will see a list of types of Assets
on FAFSA—click the box next to the asset and you will be asked questions about those assets.
FAFSA looks at Adjusted Gross Income.
Page 7: List of assets that FAFSA does not consider including: Your family home Your Retirement Accounts Your small business (less than 100
employees)
Step Six: Student’s Assets Same list of Assets to click on. Tip: Most of student’s assets are expected to be
used for education expenses. What may make sense for tax savings may not make sense for financial aid. Ask your accountant or financial advisor for assistance.
Rule Number Three of Financial Aid
Do not do anything that could get you in trouble with the IRS!
In general, you want to look as poor as possible for FAFSA purposes.
Again, do not do anything that could get you in trouble with the IRS!!
If you have questions, talk to your accountant or financial advisor.
A few helpful hints:
Fill out FAFSA the day after you have paid your mortgage and big bills.
Value of assets is NET, not gross. Asset protection allowances are built
into the formula. Questions: Call the 800 number on
page 8.
Step Seven: Submission Student and Parent(s)
electronically Sign and Submit. You will receive an electronic
Confirmation Page with: Confirmation Number Estimated EFC List of Colleges Next Steps Option of transferring parents’
data to sibling’s FAFSA!
Student Aid Report Notification Arrives electronically in 2-5 days. Has EFC and Pell Grant eligibility. If you don’t like the results or
have special circumstances or expenses: Contact individual colleges which
can exercise “Professional Judgment Override.”
Your EFC when you receive your Financial Aid packages (by April 1) may be different.
The Dreaded “GAP”
Not every school meets 100% of your Financial Need.
The Dreaded “GAP”
Not every school meets 100% of your Financial Need.
Example: COA: $25,000 Minus EFC: $10,000 = FN: $15,000
But College only meets 66% of FN $10,000 leaving a gap of $5,000.
The Dreaded “GAP” Not every school meets
100% of your Financial Need. Example: COA: $25,000 Minus EFC: $10,000 = FN: $15,000
But College only meets 66% of FN $10,000 leaving a gap of $5,000.
You must make up the difference; you will be responsible for the EFC of $10,000 plus GAP of $5,000 = $15,000.
A Few Financial Aid Tools: Net Cost Calculators:
Every school is required to have one on their website.
CNN College Cost Calculator School Data:
www.collegedata.com www.collegenavigator.gov
Info: www.finaid.org
See “BLUE SHEET” for these links.
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CSS Profile and other Financial Supplements Some Private Schools use
FAFSA and CSS Profile and/or their own supplemental Financial Aid Forms.
CSS Profile on line. Costs $ (Waivers available.)
Looks more deeply into family finances.
Fill out one form for all colleges: different questions for different colleges
CSS-Profile Differences Many schools require that Non-Custodial Parent fills out Supplement. Considers Family Home as an asset.
For valuation: subtract mortgage from value as determined by Federal House Price Index Calculator.
Don’t forget to subtract mortgages, down payment loans from value.
More Differences: Value of Businesses: NET Worth
Most Service Businesses have a very low net worth for Financial Aid Purposes.
Assets held in sibling’s names are counted Retirement funds counted Not a free form. Use College Board id and
password to access. (Save this info. for next year!) Space to explain Unusual Circumstances: ie. large
medical expenses etc.
Even More Differences! Contribution from Student’s
Parents: One expert recommends that you wait
until you get SAR, take the EFC and reduce it by 30%.
Estimate Prior Year and Future Income. CANNOT amend CSS-Profile so make
sure that your estimates are very close.
IDOC: free service where you submit supporting documentation-not all schools use this.
CSS-Profile: Finally,
Every school that uses CSSProfile or own Supplements will treat your assets and liabilitiesdifferently; many times in your favor! You will know what your EFC is when you
receive your Financial Aid Packet. Questions? Use the CSS:Profile toll free
number on the CSS:Profile handout.
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VERIFICATION FAFSA can now verify your form with the information on your federaltax return. If you see an “*” next to your EFC on your SAR
—you will need to verify your FAFSA by submitting supporting documentation.
You will get letters from schools to which you applied with instructions.
Verification Docs are sent to schools, NOT FAFSA.
More Verification May have to obtain IRS Transcript. Private Schools usually ask for supporting documentation
from all applicants when you submit CSS Profile or Supplemental Forms.
Your Financial Aid Package is on HOLD until verification completed.
“The Magic Button” The IRS Data Retrieval Tool
Only on FAFSA Will automatically populate FAFSA with your 2012
Federal Tax Return Information. Automatic Verification!!
Won’t be subject to FAFSA Verification. No need to order IRS Transcript.
Easy to use for returning college students with later FAFSA due dates.
Problem for Incoming Freshmen IRS Data Retrieval Tool not available until February 3,
2013. Must wait 3 weeks after electronic tax filing and 8 weeks
after snail mail tax filing. Many colleges have Financial Aid Form due dates in
February (and even January!) What to do?
Financial Aid Filing Strategy On “Blue Sheet” Complete and submit FAFSA & CSS:Profile with
Estimated figures by Feb. 1st. or College Due Date. File Income Tax Returns Electronically ASAP. Wait three weeks. Update FAFSA with IRS Data Retrieval Tool. (Automatic
Verification!) Submit required CSS:Profile documentation via I-Doc by College Due Date. (If req’d.)
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What kinds of Financial Aid are available?
“Funding Your Future” Booklet does a great job of setting forth information about all of the types of financial aid.
Remember Two Main Types: Free Self Help
Free Financial Aid Grants
Pell (Federal) Cal Grant Institutional Grants (from
the school) Other
Scholarships: Institutional (from the
school) Private from other
sources
Self Help Financial Aid Loans (pages 26-28)
Perkins: Federal, Low income, lowest interest rate. Stafford: Federal
Subsidized: Need based, limited amount. Unsubsidized: All eligible students, limited
amount. PLUS Loans: Federal, taken out by parents up to
COA Private Loans: Banks, Credit Unions and private
loan companies.
More Self Help Aid Work Study
(Federal) On campus Well paying Doesn’t count as
“income” for purposes of FAFSA and CSS:Profile
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CAL GRANT Great explanation in Booklet
pages 16-18. Key Points:
Need Based (see income ceilings on Supplemental Handout)
May only be used at a California School.
Deadline to submit FAFSA and gpa is March 2. (Don’t worry about gpa submission—done by high school registrar in fall 2012.)
More about Cal Grants Different amounts
depending on which California school you attend: CSU: $5,970 UCs: $12,192 Private: $9,223
Different types of Cal Grants: A,B &C Info. in Booklet
California Aid Report (CAR) You will receive your CAR electronically. Will notify you if you will receive a Cal Grant. See page 13 of Booklet for more information.
Financial Aid Packages You will receive your
financial aid package shortly after you receive your offer of admission from a college or university.
Compare the packages using Chart on Page 15 of Booklet.
The more Free Money, the better the package.
Universal College Acceptance Date
MAY 1, 2013 The last day to pay your deposit to the
college or university of your choice! Deposit is usually between $500-$1000.
Remember: Need to fill out FAFSA and
CSS:Profile every year. Save all PINs and copies of
submitted paperwork. Much of info is transferred
from this year’s form to next year’s form!
Due dates are later in the Spring for continuing students.
WARNING: “Certified College
Financial Planners/Advisors”are also Licensed Life Insurance Brokers who are trying to sell you expensive financial products to “shelter your assets.”
Please be careful!!!
Confused? Overwhelmed? Read your Booklet & Handouts. This PowerPoint on FTHS Counselors’
page on website. Use the “Help” function as you
are filling out forms. Ventura College FAFSA Workshops.
Book Recommendation “Paying for College
Without Going Broke” by Kalman Chaney 2013 ed. Two part guide:
First goes over the financial aid process
Second goes over the FAFSA & CSS:Profile step by step
Available at bookstores and online.
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We Appreciate Your Help! Thank you to:
Mrs. Ferris and her AVID team and students.
Ventura College Mrs. Vega and the counselors. Mrs. Kapala and the college and
career staff. Mr. Bova, Mr. Cohen and the rest
of the Foothill Staff. PFSO for the delicious
refreshments. Parents and Students for making
this evening a success!
Questions?