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College FinancingParent Primer

Dr.Linda DagradiWilliston Northampton School

February 2011

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GOALS

Increase understandingof the college financingprocessRelieve stressDevelop awareness of

tools and resources

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PARENTAL FEAR

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Good enrollment decisionsA process not an event!

T imeResearchI nvolvementProcess

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Putting the Pieces TogetherMaking a Good Decision

Get organized Collect information Communicate

Develop a Plan Check assumptions & expectations

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A realisticfinancingplan

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College Cost IssuesSticker shockPrice vs CostShould we apply for admission?Defining affordabilityProjected student debtThe Best Fit or the Best Deal

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Cost of Attendance

Direct costs Tuition Fees

Housing & food (residents)Indirect costs

Transportation Books

Personal Other educational expenses

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Understand the Process

Financing Delivery System

System partnersApplication processTypes of aidDecisions

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Partners

Federal governmentState government

Colleges & UniversitiesPrivate organizationsFamily

LendersAgencies

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SOURCES OF AIDFederal government

State government

Colleges &Universities

Private

organizations

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Types of Financial Aid

GIFT AID Grants or scholarships Need based or merit No repayment required

SELF HELP Loans

Must be repaid Student is theborrower

Work Study

Student mustearn theaward whileenrolled

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Types of Financial Aid

NEED-BASEDFamily ability to payVariable eligibilityCost of collegeAvailability of fundingCollege calculates familycontributionCollege awarding policyAppeal process

MERIT Measure of qualityFamily resources not afactorAward levels pendingmission & resources of theawarding entityNo appeal process

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Forms Forms Forms

FAFSAPROFILEInstitutional ApplicationTax returns

Other family information

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Financial Aid Application Process

Deadlines and priority dates are critical Late filers jeopardize eligibility Eligibility vs. availability of funds

Shift from paper to electronic format

Colleges define document requirements

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Get a USED PIN

Legal signatureUnique to the person

Parent PIN Student PIN

www.pin.ed.gov

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Where Does All the Data Go ?

Confidentiality & Security

Who gets what formsDeadlines & priority datesData flow

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PIN

Student Parent

FAFSA

Use FAFSA Worksheet ~ estimate if necessary ~ file early File after January 1 @ www.fafsa.gov

CPS

Central processing system

Conducts database matches Distributes data and processing results

SAR

Student Aid Report to student by email link or USPS

ISIR

Institutional Student Information Record Electronic data file sent to colleges from CPS

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Cost of Attendance(COA)

- Expected FamilyContribution (EFC)

= Financial Aid Eligibility

Financial Aid Formula

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Expected Family Contribution

IS a measure of capacityover time to absorbeducational costs

IS NOT a dollar amountexpected from currentincome or assets

IS NOT an estimate ofextra cash available.

PC

+

SC

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Family CommunicationDefine affordabilityCheck expectationsDiscuss borrowing

Organize & PlanCalendar for due dates

Start a FA fileApplication responsibilityTrack questions

ResearchCollege costsScholarshipsCollege financing programsCollege application deadlines

Visit FAFSA websiteGet a federal PIN

Parent PINStudent PINAttend workshops

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www.collegeboard.comFinancial aid calendarCSS PROFILEEFC calculatorStudent loan calculatorParent debt calculatorEducational loansCompare Your Aid AwardOutside aid search

College CostsFinancial aid mythsSavings options

RESOURCES

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Federal Department of Education

1-800-4-FEDAID www.ed.gov www.fafsa.gov

Mapping Your Future www.mappingyourfuture.org

National Assoc. of Student Financial Aid Administrators www.nasfaa.org

Financial Aid Information Page www.finaid.org

MA Educational Financing Authority www.mefa.org

College websites