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Top 10 Things to Know About Financial Aid for
College(in 30 minutes or less)!
Jerry Cebrzynski
Lake Forest College
““Planning” for College costsPlanning” for College costs
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
How a College can helpHow a College can help
TimelineTimeline
Your next stepYour next step
Choosing a CollegeChoosing a CollegeBest FitBest Fit
► ProgramProgram
► LocationLocation
► SizeSize
► Mix of StudentsMix of Students
► AcademicsAcademics
► ExtracurricularExtracurricular
► FacilitiesFacilities
► Financial ConsiderationsFinancial Considerations
Undergraduate Student Aid by Source and Type (in Billions), 2010-11
SOURCE: The College Board, Trends in Student Aid 2011, Figure 2A.
1. Everyone should apply for aid
► 82% of all full-time, first-time (FTFT) undergraduate students receive some form of financial aid
► 92% at private colleges; 76% at public institutions
► Nearly half (48%) of FTFT undergraduate students received a Pell Grant
► Sometimes being rejected for federal aid is a Sometimes being rejected for federal aid is a prerequisite for receiving private awardsprerequisite for receiving private awards
2. 2. What is Financial What is Financial Aid?Aid?
► ScholarshipsScholarships
► GrantsGrants
► Student LoansStudent Loans
► Work-StudyWork-Study
Two Categories of Financial Aid
From College as well as from foundations, etc. Specific criteria eligibility Solely based on student’s credentials
Calculated from FAFSA and other aid applications Sources can be federal, state, institutional Types include grants, student loans, work-study
Merit-based
Need-based
► 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
3. 3. Financing a College Financing a College Education is “A Partnership”Education is “A Partnership”
► Is committed to removing financial barriersIs committed to removing financial barriers
► Educates students and families through quality Educates students and families through quality
consumer informationconsumer information
► Provides services that do not discriminateProvides services that do not discriminate
► Maintains the highest level of professionalismMaintains the highest level of professionalism
The Financial Aid OfficeThe Financial Aid Office
Average Undergraduate Budgets2011-12
SOURCE: The College Board, Trends in College Pricing 2011, Figure 1.
$17,000
$38,500
Direct costs vs. Indirect CostsDirect costs vs. Indirect Costs
► 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 Calculators
►Online, College-specific estimator
►Average grant/scholarship available to a family like yours
►Average student loan and work-study eligibility
►Estimated award is not a promise, a guarantee, or an actual aid offer
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” #
5.5. 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
► 2013-2014 available now!2013-2014 available now!
► FAFSA.GOVFAFSA.GOV
► 7 Steps7 Steps
► Signed and submittedSigned and submitted
electronicallyelectronically
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
E-mail notificationE-mail notification
19 million (99%) FOTWs processed 12/13 so far19 million (99%) FOTWs processed 12/13 so 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
Start Here for all options –
Initial FAFSA Entry Renewal Application Entry FAFSA Corrections Providing Signatures Continuing a Saved FAFSA Viewing Transaction History
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► “Paying for help”► Renewal of Aid
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
Cost of Attendance
Family’sContribution
FinancialNeed- =
How much aid can a student receive?How much aid can a student receive?
Financial NeedFinancial Need
7. 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• the College’s needs as it shapes itsthe College’s needs as it shapes its
freshman classfreshman class
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
DeadlinesDeadlines
► Know each College’s priority deadlinesKnow each College’s priority deadlines
Read and retain all communication you receiveRead and retain all communication you receive
► Contact schoolContact school
Merit scholarship deadlinesMerit scholarship deadlines
Early Action/Early Decision/Regular Decision deadlinesEarly Action/Early Decision/Regular Decision deadlines
Deadlines for supplemental documents (tax returns, Deadlines for supplemental documents (tax returns, etc.)etc.)
TimelineTimeline► Complete FAFSA after January 1Complete FAFSA after January 1
► Receive a Student Aid Report (SAR) 48-72 Receive a Student Aid Report (SAR) 48-72 hours laterhours later
► Review SAR for correctnessReview SAR for correctness
► Check if other additional application required Check if other additional application required or beneficialor beneficial
► Receive Financial Aid Award Letter before Receive Financial Aid Award Letter before May 1May 1
10. 10. Ask for Ask for
Right here at HPHS and DHSRight here at HPHS and 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