Applying for Financial Aid 2018-2019 Academic Year Sean Martin Director of Financial Aid Services Telephone: 860-439-2058 E-Mail: sean.martin@conncoll.edu
Where do I start? • Visit college websites for : – Application REQUIREMENTS and DEADLINES • Net Price Calculator – Found on each College’s website to help you determine your ESTIMATED Expected Family Contribution (EFC) FOR ONE YEAR – Each calculator is unique to that college’s awarding policies. – Outcome is not an offer admission or financial aid.
NET PRICE CALCULATOR TIPS • Carefully read all instructions and pop ups. • If necessary, estimate income as close as possible. OK to use calculator more than once. • Don’t forget untaxed income, e.g. tax deferred pensions or losses on tax return • What to do if parents are divorced -- – Combine income from both parents/households. – Be careful what assets you put in the calculator.
What goes into paying for Education? • Family’s ability to pay; not their willingness to pay. • Federal and State funding. • Institutional grants (money given by the College). • Outside scholarships. • Does the college offer merit or athletic scholarships? • Were the financial aid applications and supporting documentation submitted on time?
Definition of Financial Need Cost of Attendance LESS Expected family contribution (EFC) LESS Other financial assistance EQUALS Financial need
Cost of Attendance ➢ Tuition ➢ Room & Board ➢ Books & Class Supplies ➢ Transportation ➢ Miscellaneous and Personal Expenses (e.g. purchase of a computer, health insurance fee, dorm room items needed)
Comparison of Need by Cost ( Assumes full-time enrollment ) 4 Year Private 4 Year Public 2 Year Public Cost of Education $65,000 $25,000 $ 7,000 Expected Family Contribution (EFC) $10,000 $10,000 $10,000 Need $55,000 $15,000 0
Meeting the Full Need or Gapping College A B Cost of Education $65,000 $65,000 Expected Family $ 10,000 $ 10,000 Contribution (EFC) Need $55,000 $55,000 Aid Awarded $55,000 $35,000 Unmet Need 0 $20,000 Add this to EFC!
Family Contribution Components 2018-19 ❑ USING “PRIOR-PRIOR” YEAR INFORMATION ❑ Parent(s)’ 2016 income ❑ Student’s 2016 income ❑ Parent assets value at the time of the application ➢ Exclude retirement account balance or primary residence home equity ➢ Include trusts, equity value of investment properties, business net worth ➢ Include 529 plans set up by parents (not UGMA/UTMA* accounts) ❑ Student assets value at the time of the application ➢ Include trusts, if student is beneficiary and UGMA/UTMA* accounts ➢ 529 plans set up by someone other than a parent ❑ # of household members : must provide at least 50% support ❑ # of dependents attending college ( at least half-time) * UGMA/UTMA : uniform gifts to minors act/uniform transfers to minors act where the student owns the account but the parent is the “custodian” or administrator of the account
Untaxed Income Where do I find these? FROM THE FEDERAL INCOME TAX RETURN, FORM 1040 • Education Credits (1040, line 50) • Health Savings Account deduction (1040, line 25) • Tax Exempt Interest (1040, line 8b) • Untaxed portions of Pension/Annuity withdrawals (1040, line 16a – 16b) • Untaxed portions of Retirement account withdrawals (1040, line15a – 15b) • Untaxed portion of Social Security benefits (1040, line 20a – 20b) • IRA or SEP/SIMPLE/Qualified Plan contributions (1040, line 28 & 32) • Earned Income Credit (1040, line 66a), possibly • Additional Child Tax Credit (1040, line 67), possibly • Maybe : depreciation/losses from 1040, Schedule C, E or Business Income Tax Return
Untaxed Income Where do I find these? ADDITIONAL ITEMS NOT FOUND ON THE FEDERAL INCOME TAX RETURN, FORM 1040 • Child Support Received (not on 1040) • Military/Clergy * housing allowance benefit (not on 1040) • Pension contributions (W2 box 12 D, E, F, G, H & S ) • Make sure you don’t put untaxed income /assets in multiple places because it looks like extra income/assets! (i.e. retirement funds in retirement balances and in investment balances) * This includes any employer paid housing; i.e. school employees required to live on campus and not charged for that housing.
Federal Aid Eligibility Determined Using the FAFSA (FREE Application for Federal Student Aid) ❑ 2018-2019 FAFSA available 10/01/2017 on www.fafsa.ed.gov ❑ Must be a U.S. Citizen or an Eligible Non-Citizen ❑ A parent & the student must create a user name and password for the FAFSA at www.fsaid.ed.gov ❑ EXCLUDE: ❑ Home Equity in your primary residence ❑ Information about the noncustodial parent ❑ INCLUDE: ❑ Custodial parent and stepparent incomes are included ❑ MULTIPLE DEPENDENTS IN COLLEGE ❑ Parent contribution is divided by the # of dependents* in college ❑ *dependents must be enrolled at least half time in undergraduate or graduate studies ❑ Parents in college are NOT included in this number. ❑ Unmarried but living together/same sex marriages: Income from both partners is used .
www.fafsa.ed.gov
Helpful Tips When Completing the FAFSA • Make sure you use your LEGAL NAME (cross checked w/ SSA) • Parents and students must provide their SSNs and DOB – if a parent does not have a SSN, enter zeros. • When reporting assets, in addition to savings/checking and liquid (non retirement) investments, remember to include: ➢ % of ownership of Investment real estate equity (Value minus Mortgage) ➢ If renting out a portion of primary residence, include that % of value – debt. ➢ % of ownership in legal trusts (Remember wills are not trusts.) ➢ 529 College Savings Plans: ➢ in parent’s name -- include in parent’s investment balances. ➢ in name of someone other than parent – include in student’s investments. ➢ Business/investment farm net worth (value minus debt) ➢ not if more than 50% family owned and with less than 100 employees
Changing the FAFSA • You can update the FAFSA for the following: – adding a college – updating income, if necessary – correcting errors • It is recommended (and may be required) to use the IRS Data Retrieval tool on the FAFSA to update your income – (Currently unavailable – but should be back on-line later this year)
CSS Profile (not used by all schools) determines Institutional Grant Eligibility ➢ CSS Profile : on College Board website cost: $25 + $16 for every additional school listed ➢ College Board website has a list of those schools that use the CSS Profile ➢ Completed using custodial parent and student information ➢ The non-custodial parent information required ➢ By completing the Non Custodial Parent Statement on College Board website ➢ Items that may be included: ➢ Primary residence equity ➢ L osses on federal income tax return or depreciation associated with a business or investment property may be added back ➢ Parent contribution might not be divided equally for # in college: ➢ no allowance for dependents in graduate school ➢ reduced allowance for a lower cost institution (i.e. community college) ➢ Reduced or no allowance for siblings receiving substantial merit/athletic aid ➢ Minimum student contribution: anywhere from $1,000 to $2,200
http://student.collegeboard.org/css-financial-aid-profile
CSS Profile Tips In addition to the assets reported on the FAFSA, you will also be required to report: – Primary Residence Equity (value minus mortgage balance) (not necessarily used in formula) – Value of your retirement accounts ( although not used in formula ) – Business net worth (value minus debt) Also, use the comment section to relay special circumstances --i.e. a loss of income, one time income or unusual expenses.
CSS Profile Tips • Once the Profile has been submitted, you will not be able to make corrections. So be careful! – Contact your school if you need to update the information. • Many colleges participate in the College Board’s IDOC document imaging service. – You send your federal income tax returns, W2 forms, income statements and other required documents to IDOC – Participating colleges listed on your profile can then access the docs electronically. – Saves you multiple copying /mailing time and expense. – A very secure site.
Remember! ➢ Grants/Scholarships do not have to be repaid ➢ unless a student withdraws during a term. ➢ May be considered taxable income -- any amount of grants/scholarships over the cost of tuition and books. ➢ Student loans must be repaid. ➢ Additional online requirements must be completed . ➢ Federal Work Study provides income from a campus job ➢ This does not go toward the tuition bill. ➢ This is paid to the student in the form of a paycheck or direct deposit.
Sources of Need Based Aid Federal Grants ❑ Federal Pell Grant – up to $5,920 ❑ Federal SEOG Grant – up to $4,000 ❑ Federal TEACH Grant – up to $4,000 possibly going away ❑ Funding for 2018-2019 has not yet been determined. www.studentaid.ed.gov for detailed information about these programs.
Recommend
More recommend
