APPLYING FOR FINANCIAL AID FALL ‘17
St. Bonaventure University Majors/Programs: More than 50 undergraduate majors and programs including pre-health dual admissions programs, and more than 15 graduate programs, two of which are available 100% online. Financial Aid: More than 95% of students receive financial aid.
Knowledge is an investment If a man empties his purse into his head, no one can take it from him. An investment in knowledge always pays the highest return. – Benjamin Franklin
The Value of a College Education According to the US Bureau of Labor Statistics in 2015, average yearly earnings are higher for college graduates and unemployment rates are lower: Highest Unemployment Master’s degree Rate $69,732 Degree Master’s 2.4% Bachelor’s degree $59,124 Bachelor’s 2.8% High School 5.4% High school diploma $35,256
Goals of Financial Aid: Affordability To provide Access -- regardless of income To provide Choice -- regardless of cost To Recruit -- extraordinary students Paying for college is a “partnership” between the student, parents, college, government, and outside sources
Principles of Need Analysis To the extent they are able, parents have primary responsibility to pay for their dependent children’s education Students also have a responsibility to contribute to their educational costs Families should be evaluated in their present financial condition A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect its ability to pay
Sticker Price vs. Net Cost Sticker Price is the amount listed for tuition, fees, room, and board Net Cost is the amount after your financial aid is subtracted Net Cost is much more important since it was your actually pay
Net Cost Comparison School A School B Sticker Price = Sticker Price = $18,000 $35,000 Less: Financial Aid = Less: Financial Aid = $6,000 $27,000 Net Cost = $12,000 Net Cost = $8,000
What is the Expected Family Contribution (EFC) Amount family can reasonably be expected to contribute Stays the same regardless of college Two components Parent contribution Student contribution Calculated using FAFSA data and a federal formula The EFC does NOT necessarily equal what the family pays
Financial Aid Formula – How need is calculated Cost of Attendance - Expected Family Contribution = Financial Need
Need Varies Based on Cost 1 X 2 Y 3 Z EFC EFC Cost of Expected Family Need Attendance Contribution (Variable) (V ariable) (Constant)
Financial Aid Applications Free Application for Federal Student Aid (FAFSA) 1. Free www.fafsa.ed.gov New York State Tuition Assistance Program (TAP) 2. Can be linked when you file the FAFSA www.hesc.ny.gov CSS Profile 3. Required by some colleges/universities www.collegeboard.org
FAFSA Standard form that collects demographic and financial information about the student and family Application to apply for federal grants, loans, and work-study Colleges use EFC to award financial aid
Early FAFSA Can apply beginning October 1 st (rather than January) Will use tax return data from 2 years prior to start of academic year (2017-2018 academic year = 2015 tax return data)
Why changes to the FAFSA process? Better align the admissions and financial aid application processes to give students and families an earlier and more accurate idea of their anticipated financial aid and college costs Allow the use of actual rather than estimated tax information when submitting the FAFSA May result in reduced paperwork for verification
FAFSA – Getting the application started Create a Federal Student Aid ID (FSA ID) Available to create FSA ID (username/password) TODAY Students and parents should EACH create their own Federal Student Aid ID fsaid.ed.gov
Tips for starting the FAFSA Make sure the FSA ID has been created Read questions carefully – student vs. parent Do not have to wait until accepted for admission Info “as of the date you complete the form”
Frequent FAFSA Errors Social Security Numbers Divorced/remarried parental information Income earned by parents/stepparents Untaxed income U.S. income taxes paid Household size Number of household members in college Real estate and investment net worth
Who Are Considered Parents on the FAFSA? Biological or adoptive parents (regardless of gender) Parents married and living with each other Parents unmarried and living with each other Parent widowed or single Parents divorced or separated - answer questions for parent with whom student lived more during past 12 months. If equal time between each parent, answer for the parent who provided more financial support during the past 12 months If custodial parent has remarried, answer about that parent and the person whom parent married (stepparent)
Who Are Not Considered Parents on the FAFSA? Foster parents Legal guardians who have not adopted the student Relatives, such as grandparents, who have not adopted the student Stepparents who have not adopted the student and the natural parent in the household is deceased. Must use remaining biological/adoptive parent, if any.
IRS Data Retrieval Tool While completing the FAFSA, applicant may submit real-time request to IRS for tax data IRS sends real-time results to FAFSA application Applicant chooses whether or not to transfer data to FAFSA Tax returns must already be filed Could reduce documents requested by financial aid office
Special Circumstances Change in employment status Medical expenses not covered by insurance Change in parent marital status Unusual dependent care expenses Cannot be documented using FAFSA Send written explanation and documentation to financial aid office at each college
How does a college construct a financial aid award package? Schools attempt to meet your “financial need”. Financial aid is awarded utilizing gift aid first and then self-help (student employment and loans) up to the financial need. Total aid cannot exceed the total cost of attendance Need-based aid cannot exceed the demonstrated financial need. All aid (including outside/private scholarships) are included in the need calculation
Estimating your eligibility for financial aid Net Price Calculator - Colleges are required to have estimating tools on their website allowing families to get a reasonable estimate of net costs. FAFSA4caster - estimates your eligibility for federal student aid (on main page of FAFSA website fafsa.ed.gov)
Scholarships – based on merit Academic Scholarships Other merit-based scholarships Athletic, Music, Art, Leadership, etc . Endowed Scholarships Private Local community organizations Employers Internet Small scholarships add up!
Grants – based on need Federal Pell Grant – up to $5,815* FSEOG – up to $4,000 New York State Tuition Assistance Program (TAP) – up to $5,165* Institutional need-based grants *Figures for 2016-2017 academic year
Student Employment Federal College Work-Study Program On-campus work program Some positions are in community service Usually minimum wage typically 5 – 15 hours/week Maximum earnings typically $1,500 to $2,500/year
Loans William D. Ford Direct Loan Subsidized Federal Loan - $3,500 (1 st year) Unsubsidized Federal Loan - $2,000 Federal Parental Loan for Undergraduate Students (PLUS) Alternative/private education loans Always borrow federal loans first
Information on the Internet www.finaid.org www.studentaid.gov www.fastweb.com www.mappingyourfuture.org www.bigfuture.collegeboard.org www.nasfaa.org
Avoid Financial Aid Scams Organizations that offer to locate more aid and then charge you a fee Anyone who charges you a fee : for information about financial aid to complete the FAFSA to apply/receive a scholarship Organizations that guarantee you will get a scholarship or aid
Financial Aid Calendar For enrollment in Fall ‘17 Late summer/early fall 2016 – apply to college October/November 2016 – apply for aid (FAFSA) December 2016 – March 2017 – receive financial aid award letter from college May 1 st , 2017 – College Decision Day Summer 2017 – apply for loan September 2017 – classes begin, aid applied to account
529 College Savings Plans Tax-exempt college savings vehicles with a low impact on need-based financial aid eligibility since considered as an asset of the account owner and not the beneficiary FAFSA reporting: Parent - reported as parent asset Grandparent – not reported on the FAFSA However, distributions from grandparents are considered “cash support” on the FAFSA in the following year
America Recovery and Reinvestment Act (ARRA) of 2009 American Opportunity Tax Credit – up to $2,500 per student for families with incomes less than $160,000
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