NACAC Financial Aid 101 Paying for College Presented by Sandy Neel - - PowerPoint PPT Presentation

NACAC Financial Aid 101

Paying for College Presented by Sandy Neel Executive Director of Financial Aid University of Louisville

1. Do you know how much college costs, and what is included in the total cost? 2. What is the difference between grants, scholarships, loans, and work study? 3. How does a student receive financial aid?

Questions

More than half the students attending college in the United States receive some form of financial assistance.

Tuition and fees Cost of living in residence hall Cost of meal plans on campus Allowance for Books and supplies Allowance for Personal expenses and a few meals out Allowance for Transportation

+ +

Indirect costs included in the COA:

+ +

Billable or Direct costs typically charged by the college: these costs will show on the bill

How Much Will it Cost?

• Myth

– The published cost represents the true cost of a college or university.

• The Larger Story

– What really matters is the amount families actually pay for college. – This is called “net price.” or billable costs

5

Published Cost

The Net Price Calculator

Cost of Education (the total cost of attending college) – Expected Family Contribution (minus the

parents’ and student’s financial resources)

= Financial Need

Assessing Student Need

Expected Family Contribution (EFC) is the number used to determine students eligibility for federal student aid. The EFC calculations influenced by these factors:

• Income and potentially assets of the parents
• The amount the student can contribute from

earnings and savings

• Any monetary gifts the student receives
• Family size, age of oldest parent, number of children

currently attending college

Assessing Student Need

• FAFSA (Free Application for Federal Student Aid) –

https://fafsa.gov

• CSS Profile – profileonline.collegeboard.com
• Institutional aid applications

Be sure to check each individual school’s website to find

• ut what forms must be filed and when they must be filed.

The Financial Aid Process

The Free Application for Federal Student Aid

• Information Collected on the FAFSA

evaluates the families financial strength

• Determines Pell Grant Eligibility
• Provides the information to the school so a

financial aid package can be made and an award letter sent to the student

• Provides a more thorough picture of family finances
• Helps Financial Aid determine who needs

institutional aid and how much

• Allows families to outline special circumstances to

the school

• Gain access to institutional sources of funding that

may not be available through FAFSA alone

• Used by approximately 400 colleges and scholarship

providers

• Divorced and Separated parents may need to

complete the profile for both the custodial and non- custodial parent

The CSS Profile

Grants Scholarsh ips Work- Study Loans

Types of Financial Aid

Grants

Federal Pell Grants Federal Supplemental Education Opportunity Grants (FSEOG) State grants Institutional grants

Scholarships

May be for academic, athletic, leadership, music, theater, etc. Usually competitive Institutional National State (KEES) and Local including civic

• rganizations

Work-Study

Based on need Student is provided a job at an on-campus location such as Admission Office or library 10-15 hours per week At least minimum wage but may be above

Loans

Direct Loans

Subsidized and Unsubsidized

PLUS (Parent Loan for Undergraduate Students)

Private Loans

The Truth About Student Loans

Average Student Loan Debt in Average Student Loan Debt in Kentucky from 2015: $27,225

17

Average Price of a New Car: $31,252

Is College Worth the Cost?

KCTCS 4-Year Public 4-Year Private

$2,196 $2,196 $2,196

Family Contribution

$10,300 $20,700 $50,800

Award amounts shown are estimates only based upon an estimated EFC of $2196.

How Aid is Awarded

KCTCS 4-Year Public 4-Year Private

$2,196 $2,196 $2,196 $3,770 $3,770 $3,770

Federal Pell Family Contribution $10,300 $20,700 $50,800

KCTCS 4-Year Public 4-Year Private

$2,196 $2,196 $2,196 $3,770 $3,770 $3,770 $1,900 $1,900 $1,900

CAP Grant Federal Pell Family Contribution

$10,300 $20,700 $50,800

KCTCS 4-Year Public 4-Year Private

$2,196 $2,196 $2,196 $3,770 $3,770 $3,770 $1,900 $1,900 $1,900 $2,920

KTG CAP Grant Federal Pell Family Contribution

$10,300 $20,700 $50,800

KCTCS 4-Year Public 4-Year Private $2,196 $2,196 $2,196 $3,770 $3,770 $3,770 $1,900 $1,900 $1,900 $3,000 $1,500 $1,500 $1,500

KEES KTG CAP Grant Federal Pell Family Contribution

$10,300 $20,700 $50,800

KCTCS 4-Year Public 4-Year Private $2,196 $2,196 $2,196 $3,770 $3,770 $3,770 $1,900 $1,900 $1,900 $2,920 $1,500 $1,500 $1,500 $934 $1,000 $1,000

SEOG KEES KTG CAP Grant Federal Pell Family Contribution

$10,300 $20,700 $50,800

Award amounts shown are estimates only based upon an estimated EFC of $2196.

Award amounts shown are estimates only based upon an estimated EFC of $2196.

KCTCS 4-Year Public 4-Year Private $2,196 $2,196 $2,196 $3,770 $3770 $3,770 $1,900 $1,900 $1,900 $3,000 $1,500 $1,500 $1,500 $934 $1,000 $1,000 $3,000 $3,000

FWS SEOG KEES KTG CAP Grant Federal Pell Family Contribution

$10,300 $20,700 $50,800

KCTCS 4-Year Public 4-Year Private

$2,196 $2,196 $2,196 $3,770 $3770 $3,770 $1,900 $1,900 $1,900 $3,000 $1,500 $1,500 $1,500 $934 $1,000 $1,000 $4,000 $4,000

$8,000 $20,000

Institutional Aid FWS SEOG KEES KTG CAP Grant Federal Pell Family Contribution

$10,300 $20,700 $50,800

How to Get More Families to Complete the FAFSA

• Host a Financial Aid Night
• Chalk on sidewalk reminding of October 1 FAFSA

filing date

• Tee-Shirts
• Postcards home to parents
• Announcements
• Texts

The earlier parents or guardians become aware of the costs associated with college, the better the family can incorporate educational costs into their savings plan.

Questions