Welcome to HESC’s presentation “Student Financial Aid: What Every High
School Senior and Parents Should Know.”
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Financial aid is awarded from several sources and can be based on financial
need or other criteria, such as academic excellence or athletic ability.
Non-need-based financial aid is also sometimes referred to as merit-based aid.
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The Federal government, New York State, colleges and other organizations all
offer financial aid. I will discuss the types of aid each entity offers in a few
minutes.
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First, it’s important that you understand the different types of financial aid
available.
Scholarships and grants provide “free money” – which means you do not have
to pay any of the money back. Many scholarships and grants are awarded
through the financial aid application process and may be based on your financial
situation or on your academic, athletic or other achievements or a combination
of all these factors.
The Work-Study program provides on and off campus jobs and the student is
paid based on the hours he/she works.
Federal loans are available for students and parents to help with the cost of
college. Loans should always be the last resort as they must be repaid, with
interest.
Remember, when you are applying for financial aid -- always go for the “free
money” first!
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The Federal Student Aid or FAFSA is your first step in applying for all federal and
state financial aid. We will talk about the FAFSA in a few minutes.
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The federal government has developed a calculation to determine your financial
need, which is your ability to pay for college based on your family finances and
situation.
Information about a family’s “ability to pay” is gathered from the FAFSA.
Let’s take a moment to look at how a family’s need is determined.
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This is the formula a school will use to calculate financial need. Cost of
attendance minus expected family contribution equals financial need.
Let’s go over each component of the calculation.
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The cost of attendance or COA (as it is commonly called) is determined by the
college.
The components on the left side of the screen are always included in the
college’s cost of attendance.
The right side components reflect items that may be included based on a
student’s actual situation. They are not automatically included in a COA.
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Your EFC is a special number that college financial aid staff will use to
determine how much financial aid you can receive if you attend their school. It is
not the amount of money your family will have to pay for college. The EFC is
calculated according to a formula within the FAFSA application and is based on
federal law.
The EFC is calculated using the Federal government’s formula with the data
provided on the FAFSA for both the parent and the student.
It is important to note that a family’s federal EFC always remains the same
regardless of the college the student attends.
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Once the COA and EFT are calculated, the financial need is then determined.
As we said earlier, each college determines its own Cost of Attendance (COA).
The Expected Family Contribution (EFC) which is based on the federal formula,
remains the same for each college.
Subtracting the EFC from the COA determines your financial need for each
college.
In the above example, the student’s financial need is the greatest for College C
and that institution may provide the most need-based aid.
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Now let’s take a closer look at the various types of financial aid programs and
their eligibility requirements.
As mentioned earlier, sources of financial aid come from the federal
government, state government, and the college.
We will talk about private scholarships a bit later.
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Here are the federal financial aid programs.
You may be eligible for some or all of these types of aid, based on the
information from your financial aid application- the FAFSA.
Now let’s discuss each program in a bit more detail.
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The Pell Grant is an entitlement program- which means if you are eligible, you
will receive the grant. It is usually awarded to students with a higher financial
need.
The grant is determined based on your COA, EFC, and your enrollment status.
You must be in a matriculated program and taking at least three credits to be
eligible. You also need to be in good academic standing while you are enrolled
in college.
Currently, you can receive up to $5,645 per year. Your college will determine
your exact Pell grant award and notify you in their financial aid award letter.
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Funds for the SEOG grant are allocated to colleges from the federal
government. Not all colleges participate in this program and funds are limited.
This grant must be awarded to the students with exceptional need so priority is
given to those students who receive Pell grant awards. Because the funds are
limited you may not receive this grant even if you receive a Pell grant. So, make
sure you file the FAFSA as early as you can.
SEOG grants are up to $4,000 per year.
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Federal work study is another campus-based program. Not all schools
participate in the program.
Unlike other financial aid programs, funds are not applied to the tuition bill.
Students are allocated a certain amount of work study and must work on or off-
campus in order to earn the funds. This is a type of part time job through the
college. The job and hours assigned are worked out between the student and
school’s student employment office or work-study coordinator. You will then
receive a paycheck for the number of hours worked and you can continue
working up to the award amount.
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The federal government also administers loan programs. Colleges will determine
your eligibility for loans and include that eligibility in your award letter but
remember, always seek and apply for all federal, state, institutional and private
grants and scholarships first. Loans should be the last resort as they must be
repaid with interest.
**For time purposes I will give you a brief overview of these programs.
However, you can refer to the “How You Can Pay for College” booklet
where we have more details on specific federal loan programs. You can
also find more detailed information on our website, hesc.ny.gov.**
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Now let’s discuss the eligibility to receive federal aid.
In order to receive federal aid, a student must have a high school diploma or
equivalent, such as a GED;
• be enrolled or accepted for enrollment as a matriculated student working
toward a degree or certificate in an eligible program, and
• be a U.S. citizen or eligible non-citizen.
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The student must have a valid social security number, and be making academic
progress while attending school.
Males between the ages of 18 and 26 must register with selective service.
Now let’s talk about the financial aid programs that New York state provides.
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New York State administers several grant, scholarship and award programs.
These are few of the programs, and the complete list can be found on the
HESC.ny.gov website.
While most of these are grants or scholarships, some of the programs, like the
NYS Math and Science Teaching Incentive Program, have a service component.
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The Tuition Assistance Program (TAP) is a need based grant program that can
be used for tuition only.
Currently the maximum award is up to $5,165 per year and you can be a full
time or part time undergraduate.
You must be attending a NYS eligible college to receive a TAP award. It is not
available for out of state study.
The award is calculated using your NYS taxable income, unlike the FAFSA
which uses federal tax information.
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The amount of your TAP award is determined by a number of factors such as
the year you first receive TAP, the college you are attending, your dependency
status, and other siblings in college.
Your combined family NYS taxable income currently cannot exceed:
•$80,000 for family
•$40,000 for married with no tax dependents
•$10, 000 for single independents.
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Scholarships such as the Aid for Part Time Study (APTS) are available at
participating colleges for students who attend school part time.
Students may receive an award of up to $2,000. Not all schools participate in
this program and the funds are limited.
In addition, the NYS Scholarship for Academic Excellence is awarded to the top
scholars at each high school. The awards are $500 and $1500 and those
awards are selected by the high school. Criteria varies.
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The eligibility for New York State programs is different from the federal eligibility that we discussed earlier.
To be eligible for NYS grant and scholarship programs, students and parents must be NYS residents for at least the last 12 months. Students must also be attending an eligible NYS school, and meet other criteria such as income limits.
More details about the state programs are available on hesc.ny.gov.
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You may also be eligible for institutional aid from your college. For many
colleges, the FAFSA will provide a basis for need based institutional aid.
Colleges have a limited amount of institutional grant and scholarship money, so
be sure to complete the FAFSA early.
The college will have eligibility criteria for both need based and non need based
programs. The college’s website can provide you with information on this
criteria.
Institutions also award grants and scholarships based on academic, athletic, and
other talents. Make sure the college is aware of any special skill or talent you
have so you are considered for any of these special awards.
Some colleges require an additional financial aid application to be considered for
this type of aid. Keep track of all the different deadlines and applications
required at the schools to which you are applying. You do not want to miss any
opportunity to receive FREE institutional money.
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A great way to find out more details about a particular college’s institutional aid
programs, application requirements, and deadlines, is to carefully research
financial aid on their website.
Here is an example of Syracuse University’s financial aid webpage that shows a
breakdown of their required applications and deadlines along with links to find
out more about their cost of attendance and institutional aid programs.
You want to make sure you read any information they provide carefully, so you
do not miss out on any aid opportunities!
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When researching a college’s financial aid website, it may be helpful to utilize
their Net Price Calculator.
Net price calculators allow you to enter your information, such as your
household size and income, to generate an estimate of a specific college’s cost
of attendance, average aid package (based on what families with similar
demographics have received), out-of-pocket costs, average indebtedness, and
average net price – which is the result of subtracting cost of attendance from
grant aid.
Net price calculators vary in format from school to school. The results are
estimates and averages to be used as a planning tool only, as schools cannot be
held liable to meet the figures presented within the calculation.
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Potential TAP applicants can get an estimate of their TAP award at
www.hesc.ny.gov.
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Now, let’s talk about the application process for federal and New York state
student aid.
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ALL students should complete the FAFSA. Again, FAFSA stands for the FREE
Application for Federal Student Aid.
The FAFSA can be accessed by going online to www.fafsa.gov. Don’t make the
mistake of going to a site such as FAFSA.com where they charge you to file
your application.
Students who are applying to college for the 2014-2015 academic year should
complete the FAFSA as soon as possible after January 1. Make sure to use the
2014-15 application not the 2013-14 FAFSA application.
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Both the student and one of their parents needs to apply for a Federal Student
Aid Personal Identification Number or PIN. The PIN is used to electronically
sign the FAFSA and can be applied for as part of the FAFSA application or
separately on the PIN website, www.pin.ed.gov.
If a parent does not have a valid social security number, they will not be able to
apply for a PIN to electronically sign the FAFSA. Instead, the parent will need to
print the FAFSA signature page at the end of the FAFSA and sign and mail the
document to Federal Student Aid processing at the address listed on the
signature page.
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The 2014-15 FAFSA form is available at fafsa.gov.
It is important to make sure you file on time and are aware of any additional
application materials required by the college. Keep track of deadline dates for
all colleges where you plan to apply and make sure you have completed the
FAFSA before the earliest deadline date.
The online application features built in skip logic to guide you through the
process.
Once you submit the application you can check your status online and make
corrections if necessary.
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The FAFSA asks for personal and financial information about the student, and
parents if the student is determined to be dependent. Depending on your
circumstances (for instance, when you filed taxes or what tax form you used),
you might need the following information shown on this slide as you fill out the
FAFSA.
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It is highly recommended that FAFSA applicants use the IRS Data Retrieval
Tool. It is available as part of the parent and student tax information sections on
the FAFSA and automatically downloads and inputs fields from the federal tax
return onto FAFSA.
You must file your federal income tax returns prior to using the Retrieval Tool.
For a variety of reasons, not everyone may be able to use it.
First, the tool becomes available in early February. Anyone filing the FAFSA in
January or the first week of February will not be able to use it. However, once
the tool is available, early filers or anyone who is selected for verification can
update their information using the tool through the FAFSA correction process.
You cannot use the retrieval tool if:
• You have an amended return
• Are married filing separately
• File a foreign tax return
• Use a tax ID number instead of a SSN
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This is the IRS screen the applicant needs to complete to initiate the data
transfer.
You must be careful to enter the home address exactly as it appears on your tax
return, including all abbreviations and punctuation.
Using the retrieval tool may avoid the need for additional information at a later
time.
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Now let’s go over some of the most common questions about the FAFSA.
If we don’t think we qualify for financial aid, do we still file the FAFSA? Yes.
We always encourage students and families to apply for financial aid. It is wrong to automatically
assume that you do not qualify for financial aid and some colleges require the FAFSA for merit
based aid.
Does the student provide parents’ financial information? Yes.
Students are required to provide their parent or parents’ information if they do not meet the FAFSA criteria for independence.
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If a student’s parents are no longer married to each other, whose info is
provided?
If the parents are no longer married, the student’s custodial parent must
complete the application.
If a custodial parent is remarried, does student include stepparent’s
income?
If the student’s parent has remarried, both the parent and stepparent must
complete the FAFSA.
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Here is a list of common errors made when completing the FAFSA. Be sure to read each question carefully and use the online help text if you need clarification on a question.
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Once you successfully complete the FAFSA, you will see the confirmation
page.
If you indicated you are a resident of New York State and listed at least
one college located in New York State on your FAFSA application, the link
highlighted in this screen shot will be present on the confirmation page.
Using the link will bring you to the HESC TAP application web portal.
Make sure pop-up blockers are set to allow pop-ups on the FAFSA
website!
First time TAP applicants will need to establish a HESC User ID and PIN
number as part of the application process.
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The CSS profile is an additional aid application that some colleges require. The
profile collects more detailed information than the Free Application for Federal
Student Aid (FAFSA). It is available in early October and participating colleges
in many cases use this as the first step in determining financial aid.
Colleges will tell you if the CSS Profile application is required.
Additionally, it is important to note that the CSS Profile is not free. A $25 fee for
the first school and a $16 fee for each additional school reported to is charged.
A limited number of fee waivers are available for each high school. Fee waivers
are granted automatically through the CSS Profile application process but can
also be obtained through the college requiring the application.
If you need assistance with any of the questions on the CSS Profile, check with
the college who is requiring the form for advice on how to proceed.
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Now that we’ve reviewed the federal and New York State student aid application process, let’s talk about some next steps.
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Once you have successfully filed your FAFSA, the colleges and universities you listed on the application will receive an electronic transmission of the application results.
When the college has the electronic application record they will package the applicant for financial aid and create an award letter for the student. During the awarding process, colleges may need additional information so make sure you watch your email for any requests.
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When all requirements are satisfied with a college, you will receive an Award
Letter indicating your aid eligibility.
Award Letters are produced by the institution based on their own standards and
as a result they may vary in their length, detail, and clarity of what they are
offering the student. They may be issued to the student on paper or the student
may be asked to go online through a school portal to retrieve it.
Students may be required to accept or decline the awards they are being
offered.
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Compare your award letters based on the bottom line cost- the difference
between the cost of attendance and your financial aid package.
The colleges your are comparing may have vastly different sticker prices, but
your net price may be similar. HESC’s Financial Aid Award Letter Comparison
Tool helps you compare up to three financial aid award letters. The tool will
highlight the significant differences, calculate the net cost, and estimate the total
cost of your education.
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While you are gathering information about your colleges and applying for
federal, state, and institutional aid, you want to be sure to spend some time
researching private scholarships. There are thousands of programs and millions
of dollars available each year that come from a variety of sources, such as
businesses, religious institutions, employers, unions, and civic organizations.
You should begin your scholarship search now. Most of these programs have
their own application process, deadlines, and requirements, so the earlier you
start the easier it will be to apply for as many as possible.
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Here are some places for you to go to begin your scholarship search.
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When searching for private scholarships, be careful of scams where companies
guarantee that they can get scholarships on behalf of students or award them
"scholarships" in exchange for a fee. Also be careful of information given over
the internet. You want to make sure the organization you are applying to is
legitimate.
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And on the topic of scams, this is just another reminder that the first “F” in
FAFSA stands for FREE! You should not have to pay someone to complete
your FAFSA and TAP applications.
College financial aid offices as well as many school counselors can assist you
with your FAFSA questions.
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Additionally , financial aid professionals volunteer to support a large number of
free FAFSA assistance workshops, such as College Goal New York’s program
and HESC’s Start Here Get There FAFSA campaign across the state.
Our microsite for Financial Aid Awareness Month, StartHereGetThere.org, is
featured from mid December through March each year.
The website provides targeted information for students and families preparing
for college and applying for financial aid with tutorials, videos, and links to
applications as well as web chat and a toll-free hotline to get help from HESC.
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You can easily find events in your area to provide FAFSA filing assistance.
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