Elaine SolingaDirector of Financial Aid ServicesConnecticut CollegeFinancial Aid ServicesTelephone: 860-439-2058E-Mail: finaid@conncoll.edu

Applying for Financial Aid2009-2010 Academic Year

Introduction

What you will learn: What financial aid is Sources of financial

aid When and how to

apply How to pay the bill

Visit college web sites for application requirements and

deadlines.

Calculators - www.collegeboard.com

Determine Your Estimated Family Contribution at www.fafsa.ed.gov

Free Scholarship Search www.finaid.org

Better Business Bureauwww.bbb.com

http://www.ed.gov/about/offices/list/oig/misused/index.html

Funding a College Education - Who Are the Players?

Family

Federal & State Governments

Outside agencies

The college

How Much Financial Aid Will Be Offered?

Dependent on a family’s ability to pay.

Dependent on the funding policies established by the federal and state governments and the college.

Were the applications submitted by the deadline?

Definition of Financial Need

Cost of Attendance

Expected family contribution (EFC)

Other financial assistance

Financial need

LESS

LESS

EQUALS

Comparison of Need by Cost

4 Year Private 4 Year Public 2 Year Public

Cost of Education

$50,000 $20,000 $ 7,000

Expected Family Contribution (EFC)

$10,000 $10,000 $10,000

Need $40,000 $10,000 0

Meeting the Full Need and Gapping

College A B

Cost of Education $50,000 $50,000

Expected Family Contribution (EFC)

$ 10,000 $ 10,000

Need $40,000 $40,000

Aid Awarded $40,000 $30,000

Unmet Need 0 $10,000

Cost of Attendance

Tuition and Fees Room and Board Books and Supplies Transportation Study Away Expenses Disability Expenses Miscellaneous and Personal Expenses

(purchase of a computer)

Family Contribution Components

Parent(s)’ 2008 income Including untaxed income such as: child support received,

annual contributions made to a retirement plan Student’s 2008 income Value of parent’s assets

Exclude principal value of retirement accounts Include cash, college savings plans, other savings, trusts,

bonds, money market, CD’s. Value of student’s assets

Include cash, savings, trusts, bonds, money market, CD’s. Number of household members Number of dependents attending college at least

half-time

Eligibility Assessed Using Federal Methodology

Based on information reported on the FAFSA (Free Application for Federal Student Aid, 2009-2010)

Formula determined by Congress that is used to determine eligibility for federal and most state funds

Home equity excluded No information from the non-custodial parent Custodial parent and stepparent incomes are

included Parent contribution divided by the # of

dependents attending college at least half-time

Eligibility Assessed Using Institutional Methodology

Based on information provided on the CSS Profile or a custom institutional application

Used by schools to award their own funds Home equity added in Information from the non-custodial parent is

required Tax losses may be added back Depreciation associated with a business or

investment property may be added back Parent contribution might not be divided equally:

Lower contribution for dependents attending community college, proprietary school, and in-state public school, graduate school

Minimum student contribution

Remember!

Grants do not have to be repaid (unless a student withdraws during a term).

Student loans must be repaid Federal Work Study provides income,

which does not have to be repaid, from a part-time job

Grants do not have to be repaid (unless a student withdraws during a term).

Student loans must be repaid Federal Work Study provides income,

which does not have to be repaid, from a part-time job

Sources of Need Based Aid - Federal

Federal Pell Grant – up to $4,731?? Federal SEOG Grant – up to $4,000 Federal AC Grant – up to $1,300 Federal National Smart Grant – up to $4,000 Federal TEACH Grant – up to $4,000 Federal Perkin Loans – up to $5,500 Federal Stafford Loan –

1st year = up to $5,500 ($3,500 subsidized) 2nd year = up to $6,500 ($4,500 subsidized) 3rd-5th year = up to $7,500 ($5,500 subsidized)

Federal Work Study - no limit but average range is $1,200 to $2,000

Sources of Need Based State Aid

State grants for CT residents Connecticut Capitol Scholars, www.ctdhe.org

$500 -$3,000 Deadline is February 15!!!

Connecticut Independent College Grant – award amount determined by College

CT Aid for Public College Student Grant – award amount determined by College

Can export Capitol Scholars Grant to these states: MA, RI, VT, NH, ME, PA-

Sources of Institutional Grants and Outside Resources

Institutional Grants – provided by the college either from tuition revenue and/or endowed funds

Outside Resources – Employee Tuition Benefit National Merit, Rotary, Garden Club, etc.

High school guidance office www.finaid.org

Student Eligibility Requirements

U.S. Citizen or eligible non-citizen a permanent U.S. resident with a Permanent

Resident Card (I-551); a conditional permanent resident (I-551C); the holder of an Arrival-Departure Record (I-

94) from the Department of Homeland Security showing any one of the following designations: “Refugee,” “Asylum Granted,” “Parolee” (I-94 confirms paroled for a minimum of one year and status has not expired) or “Cuban-Haitian Entrant.”

Student Eligibility Requirements, con’t.

If male and age 18 must register for Selective Service;

Have a valid social security number; Must be enrolled as a regular student in an

eligible degree or certificate program; Must have a high school diploma or an

equivalent; While enrolled in college, must make

satisfactory academic progress. Must have resolved any drug conviction

issue.

Forms Required

College A B C

FAFSA X X X

CSS Profile X X

College Form X X

Tax Returns X

Non-Custodial Form

X X

Business Supplement

X X

Due Date 03/15 02/15 02/01

FAFSA on the Web’s Homepagewww.fafsa.ed.gov

Free Application for Federal Student Aid, 2009-2010

FAFSA can’t file prior to 01/01/09 required by all schools Used to determine eligibility for

federal/state need based aid Student and one parent should apply for

a pin # now to sign the FAFSA electronically

www.pin.ed.gov

https://profileonline.collegeboard.com/

CSS/Financial Aid Profile

https://profileonline.collegeboard.com/ Not required by all schools $25 for the initial application and $16 for

each additional college Non-Custodial Parent’s Form = $25 Tool used to determine eligibility for

need-based institutional grants.

Helpful Tips When Completing the FAFSA & Profile

Print out the FAFSA on the Web worksheet Print out the Profile Pre-Application

Worksheet Have your 2008 federal tax return and W2

statements in front of you or prepare a draft 2008 federal tax return.

You can also use your 2007 federal tax return if income will be similar to 2008.

It is okay to estimate!

FAFSA Tips

Parents and students must provide their SSNs – if a parent does not have a SSN, enter zeros.

When reporting assets, report the value as of the date the FAFSA is completed minus the debt owed. Investment property Stocks, bonds, money market funds CD’s, mutual funds, stock options, trusts Coverdell savings accounts, college savings

plans Business/investment farm value

FAFSA Tips, con’t.

Assets not to report: Value of your home Retirement plans (pension funds, annuities,

noneducation IRAS, Keogh plans) Must also report as income:

Annual contributions to a retirement plan Housing allowance paid to members of the

military, clergy and others Child support

Print out the FAFSA on the Web Worksheet

Filling Out the FAFSA

Student Information on the FAFSA

Student Information on the FAFSA

Student Information on the FAFSA

FAFSA Dependency Questions

Parent Marital Status

What is the Definition of a Parent?

If your parents are divorced or separated, answer the questions about the parent you lived with more during the past 12 months.

If you did not live with one parent more than the other, give answers about the parent who provided more financial support during the past 12 months.

What is the Definition of a Parent?

If your parent has remarried, your must include information about the stepparent.

If your parent is widowed or single, answer the questions about that parent.

The following people are not your parents unless they have adopted you: grandparents, foster parents, legal guardians, older brothers or sisters, and uncles or aunts.

What if parent information is not available?

Student has no contact with the parent(s) and does not know where they are (and the student has not been adopted by someone else); or

Student has left home due to an abusive situation. Must gather third party documentation to verify

your living situation: attorney, court officer, social worker

Submit that third party documentation to the college that you will most likely attend.

Parent Tax Return Information

FAFSA Parent Information

FAFSA Parent Tax Return Information

FAFSA Parent Tax Return Information

Family Size and # in College

Parent Assets

Student Information

Similar to parent income and asset sections

What colleges should receive this data?

What colleges should receive this data?

Student’s Electronic Signature

Confirmation Page

The Application Status Check

FAFSA Follow-Up

FAFSA Corrections

Types of corrections Adding a school Deleting a school Changing estimated income to actual based on 2008

federal tax return and W2 information Parent SSN and name do not match Parent birthdate missing

If a correction to applicant data is needed, the correction may be made:

By the student at www.fafsa.ed.gov By the school

FAFSA Corrections on the Web

CSS Profile Tips

In addition to the assets reported on the FAFSA, you will be required to report: Value of your home, purchase price,

purchase date and current debt Value of your retirement accounts (but not

for all schools).

  

Tuition & Fees $40,000Room & Board 8,000Books & Supplies 1,000 Parent Contribution $ 2,250Miscellaneous 500 Student Contribution $ 1,750Transportation 500 Family Contribution $ 4,000Total $50,000 Need $46,000

 Financial Aid Award (Cost less Resources)

 Federal Pell Grant $ 2,500Federal Supplemental Educational Opp. Grant $ 2,500Connecticut Independent College Grant $ 5,000Connecticut Capitol Scholars Program $ 3,000Federal Academic Competitiveness Grant $ 750Federal Perkins Loan $ 1,000Federal Stafford Loan $ 3,500Federal Work Study $ 1,300College Grant $26,450

 Total Award $46,000

Sample Financial Aid Award – Full Need Met

College A B CCost 50,000 50,000 50,000

Family Contribution

10,000 6,500 7,000

Need 40,000 43,500 43,000

Grants 34,200 30,000 35,000

Loans 4,500 4,500 0

Work 1,300 1,500 2,000

Total Aid 40,000 36,000 37,000

Unmet Need 0 7,500 6,000

True cost to family

10,000 14,000 13,000

Comparison of Aid Awards

How Aid is Applied to the Bill

Tuition & Fees = $40,000 Room & Board = 8,000 Total Charges = $48,000

Less aid:

Grants $40,200 Loans $ 4,500Total Aid Applied to the Bill $44,700Balance Due $ 3,300Usually paid in two installments: $1,650 August 1 $1,650 January 1

Federal Work Study is not applied to the bill.

What if my family contribution seems unreasonable?

Compare aid awards from similar colleges. If the contribution is significantly different:

Ask how the contribution was determined Is there a contribution expected from the non-

custodial parent Were losses reported on the tax return added

back What is the minimum student contribution How were family members in college treated Home equity

Request procedures for an “Appeal” or “Review”

How do I pay the bill?

Prepare monthly income/expense flow Put surplus monthly income to work for you with

a payment plan: www.afford.com www.tuitionpay.com

Use savings but keep enough to cover surprises! Investigate home equity loan, or other private

parent loans. Factors to consider: age, job market, other children to educate, income/debt ratio, credit rating

Federal PLUS Loans

Borrowers are parents of dependent undergraduate students

Annual loan limit: cost of attendance minus other aid

Fixed interest rate – 8.5% Loan fees - up to 4% Repayment begins 60 days after the loan is fully

disbursed. Can defer payments (interest will accrue) while

student is enrolled at least half-time.

Aid Award in Subsequent Years

Loan amounts increase as the student advances to the next grade level

If parent income increases, the parent contribution will increase.

If student assets decrease, the student contribution will decrease

If the number of dependents enrolled in college changes, the parent contribution will change.

College institutional funding levels change from year to year

Questions to Ask

What forms must be submitted and by what date?

Does the school meet the student’s full demonstrated need?

What was the average loan balance for the last graduating class?

What happens to the aid offered if the student receives an outside scholarship?

How does an aid award change over 4 years?

Questions