Jeff Pietrangeli Associate Director of Financial Aid

University of New Haven

• File the Free Application for Federal Student Aid (FAFSA)

• FAFSA is FREE

• FAFSA determines eligibility for: • Federal grants and loans

• State grants

Institutions use the FAFSA to determine eligibility for their need-based scholarships

Schools may require additional forms to determine eligibility for financial aid CSS Profile

Institutional Application

University of New Haven uses the CSS Profile to provide earlier award information UNH School Code is 3663

FAFSA on the Web ◦ www.fafsa.gov

File 2015-2016 FAFSA if entering college Fall 2015 (Forms for 2 years on website – use correct year)

◦ Have to complete FAFSA EACH YEAR ◦ Available January 1

Two ways to sign ◦ PIN – Sign Electronically www.pin.ed.gov

Real Time (“Display Now”)

Both Student and Parent need a PIN

◦ Paper Signature Page

Sites closest to West Haven:

◦ Gateway Community College, New Haven

◦ Housatonic Community College, Bridgeport

http://www.collegegoalsundayct.org/

Can add up to 10 schools on the web application

List the school names & codes

◦ University of New Haven school Code = 001397

Should complete and submit the FAFSA when you are applying for Admissions providing you are applying for Admissions after January 1.

Have to be offered Admissions before Financial Aid

is determined

Be Aware of Priority Filing Dates ◦ Submit FAFSA by School & State Priority Filing

Date – CT has had filing date as early as Feb 15 ◦ School & State funding is limited so file ON TIME ◦ UNH Priority Filing Date is March 1, 2015 for the

2015-2016 year

Can enter estimated income information to meet priority date, then make corrections after you file tax returns

IRS Data Retrieval Tool ◦ Populates your income information onto the FAFSA, directly

from the Internal Revenue Service (IRS)

Complete & file your tax return ◦ File Electronically – Wait 2 weeks to correct FAFSA

◦ File Paper – Wait approximately 8 weeks to correct

Students selected for Verification ◦ If don’t use IRS Data Retrieval, Tax Return Transcript is Required

◦ Verification form & Other documentation Required

Note: Schools may have their own Verification process where they may request tax return transcripts and other documentation beyond the federal requirements

Parent and Student Information on FAFSA Student’s Application

If 2 students in family, each complete an application

Parent signs each

Divorced or Separated – Who completes? ◦ Parent with whom student lived with most during

the past 12 months

If lived with equally, the parent who provided more financial support

If Parent Remarried ◦ Step-parent information must also be included

If a dependent student’s parents are living together in the same household, regardless of the parents’ marital status or gender, income and other information about both legal parents must be included on the FAFSA

New parent marital status option on the FAFSA: ◦ “Unmarried and both parents living together”

◦ Rather than “mother” and “father”, FAFSA indicates “Parent 1” and “Parent 2”

Legal Guardians don’t complete FAFSA with the student ◦ Student completes FAFSA on own

◦ Must provide court documentation to school

◦ If no court documentation, parent must complete FAFSA with student

Student Aid Report (SAR) ◦ Indicates your FAFSA has been processed

◦ Indicates how family answered every question on the FAFSA

Review your SAR ◦ Indicates the next steps

◦ If there are issues that need to be resolved

◦ Data Base matches – Social Security Number, Citizenship, Selective Service

Will indicate if a student is selected for Verification

Can use to add schools or make corrections

• Results of the FAFSA is the Expected Family Contribution (EFC) • Amount you as a family can contribute toward the

student’s education

• Schools use the EFC to determine what types of financial aid and how much they can offer to a student

Scholarships Free money – don’t have to repay

Grants Free money – don’t have to repay

Loans Have to repay

Student Employment Have to work to earn the money

Federal Money from the federal government

State Money from the State in which you live

Institutional Money from the College/University (merit, need-

based, athletic)

Private Money from private agencies, organizations, civic

groups, high schools, churches, etc.

School determines the Cost of Attendance (budget)

• different at each school

Cost of Attendance includes not only

tuition, fees, room, meals (Direct costs) – ALSO allowances for books, supplies, personal expense, travel expense, misc expense

School takes Cost of Attendance and subtracts your EFC (results of your FAFSA) to determine a students “financial need”

Cost of Attendance

- Expected Family Contribution (EFC)

___________________________________________

Financial Need

• If the EFC is less than the Cost of Attendance, the student may be eligible for subsidized financial aid such as grants, scholarships, subsidized student loans and the parent PLUS loan

If the EFC is greater than the Cost of Attendance, the student may be eligible for unsubsidized financial aid such as unsubsidized student loans and the parent PLUS loan

Merit scholarships are based on a student’s academic performance and can be awarded regardless of the EFC

• The school communicates with the student via a Financial Aid Award

• Awards may be electronic or paper • If electronic, student would receive notice or

email to view their award information on line

• Awards offered are listed on the Award Letter – Awards make up a “Financial Aid Package”

Families should determine Direct costs of the school

• Tuition, Fees, Room, Meals and any other expenses charged on the bill

• May also want to factor in an amount for books – An average amount per semester for student enrolled full-time is $500 however the sciences, engineering and some other classes may be more expensive.

Families should understand each award listed • Is the award a LOAN? = Money you will have to

repay

• Is the award a scholarship or grant? = Money you won’t have to repay

• Are the scholarships offered by the school renewable and if yes, what are the requirements?

Families should subtract the awards you want to accept from the amount you will be billed by the school to determine how much, if anything, you will need to pay for the student to attend that school ◦ Some options for paying that balance:

Federal Parent Loan – Loan borrowed by the parent

Private Loan – Loan borrowed by the student with a credit worthy co-signer

Tuition Payment Plan – Usually a 10 month plan to pay the balance due

FAFSA is based on “prior year income” ◦ Use 2014 income information for 2015-2016 FAFSA

Notify the Financial Aid Office of financial changes for 2015 if decreased from 2014

◦ Loss of Job – reduction in income

◦ Divorce or Separation

“Charge into the Future” program

Students graduating from West Haven High School receive a UNH West Haven Initiative grant equal to 50% of the tuition

Students who are eligible for UNH merit awards will have an additional Academic Scholarship included on their award

Depending on the results of the FAFSA, you may be eligible to receive more than half tuition

For the 2014-2015 year:

Tuition: $33,330

Fees: $1,300 ____________________

Total: $34,630

Minus: $16,665 (half tuition) ___________________

$17,965/year or $8,982 per term

Room & Meals are an additional $14,310 for one year if living on campus

Living on campus, could increase costs to approximately $16,137per term ($7,155 extra per term)

The Financial Aid Office will review your FAFSA results to determine if you are eligible for the federal Pell grant ◦ If eligible Pell grants range from $582 - $5,645 per

year

Federal student loans ◦ Maximum for first year students is $5,500 per year

State of CT financial aid: CT Governor’s Scholarship – Need-based & Merit Award ◦ File your FAFSA by February 15

◦ Complete Governor’s Scholarship application in High School Guidance Office by February 15 CT resident who is a high school senior or graduate with a

high school junior year class rank of 20% or better and/or SAT scores of at least 1800 or ACT score of at least 27. Recipient must attend a CT public or non-profit private college.

◦ Up to $4,500 per year

State of CT financial aid – CT Governor’s Scholarship – Need-based Award ◦ Submit your FAFSA by the school’s priority filing

date. UNH priority date is March 1

◦ The Financial Aid Office will review your eligibility for the Governor’s Scholarship need-based award

Up to $3,000 per year

Note: You cannot receive both Governor’s Scholarship awards

Federal Direct Parent PLUS Loan ◦ Borrower is the parent

Private Alternative Loans ◦ Borrower is the student but will likely require a

credit-worthy co-signer to be approved

Tuition Payment Plan ◦ Monthly payments – usually over 10 months

• The PLUS is a Federal Loan for parents to borrow, to assist with paying educational costs • Interest rate is a fixed rate currently at 7.21% • Credit based loan – Government reviews for any negative

credit history • Repayment begins 30-60 days after loan is fully

disbursed. Parents normally borrow for the full year therefore the loan will not be fully disbursed until spring semester loan disburses, so repayment begins in February or March (option to defer payment until after student is no longer enrolled full-time)

• Repayment period up to 10 years (depending on loan amount borrowed)

• No penalty for early repayment of loan

• Parent may borrow up to Cost of Attendance minus other financial aid the student is receiving (loans are considered financial aid)

• Borrowing up to the Cost of Attendance will allow the parent to receive a refund (Remember: Cost of Attendance is more than the actual bill). The refund will act as a reimbursement for educational expenses the parent may have paid to get the student to school and settled in their dorm room

• Parent has option of how much to borrow. Parent may want to borrow only what they need to pay the bill

• Some parents may not meet the credit criteria for the parent loan therefore the loan will be denied

• Options for Parents: • Appeal the decision and request another review of

Credit History if something has changed (if cleared up incorrect/negative issue on credit report)

• Obtain an Endorser (someone to co-sign the loan)

• Allow the loan to be denied and student borrow LIMITED AMOUNT of additional federal student loan

• When a parent loan is denied, the government allows the student to borrow additional Unsubsidized Student Loan, however the amount is limited (up to $4,000/year for Freshman and Sophomores, and up to $5,000/year for Juniors and Seniors)

• Student must accept the additional Unsubsidized loan award, before a school can process the additional amount

• Parent Loans and Student Loans have Fees • Actual disbursement of loan that is deducted from the

student’s bill is lower than amount borrowed (by a small percent)

• Student loans approximately 1.073% in fees

• Parent loans approximately 4.288% in fees

• Example:

• Parent Loan for $5,000 with 4.288% in fees will disburse to the school in the amount of $4,789 ($2,394 per semester)

• Student Loan for $3,500 with 1.073% in fees will disburse to the school in the amount of $3,463 ($1,731 per semester)

The Subsidized Loan will be offered to students who demonstrate “financial need” based on the results of the FAFSA (EFC) and other financial aid the student is receiving

• Of the $5,500 maximum student loan, up to $3,500 is subsidized for a first year student depending on financial need

• July 1, 2014 Fixed interest rate of 4.66% for undergraduates

• Government pays interest on Subsidized loans, & principal is deferred while student is enrolled at least half-time

Unsubsidized Student Loan • Fixed interest rate is currently 4.66% for

undergraduates

• Principal is deferred while student is enrolled at least half-time

• Interest accrues while student is enrolled. If not paid, it will capitalize causing the balance of the loan to become larger

• Interest is charged quarterly (every three months)

• Example: $2,000 loan will accrue approximately $100 of interest for a year therefore loan balance will increase to $2,100 in one year

• Sometimes students will need additional funding beyond the financial aid that is offered, therefore there are Private Alternative loans available through lenders

• Be sure to review terms & conditions of Private Alternative Loans. May have variable interest rate, require student to make monthly payments immediately, etc.

• These loans are not as lenient in repayment as federal loans. They do not have repayment options like federal loans.

• Students may borrow up to the Cost of Attendance minus any other financial aid they are receiving (loans are considered financial aid)

• The student is the borrower of the loan

• Loans are based on credit-worthiness – will likely look at income to debt ratio

• Co-signer is usually required

• These loans may have VARIABLE interest rates • Some now offering Fixed interest rates

• May REQUIRE interest to be paid immediately

• Could have fees

• Cannot consolidate with federal loans

Student applies with the lender and if loan is approved, the school will have to process the loan

Check for loan programs within the state ◦ Connecticut Higher Education Supplemental Loan Authority

◦ www.chesla.org

◦ Currently has 6.75% Fixed Annual Rate

◦ Must make interest payments

Check for loan programs with your credit union for competitive rates/terms

Some lenders/agencies offer loans for parents

• Most schools offer a tuition payment plan

• Many contract with outside vendors • May offer a 10 Month interest free plan to pay off

the balance due

• Payments begin in June and end in March

• Normally there is a fee to join (about $70 per year)

• Monthly payments are withdrawn from your bank account for 10 months

• Because these plans allow a shorter time to pay the balance, you usually have to make a higher monthly payment than you would in repaying a parent loan

• Make sure you can afford the monthly payments for the payment plan before signing up

Merit Scholarships

◦ Usually offered through Admissions Office rather

than through Financial Aid Office

Be sure to meet Admission Application dates & submit appropriate paperwork to be considered

• Make sure student completes ALL forms • Some Financial Aid offices have a separate form for

students to complete for scholarships • Some departments within the college or university

may have their own scholarships to offer and their own process beyond the Financial Aid Office • A student should contact the department in which they

are majoring or review their website to determine scholarship opportunities and the process

• Some departments may offer scholarships to Freshmen, others may not consider a student for scholarships until the student “declares his or her major”

• Community Service Organizations, Civic Groups & Churches/Religious Organizations

• Company where your Parent is Employed

• Search on your Own on the Internet ◦ Watch for Scholarship Scams Should not have to pay money to get FREE money Don’t give bank account or credit card information

• www.zinch.com • www.fastweb.com • www.collegeboard.com/paying • www.freschinfo.com • www.eCampusTours.com • www.collegeanswer.com • www.finaid.org

• Finaid.org has scholarship listings categorized by unusual scholarships, average student scholarships, community service scholarships, prestigious scholarships

Watch for scholarship scams! ◦ You should not have to pay money to get FREE money

6 things to look for in detecting a scholarship scam: ◦ “a scholarship guarantee” – No service can guarantee it will get you money.

◦ “the service will do all the work” – No service can provide all of the personal information required, fill out essays, or supply the references a scholarship may require.

◦ “a scholarship costs money” – Though some legitimate scholarships charge fees, be wary of charges. Applying for scholarships should NOT cost you money.

◦ “you can only find this information here” – Scholarships, grants and awards for school are available in directories and all over the web. No one organization has a monopoly on the information

◦ “being a finalist in a contest you never entered or randomly being selected by a national foundation to receive an award” – Most organizations only contact you after you have made an inquiry

◦ “a service needs your credit card or checking account information” – NEVER!

• U.S. Department of Education, Student Aid on the Web www.studentaid.ed.gov

• Select “Types of Aid”

• Select “Learn More” in the “Scholarship Search” box

• State of Connecticut Dept. of Higher Education • www.ctdhe.org and select “Financial Aid” at top of screen

on right

• Go to www.newhaven.edu

• Select “Quick Links”

• Select “Net Price Calculator” • Provides an ESTIMATE of the financial aid you may

receive – This is NOT an award

• Some funds are limited – may see in NPC results but not on your Financial Aid Award

• Try to provide accurate estimated information • Results will not be an accurate estimate if incorrect

information is provided

Questions?