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Coaching Families Through Funancial Aid

Meghan Cooley Director of Recruitment Communication | Augustana College

meghancooley@augustana.eduCourtney Wallace

Director of Admissison – Chicago Region | Augustana College

courtneywallace@augustana.edu

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PART I:

What FAMILIES Need to Know

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1. Types of aid & how to apply 2. Frame expectations3. Establish a timeline

What Families Need to Know

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*Note: Studentaid.gov/glossary

Gift Aid Merit-based Talent-based Need-based

Self-Help Loans Student Employment

1. Types of Aid

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Types

Academic Talent Service/Involvement Athletic

How to apply Application for admission Separate application Audition Interview Essay

Merit & Talent Aid

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“Need” is defined by each school’s analysis of:

FAFSA – FREE Application for Federal Student Aid Institutional Application Combination of both

“Need” is relative to Cost of Attendance

Need-based Aid

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Loans Student Employment

Self-Help

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Federal Loan Options

Stafford (6.8% fixed) Limit based on year in school ($5,500, $6,500, $7,500 )

Perkins (5% fixed) Not every college participates Limited funding

PLUS (7.9% fixed) Parent Loan Easy application (must not have adverse credit history)

Private Student Loans Variable & fixed interest rates 85% of dependent undergraduates need a co-signer

Other: home equity, other collateral loans, etc

Loan Options

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Myth of Student Loan Crisis

Even most of the students who do go to Harvard don’t end up paying full price. Taking grants and scholarships into account, these students owed $16,459 for the 2009-10 school year; nationwide, the average four-year student who received aid owed $17,360.

One year at Harvard costs $57,950. But most students don’t go to Harvard. The average yearly tab for a first-time, full-time student living on campus, it turns out, is $27,453 at four-year schools and $15,267 at two-year schools.

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Horror stories of students drowning in $100,000+ debt might discourage young people from enrolling in college, but they are

as rare as they are terrifying.

43%

29%

16%

6%4%1%

INDEBTED STUDENTS, BY AMOUNT OWED

$1-$10K$10K-$25K$25K-$50K$505-$75K$75K-$150K$150K+

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Different names… pretty much the same thing

Federal Work-Study Student Employment Campus Employment

Paid for hours worked ($ goes directly to the student) Can be used for:

Tuition Books Pizza, etc.

Student Employment

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How Families Pay for College . . .

www1.salliemae.com/about/news_info/research/how_america_pays_2010/

2. Frame Expectations

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Dispel hope for “magical” full-tuition scholarship

Hope is not a plan Disregard averages

“Half the population is below average.” Discuss your financial situation as a family

What are reasonable options for our family? Determine a timeline to successfully navigate

financial aid process

How will you pay?

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How will we pay for college? Have we saved for college? How much? Do we have any special financial circumstances? Do we need to complete the financial aid and scholarship

paperwork? Do we plan to take out loans? Student or parents or both? Do we understand the difference between a college “sticker

price” and the “net cost”? What opportunities are worth paying more for? Is our student planning to work (during school, summer, etc)?

Questions to discuss as a family

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Determine a timeline as early as possible Help yourself – set the dates

Mark up family calendars What motivates your family? Include savings, scholarship and financial

aid deadlines

3. Timeline

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Timeline

What When

Preliminary Planning Freshman, Sophomore, Junior

Deadlines & Documents Summer before Senior Year

Application for Admission Fall of Senior Year

Institutional Application(s) Varies: November-March

FAFSA January/February of Senior Year

“Outside Scholarships” Varies: November-April

See timeline in How families pay for college

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PART II:

Plan of Action:the Financial Aid Process

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Annual & Monthly Sources

Parent Savings Income

Student Savings Summer Earnings Employment during the academic year

Outside assistance: scholarships, grants, etc.

What’s Your Budget?

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Debt-Free vs. School-of-Choice The Bottom Line vs. “Fit” Earning Potential vs. Loans

What’s Important to the Student?

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Federal

FAFSA = eligibility for federal student aid Most institutions use FAFSA in determining need-based aid

Institutional Different questions, different rules, different game

Federal v. Institutional

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The College Board’s CSS/Financial Aid PROFILE - online application that collects

information used by almost 400 colleges and scholarship programs to award financial aid from sources outside of the federal government. After you fill out the application, the College Board sends it to the colleges and scholarship programs you have chosen.

Not all colleges and scholarship programs require the PROFILE. DEADLINE: register at least two weeks before the earliest college or scholarship

priority filing date you need to meet. COST: Sending your PROFILE report to one college or scholarship program costs

$25. Additional reports are $16 each. Students who are from low-income families with limited assets will automatically receive fee waivers.

Website: www.profileonline.collegeboard.org Big future.com: Search: - How to Complete the CSS/Financial Aid PROFILE

CSS profile (College Scholarship Service)

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Institutional

Know your stats: test scores, grades, rank in class

Know your talents See individual websites

National, Regional Example: Golden Apple for Education majors

Scholarships

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Local

Employers Businesses Foundations Church and civic organizations

Free Scholarship Search Sites FastWeb's Free Scholarship Search: fastweb.com College Zone Scholarship search: collegeillinois.com Scholarships.com College Board: collegeboard.org or bigfuture.org

Scholarships

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Dr. Seuss's "Oh the Places You'll Go" Scholarship. Based on the best-selling book by Dr.

Seuss, this scholarship is awarded to high school seniors this year for their essay submissions on a specific prompt. Find the details athttp://origin-www.seussville.com/ohtheplaces/.

Stuck at Prom Scholarship Contest. A duct-tape prom dress and tux could win you a $3,000 scholarship this spring. Check out last year's entries at www.stuckatprom.com.

American Fire Sprinkler Association Scholarship Program. Fire safety is important, both at home and away at college. For completing a multiple choice test about fire safety, eligible students are entered in a pool for 1 of 10 $2,000 scholarships. Get the facts at www.afsascholarship.org.

Major Memorial Duck Calling Contest. Named for Chick and Sophie Major, this scholarship is awarded to a high school senior who can bring home the bacon, or rather, duck meat. Give it a shot at http://stuttgartarkansas.org.

Evan Scholars Foundation Scholarship. Calling all caddies! This scholarship is awarded annually by the Western Golf Association to students who have experience as caddies, a strong academic record, and most of all, a great record! FORE more details visit www.evansscholarsfoundation.com.

Scholarships for anything

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Klingon Language Institute Award. This scholarship is not limited to Trekkys - rather, it is

available to students recognizing and studying the importance of language. Find details at www.kli.org/scholarship.

The National Candy Technologists Scholarship. If you have a sweet tooth, this scholarship is for you. Awarded annually, the AACT selects a student with a demonstrated interest in confectionary technology. Explore more at http://www.aactcandy.org/aactscholarship.asp.

Tall Clubs International Scholarship. That's right. Not only is it easier for you to reach things on the top shelf and dunk a basketball, but here's a scholarship for you if you are a 5'10" female or 6'2" male. Check it out athttp://www.tall.org/scholarships.cfm.

Mycological Society of America Scholarship. Fungi? Fun girl? For those students interested in spores, mushrooms, or mold, the MSA awards scholarship in over 15 categories at their annual meeting. Learn more athttp://msafungi.org/msa-awards.

GoodFit T-shirt photo contest. Augustana College (that's us) awards scholarships to high school seniors for submitting a photo of themselves wearing an Augie tee. Find the categories and submit your own atwww.augustana.edu/goodfit.

Scholarships continued

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FREE Application for Federal Student Aid A standard form that collects demographic and financial

information about the student and family FAFSA = eligibility for federal student aid Most institutions use this in determining need-based aid May be filed electronically or using paper form (available in

English & Spanish) **File electronically: Option to use Internal Revenue Service (IRS) data retrieval

You must reapply every year

FAFSA

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Information reported on the FAFSA is confidential

and is used ONLY to determine financial aid eligibility May be filed at any time during an academic year, but

no earlier than the January 1st prior to the academic year for which the student requests aid *Highly recommend asap!

You may be asked to submit documentation to the financial aid office for verification purposes

Keep a copy of everything you submit

FAFSA

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List up to 10 colleges of your choice List housing plans/preferences for your

college choices Parent income: based on total income

of household student lives with most Signature

Student One parent (dependent students)

FAFSA

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Cannot report on FAFSA Send written explanation to financial aid office at each

college (colleges will most likely request additional documentation)

Examples Change in employment status Medical expenses not covered by insurance Change in parent marital status Student cannot obtain parent information Parent in college

Special Circumstances

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To Families: Student Aid Report (SAR) link sent to student’s email if

provided; by mail if no email provided Student with PIN may view SAR on-line at www.fafsa.gov*review data, update if used estimated figuresTo Schools indicated: Institutional Student Information Record (ISIR) sent to

colleges listed on FAFSA approximately 10 to 14 days after FAFSA submitted

*schools may ask for additional info

Results of FAFSA

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WHAT IT’S NOT…

A dollar amount expected from income and/or assets An estimate of extra cash available

WHAT IT IS… A financial index used to determine eligibility for

federal student aid (i.e. Pell Grant, Subsidized Stafford Loan)

A measure of a family’s capacity over time to absorb educational costs

An important index for families to know

What is an EFC?

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The actual application… the FAFSA!

Complete the FAFSA as a junior, sophomore, or freshman

Gives you an idea of what to expect when you complete the FAFSA after January 1 of your senior year.

Other “estimators”

How to Determine Your EFC

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Net Price Calculator

Federally mandated Estimated Cost of Attendance for that individual at that

specific institution Based on income information and/or academic info

Estimate at X college

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Award notification packets may include: Award letter detailing applicable scholarships, grants,

work, and federal student loans. Direct and Indirect cost information Net Cost calculations Cost to attend the institution after scholarships, grants,

and federal student loans applied to charges. Some schools may use direct and indirect costs in

calculating net cost. Important information regarding loan applications.

Award Notification

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PART III:

Know what questions to ask

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Families need to

be comfortable talking finances ask direct questions

See questions in How families pay for college be proactive discuss scholarships, financial aid,

etc. EARLY in their college search

Talking to colleges

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Knowledge is power Family discussion Clear expectations Plan of action Deadlines Celebrate milestones

Final Thoughts

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Best Definitions: studentaid.gov/glossary How Families Pay Graph:

www1.salliemae.com/about/news_info/research/how_america_pays_2010/ The Myth of the Student-Loan Crisis, The Atlantic, March 2013.

http://www.theatlantic.com/magazine/archive/2013/03/myth-student-loan-crisis/309231/

How families pay for college: www.collegequestions.org Federal Student Aid Program: www.studentaid.ed.gov U.S. Department of Education – FAFSA: www.fafsa.gov Apply for your federal PIN #: www.pin.ed.gov Illinois Student Assistance Commission: www.colllegeillinois.com College Board: collegeboard.org and bigfuture.org

References

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QUESTIONS and shameless Augustana plug

Nearly 90 – Majors & related areas of study. Largest majors: Biology/Pre-Med, Business, Psychology, Education, English, Accounting, Spanish, CSD, Communication, Political Science 2500 – Students 400,000 – Population of Quad Cities94% – Graduating seniors only in college four years12:1 – Student to teacher ratioMore than 150 – student groups, clubs and activities. Over 50% involved in sports; 25% join a musical ensemble; 85% of students volunteer, More than 25 – service, religious and social awareness groups95% – graduates employed or pursuing an advanced degree within a year of graduation87% of those pursing advanced degrees were accepted to their first or second choice of grad schoolMore than 55% – study abroad; In top 40 – number of students who study abroad 99% – success rate for matching first-year roommates