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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