High School Counselor Workshop (PowerPoint) by wuzhenguang

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									Financial Aid 101- The Basics
Agenda
• Financial aid history & philosophy of
 oFree Application for Federal Student Aid
• Calculating financial aid
 oCost of attendance (COA)
 oExpected Family Contribution (EFC)
• Categories, types, and sources of
  financial aid
• Special circumstances
History of Financial Aid

U.S. Congress passes laws that promote
national prosperity:

  1. Economic
  2. Social
  3. National defense
Philosophy of Financial Aid

• Students and their families have the
  primary responsibility to pay for
  postsecondary education expenses

Note: even if the student has left the
household
Philosophy of Financial Aid

• Making a college education more
  attainable
• Providing a consistent and equitable
  evaluation
• Ensuring eligible students benefit from
  financial assistance
General Application Process

                              FAFSA via
                              Telephone




        IRS
       Data
       Match
FAFSA on the Web
Reasons to file electronically:
• Faster processing
• Built-in edits prevent costly errors
• Skip logic allows student and/or parent to avoid
  unnecessary questions
• Use Internal Revenue Service (IRS) data
  retrieval
FAFSA on the Web

Reasons to file electronically:
• Easier corrections & updates
• Comprehensive instructions and “help” for
  common questions
• Check status on-line
• Simplified renewal application
Frequent FAFSA Errors
• Social Security numbers
• Divorced/remarried parental information
• Income earned by parents/stepparents
• Untaxed income
• U.S. income taxes paid
• Household size
• Number of household members in college
• Real estate and investment net worth
Initial Student Eligibility

• High school diploma or equivalent
• U.S. citizen or eligible non-citizen
• Valid Social Security number
• Enroll in an eligible degree or
  certificate program
• Register with Selective Service (males only)
• Sign a statement of educational purpose
Maintaining Student Eligibility
• Not be in default or owe an
  overpayment on a grant
• Maintain Satisfactory
  Academic Progress (SAP)
• No drug convictions based
  on Department of Education
  standards
Calculating Financial Aid Eligibility
What is Financial Aid?

Funds provided to students to help pay for
postsecondary education expenses.
Financial aid includes
•   Grants
•   Scholarship
•   Work study
•   Loans
Cost of Attendance (COA)

Standard Costs               Optional Costs
Tuition and fees             Dependent care
Room and board               Study-abroad
Books and Supplies           Disability-related services
                             Employment expenses for co-op
Transportation
                             study
Miscellaneous personal
                             Student loan fees
expenses


  Note: Costs vary from institution to institution
Expected Family Contribution (EFC)
• EFC is the measure of a family’s financial
  strength

• EFC is used to determine the student and
  parent ability to contribute towards the student’s
  cost of education

• Need analysis is the consistent
  formula used in determining
  a family’s EFC
Expected Family Contribution:
The Counselor’s Role
Do
 • Encourage students at all income levels to
   apply
 • Refer students to the college’s Net Price
   Calculator*
Do not
 • Assess eligibility
 • Promise eligibility

             * only an estimate not a guarantee
Calculating Eligibility
For Need-Based Aid



   Cost of Attendance (COA)
  Expected Family Contribution (EFC)
  Eligibility for Need-Based Aid
Types of Financial Aid
Calculating Eligibility
Need-Based Aid—2012-2013 Federal Programs
Program           Award Amount                Notes
Pell Grant        Up to $5550                 President’s budget request
FSEOG (grant)     Between $100 and $4000      Funding at FY2011 levels
                                              Proposal: replace TEACH with
TEACH Grant       Up to $4000
                                              Presidential Teaching Fellows
Iraq &
                                              equal to Pell Grant – not to
Afghanistan       Up to $5550
                                              exceed the COA
Service Grant
Work Study        Determined by each school Funding at FY2011 levels
                  Up to $5500 (UG)/ $8000     Proposal: modify Perkins loans
Perkins Loan
                  (Grad)                      into unsubsidized Direct Loans
Subsidized Direct Between$3500- $5500         Elimination of subsidized loans
Loan              (based on UG grade level)   for Graduate students
Calculating Eligibility
Need-Based Aid-2012-2013 California Programs
California Programs                 Award Amount
Cal Grant A                         Up to $12,192
Cal Grant B                         $1551 (1st yr) ; $13743
Cal Grant C                         Up to $3168 (non CCC) $576 (at CCC)
Chafee Grant                        Up to $5000
UC Student Aid                      $100 or more
State University Grant              Covers full system-wide fees
Child Development Grant             $1000 (CCC) or $2000 (4 yr)
Law Enforcement & Personnel
                                    Up to $11259 (for up to four years)
Dependents Grant
                                    Up to $1500 (contingent on federal
Robert C. Byrd Scholarship
                                    funding)
CCC Board of Governors Fee Waiver   Covers all Enrollment Fees
Calculating Eligibility
Non Need-Based Aid
Students who do not demonstrate eligibility
for need-based aid may still quality for:

• Federal unsubsidized Direct loan

• Federal Direct PLUS loan

• Private sector scholarships

• Institutional scholarships and employment
  programs
Special Circumstances
Special Circumstances

• If students and families have unusual
  circumstances, advise them to contact the
  financial aid office at the college they plan
  to attend; the office will advise them on
  how to proceed.
Special Circumstances

• Cannot be reported on the FAFSA

• Contact the financial aid office for
  procedures

• School’s decision is final and cannot be
  appealed to Department of Education
Special Circumstances
Examples
• Change in employment status
 o Dislocated workers/Loss of employment
• Change in parent marital status
• Medical expenses not covered by
  insurance
 o Elder care expenses
• Unusual dependent care expenses
Special Circumstance
Examples:
What if…student related changes
• Student cannot obtain parent information
• Homeless individuals
Professional Judgment and
Dependency Status
The Financial Aid Office has authority to
make a dependent student independent if
unusual circumstances exist:
• An abusive family environment
• Abandonment by parents
• Inability to locate parents
Professional Judgment and
Dependency Status
Do not qualify as “unusual circumstances”
• Parents refuse contribution towards education

• Parents unwilling to provide information on the
  application or for verification

• Parents not claiming the students as a
  dependent for income tax purposes

• Student demonstrating total self-sufficiency
Remember…


If your student and family have unusual
circumstances, advise them to contact the
financial aid office at the college they plan
to attend; the office will advise them of
how to proceed.
Questions?

								
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