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Financial Aid 2001-2002 - Jamesville-DeWitt Central School District

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Financial Aid 2001-2002 - Jamesville-DeWitt Central School District Powered By Docstoc
					       Financial Aid 2013 - 14

                Tom DaRin
Vice President for Enrollment Management
             Nazareth College
    Two Forms of Financial Aid
n   Need Based Aid : Demonstrated need must be
    established first. Sources – federal, state, and college.
    Need based aid assists in providing access to higher
    education.
n   Non Need/Merit (aka Strategic) Based Aid          : Merit
    means different things at different places (academics,
    athletics, visual and performing arts, geography are
    some examples). Sources – federal (1), state, and
    college. Colleges use it to build and shape the
    entering class.
      Demonstrated Need Formula

Cost of Attendance (tuition, fees, room/board, books, travel,
                         personal)
                           minus
          Expected Family Contribution (EFC)*
                           equals
                   Demonstrated Need
   (*the family is the expected first source of funding)
   Factors to determine the Expected
      Family Contribution (EFC)
In ranked order of importance:
n Determine student status: dependent or independent
n Parent(s) income in the prior tax year (2012). Divorce: use custodial parent
    1040 (include step parent income if remarried)
n Number of family members in the household pursuing a college degree
    (exclude parents)
n Family size
n Student assets (20% of the total)
n Student income (less taxes and FICA) above $6,000 (50% above $6,000)
n Parents assets (4 - 6% on average of the total).


*The Expected Family Contribution is an amount that a family could reasonably
   finance for the student in that academic year. It determines ability to pay, not
   willingness to pay.
                        Assets
n   Include: savings and checking accounts, bonds
    (including current value of savings bonds), 529 Savings
    Plans, Uniform Gift to Minors, trusts, investments such
    as second/vacation home, land, business value
n   Do not include (for federal methodology): home
    equity (primary residence), or the total value of 401K,
    IRA, or employer sponsored pension programs. Note:
    the FAFSA will ask you to include any annual (2012)
    contribution to a retirement account or pension
                 Financial Aid Forms
FAFSA(Free Application for Federal Student Aid)
n   Required at every college that awards Federal Title IV
    student aid.
n   File after January 1, but before published college
    deadlines.
n   Must be filed each year the student is in college.
n   Up to 10 colleges may be listed at one time
n   It takes 2 days (electronically) before colleges receive
    data from the federal processor
    n   you will receive a SAR (Student Aid Report) from the
        processor. Check it carefully for errors or omissions. The
        SAR is generated within 24 hours after submitting the
        FAFSA and sent to you via secure email.
              Financial Aid Forms
FAFSA(Free Application for Federal Student Aid)
                         continued
n   FAFSA must be filed electronically at www.fafsa.gov.
    No fee is charged.
n   Electronic filers must submit a PIN, in lieu of a
    signature, for both the parent and student
    (www.pin.ed.gov). Parent and student may apply for
    the PIN at any time. Save your PIN. Your PIN is also
    used to sign your federal loans.
n   Note: If you are eligible to file a 1040 A or 1040 EZ
    tax form, your EFC is calculated using a simpler federal
    methodology. For example, if you file the 1040 A or
    EZ form, and your AGI is <$32,000, your EFC = 0.
    That would qualify you for a maximum Pell Grant.
    Supplemental Financial Aid Forms
      College Scholarship Service (CSS) Profile
n   Used by certain colleges to collect information early and/or
    information not provided on FAFSA (may include home
    equity, other assets, additional business/farm, and non-
    custodial parent)
n   Profile information is generally used to award institutional
    (college) aid, and in the case of Early Decision filers an
    estimate of federal and state aid
n   Profile is not a substitute for FAFSA
n   A fee is required for processing ($25 initial registration
    including first college/$16 each additional college)
n   Contact CSS directly to process a Profile form
    (profileonline.collegeboard.org)
n   Only send Profile to those colleges that require it
n   Estimate carefully if you complete it before tax information
    is available
    Supplemental Financial Aid Forms
TAP (New York Tuition Assistance Program)
n   Grant assistance available to New York residents,
    who graduated from a NY high school, and attend a
    college in NY (2 year or 4 year, public or private).
n   FAFSA filers, who are NYS residents, will have a
    screen appear that asks questions regarding TAP.
    That information is sent to HESC in Albany. If you
    miss completing those questions, you must apply
    directly online at www.hesc.com.
n   Awards are estimated using the first NYS college
    listed on your FAFSA. If you choose another NYS
    college, you or the college financial aid office can
    change the college name that’s listed.
n   Based on NYS taxable income (not Federal AGI) of
    $80,000 or less.
  Supplemental Financial Aid Forms
 TAP (New York Tuition Assistance Program)
                   continued
n Minimum Award $500 (NYS taxable income
  between $46 – 80K)
n Maximum Award $5000 (private college) /
  90% SUNY tuition (state supported colleges)
n Renewable for 8 full time semesters. Funding
  contingent upon state budget approval. (10
  semesters for those enrolled in NYS HEOP
  or EOP programs).
    Supplemental Financial Aid Forms
        Institutional (forms used by individual
                  colleges/universities)
n   Used to collect information not found on the
    FAFSA or CSS Profile
n   Information received is used to award institutional
    (college) aid. It may be used as the application for
    merit aid.
n   The institutional form is not used to determine
    federal and state eligibility
n   Submit the form by the required due date
n   No fee to file
     When will I hear from colleges?
n   No financial aid may be awarded until a student has
    been accepted for admission. Are you aware of the
    admission notification policy/policies of the college(s)
    you applied to? Rolling, Early Decision, Early Action,
    Regular Decision?
n   Financial aid award letters should be sent out within 1 –
    2 weeks after acceptance, if the FAFSA is on file.
    Depending on admission notification dates, some
    colleges include it in the acceptance packet.
       What can delay the process?
n   Inconsistent or inaccurate information (ex.
    incorrect Social Security number). Colleges may
    ask for tax forms to verify what you have
    reported.
n   Not answering all questions that pertain to you
    and your situation.
n   Not filing the required forms and/or not filing
    them on time.
n   Not properly signing the FAFSA via your PIN.
     Important Tips to Remember
n   Students with a May 1 reply date for accepting an
    offer of admission should have all forms submitted
    no later than March 1(Jan 1 – Feb 15 preferred)
n   Financial Aid offers may go out on a rolling basis
    (first in, first out) depending upon admission
    notification dates. Others may place the financial
    aid award in with the acceptance letter (if admission
    notification is later than 3/15 and FAFSA filed by
    2/15)
n   File all the required forms by the earliest deadline
    published. Do not wait to hear from Admissions
    before filing for financial aid. If need be, estimate
    taxes and submit forms. Verification comes later.
        Sources of Financial Aid
      Federal (need and merit based)
n   Pell Grant: $5550 maximum award per year (’12-’13). Based on
    high demonstrated need. Minimum award $555. (’13-’14 amount
    to be determined)

n   TEACH Grants: $4000 per year (x4 years UG/x2 Graduate).
    Must teach in a federally designated high need school district in a
    high need area (math, science, special ed, foreign languages) for a
    minimum of 4 years. Separate application must be filed at
    teachgrant.ed.gov. Merit aid – based on high SAT/ACT scores
    and must maintain a 3.25 gpa.
           Sources of Financial Aid
           Federal (all need based)
n   Campus Based Aid: based on the level of
    demonstrated need and the amount available at
    each college.
     *Supplemental Education Opportunity Grant
    (SEOG)
     *Perkins Loan (5% interest). Repayment
    begins 9 months after graduation.
     *Federal Work Study (rate of pay is typically
    minimum wage)
         Sources of Financial Aid
          Federal (all need based)
n   Direct Loan (Subsidized or Unsubsidized)
       n $3500    Freshman / $4500 Sophomore / $5500 Junior &
          (Annual Limits)                            Senior
        n An additional $2,000 may be borrowed per year beyond
          these annual limits; unsubsidized only
    n Subsidized Direct Loan: loan amount is used to meet
      demonstrated need. Repayment begins 6 months after
      graduation. Interest rate set by federal government. No
      interest is accruing while the student is in school and during the
      6 month grace period. All 2013 - 14 loans at 6.8% for those in
      repayment.
         Sources of Financial Aid
          Federal (all need based)

n   Unsubsidized Direct Loan: Student has no demonstrated
    need or other forms of aid are meeting need. Repayment
    on interest portion of the loan while in college (the
    interest can be paid or capitalized). Repayment on
    principal begins 6 months after graduation. Interest rate
    at 6.8%. Interest accrues while in school and grace
    period.
n   Direct Loans are student loans. The student will repay.
    A combination of subsidized/unsubsidized totaling
    $31,000 would be the aggregate max to borrow. 10 years
    to repay.
      Sources of Financial Aid
    State (need and merit based)

New York State Scholarships for Academic
Excellence: Merit Based
Each high school gets one $1500 award and school size determines
the number of $500 awards.
TAP: Need Based (already noted)
Math and Science Teaching Incentive Scholarship:
Merit Based
Apply beginning spring of freshmen year. $5,295 (2012-13)
retroactive for the year. Teaching service obligation for the recipient.
You must reapply each year and academic performance determines if
renewed.
           Sources of Financial Aid
        Institutional (need and merit based)

 Non Need/Merit (Strategic) Based Scholarships:
n Awarded without regard to demonstrated need.
    n   Based on Academic Ability
    n   Athletic Ability (Div. I or Div. II, NCAA or NAIA)
    n   Special Talents and abilities (Artistic, Musical, Dramatic,
        Leadership, etc. )
n   Some colleges may require a separate application, and an
    earlier deadline for consideration
n   Awards may be renewable; some one year only
n   Merit aid may be combined with need based aid to meet
    demonstrated need
        Sources of Financial Aid
    Institutional (need and merit based)continued

    Need Based Scholarship or Grant:
n   Awarded based on demonstrated need (FAFSA
    must be filed)
n   Grant-in-aid for athletic ability (Div. I or Div. II).
n   May be combined with merit based financial aid
n   Renewable based on changing demonstrated need
    and level of achievement each year in college.
         Sources of Financial Aid
    Outside Sources (need and merit based)
n   Employer, high school organizations, community organizations,
    philanthropic organizations, etc.
n   Private loans for students. Fewer lenders participate. Higher
    interest rates than Direct loans. Co-signer needed. Stringent credit
    check. Interest rates can range between 2.25 – 11.85% plus
    origination fees from 0 – 6%.
n   Numerous free web sites (collegeboard.com, fastweb.com, or
    finaid.org). Do not pay money to get money!
n   Outside sources may impact the financial aid package
n   When notified of outside awards colleges may reduce their own aid.
n   Most outside awards are smaller amounts so the impact on the aid
    package is modest
n   Total need based aid received may not exceed demonstrated need
          Financial Aid Package:
       Meeting Full Demonstrated Need
    Assumptions:
n   Student will attend college in NYS.
n   Family has one in college.
n   The college has resources to meet the full
    demonstrated need of each student who applies
    for aid.
Financial Aid Package
  Meeting Full Need
            Financial Aid Package
              Meeting Full Need

n   Most colleges do not have the resources to
    guarantee that full demonstrated need will be
    met. Those that can typically have very large
    endowments and a lower percentage of students
    requiring need based aid.
n   Only 78 out of over 2000 four year accredited
    colleges promise to meet 100% of demonstrated
    need
Financial Aid Package: Preferential
            Packaging
Packaging Scenario: John Doe
 *   Top 15% of high school class
 *   90 unweighted average (3.5 gpa) in core subjects
 *   1780 SAT (600 Critical Reading/600 Math/580 Writing)
 *   graduating from a NYS high school
 *   Intended major: Biology
 *   Family:
      *   Federal AGI $90,000
      *   Family of 4
      *   1 in college
      *   NYS taxable income $73,000
Financial Aid Package: Preferential
            Packaging
College A:
*   Highly selective (less than 50% of applicants
    admitted)
*   Mean SAT: 1950
*   Mean grade point average: 3.75
*   Yield on accepted students: 35%
*   Located in the Midwest
*   Top three programs: Political Science, Economics,
    Biology
Financial Aid Package: Preferential
            Packaging
College A:
* Cost of Attendance:
   Tuition              $32,000
   Room/Board           $10,500
   Fees                 $ 1,000
   Books                $ 1,000
   Personal/Travel      $ 1,500
   Total                $46,000
    Financial Aid Package: Preferential
                Packaging
    College A:
*   Demonstrated Need:
       Cost of Attendance                $46,000
       - Family Contribution (FM)      - $13,000
       Demonstrated Need                 $33,000
*   Package:
        Federal Direct Loan (sub/unsub)             $5,500
        Federal Work Study(@ $7.75 per hr)          $2,000
        College A Grant                            $15,500
        Regional Scholarship                        $4,000
        Total Aid Offered                          $27,000
Financial Aid Package: Preferential
            Packaging
College A:

 Demonstrated Need          $33,000
 Total Aid Offered          $27,000
 Gap                        $ 6,000
 Family Contribution (IM)   $19,000
Financial Aid Package: Preferential
            Packaging
College B:
*   More Selective (70% of applicants admitted)
*   Mean SAT: 1750
*   Mean grade point average: 3.5
*   Yield on accepted students: 29%
*   Located in the Northeast USA
*   Top three programs: Business, Communications,
    Music
Financial Aid Package: Preferential
            Packaging
College B:
* Cost of Attendance:
   Tuition              $24,500
   Room/Board           $ 9,500
   Fees                 $ 1,000
   Books                $ 1,000
   Personal/Travel      $ 1,000
   Total                $37,000
    Financial Aid Package: Preferential
                Packaging
    College B:
*   Demonstrated Need:
       Cost of Attendance                $37,000
       - Family Contribution (FM)      - $13,000
       Demonstrated Need                 $24,000
*   Package:
        Federal Direct Loan (sub/unsub)             $5,500
        Federal Work Study(@ $7.75 per hr)          $2,500
        Federal Perkins Loan                        $1,500
        College B Merit Scholarship                $12,500
        Total Aid Offered                          $22,000
Financial Aid Package: Preferential
            Packaging
College B:

 Demonstrated Need          $24,000
 Total Aid Offered          $22,000
 Gap                        $ 2,000
 Family Contribution (IM)   $15,000
Financial Aid Package: Preferential
            Packaging
College C:
*   Less selective (90% of applicants admitted)
*   Mean SAT: 1590
*   Mean grade point average: 3.1
*   Yield on accepted students: 32%
*   Located in New York State
*   Top three programs: English, Education, Biology
Financial Aid Package: Preferential
            Packaging
College C:
* Cost of Attendance:
   Tuition              $23,000
   Room/Board           $ 9,000
   Fees                 $ 1,075
   Books                $ 1,000
   Personal/Travel      $ 1,000
   Total                $35,075
    Financial Aid Package: Preferential
                Packaging
    College C:
*   Demonstrated Need:
       Cost of Attendance                $35,075
       - Family Contribution (FM)      - $13,000
       Demonstrated Need                 $22,075
*   Package:
         College C Merit Scholarship            $15,000
         New York State TAP                      $ 500
         Federal Perkins Loan             $ 500 Federal
         Direct Loan (sub/unsub)          $5,500
         Federal Work Study                      $ 575
         Total Aid Offered                      $22,075
Financial Aid Package: Preferential
            Packaging
College C:

 Demonstrated Need   $22,000
 Total Aid Offered   $22,000
 Gap                 $      0
 Cost to Attend      $ 13,000
                       FYI’s
n   You must reapply (electronically) for financial aid
    each year (Renewal FAFSA). How has your
    situation changed from the prior year?
n   If awards are renewable, make sure you have met
    eligibility criteria.
n   Make sure to read your financial aid award letters
    carefully from each college. Do the math!
n   Make sure you know the college costs for the year
    the student will attend.
n   File on time! First time filers: before March 1;
    Renewal FAFSA: see college deadline (but usually
    by April 15)
n
            FYI’s continuedmay seek
    Students who are not Work-Study eligible
    employment on campus. Pay is usually the same as
    work study. Paid by check or direct deposit. Note:
    some colleges only have federal work study
n   Timing and accuracy are crucial to receiving your
    aid awards well before published deposit due dates.
n   Financial aid awards are only good until May 1 for
    Regular Decision, Early Action, and Rolling
    Admission admits (first year freshmen applicants).
n   Early Decision admits usually have only 30 - 45 days
    after their acceptance before enrollment deposit is
    due. Complete early forms well before due dates.
n
                          Options
             ParentLoan for Undergraduate
    Federal Direct Parent
    Students (PLUS):
    n   Parents may borrow up to the full cost of attendance less
        any financial aid received by the student.
    n   Interest rate is 7.9%. You may defer principal and
        interest, or make interest only payments while the student
        is in school. Check with your college about this.
    n   Caution: some colleges put PLUS into your financial aid
        package to make it appear that you owe nothing.
    n   You must prove credit worthy
    n   Consider PLUS before the student borrows a private
        education loan
n   Monthly Payment Plans:
    n   some colleges offer their own
    n   others may work with companies that specialize in this
        (ex. Tuition Pay/Sallie Mae or Tuition Management
        System)
             Questions?

                Tom DaRin
Vice President for Enrollment Management
  Nazareth College, Rochester, NY 14618
                585-389-2830
             tdarin2@naz.edu
               www.naz.edu

				
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