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CHS Financial Aid Seminar- December 2nd, 2008
 

CHS Financial Aid Seminar- December 2nd, 2008

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  • 1 Daniel T. Barkowitz, Lasell College Financial Aid: An Overview
  • 1 Financial Aid: An Overview

CHS Financial Aid Seminar- December 2nd, 2008 CHS Financial Aid Seminar- December 2nd, 2008 Presentation Transcript

  • Financial Aid 101: An Overview Alex Muro Assistant Director Student Financial Services Yale University
  • The Forms You Need to Know
    • FAFSA (Free Application for Federal Student Aid)
      • Required by all colleges and universities
      • Free
      • www.fafsa.ed.gov
      • Available January 1, 2009 for 2009/2010
      • Apply for PIN now!
  • Financial Aid 101: An Overview Alex Muro Assistant Director Student Financial Services Yale University
  • The Forms You Need to Know (continued)
    • CSS Financial Aid PROFILE
      • Required by some colleges and universities
      • $25 for first school and $16 for each additional school
      • profileonline.collegeboard.com
      • Available October 1, 2008 for 2009/2010
    • Institutional Application
      • Check with each individual school
        • Many require a copy of the prior year’s tax return, e.g 2008 for 2009/2010
  • The Forms You Need to Know
    • CSS Financial Aid PROFILE
      • Required by some colleges and universities
      • $25 for first school and $16 for each additional school
      • profileonline.collegeboard.com
      • Available October 1, 2008 for 2009/2010
    • Institutional Application
      • Check with each individual school
  • www.collegeboard.com
    • Scholarship Search
    • College Financing Calculators
      • Expected Family Contribution (EFC)
        • Federal Methodology (FM)
        • Institutional Methodology (IM)
    • Compare Aid Awards
  • “Insider” Tips
    • Comply with deadlines
      • Checklist for each school
      • Copies of all submitted forms
      • Not only the first year but every year!
    • Estimate when necessary
    • Ask questions
    • Focus on net price, not sticker price
    • Review all available financing options
  • “Insider” Tips (continued)
    • Explain special circumstances with initial application
    • Notify financial aid office of any significant changes in income and assets as soon as possible
  • Vocabulary
    • COA = Cost of Attendance
      • Direct expenses (tuition, room, board, fees) + indirect expenses (books, supplies, transportation, personal expenses)
    • EFC = Expected Family Contribution
      • What a family is expected to contribute toward the COA
      • Not same as what will be paid to school
    • Financial Need = COA minus EFC
  • Vocabulary (continued)
    • Need-based aid
    • Non need-based aid
      • Awarded on basis of student’s ability or talent or ethnic heritage
    • Meeting full need
    • Gapping
    • Need-aware admissions policy
    • Need-blind admissions policy
  • What is financial aid?
    • Grants or scholarships (federal, state or other agency/organization)
      • Money that does not need to be repaid
    • Loans (federal or private)
      • Money that must be repaid
      • Borrowed by student, parent or both
  • What is financial aid?
    • Tuition benefits
      • Usually from employer
      • Considered a resource and therefore may affect other elements of financial aid award
    • Work
      • Money which the student is expected to earn and contribute to the cost of attendance
  • Income
    • Taxed income
      • In general, Adjusted Gross Income
    • Untaxed income
      • Most common sources include contributions to retirement plans and child support received
  • Assets
    • Cash
    • Savings
    • Checking
    • Investments – not including retirement plans
    • Home equity – for institutional aid only
    • Other real estate
    • College savings plans
  • How Do I Pay My EFC?
    • Past Income
      • Savings
    • Present Income
      • Salary
      • Payment Plans
    • Future Income
      • Loans
  • Benefits of Saving
    • More options, i.e. cost is not as important a factor
    • Reduces or eliminates the need to borrow
    • Spreading the cost of college over time minimizes the impact on your lifestyle during the years you pay for college
  • Benefits of Saving (continued)
    • Minimal impact to financial aid need analysis – contribution from assets:
      • Parents – approximately 5%
      • Student – approximately 20%
  • Federal Grants
    • Pell Grant
      • $4731 maximum for 2008/2009
    • Supplemental Educational Opportunity Grant (SEOG)
      • Pell eligible
      • $4000 maximum for 2008/2009
      • Amount and recipients determined by school
  • Federal Grants (continued)
    • Academic Competitiveness Grant (ACG)
      • Pell eligible
      • $750 for first year student
      • $1300 for second year
      • Rigorous high school program of study
      • 3.0 GPA for second year
    • National Science and Mathematics Access to Retain Talent (SMART) Grant
      • Pell eligible
      • $4000 for each of third and fourth years
      • Eligible major
      • 3.0 GPA
  • Federal Grants (continued)
    • Teacher Education for Assistance for College and Higher Education (TEACH) Grant
      • $4000 maximum for 2008/2009
      • 3.25 GPA or qualifying score on admissions test
      • Agree to teach in low income school in specific subject after graduation
  • Loans
    • Federal
      • Stafford for student borrowers
      • Parent PLUS for parent borrowers
    • Private
  • Federal Stafford Loan
    • Fixed interest rate of 6.8%*
    • No credit check required
    • No payments required while student is enrolled at least half-time (in-school deferment) and for 6 months after graduation (grace period)
    • Different repayment, deferment, and forbearance options
  • Federal Stafford Loan (continued)
    • Subsidized: need-based
      • Federal government pays interest on loan while student is in school and during grace period
    • Unsubsidized: not need-based
      • Student must make interest-only payments while in school and during grace period to avoid capitalization
  • Dependent Student without PLUS Denial $7,500 $2,000 $5,500 Third- and Fourth-Year Undergraduate (Junior and Senior) $6,500 $2,000 $4,500 Second-Year Undergraduate (Sophomore) $5,500 $2,000 $3,500 First-Year Undergraduate (Freshman) Total Loan Amount Additional Unsubsidized Loan Amount Base Loan Amount (Subsidized and Unsubsidized) Annual Loan Limits – Federal Stafford Loan
  • Federal Parent PLUS Loan
    • Fixed interest rate of 8.5%
    • Credit check required
      • No debts more than 90 days past due
      • No bankruptcy, foreclosure or similar action within the past 5 years
    • Repayment terms same as unsubsidized Stafford loan if in-school deferment requested
  • Federal Parent PLUS Loan (continued)
    • Not available to parents of independent students
    • Annual loan limit = cost of attendance minus other aid
  • Private Loans
    • Interest rates usually variable but sometimes capped
    • Credit check required
    • Repayment terms usually same as unsubsidized Stafford loan
    • Consider state nonprofit lenders
      • CT Student Loan Foundation (CSLF)
      • CT Higher Education Supplemental Loan Authority (CHESLA)
  • Resources
    • US Department of Education
    • studentaid.ed.gov
    • College Board
    • www.collegeboard.com
    • FinAid Guide to Financial Aid
    • www.finaid.org
  • Resources (continued)
    • High school
    • College or university to which student is applying
    • Beware of scams!
      • Most, if not all, information that you may need is available for free!
  • My Contact Information
    • Alex Muro
    • Email [email_address]
    • Phone 203-436-4068