This document summarizes information presented at a spring financial meeting for juniors and their families about paying for college. It discusses how financial need is calculated using the Expected Family Contribution and costs of attendance. It also outlines the types of financial aid available, including grants, scholarships, work-study, and loans. Sample financial aid award letters are provided for two students attending different colleges to demonstrate how need, grants, and loans are determined. Tips are given on lowering costs such as attending community college initially or negotiating financial aid packages.

1. Spring Junior Financial Meeting April 2013
HOW ARE WE
GOING TO PAY
THIS COLLEGE
BILL?
FINANCIAL AID 101
A Case of ­ NEED!
The Expected Family
Contribution
(EFC)
The Expected Family Contribution
The Federal Methodology uses the sum of four
separate calculations to determine EFC.
• Contribution from Parents’ Income
• Contribution from Parents’ Assets
X 5.6%
• Contribution from Student’s Income
• Contribution from Student’s Assets
X 20%
Go to www.fafsa.gov – bottom right to
FAFSA4caster for early estimate
THE FREE APPLICATION FOR
FEDERAL STUDENT AID
• Used to determine the EFC - must file as soon after January 1 as
possible - filing over the web is faster and more accurate (instant
estimated EFC).
• Several days after filing, the STUDENT AID REPORT ( SAR ) is e-
mailed with link to web site if done over the web.
• Even if you think you won’t qualify, FILE THE FORM ! Required
for many loan programs.

2. Spring Junior Financial Meeting April 2013
TWO SPECIAL SITUATIONS
• PARENTS ARE DIVORCED OR SEPARATED
Use the income and assets of the parent with whom the student
lived for the greater part of the twelve months preceding the date
of filing for aid.
• TWO DEPENDENTS IN COLLEGE AT THE SAME
TIME (Parents not included)
Each student has a separate family contribution
figure consisting of half the parents’ contribution
from income and assets plus the student’s own
contribution from income and assets.
HOW MUCH WILL COLLEGE COST?
THE COST OF ATTENDANCE
• Tuition and Fees
• Books and Supplies
• Housing (Room)
• Meals ( Board )
• Personal Expenses
• Transportation
• Miscellaneous (Computer?)
SAMPLE COLLEGE COSTS
• Atlantic Cape Community College
$7,000
(includes estimated cost of transportation and books)
• The College of New Jersey
$24,500
• The University of Delaware
$38,000
• Villanova University
$56,000

3. Spring Junior Financial Meeting April 2013
COMPUTING YOUR NEED!
Sample EFC of $20,000
• Your need at ACCC
$7,000 - $20,000 = 0
• Your need at Col of NJ
$24,500 - $20,000 = $4,500
• Your need at Delaware
$38,000 - $20,000 = $18,000
• Your need at Villanova
$56,000 - $20,000 = $36,000
THE FINANCIAL AID PACKAGE
GIFT AID
• Grants
• ScholarshipsSELF-HELP AID
• Work Study
• Loans
GIFT AID
A. GRANTS
1. Federal Pell Grant
Maximum of $5550 – Low EFCs
2. Federal SEOG – for Pell recipients
$100 - $4000
3. Tuition Aid Grant (TAG) - Only for New
Jersey - up to $11,550
4. Educational Opportunity Fund (EOF) -
Only for New Jersey
$200 - $2300
5. College Based Grants - CSS PROFILE - Most
private schools require this form
A. SCHOLARSHIPS
1. Edward J. Bloustein Scholarships
$930 - only in NJ - top 10% and
1260 SAT by June 2013. – Currently not
funded - Part of Outstanding Scholars
Recruitment Program (OSRP)
2. College Based
a. Academic
b. Band
c. Talent
d. Athletic
3. Private

4. Spring Junior Financial Meeting April 2013
EXAMPLE # 1
University of Delaware -
$38,000 Cost of Attendance
Family EFC - $38,000
Need - 0
Scholarship won- $2,000
Effect- Reduces family obligation $2,000
- family would only have to pay $36,000
THE EFFECT OF PRIVATE SCHOLARSHIPS
ON THE COST OF EDUCATION
EXAMPLE #2
Villanova University -
$56,000 Cost of Attendance
Family EFC- $38,000
Need - $18,000
Scholarship won- $2,000
Effect -Family EFC does not change – Need is
reduced by $2,000 so the student may be offered
a financial aid package of $16,000 not $18,000.
Private scholarships are most
beneficial to those families
who have significant EFCs
that may be larger than the
cost of attendance.
The scholarships listed on the next slides are
currently available in the guidance office.
All applications are in the two-drawer cabinet
labeled “scholarships”.
Posted on “Family Connection”
http://connection.naviance.com/ochs

5. Spring Junior Financial Meeting April 2013
Description
THE HAND MEMORIAL SCHOLARSHIPS
• Three different types of scholarships
A. Morgan Hand, II -
engineering
B. Cecelia Hand Nelson
Memorial
C. Morgan Hand, II -
engineering at Rutgers
• Targeted for Ocean City High School
students.
• Ambassador William Hughes is the executor
for the estate.
• Financial Need is a major factor - Income tax
forms required.
• Renewable
16 students received a total of $33,500 in the
Class of 2012

6. Spring Junior Financial Meeting April 2013
OCEAN CITY COMMUNITY
SCHOLARSHIPS
• OC community gives away over
$115,000 worth of scholarship
money each spring. Applications
available middle of March. NEED
based with POTENTIAL to
SUCCEED being a factor as well.
Must have filed FAFSA.
• Seventy plus scholarship
recipients are selected by an
anonymous and confidential high
school committee.
• Example from 2012 - 5/$250 –
1/$400 - 33/$500 – 30/$1,000 –
2/$2,000 – 3/$2,500 – 1/$6500
($1625 per year)
• 4 OC Masonic Club “Foster
Karney” Scholarships for $8000
($2000 per year for 4 years)
• 1 Timothy and Catherine
Fitzgerald Scholarship for future
teachers - $16,000 ($4,000 per
year)
FREE SCHOLARSHIP SEARCHES
ON THE WEB
• www.fastweb.com
• www.collegenet.com
• www.scholarships.com
• www.collegeanswer.com

7. Spring Junior Financial Meeting April 2013
SELF-HELP AID
A. Federal Work Study –
federal money given to colleges
to pay students for work on
campus.
B. Loans
1. Federal Perkins Loan - need
based - low EFC
a. Awarded through college
- 5% int. rate
b. Maximum of $4,000
c. Repay begins 9 months
after graduation.
2. William D. Ford Federal Direct
Loans
(FAFSA required - serves as application - old
Stafford old GSL)
a. Subsidized - need based
b. Unsubsidized - interest not paid by
federal government while the
student is in college.
NOTE: Taken in student name - should try to pay interest
while student in school - repayment of principal 6 months
after graduation
William D. Ford Federal Direct Loans
Dependent Total Additional
Undergraduates subsidized unsubsidized
First Year $3500 $2000
Second Year $4500 $2000
Third Year and Beyond $5500 $2000
Independent Total Additional
Undergraduates subsidized unsubsidized
First Year $3500 $6000
Second Year $4500 $6000
Third Year and Beyond $5500 $7000

8. Spring Junior Financial Meeting April 2013
3. The Federal Plus Loan
a. Parent of a dependent undergraduate by borrow up
to the total cost of the college minus any aid already
received.
b. Loan repayment begins within 60 days
c. Credit check – can have co-signer
d. Current interest rate – 7.9
e. Up to 10-25 years to repay.
f. First loan offered by colleges to fill the gap (EFC
plus money offered).
4. New Jersey Class Loan
a. Student or parent can take this loan instead
of Plus Loan.
b. Loan repayment can begin within 60 days
or interest and principal can be deferred until
after the student graduates (3 or more options)
c. Loan CAN be taken out of NJ.
d. Current interest rate – rates vary between
6.6% - 8% based on option selected.
e. Up to 10-20 years to repay.
f. 1-800-792-8670 or www.hesaa.org
Sample 10 yr. Repayment Table
Total Bal. 6% 7% 8% 9% 10%___
$5,000 $55.51 $58.06 $60.67 $63.34 $66.08
$10,000 $111.02 $116.11 $121.33 $126.68 $132.16
$15,000 $166.53 $174.17 $182.00 $190.02 $198.23
$20,000 $222.04 $232.22 $242.66 $253.66 $264.31
$25,000 $277.55 $290.28 $303.32 $316.69 $330.38
$30,000 $333.06 $348.33 $364.99 $380.03 $396.46
$35,000 $388.57 $406.38 $424.65 $443.37 $462.53
$40,000 $444.08 $464.44 $485.38 $506.71 $528.61
$45,000 $499.59 $522.49 $545.98 $570.05 $594.68
$50,000 $555.10 $580.55 $606.64 $633.38 $660.76
THINK BEFORE YOU BORROW !
Edith "I'm Flat Broke" Roach
School Budget School Budget
for Col of NJ for Villanova
$24,500 $56,000
Expected Fam. Cont. $4000 $4000
Pell Grant $1700 $1700
Ext. Res. (private sch.) $2000 $2000
Remaining Need $16,800 $48,300

9. Spring Junior Financial Meeting April 2013
Col of NJ Villanova
Remaining Need $16,800 $46,300
Federal Perkins Loan $3000 $4000
Federal Work Study $2100 $4000
Federal SEOG $2000 $3500
State Grant (TAG) $3500 0
State Scholar. (Bloustein) 0 0
Institutional Loan 0 0
Institutional Grant/Schol. $2000 $24,000
William D Ford Loan $3500 (sub) $5500
UNMET NEED $700 $7,300
Chris "Big Bucks" Banks
School Budget School Budget
for Col of NJ for Villanova
$24,500 $56,000
Expected Fam. Cont. $40,000 $40,000
Pell grant 0 0
Ext. Res. (private sch.) $2000 $2000
Remaining Need 0 $14,000
Col of NJ Villanova
Remaining Need 0 $14,000
Federal Perkins Loan 0 0
Federal Work Study 0 $1000
Federal SEOG 0 0
State Grant ( TAG ) 0 0
State Scholar. ( Bloustein ) 0 0
Institutional Loan 0 0
Institutional Grant/Schol. $1000 $4000
Federal Stafford Loan 0 $5500
UNMET NEED 0 $3500
I. Lower your EFC
II. Negotiate the Aid Package
III. Make a Wise College Selection
A. Ask about the college’s aid offerings
B. Position the student for a good financial
aid package
C. Look for an academic scholarship
D. Stay in state
E. Consider Cooperative Education
F. Spend the first two years at a local
community college
G. Accelerate your degree
SHORT TERM SOLUTIONS TO HELP
PAY THAT COLLEGE BILL

10. Spring Junior Financial Meeting April 2013
H. Investigate Commercial Payment Plans
1. Academic Management Service -
1- 800-635-0120, www.tuitionpay.com
2. Tuition Management Systems -
1-800-722-4867, www.afford.com.
All the above may come with variables such as:
interest, varying payment schedules and little to no
down payment.
Highest Education Average Annual
Completed Family Income
< High School $38,190
High School $56,810
College $104,514
Master’s $121,484
Doctorate $142,089
Professional $171,088
A COLLEGE EDUCATION STILL PAYS!
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~THE END~
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