2015 Financial Aid Workshop Dave Reeder – Director of Financial Aid

2015 Financial Aid Workshop
Dave Reeder – Director of Financial Aid
To request an electronic
copy of today’s presentation,
EMAIL [email protected]
Average Published Charges (Enrollment-Weighted)
for Full-Time Undergraduates by Sector, 2015-16
SOURCE: The College Board, Trends in College Pricing 2015, Table 1A
For detailed data, visit: trends.collegeboard.org.
Trends in College Pricing 2015
Average Published Charges (Enrollment-Weighted)
for Full-Time Undergraduates
by Carnegie Classification, 2015-16
SOURCE: The College Board, Trends in College Pricing 2015, Table 1B
For detailed data, visit: trends.collegeboard.org.
Trends in College Pricing 2015
Average 2015-16 Tuition and Fees and Room and Board
(Enrollment-Weighted)
by Sector and College Board Region
SOURCE: The College Board, Trends in College Pricing 2015, Figure 2
For detailed data, visit: trends.collegeboard.org.
Trends in College Pricing 2015
Average 2015-16 In-State Tuition and Fees at Public
Four-Year Institutions by State and Five-Year
Percentage Change in Inflation-Adjusted Tuition and
Fees
SOURCE: The College Board, Trends in College Pricing 2015, Figure 8
For detailed data, visit: trends.collegeboard.org.
Trends in College Pricing 2015
Average 2015-16 Out-of-State Tuition and Fees at Public
Four-Year Institutions by State and Five-Year Percentage
Change in Inflation-Adjusted Tuition and Fees
SOURCE: The College Board, Trends in College Pricing 2015, Figure 9
For detailed data, visit: trends.collegeboard.org.
Trends in College Pricing 2015
2015-16 Tuition and Fees at Flagship Universities and
Five-Year Percentage Change in Inflation-Adjusted
In-State Tuition and Fees
SOURCE: The College Board, Trends in College Pricing 2015, Figure 10
For detailed data, visit: trends.collegeboard.org.
Trends in College Pricing 2015
Total and Per-Student State Funding for Higher
Education in 2014 Dollars, and Public FTE Enrollment,
1984-85 to 2014-15
SOURCE: The College Board, Trends in College Pricing 2015, Figure 16B
For detailed data, visit: trends.collegeboard.org.
Trends in College Pricing 2015
Agenda
 Ch-ch-ch-changes!
 Admissions/financial aid timelines
 Definition of financial aid
 Definition of financial need and how it is
determined
 How to apply for financial aid
 Financial aid award letter -- sources/
programs of aid
Changes for 2016-17
 Other schools listed on the FAFSA will not be seen by
each institution.
 Changes in asset conversion
Changes for 2017-18
 FAFSA Data – beginning with 2017-18 FAFSA, income
will be reported from “prior-prior-year.” So, current HS
seniors will be using 2015 income two years in a row.
 FAFSA Date – Beginning in fall, 2016 FAFSA will
become available in October of senior year in high
school. So, current HS juniors will have the opportunity
to file their FAFSA before January 1.
 Impact to the timeline – at this time, still an unknown
how schools will/can react to the change.
Changes for the future
Wait, there’s more???
 Strong desire for simplification
 “One grant, one loan”
 Much shorter FAFSA
 Will this actually make institutions re-think their application
needs when determining how to award institutional funds???
Agenda
 Ch-ch-ch-changes!
 Admissions/financial aid timelines
 Definition of financial aid
 Definition of financial need and how it is
determined
 How to apply for financial aid
 Financial aid award letter -- sources/
programs of aid
Admissions & Financial Aid Timeline
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Spring – November
October – January
December – March
January – February
February – April
December – May 1st
:
:
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:
:
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College Search
College Applications
Admissions Decisions
Financial Aid Applications
Financial Aid Decisions
College Choice
Admissions timeline moving earlier & earlier
Essentials
Know what to file.
Know when to file it.
Call the college/university’s
financial aid office with any
questions.
College/
State
Mount St. Mary's University
State of Maryland
Financial Aid
Numbers & Contacts
Required
Applications
301-447-5207 / [email protected]
Director - Dave Reeder
Assistant - Amy Wilkinson
FAFSA
410-260-4565 / 800-974-1024
FAFSA
Scholarship apps
as appropriate
Application
Codes
002086
Filing
Deadlines
February 15
Received by
March 1
Agenda
 Ch-ch-ch-changes!
 Admissions/financial aid timelines
 Definition of financial aid
 Definition of financial need and how it is
determined
 How to apply for financial aid
 Financial aid award letter -sources/programs of aid
What is Financial Aid?
Monies provided to students from any outside
resource for the specific intent to help offset
educational costs.




Scholarships
Grants
Loans
Work study
“Gift aid”
“Self help”
Sources of Financial Aid
 Colleges/Universities
 Federal Government
 State Government
 Private
What is Financial Aid?
Merit-based Aid:
 Academic, athletic, leadership scholarships based strictly on
student’s achievements.
 Allow schools to “shape” their student body.
 Research college publications and web site for
requirements.
Need-based Aid:
 Awarded based on family’s ability to pay.
 Must file financial aid application(s).
Types of Need-based Aid
 Gift Aid
 Grants
 Scholarships
 Self-help Aid
 Loans
 Work study
Agenda
 Ch-ch-ch-changes!
 Admissions/financial aid timelines
 Definition of financial aid
 Definition of financial need and how it is
determined
 How to apply for financial aid
 Financial aid award letter -sources/programs of aid
Definition of Financial Need
Cost of Attendance (COA)
– Expected Family Contribution (EFC)
= Financial Need
Cost of Attendance
 Tuition & fees
“Sticker Price” or “Direct costs”
 Room & board
 Books & supplies, including computer
expense
 Transportation
 Miscellaneous/personal
 Study abroad
EFC & Financial Need
On-Campus
Private
Costs
EFC
Need
$43,921
$17,000
$26,921
On-Campus
Public
$19,548
$17,000
$ 2,548
Commuter
Public
$11,438
$17,000
$ -0-
Principles of Need Analysis
 To the extent they are able, parents have
primary responsibility.
 Students also have a responsibility to
contribute to their educational costs.
 Families should be evaluated in their present
financial condition.
 Special conditions allow for extenuating
circumstances.
Federal Methodology
Formula created by Congress to
determine EFC.
Calculated via the Free Application for
Federal Student Aid (FAFSA).
Required by all schools for need-based
aid.
Institutional Methodology
Used by many private schools to
determine EFC.
Calculated via CSS Profile or institutional
aid application.
Includes home equity and a minimum
student contribution.
Expected Family Contribution
FOUR COMPONENTS
 Parental income
 Parental assets
 Student income
 Student assets
Expected Family Contribution
Parental Income
Taxable income (adjusted gross income)
+ Non-taxable
- Less excludable income (e.g. child support paid)
- Less taxes paid
- Less allowances
= Available income
Expected Family Contribution
Parental Income
Non-Taxed Income – DO NOT include:
– Welfare payments
– Earned Income Credit
– Special Fuel Tax Credit
– Excluded foreign income
– Untaxed Social Security Benefits
Expected Family Contribution
Parental Assets
Cash, Savings & Checking (excluding retirement accounts)
+ Adj. farm/business net worth (small business exclusion)*
+ Investment/real estate equity (excluding home)
- Less “Education savings and asset protection
allowance” (determined by age of older parent)
X Asset conversion rate (12%)
= Contribution from assets
*Small business = less than 100 employees
Expected Family Contribution
Asset Protection Allowance
2016
Age
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
2 parent
1 parent
household household
$17,800
$9,000
$18,300
$9,200
$18,700
$9,400
$19,200
$9,700
$19,700
$9,900
$20,200
$10,100
$20,700
$10,400
$21,300
$10,600
$21,800
$10,900
$22,400
$11,100
$23,000
$11,400
$23,700
$11,700
$24,300
$12,000
$25,000
$12,300
$25,700
$12,600
$26,400
$12,900
$27,200
$13,200
$27,900
$13,600
$28,800
$13,900
$29,600
$14,300
2013
Age
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
2 parent
1 parent
household household
$42,300
$14,500
$43,400
$14,900
$44,400
$15,200
$45,500
$15,600
$46,600
$16,000
$48,000
$16,300
$49,200
$16,700
$50,700
$17,100
$51,900
$17,500
$53,400
$17,900
$54,700
$18,500
$56,300
$18,900
$58,000
$19,400
$59,700
$19,900
$61,400
$20,400
$63,100
$20,900
$65,000
$21,500
$66,800
$22,100
$68,700
$22,700
$71,000
$23,300
Expected Family Contribution
Education Savings Plans
 Prepaid tuition plans allow a person to buy tuition credits or
certificates, which count as units of attendance. The number of units
doesn’t change, even though tuition will likely increase before the
beneficiary gets to use the tuition credits. Prior to the HERA, prepaid
tuition plans were estimated financial assistance; they are now an
asset of the plan owner, and their worth is the refund value of the
credits or certificates.
 State-sponsored college savings plans allow a benefactor to
deposit money into an account that will be used for the beneficiary’s
college expenses. The buyer does not prepurchase tuition credits as
with a prepaid tuition plan. Rather, this type of plan is essentially a
special savings account. The value of a college savings plan should
be treated as an asset of the owner and not the beneficiary, because
the owner can change the beneficiary at any time.
Expected Family Contribution
Parent Contribution
Available income
+ Contribution from assets
= Adjusted Available Income (AAI)
X Assessment Rate
= Total Parent Contribution
÷ Number attending college (excluding parents)
= Parental Contribution for student
Expected Family Contribution
Student’s Contribution
Total Income less taxes paid
- Income protection allowance=$6,400
x 50% assessment rate
= Student’s contribution from income
+ 20% of assets
= Student’s contribution
Expected Family Contribution
Student’s Contribution
Account Title
Account
Type
Whose Asset
on FAFSA
Parent in trust for Child
Totten Trust
Parent
Child in trust for Parent
Totten Trust
Child
Parent and Child
Joint Account
Split Evenly
Child and Parent
Joint Account
Split Evenly
Parent as custodian for Child
Parent as trustee for Child
Custodial
Account
Custodial
Account
Child
Child
Expected Family Contribution
Parents Contribution
+ Students Contribution
= Expected Family Contribution
EFC Calculators
 FAFSA 4Caster – “raw” estimate; provides EFC
www.fafsa4caster.ed.gov
 College Board (“Big Future”) – institutional
methodology, longer to complete; provides EFC
www.bigfuture.collegeboard.org
 Aie.org – provides detailed output that shows how
EFC was determined
www.aie.org
EFC Calculators
http://www.aie.org/managing-your-money/financetools/efc_calculator/
Net Price Calculator
 Each school is required to post on its website
 Some schools have it on its admissions page;
others on the financial aid page
 Depending on the school’s financial aid structure,
requested information could include academic as
well as financial data
 Provides a estimated financial aid package
Agenda
 Ch-ch-ch-changes!
 Admissions/financial aid timelines
 Definition of financial aid
 Definition of financial need and how it is
determined
 How to apply for financial aid
 Financial aid award letter -sources/programs of aid
Applying for Aid
General Eligibility Requirements
 Must be enrolled or accepted for enrollment in an
eligible program.
 Must be pursuing degree, certificate or other
recognized credential.
 US citizen or eligible non-citizen with SSN.
 Males must be registered with Selective Service.
 Eligibility can be suspended/terminated for drugrelated conviction.
Applying for Aid
FAFSA
 Submit on-line FAFSA at www.fafsa.ed.gov.
 Allow up to a week for processing.
 Print paper FAFSA (under “other filing options”) or
call 1-800-4FEDAID.
 Allow up to 4 weeks for processing paper application.
 List up to 10 institutions to receive information.
 Can begin process with estimates.
 MEET ALL DEADLINES!!!
Applying for Aid
www.fafsa.ed.gov
 Pre-register for two pin numbers (one for parent &
one for student) at www.pin.ed.gov.
 With no pin number, must mail in signatures
which are then matched with electronic file.
 Electronic Student Aid Reports sent to email
address on FAFSA.
No more
PIN
Applying for Aid
www.fafsa.ed.gov
The FSA ID
 This must be done prior to completing the FAFSA
 Apply online or by going online to FAFSA and starting a
new application. You will be prompted to apply for an FSA
ID at that time.
 Must apply for two FSA ID numbers-one for parent and
one for the student.
 Only the FSA ID user may create his or her own FSA ID
number.
 https://studentaid.ed.gov/sa/fafsa/filling-out/fsaid
Applying for Financial Aid
IRS Data Retrieval
 Parents who indicated they have filed their taxes
will be directed to use the FAFSA-IRS Data
Retrieval process.
 Depending on timing, data may not be available.
 Opportunity to update the FAFSA once taxes are
complete.
 Can complete the FAFSA without Data Retrieval,
often necessary to meet deadlines.
Applying for Aid
CSS Profile
 Submit registration form listing schools to receive
information.
 Will be sent application to be completed with
questions based on list of schools.
 Can take care of both steps on-line at
http://profileonline.collegeboard.com.
 $25 registration fee includes first school; $16 per
additional school.
Applying for Aid
Common Errors
 Divorced/remarried parent information.
 Should be parent with whom student resides and
step-parent, if appropriate.
 Income earned by parents/stepparents.
 Adjusted Gross Income
 Untaxed income
 All money received should be included.
 US Taxes Paid
 Not taxes withheld.
Applying for Aid
Common Errors (cont.)
 Household size
Do not include independent students or
children who have moved out of the house.
 Number in postsecondary education
Do not include independent students or
parents.
 Real estate and investment net worth.
Applying for Aid
Processing Results
 Student Aid Report
 Students who file paper FAFSA without email
address will receive via US mail.
 Students who file electronically or who list email
address on paper SAR will be notified via email
with direct link to electronic SAR
 Students can view SAR on-line at
www.fafsa.ed.gov/studentaccess.htm.
 Review data & make necessary corrections.
Applying for Aid
Role of the Financial Aid Office
 Determines eligibility for aid based on EFC and school’s
Cost of Attendance.
 Packages financial aid & sends award letter.
 Counsels students/families.
 Before award letter regarding procedures.
 After award letter with explanations and ramifications.
 Special Conditions
 Dependency Overrides
Applying for Aid
Role of the Financial Aid Office
 Dependent Status (FAFSA Questions)
46. Were you born before January 1, 1993?
47. As of today, are you married? (Also answer “Yes” if you are separated but not
divorced.)
48. At the beginning of the 2016-17 school year, will you be working on a master’s or
doctorate
49. Are you currently serving on active duty in the Armed Forces for purposes other
than training?
50. Are you a veteran of the U.S. Armed Forces?
51. Do you now have or will you have children who will receive more than half of
their support from you between 7/1/2016 and 6/30/2017?
52. Do you have dependents (other than your children or spouse) who live with you
and who receive more than half of their support from you, now and through June
30, 2017?
Applying for Aid
Role of the Financial Aid Office
 Dependent Status (FAFSA Questions)
53. At any time since you turned age 13, were both your parents deceased, were you in
foster care or were you a dependent or ward of the court?
54. As determined by a court in your state of legal residence, are you or were you an
emancipated minor?
55. As determined by a court in your state of legal residence, are you or were you in legal
guardianship?
56. At any time on or after July 1, 2015, did your high school or school district homeless
liaison determine that you were an unaccompanied youth who was homeless?
57. At any time on or after July 1, 2015, did the director of an emergency shelter or
transitional housing program funded by the U.S. Department of Housing and Urban
Development determine that you were an unaccompanied youth who was homeless?
58. At any time on or after July 1, 2015, did the director of a runaway or homeless youth
basic center or transitional living program determine that you were an
unaccompanied youth who was homeless or were self-supporting and at risk of being
homeless?
Applying for Aid
Role of the Financial Aid Office
 Dependent Status (Dependency Override)
Students with unique positions who believe they
should be classified as independent must contact
the Financial Aid Office at their institution.
“Special Conditions” or Professional
Judgments
Contact school’s financial aid office to discuss:
 Change in income – less in 2016 than what had to be reported
on FAFSA for 2015.
 High school/elementary costs.
 Unusually high medical/dental bills not covered by insurance.
 Dependency status/override
 Can not be made based on parent’s inability or unwillingness to pay
 Student must prove financial independence of parents.
Applying for Aid
Role of the Financial Aid Office
 Verification of FAFSA Information
 Request IRS Data Retrieval or IRS Tax transcript
 Verify enrollment of siblings
 Some schools verify 100% up front, others wait
until later in the process and verify only those
selected by FAFSA.
Agenda
 Ch-ch-ch-changes!
 Admissions/financial aid timelines
 Definition of financial aid
 Definition of financial need and how it is
determined
 How to apply for financial aid
 Financial aid award letter -sources/programs of aid
Sources of Financial Aid
Colleges & Universities
 Scholarships & Grants
• Research financial aid brochures, college
web-site, etc. for requirements
• Discount off of sticker price
• Need-based grants help with ability to pay;
merit-based awards affect willingness to pay.
Sources of Financial Aid
Federal Government
 Pell Grant
 Supplemental Grant(SEOG)
 Work Study
 Perkins Loan
 Direct Student
Loan
 Parent Loan
Pell Grant
“Entitlement”
 Grant
• No repayment, no work
 Amount
• $400-5,775 per year
 Entitlement
• Amount calculated the same at all schools.
 Eligibility determined by Federal EFC
Supplemental Educational Opportunity Grant
(SEOG) --- “Campus-Based”
 Grant
• No repayment, no work
 Amount
• $200-4,000 per year
 Eligibility
• Accepted and Pell eligible (FAFSA)
 Campus-Based
• Recipients determined by financial aid office.
Work Study Program
”Campus-Based”
 Part-time jobs
• On college campus – any job
• Off campus – non-profit agency
 School year average earnings $1200-2500
 Eligibility
• Accepted and demonstrated need (FAFSA)
 Campus-Based
• Recipients determined by financial aid office
Direct Student Loan
 Lender
“Entitlement”
• Direct – Colleges and Universities
 Amounts
• Freshman - $5,500 (up to $3,500 subsidized based on need)
• Sophomore - $6,500 (up to $4,500 subsidized based on need)
• Juniors & Seniors - $7,500 (up to $5,500 subsidized based on
need)
• Graduate/Professional - $8,500 (subsidized)
$10,000 (unsubsidized)
 Deferment/Repayment
• Deferred while in school half-time or more
• Deferred while in military, VISTA, or peace corps (3 years)
• Up to 10 years to repay
Direct Student Loan
 Interest
• Subsidized
“Entitlement”
o While in school or deferment, none
o During repayment, 4.29%, fixed
• Unsubsidized
o While in school or deferment, 4.29%
o During repayment, 4.29% fixed
 Origination Fee
 Students must pay a 1.073% origination fee which is subtracted
from the loan.
Parent Loan for Undergraduate Students (PLUS)
Federal Government
 Maximum aid is equal to total college costs minus
financial aid
 Repayment is scheduled to begin 60 days after loan
is disbursed. However, parents are eligible to apply
for deferment until after student is out of school.
 Interest rate is fixed at 6.84%.
 Origination fee = 4.292%.
Sources of Financial Aid
State Government - Maryland
For Maryland residents attending Maryland colleges.
 Education Asst. Grants – File FAFSA before March 1
 Guaranteed Access Grants – Separate application.
Grants up to $17500 for students with extreme need.
 Senatorial Scholarships – Contact Senator’s office
 Delegate Scholarships – Contact each of three
Delegates
www.mhec.state.md.us – for additional programs
Sources of Financial Aid
State Government - Other
Pennsylvania
Pennsylvania residents attending colleges in Pa. and other approved states.
 PHEAA Grants – File FAFSA before May 1
 Separate grant application at the time you submit FAFSA.
www.pheaa.org
Virginia
For Virginia residents attending Virginia Colleges
 Tuition Assistance Grant Program (VTAG) – attending in-state privates
 Guaranteed Assistance Grant Program (VGAP) - publics
 Commonwealth Award - publics
Sources of Financial Aid
Private/Local Scholarships
 Civic Organizations
• Elks, Rotary, Kiwanis, parents’ employers, etc.
 Private Companies
 Public Libraries
 Internet Searches
• www.fastweb.com
• www.finaid.org
• www.collegeboard.com
Sources of Financial Aid
Private/Local Scholarships
 Avoid scams
 www.ed.gov/prog_info/SFA/LSA
 www.ftc.gov/bcp/conline/publs/alerts/ouchart.htm
 http://search.bbb.org/search.html
 If you have to pay for it, question it.
Sources of Financial Aid
Private/Local Scholarships
 Inform Financial Aid Office of outside
scholarships.
 Could affect eligibility for federal need-based
aid.
 Some schools may reduce their institutional
grants.
Financial Aid Checklist
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Financial Aid Checklist
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Use this checklist to plan what you need to do to apply for and receive financial aid. Many of the items listed have a deadline date.
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October-December
Request financial aid information and the school’s financial aid application from each school you are planning to apply.
Include in your request, information regarding any institutional grants and scholarships that are
not need-based. When information is received, note all required application materials and their deadlines on the
grid on the reverse side.
Obtain from your high school guidance office or your state scholarship organization information regarding all
state financial aid programs for postsecondary education and any required applications. When information is
received, note all required application materials and their deadlines on the grid on the reverse side.
Investigate private sources of financial aid for college. Check high school guidance office, local libraries, local
business and civic organizations, and parents’ employers. Check useful free resources over the Internet, such as:
College Board’s Scholarship Search at: www.collegeboard.com/paying
FastWeb Scholarship Search at: www.fastweb.com
Scholarship Resource Network Express at: www.srnexpress.com
If you are interested in filing your financial aid application electronically, you and a parent should obtain Personal
Identification Numbers (PINs) from the U.S. Department of Education at www.pin.ed.gov. Your parents should
have their own, separate from yours.
Additional Materials
www.msmary.edu/financialaidnight
Presentation Grid (.pdf)
Financial Aid Checklist (.pdf)
Financial Aid Glossary (.pdf)
Federal Student Aid Program Summary (.pdf)
Sample Scholarship Letter (.pdf)
Consultant and Scholarship Search Services Fact Sheet (.pdf)
Cost Comparison (.xls)
2015 Financial Aid Workshop
Dave Reeder – Director of Financial Aid