Beyond the FAFSASession 2

Beyond the FAFSA● Ethics and Stewardship● Federal vs Institutional

Methodology ● Financial Aid Timelines● Cost of Attendance● Different Types of Aid● Net Price Calculators

● Meeting Student Need● Dependant vs Independant ● Verification● Example Summary Letter● Helping Students Budget

Ethics and Stewardship in Financial Aid

NASFAA’s Statement of Ethical Principles and Code of Conduct

● Advocate for students● Manifest the highest level of integrity● Support student access and success● Comply with federal and state laws● Strive for transparency and clarity● Protect the privacy of financial aid applicants

https://www.nasfaa.org/Statement_of_Ethical_Principles

Federal Methodology aka the FAFSACreation of a standard student contribution (THE EFC)

The EFCCalculation created based off of tax information

● Taxable income● # in household● # in college

What’s missing: Assets

Institutional Methodology● An “Institutional EFC”● Finds things the FAFSA didn’t ask ● College Board PROFILE● Resource Evaluation (UA)● Results do not lower federal funds

Example FAFSA Timeline

Example Institution Timeline

But before all that...A student needs to apply and be admitted to the institution of their choice.

Cost of AttendanceThe estimated Cost of Attendance (budget) indicates the average educational expenses a student is likely to incur during the academic year (fall and spring).

Changes each year

Different for each student and each institution.

Aid and Scholarships CANNOT exceed the institutions cost of attendance

Cost of Attendance Example● Tuition & Mandatory Fees

○ Not flexible and may change based on the type of institution and time of year● Room and Board

○ VERY FLEXIBLE in many cases (but not all)○ Varying costs on and off campus○ Meal plans are often optional and vary based on need

● Books and Supplies ○ VERY FLEXIBLE ○ Renting vs buying

● Travel ○ VERY FLEXIBLE○ Going home on weekends and holidays○ Vacation?○ Parking/bus passes

● Miscellaneous ○ VERY FLEXIBLE○ Target run!○ Students usually already have these expenses

● Loan Fees ● i course fees

Other Expenses to be prepared for:Different schools have different funding available to cover various costs…

● Study abroad● Greek life or other potentially costly organizations ● Spring Break! ● Consumer debt payments (car payment, credit card payment, etc.)

Different Types of Aid ● “They” help you

○ Federal Pell Grant○ University Grant○ Merit Scholarships○ FSEOG○ Earn to Learn○ Veteran Benefits○ Private Scholarships○ Etc.

● “You” help you○ Subsidized/Unsubsidized Loans○ Work Study○ Parent Plus Loans○ Private Loans○ Savings○ Payment Plan

Types of GrantsFederal Pell Grant:

● Max of $6,095

University Grant:

Federal Supplemental Education Opportunity Grant (FSEOG):

● Limited supply of additional funds given at the discretion of the institution● Given to the students with the absolute highest need

Self-HelpSubsidized and Unsubsidized Loans

● In the student’s name● Fixed interest rate of 5.05%

Parent PLUS Loan

● In the parent’s name● Credit based (checked in July)● Interest rate of 7.6% fixed

Work Study (the steps)1. Answer “yes” on the FAFSA that you in interested in work study2. Qualify for Work Study3. Find a job4. Complete the FWS Authorization form with employer5. May be required to keep track of your earnings6. May be required to maintain a GPA 7. Be aware of institutional deadlines

Scholarships● Can be merit or need based● Always check the terms and conditions of the scholarships

○ Renewable? Restrictions? Additional Requirements? Tuition only? ● May come with additional resources for student

○ Example- Alumni Scholarships often come with mentoring and networking opportunities● Often times, scholarship organizations work directly with institutional financial aid and

scholarship offices to deliver awarded funding to the student● Other times, the organization will provide the student directly with a check

Net Price Calculators● Scholarships● Financial Aid● Net Price

Some examples to see-

https://collegecost.ed.gov/netpricecenter.aspx

Meeting Student Need

Example College COA = $40,000

Example Award Sequence

● The standard order in which awards are placed on a student’s account.

● Additional awards added later may cause other awards to be reduced.

● Students may only be awarded “need based” aid up to their need, or other need based aid will be reduced, starting with FWS*.

● If a student has a cost of attendance over-award, the Parent PLUS loan would be the first to be reduced.

Dependency Information● For financial aid purposes, a student is classified as either dependent or independent.● To be considered independent and not required to include parental data on the FAFSA, students

must meet one of the following criteria:○ Born before January 1, 1996○ Working on a master’s or doctorate degree○ Be married○ Have children/Dependents for whom they provide at least 51% of support○ Active Military/Veteran○ Special Circumstances: Orphan/Legal Guardianship/Ward of the Court (documentation will be requested)

● Being self-supporting or willingness of parents to pay not factors.

Selected for Verification● Information federal government is requiring the school to verify before they are allowed to

release aid● Most often required to check accuracy or request more information based off of what was

submitted on the FAFSA● Required for many need based programs (ex: Arizona Assurance students)● Cannot be waived or appealed

#1 way to avoid being selected/expedite process: Use the IRS Data Retrieval Tool!

Financial Aid Award LetterSummary Letter

Examples

2012 US Department of Education “Shopping Sheet”

Clear andConsistent

New America

Decoding the Cost of College Reporthttps://www.newamerica.org/education-policy/policy-papers/decoding-cost-college/

Activity: Calculating Unmet Need

Budgeting Advice for Students● Understand your school’s summary letter. Ask for help if you don’t understand! ● Only take out what you need! ● Rent textbooks instead of buying● Choose an affordable meal plan● Have a roommate● Choose affordable housing options● On campus student employment● Pay your balance(s) on time to avoid late fees● Do not add/drop classes during a period that requires a fee● Meet with your academic advisor(s) on a regular basis to ensure you are meeting your graduation goals● You don’t need to wait to make payments on student loans● Use a budget sheet- many schools provide them for you! ● Use the Federal Student Aid Repayment Estimator (https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action)

The Bottom Line

College costs money and we need to be having this conversation with families early on

It is very rare to graduate from college debt free

Financial planning is just as important as filling out the FAFSA