Financial Aid Counseling I: The Application Process

FINANCIAL AID COUNSELING I:

THE APPLICATION PROCESS

Options Institute at Goddard Riverside Community Center

Options Institute – Goddard Riverside Community Center

Housekeeping Reminders Pre and Post Surveys Sign in sheet Start and End time Evaluations Restrooms Cell phones One mic


Agenda Welcome Financial Aid Overview First Steps to Filing FAFSA: The Rules Financial Aid Applications : FAFSA Financial Aid Applications: TAP, Profile Financial Aid Applications: Process What Would You Do? Action Planning Closing – Post Survey and Evaluations

Financial Aid Data


Undergraduate Student Aid

Source: Trends in Student Aid 2013http://trends.collegeboard.org/sites/default/files/student-aid-2013-full-report.pdf

Federal Grants, 24%

Work Study, <1%

Loans, 37%

State Grants, 5%

Institutional Grants, 19%

Scholarships, 4%Federal Tax Cred-its & Deductions,

9%


Average Grant and Scholarship Aidfor Undergraduate Students in 2011-12

Source: National Center for Education Statistics, http://nces.ed.gov/pubs2013/2013165.pdf.

Institution Type Average Grant and Scholarship Aid

Private nonprofit 4-year colleges $14,800

Public 4-year colleges $5,850

Private for-profit 4-year college $4,000

Public 2-year colleges $3,200

http://nces.ed.gov/pubs2013/2013165.pdf


Average Total Aid by Incomefor Dependent Undergraduate Students in 2011-12

Source: National Center for Education Statistics, http://nces.ed.gov/pubs2013/2013165.pdf.

Income Category Average Total AidLess than $20,000 $16,400

$20,000-39,999 $17,000

$40,000-59,999 $16,700

$60,000-79,999 $16,100

$80,000-99,999 $16,200

$100,000 or more $16,300

http://nces.ed.gov/pubs2013/2013165.pdf


Applying for Aid Pell-Eligible Non-Applicants

Students eligible for Pell Grant who did NOT file the FAFSA

~1,700,000 students

Source: Student Aid Policy Analysis http://www.finaid.org/educators/20110118nofafsareasons.pdf

http://www.finaid.org/educators/20110118nofafsareasons.pdf


Applying for Aid Pell Dollars Unused

Estimated $ amount of Pell grants unused each year by NYC students who would be eligible if they filled out their FAFSA

~ $50 million

Estimation by Parthenon -based on number of college-going NYC students eligible for free/reduced lunch, but not applying for FAFSA


So, Why Don’t Students Apply?Reason for not

applying

Percent who chose this as a factor in

not applyingDidn’t want to take on the

debt 40.2%Forms were too much

work 18.9%No information on how to

apply 22.9%

No financial need 50.6%Thought Ineligible 60.7%

Source: Student Aid Policy Analysis http://www.finaid.org/educators/20110118nofafsareasons.pdf

http://www.finaid.org/educators/20110118nofafsareasons.pdf

Financial Aid Overview


Total Cost of Attendance

Tuition Mandatory Fees Health Service

Fees Room & Board

Travel Books Supplies Personal

Expenses

Direct Costs Indirect Costs


CUNY Baruch2013-2014 Total Cost of Attendance (no

dorm)Tuition $5,730Fees $ 225Books & Supplies $1,248Transportation $1,020Room and Board$1,918Food (Lunch) $1,148Personal Expenses $1,776

Total COA $13,065


SUNY Binghamton2013-2014 Total Cost of Attendance

Tuition $ 5,870Mandatory Fees $ 2,199Room & Board (average) $12,956Books/Supplies $ 1,270Personal $ 1,450Travel $ 990

Total COA $24,735


Syracuse University2013-2014 Total Cost of Attendance

Tuition $ 38,970 Subtotal

Fees $ 1,488 DirectRoom & Board $14,054 $54,512

Books and Supplies $ 1,360 SubtotalPersonal Expenses $ 960 IndirectTravel Costs $ 618 $2,938

Total COA $57,450


Expected Family ContributionEFC is the amount of money a student’s family can afford to pay toward one year of college, as determined by the U.S. Department of Education.

An EFC amount of $1,000 means that the student’s family will be expected to contribute $1,000 towards his education in that year.

Who pays the rest of the total Cost of Attendance?


Financial Need

“financial need”Colleges determine how much financial aid a student needs by subtracting the family’s Expected Family Contribution from the Cost of Attendance.

COA - EFC = Need $


Financial Need Joe Student has a federal EFC of

$1,000. What is his financial need at each

college?CUNY Baruch

SUNY Binghamto

nSyracuse University

If COA is… $13,065 $24,735 $57,450and EFC is… $ 1,000 $ 1,000 $ 1,000then Need is… $12,065 $23,735 $56,450


Defining Financial AidNeed is met by Financial Aid, which consists of:

Grants /ScholarshipsLoansFederal Work-Study


Where Does Aid Come From? Sources of

Aid Fin. Aid Form Types of Aid

Federal Government

FAFSA GrantsLoansWork Study

New York State Government (if NYS resident at a college in NYS)

TAP TAP GrantScholarships (special eligibilities)

Institution (college itself)

FAFSAProfile Institutional Forms

Grants (merit and need)Loans (less often)Scholarships

The RulesFirst Steps to Filing the FAFSA


Who Should File the FAFSA?Students eligible for federal financial

aid: US Citizens Permanent Residents (Green Card Holders) Refugees/Asylees Other humanitarian groups: Parolees,

Victims of Human Trafficking, and Cuban-Haitian Entrants

Students eligible for institutional aid ONLY: Student Visa Holders, F-1 or 2 Exchange Visitors, J-1 or 2 visa holders G-series visa holders


Who Should Not File the FAFSA

Undocumented Students


Who is Considered Independent ?

Students automatically independent Age 24 and over Married Graduate student Supporting dependents Are/have served in US Armed Forces In legal guardianship Orphan, foster care, ward of court after age 13 Emancipated minor Unaccompanied homeless youth

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Who is Considered Independent?

The following does not make a student independent

Parent refusal to provide financial info Student refusal to ask parents for info Student living on her own for several

years Student refusal to communicate with

parents


Circumstances for Independence

Documented Involuntary Dissolution of Family Abuse in family Abandonment Incarceration or institutionalization of both

parents Parents lack physical or mental capacity to

raise child

Dependency Override


Income Reported on FAFSA

Parent(s) income +

Student income

Student income+

Student’s spouse income

Independent StudentDependent Student


Who Is Considered a Parent

Biological or adoptive parents

Step-parents, if married to a biological or adoptive parent


Who Is Considered a ParentHere’s a hint to help you remember!

SIMBA S step- I if M married, B biological, or A adoptive


Who Is Not Considered a Parent

Grandparents Foster parents Legal guardians Siblings Uncles Aunts Family friendsUnless, they have legally adopted the

student.


Parent Income Recorded on FAFSA

Custodial Parent(s)- REGARDLESS of GENDER

Data Collected on FAFSA

Single legal parent 1 parentTwo legal parents who are married to each other

2 parents

Legal parent who is married to a stepparent

2 parents

Two legal parents who are not married to each other and living together

2 parents

NEW!

NEW!


Parent Income Recorded on FAFSA

For Divorced or Separated Parents: Report income of parent lived with most

If student lived with both parents equally, report income of parent who provides most financial support

If student is supported equally by both parents, use income of parent who makes the least

Remember: If the custodial parent is re-married, the step-parent’s income must also be reported.

Test Your Knowledge

Practice Situations

FAFSA

Financial Aid Applications


FAFSA Basics

www.fafsa.ed.gov or www.fafsa.gov

No deadline Online or paper versions Financial estimates Student and parent PIN

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Tuition Assistance Plan

www.HESC.ny.gov



TAP Facts Must file FAFSA before starting TAP List only one college at a time Independent definition different from

FAFSA Focuses on NYS income tax HESC will reach out for clarification Extra steps for undocumented

parents

The PROFILEwww.profileonline.collegeboard.com



PROFILE Facts Complete only for colleges requiring it Cost: $25 for first college, $16 each

additional Automatic fee waiver for low-income

students Includes 3 years of income Includes non-custodial parent College-specific questions More questions about assets Space for special explanations

Process


Where Do You Stand?

Scenarios


Tabitha dreams of living on campus for college. Her parents don’t want her to go away for school and told her they will not support her financially if she does. They are refusing to fill out the FAFSA, apply for a pin, or let her use their tax forms.

What’s your next step?

TABITHA


Tabitha has come to your office; she is very excited. She searched her parents’ bedroom and was able to find their taxes! She would like you to help her apply for her mother’s PIN and complete her FAFSA and TAP application.

Do you help Tabitha file for financial aid?

TABITHA continued…


77 average, 930 SAT (combined CR+Math), not eligible for EOP programs because parents’ combined income is $100,000.James informs you that his parents have decided to file their taxes separately this year and pretend they are separated so that James can say that he only lives with his mother, making him H/EOP eligible. James insists that you assist his family with the H/EOP financial documents and the FAFSA and TAP applications.

Do you help James file his H/EOP, FAFSA and TAP applications?

JAMES


Preeti has arrived for her first appointment with you.

She brought her transcript and SAT scores, but she only brought you mom’s taxes. As you speak with her, you note that her dad and her mom are still married and living together.

She tells you that her mom will be very angry that she told you about her dad. Her mom had been planning to report only her own income for financial aid.

What’s your next step?

PREETI

Action Planning


WHY IS FAFSA IMPORTANT?


Why help students file the FAFSA?In addition to receiving more financial aid, students who file the FAFSA are more likely to enroll in college.

Students accepted into a 4-year college and completing a FAFSA application by May, were more than 50% more likely to enroll than students who had not completed a FAFSA.2

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Research and Policy Support Group

2 http://ccsr.uchicago.edu/downloads/1835ccsr_potholes_summary.pdf


Why Help Students File the FAFSA?

Supporting students through FAFSA completion means more students will enroll in college the fall after high school.

2009 “H&R Block Experiment” found helping families with FAFSA increased student’s postsecondary enrollment by 29% *

* http://gseacademic.harvard.edu/~longbr/Bettinger_Long_Oreopoulos_Sanbonmatsu_-_FAFSA_experiment_9-09.pdf

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The Challenge: FAFSA Completion Students and families need direct

guidance, such as… Early awareness of the process Understanding of financial aid

opportunities Early notice of what is required Constant reminders and follow-up 1-1 support

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The Challenge: FAFSA Completion Common problems faced by school

staff: Access to financial information Understanding whose information

to include Misunderstanding purpose of

FAFSA Lack of training or systems

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Effective School-Level FAFSA Strategy

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• Which staff will lead the work? • When and where will they be trained?

TRAINING


Round One: Training and Outreach What is our 9th-12th grade schedule

of financial aid activities? Who is involved, and how are they

trained? How do we use external partners? In what areas are we most successful

right now? How do we know? (How is success

measured?)


Round Two: Completion What systems do we have in place to

track completion?

What are the strengths of those systems?

Where are the gaps – which students are not completing FAFSA?


Round Three: Next Steps

What concrete actions can I take to support all students in my school to complete the FAFSA?


Good Afternoon! Please drop off your Post Survey and Evaluation before leaving.

Financial Aid Counseling I: The Application Process

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Transcript of Financial Aid Counseling I: The Application Process