FINANCING YOUR COLLEGE EDUCATION. Agenda Introduction What is Financial Aid? Types of Financial Aid...
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Transcript of FINANCING YOUR COLLEGE EDUCATION. Agenda Introduction What is Financial Aid? Types of Financial Aid...
FINANCING YOUR COLLEGE EDUCATION
Agenda
• Introduction• What is Financial Aid?• Types of Financial Aid• Free Application for Federal Student Aid
(FAFSA)• Scholarship Resources• Saving for College• Conclusion
Can I Afford a College Education?
YES! A college education is the most important investment you can make in your future. Earning a bachelor’s degree or associate’s degree will open doors for you and can increase your earning potential throughout your life.
24,30033,800
39,700
42,000
55,700
67,300
91,900
100,000
Salaries vs. Education
No HS Diploma
HS Diploma
Some College
Associate Degree
Bachelor's Degree
Master's Degree
Doctoral Degree
Professional Degree
What is Financial Aid?
• Financial Aid = money provided to students to help pay for post-secondary educational expenses– Grants: free money, usually financial need required– Scholarships: free money, some skill/merit-based– Loans: money that must be paid back– Employment Opportunities: opportunity to earn
money for college expenses/pocket money
Sources of Financial Aid
• Federal government• State programs (e.g. NY State)• Institutional funds• Outside agencies/organizations
Types of Financial Aid
• Need-based– Money given because student has need. Includes:
• Grants (free money)• Scholarships (free money)• Loans (money that must be paid back)
• Merit-based– Scholarships given because of skill such as:
• Academics• Athletic• Others
Cost of Attendance (COA)
• Direct Costs: tuition, required fees, room, meals, books & supplies
• Indirect Costs: transportation, miscellaneous personal expenses, study abroad expenses, dependent care expenses, disability-related expenses
• COA = direct + indirect costs• Varies widely from college to college
Expected Family Contribution (EFC)
• EFC appears on the Student Aid Report (SAR).• This number results from the financial
information you provide in your FAFSA.• EFC is an amount the student can reasonably
be expected to contribute.• This number is used to determine your eligibility
for federal student financial aid.
What is Financial Need?
• COA = direct + indirect costs• EFC = family contribution• Calculated using data from the FAFSA and a
federal formula
Cost of Attendance
(COA)
Expected Family
Contribution
(EFC)
Financial Need
Types of Grants
• Federal Grants (Annual)– Pell Grant: up to $5,775– Federal Supplemental Educational Opportunity Grant
(FSEOG): $500 to $5,165• New York State Grants (Annual)
-Tuition Assistance Program (TAP): $500 to $5,165
-Aid for Part-Time Study (APTS)
Federal Work Study
• Provides part time jobs for undergraduate and graduate students with financial need
• Students are placed in jobs on or off-campus• Paid by hour and the amount you earn cannot exceed
your total Federal Work-Study award• Must be enrolled in at least 6 credits
*File early – funds are limited*
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TAP (Tuition Assistance Program)
• TAP (Tuition Assistance Program) - New York State grant
• 4 year limit (no more than 8 full-time semesters)
• Special program (e.g. SEEK 10 semesters)
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Federal Education Loans • Loans for Students
– Direct Subsidized Loans (need-based)• 1st Year = $3,500, 2nd Year = $4,500, 3rd/4th Years = $5,500
– Direct Unsubsidized Loans (not need-based)• 1st Year = $5,500, 2nd Year = $6,500, 3rd/4th Years = $7,500
Loans for Parents– PLUS Loans (must meet credit standards)
• Amount = COA – Student’s Financial Need• Parents responsible for repayment (begins 60 days after last
disbursement)
Federal Education Loans
Direct Subsidized Loans
2.0 GPA/at least 6 credits
You don’t have to pay interest while in school at least half-time (6 credits or more).
Interest rate 4.29%
Direct Unsubsidized Loans
3.0 GPA/at least 6 credits (graduate)
Must pay interest while you are in school
Interest rate undergraduate 4.29% graduate 5.84%
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Federal Education Loans• Direct PLUS Loans – Loans for Parents of dependent
undergraduate students to help pay for education expenses not covered by other financial aid.
• Parents responsible for repayment (begins 60 days after last disbursement)
• Graduate PLUS Loans - Made to graduate or professional students.
• Credit Check is conducted for eligibility
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Who is Eligible?
General Eligibility for Student Aid• Have high school diploma or it’s equivalent• Be enrolled or accepted for enrollment as a regular student working toward
a degree OR certificate in an eligible program• Be a U.S. citizen or eligible non-citizen (i.e. permanent resident/political
asylum)• Registered with Selective Service (for all males between 18-25)• Transfer students must be in good Financial Aid standing with your loans• A legal resident of New York state for state aid • Enrolled as a full-time student taking 12 or more credits (applicable toward
your degree program) per semester for state aid• Students must be in good academic standing for both federal & state aid
Free Application for Federal Student Aid (FAFSA)
• A standard form that collects demographic and financial information about the student and family
• Required for all types of federal aid• FAFSA on the Web (www.fafsa.ed.gov)
– English & Spanish• Available January 1st – the earlier you apply, the better
the chances – we recommend Feb. 15th • Colleges may set FAFSA filing deadlines• Queens College Code: 002690
Dependency Status• If a student meets any of the following criteria,
they are considered Independent for Aid Eligibility:
• Foster Care (ages 13 or older)• Orphan/Ward of the Court
– a student with both parents deceased– If orphaned by 13 or older and subsequently adopted, student is
considered independent– Court has assumed legal custody of a student, not due to
incarceration
• Legal GuardianshipIn all cases, documentation is required. These students qualify for the
Federal Pell and NYS Grants.
FAFSA on the Webwww.fafsa.ed.gov
• Apply• Reapply• English and Spanish
options• Access FSA ID Website• Check status of
application• View Student Aid Report
(SAR) information• Make corrections
Method to file FAFSA Data• File the FAFSA data utilizing the IRS Tax Data
Retrieval Tool Process.• It is most advisable that students use this
method to supply tax information for themselves and/or parents to lessen their chances of being selected for verification.
New York State Aid Programs• Tuition Assistance Program (TAP)
– Available to NY State residents attending a college or university in NY State
• To Apply for TAP– Complete FAFSA on the Web– Express TAP Application Link will be available on
FAFSA “Confirmation Page”– Look for red heading “New York Residents Only.”– If you miss TAP link, a reminder will be sent to your
email address or you can go to www.hesc.ny.gov– Queens College Code : 1416
Institutional Financial Aid
• Grants from College– Awarded annually– Award based on “Financial Need”– Determine Renewability
• Scholarships from College– Academic Merit & Financial Need– Academic Merit Only– May Require Separate Scholarship Application
• Ask the financial aid office for details on their available programs!
Scholarship Resources
For a list of reputable scholarship searches, go to:• www.newvisions.org/scholarships-for-new-york-city-
students– Scholarships for NYC and NYS students
• www.fastweb.com– Scholarships and fellowships are identified based on
background and profile• www.finaid.org• Dream Scholarship – www.thedream.us• United Negro College Fund - www.uncf.org
Saving for College
• New York 529 College Savings Plans (www.nysaves.org)– Tax-free earnings if used on qualified expenses*, otherwise tax + 10%
penalty
– State deduction up to $5,000 ($10,000 for joint filers) per year
– Direct deposit of $25/$15 per pay period, up to $375,000 overall contribution
– Direct Plan (recommended, lower cost at 0.49%) vs. Advisor Plan
– Transferrable to beneficiary’s family
– Balances in 529 plan do not affect eligibility for state grants
Saving for College (continued)
• Coverdell Education Savings Account– Tax-free earnings if used on qualified expenses*, otherwise tax + 10%
penalty
– Limit $2,000/year/child, up until the child reaches age 18
– Must be used by age 30, or transferred to another family member
– No limit on type of investment & can be used for primary/secondary education
– Cannot use Coverdell while taking Hope/Lifetime Learning Credit
– Extension of current provisions beyond 2010?
• US Savings Bond– Tax-free earning for state
– Tax-free earning for federal if used to pay tuition & fees
Conclusion• Don’t wait until you are admitted to file the FAFSA.• Apply to colleges by earliest possible deadline.• Complete all questions accurately.• Estimate if necessary to meet early deadlines.• You must RE-apply for financial aid each year.• Know what your school’s priority and deadline dates
are.• Keep copies of all documents for your records.• Beware of scams.• Filing for FAFSA is FREE.
Thank you!