Top 10 Things to Know About Financial Aid for

College

Jerry Cebrzynski

Director of Financial Aid,

Lake Forest College

College cost “planning”

What exactly is financial aid

The financial aid “language”

Application process in a nutshell

How eligibility is determined

How a College can help

Timeline

Your next step

Choosing a CollegeBest Fit

► Program

► Location

► Size

► Mix of Students

► Academics

► Extracurricular

► Facilities

► Financial

Considerations

In the News

Current College Costs2011-2012

Average Tuition, Fees, Room, Board

• 4 Year Public: $17,000

• 4 Year Private: $35,000

Average personal expenses [clothing, laundry, toiletries, recreation, entertainment] = $2,000

Books = $700 - $1,000 per year

Direct costs vs. Indirect Costs

►Direct costs = on tuition invoice Tuition, fees, housing, meal plan

► Indirect costs = related educational expenses Books, supplies, transportation, laundry, …

►COA should reflect direct and indirect expenses

1. Cost of attendance (COA) should not be a mystery

Sticker Pricevs.

After Financial Aid/Scholarship Price

Net Price Calculator

New!

Net Price Calculators

►Online, College-specific estimator

►Average grant/scholarship available to a family like yours

►Average student loan and work-study eligibility

►Estimated award is not a promise, a guarantee, or an actual aid offer

►To the extent they are able, parents have primary responsibility to pay for their dependent children’s education

►Students also have a responsibility to contribute to their educational costs

►Families should be evaluated in their appropriate financial condition

►A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect its ability to pay

2. Financial Aid is “A Partnership”

► Committed to removing financial barriers

►an advocate for the student at all levels

► Educates students and families through quality

consumer information

► Provides services that do not discriminate

► Maintains the highest level of professionalism

The Financial Aid Office

3. What is Financial Aid?

► Scholarships

► Grants

► Student Loans

► Work-Study

Four major sources of funding

CollegePrivate

Organizations

Federal State

Two Categories of Financial Aid

From College as well as from foundations, etc. Specific criteria eligibility Solely based on student’s credentials

Calculated from FAFSA and other aid applications Sources can be federal, state, institutional Types include grants, student loans, work-study

Merit-based

Need-based

4. Everyone should apply for aid

►Many types and sources of aid are available

►On the fence? 67% of all students receive aid [88% at

private colleges

Sometimes being rejected for federal aid is a prerequisite for receiving private awards

So . . . how does the process begin?

The FAFSA collects basic financial data is used to determine the student’s

eligibility by calculating an “index” #

5. To apply for all federal and state aid, families must

complete the...

Overview of the FAFSA

► 2012-2013 available January 1, 2012

► FAFSA.GOV

► 7 Steps

► Signed and submitted

electronically

FAFSA on the Web (FOTW)

English or Spanish

Skip logic and online editing

Electronic signature

E-mail notification

19 million (99%) FOTWs processed 11/12 so far

FAFSA on the Web Worksheet

4-page booklet containing:

► Instructions

► 24 questions in 4 sections

FAQs► Estimate 2011 income on FAFSA; adjust later► Divorced, separated, single parents► Assets included

Savings, stocks, other real estate 529 Plans

► Assets not included Home equity Retirement accounts Insurance policies, annuities

► One FAFSA per student► Renewal of Aid

Option to Access IRS Information

23

IRS Data Retrieval

Supplemental Financial Aid Applications

► The College Scholarship Service Financial Aid PROFILE

► A College’s own application for financial aid

6. Special Circumstances Matter

►When the numbers don’t tell the whole story

►When the situation is expected to change (or has)

►Must be able to document

►consideration will vary from school to school

Special SituationsSpecial Situations

Examples of items not on the FAFSA:► income change (work, child support, SSBs, etc)► large healthcare costs► some educational costs► support of extended family► significant non-elective home repairs► consideration will vary from school to school► check with financial aid office for “how to”► provide #s and explanation, and daytime phone

Cost of Attendance

Family’sContribution

FinancialNeed- =

How much aid can a student receive?

Financial Need

7. The Financial Aid Award Letter

(or “package” )

Will contain a combination of• scholarship, grant, loan and work-study funds

Why might “packages” be different?• cost of attendance • scholarship criteria and availability • institutional philosophy and funding • federal funding levels

Decoding the Award Letter

Compare► COA

► Total amount of aid

► Types and sources

Ask questions► Is aid renewable?

► Terms for renewing?

► Will aid change from year to year?

► Will costs increase?

► Is more aid available if EFC decreases?

8. Appeals

►Can request change in aid if there is a valid reason

►Will it make a difference?

Is need already fully met? Is more aid available?

►Valid reasons

Special circumstances

9. Deadlines are essential

Timeline► Complete FAFSA after January 1

► Receive a Student Aid Report (SAR) 48-72 hours later

► Review SAR for correctness

► Check if other additional application required or beneficial

► Receive Financial Aid Award Letter before May 1

10. Ask for

Right here at LZHS A College’s Financial Aid Office The Internet

www.collegezone.com

www.finaid.org

www.studentaid.ed.gov

College Web Sites

Scholarship and Financial Aid Search Services

► Beware of scholarship scams (consultants,

seminars)

► Same goes for Financial Aid “Advisors”

► FAFSA.com not the same as FAFSA.gov

► WWW.FINAID.ORG

► Never pay for a service you can do

yourself, and for free!

Financial Aid Questions to Ask a College

ACM.EDU