What YouNeed to Know

About Financial Aid

Topics We Will Discuss Tonight• What is financial aid?• How do you apply? Forms? Deadlines?• How is eligibility determined?• Expected Family Contribution• Need• Types and sources of financial aid• Financial aid packaging; Comparing offers• Special circumstances; Appeals• Consumer issues

What is Financial Aid??Generally speaking, financial aid includes all

funds made available to students that are not provided by their family

Federal, state, institutional, privateGrants, scholarships, loans, work

What Forms are Required and When?Free Application for Federal Student Aid

(FAFSA)Institutional aid applicationCollege Board Profile FormVerification (Federal and State)Tax DocumentationBusiness SupplementNon-Custodial Parent informationKNOW YOUR SCHOOL’S REQUIREMENTS!

Expected Family Contribution (EFC)Amount that a family can be reasonably

expected to contributeIncludes parent and student contributionFederal EFCInstitutional EFCEFC Calculator: Available on College Board

web site

Deadlines FAFSA can be filed any time on or after

January 1st for the academic year that begins the following September

You MUST pay close attention to each school’s preferred deadline

DO NOT MISS DEADLINES

FAFSA TipsFile FAFSA on-line; www.fafsa.ed.govEstablish a User Name and PasswordIRS Match; initial application or updateNJHESAA Supplemental QuestionsList a New Jersey school firstStudent Aid Report (SAR)Big changes for the 2017-2018 academic

year: Prior, Prior Year.

FAFSA – Common ErrorsSocial Security NumbersDivorced/remarried parental informationUntaxed incomeUS taxes paidHousehold sizeNumber of household members in collegeReal estate and investments net worth

How Eligibility is DeterminedCost of Attendance (COA)Expected Family Contribution (EFC)Federal EFC vs. Institutional EFCDifferences in need assessment, public vs.

private collegesSpecial Circumstances

Need

Cost of Attendance- Expected Family Contribution= Financial Need

Types of AidScholarshipsGrantsLoansStudent Employment

ScholarshipsMoney that does not have to be paid backAwarded on the basis of academic, artistic,

athletic or other merit

GrantsMoney that does not have to be repaidUsually awarded based on need

Loans

Must be repaidFederal LoansPrivate LoansTerms vary significantlyBorrow only what is neededEducation is a good investment

Student EmploymentJob on or off-campusReceive a paycheckTypically cannot be applied to the bill

Sources of Financial AidFederal governmentState governmentInstitutionalPrivate sources

Federal GovernmentLargest source of assistanceAid awarded primarily on the basis of needMust apply each academic year by filing the

Free Application for Federal Student Aid (FAFSA)

Federal ProgramsFederal Pell GrantFederal Stafford Loan ProgramPLUS Loan ProgramCampus-Based Programs

o Federal Supplemental Educational Opportunity Grant (SEOG)

o Federal Perkins Loano Federal Work-Study

State of New Jersey ProgramsTuition Assistance Grant (TAG)Educational Opportunity Fund (EOF) GrantNJSTARS I and IINJ CLASS Loan Program

Other SourcesFoundations, businesses, charitable

organizations, employersStart research early; free internet search www.fastweb.comhttps://bigfuture.collegeboard.org/scholarshi

p-searchhttp://www.scholarships.com/High school guidance office

Financial Aid PackagingEntitlement/formula driven awards

o Pell Grantso Tuition Aid Grants (TAG)

Federal Stafford LoansOther Federal aid programs

o Campus-Based Federal aid programsInstitutional Aid

Financial Aid PackagingInstitutional grants and scholarships; Need-

Based or Merit-BasedSchools meeting full needDifferential/Preferential aid packagingNeed gapsWhat is your bottom line?Difficult decisions

Additional ResourcesFederal Parent Loan (PLUS)New Jersey CLASS LoanPrivate lendersPayment plans

AppealsNeed-based; make your case, remember who

you are speaking withMerit-based; be sure you have a caseDisclosing offers from other schoolsSet the right tone; do not use the word

“negotiate.”

Consumer IssuesRenewability of awarded aido Need? What happens if need increases after

year one?o GPA requirements?Treatment of outside scholarshipsScholarship scamsUse of consultantsAward Letters

Where to Start?https://bigfuture.collegeboard.org/college-

search

Questions