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04/10/23 1
PayingPayingfor Collegefor College
Presented byMary Snyder
EdFund
04/10/23 2
Basis of Federal, State, College and University
Financial Aid Programs and Calculations:
It is the family’s responsibility to pay for higher education expenses to the extent they are able.
“Financial aid” programs have been designed to make up the difference between
the family’s ability to pay for college and
the cost of a college education.
High school diploma or GED Social Security number Selective Service registration U.S. citizen/ eligible non-citizen status Admitted and enrolled as a student
Not have recent conviction for drug crimes
Additional requirements (e.g. meet deadline)
In future years: Make Satisfactory Academic Progress (SAP)
Forms & Forms & TimelineTimeline
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Web site: www.pin.ed.gov
Sign FAFSA electronically
Can request PIN before January 1, 2010
Not required, but speeds processing
May be used by students and parents throughout aid process, including subsequent school years
Application Process Applying for Aid
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Application Processing FAFSA on the Web (FOTW)
www.fafsa.ed.govwww.fafsa.ed.gov
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• Registration Guide
– No paperregistration or form
https://profileonline. collegeboard.com/prf/index.jsp
– 2-step process
• $9 online registration
• $16 per school
Application Process CSS Financial Aid PROFILE
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Timeline of Financial Aid Forms
• CSS/ Financial Aid Profile (school option)–As early as October 1 of the senior year
• Free Application for Federal Student Aid . . . FAFSA on the Web (FOTW)–Beginning January 1 of the senior year
• Cal Grant GPA Verification Form– By March 2 of the senior year
• FAFSA completed by March 2 of the senior year (or earliest school deadline)
• Student Aid Report (SAR) received by student and institution
• Financial Aid Award Letters sent to students between February and April
• Funds released to student beginning of fall term
Aid is disbursed equally over semesters/quarters
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Biological or adoptive Living and married to each other
◦ Answer questions about both parents Widowed or single
◦ Answer questions about that parent Divorced or separated
◦ Custodial parent Stepparent
◦ Regardless of prenuptial agreement
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A student is dependent unless s/he can answer
“yes” to any of the following questions:◦ 24 years of age or older?
◦ Married (as of the day student completes the FAFSA)?
◦ Working on master’s or doctorate program?
◦ Veteran of the armed forces or currently serving on active duty?
◦ Dependent other than a spouse for whom a student provides more than half of the support?
◦ Are, or were, in foster care or were a ward or dependent of the court at any time when you were 13 or older?
◦ Are, or were, an emancipated minor or in a legal guardianship as determined by the court in your state of legal residence?
◦ Are a self-supporting unaccompanied youth who is homeless or at risk of homelessness?
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Overrides are granted based on special circumstances , child abuse, abandonment, etc.
These do not qualify as “unusual circumstances”
Parents refuse contribution to education Parents unwilling to provide information on
the application or for verification Parents not claiming the student as a
dependent for income tax purposes Student demonstrating total self-sufficiency
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Calculating Calculating “Need”“Need”
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Income and assets reflect family‘s financial strength
Exclusions include: retirement accounts, home equity
Similar treatment for similar circumstances
Unusual family circumstances are considered
Accept present financial situation
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Basic Equation of “NEED”
Cost of Attendance (COA)
-- Expected Family Contribution (EFC)
= Student’s Financial Need (Eligibility)
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Cost of Attendance (COA)
Standard allowable costs:Tuition and fees Room and board Books and supplies Transportation Misc. personal expenses
Additional allowable costs: Dependent care Study-abroad Disability-related Student loan fees Employment expenses for co-op study
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Expected Family Contribution (EFC)
• Calculated from information provided on the FAFSA
• Families are evaluated by their present financial situation
• Parents are responsible for helping to pay for a dependent child’s
education• Students share the responsibility of helping
pay for their educational costs
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EFC Calculatorswww.finaid.org
Click on CalculatorsClick on Expected Family Contribution and Financial Aid Calculator
www.FAFSA4caster.ed.gov
www.Collegeboard.com Under “For Students”Click on Pay for CollegeClick on Financial Aid Easy Planner
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EFC EFC
COA(variable) - EFC
(constant) = Need(variable)
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Private 4-year
COA $39,596- EFC $1,000
= Need $38,596
Private 4-year
COA $39,596- EFC $1,000
= Need $38,596
Public 4-year COA $22,953
- EFC $ 1,000 = Need $21,953
Public 4-year COA $22,953
- EFC $ 1,000 = Need $21,953
Public 2-year
COA $16,068- EFC $1,000
= Need $15,068
Public 2-year
COA $16,068- EFC $1,000
= Need $15,068
Need and Eligibility Depend on Cost
Fall Spring TotalPell Grant 1,300 1,300 2,600State Grant 500 500 1,000School Grant 1,188 1,187 2,375FSEOG 2,000 2,000 4,000Scholarship 700 700 1,400Work Study 1,500 1,500 3,000Perkins 1,500 1,500 3,000Stafford 1,312 1,313 2,625Total 10,000 10,000 20,000
Cost of Education $24,000EFC $ 4,000Need $20,000
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Types ofTypes ofFinancial AidFinancial Aid
Types ofTypes ofFinancial AidFinancial Aid
Types of Financial Aid Categories
Gift AidGift Aid
• Grants
• Scholarships
Self-Help AidSelf-Help Aid
• Work-Study
• Loans
Financial Aid is any money given, paid or loaned to help pay for education.
Financial Aid is any money given, paid or loaned to help pay for education.
COLLEGE
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• Federal government
• State agency/government
• Colleges and universities
• Private agencies, companies, foundations and parents’ employers
Types of Financial Aid Sources
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• Federal grants (Pell, FSEOG, ACG, SMART)
• Cal Grants (A, B & C)
• Federal Subsidized Stafford loan
• Federal Perkins loan
• Federal Work-Study
• Some institutional scholarships and part-time employment programs
Types of Financial Aid Need-Based Aid
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• Some institutional scholarships, includingathletic and merit-based scholarships
• Some private-sector scholarships
• Federal Unsubsidized Stafford/Direct loan (student)
• Federal PLUS loan (parent)
• Some institutional part-time employment programs
Types of Financial Aid Non-Need-Based (merit) Aid
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• Not Federal aid• Also known as “alternative” loans• Credit- and income-based loan
– May require a co-signer
• Loan fees and interest rate usually higher than Stafford or PLUS loan
– Lender assumes the risk of default
Private Loans
Types of Financial Aid – SELF-HELP
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Circumstances and Appeals
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Financial Aid Can ChangeFrom Year to Year
Number in household or college change
Divorce, marriage, death
Family income or assets dramatically change• parent loses job• parent no longer receives child support • parent receives bonus or vacation buy-out• parent retires or gets a promotion-salary increase• parent cashes out on retirement program
• someone wins the lottery!
• What forms does the college require?
• What are the deadlines for applying?
• Is there a separate process for scholarships?
• Does the college offer merit-based scholarships?
• How does the college apply outside scholarships?
• Does the college package to “need”?
Questions to Ask Colleges
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Apply for financial aid even if you think you won’t qualify or won’t get enough
Apply each year; aid is for 1 year at a time Complete your tax returns ASAP Read the instructions and call with questions Meet all deadlines; get a certificate of mailing
Keep separate files for each school Keep copies of everything; keep notes of
conversations & actions Open and read all correspondence immediately Submit appeals directly to the college FAO
In person◦ Your school (FAFSA Workshop for seniors)◦ California Cash for College workshops (Jan. &
Feb.)
◦ www.californiacashforcollege.org Online at www.fafsa.ed.gov
◦ Click on the Live Help button Phone: 800.433.3243
◦ M-F until 9:00 pm Pacific Time ◦ Extended weekend hours
Federal Aidfafsa4caster.ed.govstudentaid.ed.govpin.ed.govfafsa.ed.gov
CA State Aid csac.ca.govcalgrants.orgcaliforniacashforcollege.org
Scholarshipsfastweb.comcollegeboard.com
College Planninggoing2college.orgcollegeispossible.orgknowhow2go.orgmappingyourfuture.orgcollege.gov
Other edfund.orgstudentdebthelp.orgfinaid.orgstudents.gov
