Student Financial AidWhat High School Seniors & Parents Should Know

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What is Financial Aid?

• Financial aid helps pay the cost of attending college

• Some financial aid programs are need-based

• Some financial aid programs are based on other criteria – not need

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Sources of Financial Aid

• Federal government• New York State• Colleges – Institutional aid• Other sources

– Businesses– Foundations– Clubs/Organizations

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Types of Financial Aid Awards

• Scholarships – free money• Grants – free money• Work Study• Loans

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Need-based Financial Aid

• Need-based Aid– Your family’s ability to pay for educational

costs is evaluated– Determined from information collected on

need-based aid applications• FAFSA, CSS Profile

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Definition of Need

Cost of Attendance (COA)

– Expected Family Contribution (EFC)

= Financial Need

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Cost of Attendance (COA)

Tuition and feesRoom and boardBooks and suppliesTransportationMiscellaneous expenses

COA – EFC = Financial Need

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Expected Family Contribution (EFC)

• Calculated using a federal formula • Includes contributions from parents and

student• Stays the same regardless of college

selected

COA – EFC = Financial Need

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Examples of Need Determination

College A

College B

College C

COA $ 15,000 $30,000 $60,000

- EFC 10,000 10,000 10,000

= Financial Need $ 5,000 $ 20,000 $50,000

Aid Programs & The Application Process

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How to Apply for Federal Aid

• The newest FAFSA application is made available January 1st of senior year

• Filing online at www.fafsa.gov is highly recommended!– Worksheet includes built-in edits

– Skip-logic for faster filing

– Check status, make corrections online

• Be sure to check your colleges’ FAFSA filing deadlines

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FAFSA.gov

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FAFSA: Federal Student Aid Programs

• Pell Grant• Supplemental Educational Opportunity Grant• Work-Study• Perkins Loan• Direct Stafford Loan

– Subsidized or Unsubsidized

• Direct PLUS Loan

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FAFSA: Creating an FSA ID

• Go to FSAID.ed.gov to establish FSA IDs for both the student and a parent

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FAFSA: Income Information Needed

– Student, Parent Income Tax Information• 2015 Federal 1040/AEZ, 2015 W-2• Can use prior year taxes as estimate

– Records of untaxed income• Such as child support received, interest income

– Information on cash, savings and checking account balances

– Investments, including stocks, bonds, real estate• Excludes retirement accounts, value of primary residence

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FAFSA: Student Section

• Student Information & Eligibility– Basic info: address, email, name of high school,

citizenship and Selective Service Status

• College Information– Up to 10 colleges may be listed; can be updated by

correction

• Dependency Determination– Questions that will determine student’s dependency status

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FAFSA: Parent, Income, Signature Section

• Parent Information & Income– Marital status, name, date of birth, SSN, state of residence– Household size, Number in college– Income from 2015 tax return (or estimate), untaxed income,

asset information

• Student Income• Signature Section

– Sign using the student and parent’s FSA ID

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FAFSA: The IRS Data Retrieval Tool

• Connects to IRS for tax data of completed tax returns

• Electronic filers – about 2 weeks after submittal

• Use for original FAFSA and corrections

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FAFSA Questions: Eligibility

• If we don’t think we qualify for need-based financial aid, do we still file the FAFSA?– Many families mistakenly believe they do not

qualify– FAFSA must be filed to borrow federal student

loans– Consult with colleges, FAFSA may be needed

for merit-based aid

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FAFSA Questions: Dependence

• Can a student apply for financial aid without reporting their parent’s information?– In most cases, students under 24 will be

required to report parent information– For special circumstances, consult with the

financial aid office

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FAFSA Questions: Parents

• If a student’s parents are divorced or separated, whose info is provided?– Custodial Parent

• What if both biological parents are living together but unmarried?– Both parents file together

• Do stepparents report their income?– Yes

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FAFSA Questions: Assets

• Do you report your home value or retirement accounts on the FAFSA as an asset?– No, your primary residence and tax deferred

retirement accounts are excluded from FAFSA

• How are 529 college savings plans treated?– The value of 529 Plans, for all children, need to be

reported as a parent investment on the FAFSA

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How to Apply for New York State Aid

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Anytime TAP-on-the-Web Application

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NYS Student Aid Programs: TAP

• Tuition Assistance Program (TAP)– Undergraduate students only – Up to $5,165/year– Full-time and part-time study in NYS– Need-based grant

• Calculated on NYS Income Tax information

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Other NYS Student Aid Programs

• Scholarships for Academic Excellence• Achievement & Investment in Merit Scholarship

(AIMS)• STEM Incentive Program• Math & Science Teaching Incentive Program• Masters-in-Education Teacher Incentive Scholarship• Veterans Tuition Award

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NYS Student Aid Programs: STEM

• NYS STEM Incentive Program– Awards full in-state tuition scholarship at

SUNY/CUNY colleges or universities– Graduating seniors ranked in top 10% of class– For undergraduate programs leading to a degree in

Science, Technology, Engineering or Mathematics– Must execute service agreement– Apply online at hesc.ny.gov after graduation

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Apply for Other NYS Programs at hesc.ny.gov

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How to Apply for Institutional Aid

• Depends on application process at the college– Some colleges use information on the admissions

application to determine eligibility for merit-based awards– The FAFSA may be used by the college to determine

eligibility for need-based institutional aid

• May require more applications than the FAFSA– Is the CSS Profile or another institutional financial aid form

required?

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The CSS Profile

• Private application used by some colleges for awarding institutional aid

• Collects more income, asset, expense info than FAFSA– Non-custodial parent income, retirement account balances,

home values, etc.

• Application is not free, fee waivers are available• Apply starting October 1st of senior year online at collegeboard.org

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CSS Profile @ collegeboard.org

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Research College Financial Aid Websites

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Use Net Price Calculators

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Other Sources: Outside Aid

• Private scholarship programs are widely available– sponsored by charity, business, religious, civic and minority

organizations

• Each have their own application process, eligibility criteria, and deadlines

• Inquire with each college about impact on financial aid package

• Be organized and start applying early!

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Scholarship Searching

• Online scholarship search websites– Fastweb.com– Collegeboard.org– Scholarships.com

• Check your local library, employer or union• Avoid scholarship scams

– Unnecessary fees, ID theft

Next Steps

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Special Circumstances

• Colleges do address changes to income that can affect financial aid applications– Unemployment, divorce/separation, other loss of income

• Follow college’s policy for review– Many have a designated form, process

• When addressing special circumstances:– Provide written explaination with supporting

documentation

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After Applications are Filed…

• Schools student listed on FAFSA receive an electronic record

• Schools begin financial aid packaging process– Student may be required to provide additional

documentation at this time

• When processing is finished, an award letter is sent to student

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Financial Aid Award Letter

• College award letter contains– Amount of federal aid for which students are

eligible, including loan options– Amount of state aid for which students are

eligible– Institutional aid

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Aid Appeals & Reconsideration

• Follow college’s policy– Some colleges do not consider appeals

• When appealing:– Use personal appeal letters– Make wise comparisons between colleges and

their aid offers– Be realistic!

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Thank You!NYS Higher Education Services Corporation

99 Washington AvenueAlbany, NY 12255www.hesc.ny.gov

1-888-NYSHESC (1-888-697-4372)