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The Changing Landscape of Financial Aid
2014 SUNY College Fairs OpInform 2014
TOPICS
1. What’s new in financial aid2. How is financial need determined?3. Sources and types of financial aid4. Reviewing award letters5. SUNY SmartTrack
2014 SUNY College Fairs OpInform 2014
Federal Changes for the Coming Year
Interest Rates Defense of Marriage Act/Parental Information 150% Subsidized Loan Limit College Choice Tools
2014 SUNY College Fairs OpInform 2014
Federal Changes for the Coming Year Annual fixed rates based on 10 Year T-Bill plus add-on
Subsidized and unsubsidized loans (undergraduates): Add-on of 2.05% with cap of 8.25% PLUS loans (parent and grad/professional): Add-on of 4.6% with cap of 10.5%
2014 SUNY College Fairs OpInform 2014
Federal Changes for the Coming Year FAFSA must include income of both the
student’s legal parents (biological or adoptive) if the parents are living together, regardless of the parents’ marital status or genders
Mother and Father labels will change to Parent 1 and Parent 2. Help text will be significantly enhanced to provide guidance for parents who file separate tax returns
2014 SUNY College Fairs OpInform 2014
Federal Changes for the Coming Year
Limit on how many years a “first-time borrower” may receive subsidized loans
Students’ maximum time to receive subsidized loans is established based on the length of the program in which the student is enrolled - cannot exceed 150%
For first-time borrowers after July 1, 2013
2014 SUNY College Fairs OpInform 2014
Federal Changes for the Coming Year
College Affordability and Transparency Centerhttp://collegecost.ed.govCollege NavigatorCollege and Affordability transparency listState spending list
Shopping sheet
2014 SUNY College Fairs OpInform 2014
2014 SUNY College Fairs OpInform 2014
New York State Updates for the Coming Year
TAP increase to $5,165 TAP max for students in foster care
2014 SUNY College Fairs OpInform 2014
How Much Does College Cost?
Cost of Attendance (COA) Includes:1. Tuition and fees2. Room and board3. Books and supplies4. Transportation5. Miscellaneous personal expenses
2014 SUNY College Fairs OpInform 2014
How Much Does SUNY Cost?
Baccalaureate Degree Program 2014-2015NY State Resident Living On-Campus
Source: SUNY Office of Student Financial Aid, System Administration
Tuition and fees: $7,582 ($6,170 & $1,412)
Room and board: 12,020Books and supplies: 1,270Transportation: 1,020Personal expenses: 1,450Total Budget: $23,342
2014 SUNY College Fairs OpInform 2014
How Much Does SUNY Cost?
Associate Degree Program 2014-2015NY State Resident Living On-Campus
Source: SUNY Office of Student Financial Aid, System Administration
Tuition and fees: $4,646 ($4,076 & $570)
Room and board: 9,730Books and supplies: 1,320Transportation: 1,280Personal expenses: 1,110Total Budget: $18,086
2014 SUNY College Fairs OpInform 2014
How is Financial Aid Determined?
Estimated Family Contribution (EFC) is determined by:
Parents’ income and assets - primary home value excluded Student’s income and assets Size of family Age of parents Number of children in college
COA minus EFC = Need
2014 SUNY College Fairs OpInform 2014
Sources and Types of Financial Aid
2014 SUNY College Fairs OpInform 2014
Sources and Types of Financial Aid: Scholarships
Private scholarship searchAt your college of interestFree internet scholarship searches
www.fastweb.com www.studentaid.ed.gov
Local library resourcesLocal businesses and civic organizations (including professional associations) related to student’s field of interestParents’ employers/unions
2014 SUNY College Fairs OpInform 2014
Sources and Types of Financial Aid:Major Grant Programs
PELL Grant Must have EFC between $0 - $5,157 Maximum annual award $5,730
NYS TAP Grant Based on NYS net taxable income Maximum annual award $5,165
2014 SUNY College Fairs OpInform 2014
Sources and Types of Financial Aid:Federal Work Study
Based on financial need On- or off-campus employment Usually 12 to 15 hours per week
2014 SUNY College Fairs OpInform 2014
Sources and Types of Financial Aid:William D. Ford Direct Loans
Subsidized 4.66% Capped at 8.25% Based on need Federal government pays
interest while student is in school
$3,500 for freshmen
Unsubsidized 4.66% Capped at 8.25% Not based on need Student is responsible for
interest while in school Loan cannot exceed cost of
education minus financial aid
Combined total of $5,500 for freshmen
2014 SUNY College Fairs OpInform 2014
Sources and Types of Financial Aid:Perkins Loan
Need-based Low interest rate (5%) Student pays no interest while in school Maximum $5,500 per year May be forgiven
2014 SUNY College Fairs OpInform 2014
Sources and Types of Financial Aid:Parent Loans for Undergraduate Students (PLUS) For parents of dependent students Borrow up to entire cost of college less financial aid No adverse credit (parent must pass credit check) Interest rate 7.21% Capped at 10.5%
Time Payment Plans May vary…typically, families spread the direct costs over the semester or year
2014 SUNY College Fairs OpInform 2014
SUNY State-Operated Campuses 2014-2015 TEACH Grant Up to $4,000 per year For students who intend to teach:
a high-need field students of low-income
Four-year service contract More information: www.studentaid.ed.gov
2014 SUNY College Fairs OpInform 2014
NYS STEM Scholarship
TAP introduced the STEM scholarship Students will get their tuition for free at CUNY or
SUNY if they graduate in the top 10% of their class It is not income dependent There is a 5-year service commitment
2014 SUNY College Fairs OpInform 2014
2014 SUNY College Fairs OpInform 2014
An innovative and transparent system-wide approach to promote awareness and understanding regarding college costs, college financing options and responsible student loan borrowing.
What is SUNY Smart Track?
2014 SUNY College Fairs OpInform 2014
SUNY Smart Track
SUNY standard award letter System-wide financial literary Student engagement/communication Delinquency/default resolution www.suny.edu/smarttrack
2014 SUNY College Fairs OpInform 2014
Smart Track Award Letter
2014 SUNY College Fairs OpInform 2014
Smart Track Award Letter
Estimated Cost of Attendance Section(Direct vs. Indirect Costs)
Transportation
2014 SUNY College Fairs OpInform 2014
Smart Track Award Letter
Grants/Gift Aid Section
2014 SUNY College Fairs OpInform 2014
Estimated Remaining Costs Section
Smart Track Award Letter
2014 SUNY College Fairs OpInform 2014
Options To Pay Net Cost Sections
Smart Track Award Letter
2014 SUNY College Fairs OpInform 2014
Smart Track Award Letter
College Overview Section
Graduation Rate Loan Default Rate Median Borrowing Repaying Loan Information School Contact Information
2014 SUNY College Fairs OpInform 2014
Customized College Information Section
Smart Track Award Letter
2014 SUNY College Fairs OpInform 2014
How important is Financial Literacy for Student/Life Success?
SUNY Smart Track Financial Literacy is a value-added service provided to all SUNY students as part of their SUNY experience
Keeping students engaged promotes retention and increases completion rates
Students who have financial literacy are more likely to become successful student loan repayers – regardless of the amount borrowed
2014 SUNY College Fairs OpInform 2014
SUNY Smart Track Financial Literacy Website
http://www.suny.edu/smarttrack
2014 SUNY College Fairs OpInform 2014
Student Engagement/Communication
All student loan borrowers receive communications
Engage students in campus activities and services to promote retention
Get to know financial aid office staff – call or make a personal appointment to review your loan history and repayment information
2014 SUNY College Fairs OpInform 2014
All SUNY Campuses are linked to the SUNY Smart Track Financial Literacy Website
2014 SUNY College Fairs OpInform 2014
Questions?