An Overview of the Financial Aid Process

1
An Overview of the Financial Aid Process

• Financing Your Childs
• College Education

2
The College Investment

• The responsibility for investing in college
  primarily rests with the family.
• However, colleges and universities assist by
  recognizing financial need and academic ability.

3
Just how much IS College?

• Direct Costs Tuition, Room Board, Fees ASK
  what fees are included
• Indirect Costs Books, Supplies, Personal,
  Transportation

4
What is Financial Aid?

• Gift Assistance
• Grants Need-based, are NOT repaid
• Scholarships Talent-based, are NOT repaid
• Academic, Athletic, Fine Art, Leadership, etc.
• Self-Help
• Loans MUST be repaid
• Work Study On-campus v. Off-campus jobs

5
Need Analysis Forms

• FAFSA - the Free Application for Federal Student
  Aid
• Govt form used by 99 of colleges and
  universities
• Determines eligibility for federal funds
• Federal Methodology
• CSS Profile the College Scholarship Service
  Profile
• Private institutional form
• Determines eligibility for funds from the
  schools endowment
• Institutional Methodology
• (varies by the desirability of the student)

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FAFSA(Free Application for Federal Student Aid)

• File after January 1 of students senior year
• Determines EFC (Expected Family Contribution)
• Resources available to the family
• Standard allowance for living expenses, based on
  number of individuals living in household
• Discretionary Income, of which a portion will
  be expected to be contributed towards college
  expenses
• EFC is the minimum you will be expected to
  contribute.
• EFC remains the same regardless of the college.
  The difference is the List Price of the
  institution.

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Resources Available to Family

• Family Income
• Family Size
• Age of Parents
• Assets that generate income
• Students Income
• (Earnings - 2200 x x/2 contribution)
• Students Assets (35 of whats in childs SSN)
• of family members enrolled in college (not
  parents)
• Other circumstances medical, grandparent
  support, etc.

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Beginning the Financial Aid Process

• Do a dry run NOW - get an idea of what your
  estimated need will be next year in order to
  prepare in advance.
• www.finaid.org/calculators www.collegeboard.or
  g
• Your Financial Planner

9
Colleges should to the extent possible, within
the institutions capabilities, meet the full
need of accepted students.

• However, they often face a difficult balance
  between meeting the needs of the students and the
  demands of the administration.

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How the EFC is Used

• Cost of Attendance 12,000
• - EFC 5,000
• ------------------------- ----------
• Financial Need 7,000
• If only 80 of need is met, then there is 1400
  in unmet need the EFC 6400 your cost
• ASK! What of financial need do you meet?

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Private School V. Public School Cost

• Private Public
• 30,000 Cost 12,000 Cost
• - 10,000 EFC - 10,000 EFC
• ----------------- -----------------
• 20,000 Fin Aid Eligibility 2,000 Fin Aid
  Eligibility
• 2,500 loan 2,500 loan
• 17,500 grants scholarships
• (not repaid)

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Example of How EFC is Used

• Family Income 100,000
• in Family 4
• in College 1
• EFC 20,000
• Cost 13,000 24,000 32,000
• - EFC 20,000 20,000 20,000
• ----------- ----------- ------
  -----
• Need 0 4,000 12,000

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Need 0 4,000
12,000

• Breakdown of how need is met
• Loan 0 2,500 3,500
• Job 0 1,500 2,100
• Grant 0 0 6,400
• ------------ ----------- -----------
• Total 0 4,000
  12,000

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2 in College!!

• EFC does NOT double
• Approximately 55 of EFC will be contributed
  towards each child
• EFC per child will differ based on their income

15
Timeline

• Junior Year Start College Search!
• Spring Summer MAKE COLLEGE VISITS!!
• Ask about institutional scholarships, FA
  policies, Early Estimators, etc.
• Research outside scholarship opportunities
• Religious, Community, Foundations, Political,
  Cultural, etc.
• Senior Year Narrow Down College Choices
• Fall APPLY!!
• Be aware of deadlines, particularly for Early
  Decision / Action
• Fill out Early Estimators and Scholarship forms
• Winter File the FAFSA and CSS Profile
• Spring Make final decision by May 1st

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Words of Advice..

• File the FAFSA and Profile on time.
• BE CAREFUL OF SCHOLARSHIP SCAMS!!
• Dont let the financial aid package be the sole
  determinant in your students final decision.
• Compared to public institutions, private colleges
  typically offer more scholarship money.
• Assume one thing. College costs will continue to
  rise every year.

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Good Luck!! And check out these FREE scholarship
search websites www.fastweb.com
www.isac-online.org Special thanks to the
Office of Financial Assistance at Bradley
University.