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How All The Money FitsFAFSA Basics
Sharon L Harper
Director of Scholarship Programs
To Be Covered
• Financial Aid• Acronyms• Packaging• Timing• Scholarship/Tax Basics• Changes to Federal Aid• How to read a SAR
FAFSA?!?
• Primary goal is to assist students in paying for college and is achieved by:
– Evaluating family’s ability to pay educational costs
– Distributing limited resources in an equitable manner
• Student first, then family, THEN tax payer dollars
What is Financial Aid
• Any financial resource available to assist student paying for higher education– Grants– Scholarships– Work-Study– Loans– Family Resources
Acronyms
Decoder
Sample Budgets
Resident at State University
• Tuition & Fees $
7,932• Books & Supplies
$ 1,749
• Personal/Misc. $ 2,565• Room & Board $10,378
TOTAL $22,624
Non-Resident
• Tuition & Fees $ 28,187
• Books & Supplies $ 1,749
• Personal/Misc. $ 3,437• Room & Board $ 10,378
TOTAL $ 43,751
Definition of Need
Cost of attendance (COA)
– Expected family contribution (EFC)
= Need
Need Varies Based on Cost
X
Y
Z
Cost of Expected Family NeedAttendance Contribution (Variable) (Variable) (Constant)
1
2
3
EFC EFC
Packaging Example A
COA $ 22,624.00
EFC $ 0.00
Need $ 22,624.00
Financial Aid:
Pell $ 5,730.00
State Grant $ 2,500.00
UnivGrant $ 2,500.00
Work Study $ 3,000.00
Sub Stafford $ 3,500.00
UnSub Staff $ 2,000.00
PLUS Loan $ 3,394.00
Packaging Example A
EFC $ 0.00
Need $ 22,624.00
Private Schlp $5,000.00
Financial Aid:
Pell $ 5,730.00
State Grant $ 2,500.00
UnivGrant $ 2,500.00
Work Study $ 3,000.00
Sub Stafford $ 3,500.00
UnSub Staff $ 2,000.00
$ 394.00
PLUS Loan $ 3,394.00
Packaging Example A
EFC $ 0.00
Need $ 22,624.00
Private Schlp $15,000.00
Financial Aid:
Pell $ 5,730.00
State Grant $ 2,500.00
$ 1,894.00
UnivGrant $ 2,500.00
Work Study $ 3,000.00
Sub Stafford $ 3,500.00
UnSub Staff $ 2,000.00
PLUS Loan $ 3,394.00
Packaging Example A
EFC $ 0.00
Need $ 22,624.00
Private Schlp $ 20,000.00
Financial Aid:
Pell $ 5,730.00
State Grant $ 2,500.00
UnivGrant $ 2,500.00
Work Study $ 3,000.00
Sub Stafford $ 3,500.00
UnSub Staff $ 2,000.00
PLUS Loan $ 3,394.00
Packaging Example B
COA $ 35,879.00
EFC $ 3,824.00
Need $ 32,055.00
53% range $16,989
Financial Aid:
Pell $ 1,880.00
FSEOG Grant $ 2,500.00
UnivGrant $ 12,609.00
Work Study $ 3,000.00
Sub Stafford $ 3,500.00
UnSub Staff $ 2,000.00
PLUS Loan $ 10,390.00
Packaging Example B
COA $ 35,879.00
EFC $ 3,824.00
Need $ 32,055.00
53% range $16,989
Private Schlp $5,000
Financial Aid:
Pell $ 1,880.00
FSEOG Grant $ 2,500.00
UnivGrant $ 12,609.00
Work Study $ 3,000.00
Sub Stafford $ 3,500.00
UnSub Staff $ 2,000.00
PLUS Loan $ 10,390.00
$ 5,390.00
Packaging Example B
COA $ 35,879.00
EFC $ 3,824.00
Need $ 32,055.00
53% range $16,989
Private Schlp $15,000
Financial Aid:
Pell $ 1,880.00
FSEOG Grant $ 2,500.00
UnivGrant $ 12,609.00
Work Study $ 3,000.00
Sub Stafford $ 3,500.00
UnSub Staff $ 2,000.00
$ 3,890.00
PLUS Loan $ 10,390.00
Packaging Example B
COA $ 35,879.00
EFC $ 3,824.00
Need $ 32,055.00
53% range $16,989
Private Schlp $20,000
Financial Aid:
Pell $ 1,880.00
FSEOG Grant $ 2,500.00
UnivGrant $ 12,609.00
$ 7,675.00
Work Study $ 3,000.00
Sub Stafford $ 3,500.00
UnSub Staff $ 2,000.00
$ 3,824.00
PLUS Loan $ 10,390.00
Timing
• 10 days prior to first day of class– Institutions pay billed amount first– Using aid on system
• Census date– Most Institutional Aid has paid in
• Mid-Semester– Usually no bill remaining – unless aid insufficient to
cover bill
• Annually– Check school policy for division of awards without
specific donor direction
Scholarships and Taxes
• Are Scholarships Taxable?– Must meet all 3 tests
• Qualified scholarship
• Recipient is candidate for a degree
• Purpose is for conducting study or research at an educational organization
Test 1
• Qualified Scholarship– Payment is for
• Tuition and fees required OR
• Fees, books, supplies, or equipment required
– Must be required for either• Enrollment OR
• A course of instructions
Test 2
• Candidate for a degree– Individuals who are actually enrolled in a degree-
seeking program– Enrolled students not actually seeking a degree
provided that:• Institution offers degrees
• Is properly accredited
Test 3
• Education Organization– Institution must:
• Have a faculty
• Have a curriculum
• Have a regularly enrolled body of students
Back to our Examples
Resident at State University
• Tuition & Fees $ 7,932• Books & Supplies $ 1,749• Personal/Misc. $ 2,565• Room & Board $10,378
TOTAL $22,624
$5,000 Scholarship
Yes?
No?
Back to our Examples
Resident at State University
• Tuition & Fees $ 7,932• Books & Supplies $ 1,749• Personal/Misc. $ 2,565• Room & Board $10,378
TOTAL $22,624
$15,000 Scholarship
Yes?
No?
Back to our Examples
$5,000 Scholarship
Yes?
No?
Non-Resident
• Tuition & Fees $ 28,187• Books & Supplies $ 1,749 • Personal/Misc. $ 3,437• Room & Board $ 10,378
TOTAL $ 43,751
Back to our Examples
$15,000 Scholarship
Yes?
No?
Non-Resident
• Tuition & Fees $ 28,187• Books & Supplies $ 1,749 • Personal/Misc. $ 3,437• Room & Board $ 10,378
TOTAL $ 43,751
SAP
• Satisfactory Academic Progress• Basic requirements are
– 2.0 GPA– Completing at least 65% of credits enrolled while
receiving Federal Title IV funds– Working towards a degree program – not exceeding
150% of hours to complete degree
• Not applicable to Private Scholarships – Schools generally monitor and notify donors– Donors decision whether to fund or not– Donors can have more rigid scholarship eligibility
requirements
R2T4
• Return of Title 4 funds• If student withdraws completely from semester in
which aid has been received for• Calculation based on percentage of aid “earned”
before withdrawal• Not required for private donors – schools
generally will contact donor for direction– If donor is unsure – I recommend following R2T4 calc.
Pertinent Updates to FAFSA
• Tax Transcript in lieu of copy of taxes• Pell and Stafford loans limited by dollar amount
and/or number of years received• Stafford loans interest rate for 2014-15 4.66%
Changes to Federal Aid
• SULA– Subsidized Usage Limit Applies
• Affordable Care Act/Student Employment
Reading a SAR
Contact Information
Sharon HarperDirector of Scholarship Programs
The Denver Foundation
303-996-7348
THANK YOU!!!!!
