Top 10 Things to Know About Financial Aid for College

Jerry Cebrzynski

Lake Forest College

Choosing a CollegeBest Fit

Program

Location

Size

Mix of Students

Academics

Extracurricular

Facilities

Financial Considerations

1. What is Financial Aid?

Scholarships

Grants

Student Loans

Work-Study

Undergraduate Student Aid by Source and Type (in Billions), 2012-13

SOURCE: The College Board, Trends in Student Aid

Four major sources of funding

College PrivateOrganizations

Federal State

Private Scholarships

2012-13: $6.6 Billion awarded

> 1.5M scholarships available

4% of undergraduates

$2,500 average award

Most Colleges do not reduce institutional $s

82% of all FR receive some form of financial aid

92% at private colleges; 76% at public institutions

Nearly half (48%) of FR received a Pell Grant

In 2013-14, average aid package $15,000

2. Everyone should apply for aid

Two Categories of Financial Aid

From College as well as from foundations, etc.

Based solely on the student’s credentials

Calculated from FAFSA and other aid applications

Sources can be federal, state, institutional

Types include grants, student loans, work-study

Merit-based

Need-based

3. Cost of attendance (COA)

Average Undergraduate Budgets2013-14

SOURCE: The College Board, Trends in College Pricing 2011, Figure 1.

$18,000

$40,000

Sticker Pricevs.

After Financial Aid/Scholarship Price

Net Price Calculator

Net Price Calculators

Online, College-specific estimator

Average grant/scholarship available to a family like yours

Average student loan and work-study eligibility

Estimated award is not a promise, a guarantee, or an actual aid offer

To the extent they are able, parents have primary responsibility to pay for their dependent children’s education

Students also have a responsibility to contribute to their educational costs

Families should be evaluated in their appropriate financial condition

A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect its ability to pay

The Financial Aid Office is your advocate!

4. Financial Aid is “A Partnership”

So . . . how does the process begin?

The Free Application for Federal Student Aid (FAFSA) collects basic financial data and is used to determine the student’s eligibility by

calculating an “index” #

5. To apply for all federal and state aid, families must complete

the...

Overview of the FAFSA

2015-2016 available January 1, 2015

7 Steps

Signed and submitted

electronically

FAFSA on the Web (FOTW) FAFSA.GOV

English or Spanish

Skip logic and online editing

Electronic signature (PIN)

E-mail notification

19 million (99%) FOTWs processed 14/15

FOTW Worksheet

20

Supplemental Financial Aid Applications

The College Scholarship Service Financial Aid PROFILE

A College’s own application for financial aid

6. Special Circumstances Matter

When the numbers don’t tell the whole story

When the situation is expected to change (or has)

Must be able to document

consideration will vary from school to school

Special Circumstances

Change in employment status

Health expenses not covered by insurance

Change in parent marital status

Other considerations

Cost of Attendance

Family’sContribution

FinancialNeed- =

How much aid can a student receive?

Financial Need

7. The Financial Aid Award Letter(or “package” )

Will contain a combination of

• scholarship, grant, loan and work-study funds

Why might “packages” be different?

• cost of attendance • scholarship criteria and availability • institutional philosophy and funding

Common Financial Aid Award Letter proposal

&

College

Scorecard

Decoding the Award Letter

Compare COA

Total amount of aid

Types and sources

Ask questions Is aid renewable?

Terms for renewing?

Will aid change from year to year?

Will costs increase?

Is more aid available if EFC decreases?

8. Appeals

Can request change in aid if there is a valid reason

Will it make a difference?

Is need already fully met?

Is more aid available?

Valid reasons

Special circumstances

9. Deadlines are essential

Deadlines Know each College’s priority deadlines

Read and retain all communication you receive

Contact school

Merit scholarship deadlines

Early Action/Early Decision/Regular Decision deadlines

Deadlines for supplemental documents (tax returns, etc.)

10. Ask for

The College Counseling Office at Stevenson

A College’s Financial Aid Office

The Internet

www.collegezone.com

www.finaid.org

www.studentaid.ed.gov

College Web Sites