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Financing Your College Education

Claudia A. Wenzel

Assistant VP Enrollment & Financial Services

John Carroll University

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Agenda

The Basics of Understanding the process including:

Timeline
Expected Family Contribution (EFC)
Formula for financial need
Categories, types and sources of financial aid

The application process and timeline

Free Application for Federal Student Aid(FAFSA)

Special circumstances
Tips for Success

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SEPTEMBER

Admission Application

OCTOBER

Complete FAFSA

DEC-FEB

Financial Aid Awards released

JANUARY-MAY

Apply for outside scholarships

Complete special circumstance forms

MAY 1

Deposit to confirm enrollment

SPRING-SUMMER

Process aid, secure loans/payment plans

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Cost of Attendance

Direct Expenses(billed)

Tuition
Mandatory Fees
Room
Board

Indirect Expenses (not billed)

Books and Supplies
Transportation
Personal Expenses

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Expected Family Contribution (EFC)�

Measurement of student’s and family’s ability to pay postsecondary educational expenses

Student contribution

Parent contribution

(for dependent students)

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The Expected Family Contribution (EFC)

Amount family can reasonably be expected to contribute as determined by the Federal Government
Stays the same regardless of college
Two components

Parent contribution
Student contribution

Calculated using data from a federal application form and a federal formula
EFC at most institutions is used as indication of federal and state eligibility rather then the amount to be paid by the family

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Financial Need

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Paying for College�

Parents have the primary responsibility for paying for their student’s education
Students are also expected to assist with the cost

*****Financial Aid*****

Assistance from the institution, federal and state sources that reduce the cost
Funding can be non-repayable(Grants/Scholarships) or repayable(Loans)

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Categories of Financial Aid

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Types of Financial Aid

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Sources of Financial Aid

Federal

Private Sources

State

College

University

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Federal Funding��

Largest source of financial aid

Aid provided primarily on the basis of financial need

Must apply each year using the FAFSA

Eligibility requirements must be met

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Federal Student Loans

Need Based
In the student’s name, no credit check or co-signer required
10 year repayment term with a 6 month grace period after last term of enrollment
3.73% interest rate for 2021-22
Interest is subsidized while the student is in school and during deferment

Subsidized

Not need based but requires FAFSA
In the student’s name, no credit check or co-signer required
10 year repayment term with a 6 month grace period after last term of enrollment
3.73% interest rate for 2021-22
Interest begins accruing from disbursement can be paid quarterly or capitalized

Unsubsidized

Not need based but requires FAFSA
Borrowed in Parent’s name
Credit check required
6.28% Interest Rate-
Can be deferred while student is in school
Denial allows for additional unsubsidized loan in student’s name

PLUS

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Class Year	Base Amount	Additional Unsubsidized Amount	Total Available to Borrow
Freshman	$3,500	$2,000	$5,500
Sophomore	$4,500	$2,000	$6,500
Junior	$5,500	$2,000	$7,500
Senior	$5,500	$2,000	$7,500

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Student Employment

Allows student to earn money to help pay educational costs

A paycheck; or
Nonmonetary compensation, such as room and board

Student may opt whether or not to work or number of hours to work
Great opportunity for engagement, time management and career building skills

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State Aid��

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Colleges and Universities

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Private Sources

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Application Process

Institutional Applications
Admission application/scholarship applications

Free Application for Federal Student Aid (FAFSA)

Used by ALL schools to determine federal/state and in most cases institutional aid

Available October 1

PROFILE---College Scholarship Service (CSS)

https://student.collegeboard.org/css-financial-aid-profile

Used by selective schools to collect greater detailed information to inform awarding of institutional aid

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Free Application for Federal Student Aid ( FAFSA)

Website: www.fafsa.gov
2022-23 FAFSA on the Web available on �October 1, 2021 WWW.FAFSA.GOV
May be filed at any time during an academic year, but no earlier than the October 1. Confirm with individual colleges for preferred deadline
A standard form that collects demographic and financial information about the student and family
Information used to calculate the expected family contribution (EFC)

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Information needed to complete the FAFSA

Student Social Security number, date of birth
Student Driver’s License number
Student & Parent Income from “prior-prior year” (2020)
Taxes Paid
Family Size
Number of family members in college
Asset Equity (excludes home and qualified retirement accounts) for parent and student

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IRS Data Retrieval Tool

Allows for certain tax return information to be transferred from the IRS database
Participation is voluntary and student chooses whether to transfer data to FOTW
IRS will authenticate taxpayer’s identity
If tax record is found, IRS transfers information to populate the FAFSA
Reduces documents requested by financial aid office

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Frequent FAFSA Errors

Social Security Numbers
Divorced/remarried parental information
Income earned by parents/stepparents
Untaxed income
U.S. income taxes paid
Household size
Number of household members in college
Real estate and investment net worth

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Special Circumstances

Conditions exist that cannot be documented with the FAFSA.�
Student should file the FAFSA as directed and send written explanation and documentation to the college’s financial aid office explaining their special circumstance.�
Most colleges have an appeal process to address special circumstances. The college will review and request additional information if necessary.�
If the student's circumstances are warranted, the FAA will submit corrections to the FAFSA to reflect the changes. �
Each college may have a different way of reviewing special circumstances. Students should be prepared to appeal at all schools they are considering and could receive different responses per college.�
Decisions are final and cannot be appealed to the U.S. Department of Education.�

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STEP #1-------FSA ID

An FSA ID is a username and password that gives a student/parent access to Federal Student Aid’s online systems and serves as their legal signature.

The student and one parent whose information is on the FAFSA will need their own individual FSA IDs.

It is best to request FSA IDs before beginning the FAFSA at www.studentaid.gov

FSA ID requires an email address or mobile phone number. An email address and mobile number can only be associated with one FSAID. Parents and students cannot use the same email or mobile phone number.

Students should not use a high school email address because it will be deleted �after graduation.

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General Student Information

Social Security Number
Citizenship status
Marital status
Level of parents’ school completion

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Student Dependency Status

FAFSA asks questions to determine dependency status for federal student aid (not IRS) purposes:

If all “No” responses, student is dependent
If “Yes” to any question, student is independent

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Information about Parents of Dependent Students

Marital status and household size as of time of completion
Tax, income, and other financial information from the 2020 tax year
Dislocated worker status
Receipt of federal means-tested benefits
Assets as of time of completion
Untaxed income

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Information About Student (and Spouse)

Marital status and household size as of time of completion
Tax, income, and other financial information from the 2020 tax year
Dislocated worker status
Receipt of federal means-tested benefits
Assets as of time of completion
Untaxed income

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Additional Information

College and housing information
FAFSA preparer information
Certification of Statement of Educational Purpose

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Signatures

The most common reason a submitted FAFSA is considered incomplete is missing signatures.

Students and parents are encouraged to request the FSA ID prior to beginning the FAFSA.

Both the student and parent signature is required.

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Confirmation Page

Redesigned for clarity. Includes:

Confirmation Number
Data Release Number (DRN)
EFC estimate
Pell Grant and Direct Loan estimates
Option for parents to transfer info to an application for a sibling
Graduation, Transfer, and Retention rates for each college on the FAFSA
Average Net Price at each institution

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FAFSA Processing Results

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Making Corrections

Corrections to FAFSA data may be made by:

Using FAFSA on the Web (www.fafsa.gov) if student has a FSA ID;
Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or
Submitting documentation to college’s financial aid office

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Next Steps

Schools will match your FAFSA to your Admission Application
Your Financial Need will be calculated to determine your full award
Your award will include all opportunities for aid and detail the amount, source and type of aid

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TIPS FOR SUCCESS

Start early and ask questions

Net Price Calculator (NPC)

Know the importance of deadlines
Read everything—Do your research and make connections
Don’t assume you don’t qualify
Compare apples to apples-understand the make-up of an award
Involve the student