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Financial Aid 101��Ryan G. Forsythe, Ed.D.�Vice President for Enrollment�Worcester State University

Scan the QR code to sign up for MEFA emails on relevant college planning topics.

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About MEFA

State authority created by the Commonwealth of Massachusetts in 1982, helping families plan, save, and pay for college

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Webinar Topics

Types & Sources of Financial Aid
The Application Process
How Financial Aid Decisions Are Made
Paying for College
What You Can Do Now

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Types and Sources of �Financial Aid

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What is Financial Aid?

Financial aid is money to help students pay for college

3 main types:

Grants and scholarships (gift aid)
Federal work-study
Federal student loans

Financial aid is simply money to help students pay for college
THREE main types of financial aid
Grants and scholarships are allocations of free money, also known as gift aid, which do not need to be repaid
Work-study does not come off the student’s bill and is a set amount of funding saved for a student to earn while on campus working in a part-time job
Work-study earnings are paid in paycheck form
Earnings from a co-op program or a work-study position are taxable but excluded from total income within the federal financial aid calculation
Federal student loans are considered financial aid because of their special repayment terms. As well, they are the only option for a college student to borrow a loan without a co-signer at a low, fixed interest rate
Student loans must be repaid
You do not have to accept loans or work-study

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Federal Direct Student Loans

Student is the sole borrower
No credit check
Subsidized and Unsubsidized
6.52% fixed interest rate for 2026-27
Repayment:

No payments due while enrolled
Multiple options (many tied to income)
Total borrowed for 4 years: $27,000 max
Standard Repayment Plan: 10-25 years depending on loan balance
Deferment, forbearance, and forgiveness opportunities

Annual Loan Limits

Freshman Year

$5,500

Sophomore Year

$6,500

Junior Year

$7,500

Senior Year

$7,500

The interest rate for 2026-27 Federal Direct Student Loans will be set in May
Federal loan options should ALWAYS be considered before private options. If you do not use the eligible amount in any given year, you will not be able to borrower that amount in future years. i.e. If a student does not borrow freshman year loan of $5,500, they will not be able to borrow the $5,500 in sophomore year. Use it or lose it.
Direct Loans are student loans
Subsidized loans count within the total financial aid that is filling in the financial need, so they can’t cover the SAI
Go over loan details and limits:

Student Direct Loan: $5,500 FR, $6,500 SO, $7,500 JR & SR – these all include a $2,000 Unsub DL Loan each year

Tell families that even students with NO financial need can receive a $5,500 Unsubsidized Direct Loan
Start the kitchen table conversations now as a family about affordable monthly payments and debt that students will be able to afford based on future earnings.
Student will need to sign a Master Promissory Note and complete entrance counseling on StudentLoans.gov
Direct Loan – all U.S. citizens/permanent residents are eligible
Students whose parents are denied for the PLUS loan are automatically eligible for a $4K (FR & SO) or $5K (JR & SR) Unsub Direct Loan – these amounts are in addition to the limits above
Many repayment options are available for borrowers, including those tied to the new grad’s income. Forgiveness provisions exist for certain professions. See StudentLoans.gov for details. All Direct Loans don’t have to be repaid until after the student leaves school.
What is reasonable student loan debt? On average, student borrowers in Massachusetts who graduated in 2020 owed $33,457 according to TICAS: https://ticas.org/interactive-map/
Additional Loan Options:

NIL: A MA state loan for low-income students; not available at all schools

Parents who want loans will have to apply for them separately and will need to be credit-worthy (a PLUS Loan is a federal parent loan but still requires a credit-worthy borrower and an application)
Students who want an additional loan will need to apply through a private source and will need a credit-worthy co-borrower
Many private loans offer multiple repayment options allowing families to start make payments while the student is in school or to defer payments until after the student graduates

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Sources of Financial Aid

Federal

Grants, work-study, loans, tax incentives
studentaid.gov

Massachusetts

Grants, scholarships, tuition waivers, loans
mass.edu/osfa

College/University (institutional aid)

Grants, scholarships, loans

Other Agencies

Scholarships: Search through bigfuture.org, mefapathway.org, and fastweb.com, and check with your school counselor

$205 billion*: The total amount of aid undergraduate students received in 2024-25

*Trends in Student Aid 2025, The College Board

Financial aid comes from four primary sources. Each source has different requirements for eligibility.

Federal: Most federal grants are allocated for lower income families; work-study is reserved for students with financial need; Every student eligible to apply for federal financial aid can receive federal student loans; tax incentives are credits on federal tax returns
State: Most state grants are allocated for lower income families; MA also offers scholarships and tuition waivers for students who meet certain criteria Recipients must be MA residents for at least one year. Visit mass.edu/osfa for more details on MA state aid
College/University: some colleges or universities do have their own student loan programs
By submitting your financial aid applications, you are applying for federal, MA, and institutional financial aid
Start looking online for outside/private scholarships now. You must find and apply for these separately. mefa.org has an entire page devoted to private scholarships with links to different search engines. Check with your guidance counselor for local/high school scholarships. Also check with the parent employers and any membership groups or affiliations of which parents are members. NEVER pay for a scholarship search or application – those are scams. And students can start looking for scholarships EARLY (as young as Elementary School!)
You may want to ask the school counselor before the seminar beings if he/she wants to speak about local outside scholarships and how the information is available through the guidance office
You can mention the College Board Opportunity Scholarships: students complete college planning steps and students that complete all 6 steps can enter to win $40,000
The total amount of aid listed is the total amount of undergraduate aid

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Merit-Based Aid

Awarded in recognition of student achievements �(academic, artistic, athletic, etc.)
Might have renewable requirements or not be renewable
Not offered at every college; check each college’s website for details
Separate application sometimes required �(check deadlines!)
Application deadline may be as early as November

Financial aid may also be awarded based on factors other than financial eligibility

Only some colleges award merit aid, also called merit scholarships
Awarding practices vary significantly from college to college
Discuss some of the ways students may need to apply for merit aid: a separate application, essay, nomination, etc.
Some merit scholarship applications have deadlines EARLIER than the admissions and financial aid applications
Discuss how students may lose academic merit awards if they don’t meet GPA requirements
Most merit-based aid comes from the institution.
One example of merit aid from MA: John & Abigail Adams Scholarship:

Non need-based
Based on high 10^th grade MCAS score
No application: winners are notified in fall of senior year
Covers tuition (NOT fees) at MA public colleges & universities
UMass System has combined tuition and fees so their students will receive a tuition credit for the same amount that would be allocated for tuition. For a full listing of the Adams Scholarship amount at each school, visit mass.edu/osfa
Must be MA resident and U.S. citizen or eligible non-citizen
Must submit the FAFSA (even though it’s not need-based)
Students must maintain a 3.0 GPA for renewability
Don’t mention this at private high schools, as private high schools are not required to take the MCAS

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Need-Based Aid

Based on family’s financial eligibility (“need”)
Eligibility determined by a standardized formula
Includes grants, loans, and work-study
Most financial aid is need-based
Must be making satisfactory academic progress

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The Application Process

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FAFSA®

Free Application for Federal Student Aid (FAFSA)
Required by all colleges
Must complete every year
Available on Oct 1^st
Steps to complete:

Go to fafsa.gov and select the 2027-28 FAFSA starting Oct 1, 2026
Have student start the FAFSA (highly recommended) and then invite all other contributors (parents)
Each contributor will complete their own separate section
Last contributor to complete can submit the FAFSA
Incomplete FAFSAs are deleted after 45 days of no activity

Watch MEFA’s Understanding the FAFSA webinar at mefa.org/webinars for step-by-step guidance

FAFSA:

Discuss the benefits of completing the FAFSA online: skip logic, saved info year-to-year, etc.
The website for the FAFSA is FAFSA.gov and it’s FREE to apply
The application usually opens October 1^st but it will be December 1st this year
Stress that meeting the deadline is VERY IMPORTANT- Some schools may run out of money after their priority deadline.

If you are filling out the FAFSA early for EA or ED deadlines, you can always do a FAFSA correction later on to add more schools that were not initially on the students list.

Student and all parents on the FASFA need studentaid.gov account to log in to the FAFSA (except if parents filed taxes together, and then only one needs one)
The FAFSA will pull their tax data from the IRS into the FAFSA though the family will not be able to VIEW the income tax information (for security purposes). If there are big discrepancies between income data from year to year, families should talk to the college financial aid offices
Must complete the FAFSA each year
Mention FAFSA Day as resource for free help completing the application
Federal and MA state financial aid eligibility will be based exclusively on the SAI from the FAFSA. The FAFSA must be completed for MA state aid by May 1!
The FAFSA webinar goes page by page through the application – provides a lot of detail
Student does not see parent information and vice versa

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Studentaid.gov Account

Studentaid.gov account login info = username and password for the FAFSA
Must have an account to log in
Can set up your account now at�studentaid.gov/fsa-id/create-account
Must have an email address
Who needs an account?

Student
Every parent listed on the FAFSA

If parents filed taxes jointly, only one parent needs one

Student’s spouse (if applicable) if filed taxes separately or didn’t file

Those without an SSN will answer knowledge-based questions pulled from credit history

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What’s Reported on the FAFSA?

General Information
Student citizenship status

All U.S. citizens and eligible non-citizens can receive federal financial aid
Undocumented students are not eligible for federal aid, but may be eligible for MA in-state tuition and state aid if they complete the MASFA form

Colleges where student is applying (each one will receive your FAFSA data)
Parents

Married, including same-sex parents, include both
All parents who live together, married or not
Divorced/Separated: parent who provided more financial support in last 12 months & current spouse

If parents provided equal support, use the parent with greater income and assets

Legal guardians are NOT a parent

# in household: will pull from IRS but family can update
# of children in college: will not be used in calculation

What’s on the FAFSA:

Citizenship status – student must be a U.S. citizen or eligible non-citizen to receive financial aid (parent citizenship status is irrelevant). Eligible non-citizens: U.S. nationals & permanent residents, those with an Arrival-Departure Record (I-94), students with a T-visa or who have a parent with a T-visa, “battered immigrant-qualified aliens,” and citizens of the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau
Undocumented students are eligible for MA in-state tuition if: 1. Have been admitted to a public MA college/university/community college, and 2. Not a nonimmigrant alien within the meaning of 8 U.S.C. 1101(1)(15)(A) to (S), inclusive, and 3. Have attended at least 3 years of HS in MA, and 4. Have graduated from a MA HS or received the equivalent in MA, and 5. Have applied for miliary selective service if eligible, and 6. Provide a completed affidavit stating will file an application to become a citizen or legal perm resident within 120 days of becoming eligible to do so
Will do 1 form and send it to up to 20 schools at a time – you list your schools. Colleges cannot see the other colleges that students listed on the FAFSA.
Students and parents answer questions and provide data
Information from both parents will be required on the FAFSA, regardless of parents’ gender or marital status, if 1. Both parents are legal parents, defined as biological or adoptive parents; and 2. The student’s legal parents live together. Same-sex parents who live together and parents who have never been married who live together BOTH report information on the FAFSA.
If parents are divorced or separated, only the parent that provides more financial support and that parent’s spouse (if there is one) report information on the FAFSA. The other parent does not appear anywhere on the FAFSA
# of children in college (as of 24-25) will no longer affect eligibility for aid though it is still asked. Some schools are still using this figure for institutional aid which is why the question is still asked.

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What’s Reported on the FAFSA?

Financial Information
Parent and student income (2025 income for the 2027-28 FAFSA)

Will pull in federal tax data from the IRS (must give consent)
Both taxed and untaxed income that appears on the tax return

Parent and student assets

Include value of savings, checking, investments, larger businesses except commercial fishing businesses, other property
Include education savings accounts as a parent asset and don’t report the ones for other children
Do not include primary home, value of retirement, life insurance, family farms, small businesses, or commercial fishing businesses
Child support received is considered an asset

Debt is not reported except debt on reported assets

What’s on the FAFSA:

Income asked about is from two years prior to the year of the beginning of the academic year.
Only the untaxed income that appears on the tax return goes on the FAFSA
The PDF of the paper FAFSA (found online) will show all possible questions – this will also list the exact assets that people should include
The FAFSA does not have a space to write in special circumstances, but families can write a letter and mail it to each financial aid office. The way that financial aid offices handle this information will vary.
All contributors must provide consent in order for the student to be eligible for federal aid, even if the contributor(s) do not file taxes.
Students/parents will be able to decline consent and then manually enter their tax income information - BUT THE STUDENT WILL STILL BE INELIGIBLE for any federal aid.

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Other Financial Aid Applications

CSS Profile®

cssprofile.org
Required by some colleges and universities
$25 for 1st school, $16 for each additional
Fee waivers if parent income is $100k or less or family meets certain other criteria
Becomes available Oct 1^st
Noncustodial parent submits a separate profile
What to Know about the CSS Profile webinar on mefa.org/webinars

College Financial Aid Application

Required by some colleges and universities

CSS Profile

Only some colleges and universities require this (mostly private)
Will also ask for income from two years prior as its main income information but ask for other basic income totals from other years
The Profile provides colleges more information to award institutional funds
There is a fee for the Profile: $25 for first, $16 for every additional school
If student is applying Early Decision/Early Action, the Profile may be required earlier than the regular financial aid deadline
The Profile student dashboard will provide important information, such as deadlines and next steps
The Profile Registration step has been eliminated. Applicant information will be saved as soon as the family begins completing the form
There is no longer a separate Noncustodial Profile. If parents are divorced or separated, both parents must complete a CSS Profile. The custodial parent should complete a Profile first, as the noncustodial parent will not be able to complete the application until the student (on the custodial’ parent’s Profile) selects a college that requires a CSS Profile from a noncustodial parent.
Schools have an entire process by which a family can appeal the requirement for the noncustodial parent to submit a Profile. A noncustodial parent’s unwillingness or refusal to complete the application will not exclude the student from the requirement to have the noncustodial parent submit a Profile.
MEFA provided a webinar for families on the CSS Profile in late September. The recording is on mefa.org.
It does not matter if you fill out the FAFSA or the Profile first. Easiest to fill them both out one after the other while the information is fresh and all the documents have been gathered.
Families can also be reminded that the Social Security Number, while still an optional field on the Common App and the Profile, is often used by schools as the identifier when compiling all student data and applications, and it is helpful for families to therefore report the student’s SSN on all applications when requested.
Also, some colleges and universities may have additional financial aid application requirements (separate forms, etc.). Remind families to check application requirements carefully and to return all school requests for additional information or a callback.
The CSS Profile now allows a person to indicate a topic for a special circumstance. The person can check the box for that topic but must also include a narrative in the box provided about the special circumstance.

College/University Financial Aid Application

Institutions can ask anything
Not many colleges require this at all - check with the college for details

More common for returning students

As part of the original financial aid application (and not simply for Verification), some schools may require families to provide the corresponding tax return when submitting the financial aid application(s).

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Financial Aid Timeline

Check deadlines and required applications on each college’s website now
You will likely apply for financial aid before you receive the admissions decision
Early Action/Decision deadlines are often in October or November
Standard deadlines are typically in February or March
MEET APPLICATION DEADLINES!
Use MEFA’s College Application Manager to stay organized

mefa.org/college-application-manager

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After You Apply

Colleges and the state receive data electronically
Student will receive a FAFSA Submission Summary (FSS) by email
Colleges may request additional documentation due to (mandatory) Verification
Colleges review applications and determine the financial aid offer
Financial aid may be sent with the admissions decision or after
Review college websites to learn about each school’s timing

Explain what happens with the applications once they are submitted

Information is sent off electronically and processed by a central processing center and data is sent to selected colleges as well as the Massachusetts Office of Student Financial Assistance
Students will receive a FAFSA Submission Summary (FSS) with a summary of FAFSA answers via email
For FAFSA corrections, students should go back onto fafsa.gov, make corrections, and re-submit the FAFSA to the appropriate schools
For Profile corrections, they can log in and make corrections once or contact the colleges directly
Students should be sure to review all answers and make sure they are accurate
Explain Verification process. U.S. Department of Education requires that schools verify data on certain FAFSAs. Explain what documents might be required
Tell families to READ THEIR EMAILS and check student portals from the financial aid office, to comply with requests, and to stay organized
Remind parents that colleges communicate with the students directly, and mostly electronically (so students should keep on top of email – some families set up a separate email address for all college communication that both students and parents can access)
Can let folks know to contact the financial aid office if something changes (a job loss) or if there are special circumstances (student wants to petition to be independent, etc.)

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Financial Aid Office

Learn About Your Financial Aid

Financial aid renewability criteria (financial, academic)
How will a private scholarship affect my financial aid?

Ask About Special Considerations

Changes in family circumstances
Can I appeal my offer? How?

How to Contact the Financial Aid Office

Phone call
Email
Chat (if offered)

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How Financial Aid �Decisions are Made

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Cost of Attendance (COA)

COA = Total Expenses for

One Year of College

= Billed or Direct Expenses

= Non-Billed or Indirect Expenses

Tuition & Fees

+

Food & Housing

+

Books & Supplies

+

Transportation

+

Personal Expenses

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Student Aid Index (SAI)

Number that represents a family’s financial strength
Same federal formula used for every family
Income weighs much more heavily than assets
Some colleges also use an institutional formula
Family has the primary responsibility for paying
Not necessarily what the family will pay
SAI Calculator at mefa.org/sai -calculator

The SAI is formerly the EFC
The SAI reflects the family’s ability to absorb educational expenses (a family’s financial strength), but makes no particular assumptions about how the family will finance that contribution
The SAI is calculated using a standard formula for all families for the federal SAI
Some colleges (those that require another financial aid application – usually the CSS Profile) use an institutional formula for the distribution of their own college funds
The SAI is only for one year of college, and is re-calculated every year
The family has the primary responsibility to pay for the student’s education, and families have choices about how to do that
Families often pay more for college than the SAI
The SAI formula protects a portion of income and assets
0-5.6% of parent assets could be included in the SAI
Parent and student information is treated differently in the formula
20% of student assets is included in the SAI
After taxes and an income protection allowance, 50% of student income is included in the SAI
The formula does not take into account personal debt (credit card debt, car loan, personal debt)
Some colleges use two formulas (FM – federal, IM – institutional) if they collect two financial aid applications
MEFA has an SAI Calculator
The College Board Big Future webpage usually has an SAI Calculator for both FM & IM (it’s not yet updated)
Juniors: getting an estimate of your family’s SAI is something you can do now.
The formula is complicated – we can’t tell families what certain income and asset cutoffs will make them ineligible for financial aid

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Financial Aid Formula

Colleges fill in Financial Aid Eligibility with financial aid from �all sources

Cost of Attendance (COA)

-

Student Aid Index (SAI)*

=

Financial Aid Eligibility

*Note that a negative SAI is treated as zero in this formula

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Financial Aid Awarding

$45,000

College

Cost of Attendance

Unmet need and SAI are the FAMILY’s responsibility

Unmet Need

$5,000

Work-Study

$2,000

Student Loans

$5,500

Grant

Scholarship

$17,500

$10,000

SAI

$5,000

Colleges use the SAI to determine eligibility for financial aid, then try to meet the eligibility (or fill the barrel) with financial aid from all resources

Most colleges are not going to be able to fill the barrel
The SAI always goes into the barrel first
Unmet need is more common than not
Explain what happens to SAI when there is unmet need. In this example, if the student decides to attend this institution, the family will need to contribute the SAI plus unmet need ($5000 + $3000 = $8000) for the student to attend
Use this as an example to demonstrate how the SAI is often the MINIMUM contribution for a family, not necessarily a MAXIMUM
Explain the difference between direct and indirect costs in the COA and that even though the college won’t bill the student for indirect costs, the family still needs to determine how they will be met
Explain ways that students can reduce indirect costs, such as used books and cheaper travel
Explain how outside scholarships may affect the financial aid
The work-study pool varies drastically from school to school
If you’re given work-study, you usually still have to apply for a work-study position

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Offer Letters: Totals Can Vary

$45,000

$5,000

$40,000

College

Cost of Attendance

Student Aid Index (SAI)

Total Eligibility

Grants/Scholarships

Student Loans

Work-Study

Total

Unmet Need

College A

$32,500

$5,500

$2,000

$40,000

$0

College B

$25,500

$5,500

$2,000

$33,000

$7,000

College C

$17,500

$5,500

$2,000

$25,000

$15,000

Use MEFA’s College Cost Calculator to compare offers: mefa.org/college-cost-calculator

Use MEFA’s College Cost Calculator to compare awards: https://www.mefa.org/college-cost-calculator

Unmet need can vary greatly from college to college even when the COA is constant

Explain the differences and possible reasons for the variance
College A, B and C could also represent 3 different students at the same institution (students with the same eligibility at the same school may still receive different financial aid based on the different strengths of the admissions applications or enrollment goals of the school, or maybe one student missed the college’s financial aid application deadline)
When comparing financial aid award letters, families should consider the total number of years the student plans to be enrolled
Encourage families to visit mefa.org after receiving award letters to take advantage of the online, interactive My College Cost Calculator to compare financial aid awards
Remind families that deadlines are so important – the student may receive less aid because the financial aid application was late
Although this example assumes the same COA, remember this will not be the case with most schools! It’s important to really consider those different COAs.

College Cost Transparency Initiative: https://www.collegeprice.org/home

About the College Cost Transparency Initiative

The higher education community is committed to providing students financial aid information about the cost of college that is clear, accurate, and transparent. This goal has never been more important as students and families grapple with college affordability in an increasingly complex financial aid system consisting of multiple grant and loan programs with different eligibility requirements.

In the fall of 2022, the leaders of 10 higher education associations representing college presidents, financial aid offices, and admissions and school counselors announced the formation of a task force — the College Cost Transparency Initiative (CCT) — to improve the clarity, accuracy, and understanding of student financial aid offers by producing a set of guiding principles and minimal standards to be used when communicating aid offers.

The CCT task force’s sole focus and mission was to courage and assist efforts by institutions to communicate with students and families about college costs in a way that is clear, accurate and helpful. Broader issues and concerns of importance to colleges and students, such as cost of attendance and sources of financial support for students, were not discussed or considered by the task force.

This work is generously sponsored by a grant from Strada Education Foundation.

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Offer Letters: Types Can Vary

$35,000

$45,000

$5,000

$40,000

College

Cost of Attendance

Student Aid Index (SAI)

Total Eligibility

Grants/Scholarships

Student Loans

Parent Loans

Work-Study

Total

Unmet Need

College A

$27,500

$5,500

$0

$2,000

$35,000

$5,000

College B

$17,500

$5,500

$10,000

$2,000

$5,000

College C

$7,500

$5,500

$20,000

$2,000

$35,000

$5,000

Use MEFA’s College Cost Calculator to compare offers: mefa.org/college-cost-calculator

When comparing award letters, you can’t just look at the bottom line. You need to compare what’s making up each financial aid award

Here are three examples of awards from colleges with the same Cost of Attendance
Might want to start out by asking the audience what’s different about these award letters (Parent Loan – you can explain the PLUS Loan here)
You can see that even though three hypothetical colleges have the same total financial aid, the funds making up that award vary greatly
Explain the differences and possible reasons for the variance
Talk about the different kinds of loans a family might see on an award letter
College C might have not offered any grants or scholarships because the student submitted the financial aid applications late
What should a family do if offered a parent loan?
Although this example assumes the same COA, remember this will not be the case with most schools! It’s important to really consider those different COAs.

College Cost Transparency Initiative: https://www.collegeprice.org/home

About the College Cost Transparency Initiative

The higher education community is committed to providing students financial aid information about the cost of college that is clear, accurate, and transparent. This goal has never been more important as students and families grapple with college affordability in an increasingly complex financial aid system consisting of multiple grant and loan programs with different eligibility requirements.

In the fall of 2022, the leaders of 10 higher education associations representing college presidents, financial aid offices, and admissions and school counselors announced the formation of a task force — the College Cost Transparency Initiative (CCT) — to improve the clarity, accuracy, and understanding of student financial aid offers by producing a set of guiding principles and minimal standards to be used when communicating aid offers.

The CCT task force’s sole focus and mission was to courage and assist efforts by institutions to communicate with students and families about college costs in a way that is clear, accurate and helpful. Broader issues and concerns of importance to colleges and students, such as cost of attendance and sources of financial support for students, were not discussed or considered by the task force.

This work is generously sponsored by a grant from Strada Education Foundation.

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Paying for College

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Filling SAI and Unmet Need: An Example

-$10,000

Balance Due:

$20,000

Past Income (Savings)

Student Savings

-$1,000

Parent Savings

-$4,000

Present Income (Current Wages)

Parent Contribution to Payment Plan

-$5,000

Future Income (Borrowing College Loans)

Education Loan

$0

Families decide the best plan to meet the balance due at the college based on their own personal finances. The options fall under three major categories: past, present, and future income. Families don’t need to choose just one option (past, present, or future income) to pay the balance due, and combination plans can save money in the long run. Encourage families to visits mefa.org to access a Loan Payment Calculator, which allows families to understand the full cost of borrowing a loan

Reiterate that this is only for one year

Past Income: savings or other investments such as college saving plans
Present Income: Explain payment plan, e.g., owe $1,000? pay $100 per month for 10 months. Better than ANY loan
Future Income: borrowing loans. This will be in addition to student loans that are offered in the financial aid award. If families are considering financing any portion of the student’s education, they should take advantage of federal student loans first
You can speak here to wise borrowing, looking at interest rates and repayment options on private loans, not borrowing too much, and pointing out that students won’t be able to borrow private loans alone. Private loans are offered through banks, credit unions, lenders, and state authorities like MEFA. You can explain the PLUS Loan here as well.
Families need to be thinking about a long-term plan when deciding what options to use. This includes the total number of years the student plans to be enrolled as well as multiple children who plan to attend college

Colleges who use institutional methodology often expect the student to contribute from savings and/or summer work. Students are able to contribute to the payment plan along with the parents.

For families who are not receiving aid, you can still use these same steps. You will not be able to subtract aid, but if you have outside scholarships be sure to subtract them from direct costs.

Outside Scholarships can also be used as present income to help pay direct and indirect costs.
Remind families to think about the entire cost of the educational experience, not just the 1^st year.
Along the same lines, remember to consider all children in the household and potential college costs for them.
It’s Important to keep all options on the table, including lower cost institutions.

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Family Conversations on Affordability

What is each school’s net price?
Who will pay for college costs?
Consider community college first (free tuition and fees in MA)
Consider the number of children in the family going to college
Make a 4-year financing plan
Federal PLUS Loan caps as of 7/1/26: $20k/year, $65k in total
Think in terms of family total debt (4+ years of school) and student’s potential starting salary
Important Note: If you have prior Parent PLUS Loans, be aware of new regulations that could change current repayment options if you take an additional PLUS Loan after 7/1/2026

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Paying for College in MA

To apply for MA state financial aid, complete the FAFSA ASAP after Oct 1st

mass.gov/go-higher

Free Community College: Free tuition and fees and potential book allowance for all students
MASSGrant Plus & MASSGrant Plus Expansion: Free or reduced tuition & fees for low & middle-income students and potential book allowance at community colleges and 4-year public colleges
Tuition Equity Law: Some undocumented students can receive MA state aid and in-state tuition rates by submitting the MASFA
MassTransfer: Makes transferring from a MA community college to a 4-year MA public college more affordable
Tuition Break: Reduction on out-of-state tuition costs at New England colleges for certain programs (nebhe.org/tuitionbreak)

mefa.org/article/paying-college-massachusetts

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Register for an upcoming FAFSA Festival

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Thank You!

Questions?

(800) 449-MEFA (6332)

collegeplanning@mefa.org

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