College Cost

UNDERSTANDING THE FINANCIAL AID PROCESS

Agenda

• History and Philosophy of Federal Financial Aid Programs
• College Choice
• Forms, Formulas and Assessing Family Financial Strength
• Changes are coming; FAFSA simplification is scheduled to roll out for the 2024-25 academic year (Fall 2023 FAFSA)
• Completing the FAFSA
• Types of Aid
• Resources

History and Philosophy

• Students and their family(ies) have the primary responsibility to pay for college.
• Sacrifice is assumed.
• Financial aid assessment is NOT a cash flow analysis but rather an evaluation of an individual family’s economic strength.
• The contribution is determined by a standard formula that assesses a family’s ability to pay.
• Willingness is not a factor.

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Financial aid �helps bridge the gap �between the cost of education and �what the family can pay.

College Choice must be Rational

• College or University in everyone’s price range
• Don’t be distracted by brand names
• Fit
• Academic, Social and Financial

Forms, Formulas and Assessing Financial Strength

• Forms
• FAFSA
• Free
• Required at all Schools
• Perceived difficulty (FAFSA Simplification rolling out in 2024-25 will reduce the number of questions asked; Lowest income families will answer the fewest questions)
• CSS Profile
• Fee and Fee Waivers
• Utilized to award Institutional Aid at more selective private institutions
• Institutional Form

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Formula

• Process for assessing a family’s ability to contribute toward post secondary education is called:
• Needs Analysis

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• Begins with completing the FAFSA
• Results in an EFC (renamed SAI in 2024-25)
• Eligibility Index
• Rationing tool
• Family Share

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EFC

• Income
• Assets
• Family Size
• Age of the Older Parent
• Number of Dependent Children enrolled in College (going away in 2024-25)

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Determining Financial Need

• Aid is awarded on the full cost of attendance:
• Tuition*
• Room and Meals*
• Fees*
• Books and Supplies
• Travel to School
• Personal and Miscellaneous expenses

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*Direct Cost typically paid to the college or university

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Determining Financial Need

Examples of Financial Need

Public College

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Cost $ 27,330

EFC -$10,000

Need $ 17,330

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Source: The College Board

Trends in College Pricing and Student Aid

Average Estimated Budgets, 2021-22

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• Private College

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Cost $55,800

• EFC -$10,000
• Need $45,800

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Completing the FAFSA

To complete the FAFSA you will need to:

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• Apply for a FSA ID
• Email addresses associated with FSA ID accounts must be unique.
• Parent(s) must have his/her own FSA ID.
• FSA ID serves as electronic signatures for the FAFSA and promissory notes

https://studentaid.gov/fsa-id/create-account/launch

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Completing the FAFSA

• Gather your and your parent’s 2021 Federal tax information
• The FAFSA is student specific.
• Select the appropriate school year
• Complete all sections about you, your school plans and the financial information (use the IRS Data Retrieval Tool). (Direct data sharing between IRS and Department of Education in 2024-25)
• List your school code(s). You may list up to 10 schools on the electronic FAFSA.
• Provide electronic signatures (FSA IDs)
• Submit your information
• Keep copies for your records

https://studentaid.gov/h/apply-for-aid/fafsa

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Completing the FAFSA

Points to Remember:

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• The earliest you may file the FAFSA for the 2023-2024 school year

October 1, 2022

• Check with the colleges where you plan to apply for deadlines and institutional requirements
• Link to the IRS data Retrieval Tool
• Common errors: Forgetting to report untaxed income – payments to tax deferred pensions and retirement savings plans and untaxed portions of health savings accounts
• Child Support received
• Your student must re-apply for aid every year.
• Dependency Status
• Who is considered a parent? (changes to the parent that provides the most financial support in 2024-25)

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Completing the FAFSA

Here’s what happens after you file:

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• Your EFC is calculated
• Results are sent electronically to the college(s) you selected.
• You will receive a Student Aid Report (SAR).
• If you have extraordinary circumstances notify the Financial Aid Office.
• After you are admitted to a college, a financial aid award will be sent to you.
• You may be required to verify the information submitted on your FAFSA
• Using the IRS Data Retrieval Tool will simplify the process
• Non-Tax Filers must provide W-2s and IRS Verification of non-filing

(Does not apply to Dependent Students)

(Factors used to determine total income must be derived from the Federal Income Tax Return; Reduction in the number of applications selected for verification and will largely do away with verification of non-filing in 2024-25)

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Types of Aid

• Gift Aid
• Scholarships
• Grants
• Self Help
• Student Employment
• Loans

Scholarships

Merit-based

Academic

Talent

Athletic

Service

ROTC

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Private:

Fastweb fastweb.com/

BigFuture bigfuture.collegeboard.org/scholarship-search

Grants

Need-based

Federal Grants

Pell

(How the Pell Grant is calculated will be changing in 2024-25: Anticipate more students will be Pell eligible and those that are eligible will on average receive larger grants)

SEOG

TEACH

State Grants

Wisconsin Grant

Institutional Grants

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Employment

• Two Types:
• Federal Work Study
• Regular Campus Employment

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• Can be used for personal expenses
• Does not adversely affect grades

Student Loans

Federal Stafford

Subsidized

Unsubsidized

(anyone can borrow)

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Freshmen - $3500

Sophomores - $4500

Juniors/Seniors - $5500

Additional Unsub $2000/year

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6 month Grace Period

10 year Standard Repayment

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Other Options

• Parent PLUS Loan
• Student Alternative Loans – Private Lenders
• Private Scholarships
• Must be reported to the school
• Payment Plan
• Tax Credits
• 529 Plans

Resources

• Net Price Calculators
• Early Financial Aid Estimation Tool
• On every College Website
• Cost –Grants & Scholarships = Net Price
• Websites

General Information

• studentaid.ed.gov
• consumerfinance.gov/paying-for-college
• bigfuture.collegeboard.org

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Resources

• Websites cont.

College Cost Comparison Tools

• nces.ed.gov/collegenavigator/
• bigfuture.collegeboard.org/compare-colleges
• consumerfinance.gov/paying-for-college/compare-financial-aid-and-college-cost/

Award Letter Comparison Tools

• bigfuture.collegeboard.org/pay-for-college/financial-aid-awards/compare-aid-calculator

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Resources

Websites Cont.

Scholarship Search Engines

• fastweb.com
• bigfuture.collegeboard.org/scholarship-search

College Goal Wisconsin

• Virtual events scheduled on the following evenings:
• October 5,12,19,& 26
• In-person events scheduled on the following evenings:
• October 3, 4, 6,10,11,12,13,17,18, 20, 24, 25, 26,27 & November 1,3,7,14,15
• Free assistance with completing the paper or on-line FAFSA
• collegegoalwi.org

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Additional Information

• Marquette University
• Office of Student Financial Aid
• 414.288.4000

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• marquettecentral@marquette.edu
• Website: www.marquette.edu/mucentral

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