Financial Aid

Irma Navarro Brown

Associate Director of College Counseling

The Lovett School, Atlanta, GA

Chris Pinto

Assistant Director of Admissions

The University of Alabama at Birmingham

What are you asking prospective students to take on when they matriculate at your institution?

FINANCIAL AID EDITION*

$100

A. $45,756

What is the average undergraduate cost of tuition, fees, room, and board at a private 4-year institution?

B. $48,023

C. $35,537

D. $41,468

A. $45,756

What is the average undergraduate cost of tuition, fees, room, and board at a private 4-year institution?

B. $48,023

C. $35,537

D. $41,468

$19,488

average undergraduate cost of tuition, fees, room, and board at public 4-year institution (in-state) 2016-17

Source: National Center for Education Statistics

$35,537

average undergraduate cost of tuition, fees, room, and board at public 4-year institution (out-of-state) 2016-17

ource: National Center for Education Statistics

$41,468

average undergraduate cost of tuition, fees, room, and board at private 4-year institution 2016-17

Source: National Center for Education Statistics

$200

A. $26,946

What is the average federal student loan balance of a student

at a four-year public school upon graduation?

B. $19,861

C. $23,512

D. $29,214

A. $26,946

What is the average federal student loan balance of a student

at a four-year public school upon graduation?

B. $19,861

C. $23,512

D. $29,214

$26,946

average federal student loan balance of a student

at a four-year public school upon graduation

Source: StudentLoans.gov

$29,214

average federal student loan balance of a student

at a four-year private, not-for-profit school upon graduation

Source: StudentLoans.gov

$50,516

overall average starting salary for a 2017 college graduate with a bachelor’s degree

Source: National Association of Colleges and Employers

Repayment Estimator

Loan $26,946

Accrued Interest (Standard Plan) $5,639

Total Debt $32,585

120 monthly payments of $272

In other words...

Let’s Budget…

Source: StudentLoans.gov, Tax Foundation, Louisiana Department of Revenue, NOLA.com, USDA, Quiken, LendeduAnnual

Gross Salary $50,516

Retirement (3%) $ 1,516

“Rainy Day” Savings (3%) $ 1,516

Federal Income Tax (18%) $ 8,769

State Income Tax (4%, LA) $ 1,960

12 Monthly Student Loan Payments $ 3,264

Annual Net Income $33,491

Monthly Net Income $ 2,791

Cost of Living

Rent (30%)

Utilities (10%)

Food (15%)
Transportation (10%)

Insurance (15%): Health (6%), Dental, Car (5%), Renters

Miscellaneous (15%)

Financial Aid

$300

A. Tuition, Fees, Room & Board

Which of the following is generally not included in the cost of attendance?

B. Books, Supplies & Transportation

C. Summer Study Abroad

D. Personal Expenses

A. Tuition, Fees, Room & Board

Which of the following is generally not included in the cost of attendance?

B. Books, Supplies & Transportation

C. Summer Study Abroad

D. Personal Expenses

Eligibility

FAFSA4caster

For anyone who is not yet ready to submit a FAFSA form (high school juniors, and even as early as middle school)

Parents can receive early estimates, create scenarios based on future earnings, and then establish college funding strategies

Adult students also can use FAFSA4caster to get an idea of what aid they might receive.

Net Price Calculator

$500

A. Federal Application For Student Assistance

What does FAFSA stand for?

B. Free Application for Federal Student Aid

C. Federal Application for Scholarship Aid

D. None of the above

A. Federal Application For Student Assistance

What does FAFSA stand for?

B. Free Application for Federal Student Aid

C. Federal Application for Scholarship Aid

D. None of the above

(not fas-fa)...FAF-SA

$1,000

A. Adjusted gross income

Which of the following is the primary measure used in Federal Methodology, or federal need analysis, to determine eligibility for federal aid programs?

B. Business income and losses

C. Wages, interest & dividend income

D. All of the above

A. Adjusted gross income

Which of the following is the primary measure used in Federal Methodology, or federal need analysis, to determine eligibility for federal aid programs?

B. Business income and losses

C. Wages, interest & dividend income

D. All of the above

Federal

Methodology

Institutional

Methodology

How to Fill Out the FAFSA

CSS Profile Video

Adjusted gross income is the primary measure used in Federal Methodology or the federal need analysis to determine eligibility for federal aid programs while Institutional Methodology considers income more comprehensively. Examples include wages, interest and dividend income, and business income and losses. Legitimate adjustments allowed in the tax system can reduce the adjusted gross income significantly. When reviewed in Institutional Methodology, a family with a low adjusted gross income that receives federal financial aid may actually be well positioned financially to pay for higher education costs.

IM considers all assets for families while Federal Methodology does not.

IM is also more reasonable in assessing a middle-income family‘s ability to contribute to educational costs.

Institutional Methodology (IM): The College Board's need-analysis system developed by financial aid practitioners and economists, IM provides a comprehensive evaluation of a family's ability to pay for the costs of higher education.

CSS Profile: Developed by the College Board to manage the financial aid

Nearly 400 colleges, universities, professional schools, and scholarship programs use CSS Profile

Institutional Documentation Service (IDOC): Allows colleges access applicants' financial data electronically

Over 85 institutions currently use IDOC

PowerFAIDS is a software solution that provides INAS and Institutional Methodology and other comprehensive financial aid management tools to colleges.

Our Institutional Need-Analysis System (INAS) is the engine that processes calculations and formulas embedded within IM.

$2,000

A. 2017 Federal Income Tax Returns

In addition to W-2 forms and other records of current income, records of untaxed income and benefits for the current and previous tax years, current bank statements, and records of savings, stocks, bonds, trusts, etc., the 2019-20 CSS Profile requires:

B. 2018 Federal Income Tax Returns

C. Both A and B

D. Neither A nor B, the W-2s are sufficient record of income

A. 2017 Federal Income Tax Returns

In addition to W-2 forms and other records of current income, records of untaxed income and benefits for the current and previous tax years, current bank statements, and records of savings, stocks, bonds, trusts, etc., the 2019-20 CSS Profile requires:

B. 2018 Federal Income Tax Returns

C. Both A and B

D. Neither A nor B, W-2 forms are sufficient record of income

Financial Aid Application Timeline

October 1

FAFSA & CSS Profile become available

FAFSA

financial and tax information from the prior prior year

CSS Profile

financial and tax information from the prior year & the prior prior year

Students are encouraged to submit the CSS Profile no later than two weeks before the EARLIEST priority filing date specified by individual colleges.

2019 CSS Profile Student Guide

CSS Profile Video

$4,000

A. Meet Demonstrated Need

Under which admission policy are admission decisions made without considering the financial aid circumstances of applicants?

B. Need-blind

C. Priority Application

D. Early Decision

A. Meet Demonstrated Need

Under which admission policy are admission decisions made without considering the financial aid circumstances of applicants?

B. Need-blind

C. Priority Application

D. Early Decision

Need Blind, Need-Sensitive, Need-Aware

Who?

Domestic, International

When?

Early Decision

Regular Decision

Wait List

The purpose of scholarships

Accessibility

Affordability

Yield

Inflated costs of attendance

Colleges sometimes use scholarships to incentivise (full-pay) admitted students - hire consulting firms

Only 18 schools among ranked National Universities and National Liberal Art Colleges reported meeting full financial need for each admitted student with a no-loans policy, according to data submitted by ranked institutions in an annual survey to U.S. News. There are other schools that limit grant-only aid awards to students from lower- or moderate-income households.

$8,000

A. 50%

What percentage of full-time undergraduate students are employed?

B. 12%

C. 78%

D. 43%

A. 50%

What percentage of full-time undergraduate students are employed?

B. 12%

C. 78%

D. 43%

Types of Financial Aid

Gift Aid

Grants

Federal, state, institutional

Scholarships

Merit, need-based, athletic, departmental

Special Programs (ROTC, Bonner)

Self Help

Family Contribution

529 Savings Plan

Loans

Federal, state, private

Work Study

Employment (J-O-B)

Glossary

FSA ID

Student Aid Report (SAR)

Estimated Family Contribution (EFC)

Demonstrated Need

Gap

Stacking

$16,000

A. Direct PLUS Loans

Which type of loan has slightly better terms for students with financial need?

B. Direct Subsidized Loan

C. Federal Pell Grant

D. Direct Unsubsidized Loan

A. Direct PLUS Loans

Which type of loan has slightly better terms for students with financial need?

B. Direct Subsidized Loan

C. Federal Pell Grant

D. Direct Unsubsidized Loan

Available to undergraduate students with financial need.

School determines the amount student can borrow, and the amount may not exceed the financial need.

The U.S. Department of Education pays the interest:

  • while student is in school at least half-time,
  • for the first six months after student leaves school (referred to as a grace period*), and
  • during a period of deferment (a postponement of loan payments).

Available to undergraduate and graduate students; there is no requirement to demonstrate financial need.

School determines the amount student can borrow based on the cost of attendance and other financial aid received.

Student is responsible for paying the interest during all periods.

If student chooses not to pay the interest while in school and during grace periods and deferment or forbearance periods, the interest will accrue (accumulate) and be capitalized (that is, the interest will be added to the principal amount of the loan).

Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. The U.S. Department of Education offers eligible students at participating schools Direct Subsidized Loans and Direct Unsubsidized Loans. (Some people refer to these loans as Stafford Loans or Direct Stafford Loans.)

Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school.

Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but eligibility is not based on financial need.

Loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid.

Eligibility is not based on financial need, but a credit check is required.

Borrowers who have an adverse credit history must meet additional requirements to qualify.

Undergraduate Direct Subsidized Loans - 5.05%

Undergraduate Direct Unsubsidized Loans - 5.05%

Parent Direct PLUS Loans - 7.6%

Graduate or Professional Direct Unsubsidized Loans - 6.6%

$32,000

A. $5,095

Federal Pell Grants usually are awarded only to students who display exceptional financial need. What is the maximum award for the 2019-20 award year?

B. $4,985

C. $7,625

D. $6,195

A. $5,095

Federal Pell Grants usually are awarded only to students who display exceptional financial need. What is the maximum award for the 2019-20 award year?

B. $4,985

C. $7,625

D. $6,195

The amount you get, though, will depend on

  • your Expected Family Contribution,
  • the cost of attendance (determined by your school for your specific program),
  • your status as a full-time or part-time student, and
  • your plans to attend school for a full academic year or less.

Administered directly by the financial aid office at each participating school. Not all schools participate.

Students can receive between $100 and $4,000 a year, depending on their financial need, when they apply, the amount of other aid they get, and the availability of funds at the school.

Each participating school receives a certain amount of FSEOG funds each year from the U.S. Department of Education’s office of Federal Student Aid. Once the full amount of the school’s FSEOG funds has been awarded to students, no more FSEOG awards can be made for that year.

Teacher Education Assistance for College and Higher Education (TEACH) Grants

Iraq and Afghanistan Service Grants

Federal Work Study

$64,000

A. Parents are unable to contribute towards student’s education costs

Applicants for federal student aid may be considered “independent” if they meet which of the following criteria?

B. Currently serving on active duty

C. Parents do not claim student as a dependent on their tax returns

D. Student is paying for his/her own bills and educational expenses

A. Parents are unable to contribute towards student’s education costs

Applicants for federal student aid may be considered “independent” if they meet which of the following criteria?

B. Currently serving on active duty

C. Parents do not claim student as a dependent on their tax returns

D. Student is paying for his/her own bills and educational expenses

Independent Student:

  • >24 years-old
  • Married/Separated
  • Master’s or doctorate degree
  • Children
  • Dependents
  • Active duty
  • U.S. Armed Forces Veteran
  • Foster Care/Ward of the State
  • Emancipated minor/Legal guardianship
  • Homeless

Dependency Status

The federal student aid programs are based on the concept that it is primarily your and your family’s responsibility to pay for your education. A dependent student is assumed to have the support of parents, so the parents’ information has to be assessed along with the student’s, in order to get a full picture of the family’s financial strength. If you’re a dependent student, it doesn’t mean your parents are required to pay anything toward your education; this is just a way of looking at everyone in a consistent manner.

All applicants for federal student aid are considered either “independent” or “dependent.”

INDEPENDENT STUDENT

If you answer YES to ANY of these questions, then you may be an independent student. You may not be required to provide parental information on your Free Application for Federal Student Aid (FAFSA) form.

DEPENDENT STUDENT*

If you answer NO to ALL of these questions, then you may be considered a dependent student and may be required to provide your parents’ financial information when completing the FAFSA form.

*If you don’t answer “yes” to any of the questions above, you’re still considered a dependent student for purposes of applying for federal student aid even if you don’t live with your parents, are not claimed by your parents on their tax forms, or are paying for your own bills and educational expenses.

For more information, visit StudentAid.gov/dependency.

$125,000

A. Research and compare academic programs at different colleges

What is the purpose of the Academic Common Market?

B. Search transfer course equivalencies

C. Study a specialized field at an out-of-state college & pay in-state tuition

D. Both A and B

A. Research and compare academic programs at different colleges

What is the purpose of the Academic Common Market?

B. Search transfer course equivalencies

C. Study a specialized field at an out-of-state college & pay in-state tuition

D. Both A and B

Academic Common Market

Study in a specialized field at an out-of-state college and pay in-state tuition rates

More than 1,900 undergraduate and graduate degree programs in 15 states

To qualify, you must:

  • Be a resident of one of 15 participating SREB states
  • Select a program eligible for residents of your home state
  • Complete the admission process at the institution that offers the program
  • Be certified as a resident of your home state by contacting your state’s ACM coordinator

State-Specific Resident Scholarship Programs

Outside Scholarships & Stacking

$250,000

  • International Certification of Finances

In addition to completing the CSS Profile, international students applying for financial aid usually submit which form?

B. FAFSA

C. Form I-20 “Certificate of Eligibility for Nonimmigrant Student Status”

D. Form I-821D Consideration of DACA

A. International Certification of Finances

In addition to completing the CSS Profile, international students applying for financial aid usually submit which form?

B. FAFSA

C. Form I-20 “Certificate of Eligibility for Nonimmigrant Student Status”

D. Form I-821D Consideration of DACA

International & Undocumented Students

Need-blind vs. Need-aware

F-Visa

Dual citizenship

Deferred Action for Childhood Arrivals

Undocumented

CSS Profile

International Student Financial Aid Application

International Certification of Finances

FAFSA (PDF)

On June 15, 2012, the Secretary of Homeland Security announced that certain people who came to the United States as children and meet several guidelines may request consideration of deferred action for a period of two years, subject to renewal. They are also eligible for work authorization. Deferred action is a use of prosecutorial discretion to defer removal action against an individual for a certain period of time. Deferred action does not provide lawful status.

$500,000

  • October 1

What is the earliest deadline colleges may require first-year candidates to submit an application for fall admission?

B. October 15

C. November 1

D. None of the above

A. October 1

What is the earliest deadline colleges may require first-year candidates to submit an application for fall admission?

B. October 15

C. November 1

D. None of the above

October 15: This date is the earliest deadline colleges may require first-year candidates to submit an application for fall admission. Members must give equal consideration to all applications received by that date.

However, they may accept applications on a rolling basis earlier than that.

Deadlines

Admission

Special Programs

Honors

BS/MD

BSN

Need-based financial aid

Scholarships

Housing

Enrollment

$1 MILLION

A. Admission & Financial Aid

Colleges must honor which of the following through May 1, also known as National Candidates Reply Date?

B. Scholarship

C. Admission, Financial Aid & Scholarship

D. Admission

A. Admission & Financial Aid

B. Scholarship

C. Admission, Financial Aid & Scholarship

D. Admission

Colleges must honor which of the following through May 1, also known as National Candidates Reply Date?

May 1—National Candidates Reply Date

“Colleges must permit first-year candidates for fall admission to choose among offers of admission and institutional financial aid and scholarships until May 1.

Binding Early Decision plans and recipients of athletic scholarships are recognized exceptions.”

NACAC’s Code of Ethics and Professional Practices

IRMA

NACAC’s Code of Ethics and Professional Practices

Agreed upon dates and deadlines

a. October 15: This date is the earliest deadline colleges may require first-year candidates to submit an application for fall admission. Members must give equal consideration to all applications received by that date.

b. Notification of admission: Members must not notify first-year candidates of their fall admission before the official completion of their junior year of secondary school or its equivalent.

c. Notification of financial aid: Colleges must notify accepted aid applicants of financial aid decisions at least two weeks before the institutional enrollment confirmation deadline, so long as the candidates have submitted all requested application forms and supporting materials by the designated priority deadline. Notification requirements for wait list procedures are a recognized exception.

d. May 1—National Candidates Reply Date: Colleges must permit first-year candidates for fall admission to choose among offers of admission and institutional financial aid and scholarships until May 1. Binding Early Decision plans and recipients of athletic scholarships are recognized exceptions.

e. August 1—Waitlisted candidates: This is the final date for notifying all candidates waitlisted for fall admission of the results of the wait list.

The May 1 National Candidates Reply Date

a. Colleges must state the May 1 deadline explicitly in their offers of admission and clearly indicate whether deposits submitted prior to May 1 are refundable or non-refundable. Making a deposit refundable, however, still obligates a college to abide by the May 1 National Candidates Reply Date.

b. Colleges will honor their admission, scholarship, and financial aid commitments to students and will not adversely alter their offers prior to May 1 for candidates who choose not to reply until that date. Nor will they state or imply that candidates might incur such a penalty by waiting until May 1 to submit an enrollment deposit.

c. The May 1 deadline also applies to any academic major, institutional scholarship, or special program to which the candidate has been offered admission. Examples of special programs may include honors programs and dual-enrollment graduate or professional degree programs.

d. The May 1 deadline also applies to summer session enrollments if the student is a fall applicant who is required to enroll in summer classes as a condition of fall enrollment.

CHRIS--Reference Compare Your Aid Award Tool and then transition to next slide (clearer visual).

What are you asking prospective students to take on when they matriculate at your institution?

Private #1

Private #2

Private #3

Public U.

Total Cost

$64,848

$67,500

$45,000

$30,000

Family Contribution

$15,000

$10,000

$15,000

$15,000

Financial Need

$49,848

$57,500

$30,000

$15,000

Merit Aid

$0

$0

$15,000

$0

Need-based grant

$47,748

$55,500

$0

$10,000

Student loan

$0

$0

$5,500

$3,500

Work Study

$2,100

$2,000

$1,800

$1,500

Total Aid

$49,848

$57,500

$22,300

$15,000

Unmet Need

$0

$0

$7,700

$0

Total Paid

$15,000

$10,000

$22,700 + loan + interest

$15,000 + loan + interest

CHRIS

Comparing Aid Awards

Difficult Conversations About Value

Key Terms to Know:

What students and families may expect you to know regardless of how much you work with financial aid.

  • Adjusted Gross Income (AGI)
  • Award Amount
  • Award Letter
  • Award Year
  • Cost of Attendance (COA)
  • Deferment
  • Direct Loan
  • Enrollment Status
  • Expected Family Contribution (EFC)
  • FAFSA
  • Federal Pell Grant
  • Federal School Code
  • Gift Aid

Federal Student Aid

Federal Student Loan

Federal Work-Study

Financial Aid Package

Financial Need

FSA ID

Grant

Merit-based/Need-based

PLUS Loan

Scholarship

Student Aid Report (SAR)

Subsidized Loan

Unsubsidized Loan

Work-Study

CHRIS & IRMA

Resources

Irma Janeth Navarro Brown

Associate Director of College Counseling, The Lovett School

irma.navarrobrown@lovett.org

Chris Pinto

Assistant Director of Admissions, The University of Alabama at Birmingham

cpinto@uab.edu

Financial Aid - Google Slides