101 DeMystifying the Process John Iacovelli Dean of Enrollment Management Richard Stockton College of New Jersey Goal of Financial Aid Primary goal is to assist students in paying for college and is achieved by ID: 492326
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Financial Aid 101De-Mystifying the Process
John
Iacovelli
Dean of Enrollment Management
Richard Stockton College of New JerseySlide2
Goal of Financial AidPrimary goal is to assist students in paying for college and is achieved by:Evaluating family’s ability to pay for educational costsDistributing limited resources in an equitable mannerProviding a balance of gift aid and self-help aidSlide3
Sources of AidFederalStateThe University/CollegePrivateCivic organizations (i.e., local Rotary Club, parent’s employer, high school awards, etc.)Slide4
Types of Financial AidScholarshipsGrantsLoansEmployment OpportunitiesSlide5
Merit-Based Aid vs. Need-Based AidMerit-Based Aid - aid given to students strictly on the basis of merit. May be based on: Academic recordSpecial characteristicsSkills or talentsInvolvementDoes not have to be repaid; may be renewable from year to year.Need-Based Aid
-
aid awarded to students on the basis of financial need. Re-evaluated each year as financial situations may change.Slide6
Need-Based AidGift AidGrantsSelf-helpLoansEmploymentSlide7
GrantsFederalPELLSEOGStateTAGEOFInstitutionalPrivate Grants and ScholarshipsSlide8
LoansFederal Perkins LoanFederal Direct Loan ProgramSubsidized Stafford Loan (4.50%) Unsubsidized Stafford Loan (6.80%) PLUS (7.9%)Loan Limits: First-year students – $3,500Second-year student – $4,500
All other grade levels remain at $5,500
All students eligible for additional $2000 of unsubsidized loan.
NJCLASS Supplemental Loan Program
7.59% - fixed 7.09% with ACHSlide9
Merit-Based AidState ProgramsDistinguished ScholarshipUrban ScholarshipNJ STARS & NJ STARS IIInstitutional AwardsAcademic ScholarshipsAthletic Scholarships
Not funded for Fall 2010Slide10
Application ProcessSubmit the Free Application for Federal Student Aid (FAFSA) prior to the college’s deadlineTo ensure maximum consideration for federal, state, and institutional aid, check information from each college to determine:Required application materials Application deadlinesSlide11
General Eligibility RequirementsMust have a valid Social Security NumberMay not be in default on a federal student loanMay not owe repayment of a federal grantMust be making satisfactory academic progress as defined by the schoolSlide12
General Eligibility RequirementsMust be enrolled or accepted for enrollment in an eligible program of studyMust be pursuing a degree, certificate, or other recognized credentialMust be a U.S. citizen or eligible noncitizenMust be registered with Selective Service Slide13
Free Application for Student Aid(FAFSA)FAFSA on the Web at www.fafsa.ed.govCollects family’s personal and financial information used to calculate the student’s EFC Slide14
To Register for a Pin:www.pin.ed.govSlide15
A FAFSA Must Be Filed on the WebSlide16
Common Mistakes Madeon the FAFSACorrect name, social security #, birth dateNumber of people in the householdDivorced/remarried householdsTaxes paid vs. taxes withheld
Parental and student assets
Worth of a second home
“Zero is a number”
Please note: 2009-10 FAFSA expands definition for independent student (emancipated minor).Slide17
Definition of Need Cost of Attendance (COA)– Expected Family Contribution (EFC)= Financial NeedSlide18
What is EFC?Basis of financial aid packageEFC is determined by a federal formula that calculates need via the FAFSAEFC & Financial Need are guidelines used by schools to determine a financial aid packageEFC not necessarily equal to the out-of-pocket cost of the familySlide19
Cost of AttendanceTuition and feesRoom and boardBooks and supplies, equipment, transportation, and miscellaneous personal expensesStudy abroad costsDependent care expensesExpenses related to a disabilityExpenses for cooperative education programSlide20
Need Varies Based on Cost
X
Y
Z
Cost of
Attendance
(Variable)
Expected Family
Contribution
(Constant)
Need
(Variable)
1
2
3
EFC
EFCSlide21
The Cycle of Financial AidJan-March Student /Parents complete FAFSAMarch-April School sends award letter
June-July
School sends Fall semester billSlide22
CAUTION!Avoid being charged a fee to file the FAFSACompleting and processing the FAFSA is FREEWhen filing FAFSA, make sure you go directly to: www.fafsa.ed.govContact the financial aid office if you need help in completing the FAFSASlide23
Where Do I Go From Here?Obtain and review admission and financial aid materials from each school to which you are applyingMeet all application deadlinesComplete FAFSA and any other application materials required by the school (i.e., CSS Profile)Investigate ALL sources of aidSlide24
HESAA ServicesWeb Sitewww.hesaa.orgFinancial Aid Hotline800-792-8670 8:00 am – 8:00 pm Monday thru Thursday 8:00 am – 5:00 pm Friday
NJBEST
Mapping-Your-Future.orgSlide25
Additional ResourcesServices and Forms: Fin Aid! “The SmartStudent Guide to Financial Aid” www.finaid.org USDE Publications
www.studentaid.ed.gov/students/publications/FYE/index.html
FastWeb
www.fastweb.com
FAFSA on the Web
www.fafsa.ed.gov
U.S. Department of Education PIN
www.pin.ed.gov
Mapping Your Future
www.mapping-your-future.orgSlide26
Additional ResourcesEFC Calculators:College Board www.collegeboard.com/payingFin Aid! “The SmartStudent Guide to Financial Aid” www.finaid.org
Organizations and Agencies:
United States Department of
Education
www.ed.gov
National Association of Student Financial Aid Administration (NASFAA)
www.nasfaa.org