Financial Aid 101 Brought to you by AAA

Financial Aid 101 Brought to you by: AAA Northeast Presented by: Donald Kerr

How to Contact Us WELCOME Presented by: Donald Kerr Fin. Aid@AAAnortheast. com dkerr@aaanortheast. com 401 -868 -2000 ext. 2433 401 -323 -2292 www. AAA. com/Financial. Aid 1 -888 -422 -2536

Agenda • Financial Aid Overview • Types of Financial Aid • Prepare to Apply • How to Apply • Financial Aid Process • Funding College Tuition • Cost Cutting Ideas

Merit Aid vs. Financial Aid Merit Aid Financial Aid • Based on students household financials • Based on budgets – Athletics – Academics – Demographics • Accounted for in the college admissions process – School – State – Federal • Focus of this presentation

What is Financial Aid? FINANCIAL AID is a combination of Grants, Scholarships, Employment, and Loans that help fund a college education. Funds Come From: Federal | State | College | Other Sources

Who Can Get Aid? Everyone!!!! You Must: ü Be a Citizen or Eligible non-citizen of the US ü Have a High School Diploma, GED ü Be Enrolled at Least Half-Time ü Register with Selective Service (18 -25) ü Maintain Satisfactory Academic Progress (SAP) as determined by your school

Up to 3 Forms Needed! 1. FAFSA Free Application for Federal Student Aid • Required by ALL Colleges • Gateway to Federal, State, & Institutional Aid • FREE to File 2. CSS PROFILE • Required by 250 Mostly Private Colleges • Gateway to College Aid • NOT FREE to File at www. College. Board. com $25/ $16 3. Institutional Form • May be Required by Some Colleges • Free to File

Financial Aid Timeline - New Timeline Oct 1 st File PROFILE Oct-Feb Oct-March File FAFSA Jan-March Receive Acceptance Jan-March Traditional Timeline *Award Letters* March-April Accept May Fund June-Aug

Types of Aid? Gift Aid (based on need and merit) • Scholarships • Grants • Awards • • Self-Help Aid Work-Study Federal Loans State Loans Private Loans

Types of Aid- Grants & Scholarships Grants/Awards • Need Based Mostly • Does Not Get Repaid • Funds from- Colleges, Federal, & State Sources Scholarships • Based on Various Criteria • Does Not Get Repaid • Funds from- Colleges, Federal & State Sources

Types of Aid- Self-Help Aid • • Federal Work-Study Program Provides part-time employment while enrolled in college Helps pay for everyday expenses Available to Full-Time & Part-Time Students Based on Financial Need

Types of Aid-Loans Federal Loans • Direct Loan • PLUS Loan for Parents • Grad PLUS Loan for Graduate & Professional Students Private Loans • State Loans • Lender Specific Loan

Prepare to Apply- 4 Steps 1. Create a Financial Aid folder 2. Apply for a Federal user ID and password www. fsaid. ed. gov 3. Gather information needed 4. Research Financial Aid Deadlines § § RI- March 1 st MA, ME, NH, NY- May 1 st CT- Feb 15 th, VT- No State Deadline Check each colleges Deadline also! ALWAYS ABIDE BY THE EARLIEST DEADLINE

Create a Financial Aid Folder – Step 1 What goes into a Financial Aid Folder? 1. 2. 3. 4. FSA ID’s***** FAFSA Output Loan Paper Work Copy of Borrower Benefits offered at time of Loan 5. Communication from the College 6. Award Letters

Federal Student Aid ID – Step 2 Apply for FSA ID’s for each Student and at least one parent ü Sign FAFSA ü Sign Federal Loans ü Access your Federal Grant & Loan Information Online www. FSAID. ed. gov

Federal Student Aid ID – Step 3 Gather all the information needed to apply To complete the 2020 -2021 FAFSA, you will need: 2018 income tax returns for parent(s) and student 2018 W-2 forms for parent(s) and student 2018 untaxed income figure for parent(s) and student Approximate dollar amount of parent(s) and student assets (i. e. stocks, bonds, real estate. DO NOT include home equity, 401 K or life insurance) • Current balances on checking and savings accounts for parent(s) and student • Demographic information (including SSNs and DOBs) for parent(s) and student • •

Research Deadlines – Step 4 • Visit each colleges website and look for the priority filing date under the financial aid section. • This may be broken down by admission schedule: early action and regular decision • Research the state deadline on the FAFSA website • Do not worry about the Federal deadline • Always abide by the earliest deadline • The earlier the better

Where to Apply! File the FAFSA ü ü Online File on or after Oct. 1 st File by School Deadlines All HS Seniors FAFSA HELP: ü FAFSA Line by Line @ AAA. com/Register Note: FAFSA should be filed each year! www. FAFSA. ed. gov

How to Apply- What is Asked? ü Language is direct to Student ü Not recommended for Student to fill out forms ü Q’s about Parent’s Income, Assets, & Demographic information ü Use Parental email in place of Student email ü Divorced or Separated use financial information of Parent lived with most in last 12 months ü Remarried you will need to report Step-Parents information ü Does NOT matter who claims student ü Directions on where to pull information from on RIGHT side of webpage. Example: AGI on line 37 of 1040.

How to Apply- What is Included? • • Included Other Real-estate Trust Funds UGMA & UTMA Accounts Money Market Mutual Funds not in a retirement Plan CD’s, Stock Options, Bonds, and other Investments 529 Plan- Use current value under Parental Asset Commodities, etc… NOT Included • Home live in • Value of Life Insurance • Retirement Plans: Pension Funds, 401 K, 403 b, Annuities, Non. Education IRA’s, Keogh Plans, etc…

How to Apply- Special Circumstances Contact College Directly About: ü Substantial Income Changes NOT reported on FAFSA ü Send Written Explanation to FAO ü College will review Special Circumstances • May request Additional Documentation • Decisions are final and cannot be appealed to US Department of Education

The Financial Aid Process What happens after I file my FAFSA? 1. Department of Education receives data 2. FAFSA data will be sent to each school you listed on the FAFSA 3. Schools will use FAFSA data to create Financial Aid Award Letters 4. Financial Aid Award Letters will be sent out in spring via mail, email, or online

How to Apply- EFC Defined ü ü ü EFC = Expected Family Contribution Amount Family can reasonably contribute Stays the same regardless of College Two Components Calculated using data from FAFSA form and a Federal Formula (FM)

The Financial Aid Process- EFC How is EFC used: • The EFC is used to calculate your Financial Need • Total Cost of Attendance • Minus EFC • Equals Financial Need Cost of Attendance COA - Expected Family Contribution EFC = Financial Need

The Financial Aid Process- Award Letters Financial Aid Award § Award Letters will be sent in the Spring typically via mail, email, or online portal § Compare Awards § Can sometimes negotiate § Accept, Deny, or Appeal Awards by May 1 st – Can Extend Deadlines sometimes

Financial aid estimates How much will it cost us? § Net price calculators § Found on schools websites § FAFSA 4 Caster § Government calculator to estimate your aid § Calculates your EFC estimate § FAFSA. ed. gov on the bottom left of page

Where to apply for CSS profile if needed! File the CSS PROFILE ü Online ü File by College Deadline! ü Can be Oct 1 st ü List of 250 College Note: Profile schools also require the FAFSA but use different methods and look at more financial information to award aid. Usually only done freshman year www. College. Board. com

Funding College Tuition Core Funding Principals 1. Past Income- Savings, college funds, and other investments. Always consult your financial advisor to ensure you will not using investments which carry penalties or tax implications. 2. Present Income- Tuition Payment Plans or cash down payments. 3. Future Income- Federal loans, Institutional loans, and Private loans. 4. Tax Deductions & Credits- Use any tax deductions or credits each year! Publication 970 at www. IRS. gov.

Funding College Tuition Federal Direct Loan • Borrower: Student • Fixed Rate • Unsubsidized 4. 53% • Subsidized 4. 53% • 10 year term • Federal Fees 1. 059% • Repayment begins 6 months after graduation, drop out, or below ½ time NO CREDIT CHECK

Funding College Tuition School Year Dependent Student Independent Students Year 1 $5, 500 (up to $3, 500 $9, 500 (up to $3, 500 can Year 2 $6, 500 (up to $4, 500 $10, 500 (up to $4, 500 Year 3 $7, 500 (up to $5, 500 $12, 500 (up to $5, 500 Year 4 $7, 500 (up to $5, 500 $12, 500 (up to $5, 500 Graduate can be subsidized) be subsidized) can be subsidized) $20, 500 (up to $8, 500 can be subsidized)

Funding College Tuition Federal PLUS Loan • Borrower: Parent, Legal Guardian, or Graduate student • Fixed Rate 7. 08% (2019 -2020) • 10 year term • Federal Fees 4. 36% • Repayment begins 60 day after last disbursement • Loan payment can be deferred until 6 months after student Graduates CREDIT CHECK REQUIRED

Funding College Tuition – Private Student Loans Who is the Borrower? Parent or Student and Parent What is the interest rate? variable or fixed, basis Any Fees? Origination, application and prepayment Repayment terms? Interest only, deferred and number of years 5, 7, 10, 15 • REWARDS or benefits offered! • Example: AAA Advantage loan offers 3% original principle balance reduction with proof of Graduation • Visit AAA. com/financialaid for private loan options • •

Cost Cutting Ideas u Directly Reduce Tuition Bill § In-state, Regional, Sibling, Reciprocity and Legacy discountswww. NEBHE. org u Reduce Long-Term Cost § AP & CLEP Exams u Room & Board Options § Commuter, off-campus, RA and cheaper meal plans u Books & Supplies Options § Used or online deals u Tax Credits IRS Pub 970� u Scholarship Searching

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