What is Financial Aid?
Financial aid is funding used to assist students and families to pay for postsecondary educational expenses.
What is Cost of Attendance (COA)?
- Billable costs
- Non-billable costs
- Varies from college to college
May include:
- Tuition and fees
- Room and board
- Books
- Travel
- Miscellaneous expenses
What is the Expected Family Contribution (EFC)?
- Calculated using data from the federal application form (FAFSA) and federal formula. It is used to determine student aid eligibility.
- For the 2017-18 academic year, the FAFSA may be filed beginning Oct. 1, 2016.
- Amount family can reasonably be expected to contribute
- Stays the same regardless of college
Five factors considered in calculating the EFC:
- Income
- Assets*
- Household size
- Number of students in college
- Age of older parent
*Examples of Assets include: 529 Savings Plan**, Educational IRA accounts, prepaid tuition plan, trusts, inheritance, stocks, cash, mutual funds.
**These accounts are reported as parental investments on the FAFSA, including all accounts owned by the student and all accounts owned by the parents for any member of the household.
What is Financial Need?
Cost of Attendance (COA) minus Expected Family Contribution (EFC) = Financial Need
Completing the FAFSA
- Create an FSA ID and password at: https://studentaid.gov/fsa-id/create-account/launch
- The FSA ID will provide access to certain U.S. Department of Education websites
- Both the student and a parent need an FSA ID and password to electronically sign the FAFSA
- Provide a valid email address for the Student Aid Report (SAR) to be emailed in 3-5 days
Who completes the FAFSA
- All U.S. citizens or eligible non-citizens should complete the FAFSA
- Report information on both biological/adoptive parents if they live together (even if not married)
- If parents are divorced/separated, list the parent the student lives with most (and step-parent, if remarried) & child support from the noncustodial parent
Documents used to complete the FAFSA:
- Federal Income Tax Returns (IRS Data Retrieval)
- W-2’s
- Driver’s license & SSN
- Records of untaxed income
- Child support received/paid
- Workers compensation
- Current bank statements
- Business & farm records
- Records of stocks, binds & investments
- Alien Registration number (ARN), if not a U.S. citizen
IRS Data Retrieval Tool
- Utilize the IRS Data Retrieval
- IRS will authenticate taxpayer’s identity
- If match found, IRS populates tax information
- Applicant chooses whether or not to transfer data to the FAFSA
Verification
- Federal government and/or college may select FAFSA for financial aid verification
- Additional documentation that may be requested:
- Signed verification worksheet confirming household information, etc.
- W-2 statements or tax-related information
If corrections are needed, log on to the FAFSA to “Make corrections to a processed FAFSA application.”
Types of Financial Aid
Gift Aid
- Scholarships (merit/academic)
- Grants (need-based)
Self Help Aid
- Employment
- Need-based: Federal College Work Study
- Non-need-based: Campus Employment
- Loans (need-based and non-need-based)
Gift Aid: Scholarships
INSTITUTIONAL
- Academic Scholarship
- Commuter Award
- Athletic Scholarship
- Music Scholarship
- Theater Scholarship
- ROTC Scholarship
STATE
- NY State Scholarship for Academic Excellence
- New York State Achievement and Investment in Merit Scholarship (NY-AIMS)
PRIVATE
- Endowed Scholarships
- Outside Scholarships
Gift Aid: Grants
FEDERAL
- Federal Pell Grant: $598 – $5,815
- Supplemental Educational Opportunity Grant (SEOG)
- TEACH Grant: up to $4,000/year ($16,000 over four years)
STATE
- NY State TAP: $500 – $5,165
INSTITUTIONAL
- Need-based Grant in Aid
Student Employment
- Allows student to earn money to help pay educational costs and learn “real life” work skills
- Awarded as Campus Work-Study or Campus Employment
- Earnings not applied toward the bill
- Student receives a paycheck
Federal Direct Loan (Subsidized and Unsubsidized)
SUBSIDIZED DIRECT
- Need-based
- Government pays interest earned while in school
UNSUBSIDIZED DIRECT
- Financial need is not a consideration
- Interest is accrued
- Interest payments can be made or deferred
*Freshman base annual loan limit $5,500
Federal Direct PLUS Loan
- Borrowers are parents of dependent undergraduate students
- FAFSA must be filed to receive a Federal PLUS Loan
- Annual loan limit: cost of attendance minus all other financial aid
- Fixed interest rate
- Repayment begins after final disbursement for the year unless granted a deferment
Private Loan
- Loan in the student’s name
- Credit-based
- Can borrow up to the cost of attendance minus all other financial aid
- Interest rates (fixed or variable), terms, and fees vary with lender
Monthly Payment Plans
- Convenient alternative to lump-sum, semester payments
- Payments can be made over a specified time period
- Annual application fee
- No credit review
The College Scholarship Service (CSS) Financial Aid PROFILE
- Used by some colleges and universities to award their own institutional financial aid funds. This form is in addition to completing the FAFSA
- Available October 1. Review the colleges’ websites to determine if the PROFILE is required or for priority filing dates
- $25 for the initial application; $16 charged for each additional college you request
- Students register and complete the PROFILE online at http://student.collegeboard.org/profile
- PROFILE is not required for federal financial aid
Additional information reported on the CSS PROFILE vs. FAFSA
- Home value/mortgage information
- Private school tuition
- Business owner information
- Medical and dental expenses
- Non-custodial parent information
- Outstanding debts
- Projected financial information for the coming year
- Explanation of special circumstances
Overall points to remember
- Read the FAFSA and PROFILE instructions carefully
- Financial aid and state requirements and deadlines may vary with institutions
- The FAFSA must be completed or renewed every year the student is in college in order to be eligible for financial aid
Key websites
- FAFSA on the Web: www.studentaid.gov
- Department of Education Student Information: http://studentaid.gov
- New York State TAP: www.hesc.ny.gov
- Marist College Office of Student Financial Services: www.marist.edu/sfs