financial aid: demystifying the process presented by: dan yannuzzi [email protected] senior...
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FINANCIAL AID: FINANCIAL AID: Demystifying The ProcessDemystifying The Process
Presented by: Dan [email protected]
Senior Assistant Director of Enrollment Management
IntroductionIntroduction
Talk The Talk: Financial Aid LingoTalk The Talk: Financial Aid Lingo The Application ProcessThe Application Process Sources of Financial AidSources of Financial Aid Sticker ShockSticker Shock Comparing Aid OffersComparing Aid Offers
Financial AidFinancial Aid Financial Aid=Assistance for Financial Aid=Assistance for
students to fund their students to fund their education in the form of:education in the form of:
GrantsGrantsScholarshipsScholarshipsLoansLoansEmployment Employment
Merit-Based Aid vs. Merit-Based Aid vs. Need-Based AidNeed-Based Aid
Merit-Based AidMerit-Based Aid=aid given to students =aid given to students strictly on the basis of merit. May be based strictly on the basis of merit. May be based on: on:
Academic record Special characteristics Academic record Special characteristics
Skills or talents InvolvementSkills or talents Involvement
-Does not have to be repaid; usually -Does not have to be repaid; usually renewable from year to year.renewable from year to year.
Need-Based AidNeed-Based Aid=aid awarded to students =aid awarded to students on the basis of financial need. Re-on the basis of financial need. Re-evaluated each year as financial situations evaluated each year as financial situations may change.may change.
What Is The FAFSA?What Is The FAFSA? FAFSA=Free Application For FAFSA=Free Application For
Federal Student AidFederal Student Aid Application for federal and state Application for federal and state
aid (may be application for college aid (may be application for college aid as well, depending upon the aid as well, depending upon the school)school)
Parent/Student Sections color-codedParent/Student Sections color-coded File one FAFSA File one FAFSA per yearper year per student ( per student (notnot
one per college)one per college) List up to ten colleges--Title IV Code or List up to ten colleges--Title IV Code or
school name; schools receive info. school name; schools receive info. electronicallyelectronically
How/When to File the How/When to File the FAFSA?FAFSA?
Ways To Complete the FAFSA:Ways To Complete the FAFSA: On-line at On-line at www.fafsa.govwww.fafsa.gov (this is (this is STRONGLYSTRONGLY
encouraged)encouraged) Download pdf version of FAFSA at Download pdf version of FAFSA at
www.FederalStudentAid.ed.gov.. Complete as soon as possible after Complete as soon as possible after January 1, January 1, by by
filing electronically at filing electronically at www.fafsa.gov www.fafsa.gov beginning beginning January 1, prior to the fall for which student seeks January 1, prior to the fall for which student seeks aid. aid.
FAFSA On The WebFAFSA On The Web If filing over the Internet, 2 choices:If filing over the Internet, 2 choices:
Parent Parent andand student mail signature page in student mail signature page in OROR
Parent Parent andand student apply for PIN # at student apply for PIN # at www.pin.ed.govwww.pin.ed.gov
PIN # serves as e-signaturePIN # serves as e-signature PIN # will be mailed or e-mailed ahead of PIN # will be mailed or e-mailed ahead of
time to studenttime to student Use PIN # to submit info. and make Use PIN # to submit info. and make
corrections, sign promissory notescorrections, sign promissory notes
Whose Info. Is On the Whose Info. Is On the FAFSA?FAFSA?
Dependent:Dependent: parental & student financial data required parental & student financial data required In cases of divorce or legal separation, complete with info In cases of divorce or legal separation, complete with info
of custodial parent (and his/her new spouse, if applicable)of custodial parent (and his/her new spouse, if applicable) Independent:Independent: student & spouse financial data required student & spouse financial data required Student must meet one of following criteria to be Student must meet one of following criteria to be
considered independent:considered independent: 24 years of age24 years of age Veteran of the U.S. Armed ForcesVeteran of the U.S. Armed Forces Active Duty in MilitaryActive Duty in Military Emancipated minor or in a legal guardianshipEmancipated minor or in a legal guardianship Unaccompanied youth who is homelessUnaccompanied youth who is homeless Enrolled in a graduate or professional programEnrolled in a graduate or professional program MarriedMarried Orphan or ward of the court until age 18Orphan or ward of the court until age 18 Have legal dependents for which the student provides Have legal dependents for which the student provides
at least 50% of the supportat least 50% of the support
Filing The FAFSAFiling The FAFSA Based on prior calendar year tax Based on prior calendar year tax
informationinformation May use estimated income and taxesMay use estimated income and taxes Don’t wait to be accepted to college Don’t wait to be accepted to college
to completeto complete PA residents PA residents must must file by file by May 1May 1 for for
state grant consideration for state grant consideration for following fall term; state will follow following fall term; state will follow up with studentup with student
MAKE COPIES OF MAKE COPIES OF EVERYEVERY FORM! FORM!
Corrections to the FAFSACorrections to the FAFSA Receive colored SAR (Student Aid Report or Receive colored SAR (Student Aid Report or
summary of FAFSA information) 3-4 weeks later summary of FAFSA information) 3-4 weeks later (link will be emailed if FAFSA filed on-line)(link will be emailed if FAFSA filed on-line)
Review for corrections Review for corrections Add additional colleges & make address Add additional colleges & make address
corrections over phone 1-800-4FEDAID or on corrections over phone 1-800-4FEDAID or on web using PIN #web using PIN #
Make all other corrections on SAR & return it to Make all other corrections on SAR & return it to Federal Student Aid Programs or use PIN # to Federal Student Aid Programs or use PIN # to make corrections on Internet.make corrections on Internet.
When Completing the When Completing the FAFSA:FAFSA:
Common Mistakes To Avoid:Common Mistakes To Avoid: Be sure student uses his/her correct Be sure student uses his/her correct
SS# as this SS# as this CAN NOTCAN NOT be corrected be corrected Don’t leave questions blankDon’t leave questions blank Report only dollar amounts (not cents!)Report only dollar amounts (not cents!) Enter “U.S. income tax paid” (not U.S. Enter “U.S. income tax paid” (not U.S.
income tax “withheld”!)income tax “withheld”!) A parent A parent ANDAND the student must sign the student must sign
form or use PIN # as e-signatureform or use PIN # as e-signature
Financial NeedFinancial Need
Cost of Attendance (COA)Cost of Attendance (COA)--Expected Family Contribution (EFC)Expected Family Contribution (EFC)
Financial NeedFinancial Need
Cost of Attendance typically includes Cost of Attendance typically includes tuition, fees, room & board, books & tuition, fees, room & board, books & supplies, personal expenses and a supplies, personal expenses and a transportation allowancetransportation allowance
What Is The EFC?What Is The EFC?
Basis of financial aid packageBasis of financial aid package EFC=determined by a federal EFC=determined by a federal formula that calculates need formula that calculates need via the FAFSAvia the FAFSA EFC & Financial Need are guidelines used by EFC & Financial Need are guidelines used by
schools to determine aid packageschools to determine aid package EFC not necessarily = to out-of-pocket cost of EFC not necessarily = to out-of-pocket cost of
family.family. Colleges will attempt to meet as much need Colleges will attempt to meet as much need
as they can, but funding does have limits. as they can, but funding does have limits.
How Is The EFC How Is The EFC Calculated?Calculated?
Primary Factors Looked At:Primary Factors Looked At: Taxable Income: AGI (wages Taxable Income: AGI (wages
earned+interest dividends+other earned+interest dividends+other taxable income)taxable income)
Untaxed income & benefitsUntaxed income & benefits Number in family & Number in Number in family & Number in
HouseholdHousehold Number of dependent children in Number of dependent children in
college college AssetsAssets
Treatment of AssetsTreatment of AssetsASSETSASSETS
Assets: includes cash/savings, value of other real Assets: includes cash/savings, value of other real estate and investments; excludes value of primary estate and investments; excludes value of primary homehome
Asset protection allowance acc. to age of oldest parentAsset protection allowance acc. to age of oldest parent
(ex:-Oldest Parent’s Age=50, $52,900 of assets (ex:-Oldest Parent’s Age=50, $52,900 of assets protected (if married; $20,500 if single)protected (if married; $20,500 if single)
12% of parents assets counted toward EFC12% of parents assets counted toward EFC 20% of student’s assets counted beginning with 2007-20% of student’s assets counted beginning with 2007-
2008 FAFSA, previously was 35%2008 FAFSA, previously was 35% Does not include: value of life insurance policies, Does not include: value of life insurance policies,
retirement plans (ex.-IRA, 401k, or Keogh Plan)retirement plans (ex.-IRA, 401k, or Keogh Plan) When reporting assets, investment debt cannot be greater than When reporting assets, investment debt cannot be greater than
investment valueinvestment value
Institutional Institutional MethodologyMethodology
Some schools may require CSS Profile Some schools may require CSS Profile FormForm Primarily private schoolsPrimarily private schools Collects supplemental data (i.e.-home Collects supplemental data (i.e.-home
equity, financial data of non-custodial equity, financial data of non-custodial parent, value or retirement plans, etc.)parent, value or retirement plans, etc.)
Calculate IFC (Institutional Family Calculate IFC (Institutional Family Contribution)Contribution)
Basis for awarding institutional need-based Basis for awarding institutional need-based aidaid
Help! Sources of AidHelp! Sources of Aid
Federal Federal StateState The College/UniversityThe College/University Outside OrganizationsOutside Organizations
Civic organizations (ex.-local Rotary Civic organizations (ex.-local Rotary Club), parent’s employer, high schoolClub), parent’s employer, high school
Federal GovernmentFederal Government To qualify for Federal Aid, students To qualify for Federal Aid, students
MUST:MUST: Be a U.S. citizen or eligible non-citizenBe a U.S. citizen or eligible non-citizen Have h.s. diploma or equivalent (GED) Have h.s. diploma or equivalent (GED) Be matriculating in a degree/certificate Be matriculating in a degree/certificate
program at accredited Title IV schoolprogram at accredited Title IV school Be registered with Selective Service if a Be registered with Selective Service if a
male between ages of 18 and 25male between ages of 18 and 25 Pell Grant (need-based): Pell Grant (need-based):
Max of $5,550/year in 2010-2011Max of $5,550/year in 2010-2011 EFC of $5,273 or lessEFC of $5,273 or less
Federal GovernmentFederal Government Federal Stafford LoanFederal Stafford Loan
Federal Direct Loan ProgramFederal Direct Loan Program Lender is Department of Education Lender is Department of Education
In student’s name/no credit checkIn student’s name/no credit check Available to Available to allall students, regardless of need students, regardless of need Repayment begins 6 months following Repayment begins 6 months following
graduation or withdrawalgraduation or withdrawal Fixed 6.8% interest rate as of 7/1/2006Fixed 6.8% interest rate as of 7/1/2006
Interest rate for Interest rate for SubsidizedSubsidized loans for loans for undergraduate studentsundergraduate students only will be 3.4% only will be 3.4% for 2011-2012 school year, for 2011-2012 school year, back to 6.8% back to 6.8% afterafter..
Unsubsidized Loans remain at 6.8%Unsubsidized Loans remain at 6.8%
Federal GovernmentFederal Government STAFFORD LOAN, SUBSIDIZED VS. UNSUBSIDIZEDSTAFFORD LOAN, SUBSIDIZED VS. UNSUBSIDIZED
SubsidizedSubsidized Based on financial needBased on financial need Govt. pays interest on loan while student is enrolledGovt. pays interest on loan while student is enrolled
UnsubsidizedUnsubsidized Available to Available to ALLALL students, regardless of need students, regardless of need Interest paid either quarterly or capitalized upon Interest paid either quarterly or capitalized upon
repayment: rate=currently 6.8%repayment: rate=currently 6.8% Stafford amount caps by grade levelStafford amount caps by grade level
$3,500 freshmen year + $2,000 Unsubsidized$3,500 freshmen year + $2,000 Unsubsidized $4,500 sophomore year + $2,000 Unsubsidized$4,500 sophomore year + $2,000 Unsubsidized $5,500 junior/senior year + $2,000 Unsubsidized$5,500 junior/senior year + $2,000 Unsubsidized
Add’l. unsub available to students whose parent(s) are denied Add’l. unsub available to students whose parent(s) are denied on PLUS Loanon PLUS Loan
Federal GovernmentFederal Government
Plus Loan (Parent Loan for Dependents)Plus Loan (Parent Loan for Dependents) loan in parent’s nameloan in parent’s name interest cap of 9%interest cap of 9% current rate: 7.9% Directcurrent rate: 7.9% Direct repayment begins within 60 daysrepayment begins within 60 days of 2of 2ndnd disbursement coming in disbursement coming in to school, but may request deferralsto school, but may request deferrals credit check involvedcredit check involved borrow up to cost of attendance minus other borrow up to cost of attendance minus other
financial aid student is receivingfinancial aid student is receiving 3-4% Origination Fee typically applies3-4% Origination Fee typically applies
Federal Campus-Based Federal Campus-Based AidAid
Schools receive limited funds (i.e. a Schools receive limited funds (i.e. a specific “pot” of money).specific “pot” of money). Student will not necessarily receive Student will not necessarily receive
Campus-Based Aid from all schoolsCampus-Based Aid from all schools SEOG Grant-exceptional need-$100-4,000/yrSEOG Grant-exceptional need-$100-4,000/yr Perkins Loan-exceptional Perkins Loan-exceptional
need-$100-3000/year; 5% interest rateneed-$100-3000/year; 5% interest rate Federal Work Study: typically not deducted Federal Work Study: typically not deducted
from billfrom bill
TEACH GrantTEACH Grant $4000 annually for 4 years as undergraduate; available for 2 $4000 annually for 4 years as undergraduate; available for 2
years as graduate student. years as graduate student. Must be in degree program taking coursework to prepare for a Must be in degree program taking coursework to prepare for a
career in teachingcareer in teaching Must annually sign Agreement to Serve (ATS), agreeing to Must annually sign Agreement to Serve (ATS), agreeing to
teach 4 out of 8 years upon graduation in a low income school, teach 4 out of 8 years upon graduation in a low income school, in a high need fieldin a high need field
Failure to meet teaching requirements causes grant to revert Failure to meet teaching requirements causes grant to revert to a Direct Unsubsidized Stafford loanto a Direct Unsubsidized Stafford loan
Not based on financial needNot based on financial need Visit Visit www.teachgrant.gov for more information for more information
State State Pennsylvania State Grant (for PA Residents): Pennsylvania State Grant (for PA Residents):
$3,541 max/year for 2010-2011 for $3,541 max/year for 2010-2011 for students attending a PA schoolstudents attending a PA school Eligibility based on the family’s EFCEligibility based on the family’s EFC Max PHEAA Grant that can transfer out-of-state, Max PHEAA Grant that can transfer out-of-state,
$600, to: CT, DE, MA, ME, OH, RI, VT, DC, WV$600, to: CT, DE, MA, ME, OH, RI, VT, DC, WV $400 maximum transfers to other states, except $400 maximum transfers to other states, except
NJ, MD and NY--$0 transfers there NJ, MD and NY--$0 transfers there Student Student mustmust file FAFSA by May 1 for upcoming file FAFSA by May 1 for upcoming
fall termfall term PHEAA sends student status notice beginning PHEAA sends student status notice beginning
mid-May; student must complete and return to mid-May; student must complete and return to PHEAAPHEAA
StateState
Robert Byrd Scholarships:Robert Byrd Scholarships: $1,500 per year for four years$1,500 per year for four years Eligibility Requirements:Eligibility Requirements:
Top 5% of graduating class or ranked 1, 2, or 3 in a Top 5% of graduating class or ranked 1, 2, or 3 in a class of 60 or less.class of 60 or less.
3.5 GPA on 4.0 scale3.5 GPA on 4.0 scale SAT’s: 1150 or better (Critical Reading and Math SAT’s: 1150 or better (Critical Reading and Math
Combined) or ACT Composite Score of 25 or betterCombined) or ACT Composite Score of 25 or better U.S. Citizen and Pennsylvania ResidentU.S. Citizen and Pennsylvania Resident Completed Application (see high school guidance Completed Application (see high school guidance
office)office) May 1st filing deadline for FAFSAMay 1st filing deadline for FAFSA
Other State AidOther State Aid NETS Scholarship: at least sophomore, 3.0 cum NETS Scholarship: at least sophomore, 3.0 cum
GPA, PA resident, graduate of PA high school GPA, PA resident, graduate of PA high school enrolled full-time in approved science or enrolled full-time in approved science or technology bachelor’s degree program ($3,000 technology bachelor’s degree program ($3,000 max/year)max/year)
Technology Scholarship: PA resident, graduate Technology Scholarship: PA resident, graduate of PA high school enrolled at least part-time in of PA high school enrolled at least part-time in an associate’s degree program or equivalent, an associate’s degree program or equivalent, 3.0 cum ($1,000 max/year)3.0 cum ($1,000 max/year)
Must agree to work in PA following graduation, Must agree to work in PA following graduation, one year for each year of grantone year for each year of grant
Apply at www.aessuccess.orgApply at www.aessuccess.org
College/UniversityCollege/University Factors that may influence institutional Factors that may influence institutional
aid, particularly merit-based aid:aid, particularly merit-based aid:AcademicsAcademics Athletic Ability*Athletic Ability*SAT’sSAT’s Geographic DiversityGeographic DiversityAP CoursesAP Courses Legacy (child of Legacy (child of alumni)alumni)Academic TrackAcademic Track TalentTalentGender/EthnicityGender/Ethnicity H.S. AttendedH.S. AttendedClass RankClass Rank ActivitiesActivities
*Athletic awards offered by NCAA Division I and *Athletic awards offered by NCAA Division I and Division II schools only.Division II schools only.
College/UniversityCollege/University
Investigate sources of Merit-Aid firstInvestigate sources of Merit-Aid first How & When To ApplyHow & When To Apply CriteriaCriteria Limited number?Limited number? Renewable? Renewable?
Criteria for renewalCriteria for renewal
College/UniversityCollege/University
Investigate Sources of Need-Based AidInvestigate Sources of Need-Based Aid How & When To ApplyHow & When To Apply CriteriaCriteria Re-apply every yearRe-apply every year
What factors will cause change? (i.e.-What factors will cause change? (i.e.-number in college, income increase)number in college, income increase)
Beware: Bait/Hook & Switch TacticBeware: Bait/Hook & Switch Tactic
What Happens Next?What Happens Next? Receive financial aid award letter Receive financial aid award letter
from each college/universityfrom each college/university Deposit at college of choice (non-Deposit at college of choice (non-
refundable usually)refundable usually)May 1=Candidate Reply Date May 1=Candidate Reply Date
File for any loansFile for any loans Investigate payment plansInvestigate payment plans
State vs. PrivateState vs. Private
State schools: lower cost with lower State schools: lower cost with lower or no endowment; Private schools: or no endowment; Private schools: higher cost with higher endowmenthigher cost with higher endowment Often translates into more sources of Often translates into more sources of
institutional grant/scholarship aid at private institutional grant/scholarship aid at private schools and, maybe even lower cost.schools and, maybe even lower cost.
Federal Pell Grant and PHEAA State Grant may Federal Pell Grant and PHEAA State Grant may be reduced at state institution due to lower COAbe reduced at state institution due to lower COA
Don’t rule out private institutions just due to Don’t rule out private institutions just due to COACOA
State vs. PrivateState vs. Private
XYZ State School:XYZ State School:
$13,684 tuition/R&B*$13,684 tuition/R&B*
-$3,500 Stafford Loan-$3,500 Stafford Loan
$10,184 Cost$10,184 Cost
*In-state student*In-state student
Private SchoolPrivate School
$23,000 tuition/R&B$23,000 tuition/R&B
-$10,000 school grant-$10,000 school grant
-$3,500 Stafford Loan-$3,500 Stafford Loan
$9,500 Cost$9,500 Cost
Comparing Aid OffersComparing Aid Offers
Look at same “bottom line” for each school. Look at same “bottom line” for each school. Compare “apples” to “apples.” Compare “apples” to “apples.”
Consider: Consider: What is amount of loan in package What is amount of loan in package
vs. amount of grant?vs. amount of grant? What is amount of work study?What is amount of work study? Are grants/scholarships automatically Are grants/scholarships automatically
renewable? If so, what are criteria?renewable? If so, what are criteria?
Comparing Aid OffersComparing Aid Offers
Will package change if outside Will package change if outside scholarships are received? scholarships are received?
What factors will cause change? (i.e.-What factors will cause change? (i.e.-number in college, income increase)number in college, income increase)
Beware: Bait/Hook & Switch TacticBeware: Bait/Hook & Switch Tactic Is there room for movement? Check Is there room for movement? Check
with the F.A. Office—there might be with the F.A. Office—there might be but it’s not “Let’s Make A Deal!”but it’s not “Let’s Make A Deal!”
Comparing Aid OffersComparing Aid Offers School ASchool A School BSchool B School CSchool CCostCost $6,000 $15,000 $30,000$6,000 $15,000 $30,000EFCEFC $3,000 $3,000 $3,000 $3,000 $3,000 $3,000NeedNeed $3,000 $12,000 $27,000 $3,000 $12,000 $27,000 Pkg. #1:Pkg. #1: $2,500 Grants $11,500 Grants $26,500 Grants $2,500 Grants $11,500 Grants $26,500 Grants
$3,500 Loans $3,500 Loans $ 3,500 Loans $3,500 Loans $3,500 Loans $ 3,500 Loans
Pkg. #2Pkg. #2 $1,500 Grants $7,000 Grants $14,000 Grants $1,500 Grants $7,000 Grants $14,000 Grants $4,500 Loans $7,000 Loans $15,000 Loans$4,500 Loans $7,000 Loans $15,000 Loans $1,000 Work $ 1,000 Work$1,000 Work $ 1,000 WorkPkg. #3Pkg. #3 $1,000 Grants $4000 Grants $ 5,000 Grants $1,000 Grants $4000 Grants $ 5,000 Grants $3,500 Loans $9,000 Loans $23,500 Loans$3,500 Loans $9,000 Loans $23,500 Loans $1,500 Work $2,000 Work $ 1,500 Work$1,500 Work $2,000 Work $ 1,500 Work
Financing OptionsFinancing Options Federal PLUS LoanFederal PLUS Loan Alternative Loans (in student’s name) Alternative Loans (in student’s name)
Home Equity LoansHome Equity Loans
Interest payments tax Interest payments tax
deductible (loans<$100,000)deductible (loans<$100,000) Individual college payment plans-many are Individual college payment plans-many are
interest free with nominal one-time feeinterest free with nominal one-time fee 401(k) Retirement Accounts401(k) Retirement Accounts Cash value of life insurance policiesCash value of life insurance policies
Outside SourcesOutside Sources
Private sources of scholarship funds Private sources of scholarship funds include:include: Service/Fraternal OrganizationsService/Fraternal Organizations Employers/BusinessEmployers/Business Churches/Religious GroupsChurches/Religious Groups
Sources of InformationSources of Information Internet: see Internet: see www.pasfaa.orgwww.pasfaa.org for helpful websites for helpful websites
Books: Peterson’s Guide, Barron’s Guide to Colleges, Books: Peterson’s Guide, Barron’s Guide to Colleges, “Don’t Miss Out” (Octameron Assoc.)“Don’t Miss Out” (Octameron Assoc.)
Guidance Office Computer ProgramsGuidance Office Computer Programs FastWeb: www.fastweb.comFastWeb: www.fastweb.com
Outside SourcesOutside Sources
When using services like FastWeb, When using services like FastWeb, you create a profile that helps to you create a profile that helps to locate scholarships you qualify forlocate scholarships you qualify for
Out of their listing of 1.5 million Out of their listing of 1.5 million scholarships, you will receive a scholarships, you will receive a “short list” of any that match with “short list” of any that match with your profileyour profile
The more information you put in your The more information you put in your profile, the better your results will beprofile, the better your results will be
Outside SourcesOutside Sources
Things to remember:Things to remember: Each organization has their own Each organization has their own
application/processapplication/process Have someone read your essay!!Have someone read your essay!! Save all your essays, you may be Save all your essays, you may be
able to reuse themable to reuse them Don’t rule out smaller scholarships!Don’t rule out smaller scholarships!
Education Tax CreditsEducation Tax Credits American Opportunity Tax CreditAmerican Opportunity Tax Credit
Available for four years of undergraduate study Available for four years of undergraduate study for dependents enrolled at least half-timefor dependents enrolled at least half-time
Deducted from family’s actual tax liabilityDeducted from family’s actual tax liability Max tax credit of $2,500/year per student for Max tax credit of $2,500/year per student for
anything paid out of pocket for tuition, fees, and anything paid out of pocket for tuition, fees, and books for prior yearbooks for prior year
Filers who don’t earn enough to owe any taxes Filers who don’t earn enough to owe any taxes can get refund checks for 40% of their tuition and can get refund checks for 40% of their tuition and books expenses up to $1,000.books expenses up to $1,000.
Income cutoff: $80,000 single filer; $160,000 Income cutoff: $80,000 single filer; $160,000 for joint filerfor joint filer
Education Tax IncentiveEducation Tax Incentive LifeTime Learning Tax CreditLifeTime Learning Tax Credit
Can claim up to 20% of first $10,000 paid out-of-Can claim up to 20% of first $10,000 paid out-of-pocket for tuition and fees paid after January 1, pocket for tuition and fees paid after January 1, 2010 (for 2010 taxes) or maximum tax credit of 2010 (for 2010 taxes) or maximum tax credit of $2,000/year$2,000/year
Family based (unlike American Opportunity Family based (unlike American Opportunity Credit)Credit)
Can’t claim American Opportunity & Lifetime Can’t claim American Opportunity & Lifetime credits on the same studentcredits on the same student
For more information visit For more information visit www.irs.ustreas.govwww.irs.ustreas.gov Tuition & Fees Deduction off AGITuition & Fees Deduction off AGI
What To Do NOW!What To Do NOW! Check with colleges/universities on early Check with colleges/universities on early
financial aid estimate services offeredfinancial aid estimate services offered I.E.-Arcadia University online calculator I.E.-Arcadia University online calculator
(free and easy online financial aid (free and easy online financial aid calculator located at calculator located at www.arcadia.edu/calculator). ).
Research Outside ScholarshipsResearch Outside Scholarships Guidance OfficeGuidance Office Local LibrariesLocal Libraries Internet-see handoutInternet-see handout www.fastweb.comwww.fastweb.com
Remember…Remember… When filing the FAFSA use When filing the FAFSA use
www.fafsa.gov NOTNOT fafsa.com fafsa.com MAY 1MAY 1! It’s the deadline for State Aid ! It’s the deadline for State Aid
considerationconsideration It’s never too early to begin It’s never too early to begin
researching outside scholarships- just researching outside scholarships- just be cautious about services that charge be cautious about services that charge you money to find you moneyyou money to find you money
Aid offices will often be willing to help Aid offices will often be willing to help you with questions, don’t be afraid to you with questions, don’t be afraid to askask
