FINANCIAL AID MYTH BUSTERS

Lincoln High SchoolOctober 9. 2013

Marie Morris and Lisa Wendland

Tonight we will look at:• Types of financial aid• Sources of financial aid• What is Financial Need?• Cost of Attendance (COA)• Estimated Family Contribution (EFC)• Free Application for Federal Student

Aid(FAFSA) and CSS Profile

What is Financial Aid?

Financial aid is funds provided to students and families to help for postsecondary educational expenses.

Types of Financial Aid

• Non-need-based scholarships and grants

• Need-based loans and work study

Sources of Financial Aid

• Federal Government• College or University• State• Private Sources

Federal Government

• Largest source of financial aid• Awarded primarily on the basis of financial

need• Apply every year using the FAFSA

Colleges and Universities

• Largest amount of individual aid will come from colleges and universities in the form of scholarships and grants.

State• Oregon Student Assistance Commission

(OSAC) is a scholarship search site for Oregon residents.

• Awards both on merit and need.• Uses information from the FAFSA.• March 1 deadline.

Private Sources

• Foundations, businesses, charitable organizations, civic organizations, employers and churches.

• High school website for local: Elementary PTO, neighborhood associations

Scholarship search websites:

• Scholarships.com (www.scholarships.com)• The College Board (www.collegeboard.com)• Cappex (www.cappex.com)• Zinch (www.zinch.com)• Scholarship Experts (

www.scholarshipexperts.com)• Scholarship Monkey (

www.scholarship-monkey.com)

Financial NEED is:

Cost of Attendance COA -Expected Family Contribution

EFC

What IS the cost of attendance(COA)?

• Direct costs: tuition, room and board• Indirect costs: books, meals out, supplies

entertainment• Important to note that this can vary widely

from college to college as well as student to student.

Net Price Calculator

• Found at every college website, prospective students can enter information about themselves to find out what students like them paid to attend the institution in the previous year, after taking grants and scholarship aid into account.

What is the Expected Family Contribution (EFC)?

• Amount family is expected to pay toward college costs.

• Calculated using the FAFSA and/or CSS Profile.

• Two components: Parent contribution and student contribution.

• Stays the same regardless of the college being applied to.

FAFSA4Caster

• A tool to estimate eligibility for federal student aid.

• https://fafsa.ed.gov/FAFSA/app/f4cForm?execution=e1s1

Free Application for Federal Student Aid (FAFSA)

• A standard form that collects demographic and financial information about the student and the family.

• Information gathered is used to calculate the EFC.

• Colleges use the EFC to award financial aid which can include grants, work study and loans.

When to File the FAFSA

• Anytime after January 1• Sooner is better• Many schools have early priority dates• Don’t have to have taxes done to file• Can file online (preferred) or paper

CSS Profile

• Administered by College Board, the Profile is an online application used by certain institutions and scholarship programs to award institutional funds.

• May be filed as early at Oct 1, but check for specific deadlines at colleges or programs, it is usually before FAFSA.

• Fee is $25 for the initial application, and $16 for each additional report requested.

Information included on the Profilethat is different from FAFSA

• Earnings• Equity of primary residence• Unusual medical expenses• Tuition payments for children enrolled in private

schools• Student’s earnings more closely analyzed• In certain cases, tax returns will be requested as well• Siblings assets• In the case of divorced/remarried parents,

information from all parties may be requested.

Why Should I file the FAFSA or Profile?

• Many scholarships even though not need based will require it.

• Grant money is disbursed from FAFSA.• Work study awarded from FAFSA.

Resources• Fund Your Future

http://www.csac.ca.gov/pubs/forms/grnt_frm/newi2_CAworkbook_interactive.pdf

• National Association of Student Financial Aid Administrators http://www.nasfaa.org/counselors/Financial_Aid_Night_Presentation.aspx

• The Financial Aid Handbook By Carol Stack and Ruth Vedvick

• Meeting College Costs By College Board

QUESTIONS?