College Financing

Parent Primer

Dr.Linda Dagradi
Williston Northampton School
February 2011
 GOALS

 Increase understanding
of the college financing
process
 Relieve stress
 Develop awareness of
tools and resources
PARENTAL FEAR
Good enrollment decisions
A process not an event!

Time
Research
Involvement
Process
 Putting the Pieces Together
Making a Good Decision

• Get organized
• Collect information
• Communicate
• Develop a Plan
• Check assumptions & expectations
A realistic
financing
plan
 College Cost Issues
 Sticker shock
 Price vs Cost
 Should we apply for admission?
 Defining affordability
 Projected student debt
 The Best Fit or the Best Deal
Cost of Attendance
Direct costs
• Tuition
• Fees
• Housing & food (residents)
Indirect costs
• Transportation
• Books
• Personal
• Other educational expenses
 Understand the Process
Financing Delivery System

 System partners
 Application process
 Types of aid
 Decisions
 Partners
Federal government
State government
Colleges & Universities
Private organizations
Family
Lenders
Agencies
 SOURCES OF AID
Federal government
State government
Colleges &
Universities
Private
organizations
 Types of Financial Aid
GIFT AID
• Grants or scholarships
• Need based or merit SELF HELP
• No repayment required • Loans
• Must be repaid
• Student is the
borrower
• Work Study
• Student must
earn the
award while
enrolled
 Types of Financial Aid
NEED-BASED
 Family ability to pay
 Variable eligibility
 Cost of college
 Availability of funding
 College calculates family
contribution
 College awarding policy
 Appeal process
MERIT
 Measure of quality
 Family resources not a
factor
 Award levels pending
mission & resources of the
awarding entity
 No appeal process
 Forms Forms Forms

 FAFSA
 PROFILE
 Institutional Application
 Tax returns
 Other family information
Financial Aid Application Process

 Deadlines and priority dates are critical

• Late filers jeopardize eligibility
• Eligibility vs. availability of funds

 Shift from paper to electronic format

 Colleges define document requirements

 Get a USED PIN

Legal signature
Unique to the person
• Parent PIN
• Student PIN
www.pin.ed.gov
 Where Does All the Data Go?

Confidentiality & Security

Who gets what forms
Deadlines & priority dates
Data flow
 • Student
PIN • Parent

• Use FAFSA Worksheet ~ estimate if necessary ~ file early

FAFSA • File after January 1 @ www.fafsa.gov

• Central processing system

• Conducts database matches
CPS • Distributes data and processing results

• Student Aid Report to student by email link or USPS

SAR

• Institutional Student Information Record

• Electronic data file sent to colleges from CPS
ISIR
Financial Aid Formula

Cost of Attendance
(COA)

- Expected Family
Contribution (EFC)

= Financial Aid Eligibility

 Expected Family Contribution
IS a measure of capacity
over time to absorb
educational costs
PC
IS NOT a dollar amount +
expected from current
income or assets SC

IS NOT an estimate of

extra cash available.
 Family Communication
 Define affordability
 Check expectations
 Discuss borrowing
 Organize & Plan
 Calendar for due dates
 Start a FA file
 Application responsibility
 Track questions
 Visit FAFSA website
 Research  Get a federal PIN
 College costs
 Parent PIN
 Scholarships
 Student PIN
 College financing programs
 Attend workshops
 College application deadlines
 RESOURCES
www.collegeboard.com
 Financial aid calendar
 CSS PROFILE
 EFC calculator
 Student loan calculator
 Parent debt calculator
 Educational loans
 Compare Your Aid Award
 Outside aid search
 College Costs
 Financial aid myths
 Savings options
Federal Department of Education
• 1-800-4-FEDAID
• www.ed.gov
• www.fafsa.gov

Mapping Your Future www.mappingyourfuture.org

National Assoc. of Student Financial Aid Administrators

www.nasfaa.org

Financial Aid Information Page www.finaid.org

MA Educational Financing Authority www.mefa.org

College websites