Financial Aid

Chanell Thomas, M.Ed.

Associate Director, Financial Aid and Scholarships
Vanderbilt University
Agenda

! What is Financial Aid?

! Need Analysis
! Financial Aid Checklists
! Financial Aid Packages
! Special Circumstances
What is Financial Aid
! Money given or loaned to a student and/or
their family to help pay for their university
education
! Gift Aid
– Grants and Scholarships (Free Money)
! Self Help
– Loans
– Work Study
Types of Financial Aid
! Need-Based Financial Aid
! Merit-Based Scholarships
– Academic Scholarships
– Community Engagement Scholarships
– Talent-Based Scholarships
• Music
• Athletic
! On-Campus Employment
– Student Work Expectation
– Work Study
 Sources of Financial Aid
! Federal/Government Programs
– Free Application for Federal Student Aid (FAFSA)
– Institutional applications (if required)
– Student Direct and/or Parent PLUS Loan applications
! State Programs
– FAFSA
– Specific scholarship forms
! Institutional Aid
– FAFSA
– College Board Financial Aid PROFILE (if required)
– Special institutional applications
! Private Opportunities
– Depends upon awarding entities
– FAFSA and/or PROFILE
Need Analysis – What We Do
Principles of Need Analysis
! To the extent they are able, parents have
primary responsibility to pay for their dependent
children’s education
! Students also have a responsibility to contribute
to their educational costs
! Families should be evaluated in their present
financial condition
! A family’s ability to pay for educational costs
must be evaluated in an equitable and
consistent manner, recognizing that special
circumstances can and do affect its ability to pay
Need-Aware vs. Need-Blind

! Need Blind: The amount of money a

student/family is able to pay for their
education is not taken into account in making
admissions decisions

! Need Aware: The amount of money a

student/family is able to pay for their
education is taken into account in making
admissions decisions
Need-Based Aid Terminology
! Cost of Attendance (COA): The total amount it should
cost a student to go to school – usually expressed as a
yearly figure. The COA covers tuition and fees, room and
board, and allowances for books and supplies,
transportation, and miscellaneous expenses.
! Expected Family Contribution (EFC): An amount that
indicates how much of your family’s financial resources
should be available to help pay for school. The EFC is
used in determining your eligibility for financial need.
! Financial Need: The difference between the Cost of
Attendance (COA) and the Expected Family Contribution
(EFC). This amount is your total eligibility for aid from all
sources.
How Financial Need is Determined
Cost of Attendance (COA)
- Expected Family Contribution (EFC)
= Financial Need

Tuition and Fees Expected

Books and Supplies Family Contribution
Room and Board
Parent’s Contribution from Income
Transportation Parent’s Contribution from Assets
+ Miscellaneous Expenses Student’s Contribution from Income
= Cost of Attendance Student’s Contribution from Assets
Need Varies Based on Cost

1 X

2 Y

3 Z

EFC EFC

Cost of Expected Family Need

Attendance Contribution (Variable)
(Variable) (Constant)
Free Application for Federal
Student Aid (FAFSA)
! Family’s personal and financial information
required to perform need analysis is
collected on FAFSA
– Required for some state aid
– Pell Grant
– Supplemental Educational Opportunity Grant (SEOG)
– Work Study
– Student Loans

! Available online at studentaid.gov

! FAFSA available October 1
! REMEMBER IT’S FREE!
Completing the FAFSA
! Apply for student and parent FSA ID
– Confirms your identity
– Required to sign FAFSA electronically
– Save in safe place; will need each year
! Gather records you will need
– Student’s driver’s license and Social Security card
– W-2 forms and other records of money earned
– 2019 Federal Income Tax Returns
– Records of untaxed income
– Business and farm records
– Records of stocks, bonds, and other investments
! Use Data Retrieval Tool (DRT)
– Pulls 2019 Federal Income Tax information from IRS
 FAFSA - Tips

! The correct name, date of birth, and

social security number are crucial
! Round off figures to the nearest
dollar
! “You” and “Your” refers to the
student
! Read the instructions
What Happens Next?
! You’ll receive a Student Aid Report (SAR)

! Includes the EFC used to determine your

eligibility for federal student aid

! Review your SAR for accuracy

! Schools listed receive SAR information

electronically (up to 10 schools)
CSS Profile
! The PROFILE form is administered by the College
Scholarship Service (CSS), the financial aid division
of the College Board. The CSS PROFILE is required
by many private colleges and universities to
determine your eligibility for non-government
financial aid, such as the institution’s own grants,
loans, and scholarships.
! Available at cssprofile.collegeboard.org
! Initial application fee of $25 and additional reports are
$16
! Waivers available if:
– Student used an SAT fee waiver
– Parental income reported approximately $100,000 or less
– Student is an orphan or ward of the court under age 24
Differences between the CSS
Profile and the FAFSA
! Cost of Living Adjustment: The CSS Profile adjusts the parent
income calculation to reflect the higher cost of living in certain
parts of the country
– Drills down to the zip code
! Non-Custodial Parent: The CSS PROFILE collects data
separately for the non-custodial parent to determine a
contribution. Optional for each school.
! Different methodology: The CSS PROFILE determines your
financial need differently than the FAFSA, considering such
factors as whether your family owns a home. In general, the
CSS PROFILE asks more detailed information than FAFSA.
! Minimum student contribution: The CSS PROFILE requires
this; the FAFSA doesn’t.
Common Problems Found
! Application Errors
– Name, date of birth, social security number
– Adjusted Gross Income
– Non-taxable income
– Income tax paid
– Earning from work
– Household size/number in college
! Deadlines
– Be aware of each school’s deadline
– Apply early, but accurately
! Documentation
– Student and parent tax returns (if required)
– Federal Verification Worksheet (if required)
– Any other requested information
Financial Aid Checklists
Financial Aid Checklists

! Updates as documents received

! Requirements vary by institution
– FAFSA and/or CSS Profile
– Parent and Student Tax Returns
! Federal Verification
– Federal Tax Return Transcripts
– Federal Verification Worksheet
Financial Aid Checklists

! Additional Documents Requested

– W-2s
– College Enrollment Verification
– Untaxed Income Verification
– Asset Verification
– Family Size Verification
! Merit Scholarships
– Separate Process
Financial Aid Packages
Role of the Financial Aid Office
! Determines eligibility for financial aid
– Individual review at some institutions
– Separated or divorced families

! Packages financial aid

– Methodology varies by school
• 100% demonstrated need with or without loans
• Meet a % of need
• Other
 Financial Aid Notifications
! Timing of Notifications
– Hurry up and wait!
– Depends on admission decision plan
! Sends an award notification which details:
– Student’s cost of attendance
– Types and amounts of aid offered
– How and when aid will be disbursed
– Student employment conditions
– Terms and conditions of offer
– Subject to availability of funds
! Notifications vary by school
Example of Income and Aid
Received
Net Price Calculator
! Every college required to have one
! Based on how the school awards
financial aid
! Estimate only as good as the
information provided
! Why helpful?
– Early Decision
– Regular Decision
! Keep your results
Special Circumstances
Request Review of Financial Aid

Understand that things change:

! Loss of job

! Separation/Divorce

! One-time income

! Losses on tax return

Process

! Submit request in writing

– Letter of special circumstances
! Supporting documentation
– Letter from employer
– Divorce decree
– Other
! Professional Judgment
– Must impact the numbers
 Information Sources
! Online Resources
– Department of Education - www.ed.gov
• FAFSA

– FAFSA FSA ID
• https://studentaid.ed.gov/sa/fafsa/filling-out/fsaid

– The Financial Aid Page - www.finaid.org

• Comprehensive financial aid information
• Free scholarship search
• Various calculators, including need analysis
Questions???