Elizabeth Desi Sr. Associate Director of Financial Aid University of New Haven.
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Transcript of Elizabeth Desi Sr. Associate Director of Financial Aid University of New Haven.
• File the Free Application for Federal Student Aid (FAFSA)
• FAFSA is FREE
• FAFSA determines eligibility for:• Federal grants and loans• State grants
Applying for Financial Aid
Institutions use the FAFSA to determine eligibility for their need-based scholarships
Schools may require additional forms to determine eligibility for financial aid
CSS Profile Institutional Application
University of New Haven uses the CSS Profile to provide earlier award information
UNH School Code is 3663
Applying for Financial Aid
FAFSA on the Web◦ www.fafsa.gov
File 2013-2014 FAFSA if entering college Fall 2013 (Forms for 2 years on website – use correct year)
◦ Have to complete FAFSA EACH YEAR◦ Available January 1
Two ways to sign◦ PIN – Sign Electronically
www.pin.ed.gov Real Time (“Display Now”)
Both Student and Parent need a PIN◦ Paper Signature Page
Completing the FAFSA
Can add up to 10 schools on the web application
Should complete and submit the FAFSA when you are applying for Admissions providing you are applying for Admissions after January 1.
Have to be offered Admissions before Financial Aid is determined
Completing the FAFSA
Be Aware of Priority Filing Dates
◦ Submit FAFSA by School & State Priority Filing Date – CT has had filing date as early as Feb 15
◦ School & State funding is limited so file ON TIME
Can enter estimated income information to meet priority date, then make corrections after you file tax returns
Completing the FAFSA
IRS Data Retrieval Tool◦ Populates your income information directly from the
Internal Revenue Service (IRS) Complete & file your tax return
◦ File Electronically – Wait 2 weeks to correct FAFSA◦ File Paper – Wait approximately 8 weeks to correct
Students selected for Verification◦ If don’t use IRS Data Retrieval, Tax Return Transcript is Required◦ Verification form & Other documentation Required
Note: Schools may have their own Verification process to which they may request tax return transcripts and other documentation beyond the federal requirements
Completing the FAFSA
Parent and Student Information on FAFSA Student’s Application If 2 students in family, each complete an application
Parent signs each
Divorced or Separated – Who completes?◦ Parent with whom student lived with most during
the past 12 months If lived with equally, the parent who provided more
financial support If Parent Remarried
◦ Step-parent information must also be included
Completing the FAFSA
Legal Guardians don’t complete FAFSA◦ Student completes FAFSA on own◦ Must provide court documentation to school◦ If no court documentation, parent must complete
FAFSA with student
Completing the FAFSA
Student Aid Report (SAR)◦ Indicates your FAFSA has been processed◦ Indicates how family answered every question on the
FAFSA Review your SAR
◦ Indicates the next steps◦ If there are issues that need to be resolved◦ Data Base matches – Social Security Number, Citizenship,
Selective Service
Will indicate if a student is selected for Verification
Can use to add schools or make corrections
Processed FAFSA
• Results of the FAFSA is the Expected Family Contribution (EFC)• Amount you as a family can contribute toward the
student’s education
• Schools use the EFC to determine what types of financial aid and how much they can offer to a student
EFC & the School
Scholarships Free money – don’t have to repay
Grants Free money – don’t have to repay
Loans Have to repay
Student Employment Have to work to earn the money
Types of Financial Aid
Federal Money from the federal government
State Money from the State in which you live
Institutional Money from the College/University (merit, need-
based, athletic) Private
Money from private agencies, organizations, civic groups, high schools, churches, etc.
Sources of Financial Aid
School determines the Cost of Education (budget)
• different at each school
Cost of Education includes not only tuition, fees, room, meals (Direct costs) – ALSO Allowances for books, supplies, personal expense, travel expense, misc expense
Cost of Education
School takes Cost of Education and subtracts your EFC (results of your FAFSA) to determine a students “financial need”
Cost of Education
- Expected Family Contribution (EFC)___________________________________________
Financial Need
EFC & the School
• If the EFC is less than the Cost of Education, the student can be eligible for subsidized financial aid such as grants, scholarships, subsidized student loans
EFC & the School
If the EFC is greater than the Cost of Education, the student is eligible for unsubsidized financial aid such as unsubsidized student loans and parent loans
Merit scholarships are based on a student’s academic performance and can be awarded regardless of the EFC
EFC & the School
• The school communicates with the student via a Financial Aid Award
• Awards may be electronic or paper• If electronic, student would receive notice or
email to view their award information on line
• Awards offered are reported on the Award Letter – Awards make up a “Financial Aid Package”
Financial Aid Award Letters
Families should determine Direct costs of the school• Tuition, Fees, Room, Meals and any other
expenses charged on the bill
• May also want to factor in an amount for books – An average amount per semester for student enrolled full-time is $500 however the sciences, engineering and some other classes may be more expensive.
Financial Aid Award Letters
Families should understand each award listed• Is the award a LOAN? = Money you will have to
repay• Is the award a scholarship or grant? = Money you
won’t have to repay• Are the scholarships offered by the school
renewable?
Financial Aid Award Letters
Families should subtract the awards you want to accept from the amount you will be billed by the school to determine how much, if anything, you will need to pay for the student to attend that school◦ Some options for paying that balance:
Federal Parent Loan Private Loan Tuition Payment Plan
Financial Aid Award Letters
FAFSA is based on “prior year income”◦ Use 2012 income information for 2013-2014
FAFSA
Notify the Financial Aid Office of financial changes for 2013 if decreased from 2012
◦ Loss of Job – reduction in income◦ Extra Medical Expenses◦ Divorce or Separation
Special Circumstances
Schools process federal student and parent loans through Direct Lending
• Direct Loan program = The federal government is the lender. The school communicates with the government to process the educational loans
• Students will see the federal Direct Student Loan offered on the Financial Aid Award
• May see federal Direct Parent PLUS Loan on Award
Loan Programs
The Direct Loan program offers the Federal Student Loan for students and the Federal PLUS Loan for Parents
• School will provide information regarding their process and application procedure to apply for the loans - You may also review school’s website for the process
Loan Programs
Students and Parents must sign Promissory Notes for the loans
Students must also complete Entrance Loan Counseling before borrowing the student loan• The loan counseling lets the student know their
rights and responsibilities as a student loan borrower
Loan Programs
Direct Student Loans• Low Interest rates• Interest rate set July 1 each year - not to exceed
8.25% - Fixed rate• Student is the borrower• Students are eligible regardless of family income• No penalty for early repayment of loan
Student Loans
The Subsidized Loan will be offered to students who demonstrate “financial need” based on the results of the FAFSA (EFC) and other financial aid the student is receiving
• Up to $3,500 for a first year student depending on financial need
• July 1, 2013 Expected to be fixed interest rate of 6.8% for undergraduates
• Government pays interest on Subsidized loans, & principal is deferred while student is enrolled at least half-time
Student Loans
Unsubsidized Student Loan• Fixed interest rate is 6.80% for undergraduates• Principal is deferred while student is enrolled at
least half-time• Interest accrues while student is enrolled. If not
paid, it will capitalize causing the balance of the loan to become larger
• Interest is charged quarterly (every three months)• Example: $2,000 loan will accrue
approximately $140 of interest for a year therefore loan balance will increase to $2,140 in one year
Student Loans
• The PLUS is a Federal Loan for parents to borrow, to assist with paying educational costs• Interest rate is a fixed rate at 7.9% • Credit based loan – Government reviews for any negative
credit history• Repayment begins 30-60 days after loan is fully disbursed.
Parents normally borrow for the full year therefore the loan will not be fully disbursed until spring semester loan disburses, so repayment begins in February or March (option to defer payment until after student is no longer enrolled full-time)
• Repayment period up to 10 years (depending on loan amount borrowed)
• No penalty for early repayment of loan
Parent Loan
• Parent may borrow up to Cost of Education minus other financial aid the student is receiving (loans are considered financial aid)
• Borrowing up to the Cost of Education will allow the parent to receive a refund (Remember: Cost of Education is more than the actual bill). The refund will act as a reimbursement for educational expenses the parent may have paid to get the student to school and settled in their dorm room
• Parent has option of how much to borrow. Parent may want to borrow only what they need to pay the bill
Parent Loan
• Parent Loans and Student Loans have Fees• Actual disbursement of loan that is deducted from
the student’s bill is lower than amount borrowed (by a small percent)
• Student loans approximately 1% in fees • Parent loans approximately 4% in fees
• Example:• Parent Loan for $5,000 with 4% in fees will disburse to
the school in the amount of $4,800 ($2,400 per semester)
• Student Loan for $3,500 with 1% in fees will disburse to the school in the amount of $3,465 ($1,732.50 per semester)
Loans
• Some parents may not meet the credit criteria for the parent loan therefore the loan will be denied
• Options for Parents:• Appeal the decision and request another review of
Credit History if something has changed (if cleared up incorrect/negative issue on credit report)
• Obtain an Endorser (someone to co-sign the loan)• Allow the loan to be denied and student borrow
LIMITED AMOUNT of additional federal student loan
Parent Loan Denial
• When a parent loan is denied, the government allows the student to borrow additional Unsubsidized Student Loan, however the amount is limited (up to $4,000/year for Freshman and Sophomores, and up to $5,000/year for Juniors and Seniors)
• Student must accept the additional Unsubsidized loan award, before a school can process the additional amount
Parent Loan Denial
• Sometimes students will need additional funding beyond the financial aid that is offered, therefore there are Private Alternative loans available through lenders
• Be sure to review terms & conditions of Private Alternative Loans. May have variable interest rate, require student to make monthly payments immediately, etc.
• These loans are not as lenient in repayment as federal loans. They do not have repayment options like federal loans.
• Students may borrow up to the Cost of Education minus any other financial aid they are receiving (loans are considered financial aid)
Private Alternative Loans
• The student is the borrower of the loan• Loans are based on credit-worthiness – will
likely look at income to debt ratio• Co-signer is usually required• These loans may have VARIABLE interest
rates• Some now offering Fixed interest rates
• May REQUIRE interest to be paid immediately
• Could have fees• Cannot consolidate with federal loans
Private Alternative Loans
Student applies with the lender and if loan is approved, the school will have to process the loan
Check for loan programs within the state◦ Connecticut Higher Education Supplemental Loan
Authority ◦ www.chesla.org◦ Currently has 5.95% Fixed Annual Rate◦ Must make interest payments
Check for loan programs with your credit union for competitive rates/terms
Some lenders/agencies offer loans for parents
Private Alternative Loans
• Most schools offer a tuition payment plan
• Many contract with outside vendors• May offer a 10 Month interest free plan to pay off
the balance due• Payments begin in June and end in March• Normally there is a fee to join (about $80 per
year)• Monthly payments are withdrawn from your bank
account for 10 months
Payment Plans
• Because these plans allow a shorter time to pay the balance, you usually have to make a higher monthly payment than you would in repaying a parent loan
• Make sure you can afford the monthly payments for the payment plan before signing up
Payment Plans
Merit Scholarships
◦ Often offered through Admissions Office rather than through Financial Aid Office
Be sure to meet Admission Application dates & submit appropriate paperwork to be considered
Scholarship Searching
• Make sure student completes ALL forms • Some Financial Aid offices have a separate form for
students to complete for scholarships• Some departments within the college or university
may have their own scholarships to offer and their own process beyond the Financial Aid Office• A student should contact the department in which they
are majoring or review their website to determine scholarship opportunities and the process
• Some departments may offer scholarships to Freshmen, others may not consider a student for scholarships until the student “declares his or her major”
Scholarship Searching
• Community Service Organizations & Churches
• Company where your Parent is Employed
Scholarship Searching
• Search on your Own on the Internet◦ Watch for Scholarship Scams
Should not have to pay money to get FREE moneyDon’t give bank account or credit card information
• www.zinch.com• www.fastweb.com• www.collegeboard.com/paying• www.freschinfo.com • www.eCampusTours.com• www.collegeanswer.com• www.finaid.org • Finaid.org has scholarship listings categorized by unusual
scholarships, average student scholarships, community service scholarships, prestigious scholarships
Scholarship Searching
Watch for scholarship scams!◦ You should not have to pay money to get FREE money
6 things to look for in detecting a scholarship scam:◦ “a scholarship guarantee” – No service can guarantee it will get you money.◦ “the service will do all the work” – No service can provide all of the personal
information required, fill out essays, or supply the references a scholarship may require.
◦ “a scholarship costs money” – Though some legitimate scholarships charge fees, be wary of charges. Applying for scholarships should NOT cost you money.
◦ “you can only find this information here” – Scholarships, grants and awards for school are available in directories and all over the web. No one organization has a monopoly on the information
◦ “being a finalist in a contest you never entered or randomly being selected by a national foundation to receive an award” – Most organizations only contact you after you have made an inquiry
◦ “a service needs your credit card or checking account information” – NEVER!
Scholarship Searching
• U.S. Department of Education, Student Aid on the Web www.studentaid.ed.gov
• Select “Types of Aid” • Select “Learn More” in the “Scholarship Search” box
• State of Connecticut Dept. of Higher Education• www.ctdhe.org and select “Financial Aid” at top of
screen on right
Other Resources
• Go to www.newhaven.edu
• Select “Quick Links”
• Select “Net Price Calculator”• Provides an ESTIMATE of the financial aid you
could receive – This is NOT an award• Some funds are limited – may see in NPC results
but not on your Financial Aid Award
• Try to provide accurate estimated information• Results will not be an accurate estimate if
incorrect information is provided
Net Price Calculator