Financing a College Financing a College EducationEducation

2009-2010Presented by

Hudson Valley Community College

AgendaAgenda

FAFSA application procedures

Definition and calculation of financial need

Description of major federal financial aid programs

New York State TAP application process

Reviewing award letters from colleges

Financial aid eligibility criteria

General Student General Student Eligibility CriteriaEligibility Criteria Pursuing degree or certificatePursuing degree or certificate Courses must be applicable to degree/certificateCourses must be applicable to degree/certificate U.S. citizen or eligible non-citizenU.S. citizen or eligible non-citizen Males MUST register with Selective ServiceMales MUST register with Selective Service Valid Social Security NumberValid Social Security Number Previous student loans must not be defaultedPrevious student loans must not be defaulted Must not owe overpayment of Federal grant or Must not owe overpayment of Federal grant or

loanloan Maintain satisfactory academic progress Maintain satisfactory academic progress

standards (as defined by school)standards (as defined by school)*Drug related convictions can cause loss of eligibility*Drug related convictions can cause loss of eligibility

Independent Student Independent Student DefinitionDefinition At least 24 years old by December 31st of award At least 24 years old by December 31st of award

year covered by FAFSAyear covered by FAFSA Graduate or professional studentGraduate or professional student MarriedMarried Have legal dependents other than a spouseHave legal dependents other than a spouse Orphan or ward of the courtOrphan or ward of the court Veteran of U. S. Armed ForcesVeteran of U. S. Armed Forces Currently serving on active duty in U.S. Armed Currently serving on active duty in U.S. Armed

Forces for purposes other than training.Forces for purposes other than training. New for 2009-2010 Homeless, unaccompanied New for 2009-2010 Homeless, unaccompanied

youth, emancipated minor, have legal guardian.youth, emancipated minor, have legal guardian. Determined to be “independent” by financial aid Determined to be “independent” by financial aid

administratoradministrator

General Application General Application ProcessProcess

Submit Free Application for Federal Student Aid Submit Free Application for Federal Student Aid (FAFSA) prior to school’s deadline(FAFSA) prior to school’s deadline

Submit NYS TAP applicationSubmit NYS TAP application Check with each school to determine:Check with each school to determine:

– Required application materials & deadlines Required application materials & deadlines (Verification documents, CSS Profile, or other (Verification documents, CSS Profile, or other institutional forms)institutional forms)

Contact school Financial Aid Office for their Contact school Financial Aid Office for their specific application policies & procedures. College specific application policies & procedures. College websites are a good resource for this information.websites are a good resource for this information.

FAFSA: Free Application FAFSA: Free Application for Federal Student Aidfor Federal Student Aid

Collects family’s personal & financial information Collects family’s personal & financial information used to calculate student’s EFC used to calculate student’s EFC

May file FAFSA in one of two ways:May file FAFSA in one of two ways:– Electronically via FAFSA on the WebElectronically via FAFSA on the Web– Paper FAFSAPaper FAFSA

Signatures of student and at least one parent are Signatures of student and at least one parent are requiredrequired– Electronic FAFSA uses PIN as signatureElectronic FAFSA uses PIN as signature– Now can apply for PIN “real time” and choose own PIN.Now can apply for PIN “real time” and choose own PIN.

PIN RegistrationPIN Registrationwww.pin.ed.govwww.pin.ed.gov

Get a PIN Get a PIN

NOW -NOW -each each student student & at & at least least one one parent!parent!

FAFSA on the WebFAFSA on the Webwww.fafsa.ed.gov

Can be Can be filed as filed as early as early as January January 11stst of of award award yearyear

AVOID ERRORS!AVOID ERRORS!Frequent FAFSA Frequent FAFSA Errors:Errors: Parent & student Social Security NumbersParent & student Social Security Numbers Divorced/remarried parental informationDivorced/remarried parental information Income earned by parents/stepparentsIncome earned by parents/stepparents U.S. income taxes paid U.S. income taxes paid Household sizeHousehold size Number of household members in collegeNumber of household members in college Real estate & investment net worthReal estate & investment net worth

– The value of your primary residence is not included.The value of your primary residence is not included.– The value of retirement accounts (i.e., IRA, 401(k), The value of retirement accounts (i.e., IRA, 401(k),

403(b), pension plan) and life insurance policies are not 403(b), pension plan) and life insurance policies are not includedincluded

– Investments include stocks, bonds, certificates of Investments include stocks, bonds, certificates of deposits, mutual funds, trust fundsdeposits, mutual funds, trust funds

Apply for New York State Apply for New York State Aid Aid

New York StateNew York StateTuition Assistance Tuition Assistance Program (TAP) Program (TAP) www.tapweb.orgwww.tapweb.org

New York State TAPNew York State TAPwww.hesc.org New York residents attending New York Schools New York residents attending New York Schools

onlyonly Must submit FAFSA in order for TAP application to Must submit FAFSA in order for TAP application to

be availablebe available First school listed on FAFSA will receive TAP award First school listed on FAFSA will receive TAP award

informationinformation Awards based on New York State Net Taxable Awards based on New York State Net Taxable

Income from prior year & school’s tuitionIncome from prior year & school’s tuition Net Taxable Income limits:Net Taxable Income limits:

– $80,000 for dependent student$80,000 for dependent student– $10,000 for independent student without $10,000 for independent student without

childrenchildren Maximum award is $5,000 for dependent studentMaximum award is $5,000 for dependent student

More New York State AidMore New York State Aid Part-time TAPPart-time TAP

– For students enrolled in less than twelve degree applicable For students enrolled in less than twelve degree applicable credits ANDcredits AND

– Completed twelve credits per semester in two preceding, Completed twelve credits per semester in two preceding, consecutive semesters. Must have been a first time, consecutive semesters. Must have been a first time, freshman in 2006-2007 or afterfreshman in 2006-2007 or after

– Uses same online application as full-time TAPUses same online application as full-time TAP

APTS (Aid for Part-Time Students)APTS (Aid for Part-Time Students)– Separate, paper application available in Financial Aid Office Separate, paper application available in Financial Aid Office

and processed by college, not NYSand processed by college, not NYS– Awards vary, not to exceed cost of tuitionAwards vary, not to exceed cost of tuition– Must be enrolled in less than twelve degree applicable creditsMust be enrolled in less than twelve degree applicable credits– Available for students who have attended college prior to Available for students who have attended college prior to

2006-2007 2006-2007

What’s Next NowWhat’s Next Nowthat I’ve Applied?that I’ve Applied?Financial Aid Office:Financial Aid Office:

1.1. Receives FAFSA resultsReceives FAFSA results2.2. Requests additional information, if Requests additional information, if

necessary (Verification)necessary (Verification)3.3. If additional information is not If additional information is not

required, notifies student of financial required, notifies student of financial aid eligibility by mail or email.aid eligibility by mail or email.

The Verification The Verification ProcessProcess FAFSA applications are randomly selected by FAFSA applications are randomly selected by

the U.S. Dept. of Education to be “verified”the U.S. Dept. of Education to be “verified” Information on the FAFSA must be compared Information on the FAFSA must be compared

with the information you provide (i.e. tax with the information you provide (i.e. tax forms) and corrections made as necessaryforms) and corrections made as necessary

Verification process is completed by Verification process is completed by individual financial aid officesindividual financial aid offices

If you are selected, aid cannot be processed If you are selected, aid cannot be processed for the student until his/her application has for the student until his/her application has been verifiedbeen verified

Cost of AttendanceCost of Attendance(COA)(COA) Tuition & fees Room & board Books, supplies,

transportation, & miscellaneous personal expenses, including documented costs for personal computer

Loan fees, study abroad costs, dependent care expenses

Cost of AttendanceCost of AttendanceMinusMinus

Expected Family Expected Family ContributionContribution

EqualsEquals

NEEDNEED

Cost of Attendance Cost of Attendance (COA)(COA)

DIRECT COADIRECT COA – – out of out of pocket expense pocket expense paid directly to paid directly to institution such as:institution such as:– TuitionTuition– FeesFees– Room & Board (at 4 Room & Board (at 4

year institutions)year institutions)– Personal Computer Personal Computer

(if required by (if required by school)school)

INDIRECT COAINDIRECT COA – – other other costs that may be costs that may be incurred while incurred while attending school such attending school such as:as:– BooksBooks– Personal Exp.Personal Exp.– Room & BoardRoom & Board– Loan FeesLoan Fees– TransportationTransportation

Expected Family Expected Family Contribution (EFC)Contribution (EFC) Federal formula takes into Federal formula takes into

account:account:– Parent and student income & assetsParent and student income & assets– Size of familySize of family– Number of children in collegeNumber of children in college

Schools use EFC to determine:Schools use EFC to determine:– Eligibility for Pell and SEOG grantsEligibility for Pell and SEOG grants– Subsidized vs. Unsubsidized loansSubsidized vs. Unsubsidized loans

Federal Pell & SEOGFederal Pell & SEOGGrants (Need-Based Aid)Grants (Need-Based Aid)

Awarded to eligible undergraduates pursuing first Awarded to eligible undergraduates pursuing first Bachelor’s degreeBachelor’s degree

Actual Pell award amount based on COA, EFC, & Actual Pell award amount based on COA, EFC, & enrollment statusenrollment status

SEOG awarded first to students with exceptional SEOG awarded first to students with exceptional financial needfinancial need

Maximum Awards for 2008-2009:Maximum Awards for 2008-2009:– Pell $4,731 Pell $4,731 – SEOG $4,000SEOG $4,000

Awards are prorated based on number of degree Awards are prorated based on number of degree applicable creditsapplicable credits

Academic Academic Competitiveness Grant Competitiveness Grant (ACG)(ACG)

Student must have completed Student must have completed rigorous rigorous high school high school program after January 1, 2006program after January 1, 2006

Must have minimum GPA of 3.0 at end of year 1 in Must have minimum GPA of 3.0 at end of year 1 in college in order to qualify for ACG in year 2college in order to qualify for ACG in year 2

Maximum award of $750 in year 1 and $1,300 in Maximum award of $750 in year 1 and $1,300 in year 2year 2

Student must be Pell eligibleStudent must be Pell eligible Full-time or half-time studentFull-time or half-time student Accepted in a certificate, two or four year degree Accepted in a certificate, two or four year degree

program program U.S. Citizen or eligible non-citizenU.S. Citizen or eligible non-citizen

National National SScience and cience and MMathematics athematics AAccess to ccess to RRetain etain TTalent (SMART) Grantalent (SMART) Grant Third and fourth year undergraduate Third and fourth year undergraduate

studentsstudents Federal Pell Grant recipientFederal Pell Grant recipient U.S. citizen or eligible non-citizenU.S. citizen or eligible non-citizen Full time or part timeFull time or part time Eligible majorEligible major 3.0 GPA3.0 GPA Award amount:Award amount:

– $4,000 for third and fourth year of study$4,000 for third and fourth year of study

TTeacher eacher EEducation ducation AAssistance for ssistance for CCollege and ollege and HHigher Education igher Education (TEACH) Grant Program(TEACH) Grant Program TEACH Grant recipients must agree to serve as a TEACH Grant recipients must agree to serve as a

full-time teacher in a high-need field in a public or private full-time teacher in a high-need field in a public or private elementary or secondary school that serves low-income elementary or secondary school that serves low-income students for at least four academic years within eight years students for at least four academic years within eight years of completing the degree.of completing the degree.

Recipients that fail to complete this service obligation will Recipients that fail to complete this service obligation will have their TEACH Grant converted to a Federal Direct have their TEACH Grant converted to a Federal Direct Unsubsidized Stafford Loan with interest since acceptance of Unsubsidized Stafford Loan with interest since acceptance of award added. award added.

Meet certain academic achievement requirements (generally, Meet certain academic achievement requirements (generally, scoring above the 75th percentile on a college admissions scoring above the 75th percentile on a college admissions test or maintaining a cumulative GPA of at least 3.25). test or maintaining a cumulative GPA of at least 3.25).

High Need Fields: Bilingual Education, English Language High Need Fields: Bilingual Education, English Language Acquisition, Foreign Language, Mathematics, Reading Acquisition, Foreign Language, Mathematics, Reading Specialist, Science, Special Education. Specialist, Science, Special Education.

$4,000 per year, $16,000 for undergraduates total, $8,000 $4,000 per year, $16,000 for undergraduates total, $8,000 total for graduate studentstotal for graduate students

Federal Work-Study Federal Work-Study (FWS)(FWS) Undergraduate and graduate students Undergraduate and graduate students

are eligibleare eligible Employment may be on or off campusEmployment may be on or off campus Schools must use portion of FWS funds Schools must use portion of FWS funds

for community service employment for community service employment activitiesactivities

Student works to earn pay checkStudent works to earn pay check Pay rate is determined by schoolPay rate is determined by school

Federal Perkins LoanFederal Perkins Loan Eligible studentsEligible students

– Undergraduate and graduate studentsUndergraduate and graduate students– Priority to students who show “exceptional Priority to students who show “exceptional

need,” as defined by schoolneed,” as defined by school Annual loan amount variesAnnual loan amount varies

– Maximum amounts of $4,000 or $6,000 for Maximum amounts of $4,000 or $6,000 for undergraduate and graduate students undergraduate and graduate students respectivelyrespectively

Interest rate: 5%Interest rate: 5% 9 month repayment grace period.9 month repayment grace period. Repayment period may be up to 10 yearsRepayment period may be up to 10 years

Stafford LoansStafford LoansFFELPFFELP

Federal Family Federal Family Education Loan Education Loan ProgramProgram

Funds provided by Funds provided by lenders (e.g., banks lenders (e.g., banks or credit unions)or credit unions)

FeesFees: Up to 3% : Up to 3% origination fee & 1% origination fee & 1% insurance premiuminsurance premium

DIRECT LENDINGDIRECT LENDING Federal Direct Federal Direct

Student Loan Student Loan ProgramProgram

Funds provided Funds provided directly by federal directly by federal governmentgovernment

FeesFees: Up to 4% : Up to 4% origination feeorigination fee

Stafford LoansStafford LoansSubsidizedSubsidized Must Must

demonstrate demonstrate “need”“need”

Interest free to Interest free to student while in student while in school (and school (and enrolled at least enrolled at least 6 credits)6 credits)

UnsubsidizedUnsubsidized Need is not Need is not

consideredconsidered Interest accruesInterest accrues

– Student can Student can choose to pay choose to pay or capitalize or capitalize while in schoolwhile in school

All Stafford LoansAll Stafford Loans Must be registered for at least 6 degree-applicable credits per semesterMust be registered for at least 6 degree-applicable credits per semester Fixed 6.8%interest rateFixed 6.8%interest rate 6 Month Grace Period 6 Month Grace Period RepaymentRepayment

– Up to 30 yearsUp to 30 years– 4 options4 options

Freshman loan limit is $3,500Freshman loan limit is $3,500 Sophomore loan limit is $4,500Sophomore loan limit is $4,500 Junior and Senior loan limit is $5,500 each yearJunior and Senior loan limit is $5,500 each year School determines criteria for freshman/sophomore/junior/senior statusSchool determines criteria for freshman/sophomore/junior/senior status MPN and Entrance Counseling must be completed prior to borrowing MPN and Entrance Counseling must be completed prior to borrowing

Stafford LoansStafford Loans Effective July 1, 2008, all students now eligible for $2,000 additional Effective July 1, 2008, all students now eligible for $2,000 additional

unsubsidizedunsubsidized

PLUS LOANPLUS LOAN Federal parent loan program for parents of Federal parent loan program for parents of

dependent undergraduate students enrolled in at dependent undergraduate students enrolled in at least 6 degree applicable credits per semesterleast 6 degree applicable credits per semester

Annual loan limit: COA minus other aidAnnual loan limit: COA minus other aid Fixed interest rateFixed interest rate Interest rates beginning July 1, 2006 are 8.50% Interest rates beginning July 1, 2006 are 8.50%

(FFELP) or 7.9% (Direct Lending)(FFELP) or 7.9% (Direct Lending) Repayment begins 60 days after loan is fully Repayment begins 60 days after loan is fully

disburseddisbursed *Credit based*Credit based

Parent Denied for PLUS LoanParent Denied for PLUS Loan:: Student becomes eligible to borrow additional Student becomes eligible to borrow additional

unsubsidized Stafford loanunsubsidized Stafford loan Up to $4,000 for first & second years of Up to $4,000 for first & second years of

undergraduate studyundergraduate study

Alternative LoansAlternative Loans Loans through private bank lenders to help Loans through private bank lenders to help

meet costs not covered by other aidmeet costs not covered by other aid Annual loan limit: COA minus other aidAnnual loan limit: COA minus other aid *Credit based*Credit based Student applicants usually need a parent or Student applicants usually need a parent or

other cosignerother cosigner Many lenders offer educational loans. Many lenders offer educational loans.

Interest rate and terms vary based on lender. Interest rate and terms vary based on lender. Shop around! Shop around!

Usually deferrable while attending schoolUsually deferrable while attending school

Reviewing Award Reviewing Award LettersLetters

2009 – 2010 Financial Aid Eligibility Letter2009 – 2010 Financial Aid Eligibility Letter

Based on full-time enrollment status and EFC of $3,950Based on full-time enrollment status and EFC of $3,950

FallFall SpringSpring Total Total Federal Pell GrantFederal Pell Grant $ 445$ 445 $ 445$ 445 $ 890$ 890Subsidized StaffordSubsidized Stafford 1,750 1,750 1,750 1,750 3,500 3,500Unsub. StaffordUnsub. Stafford 1,000 1,000 1,000 1,000 2,000 2,000Estimated NYS TAPEstimated NYS TAP 250 250 250 250 500 500TOTAL AWARDSTOTAL AWARDS $3,445$3,445$3,445$3,445$6,890$6,890

Reviewing Award Reviewing Award LettersLetters Questions to Consider:Questions to Consider:

– What is the source of the aid?What is the source of the aid? i.e. Is it grant or loan money?i.e. Is it grant or loan money?

– What is the out-of-pocket expense?What is the out-of-pocket expense?– What is the school’s cost of attendance?What is the school’s cost of attendance?– Are the scholarships renewable?Are the scholarships renewable?– Do the scholarships have a GPA Do the scholarships have a GPA

requirement?requirement?

Where To Go From Where To Go From Here…Here… Obtain & review admissions & financial aid Obtain & review admissions & financial aid

materials from each school to which you are materials from each school to which you are applyingapplying

Meet all application deadlinesMeet all application deadlines– Complete FAFSA & any other application Complete FAFSA & any other application

materials, such as College Scholarship materials, such as College Scholarship Service’s PROFILE application, requiredService’s PROFILE application, required

Investigate other sources of aid (scholarships, Investigate other sources of aid (scholarships, employer tuition assistance)employer tuition assistance)

If you feel you have a special financial aid If you feel you have a special financial aid circumstance, please contact the Financial Aid circumstance, please contact the Financial Aid Office for their policies and proceduresOffice for their policies and procedures

Communicating with Communicating with CollegesCollegesFERPA – Federal Family Educational Rights & FERPA – Federal Family Educational Rights &

Privacy Act (1974)Privacy Act (1974)

What is it?What is it?– Federal law that protects the privacy of student Federal law that protects the privacy of student

education recordseducation records

What does this mean for parents?What does this mean for parents?– Find out each school’s FERPA policyFind out each school’s FERPA policy– You may need to have written permission from the You may need to have written permission from the

student for any inquiriesstudent for any inquiries– You may need identification numbers, passwords, You may need identification numbers, passwords,

or PIN numbers to obtain information or even pay or PIN numbers to obtain information or even pay the school billthe school bill

Good Luck!!!Good Luck!!!