WELCOMES Parents and Students Principia NP’s Mission Statement: The primary mission of Principia...
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WELCOMES Parents and Students Principia NP’s Mission Statement: The primary mission of Principia NP is to educate parents and students about the financial aid and admissions process while helping the planet. Fall 2004 www.principianp.com
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Transcript of WELCOMES Parents and Students Principia NP’s Mission Statement: The primary mission of Principia...
WELCOMESParents and Students
Principia NP’s Mission Statement:
The primary mission of Principia NP is to educate parents and students about the financial
aid and admissions process while helping the planet.
Fall 2004
www.principianp.com
www.principianp.com
WELCOMEParents and Students
to “The Financial Aid Game”
Principia NP’s Mission Statement:
The primary mission of Principia NP is to educate parents and students about the
financial aid and admissions process while helping the planet.
www.principianp.com
Presentation Outline•The Good
•The Bad
•The Ugly
•What is Financial Aid
•The FAFSA Form & The CSS Profile Form
•Award Letter
•What will college really cost my family?
•Will my family qualify for Aid?
•What are my families options for paying for college
www.principianp.com
Will I Graduate in 4 years??
• Public School -20% graduate in 4 years.
• Private School -50%.• 65% of all enrolled students
are still in college after 4 Years
• 50% Do Not Finish the same course of study that they Started
www.principianp.com
4Years or 5?
• College’s require 124 to 128 Credits to graduate a 4 year institution
• 12CR X 2 (Semester Per Yr) = 24 X 4 (Year in School) = 96 Credits
• 15CR X 2 (Semester Per Yr) = 30 X 4 (Year in School) = 120 Credits
15CR (Each Semester 3 Yr) + 2 Summer & Winter = 126 90 Credits + 36 Credits
6 and 7 year plans also available
www.principianp.com
The Bad The largest Graduation class in History
Over 3.5 Million High School Students 2011
Northeast has the highest SAT Average 530 Math 540 CR
On average students are applying to 7 to 10 College
•Previous Average 5 to 6 colleges
The average debt of graduating students is $32,000
www.principianp.com
The Bad
Average College Cost • Public $12,000 to $25,000
• Private $30,000 to $44,000• Elite $45,000 to $60,000
$0 $10,000 $20,000 $30,000 $40,000 $50,000
Public
Private
Elite
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They have now crossed over $60,000
• Columbia Univ. $61,385
• Fordham $57,450
• NYU $62,757
• George W. Univ. $62,407
• Sarah Lawrence $63,344
* Numbers account for tuition, room and board and misc cost
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No need to panic
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Understand the lingo
What Does Financial Aid Really Mean?
Gift Aid = FREE!!
Self Help = Loans and Work-study!!
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How Financial Aid is Awarded
Financial Aid
Scholarships
Grants
LoansWork-Study
www.principianp.com
Are you Financially Fit or Academically Sound
Where is your advantage
GPA & SAT Family Finances
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Merit Aid
• Academic– GPA, Class Standing, SAT Score
• Athletic– Scholarship or help with admission
• Neglected Resources– College’s own money
www.principianp.com
• Many institutions offering such awards:
• Follow a simple rubric based primarily on SAT or ACT scores and secondarily on class rank/ grade point average
• Require earlier application deadlines and supplemental materials for consideration
Colleges want to attract the students who best represent their highest academic standard
Institutional Scholarships
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Some Institutions follow a straightforward rubric when awarding scholarships, based primarily on SAT or ACT scores, secondarily on class
rank. Priority deadlines often apply.
College Scholarship Entry Criteria Priority Deadline Amount
Iona College Presidential 1300 SAT, 29 ACT December 1st $27,650
Adelphi Univ. Dean’s 1050 to 1190 SAT Regular Admissions $8,000-$11,500
top ¼ of Class
U.R.I. Centennial 1200 SAT December 15th $2,000-$8,000
top 1/3 of class
FDU Dean’s 1060 SAT Regular Admissions $9,500 3.0 GPA
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Neglected Resources
• Scholarships Vary – Leigh Marching Band $1,000 to $2,500
– Princeton Steamboat $12,000
– Antioch College in Yellow Springs, Ohio Free Tuition !!!!!!
– North Carolina State University John Gatling Scholarship Full Cost
• Restricted Endowment Funds– Available through the admissions office
– Criteria set by Donor and committee
– Sometimes require demonstrated need
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Neglected Resources • Employer Sponsored Scholarships
– Available to employees and dependents– Criteria include both merit and need– Employers include:
Dress Barn Abbott LaboratoriesUPS GlaxoSmithKlineKulite Semiconductor Toys “R” UsTurner Construction Valley National BankDelta Dental Johnson & JohnsonMcDonalds Check with your employer
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Understand the rules before you start playing the game
• Some Schools give merit
• Some give need
• Some give both
• COA & EFC
• Profile vs Fafsa
• The new Harvard Int.
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www.principianp.com
HOW DO I QUALIFY?
COST OF ATTENDANCE (COA)
MINUS
EXPECTED FAMILY CONTRIBUTION (EFC)
FINANCIAL NEED
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WHAT COMPRISES COA?• TUITION AND FEES• ROOM AND BOARD• PERSONAL EXPENSES• BOOKS, SUPPLIES, COMPUTER• TRANSPORTATION• LOAN FEES
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Which Form Do I fill Out?
FAFSA FORM CSS PROFILE
www.principianp.com
Starting the process
Important Things to know
•Federal Methodology is the formula created by Congress to determine the EFC.
• Primary Residence and Retirement Accounts are not assessed
• Used by all public & Private colleges
• Information Collected on FAFSA Form
Start after Jan. 1
www.principianp.com
Online or Paper form
What is your best bet
•Application Fees
•Reliability
•Making deadlines
•Making it easy
•Paper forms are becoming extinct
WWW.FAFSA.GOV
www.principianp.com
Online or Paper form
What is your best bet
•Application Fees
•Reliability
•Making deadlines
•Making it easy
•Paper forms are becoming extinct
IRS Data Retrieval
www.principianp.com
Online or Paper form
What is your best bet
•Application Fees
•Reliability
•Making deadlines
•Making it easy
•Paper forms are becoming extinct
IRS Data Retrieval
www.principianp.com
Online or Paper form
What is your best bet
•Application Fees
•Reliability
•Making deadlines
•Making it easy
•Paper forms are becoming extinct
IRS Data Retrieval
ww.principianp.com
Get Your PIN
Research The Schools and Programs
•There are more than 3800 colleges & Universities
•Double Check Majors
•Check out deadlines
•Merit Scholarship Deadlines
•Retention Rate
•SAT Requirements
•Financial aid and scholarships available
WWW.PIN.GOV
www.principianp.com
Fafsa Counts
• Cash, Savings, Checking
• Stocks and Bonds
• Mutual Funds
• 529 Plans
• Second Homes
• Child Support
• Untaxed Income
• Retirement Contributions
www.principianp.com
For Business Owners:
• The value of a business is not assessed if that business employs fewer than 100 employees.
• Corporate tax returns may be requested and income may be imputed as personal income.
www.principianp.com
Expected Family Contribution (EFC)
Parent’s FormulaParents' Income - A Living Allowance (family size)- Taxes x 22% to 47% = Parents’ Contribution from Income
Parents’ Assets - Asset Protection Allowance (age based) x 5.6% = Parents’ Contribution from Assets
Student’s FormulaStudents’ Income - Income Taxes - Standard Deduction of $3,500 X 50% = Students’ Contribution from Income
Students’ Assets - no deductions X 20% = Students’ Contribution from Assets
www.principianp.com
Fafsa Part II
Important New Requirement
State of New Jersey’s New Financial Aid
Requirements
www.principianp.com
Hesaa Requirements• Drivers License
• Student’s Social Security Benefits
• Student’s
• Student’s Earned Income Credit
• Parent’s Social Security Benefits
• Parent’s Earned Income Credit
www.principianp.com
Starting the process
Important Things to know
•Institutional Methodology is the formula created by Private Colleges to determine the EFC.
• Primary Residence and Retirement Accounts are assessed
• Used by Private and Elite Colleges
• Information Collected by CSS Profile
*START DEPENDS*
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Profile Counts
• Cash, Savings, Checking
• Stocks and Bonds
• Mutual Funds
• 529 Plans
• Second Homes
• Child Support
• Non-Custodial Parents Information
• Home and Car Value
• Untaxed Income
• Retirement Accounts
www.principianp.com
For Divorced or Remarried Parents:
• FAFSA does not consider the income and assets of the non-custodial parent in determining aid.
• If the custodial parent has remarried, the spouse is considered a parent, and that person’s income and assets are counted.
www.principianp.com
The “Financial Aid Initiative”
• Harvard U.
• Yale U.
• Brown U.
• Princeton
• Amherst College
• Cornell U.
• Dartmouth U.
• Duke U.
• M.I.T.
• U. of Chicago
• U. Of Penn.
• Williams College
Enhanced Eligibility Eliminated Loans
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Harvard University
The “Zero to 10%” Standard:
Zero to $60,000: Families pay nothing
$60k to $120k: Phase-in to 10%
$120k to 180k: 10% of income
180k and above special circumstances apply
Examples of Parental and Student Annual Contributions
Case A Case B Case C
Parents’ Income $60,000 $90,000 $180,000
Parents’ Assets $100,000 $150,000 $200,000
Parents’ Contribution:One child in college
New policy 0 $2,950 $23,050
Old policy $4,450 $12,550 $38,150
Parents’ Contribution:Two children in college
New policy 0 $1,500 $11,650
Old policy $2,750 $7,350 $22,300
Student’s Contribution
New policy $2,500 $2,500 $2,500
Old policy $4,400 $4,400 $4,400
Yale University OLD vs. new comparison
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www.principianp.com
Two in CollegeTwo in College
Expected Family Contribution is divided by the number of students
One Student Two Students
COA $35,000 $70,000EFC $20,000 $20,000
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Frequent Filing Errors
• Parent and student Social Security Numbers
• Divorced/remarried parental information
• Untaxed income
• U.S. income taxes paid
• Household size
• Number of household members in college
• Real estate and investment net worth
www.principianp.com
Have these on hand!Have these on hand!• U.S. income tax return (IRS Form 1040, 1040A or 1040EZ)
• W-2 forms and other records of earnings
• Current bank statements
• Records of untaxed income
• Business and farm records
• Records of stocks, bonds and other investments
• Student’s driver’s license and social security number
www.principianp.com
And then. . .
School sends financial aid package award letter to the student.
Student reviews and returns award letter, indicating preferred lender (if needed) and any necessary changes.
www.principianp.com
The Award Letter
What is on the Award Letter• The Cost of Attendance
• The EFC
• Estimated Financial Aid
• Scholarships
• Grants
• Loans
• Work-Study
www.principianp.com
Let’s Make a Deal
• You can ask for more– Always ask for more– Use similar colleges– Be pro-active but not rude
If you don’t ask you will never know
www.principianp.com
www.principianp.com
Meeting a Student’s Financial Need
• Choose your college wisely, because:– Not all will meet 100% of need
• Private colleges generally:– Meet a higher percentage of need– Award a higher percentage of gift
aid
• Many students can attend a private college for the same cost as a public university!
www.principianp.com
Private VS. PublicMontclair State UniversityCost of Attendance $27,493Expect Family Contribution $10,000
Financial Need $17,493
Avg. Percent of Need Met 63% ($11,021)
Unmet Need 36% $6,472
Avg. Scholarship And Grant Given 37% $4,049
Actual cost Gift Aid - COA = $20556
Cornell UniversityCost of Attendance $55,374Expect Family Contribution $10,000
Financial Need $45,374
Avg. Percent of Need Met 100% ($45,374)
Unmet Need 0% $0
Avg. Scholarship And Grant Given 100% $45,374
Actual cost COA – Gift Aid = $10,000
www.principianp.com
Fall 2004
Loans
Direct Loans- Subsidized - Unsubsidized
Perkins Loans- Need based loan
PLUS Loans-Parent Loans
www.principianp.com
Fall 2004
Loans Part II
NJ ClassSallie MaeWells FargoCiti BankChase PNC
www.principianp.com
The Green Initiative
• Principia NP is fully funded and supported by the Green Initiative. The Green Initiative is an e-waste recycling program created by the founder of Principia NP to make it possible for all parents, students, and guidance officers to receive college funding and admissions assistance without charge or obligation.
www.principianp.com
The Green Scholarships
E-Waste Includes:• Computers
• Laptop Computers
• PDA’s
• Sports equipment
• T-I Calculators
• Stereo equipment
• Printers
• Business &
Office Equipment
• DVD Players
• Toner (full or empty)
• Cameras
*We do pick up materials at offices.
The Green Scholarships
E-Waste Includes:• Computers
• Laptop Computers
• PDA’s
• Sports equipment
• T-I Calculators
• Stereo equipment
www.principianp.com
• Printers
• Business &
Office Equipment
• DVD Players
• Toner (full or empty)
• Cameras
*We do pick up materials at offices.
www.principianp.com
Additional Information • Financial Aid: www.fafsa.ed.gov www.collegeboard.com www.studentaid.ed.gov www.hesaa.org• Scholarship Searches: www.fastweb.com www.finaid.com
www.principianp.com
Know Your Advantages
www.principianp.com
[email protected] 908-400-1363
Principia NP’s Mission Statement:
The primary mission of Principia NP is to educate parents and students about the financial aid and admissions process while helping the planet. Fall
2004
