What you need to What you need to know about know about

Financial Aid Financial Aid forfor2015-20162015-2016

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Presented by:Andi SchreibmanFinancial Aid Officer,Las Positas College

What Will You Learn Today?What Will You Learn Today?• Important terms explained • Calculating Eligibility• Categories, types and sources of Financial Aid• Application Process & Deadlines• Awarding and Packaging• Tips for completing the FAFSA• Special Circumstances• What’s next…finding help • Answers to your questions

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TERM: ‘Financial Aid’TERM: ‘Financial Aid’Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses

TERM: ‘FAFSA’ The Free Application for Federal Student Aid (‘FAFSA’) is the financial aid application that must be completed for every college in the U.S.

Term: ‘Expected Family Term: ‘Expected Family Contribution’ (EFC)Contribution’ (EFC)

• Amount the govt assumes a family can reasonably be expected to contribute toward a student’s education for one year

• Stays the same regardless of college• Two components

– Parent contribution– Student contribution

• Calculated using data from the FAFSA application form and a federal formula

Term: Term: ‘Cost of Attendance’ (COA)‘Cost of Attendance’ (COA)

• Average cost to attend a specific college for one year

• Direct costs (tuition & fees, campus housing

• Indirect costs (books & supplies, room & board, personal expenses, transportation)

• Direct and indirect costs are combined into cost of attendance

• Varies widely from college to college

Comparing various CollegeComparing various College and University COAs and University COAs

LPC (2015-16)

CSUEB(2014-15)

UCB(2014-15)

Stanford(2014-15)

Tuition

& fees only

$1119 $6549 $13,300 *$44,184

Ttl COA

At home

$11,956 $15,300 $24,592 N/a

Ttl COA

Off campus

$19,039 $22,968 $29,200 *$62,801

*Families making less than $100,000 per year are guaranteed free tuition. Families making less than $60,000 a year are not expected to pay tuition or contribute to the costs of room, board, and other expenses.

Term: ‘Net price calculator’Term: ‘Net price calculator’

• Congress passed a law requiring all colleges to offer a “net price calculator” on their websites– Allows prospective students to figure out

how much it will cost them to go to college– Compare net price of one school to

another school

Term: ‘Financial Need’Term: ‘Financial Need’

Cost of Attendance

– Expected Family Contribution

= Financial Need

Colleges determine and offer financial aid based on this

equation. Some types of aid require financial need and some

types do not.

Categories of Financial AidCategories of Financial Aid

• Need-based

• Non-need-based

Types of Financial Aid Types of Financial Aid Free Financial Aid■ Grants are free money you don’t have to repay, typically

based on financial need.

■ Fee Waivers are free money, waive enrollment fees at community colleges, based on financial need.

■ Scholarships are free money, usually based on basis of merit, skill or unique characteristics.

Self-Help Aid

■ Federal Work-study programs—work for pay

■ Loans are borrowed money that you must pay back, usually with interest – ‘self-help’.

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Sources of Financial AidSources of Financial Aid

• Federal government

• State government

• Colleges and universities

• Private sources: civic organizations, businesses, foundations, employers, etc

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Free Money: Federal Pell Grants

Federal Pell Grant Largest source of financial aid

Aid awarded primarily on the basis of financial need and

Expected Family Contribution (EFC)Students with EFC from 0 – 5198 qualify for a Pell

Grant for 2015-16. Enrollment status (less money if less than fulltime)

Pell maximum = $5775/year for 2015-16

You will receive the same amount of a pell grant at any college you attend; you don’t get more at a more expensive college.

Must apply each year using the FAFSA

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Free Money: Other Federal Grants

G

There are other federal grants for

low income students. Your college will determine which grants you qualify for.

The FAFSA is the only application

needed to apply for all types of federal aid.

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Free Money: State Cal Grants

• For 2-yr, 4-yr, public, private, and vocational colleges in CA

• Pays FULL TUITION at a CSU (up to $5472/yr) or UC (up to $12,192/yr), @ up to $9084/year for private institution.

• Renewable up to 4 years. On reserve while student attends a community college.

• Cal B recipients receive a $1648 annual grant in addition to full tuition for 4 years

Free Money: State Cal Grant Free Money: State Cal Grant Entitlement ProgramEntitlement Program

• Cal Grant A Entitlement Awards – for high school seniors and recent high school grads with a Grade Point Average (GPA) of at least 3.0

• Cal Grant B Entitlement Awards – for high school seniors and recent high school grads with a GPA of at least 2.0, who come from disadvantaged or low income families

• Cal Grant C Awards - for students from low income families pursuing vocational programs of study

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Eligibility for Cal GrantsEligibility for Cal Grants• To be eligible for a Cal Grant, the

student must also:

• be a U.S. citizen,eligible

noncitizen, or eligible under

CA Dream Act (later slide)

• be a California resident

• attend an accredited California college or university at least half-time

• Meet income and asset ceiling criteria

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California Dream ActCalifornia Dream Act• California regulations allow undocumented students

who attended a CA high school for 3 years or more and earned a diploma or equivalent, to now qualify for an Entitlement Cal Grant. They may also legally qualify for scholarships, Community College Registration Fee waivers, college/university grants and other assistance programs in California.

• To apply, file a CA. DREAM APPLICATION instead of a FAFSA at www.csac.ca.gov

• Contact your college admissions office to submit an AB540 application, needed to receive aid through the Ca. Dream Act

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2015-2016 Cal Grant2015-2016 Cal Grant

Application RequirementsApplication Requirements

Check with your high school or college counselor for more details on how to file the Cal Grant GPA Verification Form, required of all students

• By March 2, 2015, complete and submit:Free

Application for Federal

Student Aid (FAFSA)

ORCal Grant

GPA Verification

Form

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If undocumented and eligible under AB540, students should complete theCalifornia Dream Act Application: www.caldreamact.org

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By opening a WebGrants Account a student can: Check Cal Grant award status 24/7Confirm student’s high school graduation as

required once they have actually graduatedMake changes to Cal Grant school choicesView how much a Cal Grant is worth at

different California colleges and universities

Create a WebGrants account at: www.webgrants4students.org

Check Your Cal Grant StatusCheck Your Cal Grant Status

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• Starting Fall 2015-16, the Middle Class Scholarship (MCS) will be phased in to assist new and continuing UC and CSU undergraduate students with family incomes up to $150,000

• To apply, students should submit by March 2, 2015:

– 2015-16 FAFSA

– For AB540 students, the 2015-16 California Dream Act Application

– Note: no GPA is required• MCS awards vary based on the number of eligible students, the institution, and

state funding allocated. In 2015-16, maximum awards will range up to $1,706 • Amounts are determined after Federal Pell Grants, Cal Grants and institutional

grants are awarded. Students cannot receive both grant aid and the MCS• Qualifying students will be notified by the California Student Aid Commission• In 2017-18, when fully funded, the maximum awards will be no more that 40

percent of UC and CSU system-wide tuition and fees

Middle Class Scholarship (MCS)Middle Class Scholarship (MCS)

California Chafee GrantCalifornia Chafee Grant• The California Chafee Grant program provides up to

$5,000 annually to current and former foster youth for college or vocational training at any accredited college in the U.S., based on available funding

• To be eligible, foster youth must have been in California foster care on their 16th birthday and not have reached their 22nd birthday before July 1, 2015

• Foster youth are encouraged to apply during their senior year of high school

• AB540 students may also be eligible To apply for a Chafee Grant, go to:

www.chafee.csac.ca.gov

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Free Money: Community Free Money: Community College Board of Governors’ College Board of Governors’ Fee Waiver ProgramFee Waiver Program

– Waives enrollment fees at all community colleges for CA residents

– File a FAFSA to qualify. Waiver is automatically awarded.

All CA resident students who have $1104 or more of financial need receive an automatic fee waiver

Example: Las Positas College COA = $11,460

- EFC = - 8100

NEED = $ 3360

Student qualifies for fee waiver because need >1104

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Free Money: College/Institutional Grants

Be mindful of priority filing deadlines or you may miss out on $$thousands! Each college has their own deadline by which you must submit your FAFSA. DON’T MISS IT! Check with each college or university you are considering attending.

CSU State University Grant (SUG)www.calstate.edu or csumentor.edu

UC Grantwww.universityofcalifornia.edu

Independent College Grantswww.aiccu.edu or www.aiccumentor.org

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Free Money: ScholarshipsFree Money: Scholarships

Scholarships are awards provided by the private and public sector-institutions/colleges-organizations-corporations-clubs-foundations-individuals

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Free Money: ScholarshipsFree Money: Scholarships• Provider decides on

– Awarding criteria– Application deadline– Forms or applications

• Awards may be

– Merit-based or not– Need-based or NOT Need-based– Based on any other criteria

determined by donor– Begin researching private aid sources

early and continue all through college

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Free Money: ScholarshipsFree Money: ScholarshipsWHERE TO FIND THEM:• Start with your High School Career Center

• Local section of Newspaper

• Organizations your family is connected to, including parent’s workplace, church, unions, clubs, etc.

• Check your intended colleges’ financial aid/scholarship website for opportunities

• Free online searches

• Pedrozzi Foundation Scholarships for students who graduate from any high school in Livermore -Deadline March 1. www.pedrozzifoundation.org

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Private FREE Scholarship SearchesPrivate FREE Scholarship Searches

• FinAid on the Web: www.finaid.org• College Board: www.collegeboard.com• FastWeb: www.fastweb.com• Scholarship Resource Network

Express: www.srnexpress.com• GoCollege: The Collegiate Websource:

www.gocollege.com• Wired Scholar: www.wiredscholar.com

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Self-help aid: Federal Work-Study

Federal financial aid program, but funds are limited

Money must be earned through work

Must have financial need

Job may be on or off campus

Each college has its own award policy and procedures for getting a job.

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Self-help aid:Federal Direct Student Loans

Loan is only in the student’s name, no co-signer.

Must be enrolled in at least 6 units.

Two types:

Federal Subsidized Direct Loan For students with unmet financial need Government pays interest while in school

Federal Unsubsidized Direct Loan For all students; no financial need required Student responsible for cost of interest while in

school

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Federal Direct Student Loans

Annual and aggregate loan limits apply

Must be enrolled at least halftime

6-month grace period after graduation before repayment begins

10 – 30 year repayment period

Interest currently 4.66% for both types of loans

Repayment is deferred while in college at least halftime

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Self-help aid: Federal Parent Loans for Undergraduate Students (PLUS)

■Parents of dependent undergraduates can borrow up to the total cost of their child’s undergraduate study, less any other aid the student may receive•based on credit record•May borrow up to full cost of attendance less aid•Interest fixed at 7.21%, origination fee is 4.292%•10 year repayment period•Parents can defer payment until student graduates college.•http://studentaid.ed.gov/types/loans/plus

Self-help aid: Private loansSelf-help aid: Private loans

■ May or may not carry higher interest rates and fees than federal loans

■ Typically the interest rates are variable■ Based on your credit rating and debt-to-income

ratio ■ May require a co-signer■ Best to use federal student loan programs

first; if you still need additional financing then turn to private loans.

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Comparing your college choices using Comparing your college choices using financial aid offersfinancial aid offers• Your bottom line for choosing colleges isn’t the cost of

attendance, but rather the net actual cost to you and your family.

• Once you subtract the free aid (grants and scholarships) from your cost of attendance, determine how much of the bill you will need to finance through loans and workstudy or your own funds. This is what you need to understand when determining affordability in making a college choice.

• Be aware if institutional grants or scholarships offered are multi-year or not; you may get a good package the first year but can you rely on the same for the remainder of the years?

Applying for Financial AidApplying for Financial AidFAFSA on the WebFAFSA on the Web

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www.fafsa.ed.gov

DO NOT use the website www.fafsa.com or you will pay money to file the FREE Application for Federal Student Aid!

The 2015-2016 FAFSA on the Web may be used for the January 1, 2015 through June 30, 2016 federal student aid application cycle

FAFSA Information & TipsFAFSA Information & Tips

• File early, but no later than March 2, 2015

• Use estimated 2014 income information if taxes are not complete at time of FAFSA submission. Correct the info later

• Student and at least one parent whose information is reported must complete and sign the FAFSA

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Federal Personal Identification Federal Personal Identification Number (PIN) Number (PIN)

• PIN (Personal Identification Number) serves as the electronic signature

• Both student and one parent need PINs to sign the FAFSA electronically

• May be used to:• Check on FAFSA status• Verify and correct FAFSA data• Add additional schools to receive

FAFSA data• Change home and e-mail addresses• Access fafsa to apply in subsequent

years

• If an e-mail address is provided, PIN will be e-mailed to the PIN applicant within minutes

Apply for student and parent PINs at:

www.pin.ed.gov

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TIPS FOR COMPLETING THE FAFSA

SAVE YOUR DATA FREQUENTLY!

As you complete the online Fafsa, SAVE your information frequently! You choose your own password and can save it for an indefinite period of time.

SUBMIT the fafsa only when it is complete and signed with your pin number.

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TIPS FOR COMPLETING THE FAFSA

Common questions that tend to cause confusion or errors

Section 1Section 1

STUDENT DEMOGRAPHICSSTUDENT DEMOGRAPHICS

Section 1 - Student Social Security NumberSection 1 - Student Social Security Number

• Be sure that both the student and parent personal identifying information is accurate and exactly matches with the complete name and ssn on the social security card or it will be rejected!

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Section 1 Section 1 Undocumented StudentsUndocumented Students

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For more information and a list of scholarships, go to:www.e4fc.org/resources/scholarshiplists.html

www.maldef.org/assets/pdf/2012-2014_MALDEF_Scholarship_List.pdfwww.caldreamact.org

If the student is undocumented

Section 1 - Selective Service RegistrationSection 1 - Selective Service Registration

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• All male students who are between the ages of 18 and 25 years must be registered with Selective Service to receive federal and/or state aid

• Answer “Register me” only if you are male, aged 18-25, and have not yet registered.

• The student may also register by going to:

www.sss.gov

Section 2Section 2

SCHOOL SELECTIONSCHOOL SELECTION

Section 2 - School SelectionSection 2 - School Selection

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• List a California college or university first (for Cal Grant consideration)

• If the student is applying to more than ten schools, wait for the processed Student Aid Report (SAR) and add additional schools via the Web or by phone using the student PIN

Strategies for Listing Colleges

NOTE: Each UC and CSU campus must be listed separately

Section 3Section 3

STUDENT DEPENDENCY STUDENT DEPENDENCY STATUSSTATUS

Section 3Section 3Determination of Student Dependency Determination of Student Dependency StatusStatus

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Section 3 - Determination of Student Dependency Status Section 3 - Determination of Student Dependency Status (con’t)(con’t)

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Section 3 - Determination of Student Dependency Status Section 3 - Determination of Student Dependency Status (con’t)(con’t)

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If the student checks “No” in all of the boxes about Dependency Status, the student will be asked to go to Section 4. For FAFSA filing purposes, the student is considered a dependent student and will be required to provide parental information

If any one of the items in this section applies to the student, he/she should mark the appropriate box, skip Section 4, and go to Section 5. The student is considered an independent student for FAFSA filing purposes and is NOT required to provide parental information

Section 3 - Determination of Section 3 - Determination of Student Dependency Status Student Dependency Status

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Is there any other way to be Is there any other way to be independent?independent?

• Dependency status may be changed in very specific extenuating circumstances (abusive situation, abandonment, etc). Student may file a Dependency Override Petition at the college of attendance. Third party documentation required (social worker, police report, counselor, clergy, etc).

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What if I refuse to provide parental What if I refuse to provide parental information?information?

The student may complete a FAFSA, but the only thing they would possibly be eligible for without parent information is an unsubsidized student loan.

Section 4Section 4

PARENT PARENT DEMOGRAPHICSDEMOGRAPHICS

Section 4Section 4Parent DemographicsParent Demographics

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Who is considered a parent ?Biological or adoptive parent(s)

Including same-sex and unmarried parents living together

In case of divorce or separation, provide information about the parent and/or stepparent the student lived with more in the last 12 months.

Stepparent (regardless of any prenuptial agreements)

Who’s My FAFSA Parent? Who’s My FAFSA Parent? Quiz (Quiz (www.collegeup.orgwww.collegeup.org))

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This quiz will help you understand whose information should be provided on the fafsa if you aren’t clear. There are big changes this year, which include:

When dependent students file the FAFSA, both legal parents must provide income and asset information, regardless of their marital status or gender, if those parents are living together. In previous years, only one of the unmarried parents was asked to provide financial information.

Due to the U.S. Supreme Court decision striking down the Defense of Marriage Act, same-sex couples must now report their marital status as married, if they were legally married in a state or foreign country that permits same-sex unions.

Section 4Section 4Who is Not a Parent ?Who is Not a Parent ?

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Section 4Section 4Parent Marital StatusParent Marital Status

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• Report your parents’ marital status as of today – Never Married– Unmarried and both parents living together– Married or Remarried (also report the date of marriage or

remarriage) – Divorced or separated (also report the date of divorce or separation)– Widowed (also report the date of widowhood)

Section 4Section 4Parent InformationParent Information

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• If the student is providing Parent Information, he/she will need those parents’:

– Social Security Numbers– Last names and first initials– Dates of Birth

Section 4 - Parent Household SizeSection 4 - Parent Household Size

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Include in the parents’ household: the student parent(s) parents’ other dependent children, if

the parents provide more than half their support or the children could answer “no” to every question in Section 3, regardless of where they live

other people, if they now live with the parents and will continue to do so from 7/1/14 through 6/30/15, and if the parents provide more than half their support now, and will continue to provide support from 7/1/14 through 6/30/15

Section 4 - College Students in the Parent Section 4 - College Students in the Parent HouseholdHousehold

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NOTE: Some financial aid offices will require documentation that other family members are attending college

• Always include the student even if he/she will attend college less than half-time in 2015-2016

• Include other household members only if they will attend at least half-time in 2015-2016 in a program that leads to a college degree or certificate

• Never include the parents in the number in college

Section 5Section 5

PARENT FINANCIAL PARENT FINANCIAL INFORMATIONINFORMATION

Section 5 - Parents’ 2014 Tax Return Filing Completion Section 5 - Parents’ 2014 Tax Return Filing Completion StatusStatus

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Students will be asked to provide information about their parent tax filing status for 2014: If parents have completed a 2014 federal income tax return, select

“Already completed” If parents have not as yet filed, but plan to file a 2014 federal income

tax return, select “Will file” If parents have not, nor will not, file a 2014 federal income tax return

and are not required to do so, select “Not going to file”

20142014

Section 5Section 5IRS Data RetrievalIRS Data Retrieval

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This question asks if parents have completed their 2014 IRS income tax return

If parent(s) answer “Already completed,” they will be given the option to transfer their 2014 income tax information directly from IRS records to the FOTW

If parents indicate that they have recently filed their 2014 taxes, they may not be able to access their IRS data if they have filed taxes electronically within the last three weeks or by mail within the last eight weeks

Instead, they should use their actual 2014 IRS tax return to complete the FOTW so the student does not miss any important financial aid deadlines

Section 5Section 5IRS Data Retrieval (con’t)IRS Data Retrieval (con’t)

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Section 5Section 5IRS Data Retrieval (con’t)IRS Data Retrieval (con’t)

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IRS Data Retrieval IRS Data Retrieval ToolTool

• Some will be unable to use IRS DRT

• Examples include:

– Filed an amended tax return

– No SSN was entered

– Student or parent married but filed separately

Section 5 Section 5 2014 Adjusted Gross Income2014 Adjusted Gross Income

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• If the student’s parents have not yet filed their 2014 federal tax return, use estimated 2014 information for this question

• The “Income Estimator” on the FOTW may help calculate this amount

• If the student’s parents have completed their 2014 federal tax return, use actual 2014 tax return information to complete this item if they are not eligible to use the IRS Data Retrieval process

Section 5 - Parents’ 2014 U.S. Income TaxesSection 5 - Parents’ 2014 U.S. Income Taxes

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• Enter the amount of parents’ income tax for 2014

• Use U.S. income tax paid (or to be paid), not the amount withheld from parents’ paychecks

Section 5Section 5

Parent Asset Information Parent Asset Information

• Some parents may be asked to report the current balances of their cash, savings, and checking accounts as of the day they complete the FAFSA

• They may also be asked to provide information about the net value of their investments such as real estate, rental property, money market and mutual funds, stocks, bonds and other securities

• In addition, they may be asked questions about the net value of their businesses and investment farms

• They should not include the home in which they live, the value of life insurance and retirement plans, or the value of a family-owned and controlled small business

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Section 5Section 5Parent Asset InformationParent Asset Information

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NOTE: Some financial aid offices may request supporting documentation for the answers to these questions

Parents may be asked to report their assets as of the day they complete the FOTW if amounts exceed those shown on the FOTW. If so:

Parent(s) must list the net value of their assets as of the day they complete the FOTW

If net worth is zero, enter 0 0

Section 5Section 5

STUDENT INFORMATIONSTUDENT INFORMATION

Section 6Section 6

SIGN AND SUBMITSIGN AND SUBMIT

Section 6 Section 6 Student Signature PageStudent Signature Page

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Sign and Submit Recommend that students

sign the FAFSA electronically using their PINs

Remember to read and mark “Agree” to the student Terms of Agreement

Section 6 Section 6 Parent Signature PageParent Signature Page

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Sign and Submit Recommend that one

custodial parent signs the FAFSA electronically using his/her PIN

Remember to read and mark “Agree” to the Terms of Agreement

Parent(s) without Social Security Numbers

Click on “Other options to sign and submit” for Paper Signature Page

Section 7 Section 7 Confirmation Confirmation

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Confirmation Page Confirms date and time of

submission of the FOTW to the U.S. Department of Education

Shows Expected Family

Contribution (EFC) Estimated Federal Pell

Grant and Federal Stafford Loan eligibility

List of schools to receive FAFSA data

Section 7 Section 7 Confirmation Confirmation

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Confirmation Page Also provides parent(s) with

other children planning to attend college in 2015-16 the opportunity to transfer parental information to other children’s FOTWs.

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After the student completes the FAFSA on the Web, a SAR will be sent to the student An electronic SAR Acknowledgment

will be sent if student provides an email address

A paper SAR will be mailed if no student

e-mail address is provided An electronic copy of the data will be sent

to each college or university listed by the student in Section 2

Keep a copy of the SAR with other financial aid documents

Student Aid Report (SAR)Student Aid Report (SAR)

Special CircumstancesSpecial Circumstances

After filing the fafsa correctly, contact the Financial Aid Office if there are circumstances which affect a family’s ability to pay for college such as:

– Loss or reduction in parent or student income or assets since the tax year reported on the FAFSA

– Death or serious illness in the family affecting income – Natural disasters affecting parent income or assets such as

the recent California wind storms,wild fires, floods, mudslides– Unusual medical or dental expenses not covered by

insurance– One time Early IRA withdrawal due to loss of job which

inflated income on the tax return – Reduction in child support, Social Security benefits or other

untaxed benefit for parents or student– Financial responsibility for elderly grandparents, or

– Any other unusual circumstances that affect a family’s ability to contribute to higher education

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What Happens Next? What Happens Next?

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Students and the colleges the student listed receive Student Aid Report (SAR) from federal processor

Students who complete FAFSA and Cal Grant GPA Verification Form

receive California Aid Report (CAR)

Students and families review SAR and CAR for important

information and accuracy of data

Colleges match admission records with FAFSA and other

required financial aid forms to determine aid eligibility

Colleges provide notices of financial aid eligibility to admitted students who have applied for financial aid

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Some students may be required to verify the information reported on the FAFSA

If selected for verification, the tax information of federal tax filers will be verified through The IRS Date Retrieval Process, or IRS Tax transcripts if requested by the college or university

Non-tax filers selected for verification may be asked to provide Signed statements confirming that they did not file a 2014 federal tax

return and were not required by IRS to do so Copies of W-2s or other income documentation from each employer , if

any income was earned from work All selected aid applicants will also be asked to verify certain

demographic data listed such as Household size and number in college Child Support paid and SNAP, if reported on the FAFSA Enrollment History for transfer students Identity Confirmation

Federal VerificationFederal Verification

IRS Transcripts available at: http://www.irs.gov/Individuals/Order-a-Transcript

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• Submit all required forms, including the FAFSA, by each

college’s published deadlines (but no later than March 2)

• By March 2, submit a Cal Grant GPA Verification Form

• Keep a copy of all forms submitted

• Review the electronic Student Aid Report (SAR)

Acknowledgement or the paper SAR sent to the student

• Review the California Aid Report (CAR)

• Watch for financial aid award notifications from colleges to

which the student has been admitted

• Be sure to apply for financial aid this year and every year

as soon as possible after January 1 to receive the best

financial aid award possible

ASK QUESTIONS!

Summary of the Financial Aid Summary of the Financial Aid ProcessProcess

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• FAFSA on the Web – Live Help

• Phone 1-800-4-FED-AID (1-800-433-3243)

• E-mail the U.S. Department of Education at: FederalStudentAidCustomerService@ed.gov

If You Need Help at Any TimeIf You Need Help at Any Time

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Top Strategies to minimize Top Strategies to minimize Expected Family ContributionExpected Family ContributionSave money in the parent's name, not the child's

name. Or use a savings vehicle that is treated like a parent asset, such as a 529 college savings plan, prepaid tuition plan or Coverdell Education Savings Account. A section 529 college savings plan has minimal impact on financial aid; one owned by a grandparent has no impact on financial aid.

• Pay off consumer debt, such as credit card and auto loan balances with excess cash in your checking or savings, or accelerate necessary expenses such as if you need a new car or computer, buy it before you file the FAFSA.

• If your family's financial circumstances have changed significantly in 2015 compared to 2014, request and file a Special Circumstances petition at the college you will attend after filing your FAFSA.

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Top Strategies to minimize Top Strategies to minimize Expected Family ContributionExpected Family Contribution

• Maximize contributions to your retirement fund to reduce your AGI.

• Do not withdraw money from your retirement fund to pay for school, as distributions count as taxable income, reducing next year's financial aid eligibility. If you must use money from your retirement funds, borrow the money from the retirement fund instead of getting a distribution.

• Choose the date to submit the FAFSA carefully, as assets and marital status are specified as of the application date.

• Spend down the student's assets and income first

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Questions and Questions and AnswersAnswers

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Thank you for attending