Financial Aid Basics: Application, Eligibility, and Resources
Dive into the essentials of financial aid, covering topics such as applying for aid, determining eligibility, cost of education, outside resources, and more. Get insights into FAFSA, need-based aid, merit-based aid, and the Expected Family Contribution to navigate the financial aid process effectively.
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Presentation Transcript
Financial Aid Basics Financial Aid Basics for Students and for Students and Families Families Anna L. Stovall Associate Director of Financial Aid Davidson College
What will we cover? What will we cover? Applying for Aid Cost of Education Need-Based Aid Merit-Based Aid Packaging/Awarding Anticipated Changes Consumer Tips
How do students apply for How do students apply for financial aid? financial aid? FAFSA Free Application for Federal Student Aid www.Studentaid.gov October 1 Go-live date CSS Profile CollegeBoard.org Required by SOME colleges At College s Discretion Tax returns and W-2 forms CSS PROFILE from Noncustodial parent
How is need How is need- -based aid eligibility determined? eligibility determined? Cost of education - Expected Financial Assistance (from outside resources) - Expected Family Contribution = Student s financial need based aid
What is Included in What is Included in the Cost of Education? the Cost of Education? Direct Tuition and fees Room and board Books and supplies Transportation Miscellaneous personal expenses Indirect
What are outside resources? What are outside resources? Funds from sources other than the college/university Clubs and civic organizations Churches Employers Foundations
What about outside What about outside resources? resources? They CAN replace self-help (loan and work) components of aid award They CANfill in difference when schools Gap award They CAN add to a merit-only award They MIGHT reduce the family contribution Total of financial aid and outside resources can t exceed total Cost of Education
What is the Expected Family What is the Expected Family Contribution? Contribution? A figure derived from the financial data provided on the FAFSA and/or PROFILE Represents the calculated ability of the family to contribute toward the cost of education Takes into account factors such as income, assets and household size Annually determined, so can change from year to year as factors change
What are the components What are the components of the of the Expected Family Contribution? Expected Family Contribution? Expected Family Expected Family Contribution Contribution
What About 529 and Other What About 529 and Other College Savings Plans? College Savings Plans? Plans are assets of the plan owner(s). FAFSA: When the owneris a dependent student they are reported as an asset of the parent. PROFILE instruction: If the student has a 529 plan as part of an UGMA or UTMA account, it is a student asset. When the owneris some other person distributions from these plans to the student count as untaxed income, as money received.
How is Family Contribution How is Family Contribution Calculated? Calculated? Parent Contribution Per Student Family Contribution (EFC) Student Contribution + =
What about Merit What about Merit- -based Scholarships? Scholarships? Funds awarded on the basis of factors other than financial need Academic factors Talent factors Service factors (Fill in the blank) factors based Procedures for being considered vary Nomination process Scholarship application Admission application
What about Merit What about Merit- -based Scholarships? Scholarships? Do ALL colleges offer merit-based scholarships? Position in higher education marketplace Selectivity level Allocation of resources Philosophy based Powerful scholarship candidates often present a well-crafted application demonstrate genuine interest in the college are genuine and authentic in presentation of self continue to challenge themselves through the finish line
What about What about Athletic Scholarships? Athletic Scholarships? Awarded by athletics department, not admission/financial aid office Both partial and full athletic scholarships can be offered Some schools offer athletics, but not athletic scholarships (D-III)
Questions To Ask About Merit Questions To Ask About Merit and Athletic Scholarships and Athletic Scholarships Is the scholarship renewable? If so, what are the requirements for renewal? Will it affect my need-based aid eligibility?
What are the typical What are the typical components of a financial components of a financial aid award/package? aid award/package? Gift Aid Grants (Institutional, Federal, and State) Merit-Based or Athletic Scholarships Funds not requiring work or repayment Self Help Student Employment Student Loans (at some schools)
How is need met? How is need met? Sample Aid Packages Sample Aid Packages Davidson $75,400 $20,000 $55,400 Public U. $35,000 $20,000 $15,000 Private U. $57,000 $20,000 $37,000 Cost EFC Need Merit Grant Loan Work Study $0 $0 $20,000 $4,500 $5,500 $2,000 $52,900 $7,500 $5,500 $2,000 $0 $2,500 Total Aid Unmet Need $55,400 $15,000 $32,000 $5,000 $0 $0 $20,000+loan +interest $25,000+loan +interest Total Paid $20,000
How is need met? How is need met? Sample Aid Packages Sample Aid Packages Davidson $75,400 $20,000 $55,400 Public U. $35,000 $20,000 $15,000 Private U. $57,000 $20,000 $37,000 Cost EFC Need Merit Grant Loan Work Study $0 $0 $20,000 $4,500 $5,500 $2,000 $52,900 $7,500 $5,500 $2,000 $0 $2,500 Total Aid Unmet Need $55,400 $15,000 $32,000 $5,000 $0 $0 $20,000+loan +interest $25,000+loan +interest Total Paid $20,000
How is need met? How is need met? Sample Aid Packages Sample Aid Packages Davidson $75,400 $20,000 $55,400 Public U. $35,000 $20,000 $15,000 Private U. $57,000 $20,000 $37,000 Cost EFC Need Merit Grant Loan Work Study $0 $0 $20,000 $4,500 $5,500 $2,000 $52,900 $7,500 $5,500 $2,000 $0 $2,500 Total Aid Unmet Need $55,400 $15,000 $32,000 $5,000 $0 $0 $20,000+loan +interest $25,000+loan +interest Total Paid $20,000
What are some payment What are some payment options? options? Monthly payment plans Federal Educational Loans Student (Direct Stafford) Parents (Direct PLUS) Private Educational Loans
What if my financial What if my financial circumstances change? circumstances change? Institutions may choose to apply professional judgement decisions at different times throughout year or wait until next annual filing May affect family contribution Communicate changes and have documentation prepared
Anticipated FAFSA Anticipated FAFSA Simplification Changes Simplification Changes To take effect 2023-24: Selective Service registration and drug conviction-related questions removed Addition of a demographic survey To take effect 2024-25: Reduced number of questions from 100+ to ~40 Student Aid Index to replace Expected Family Contribution Reporting Parent determined by level of financial support Income data transferred from IRS to ED
Continued Continued - - Anticipated FAFSA Anticipated FAFSA Simplification Changes Simplification Changes To take effect 2024-25: New Pell eligibility criteria introduced to expand eligibility Number of children in college no longer considered Untaxed retirement contributions no longer considered Child support received to be treated as an asset, not income No required asset reporting if income is less than $60,000 Business/Farm value must be reported Increased Income Protection Allowance
Do you have any Do you have any consumer tips? consumer tips? Consult your College Counselor Avoid scholarship programs and search services that charge fees Net Price Calculators Negotiation? Price matching?
Additional Questions? Additional Questions? Thank you for coming! Anna L. Stovall Associate Director Davidson College Admission and Financial Aid
