Presentation on college financial aid opportunities from Foothill counselors

1. Taming the Financial Aid
Monster!!
 AVID College Financial Aid Night
 Foothill Technology High School
 Tuesday, January 15th, 2013

2. Presented by:
 Mrs. Heather Ferris and FTHS AVID
 English Presentation:
 Mrs. Linda Kapala: Scholarships
 Ms. Cecilia Johnston: Financial Aid
 Spanish Presentation:
 Ms. Alma Rodriguez, Ventura College

3. Conquering Your Fears!
 For Students, the
scariest part of
College Admissions
is getting into the
college of their
choice.
 For their Parents,
the scariest part is
paying for it!!!

4. Knowledge is Power!
 “Fund Your Future” Workbook (Updated copies will be available
at the Counselors’ offices & Media Center.)
 CSS: Profile Handout
 “Blue Sheet” Handout (Correction: www.finaid.org)
 Ventura College Workshops (TBA)
 “Help” function on Financial Aid Form websites
 Will give you the confidence to apply for
financial aid !

5. What is Financial Aid ?
Free Money:
 Scholarships
 Grants
Self Help:
 Loans
 Employment:
Federal Work study

6. NUMBER ONE Rule of Financial Aid
 Students AND their families have
the primary responsibility to pay
for postsecondary education
expenses.
 Doesn’t matter if parents choose not
to contribute to student’s education.
 Therefore, it is very unusual for a
student who has just graduated from
high school to be “independent” for
purposes of Financial Aid.

7. The “MAGIC FORMULA”
COA-EFC=FN

8. More Magic Formula
 COA (Cost of Attendance)
 Minus EFC (Expected Family
Contribution)
 Equals FN (Demonstrated Financial
Need)
 Note: EFC usually stays the same no
matter how much the COA.
 See Page 9 of Booklet.

9. How do I file for Financial Aid?
 Complete and file FAFSA
 FAFSA = “Free Application for Federal
Student Aid”
 Make sure that your gpa has been
submitted for Cal Grant consideration.
 Submit CSS:Profile and/or other
supplemental information if
required by college to which you
are applying.
 Usually private schools.

10. NUMBER TWO Rule re:
Financial Aid
 Always, always, always apply for
financial aid.
 Doesn’t matter if you think that you
won’t qualify.
 Will need to file to qualify for non-
need based federal loans.
 Many schools will NOT consider you
for merit or other scholarships unless
you apply for federal financial aid.

11. FAFSA Timeline
 Complete & Submit FAFSA as
soon as humanly possible.
 Use estimated 2012 income
figures, then amend after filing
tax return.
 About 100 questions—max.
 Will receive SAR (Student Aid
Report) via email within 3-5
days!
 Can always amend FAFSA;
will result in amended SAR.

12. Seven Steps to filling out FAFSA
 “Fund Your Future” pages 6-9
 Step One: Gather information and go
to www.fafsa.ed.gov
 Both Student and one Parent apply for a
PIN.
 Save PINs for next year!
 Be careful to use “ed.gov” website.
 FAFSA is always free!

13. Step Two: Information About the
Student
 Student Demographics
 Name must match Social
Security card.
 Use the Help & Hints section on
each page.

14. Step Three:
 School Selection:
 Add by Federal School Code
 If applying to over ten schools:
 List at least one California school on first list. (for Cal
Grants)
 Then list schools with earliest financial aid deadlines
first.
 After you submit FAFSA and receive your Student Aid
Report, wait a few days, then go back and delete
schools and add the remaining schools on your list.
 All schools will have access to FAFSA.
 See “Blue Sheet”

15. Step Four: Dependency Status
 In most cases, your student will be a
dependent.
 The exceptions are on Page 7.

16. Step Five: Parent Information
 Required if student is dependent.
 Parents must answer both
demographic and financial
information to determine
 Custodial Parent for FAFSA
purposes.
 Ability to contribute to student’s
educational expenses.

17. Divorced or Separated Parents
 Provide information for parent who
student has spent at least 51% of time
with in past 12 months.
 Remarried Parent? Provide info about
parent AND step-parent regardless of:
 Agreement of non-support
 Prenuptial Agreement
 Divorce Decree

18. Divorced or Separated (Part 2)
 Parent filling out FAFSA need not be
the custodial parent per divorce
decree.
 Parent filling out FAFSA need not be
the parent who claims the student as
an exemption for income tax
purposes.

19. Parent Income & Assets:
 You will see a list of types of Assets
on FAFSA—click the box next to the
asset and you will be asked
questions about those assets.
 FAFSA looks at Adjusted Gross
Income.
 Page 7: List of assets that FAFSA
does not consider including:
 Your family home
 Your Retirement Accounts
 Your small business (less than 100
employees)

20. Step Six: Student’s Assets
 Same list of Assets to click on.
 Tip: Most of student’s assets are expected to be
used for education expenses. What may make
sense for tax savings may not make sense for
financial aid. Ask your accountant or financial
advisor for assistance.

21. Rule Number Three of Financial Aid
 Do not do anything that could get
you in trouble with the IRS!
 In general, you want to look as poor
as possible for FAFSA purposes.
 Again, do not do anything that could
get you in trouble with the IRS!!
 If you have questions, talk to your
accountant or financial advisor.

22. A few helpful hints:
 Fill out FAFSA the day after you have
paid your mortgage and big bills.
 Value of assets is NET, not gross.
 Asset protection allowances are built
into the formula.
 Questions: Call the 800 number on
page 8.

23. Step Seven: Submission
 Student and Parent(s)
electronically Sign and Submit.
 You will receive an electronic
Confirmation Page with:
 Confirmation Number
 Estimated EFC
 List of Colleges
 Next Steps
 Option of transferring parents’
data to sibling’s FAFSA!

24. Student Aid Report Notification
 Arrives electronically in 2-5
days.
 Has EFC and Pell Grant eligibility.
 If you don’t like the results or
have special circumstances or
expenses:
 Contact individual colleges which
can exercise “Professional Judgment
Override.”
 Your EFC when you receive your
Financial Aid packages (by April 1)
may be different.

25. The Dreaded “GAP”
 Not every school meets
 100% of your Financial Need.

26. The Dreaded “GAP”
 Not every school meets
 100% of your Financial Need.
 Example:
COA: $25,000 Minus EFC: $10,000 = FN:
$15,000
But College only meets 66% of FN $10,000 leaving
a gap of $5,000.

27. The Dreaded “GAP”
 Not every school meets
 100% of your Financial Need.
 Example:
COA: $25,000 Minus EFC: $10,000 = FN: $15,000
But College only meets 66% of FN $10,000 leaving a gap of
$5,000.
You must make up the difference; you will be responsible for
the EFC of $10,000 plus GAP of $5,000 = $15,000.

28. A Few Financial Aid Tools:
 Net Cost Calculators:
 Every school is required to have
one on their website.
 CNN College Cost Calculator
 School Data:
 www.collegedata.com
 www.collegenavigator.gov
 Info: www.finaid.org
 See “BLUE SHEET” for these links.

29. Cute Puppy Break!

30. CSS Profile and other Financial
Supplements
 Some Private Schools use
FAFSA and CSS Profile and/or
their own supplemental
Financial Aid Forms.
 CSS Profile on line. Costs $
(Waivers available.)
 Looks more deeply into
family finances.
 Fill out one form for all
colleges: different questions
for different colleges

31. CSS-Profile Differences
 Many schools require
that Non-Custodial Parent
fills out Supplement.
 Considers Family Home
as an asset.
 For valuation: subtract mortgage from value
as determined by Federal House Price Index
Calculator.
 Don’t forget to subtract mortgages, down
payment loans from value.

32. More Differences:
 Value of Businesses: NET Worth
 Most Service Businesses have a very low net worth
for Financial Aid Purposes.
 Assets held in sibling’s names are counted
 Retirement funds counted
 Not a free form. Use College Board id and
password to access. (Save this info. for next year!)
 Space to explain Unusual Circumstances: ie. large
medical expenses etc.

33. Even More Differences!
 Contribution from Student’s
Parents:
 One expert recommends that you wait
until you get SAR, take the EFC and
reduce it by 30%.
 Estimate Prior Year and Future
Income.
 CANNOT amend CSS-Profile so make
sure that your estimates are very
close.
 IDOC: free service where you submit
supporting documentation-not all
schools use this.

34. CSS-Profile: Finally,
 Every school that uses CSS
Profile or own Supplements
will treat your assets and liabilities
differently; many times in your favor!
 You will know what your EFC is when you
receive your Financial Aid Packet.
 Questions? Use the CSS:Profile toll free
number on the CSS:Profile handout.

35. Cute Panda Cub Break

36. VERIFICATION
 FAFSA can now verify your form
with the information on your federal
tax return.
 If you see an “*” next to your EFC on your SAR
—you will need to verify your FAFSA by
submitting supporting documentation.
 You will get letters from schools to which you
applied with instructions.
 Verification Docs are sent to schools, NOT FAFSA.

37. More Verification
 May have to obtain IRS Transcript.
 Private Schools usually ask for supporting
documentation from all applicants when you submit CSS
Profile or Supplemental Forms.
 Your Financial Aid Package is on HOLD until verification
completed.

38. “The Magic Button”
 The IRS Data Retrieval Tool
 Only on FAFSA
 Will automatically populate FAFSA with your 2012
Federal Tax Return Information.
 Automatic Verification!!
 Won’t be subject to FAFSA Verification.
 No need to order IRS Transcript.
 Easy to use for returning college students with later
FAFSA due dates.

39. Problem for Incoming Freshmen
 IRS Data Retrieval Tool not available until February 3,
2013.
 Must wait 3 weeks after electronic tax filing and 8 weeks
after snail mail tax filing.
 Many colleges have Financial Aid Form due dates in
February (and even January!)
 What to do?

40. Financial Aid Filing Strategy
 On “Blue Sheet”
 Complete and submit FAFSA & CSS:Profile with
Estimated figures by Feb. 1st. or College Due Date.
 File Income Tax Returns Electronically ASAP.
 Wait three weeks.
 Update FAFSA with IRS Data Retrieval Tool. (Automatic
Verification!)
 Submit required CSS:Profile
documentation via I-Doc by
College Due Date. (If req’d.)

41. Cute Duckling Break

42. What kinds of Financial Aid are
available?
 “Funding Your Future” Booklet does a great
job of setting forth information about all of
the types of financial aid.
 Remember Two Main Types:
 Free
 Self Help

43. Free Financial Aid
 Grants
 Pell (Federal)
 Cal Grant
 Institutional Grants (from
the school)
 Other
 Scholarships:
 Institutional (from the
school)
 Private from other
sources

44. Self Help Financial Aid
 Loans (pages 26-28)
 Perkins: Federal, Low income, lowest interest
rate.
 Stafford: Federal
 Subsidized: Need based, limited amount.
 Unsubsidized: All eligible students, limited
amount.
 PLUS Loans: Federal, taken out by parents up to
COA
 Private Loans: Banks, Credit Unions and private
loan companies.

45. More Self Help Aid
 Work Study
(Federal)
 On campus
 Well paying
 Doesn’t count as
“income” for
purposes of FAFSA
and CSS:Profile

46. Cute Kitten Break

47. CAL GRANT
 Great explanation in Booklet
pages 16-18.
 Key Points:
 Need Based (see income ceilings on
Supplemental Handout)
 May only be used at a California
School.
 Deadline to submit FAFSA and gpa is
March 2. (Don’t worry about gpa
submission—done by high school
registrar in fall 2012.)

48. More about Cal Grants
 Different amounts
depending on which
California school you
attend:
 CSU: $5,970
 UCs: $12,192
 Private: $9,223
 Different types of Cal
Grants: A,B &C
 Info. in Booklet

49. California Aid Report (CAR)
 You will receive your CAR electronically.
 Will notify you if you will receive a Cal
Grant.
 See page 13 of Booklet for more
information.

50. Financial Aid Packages
 You will receive your
financial aid package
shortly after you
receive your offer of
admission from a
college or university.
 Compare the packages
using Chart on Page
15 of Booklet.
 The more Free Money,
the better the
package.

51. Universal College Acceptance Date
 MAY 1, 2013
 The last day to pay your deposit to the
college or university of your choice!
 Deposit is usually between $500-$1000.

52. Remember:
 Need to fill out FAFSA and
CSS:Profile every year.
 Save all PINs and copies of
submitted paperwork.
 Much of info is transferred
from this year’s form to next
year’s form!
 Due dates are later in the
Spring for continuing
students.

53. WARNING:
 “Certified College
Financial
Planners/Advisors”
are also Licensed Life
Insurance Brokers
who are trying to sell
you expensive
financial products to
“shelter your assets.”
Please be careful!!!

54. Confused? Overwhelmed?
 Read your Booklet & Handouts.
 This PowerPoint on FTHS Counselors’
page on website.
 Use the “Help” function as you
are filling out forms.
 Ventura College FAFSA
Workshops.

55. Book Recommendation
 “Paying for College
Without Going Broke”
by Kalman Chaney
 2013 ed.
 Two part guide:
 First goes over the
financial aid process
 Second goes over the
FAFSA & CSS:Profile
step by step
 Available at bookstores
and online.

56. Cute Hedgehog Break

57. We Appreciate Your Help!
 Thank you to:
 Mrs. Ferris and her AVID team
and students.
 Ventura College
 Mrs. Vega and the counselors.
 Mrs. Kapala and the college and
career staff.
 Mr. Bova, Mr. Cohen and the
rest of the Foothill Staff.
 PFSO for the delicious
refreshments.
 Parents and Students for making
this evening a success!

58. Questions?