How To Apply For College Money

Transcription

1 General Financial Aid Questions Can we apply for financial aid at a college/university before we receive an acceptance letter? Yes, the processes are distinct for applying to the school and applying for financial aid. In most cases, it will be too late to apply for financial aid if you wait until you receive acceptance letters. Can a student get aid from both merit and need-based sources? Yes, a student can receive aid from a variety of sources. What is the first step in getting aid? The first step in getting aid is to complete the Free Application for Federal Student Aid (FAFSA). That means you need to be aware of your deadlines, get your financial information in order, prepare to file taxes earlier if possible. A very close second step is familiarize yourself with what forms are required to apply for aid at the schools of interest some schools might also require the CSS/Financial Aid PROFILE. I was told that our tax filing information can be obtained electronically with FAFSA. Is this true? If so, would you recommend this option over sending via mail? The IRS Data Retrieval Tool is a great way to save some time and gain accuracy when completing the FAFSA. You should, however, be very aware of what your deadlines are: Can you complete your taxes online and the FAFSA in time to meet the earliest deadline? If the answer is no, estimate your taxes and simply complete the FAFSA online. For FAFSA, are you reporting prior year taxes (e.g., 2011 if filling out FAFSA in 2013)? Yes, you will be reporting previous year income on the FAFSA. How does applying for early decision factor into financial aid decisions? Applying for financial aid and applying to a college/university are actually two distinct processes. And, while often you apply for admission and aid simultaneously, deadlines and notification dates for each could be different. For example, you might be awarded admission via early decision in December, but your financial aid application might not be due until February and further, you won't be notified of your actual award until April. You should consult the information from each school to determine the appropriate deadlines and notification dates.

2 Is it common to file the FAFSA as close to Jan. 1 of each year and then amend it after you file your tax return? If so, how easy/hard is it to amend your FAFSA? Filing your FAFSA should really depend on the deadlines of the schools your child is interested in attending. Meeting priority deadlines is critical to be considered for all aid available at the schools. You should be prepared to file by the EARLIEST deadline of the schools on your list. If meeting the earliest deadlines requires you to file before you can complete your taxes, estimates are perfectly acceptable. There are a number of ways to update your FAFSA data the easiest is online. Student data will require the student PIN and likewise to update parent data you will need the parent PIN. Alternatively, you can make corrections directly on the paper SAR report and mail it in. If I have any doubts while applying for aid, whom should I contact? You should contact the financial aid office of the colleges you are considering. What is the difference between priority deadline and regular deadline financial aid? Priority deadline is the date by which your financial aid application must be received by the school in order to be given the strongest consideration. Not all schools have a priority deadline. However, if the school you are interested in does have a priority deadline, meeting this deadline is essential to be considered for all types of aid available at the school. If, however, you miss it, don't despair get your application in by the regular deadline. What if my child has extremely good scores/grades but no demonstrated need? Is it true that merit scholarships are only awarded to early decision/action applications i.e., have we missed it for most schools? No, this is not true. As long as you meet the deadlines of the school (particularly if it has a priority deadline), your daughter should be considered for whatever aid the school has available. Who or how do you determine eligibility for merit-based aid? Merit-based aid is typically determined by the college, university or scholarship program that is awarding the aid. This aid is usually awarded to students with certain qualities, such as proven academic or athletic ability. Many scholarships have rules maintaining a certain GPA, for example that you have to follow to continue receiving aid. To apply for scholarships and grants at colleges or universities, you ll most likely have to fill out financial aid forms such as the Free Application for Federal Student Aid (FAFSA) and the CSS/Financial Aid PROFILE. Private scholarships usually have their own application forms and application processes. If a student has been awarded a scholarship from the college/university, can the student also apply for need-based financial aid? Typically the financial aid award will include all aid the student has been awarded including scholarships, grants, work-study and loans. If the student applied as directed, he/she will be considered for all available forms of aid. Is your FAFSA PIN reusable from year to year? Yes, the PIN is reusable year to year, and the Parent PIN is usable for multiple children.

3 Do my child and I both need to apply for a separate PIN? Yes, you will need both a parent and student PIN when completing the FAFSA. This is your signature on the online application. PINs are usable year after year, and the parent PIN can be used for multiple children. Should students or parents fill in the FAFSA and PROFILE? The application should always be created in the student s name. However, both the student and parent will need to supply information for the student's application (in most cases). Shouldn t one wait until being admitted before contacting the office of financial aid? No, you should not wait until you're admitted to apply for aid. While applying for admission to a school, you should also apply for financial aid. You should also apply for aid at all schools you applied for admission to. If you apply for aid during this window, you should hear back from a school about its admission decision as well as your financial aid eligibility at the same time, which will make it easier to make an informed decision on which college to attend. I have twins: Do colleges and universities take multiples into consideration when receiving financial aid needs? Many factors are taken into consideration when determining financial need. The number of family members in college at the same time is definitely a factor and typically means that more aid will be available to each while BOTH are in college. For big colleges/universities, is the financial aid information specific for colleges within a university or generalized for all students? Typically financial aid is handled by the university for all its colleges. However, you should check with the individual college to ensure there are no additional requirements or forms to be considered for scholarship opportunities that they might have. If you have a financial situation that is unique, is it advisable to write to that school s financial aid director? Yes, financial aid office staff members are there to help you. It is best to contact the office by or phone to set up a more formal time to talk about your situation. What is rolling notification when it comes to college admission? With rolling admission, students have a large window of time during which they can apply to a college or university. The application process typically opens up in the early fall, and it may continue right through the summer. Unlike a regular admission process with a firm application deadline, rolling admission applicants are often notified of their acceptance or rejection within a few weeks of applying. A college with rolling admission typically accepts applications for as long as spaces are available. Applicants should realize, however, that it is a mistake to view rolling admission as an excuse to put off applying to college. In many cases, applying early improves an applicant's chance of being accepted. Also, while there may be no application deadline, there typically are deadlines for scholarships, financial aid and housing. A late application may make it impossible to get any decent financial aid.

4 How can you obtain application fee waivers from colleges? There are several ways to get a fee waiver when applying to college. If you come from a low-income family and paying an application fee would be a hardship, then you can get your application fee waived by most colleges. You need to include with each application a signed statement from your guidance counselor that confirms that you and your family cannot afford to pay application fees. Some colleges include fee-waiver forms with their applications; some high schools have their own forms or use those provided by the National Association for College Admission Counseling or by the College Board. Students who have taken advantage of the College Board's SAT Fee-Waiver Service which covers the basic test fees for the SAT and SAT Subject Tests may also be eligible for up to four application fee waivers for colleges. Is CSS/Financial Aid PROFILE the same as FAFSA? Here are the types of financial aid applications: FAFSA (Free Application for Federal Student Aid): Nearly all colleges require this form, which is used to determine student eligibility for federal aid. Since the majority of college assistance comes from the federal government, it is important that students complete this form. CSS/Financial Aid PROFILE : some colleges use this College Board sponsored form to determine who is awarded their institutional aid. Colleges may require the PROFILE as early as October. State forms: Some colleges require state forms, and some states require in-state applicants to apply for state aid using a state aid form. Finally, about half of all colleges require an institutional form, which students can obtain from the college itself. Usually, this is a fairly short form. How can I find out if the college I m applying to needs the PROFILE? Check your colleges /programs information to determine whether they require the PROFILE. A list of colleges that require the PROFILE from at least some of their applicants is found here ( The most up-to-date list, including search capabilities and additional information, can be found by clicking on Participating Colleges, Universities and Scholarship Programs on the PROFILE home page. You may file the PROFILE as early as Oct. 1, However, you should file no later than two weeks before the EARLIEST priority filing date specified by your colleges or programs. What are the deadlines for the FAFSA and the PROFILE? You may file the PROFILE as early as Oct. 1 of the prior year. (i.e., Oct. 1, 2012, if you are applying for financial aid for the fall of 2013). However, you should file no later than two weeks before the EARLIEST priority filing date specified by your colleges or programs. You may file the FAFSA as early as Jan. 1. Filing your FAFSA really depends on the deadlines of the schools your child is interested in attending. Meeting priority deadlines is critical to be considered for all aid available at the schools. You should be prepared to file by the EARLIEST deadline of the schools on your list.

5 What are the fees for the FAFSA and the CSS/PROFILE? The FAFSA is free. The fee for the initial PROFILE application and one college or program report is $25. Additional reports are $16. Payment may be made via credit card, debit card (Visa or MasterCard) or online check. A limited number of fee waivers are granted automatically based on the information entered on the PROFILE application to students who are first-time college applicants and are from families with very low incomes and assets. International students are not eligible for fee waivers. This waiver covers the application fee and the reporting fees for up to six colleges or scholarship programs. If a college says it does not offer any non-need based aid, is it truly hard and fast, or is there actually some flexibility to that? If a college says it does not do merit aid (non-need-based aid), it should be considered as a firm statement. You should, however, pursue an application for need-based aid at the school if you need assistance paying the full cost. Does the FAFSA allow for explanations of special circumstances such as job loss, or do you need to contact each financial aid office directly? No, there isn t any way to allow for explanations of special circumstances. The FAFSA is pretty cut and dry. Filers who apply for aid only using the FAFSA will need to communicate with their financial aid officers directly and find out what they require for appeals. What is the threshold for Pell Grants eligibility? Amounts can change yearly. For example, the maximum Federal Pell Grant award is $5,550 for the award year (July 1, 2012 to June 30, 2013). The amount you get, though, will depend on, your financial need, your cost of attendance, your status as a full-time or part-time student and your plans to attend school for a full academic year or less. If the parents of the college student are divorced, do you need to include both parents financial information to figure out the net price or just the custodial parent s financial information? This will depend on the individual school s instructions on their net price calculator. In general, you should only present the custodial parent household information (including a step parent, if appropriate) unless instructed differently on a particular net price calculator. If my family filed for debt consolidation, does this negatively impact my son getting financial aid? No, it will not, but it could affect the ability for the parent to get a Federal Parent Loan (PLUS) to pay all or part of the remaining cost after financial aid is awarded. Can the FAFSA be completed prior to Jan. 1 st? Does it allow us to save during a session and return later to complete? If so, is there a time frame for this? No, FAFSA is not available until Jan.1 of every year. You will want to be sure that you are completing the FAFSA for the appropriate academic year that you need aid. Once that year is available, you can save a session and return to complete as often as you need. You will have a total of 45 days to complete the FAFSA once you have started it. If two students submit their applications before the priority deadline, but Student A submits before Student B, is Student A considered for scholarships first, meaning the student has a higher chance of getting more scholarship money? No, scholarship applications are normally awarded after the priority deadlines. However, it doesn t hurt to get things in early so that you can make sure you have a complete application by the priority deadline.

6 Registration and Account Questions Does the student have access to the parent financial information included in the FAFSA? Yes. We didn t check the box for need based on the Common Application because we didn t realize it meant FAFSA. Is this ok? This is not a problem as one does not affect the other, but you should let all the schools know that you are going to be applying for financial aid. Can a student receive aid if their parent does not pay taxes? For U.S. parents: If a parent is not required to file a tax return, the student is still eligible to apply for and be awarded financial aid, providing they submit requested documentation of nontaxable income. If the parent is required to file, but has not done so, the student can apply, but the parent will be expected to produce a tax return to verify the income on the aid application, and if they cannot do so, aid will not be awarded. For parents of foreign students: Consult the individual school s instructions as to what documentation of income is required Several of the colleges on my list advertise that they meet 100-percent need. Does this mean that financial aid is more competitive? And how do they award 100-percent need-based aid if they re also need blind? If a college awards 100 percent of need, it means that for every student they admit, they will fund fully their calculated financial need. Remember, this is what the school determines you need, not what you think you need, but the assessment of need will be applied fairly across all financial aid applicants. Also, need is usually met with a combination of grants, loans and student work. A school that is also need blind usually has a more flexible financial aid budget in order to meet the full need of all admitted students. Do most financial aid sources prompt the student for renewal in years 2, 3 and 4 if they are renewable? Most, but not all you should begin to build a chart of renewal deadlines in January of each year. What is the sticker price? The term sticker price is shorthand for the full cost of attendance for one full year of full-time study. This includes tuition/fees, room and board (or living allowance if not on campus), and estimates for books and supplies, personal expenses (pizza, movies, toothpaste, etc.) and travel. If a parent has filed bankruptcy, does that hurt the student s chances for financial aid? No it will not, but it will affect the ability for the parent to get a Federal Parent Loan (PLUS) to pay all or part of the remaining cost after financial aid is awarded..

7 We are not contributing to our daughter s college degree financially. How can she file independent from us so that our income is not considered? In general, students are only considered to be independent of their parents for the purposes of financial aid if they are over 24 years of age or in graduate school, married, a veteran or currently on active duty, have a child for whom they provide 50 percent support, or are an orphan or ward of the court. There are some other narrow criteria for students who are homeless or who have been declared an emancipated minor by the courts. Full details can be found at My wife, who is my daughter s stepmother, has some investment assets put away entirely for retirement that were there prior to our marriage. Will these assets be expected to be used to pay for my daughter s education? Assuming you are the custodial parent, these assets will be considered as family assets, unless they are in a retirement account. You should write directly to the schools with details about the asset source and current ownership and ask that they be taken out of consideration. For noncustodial parents, these assets will be reported only if the school asks for information from the noncustodial household and will be used in the analysis of eligibility based on institutional policy. Is FAFSA 100 percent need based? For example, if a family of three (one child) makes 200K per year should they even bother applying? Yes the FAFSA is 100 percent need based, and a family as described will not be eligible for federal grant aid. However, some states and schools use the information from the FAFSA to award nonfederal aid. It is a free form. If you are applying for any financial aid, you should probably do it at least for the first year as it is the only way to find out for sure. Financial Aid for International Students Questions Are there special documents that international students should prepare if they re applying for financial aid? You must have a valid student visa such as the F-1 for full-time students, the J-1 for exchange students, etc., in order to be eligible for financial aid as an international student seeking to study in the United States. Students from countries where English is not the official language must also successfully complete the TOEFL Exam. Some colleges will also require the successful completion of the SAT and ACT. How does financial aid work for international students? International students are not qualified to receive need-based U.S. federal aid. The major sources of funding for international students are international scholarships and grants, loans, and part-time jobs that are arranged and/or offered directly by a college. In order to be eligible for financial aid as an international student seeking study in the United States, you must have a valid student visa such as the F-1 for full-time students, the J-1 for exchange students, etc., in order to be eligible for financial aid as an international student seeking to study in the United States. Students from countries where English is not the official language must also successfully complete the TOEFL Exam. Some colleges will also require the successful completion of the SAT and ACT.

8 You can find out whether a college offers aid to international students, and get a sense of how much, by looking at each college s website, and reading the admission information they provide to international students interested in their schools. Can international students apply for student loans? A few U.S. banks will offer student loans to international students if the loan is co-signed by a creditworthy U.S. citizen or permanent resident (holder of a "green card"). There may also be restrictions on the type of visa (F-1 or J-1). Certain international students (i.e., permanent U.S. residents with a green card) may be eligible for Federal Stafford and PLUS loans. What is the financial aid process for students from Canada? Canadians are not eligible for aid given through FAFSA (which is the American equivalent of Canada Student Loans application), so you do not fill out that form. Canadians can, however, fill out the College Board CSS/Financial Aid PROFILE (with the Canadian dollar figures converted to American dollars). Net Price Calculator Questions Should all the colleges have financial aid calculators online now? The federal government requires any postsecondary institution that participates in Title IV federal student-aid programs and enrolls full-time, first-time degree- or certificate-seeking undergraduate students must post a net price calculator on its website. There are a small handful of schools that offer a nonprofessional certificate program, or skill-training colleges, and many are beauty or cosmetology schools. How accurate are the results of a net price calculator? The results will only be as reliable as the data you provide. The net price calculator will only give you an estimate of your net price and aid eligibility. The financial aid office has the final word on your actual financial aid award. Financial aid awards are typically mailed with your offer of admission if your financial aid file is complete. How do net price calculators work and how is the information collected used? The net price calculator starts with a school s sticker price and then processes financial information you provide. It estimates the amount of money your family would be expected to contribute to pay for college, commonly referred to as your Expected Family Contribution (EFC). As a final step, the calculator evaluates your eligibility for financial aid at specific colleges by matching your financial and personal characteristics to the criteria that schools use to distribute financial aid (need-based grants as well as merit-based scholarships).

9 How a net price calculator uses the information it collects will vary by school or organization. There should be a privacy policy somewhere on the calculator that will explain how they plan to use the data they collect from you. If parents are divorced, how do you use both parents information (house, value, etc.) for the net price calculator? In situations where parents are divorced or separated, the net price calculator should be completed with custodial parent information the parent with whom the student lived the majority of the time for the last year. Include step-parent information if your custodial parent is remarried. Most schools do require noncustodial parent information and will include a noncustodial parent contribution in the determination of your financial aid award. What is considered house debt (mortgage, utilities, household expenses, etc)? A mortgage is considered a debt against the value of your house. Things like utilities are considered a living expense. What are all the documents you need to get your net price? Because of the variety in questions that can be asked by a net price calculator, it's impossible to list everything you might need to complete it. In general, calculators ask a series of demographic questions about the student/parent household and a series of questions about income and assets. Having a copy of your most recently completed tax return can be a help, although it s not necessary as estimates are allowed. If gross income is significantly different from AGI, what figure do I put into calculator? Different calculators will ask for different elements of your income answer the questions as completely as possible. Can net price be calculated with the ACT score instead of the SAT score? Yes, your net price can be calculated with ACT scores or SAT scores. Calculators that use SAT or ACT scores usually ask for one or both or provide a conversion scale. How do you figure out net price if you don t know what merit scholarships my daughter will get? Most colleges include merit money in their reported net price. However, if a college s calculator includes questions about academics, you may assume that the result will also reflect, for your daughter, any merit aid for which she may be eligible. If a college does not ask questions about you re your daughter s specific academic performance, you can assume only that the merit aid is included in the average net price for typical students who are similar to your daughter in terms of income, family size, living situation (on-campus, off-campus, in-state, out-of-state, etc.). If your daughter is a typical, average student academically then you'll get a reliable estimate, but if she is significantly higher or lower than the average academically, then the actual net price may be higher or lower. In summary: If you're asked test scores and GPA, then likely the calculator is factoring in specific merit awards for you. In your results, you'll probably also see mention of a merit aid scholarship (e.g., the "Presidential Scholarship") if you qualify. If you're not asked questions about academic performance, then the calculator is probably using the net price for an academically average student in similar circumstances.

10 What are the chances of an applicant qualifying (or at least be considered) for a merit-based scholarship if the posted deadline has passed. Do you recommend that the student still apply for the scholarship? A student should still apply for the scholarship, even if the deadline is passed. The worst that can happen is that the college/university doesn t review the application, but on the other hand, if it does, that student could end up with the scholarship. Are the calculators applicable for international students? The calculators are not applicable to any undergraduate international students. If you are an international student, try contacting the financial aid offices of the colleges you're considering. Is the net price based on one year or four years? Each result from a net price calculator is only valid for the school year in which you ran the calculations. Your net price will vary year to year, depending on your child's academic achievements and your own cost of living increases and decreases. What is AGI and why do the two parents earnings not add up to the AGI? For United States individual income tax, adjusted gross income (AGI) is total gross income minus specific deductions. Gross income includes wages, interest, dividends, business income, rental income, and all other types of income. Adjusted gross income is gross income less deductions from a business or rental activity and 21 other specific items. Do net price calculators have user fees? Net price calculators, on the College Board site and on institutions sites, are free. You should never be expected to pay for any of these tools... Scholarship Questions When students obtain outside scholarships, don t colleges just reduce their aid, so the net cost remains unchanged? Colleges deal with outside aid differently. It is important to understand the policy of each college, and you should find this information on the college s website. Also, make sure that you declare all scholarships you actually receive so a college/university can make the necessary adjustments sooner rather than later when it might come as a surprise. Are merit scholarships available for average students in highly rigorous school districts? That would depend on the college/university s criteria for awarding..

11 BigFuture Site Questions How does BigFuture make money? BigFuture is a website owned and operated by the College Board, a not-for-profit organization. BigFuture does not generate any revenue and is funded by the College Board. Does BigFuture charge a fee to use the website? bigfuture.com is a free tool for students, parents and educators to get all the information they need about searching, applying for and paying for college. There is no fee to use any areas of the website.. For more college planning tools and guidance, visit bigfuture.org. Source: The College Board 2013 The College Board. College Board, Advanced Placement Program, AP, CSS/Financial Aid PROFILE, SAT and the acorn logo are registered trademarks of the College Board. BigFuture and SAT Subject Tests are trademarks owned by the College Board. All other products and services may be trademarks of their respective owners. Visit the College Board on the Web: 13b_7372