Navigating College Financial Aid Program Analysis Dr. Herm Davis 301-548-9423

1. Navigating College Financial Aid Program Analysis Dr. Herm Davis 301-548-9423 hdcfaces@comcast.netwww.drhermdavis.com

2. Higher Education in Maryland

3. COLLEGE SELECTION PROCESS Quality of Education Happiness Security and Health Affordability

4. “Top 10 Best Colleges: Public Schools National Universities” VS. “Top 10 Party Schools”

5. Components for Discussion 1 – Overview 2 – Forms Analysis 3 – Process Analysis 4 – FAFSA / CSS Profile Preparation & Analysis 5 – Resource Analysis 6 – Award Analysis

6. Overview of the Financial Aid Process How to start the Financial Aid Process – KNOW your 4 worst enemies! Enemy #1– Cost of Attendance Enemy #2– Missed deadlines Two main reasons: “Student must be admitted before filing for aid” – WRONG! “Parents must have their Federal income taxes submitted” – WRONG! Enemy #3– Self discrimination Two main reasons: “We make too much to file for aid” – WRONG! “We can’t afford a private college” – WRONG! Enemy #4– Your College Student • Student needs to check college’s financial aid website • Parents need to obtain their student’s ID and password

7. 4-year College Graduation Comparison Chart www.collegeresults.org (1 of 2)

8. 4-year College Graduation Comparison Chart (2 of 2)

9. FAFSA Forms Analysis • Free Application for Federal Student Aid (FAFSA) • CSS Profile • Institutional Aid Application (IAA) • Verification Work Sheet (VWS)

10. Free Application for Federal Student Aid (FAFSA) • www.fafsa.gov • Cost: Free • Submit for each student per year immediately after Jan. 1st. • PIN Required to sign electronically • www.pin.ed.gov • fafsa4caster.ed.gov

11. CSS Profile • https://profileonline.collegeboard.com • Cost is $25 for the initial application and $16 to add additional schools • CSS Non-Custodial Parent Profile cost is $25 • CSS IDOC (Institutional Documentation Service)

12. Institutional Supplemental Forms • Institutional Aid Application (IAA) “Institutional Funding Form” Financial Aid Form found on college financial aid website • Verification Work Sheet (VWS) -IRS Data Retrieval Tool (DRT) FAFSA Update -VWS Form + w-2’s +IRS Tax Transcript IRS ph: 1-800-908-9946

13. Process Analysis • Online processing • How colleges receive data • How to correct data • EFC Formula • Awarding of Aid Formula

14. ONLINE FAFSA Flow FAFSA entered by Student/Parent School ISIR Individual Student Information Report 1. 4. 7.__ 2. 5. 8.__ 3. __ 6. 9.__ 10.__ Student Student Aid Report S A R Central Processor Student Corrections School Award “Package” Process Maryland State Scholarship Include a Maryland College on the FAFSA School Award Letter Sent to Student

15. FAFSA Preparation -Who fills out the FAFSA? Parent(s) of the student, where the student has resided more than 50% of time of the calendar year. - Who’s information do you use? Parent(s) who are married or remarried OR Single, Divorced, Separated or Widowed?

16. FAFSA Preparation • Student Financial Information “As of today, what is your (student’s) total current balance of cash, savings and checking account(s)?” “As of today, what is the net worth of your (student’s) investments, including real estate…”

17. FAFSA Preparation • Parent(s) Financial Information “As of today, what is the parent’s total current balance of cash, savings and checking account(s)?” “As of today, what is the net worth of the parent’s investments, including real estate? (Don’t include the home in which your parents live. Net worth means current value minus debt.)” “As of today what is the net worth of your parent’s current business and/or Investment farms? (Don’t include a family farm o family business with <100 FT employees)”

18. EFC FORMULAEFC = Expected Family Contribution (ESC-I) Expected Student Contribution from Income + (ESC-A) Expected Student Contribution from Assets + (EPC-I) Expected Parent Contribution from Income + (EPC-A) Expected Parent Contribution from Assets = (EFC) [Expected Family Contribution]

19. FAFSA Preparation

20. Award Calculation

21. FAFSA / CSS ProfilePreparation and Analysis

22. Asset Protection Allowance Example: If the age of the older parent is 50 and 2 parents are in the household: The asset protection allowance is$34,600

23. RESOURCE ANALYSIS Self Help Programs (Awarded before gift aid) Work-study or student employment programs: federal and college. Loans: Direct Loans, PLUS Loans and Private Loans – borrowed money that you must pay back, usually with interest. Gift Aid Programs – “Free Money” Grants – Need Based Money you don’t have to repay, typically based on financial need. Scholarships – Merit and May be Need Based Institutional, State and Private Free money awarded usually based on your area of study or merit.

24. Federal Loans: The smart way to borrow • Federal Direct Loans Subsidized Direct Loans • Based solely on financial need • Federal government pays the interest while you are in school Unsubsidized Direct Loans • All eligible students can receive them, regardless of income or assets • You’re responsible for paying the interest while in school.

25. Federal Direct Loan Limits

26. Federal Direct Loan Interest Rates Federal Pell Grant = $5,635

27. Federal Direct PLUS Loans • Enable parents or stepparents (whose information is reported on the FAFSA) to borrow up to the cost of attendance. • Minus any other aid the student may receive • Legal guardians cannot borrow PLUS loans .

28. (Resource Analysis Continued) • Academic Common Market “College 411” Guide http://www.mhec.state.md.us • Innovative Opportunities “Best College Deals” -www.petersons.com • College Graduation Rates by years of study www.collegeresults.org  • Net Price Calculator http://netpricecalculator.collegeboard.org/

29. The Award Process • Colleges assign each student a password and user name after the admissions applications are received. The user name and password is assigned to allow students to monitor their admissions application, financial aid status, academic record and billing statements. • The financial aid offices uses this process to communicate with the students regarding their financial application status.

30. (The Award Process Continued) • After each college receives the aid application/documents it will post receipt of the document on the student’s financial aid page. 1. The posting will tell the student the status of the document received regarding its fulfillment. 2. If the college requires additional information, it will post the listing on the student’s aid page. (PROBLEM: Student fails to monitor his/her financial aid page in order to take further action and thus complete the aid application process.)

31. (The Award Process Continued) • After the student meets all requirements for awarding, the aid office will post the award on the student’s account. 1. The awards will be posted for the student to accept or decline. 2. If accepted, the student will be instructed regarding any additional action to be taken. (Note: A student should check his/her college email account as well as their personal email account and regular U.S.P.S) (Problem: Student fails to monitor his/her financial aid page to either accept or decline awards. In addition, even after accepting, many times the student fails to complete the award process by not fulfilling the loan application process.)

32. Navigating College Financial Aid Program Analysis Dr. Herm Davis 301-548-9423 hdcfaces@comcast.netww.drhermdavis.com