The document provides information from a guidance counseling presentation on junior college planning. It discusses graduation requirements, the college application process, financial aid, and resources for seniors. Topics covered include SATs, transcripts, letters of recommendation, FAFSAs, scholarships, grants, loans, and costs of attendance versus expected family contributions. Counselors' contact information is provided for students with different last initials to discuss their college plans.
17. Cost of Attendance (COA) - Expected Family Contribution (EFC) __________________________ = Financial Aid Eligibility/Family Need Financial Aid Formula
INTRODUCTION & WELCOME Welcome everyone! About yourself, background Experience, history of where you’ve worked We’re here tonight to learn about how to finance a college education To get you jump-started on the college financing process for 2003-2004! Special thanks to _________ for invitation Remind everyone to complete sign-in sheet...for MEFA’s use only The program is brought to you my MEFA, the Massachusetts Educational Financing Authority We call this a ‘financial aid” presentation, but it is actually a “college financing” presentation. The information we’ll cover tonight is good for all families, whether you qualify for financial aid or not.
Grants: WHAT YOU WANT (Gift Aid) Some come from Federal government (Pell), state (MassGrant) and colleges themselves (ie. Boston University has Boston University Grant) Scholarships: Grants given for a purpose, you may look for yourself or the school may offer. Loans (Self-Help) Parent and Student Explain Federal Stafford and Direct loan Subsidized vs. Unsubsidized: everyone can borrow regardless of income Parent Loans include PLUS and the MEFA Loan (more later) Work-study (Self-Help) Explain that you don’t study and get paid, but earnings can go towards living expenses, not just tuition Examples of work-study jobs.
FAFSA: Where to get it? Guidance offices, Libraries, Colleges and Universities DON'T FILE UNTIL AFTER 1/1/04! Do one form, information is sent to all of your potential schools. All schools require the FAFSA It’s FREE PROFILE: SOME colleges need this…why? Gives schools more information to spend their institutional funding, it’s faster than waiting for the FAFSA data for schools that award based on early decision or want to award early. There is a fee for the profile, explain. INSTITUTIONAL Institutions can ask anything. Not all schools require this, check your application view books and applications for details You can also apply on the web. We’ll talk about that in more detail later.
C.O.A: Not direct cost to you, direct = your bill, COA includes living, etc. E.F.C: estimate of the families ability to contribute towards the student’s educational expenses to the extent that they are able for the upcoming academic year. Estimates how much you can contribute relative to other families, but makes no particular assumptions about how you will finance that contribution. In fact, you have choices about how to do that which we will discuss later. NEED: COA-EFC (need is $$ you need, but don’t have) This is where financial aid comes in. More need, more eligibility for aid, less aid = less financial aid eligibility
This is how it works, important so we will review again In a perfect world, you would get 100% of your financial need in financial aid and all you have to pay is your family contribution….but it doesn’t always work this way Based on funds availability, many families demonstrate high need so schools may only meet a % of this need with aid.
Here’s how it works: Formula looks at the following: Income: Taxable (wages, interest, business income, rental income etc.) Non-taxable ( paid to pension, child support received, AFDC etc.. # in family, that you support Tax paid, not withheld # in college, at least 1/2 time, matriculated program Assets: current value of cash, savings and investments, equity of other real estate, business equity (equity is worth-debt) Uses parent and student information Outcome = EFC Only as good as the numbers that are reported
College Financing Like buying a car - most can’t afford cash for a new car Use some savings Use some money from your current paycheck Use future earnings by borrowing a loan Explain payment plan i.e. owe $1000? pay $100 per month for 10 months better than ANY loan Review guide to borrowing as resource for finding a loan One of the options is the MEFA Loan
