6/9/2015 Financial Aid: Getting your Fair Share By Dennis Bye Member National Financial Aid...
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Transcript of 6/9/2015 Financial Aid: Getting your Fair Share By Dennis Bye Member National Financial Aid...
04/18/23
Financial Aid: Getting your Financial Aid: Getting your Fair ShareFair Share
By Dennis ByeMember National Financial Aid Practitioner’s Alliance
04/18/23
Introduction Introduction
Cost of Education Ivy League 60,000 Private 47,000 State School 29,000 Public schools up 2.9%
Private schools up 3.7%Inflation 1.7%Source CEEB
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MythsMyths
Myth 1 Middle Income Families Don’t Qualify for Aid
Myth 2 You Cannot Impact Aid Eligibility Myth 3 Only Students with good grades
qualify Myth 4 You have to be a minority to get
financial aid
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The Financial Aid FormsThe Financial Aid Forms
FAFSA
PROFILE
These forms are necessary for Federal, State, and/or Institutional Aid
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Many Families Find These Many Families Find These Forms Confusing and Forms Confusing and IntimidatingIntimidating
And Experience Hours of Frustration Trying to Complete Them
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Family Assets and IncomeFamily Assets and Income
Are Among the Many Factors Assessed to Determine Aid Eligibility
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The Information from the The Information from the financial aid forms financial aid forms is calculated inis calculated in
NEEDS ANALYSES FORMULAS
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The Weighting of this The Weighting of this Information Establishes YourInformation Establishes Your
EXPECTED FAMILY CONTRIBUTION (EFC)
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……. This is How Much the . This is How Much the Government Feels You Can Government Feels You Can Afford to PayAfford to Pay
Ouch!!!
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Cost of AttendanceCost of Attendance
Tuition and Fees Room & Board Books, Travel & Personal
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Aid Comes FromAid Comes From
Federal > Grants > Loans > Work Study
State > Grants > Scholarships
College > Grants > Loans
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Federal Grants and LoansFederal Grants and LoansPell Grant $5,730SEOG $4,000
Perkins Loan $5,500 5%Sub Stafford $3,500 4.66%
Unsub Stafford $3,500 4.66%
PLUS Loan 7.21% 4.29%
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State Programs State Programs www.hesaa.orgwww.hesaa.org
TAG county 2,318,St College 6,326, Ind College 10,468, Rutgers 8,554, NJIT 9,692
NJ Class Loans 5.49% 3% orig fee 10 yr.6.65% 3% orig fee 15 yr8.05% 3% orig fee 20 yr
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Financial Aid AwardsFinancial Aid Awards
The Award LetterThe Award Letter
Compare Packages No Absolutes
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Award LetterAward Letter School A B Cost 30,000 30,000 Family Cont. 10,000 10,000 NEED 20,000 20,000
Students Loans 3,500 4,500 Work Study 1,500 2,000 State Aid 2,000 2,000 Grant 13,000 5,500 TOTAL $20,000 $14,000
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Public vs. Private CollegePublic vs. Private College
Rutgers LoyolaTotal Cost $29,875 Total Cost $59,320Need $19,875 Need $49,320% need fully met 12% %need fully met 95%Financial aid eligibility $2,385 Financial aid eligibility $46,854Gift aid 46% $1,099 Gift aid 70% $32,797Self help 54% $1,287 Self help 30% $14,056Out of pocket cost $27,461 Out of pocket cost $12,467Total cost - gift aid $28,776 Total cost - gift aid $26,523
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Maximizing Aid EligibilityMaximizing Aid Eligibility
Understanding The Federal Formula May Save You
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ASSET VALUATIONASSET VALUATION
INCLUDED Cash Savings Stocks Bonds Mutual Funds Real Estate Business
EXCLUDED Retirement Accounts Cash Value of Life
Insurance Annuities Primary Residence (Federal Only Family Farm (Federal
Only Consumer Assets Consumer Debt
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Parent Income Protection Parent Income Protection AllowanceAllowance
Family of 4…. $25,000 Family of 5….$30,000 Family of 6….$35,000
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Asset Protection AllowanceAsset Protection Allowance
Age 46…. $47,700 Age 47…. $47,900 Age 48…. $50,100 Age 49…. $51,300 Age 50…. $52,900
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How Many Family Members How Many Family Members are Attending College ?are Attending College ?
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Understand The Logistics For Understand The Logistics For Proper Filing Of Special Proper Filing Of Special ConditionsConditions
Single-Separated-Divorced Parents Loss of Employment...
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Retirement ContributionsRetirement Contributions
IRA’S401K’s As Income?TSA’S As Assets?
Are included as untaxed income on the financial aid forms. The value of these accounts are not included as an asset.
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American Opportunity CreditAmerican Opportunity Credit
100% OF THE FIRST $2,000.0025% OF THE NEXT $2,0000.00
Phaseout $180,000 MFJ$90,000 S,H of H
Available all four years of undergraduate education
Use form 8863 education credits
Available for the first four years of post secondary ed.Up to $2,500 per eligible student
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Lifetime Learning CreditsLifetime Learning Credits
20% of the first $10,000 (no limit to the number of years) can be used for non degree study. Up to $2,500 credit per return
Phase-out: $127,000 MFJ$63,000 S, H of H
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Student Loan Interest DeductionStudent Loan Interest DeductionCan reduce income up to $2500.00$155,000 MFJ$75,000 SHH
Can take this with claiming American Opportunity CreditLifetime Learning Credit
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Tuition and Fees Deduction from Tuition and Fees Deduction from IncomeIncome
Reduce Income by up to $4000.00
Limits: $ 160,000 MFJ $ 80,000 SHH
Can not take this deduction if claiming American Opportunity Credit or Lifetime Learning Credit
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SECTION 529 PLANSSECTION 529 PLANS
DISTRIBUTIONS ARE TAX FREE FOR EDUCATION
“ ASSETS of the OWNER”
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What I can do for youWhat I can do for youEnsure you will qualify for the maximum amount of aid you are legally entitled to!Calculate your EFCExpertly complete the financial aid formsAdvise how to pay what isn’t subsidized with financial aidAdvise you on the most tax efficient way to pay for collegeRemain a year-round resource for your financial planning needs!
Website www.financialaidnj.com
04/18/23
Services ProvidedServices Provided
Ensure you qualify for the maximum amount of Financial aidCalculate your expected family contributionComplete the FAFSAComplete the CSS Profile if requiredAdvise how to pay the balance that is not subsidized with financial aidAdvise you on the most tax efficient way to pay for collegeProvide planning recommendations to potentially reduce your EFCAdvise on where to get the lowest interest loans for which you qualifyKeep you appraised of changes in financial aid on the national and state levelAdvise you on which colleges are likely to give the most financial aidReview award letters for fairnessRemain a year round resource for your financial planning needs