2 About MEFA MEFA is a non-profit state authority that works to make higher education more accessible and affordable through community education programs,

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About MEFA

MEFA is a non-profit state authority that works to make higher education more accessible and affordable through community education programs, college savings plans, and low-cost financing options.

Founded in 1982 by the Massachusetts State Legislature

MEFA has assisted hundreds of thousands of families to finance a college education.

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Seminar Agenda

Overview of Financial Aid

Financial Aid Applications

Financial Aid Awarding

Options for Paying the Balance Due

MEFA’s Parent Assistance Services

Issues for Counselors

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Overview of Financial Aid

Federal Pell Grant (13%)Other Federal Grants (4%)State Grants (8%)Institutional Grants (21%)Private and Employer Grants (7%)Education Tax Credits and Deductions (5%)Federal Loans (40%)Federal Work-study (1%)

Three components of financial aid:

Grants & scholarships

Loans

Work-study

*Source:The College Board, 2007 Trends in Student Aid

Undergraduate Student Aid ($97.1 Billion)

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Sources of Financial Aid

Federal

State

College/University

Outside Scholarships

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Two Different Ways to Award Aid

Need-Based Financial Aid Awarded based on financial need determined by standard methodology All federal, state, and most college monies awarded using this system

Merit-Based Financial Aid Given for academic, athletic, or other talent May or may not be renewable

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Financial Aid Applications

Free Application for Federal Student Aid (FAFSA) Required by all colleges for federal and state aid Free form Must be completed each year Online application recommended

CSS/Financial Aid PROFILE® Some colleges require this form for institutional aid Fee-based form Online application required

College Financial Aid Application Required by some colleges Usually part of admissions packet

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Expected Family Contribution (EFC)

Family has the primary responsibility for contributing to the student’s education

Measure of what a family is expected to contribute toward student’s education for one year

Calculated using standard methodology formula

Visit www.mefacounselor.org to link to an EFC calculator.

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Cost of Attendance (COA)

_Expected Family Contribution (EFC)

= Financial Aid Eligibility/Financial Need

Financial Aid Formula

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Asset Impact (Family Size: 4)

A B C

Income: $60,000 $60,000 $60,000

Assets: $0 $75,000 $150,000

EFC: $4,420 $5,230 $8,800

Difference: $0 $810 $4,380

(Example 1: Income remains level, assets increase)

*This example is an estimate only.

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A B C

Income: $60,000 $100,000 $150,000

Assets: $50,000 $50,000 $50,000

EFC: $4,420 $14,559 $30,660

Difference: $0 $10,139 $26,240

(Example 2: Assets remains level, income increases)

*This example is an estimate only.

Income Impact (Family Size: 4)

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How the Formula Works

$0$5,000

$10,000$15,000$20,000$25,000$30,000$35,000$40,000$45,000$50,000

College A College B College C College D

Need

EFC

Co

st o

f Atte

nd

ance

In a perfect world…

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Examples of Award Letters

COA: $30,000 EFC: $5,000 Total Need: $25,000

Grants/Scholarships $20,000 $17,000 $12,000

Student Loans $3,500 $3,500 $3,500

Work-Study $1,500 $1,500 $1,500

Total $25,000 $22,000 $17,000

Unmet Need $0 $3,000 $8,000

*This example is an estimate only.

College A College B College C

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Options for Paying the Balance Due

Past Income Savings Other Assets

Present Income Salary Payment Plans

Future Income Parent Loans Student Loans

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MEFA’s Parent Assistance Services

Email assistance semi-monthly relating to deadlines, helpful hints, recommendations

Links to online applications

Links to MEFA Customer Service

Your information will only be used by MEFA

Complete the postage-paid card or visit www.mefacounselor.org to sign up for free financial aid information from MEFA’s Parent Assistance Services.

Sign up tonightSign up tonight

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College Financing for Counselors: Common Myths and Facts

Myth: “If we apply for financial aid, it will hurt our chances of being admitted.”

Fact: Most colleges practice need-blind

admissions, where the applicant’s financial

aid status has no bearing on the admissions

decision.

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Common Myths and Facts

Myth: “You need good grades and high SAT

scores to get financial aid.”

Fact: Of the $131 Billion in financial aid awarded

annually, most of it is based entirely on

financial need, not merit.

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Common Myths and Facts

Myth: “I make too much money to be eligible

for financial aid.”

Fact: Financial aid eligibility varies from college to college and some institutions require the FAFSA

application for merit scholarship eligibility.

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Common Myths and Facts

Myth: “We have a lot of personal debt, so

we should be eligible for more

financial aid.”

Fact: Financial aid formulas measure the family’s overall

financial strength based on income and assets.

Personal debt is not considered when determining

financial aid eligibility.

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Common Financial Aid Eligibility Questions

Parents' marital status/reporting Divorced/Separated Parents Stepparents?

Dependency/independency

Citizenship/residency requirements Undocumented students

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Marital Status

Natural/adoptive parents are married: Both report financial information whether filing jointly or

separately

Natural/adoptive parents are separated/divorced Custodial parent reports information on FAFSA Stepparent CSS/Profile

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Establishing Dependency Status

Thirteen questions on the FAFSA are used to determine if the student is required to submit parental information. Answering YES to any one question qualifies the student as independent for federal financial aid calculations, and no parental information or support is expected.

Age 24 by January 1 Married, or supporting children or other dependents A graduate student Serving on active duty or a veteran Orphan, foster child, or ward of the court Emancipated minor, or in legal guardianship Unaccompanied youth, homeless, or at risk of being

homeless

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Citizenship

U.S. Citizen Eligible non-citizen

Permanent U.S. Resident Conditional permanent resident (I551C) According to Arrival Departure Record (I-94)

Refugee Asylum Granted Parolee (minimum of 1 year, status not expired) Victim of Human Trafficking T-Visa holder Cuban-Haitian Entrant

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Thank you!

Questions?

Paul Lynskey, Director of Secondary School Relations, MEFA, [email protected]

Kendra Lider-Johnson, Coordinator of College Admissions Services, MEFA,

[email protected]