College Financial Aid Advisors

Once you have completed the FAFSA (Free Application for Federal Student Aid), the next step is receiving a Student Aid Report (SAR) from the Department of Education that summarizes the information you provided and lists your Expected Family Contribution (EFC). The EFC is compared against the Cost of Attendance (COA) at each college to determine the amount of financial aid that is required. This is an important document that will be used by various colleges to determine the amount of financial aid your child might be entitled to receive. If the information accurately reflects your current financial position, your student could receive federal, state, and institutional financial aid to help pay for college. It is very important to check this document carefully to make sure there are no mistakes that could affect your financial future. If you provided an email address when completing your FAFSA, you will receive an email notification that your SAR is ready to be accessed, usually within about two weeks. Be sure the email address, FederalStudentAidFAFSA@cpsemail.ed.gov, is included in your contacts so your notification doesn’t go into to your spam folder. Accessing your SAR involves visiting the same site where you completed the FAFSA, logging in using your FSA PIN, and clicking on “View Your Student Aid Report.” If you did not supply an email address, or your information is not complete, you will receive either the SAR or a SAR Acknowledgement by mail. Once you receive your SAR, here are a few steps you need to take: • Look for the Expected Family Contribution (EFC): This number usually appears in the upper right-hand corner of the SAR. If there is no amount listed, your application was incomplete and you will need to take some further action. • Look for your Data Release Number (DRN): This is a four digit number which will appear either in the upper right-hand corner on a paper SAR or in a box with the Application Receipt Date on the electronic version. You will need to supply this number to any colleges if you want them to change certain FAFSA information. • Check the Information Carefully: Make sure the information listed is what you think you entered. It is possible that you made some type of entry mistake that could affect your financial aid outcome. • Review the List of Schools: Check to see that all of your child’s prospective colleges are listed on the SAR, or they will not receive a copy of your financial information. • Make Necessary Changes: If information is missing or incomplete, you may need to make some changes to your FAFSA. You may also be able to change information if your situation has changed after submitting the application. Although there are still many factors that are taken into consideration, such as scholarships, the SAR is generally the first step in determining how much your family will be expected to pay to send your child to college.

It’s time to talk to your teenager about the realities of paying for a college education. Yes, it’s hard enough talking to them about curfews, let alone discussing something which could have an impact on their education and their whole adult financial life. But that job does fall under your list of responsibilities as a parent, so here are a few tips which might make it a little easier for everyone involved: • Fill Out the FAFSA Together: No, it’s not easy sharing the details of your financial situation with a teenager. You have actually tried to keep that information from your child for years, but there is no better time than right now to discuss the financial reality of your family. Let your teenager see how much money you earn, how much there is in savings, and how much you have saved for retirement. Use the FAFSA4Caster to estimate how much financial aid your child will receive, and then discuss what will have to be done to make up any difference. • Learn the Financial Aid Basics: If this is the first time you have sent a child to college, it can be confusing to learn all of the jargon. Sit down with your child and learn about the various grants, loans, scholarships and work-study programs that are available so that you become familiar with the terminology. Two sets of eyes may be better than one in spotting something that might just help make the financial aid difference in paying for college. • Help Your Teenager Learn to Budget: You are not necessarily doing your child any favors by not allowing him or her to learn how to handle money. Start teaching your children how to plan their income and expenses while they are still in high school, so they will have an easier time when it comes to preparing a budget for college. • Discuss Student Loans: Even with all of the federal, state and institutional college financial aid that is available, you may still have to borrow some money for your child’s college education. Make sure you understand the difference between federal and private student loans. If you have to take out a PLUS loan, explain that this will have an impact on your family’s financial situation. Set out any expectations now about who will be responsible for making payments on any student loans. • Hunt Down Those Scholarships: Scholarships are a great way to cover some of the college expenses, but you can’t receive most of them if you don’t apply. Steer your child in the right direction and make sure he or she spends some time each week pursuing this vital component of financial aid. It may be another hair-raising session to try to talk seriously to your teenager about important financial matters, but don’t give up. Be persistent, and remember that you are providing a financial education to someone who will shortly become an adult who needs these very skills.

Do millennials, generally considered to be those born between 1980 and 1999, have different factors which affect how they make decisions about student loans? The ever-increasing amount of student loans, estimated at over $30,000 per 2013 graduate in some states, seems to indicate that this group is comfortable with taking on debt. How much debt they accumulate and whether they will be able to repay it, though, often rely on several factors: • Your State Might Make a Difference: Although a debt amount of $30,000 is substantial, that is not necessarily the norm for all states. Somewhat surprisingly, the highest amount of student loan debt comes from New Hampshire, at a whopping $32,795. In addition, some 76% of the graduates there have at least some student loan debt. Other states now over the $30,000 mark include Rhode Island, Delaware, Pennsylvania, Connecticut, and Minnesota. Close behind are Maine, Michigan, South Carolina, and Iowa, each with average debt over $29,000. These figures are certainly something to keep in mind as high school students and their parents evaluate financial aid offers for the 2015-16 academic year. • Your Major Makes a Difference: When it comes to repaying your student loans, your major makes a big difference. A recent analysis from The Hamilton Project showed that, while student loan repayment often becomes easier for most graduates as their earnings increase, students with some majors tend to struggle with student loan debt. Their comprehensive review of eighty majors reveals the share of earnings needed to cover traditional student loan payments. Although college graduates still earn significantly more than high school graduates, there are certain careers which will generate enough income during the first ten years to easily repay most student loan balances. For example, given a similar amount of borrowing, graduates in drama and theater can project paying 24% of their earnings during the first year, while energy and extraction engineering graduates, can estimate paying only 7% of their earnings. While graduates may benefit from income-based repayment programs, this information may have some impact on choices of major and career paths for incoming freshmen. • You Might Not Have to Repay All of Your Student Loans: Pew Research found that 24% of millennials expect that student loan debt will be forgiven, and they may be right. Students with federal student loans have some options where part of their student loan debt is forgiven based on non-profit or public service or other factors. Income-based repayment plans may also qualify you for forgiveness after 20-25 years, but the amount forgiven may be taxable. In the end, the best payment strategy is one that is developed before you even begin to take out any student loans. Millennials should not wait until graduation to think about the impact their student loan borrowing will have on their lives after college. As the generation that will have the most economic impact in the next twenty to thirty years, it’s smart to start learning about money management now.

The holidays are over, winter is settling in, and college students are getting set to return to campus. Parents of high school seniors are anxiously beginning the process of completing the FAFSA for the very first time. You may not have noticed that the President has returned to Washington after a holiday break and a Republican Congress is also back in session. The balance of power in Congress has shifted, and college students everywhere are wondering what kind of impact this change might have on their college financial aid. Here are a few ways you could be affected: • Compromise Will Still Be Tough: Although the Republicans do hold a majority, it is not veto-proof, so there is still likely to be some political maneuvering between the two parties. If the parties cannot learn to compromise, this could have a big impact on any changes to federal college financial aid. • Sequestration Is Still an Issue: Remember all the fuss about sequestration some time back? Well, those federally mandated budget cuts are still having repercussions and may affect financial aid funding levels. Particularly at risk is the Federal Perkins Loan Program, which may expire in September without further Congressional action. The loss of this program could deeply impact the ability of students with extreme financial hardship to attend college. • Education May Not be a Top Priority: Although students and their parents know how important a college education is, officials in Washington may not have it at the top of their action list for 2015. They may still be feuding about the Affordable Care Act or the Keystone Pipeline, while renewing the Higher Education Act gets pushed farther down the priority list. • Financial Aid May Actually Get Easier: The financial aid process has caused consternation for years, and there is a movement afoot to make it simpler. There is some talk of streamlining the FAFSA, along with simplifying the number of aid programs. Meanwhile the Education Department, which oversees the implementation of federal financial aid programs, also has plans for implementing certain regulations in 2015. Their attention may be focused on a teacher-preparation regulation, student loan repayment, student debit cards, distance education, and the gainful-employment rule. This relates to President Obama’s college ratings plan, which he intended to have finalized by the fall. Of course, just because the Education Department will be working on these rules doesn’t mean they will all pass Congress. There may still be a lot of negotiation on all fronts in the future. Change is unsettling, but that is the benefit of living in a democracy. You have the opportunity to decide what is important to you and inform legislators of your priorities. Make sure you communicate with your representatives in Congress and the Senate, and tell them how important federal college financial aid is to your family and your future. If cuts are made to these programs, we will only have ourselves to blame for not making our opinions heard.

Another year is about to begin, so it is time to think about making some resolutions. For high school and college students, and their parents, resolutions often revolve around issues of money. Since there are many participants in the college financial aid process, here are some suggested resolutions for each group: • High School Students: Resolve to help your parents in all aspects of the college financial aid and payment process, so that you can get a better idea of what your college education really costs and start learning how to manage money on your own. Promise to help pay for your education in every possible way by applying for scholarships, participating in a college work-study program, and learning to budget. • Parents of High School Students: Resolve to spend time with your student to explain the financial aid process, and help your child learn how to budget. Help guide your student through the college application process, and be prepared to complete the Free Application for Federal Student Aid (FAFSA) as soon as possible in January. • College Freshmen: Resolve to spend some time over your first holiday break thinking about money and talking about it with your parents. Talk about the budget your parents gave you for your first semester and discuss any difficulties you are having in managing your own money. Let them know if you are having any problems learning how to use the money you have available through student loans or credit cards. Try to earn a little money for out-of-pocket expenses while you are home, and continue looking for college scholarships that can help lighten the load. Be prepared to sit down with your parents in January and help them complete the FAFSA for the 2015-16 academic year. • College Students: Resolve to find out now how much money you currently owe in student loans, and start thinking about a plan for paying them back after you graduate. As you get closer to your degree, start to learn about job application and interview skills so you will be able to find a good-paying job that will help you get a great financial start in life. • Recent College Graduates: If you have not already started making payments on your college student loans, resolve to make a plan to do so immediately. The loans you received played a big role in helping you achieve your dream of a college degree, and it is time to start paying them back so that other students can have the same opportunity as you did. If you believe there has been some type of error in the amount you owe, take the steps necessary to resolve your student loan dispute. A new year is a great time to make a fresh start, especially when it comes to money matters. Think about the resolutions you want to make regarding college financial aid, and then take the steps necessary to stick to those plans. You’ll come out way ahead in 2015 and beyond!

Perhaps you have been quite efficient and managed to get all of your college applications submitted on time. You have also met with your parents and started to collect the information needed to complete the FAFSA in January. Is there anything else you can do to make sure you give yourself the best shot to get into the college of your choice? It’s always a good idea to follow-up on your college applications. It would be quite the shame to miss out because something was not submitted on time. Here are a few steps you can take: • Pay Attention to Email: Although most high school students thrive on text messages and Tweets, college admission offices still rely on email communications. Set up an email address that is just used for this purpose, and then be sure to check it every day. Respond immediately to any requests for further information. Keep all of the emails you receive from colleges until after you have decided where you will attend. • Supplemental Information: When using the Common App, check each individual school to determine whether any supplemental information is required. • Follow Up on Recommendations: You should have already asked several teachers, counselors, advisors or other adults who know you to complete a letter of recommendation. Follow-up to make sure these have been completed. The Common App has a recommenders’ page you can review to determine which letters have been submitted. If a letter has not been received, politely follow-up with the person you contacted. For technical difficulties, dig out your Common App ID number and contact the help desk or help line. • Make Sure Your Test Scores Were Submitted: When you took the College Board SAT or ACT, you listed colleges to receive your test scores. Log into your account on these websites to verify that all of your colleges are listed and that your scores were released. • Check on Transcripts: Make sure your high school provided any requested transcripts, especially if you took advanced placement courses for college credit. If you took classes directly at a local college, you’ll also need to obtain and forward that information. • Remember Your ID Number: Most colleges will probably provide you with an ID number that allows you to log in to a website and check the status of your application. Keep these numbers easily accessible and remember to check the websites often until all materials have been received. • Say Thank You: If you had any college interviews, be sure to send a thank you note. It may be necessary to contact the college’s admissions office directly, but keep in mind that this is a very busy time of year for them. Don’t just call and ask if they received your application. Make sure you have done everything possible to ensure that all of your documents have been submitted. You have an important role to play in the college application process, and good follow-up is always part of that role.

The New Year will soon be upon us, and with that is the start of another FAFSA season. FAFSA – the Free Application for Federal Student Aid – is the key to receiving access to federal, state and institutional college financial aid. It is important to complete the FAFSA accurately as errors could lead to additional processing time. Some aid is distributed on a first-come, first-served basis, so you don’t want to miss out on any opportunity to maximize the amount of aid available. Here are some scheduled changes for the 2015 FAFSA which might affect you: • Foster Care: Students who have been in foster care may have some difficulty with questions that ask about their parents. This issue has been clarified for the 2015 FAFSA. A new question will ask whether the applicant is now in foster care or has ever been in foster care. If the answer is “Yes,” the student will receive messages about additional potential resources such as the Education and Training Voucher (ETV) Program and the John H. Chafee Foster Care Independence Program. • Legal Residence: Applicants will be asked if they became a legal resident of their state prior to a certain date. If the answer is yes, the applicant moves on to the next question. If the answer is no, applicants will then be prompted to enter the month and year they became a legal resident. • Neither Citizen nor Eligible Non-Citizen: Applicants will be prompted to select this option if they are in the U.S. and have: · Been granted Deferred Action for Childhood Arrivals (DACA) · An F1 or F2 student visa · A J1 or J2 exchange visitor visa · A G series visa · Other • High School Diploma: Clarification has been provided to state that a high school diploma means the applicant has received or will receive a U.S. high school diploma, or a foreign school equivalent, before the first date of college enrollment. • Number in College: This question will ask how many people in the parents’ household will be college students between July 1, 2015 and June 30, 2016. Always count the student who is applying for aid, but do not include the parents or any siblings who are in U.S. military service academies. • Legal Parent: Further clarification has been provided about who is considered a legal parent for FAFSA purposes. Applicants should answer all the questions even if they do not live with their legal parents. Grandparents and others caring for a child they have not legally adopted are not considered parents. These clarifications are particularly helpful in states that have recognized same-sex marriages. The form also provides further clarification about parents who are “separated.” In addition, in April of 2015 FAFSA on the Web will be updated to require users to authenticate with the FSA ID rather than the PIN. After completing the FAFSA, FSA will mail a Student Aid Report (SAR) to the applicant and make the information available to listed colleges.

When some parents talk to their college-aged children about money, it can feel like they come from two different planets, not just two different generations. The “Baby Boomers” and “Gen Xers” of yesterday are trying to help their millennial children learn to deal with the realities of life in the 21st century…and it’s not always easy. Each generation brings unique insights to the discussion. While Baby Boomers (1946 to 1964) reflected the work ethic and money sensibilities of their “Greatest Generation” parents, Gen Xers (1964 to 1981) felt that “it’s all about me.” The Millennials (1981 to 2001) are spending over $170 billion a year of their own and their parents’ money, and sometimes paying the price by having parents who are “too involved.” Is there a way to get beyond generational differences and produce money-smart millennials who don’t spend their lives in their parents’ basement? Here are some tips on providing financial advice that can ease their financial path in life: • Set Clear Financial Expectations: The millennials are a highly-educated group, and they know a good deal when they see it. Living with mom and dad is perfectly acceptable as long as there aren’t too many restrictions. But this isn’t good for the financial welfare of either party. The adult children don’t learn to manage on their own, and the older parents forsake some of their retirement capabilities to enable their children’s continued dependence. Now that the economy and job market are improving, parents need to set clear financial expectations about the amount of rent that is to be paid, and how long this relationship is expected to last. • Learn How to Budget: Perhaps this is the best piece of advice coming from a generation that has experienced everything from terrorist attacks and stock market tumbles, to recessions and housing bubbles. Don’t get in over your head. Use credit wisely to make well-considered purchases such as a house or car, but don’t use it rashly to cover everyday expenses. Always have a “rainy day” fund to help get through those unanticipated events such as a job loss or medical emergency. Far too many people living on the edge are forced into bankruptcy by one major life event. • Gain Control Over Student Loans: While education is a valuable asset that will produce a lifetime of benefits, the costs of gaining that knowledge are becoming difficult to bear. The Project on Student Debt revealed that the Class of 2013 graduated with an average debt load of $28,400, often with no idea on how they are going to repay those loans. Meanwhile, a study by PwC and Junior Achievement show that a shocking 24% of millennials said they expect their loans will ultimately be forgiven. This is a most unwise strategy which could cause a lifetime of financial difficulty. Parents may be old-fashioned and “out of touch,” but it is still their responsibility to teach their children well, especially when it comes to money.

Most of us think that students can graduate from a community college in two years, other colleges in four years, and then take additional courses for a specific profession in post-graduate classes. But a recent study by Complete College America sheds a new light on these assumptions. Entitled “Four-Year MYTH,” the report details the reasons behind the failure to graduate “on time,” and chronicles its associated costs. This information is crucial to high school and college students, and their parents, who want to assess a college’s completion rate so they can budget accordingly. Some important takeaways: • Understand a College’s Graduation Rate: Students considering a particular college are advised to inquire about the graduation rate. Now they must also find out whether “graduates” are being benchmarked against a standard of three years for an associate’s degree and six years for a bachelor’s degree. • Know the Costs: The report states that expanded graduation timeframes could cost almost $16,000 in additional tuition and fees at a “two year” college, and over $22,000 at a public “four year” college, not to mention the wages lost while spending additional time in college. • Watch Financial Aid: College financial aid is often based on criteria such as carrying a specific number of hours or making satisfactory academic progress. Failure to graduate within the anticipated timeframes could affect a student’s financial aid eligibility. College scholarships may not be extended for students who take longer than two or four years. Graduate On Time to Maintain Financial Aid Eligibility There are some steps you can take to help insure graduation within the anticipated timeframe: • Check Course Availability: Know what courses are needed to graduate with a specific degree, and make sure those courses are offered frequently enough to fit your class schedule. • Understand Remediation Requirements: Some colleges have entrance testing requirements for subjects such as math. Students who fail to meet certain achievement levels are required to take remedial classes, which can cost both time and money. Make sure you know your college’s required academic levels before beginning school. • High School Courses: If they are offered at your high school, try to take as many Advanced Placement (AP) classes as possible. These can reduce the number of hours and money required in college. • Know the Curriculum Requirements: One fault the study found was that colleges simply offer too many courses, and students have a difficult time choosing. Know exactly what is required to graduate with your desired degree and take only courses that help achieve that goal. • Watch Transfer Credits: If you decide you want to transfer, make sure the next college you choose accepts a high percentage of your credits, so you won’t be forced to take the same classes again. Talk to a professional College Financial Aid Advisor who can help make sure you understand the financial consequences of not graduating “on time.” Contact College Financial Aid Advisors (CFAA).

The College Board is a non-profit organization that plays an important role in the college process. Founded in 1900, its membership has grown to over 6000 educational institutions worldwide. The Board’s mission is to help high school students prepare for a successful transition to college, including the SAT. It also conducts research on the education industry. A look at a few of their reports provides some insights on trends in college affordability: • Trends in College Pricing 2014: This report concludes that published tuition and fee prices rose between 2.9% and 3.7% from 2013-14 to 2014-15, depending on in-state, out-of-state, and type of college. These figures are compared to the Consumer Price Index which only rose 2% during a comparable period. Despite the increase in published prices, though, it also showed that the amount paid after taking college financial aid, tax benefits, and inflation into consideration actually declined between 2004-05 and 2009-10 at certain institutions. • Trends in Student Aid 2014: The federal and state governments made adjustments to their financial aid programs to help students keep up with rising costs. As a result, grants increased as a percentage of all student aid plus non-federal loans to 49% in 2013-14. Undergraduate and graduate students received over $238 billion in grants, federal work-study, federal loans, and federal tax credits in 2013-14. Despite the increase in aid, students borrowed an additional $10 billion from private, state and other sources. About 60% of students who graduated with a bachelor’s degree borrowed an average of $27,300. • Education Pays 2013: Of course, the ability to repay student loans is based on current income levels as well as anticipated future earning capabilities. This report documents many of the well-known benefits of a college education: higher likelihood of gaining employment, increased earning potential, improved health and pension benefits, and healthier lifestyles. They also expand on these benefits in How College • Shapes Lives: Understanding the Issues from October 2013. The benefits of a college education still outweigh the negatives for both the student and society at large. Much has been made in the news media about the student loan crisis, but 58% of the borrowers are in active repayment. Some seem to think that totally revamping the student loan system will solve the problem, but that might only serve to decrease access and further separate the classes. College costs are increasing due to many factors, and any increases in federal and state aid come from the taxpayer base. The pain will only stop when we look at the true causes and take more individual responsibility in planning, and paying, for a college education. To find out more about saving for college, paying for college, and financial aid, talk to a professional College Financial Aid Advisor who can help make sure you understand all of the options and opportunities that are available to you. Contact College Financial Aid Advisors (CFAA) or visit my About.com website, Paying for College, for more information.