Here is a listing of the various terms you’ll see when planning for college.  Start by gaining an understanding of these terms, how they will apply in your situation, and how you will use them.  A solid knowledge of these terms will help you maximize your opportunities for financial aid and help eliminate missed opportunities.  Additional terms will be coming in the following weeks.

Fee Waiver- College application fees and SAT fees may be eliminated if you qualify.  The National Association for College Admission Counseling (NACAC) and Collegeboard have programs in place that can eliminate these costs.

FAFSA- This is known as the Free Application for Federal Student Aid.  This is the form used for the Federal Methodology.

Federal Methodology- This is the federal formula used to calculate the expected family contribution.  It is used by practically every accredited college in the country to determine how much federal funding will be disbursed to cover the cost of attendance.

Dependency Status- This determines who will be able to file when using the Federal Methodology for financial aid.  A dependent student would file using their information and their parent’s information.  An independent student would use their financial information only.

Verification Process- The process where random financial aid applications or those with discrepancies are selected to be reviewed or audited.  This process is designed to ensure that the information reported is accurate.  Approximately 30% of the FAFSA’s are reviewed each year.

Student Aid Report (SAR)- This report summarizes the information reported on the FAFSA.  Once your receive the SAR you will want to review it for accuracy in reporting data on the FAFSA, your Expected Family Contribution, and whether you have been selected for Verification.

FAFSA4caster- This tool provides you with an early estimate of your eligibility for financial aid.  It will also allow you to transfer data over to the FAFSA and provide the option to apply for the Federal Student Aid PIN.

Cost of Attendance (COA)- The cost of attendance is made up of the following expenses: tuition; fees; room and board; books and supplies; personal expenses; cost of a computer; and transportation to and from school.

Expected Family Contribution (EFC)- This is the amount of money a family is expected to pay for a single year.

Financial Need- The formula for determining financial need is as follows: Cost of attendance less expected family contribution.  This may be the most important factor in determining financial aid.  The majority of aid is given by federal and state agencies.

Gift Aid- This type of aid does not have to be paid back and would include scholarships and grants.

Self Help Aid- This category includes loans and work study.  This type of financial aid includes everything outside of gift aid, which does not have to be paid back.

Resources- This includes sources of funding outside of the family’s income and assets that the student has available and may be used to pay for college.  Some common types of resources include private scholarships, cash gifts to the college, and payments from Prepaid Tuition Plans.

Institutional Methodology- This is an alternative method to calculate the expected family contribution.  It is used by private universities.  The Collegeboard determines the formula and makes changes to it.

CSS/Financial Aid Profile- This is the form used to complete the EFC using the Institutional Methodology.

Need Based Aid- This type of aid may be awarded based on one’s financial need (COA less EFC).

Merit Aid- Aid that may be awarded based on the merit of the student.  This may include scholastic, athletic, or musical talent.

College News and Views is a semi-monthly publication that was created to provide you with highlights on a variety of topics in the world of higher education.  If you would like to see additional topics or a greater emphasis on certain areas, just let us know. 

The Latest in Excuses for Students to use- Corrupted-Files.com offers a service that sells students intentionally corrupted files for $3.95.  So why would you buy a corrupted file? Here’s what the site says: “Step 1: After a file is purchased, rename the file e.g., Mike’s Final Paper. Step 2: E-mail the file to your professor along with your ‘here’s my assignment’ e-mail. Step 3: It will take your professor several hours if not days to notice your file is ‘unfortunately’ corrupted. Use the time this website just bought you wisely and finish that paper!!”

Private College Tuition Rises at Lowest Rate in 37 Years- The 4.3 percent increase for 2009-10 is the smallest since 1972-73, when average tuition and fees at private institutions rose by the same rate. The increase is slightly higher than the 2008 Consumer Price Index of 3.8 percent. This NAICU study is based on responses from 350 private nonprofit colleges and universities.

What to Advise Unemployed Graduates- The National Association of Colleges and Employers’ Student Survey shows that less than 20 percent of 2009 graduates who were looking for a job have actually found one. In comparison, more than half of the class of 2007 found jobs before graduation.

Big Changes Could Be Coming to the Federal Financial Aid System- The National Association of Student Financial Aid Administrators began their annual meeting this week. It is likely that we could see some of the biggest changes to the structure and shape of the federal financial aid system in decades.  Most of the changes will deal with the Federal Direct (Direct Loan) Student Loan program, Perkins Loans, Community College Funding, and Pell Grants. 

Diplomas and Dropouts-  At a time when college degrees are expensive and valuable-fewer than 60 percent of new students graduated from four-year colleges within six years.  At many institutions, graduation rates are far worse.

World Conference in Higher Education-  The World Conference on Higher Education gathered over 1,000 participants from nearly 150 countries at UNESCO Headquarters over four days.  Here’s an excerpt from the closing comments at the conference- “At no time in history has it been more important to invest in higher education as a major force in building an inclusive and diverse knowledge society and to advance research, innovation and creativity”. 

The following associations and publications were  referenced-

NAICU- National Association of Independent Colleges and Universities

UNESCO- United Nations Educational Scientific and Cultural Organization

NASFAA- National Association of Student Financial Aid Administrators

Chronicle of Higher Education

Inside Higher Ed

Education Sector

American Enterprise Institute for Public Policy Research

National Association of Colleges and Employers

Yellow Ribbon Program  

Do you know someone that has been on active duty in the service and needs money to pay for college?  For those that have served our country, the Post 9/11 GI Bill tuition benefit will only pay the cost of the highest in-state public undergraduate tuition.  This may result in a shortage to pay for the cost of college.  The Yellow Ribbon Program goes beyond the Post 9/11 GI Bill tuition benefit and pays for the tuition costs of attending a private college, graduate school, or out of state tuition. 

Background

The Yellow Ribbon GI Education Enhancement Program (Yellow Ribbon Program) is a provision of the Post 9/11 Veterans Educational Assistance Act of 2008.  This program allows institutions of higher learning (IHL) in the United States to voluntarily enter into an agreement with Veterans Administration to pay for tuition and fees that exceed the highest public in-state undergraduate tuition rate.  The institution can contribute up to 50% of the tuition costs above the highest public in-state tuition rate and the Veterans Administration will match the contribution. 

What institutions are participating in the program?

A recent article from The Chronicle of Higher Education indicated there were over 1100 participating institutions.  See article for more information-http://chronicle.com/news/article/6737/college-options-broaden-for-military-veterans 

For a list of participants in the GI Bill’s Yellow Ribbon Program-Go to: http://www.gibill.va.gov/GI_Bill_Info/CH33/YRP/YRP_List.htm 

Here are some of the participating institutions in the Southeast and contribution level. 

Let’s take a look at a couple of examples to determine the total contribution and net cost.  If you are living in the state of Georgia, the tuition expenses for the University of Georgia total $7,530.  If you want to go to Agnes Scott College the total tuition expenses amount to $30,105.  If you are eligible for the Yellow Ribbon Program you could receive a maximum contribution of $12,500 from the school which would be matched by the Veterans Administration.  The Yellow Ribbon Program would provide 100% of the funding in this case.  In another example using Furman University, the tuition costs total $36, 656.  Furman University would contribute up to $12,628 with an additional $12,628 from the Veterans Administration.  The GI Bill Tuition benefit would pay approximately $7,530.  This net cost would be $3,870 per year for tuition costs to attend Furman University.  

Who is eligible?

Only individuals entitled to the maximum benefit rate (based on service requirements) may receive this funding.  Therefore, you may be eligible if:

• You served an aggregate period of active duty after September 10, 2001 (minimum of 36 months);
• You received an honorable discharge from active duty for a service connected disability and you served 30 continuous days after September 10, 2001; 
• You are a dependent eligible for Transfer of Entitlement under the Post-9/11 GI Bill based on a veteran’s service under the eligibility criteria listed above.   

Benefits are payable for training pursued on or after August 1, 2009.  No payments can be made under this program for training pursued before that date.

Do you still have questions?

Call 1-888-GIBILL-1 to get additional information and support.