Financing Education Beyond High School

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Financing EducationBeyondHigh School

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Total Cost of EducationAverage Annual Costs
2000-1source The College Board
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Cost of Education

• Tuition fees
• Room Board (Home maintenance allowance if
  living at home)
• Books supplies
• Miscellaneous personal expenses
• Transportation

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Basis For Awarding Aid
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Sources of Need-Based Financial Aid

• Federal Government
• State Local Government (TSAC)
• Private Foundations Organizations
• Colleges Universities

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NeedBased Financial Aid Forms

• FAFSA required to receive federal funds and
  some institutional funds
• CSS Profile required by some colleges for
  institutional aid (asks for more detailed
  information, such as home equity). There is a
  fee for the Profile form.
• Institutional Forms similar to the Profile but
  is issued by individual colleges and is free

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Calculating Family Contribution
Factors Prior year Income of Parents
Student Value of Parent Student Assets Number
of Household members Number In College Age of
Older Parent
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Family Contributions - Estimates
Parent Contribution From Income - Total Divide
by number in college for per student contribution
Adjusted Gross Income (000)
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Estimating Your Family Contribution
www.finaid.org
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Calculating Financial Need

• Cost of College
• - Family Contribution
• Financial Need

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Financial Aid Package
Grants/Scholarships
Loans
Work Study

Financial Aid Package
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The Shifting Balance

• Circa 1975, federal grants represented 80 of
  federal support available, loans represented 20
• In 1999, federal grants represent less than 20
  of the federal aid available to college students

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Ingredients In The Financial Aid Mix

• Cost of attendance
• Family Contribution
• The mix of grant, loan, and work
• Some institutions may not meet 100 of need
• Some institutions use an institutional
  methodology for allocating their institutional
  funds

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Overview Of The Financial Aid Process
Family sends financial information to the
processor(s) FAFSA /or PROFILE
Colleges calculate need (cost less family
contribution) and make award
College notifies family of financial aid offer
Data analyzed and results (amount a family can
afford) sent to colleges and families
Colleges review analysis and make any necessary
adjustments
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Is It All Worth It
3500000
3,013,000
Lifetime Earnings
3000000
2500000
2,142,000
1,619,000
2000000
1,421,000
1500000
1,062,000
1000000
993,000
821,000
500000
0
HS
Some
Bachelors
Associate
Masters
Professional
Doctorate
Graduate
College
Degree
Degree
Degree
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Discussion
SECONDARY SCHOOLS
FINANCIAL AID
STUDENTS
ADMISSIONS
PARENTS
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Thank You!
1413 Chestnut Street, Chattanooga, TN
37402 Phone [phone] Fax [phone]