240. Unstack the Odds--Access Programs, Part 5

Unstack the Odds: Help All Kids Access College—and Graduate!
by

Joe Rottenborn

Executive Director, Mahoning Valley College Access Program (MVCAP)

16. Access Programs, Part 5

The final descriptor of college preparation programs reviewed by Jennifer Lee Schultz and Dan Mueller was that they “Provide financial assistance.” [emphasis in original] As the authors stated, logically, “Students need adequate financial resources in order to attend and complete college. Research has shown that financial aid – especially state funded need-based grants – is positively associated with college enrollment (St. John, Chung, Musoba, Simmons, Wooden, & Mendez, 2004), and students who received financial aid persist in college better than or as well as students who do not receive aid (Hu & St. John, 2001).” (Jennifer Lee Schultz and Dan Mueller, Effectiveness of programs to improve postsecondary education enrollment and success of underrepresented youth: A literature review, NorthStar Education Finance, November 2006. p. 11.) http://www.mncollegeaccess.org/sites/b862decd-72ee-44b5-80f8-4f0ac42e8716/uploads/NorthstarLitReviewWithoutRICFSum_11-06.pdf

Schultz and Mueller specify some of the forms this “financial assistance” can take, stating “Programs can provide financial assistance by sending students on college visits, covering the fees for college entrance exams and applications, and awarding scholarships (Gándara & Bial, 2001).” The authors further noted that, “Although only about half of the programs included in this review provide scholarships, most programs provide students with information and assist students in applying for financial aid.” (Jennifer Lee Schultz and Dan Mueller, Effectiveness of programs to improve postsecondary education enrollment and success of underrepresented youth: A literature review, NorthStar Education Finance, November 2006. p. 11.) http://www.mncollegeaccess.org/sites/b862decd-72ee-44b5-80f8-4f0ac42e8716/uploads/NorthstarLitReviewWithoutRICFSum_11-06.pdf

In its 10 years of existence, our Mahoning Valley College Access Program (MVCAP) has provided over 160 last-dollar scholarships—most for $1,000—to help students reduce their “unmet need,” defined as the amount they still have to pay after their expected family contribution (EFC) and all financial aid have been subtracted from their total cost of attendance. In recent years, many--if not most--of our awardees have had EFCs of $0 and unmet need of at least $1,000—and, sometimes, several thousand dollars.

The preceding paragraph illustrates a major difficulty for first-generation college applicants and their parents: understanding how financial aid is determined and awarded by colleges and universities. Indeed, it’s probably safe to say that few understand the process. For that reason, I’ve developed the following simplified discussion, emphasizing key terms (in boldface), which was posted in 2009 on our MVCAP blog. (Links to those original blog posts are provided.)

Let's start with an airplane analogy. Imagine you are flying from, say, Pittsburgh to San Diego. If your flight has 100 passengers, not everyone pays the same fare. Those who purchased tickets 30 days early likely got a discount; those who bought their tickets online probably saved money; and those who waited until the day of the flight to purchase paid the highest price for their seat on the plane. Plus, those who had enough frequent-flier miles flew for free! It's a similar situation for college costs. The price each student (or his/her family) pays per year is often different. Generally, however, three factors largely determine how much you'll pay to attend (i.e., to ride on the college airplane!) These three factors are the "a-b-c" of college financial aid:

a. Financial Need;

b. Grade-Point Average (GPA); and

c. ACT or SAT score(s).

As you’ll soon see, understanding college financial aid is as easy as a-b-c! http://mvcap.blogspot.com/2009/11/1-confused-about-college-financial-aid.html

To start, we'll look at the most important factor related to college financial aid: financial need. Suffice it to say that your conception of your own financial need may have little to do with what a college or university regards as your financial need. And therein lies the confusion, misunderstanding, and frustration experienced by many students and parents: you wonder how the college came up with that! To understand how colleges will view your financial need, we'll address the following six topics:

1. FAFSA (Free Application for Federal Student Aid)

2. SAR (Student Aid Report)

3. EFC (Expected Family Contribution)

4. Financial-Aid Package (put together by the college)

5. Gift- or Merit-Aid (Discounts, Grants, and Scholarships)

6. Self-Help (Loans and Work-Study).Have a good flight! http://mvcap.blogspot.com/2009/11/2-financial-need.html

Perhaps the most important single determiner of your Financial Need for college financial aid is the Free Application for Federal Student Aid, which is most-frequently referred to as the FAFSA. The good news about the FAFSA is that it's free; it is also available at http://www.fafsa.ed.gov/, and you file online. That's about all the good news regarding the FAFSA!

The other news is the FAFSA consists of a form provided by the U.S. federal government's Department of Education to help colleges determine how much a student (and his/her family) can afford to pay per year. A federal formula is used to crunch the numbers you enter. Figures are based on your federal income-tax return for the preceding year. Section 483 of the Higher Education Act of 1965, as amended, requires the U.S. Secretary of Education to "produce, distribute and process free of charge a common financial form to be used to determine the need and elibibility of a student." The FAFSA is that form.

To fill out the FAFSA, the student and parent will need all of the following:

a. Student Social Security card (Contact http://www.sss.gov/ to get one.);

b. Mother's Social Security card (Contact http://www.sss.gov/ to get one.);

c. Father's Social Security card (Contact http://www.sss.gov/ to get one.);

d. Student Driver's License Number;e. Student and parents' 2009 Federal Income Tax Return (IRS Form 1040, 1040 EZ, or 1040 A); and

f. Student and parents' records of untaxed income received in 2009, such as social security benefits, welfare, AFDC benefits, worker's compensation benefits, etc.

The FAFSA contains questions divided into four sections:

SECTION 1--STUDENT INFORMATION: Areas include Student Citizenship Status, Marital Status, Selective Service Registration, Student Aid Eligibility Drug Convictions, Highest school your father completed, and Highest school your mother completed. When a student is online, they can add up to 10 colleges on their FAFSA; these colleges will receive the information from their processed FAFSA. A student is generally able to fill out these items.

SECTION 2--STUDENT DEPENDENCY STATUS: 13 questions are asked; if a student checks (i.e., answers "yes" to) any box (question), he/she will not have to provide parental information: they will be considered "independent" by the FAFSA. If a students checks none of the boxes, they will need to provide parental information in the next section--because they are considered "dependent" by the FAFSA. Note: most students are regarded as "dependent."

SECTION 3--PARENT INFORMATION: (Relates to the parents' income and assets.) Areas include parents' 2009 income tax return, adjusted gross income, other income, additional financial information, and untaxed income.

SECTION 4--STUDENT INFORMATION: (Relates to the student's income and assets.) Areas include student's 2009 income tax return, adjusted gross income, other income, additional financial information, and untaxed income.

Among the most important questions dealing with a student's (and, if married, their spouse's) ability to pay for college are the following:

· In addition to grants, are you interested in student loans (which you must pay back)? Answer "Yes," since you can always decline them later.

· In addition to grants, are you interested in "work-study" (which you earn through work)? Again, answer "Yes," since you can always decline to work later.
· What was your (and spouse's) adjusted gross income for 2009?

· Enter the total amount of your (and spouse's) income tax for 2009.

· How much did you (and spouse) earn from working (wages, salaries, tips, etc.) in 2009?

Among the most important questions asked regarding the student's parents' financial ability to pay are the following:

· What was your parents' adjusted gross income for 2009?

· Enter the total amount of your parents' income tax for 2009.

· How much did your parents earn from working (wages, salaries, tips, etc.) in 2009?

The form requires a student to certify that they understand that "the Secretary of Education has the authority to verify information reported on this application with the Internal Revenue Service and other federal agencies." It also states the penalty for not telling the truth: "If you purposely give false or misleading information, you may be fined $20,000, sent to prison, or both." And you just wanted college financial aid!

The FAFSA is made available after January 1 each year; you should try to submit it by February 1 for priority consideration for financial aid. But to do that, you need to have your income-tax return completed for the previous 12-month period. Thus, you are very busy with the FAFSA during the month of January!

As if filling out and filing the FAFSA isn't taxing enough, some colleges and universities also require students to complete a PROFILE, the financial aid application of the College Board, for non-federal aid. Like the FAFSA, you can complete the PROFILE online (http://profileonline.collegeboard.com/index.jsp). http://mvcap.blogspot.com/2009/11/3-fafsa.html

Once you've filled out and filed the Free Application for Federal Student Aid (FAFSA), you will receive from the U.S. federal government's Department of Education the 2010-2011 Student Aid Report (SAR) Federal Student Aid Programs. The good news about getting the SAR, as it's called, is there's nothing to fill out and it's not too long a document to read. It displays the printed responses you entered for each of the 100+ blanks on the FAFSA. It also tells you if you qualify for a Federal Pell Grant. Finally, it lists what are called Processing Results.

When you file the FAFSA online (at http://www.fafsa.ed.gov/), you can print your own SAR immediately after submitting your information. If you forget to then, you can access and print your SAR later--as long as you remember your personal information number (PIN) and Social Security Number. (To get a PIN, hit http://www.pin.ed.gov/; to get a Social Security Number, click on http://www.sss.gov/ ).

Here's the step-by-step way to go online to print your SAR:

1. Click on http://www.fafsa.ed.gov/

2. On the screen headed "FAFSA on the Web YOUR FREE APPLICATION FOR FEDERAL STUDENT AID," look at the third column of choices, entitled FAFSA Follow-Up. Select the arrow choice Print Student Aid Report.

3. On the screen headed "FAFSA on the Web Print Student Aid Report (SAR)," click on the school year you want the SAR for--probably the 2010-2011 School Year. Click Next.

4. On the screen headed "FAFSA on the Web Print Student Aid Report (SAR)," click Next.

5. On the screen headed "FAFSA on the Web Print Student Aid Report (SAR) Supported Browsers," click Next.

6. On the screen headed "PIN REQUEST & INFORMATION Confirming Your Identity," enter the answer to each of these four questions about your student:

What is your social security number?

What are the first two (2) letters of your last name?

What is your date of birth?

What is your PIN?

Be sure to use the format given in the examples. Now click SUBMIT REQUEST.

7. On the screen headed "STUDENT ACCESS on the Web SAR Transactions," you'll find your Expected Family Contribution (EFC): Bingo!

If you complete and file your FAFSA, you'll usually receive your SAR in less than one month. It will have information on both the front and back sides. On the front side, your EFC will be printed about 4 inches to the right of where the student's name is printed. The last paragraph on the front side will say whether the student is eligible for a Federal Pell Grant. On the back side, your FAFSA responses will be printed on the top 2/3 of the page. On the bottom 1/3, under Procesing Results, your EFC will be printed at the top of the middle column.

The bad news about the SAR provided by the U.S. Department of Education to help colleges determine how much a student (and his/her family) can afford to pay per year is that many students and parents can't make any sense of it! Most important, they don't know where to look for the most important item it gives: the Expected Family Contribution (EFC). That's too bad, because the EFC is used to determine the financial need and eligibility of a student for financial aid. We'll talk about the EFC next.

Suffice it to say now, the SAR is an important document sent directly to the colleges you specified on your FAFSA. They'll use it to determine your financial need and whether you'll qualify for financial aid. http://mvcap.blogspot.com/2009/11/4-sar.html

Now we get to the heart of financial need. Once you've filled out and filed the Free Application for Federal Student Aid (FAFSA) and received back from the U.S. Department of Education the Student Aid Report (SAR), you'll know what the federal government's formula computes your family can contribute for one year to send a student to college. That dollar amount is called your Expected Family Contribution (EFC). We've already discussed where to find your EFC on the SAR; if you forget, you can access the previous paragraphs on the SAR. In a nutshell, however, the EFC on an online SAR will be on the screen headed "STUDENT ACCESS on the Web SAR Transactions," which you can access via http://www.fafsa.ed.gov/. On the printed copy of the SAR, which you received after filing the FAFSA online, your EFC will be printed on the front side about 4 inches to the right of where the student's name is printed. On the back side, it will be on the bottom 1/3, under Procesing Results, at the top of the middle column.

As I've indicated, the EFC is used to determine the financial need and eligibility of a student for financial aid. Here is an explanation of the EFC, according to the U.S. Department of Education's pamphlet, The Student Guide: Financial Aid: "The formula used to calculate your EFC is established by law and is used to measure your family's financial strength on the basis of your family's income and assets." Know that it has nothing to do with what you think your family can afford per year--only what the "federal methodology," as it's called, calculates your ability to pay.

As the federal government's pamphlet also states, "If your EFC is below a certain amount, you'll be eligible for a Federal Pell Grant . . . ." Furthermore, as the pamphlet explains, ". . . Your EFC is used in the following equation to determine your financial need:Cost of Attendance- Expected Family Contribution (EFC)= Financial Need."Put most succinctly, the pamphlet summarizes: "Your financial aid administrator calculates your cost of attendance and subtracts the EFC. If there's anything left over, you're considered to have financial need."

Thus, the EFC is probably the single most important number colleges use to determine your financial need and whether you'll qualify for financial aid. Your EFC will be used by a college to come up with your student's Financial-Aid Package, which we'll discuss next. http://mvcap.blogspot.com/2009/11/5-efc.html

This is what you've been waiting for. The financial-aid package is what the college offers to help a student finance his or her college expenses. As we've said before, the Expected Family Contribution (EFC), listed on the U.S. Department of Education Student Aid Report (SAR) you receive after filing the Free Application for Federal Student Aid (FAFSA), goes a long way toward determining how large your "package" is and what it will contain. At the very least, the EFC makes you eligible for a Federal Pell Grant in your financial-aid package; at the most, the EFC will help establish what your out-of-pocket expenses will be for the year and whether you'll have to borrow money--and the size of such loans to the student or parent.

At many universities, other factors also influence the size and composition of the financial-aid package; among these are a student's grade-point average (GPA), scores on the ACT or SAT, and "special characteristics. Here's a brief comment on each factor--since a more complete discussion will follow:

a. GPA--Generally speaking, the higher the GPA (relative to other students who apply and are admitted to a particular college or university), the better--that is bigger and more free--the financial-aid package will be.

b. ACT or SAT scores--Some colleges will award scholarships (i.e., discount their costs) based on these scores. Typically, ACT scores of at least 30-32 (of 36) and SAT scores of at least 1300-1400 (of 1600) will pay off as students will be awarded more money in grants as opposed to loans.

c. "Special Characteristics"--Included here would be athletic prowess, the ethnicity of an applicant, and particular academic/musical/artistic abilities. Indeed, some colleges and universities use different criteria for admission and financial aid if a student is a recruited athlete or is from an underrepresented group.

Some colleges use a graph with GPA and ACT/SAT scores on the vertical and horizontal axis, respectively. The point at which a student's GPA and test scores intersect determines the amount of their discount or scholarship. Under-represented groups at a particular school may be sought to enhance diversity, so financial-aid packages can be made very attractive. Regarding students having particular abilities, the rarer ones (for example, a virtuoso violinist--who can play in the university's orchestra, which just graduated its first-chair violinist--or someone who has had a book published at age 18) can pay off handsomely in admittance and financial aid.

Next, we'll break down a student's financial-aid package into two types of award: gift-aid and self-help. http://mvcap.blogspot.com/2009/11/6-financial-aid-package.html

Gift-aid is the best kind of financial aid--because a student doesn't have to pay it back! This aid is a gift that reduces the cost of attending a particular college or university. Unfortunately, there never seems to be enough of gift-aid. Nonetheless, there are three types of gift-aid we'll discuss: a) discounts; b) grants; and c) scholarships.

a) Discounts--Until relatively recently, discounts weren't discussed much publicly by colleges. However, discounts were discussed in articles and presentations intended for college admissions and financial-aid personnel. Simply put, a discount is a reduction in the costs--usually, tuition and fees--a student will be charged by a college or university. Consider an automobile analogy: the old adage was "Never pay the sticker price for a new car." Well, with many schools, particularly small, private colleges, the same holds true today. The college will often reduce its costs to enroll your student--depending on how desirable a prospective student the school considers them.

To read Kim Clark's article "Private Colleges Adopt Car Lot Strategy," posted online at U.S. News & World Report on 9/15/10, click this link: http://www.usnews.com/articles/education/paying-for-college/2010/09/15/private-colleges-adopt-car-lot-strategy.html

Why is discounting done? So colleges can enroll the most able students it can. Of course, the most selective universities don't have to discount their tuition and fees because they have more highly-qualified applicants than they can admit already--many of whom are willing to pay "full fare." But less-selective and less well-endowed schools, in competition with other colleges like themselves, use discounting to enroll the students they covet most.

Each college has its own "look-fors" when considering applicants, but most want those with high GPAs in a rigorous high school curriculum as well as high ACT or SAT scores. Some seek high school valedictorians or National Merit Scholars. And for these top students, colleges may be willing to discount their costs significantly.

Why don't schools just reduce tuition "up front," by simply cutting their "sticker price"? Because then applicants who lack high GPAs and test scores but who desire to enroll--and can pay "full fare"--may be admitted to enhance revenue. Sound like a business? Maybe that's why many colleges now call their "Office of Admissions" by the more modern--and, perhaps, more accurate--label of "Enrollment Management."

b) Grants--Grants are reductions in college costs based on the financial need of an applicant--as indicated by their Expected Family Contribution (EFC), derived from their parents' responses on the FAFSA. The best grants are the Federal Pell and state grants based on an applicant's EFC. The lower a student's EFC, the higher their grant can be. In 2009, the maximum Pell Grant awarded was $5,350 per year to a student whose EFC was less than $100. To use the Ohio College Opportunity Grant (OCOG) as an example of a state grant, its maximum in 2009 was approximately $1,008 per year. When you add these two grants together (= $6,358), a student could finance much of his or her tuition and fees at some states' public institutions--if they commuted and did not have to pay the $7,000-$8,000 per year for room and board. The problem with the Pell Grant is it doesn't now cover room and board charges at most public universities and doesn't even come close to paying for tuition and fees--let alone room and board--at nearly all private schools.

c) Scholarships--Scholarships are cuts in college costs based on merit--usually defined as high GPA and ACT or SAT scores. But, you say, that sounds like a discount, which we've already discussed. Ah, you're getting the idea. Many of those "scholarships" students receive from colleges and universities are, in fact, discounts--that is, reductions in costs rather than money going from the school to the student. (Notice here that we're not talking about the scholarships awarded by local organizations or community groups, which are actual money going to the students--and then to the college.) Many colleges have established a whole hierarchy of scholarships: President's, Deans', and department awards are common examples. Some scholarships are actually funded by interest from contributions to the college's endowment (i.e., investment principal) made by the people whose name they commemorate. But many university scholarships--particularly those to, say, "cheerleaders," "class presidents," etc.--are simply cuts in college costs--not "money" the student will receive.

Well, that's "gift aid" in a nutshell. If it sounds "nutty," I can't help it: college financial aid today sometimes does seem crazy! http://mvcap.blogspot.com/2009/11/7-gift-aid.html

Self-help is the "other" kind of financial aid--because a student or parent has to pay it back! We may not like it but colleges expect both students and parents to "help themselves" pay for their higher education--hence, the term "self-help." The most common variety consists of a loan--the four-letter word in college financial aid! Loans, of course, must be repaid (with interest), which results in students' loan-debt.

Another kind of self-help is federal work-study--a job (usually, on campus) offered a student in their financial-aid package for which they are paid (often, minimum wage); students can use this money they earn to pay for some of their college expenses.

The good news about self-help is it may enable a student to attend college now--even though they or their parents don't have enough money today to pay for it. And make no mistake: the price of a college education may be high--and getting higher each year. Thus, self-help is the type of financial aid we love to hate--but, often, couldn't afford to finance a university degree without. http://mvcap.blogspot.com/2009/11/8-self-help.html

Here is a review outline of financial aid. Merit aid is decided by each college or university, based on its own applicant pool. It is usually called a “scholarship”—though, often, it is a discount on the price to be paid. Some common criteria for merit aid include the following:

1. Grade-Point Average (GPA)—“The higher, the better!”

The rigor of courses on a student’s high school transcript is determined by:

a. The more Advanced Placement (AP) courses taken, the more rigorous the curriculum is regarded.

b. The more higher-level courses in math and lab science taken, the more rigorous the curriculum is regarded.

2. Class Rank— “The higher, the better!”

a. The larger a senior class, the more impressive a high class rank is.

b. The higher-achieving a school is, the more impressive a high class rank is.

3. ACT Composite Score— “The higher, the better!”

a. ACT scores range from 0 to 36; the national average is approximately 21.

b. A student’s score is compared to the state and national averages.

c. A score in the 30s put a student’s score in the highest 5% of test-takers.

4. Distinctions in the following areas:

Academic;

Arts; and

Leadership in extracurriculars

5. Under-representation (i.e., a student is from a group whose percentage on campus is less than its percentage nationwide.)

6. Division I recruited athlete—particularly, in a major revenue-producing sport

Note: 1% of all U.S. athletes will receive a Division I “full ride” grant-in-aid. http://mvcap.blogspot.com/2009/11/14-merit-aid.html

Need-based aid is determined by responses on the Free Application for Federal Student Aid (FAFSA), which should be filed online by February 1 and must be filed again each year.

Expected Family Contribution (EFC)—How much the Federal formula calculates a student and parent(s) can pay for college

Types of Financial Aid

1. Grants—do not have to be repaid (“gift aid”); Pell increased by The College Cost Reduction and Access Act (CCRAA), passed by Congress and signed by President Bush.

Federal Pell Grant—If EFC is $0, (maximum) Pell Grant amount is $5,350/yr.—but, if EFC is $4,000 or higher, Pell Grant amount is $0/yr.

Academic Competitiveness Grant (ACG)—A student who completes a rigorous high school curriculum (defined as 4 yrs. English, 3 yrs. math, 3 yrs. science, 3 yrs. social studies, and 1 yr. of a foreign language) can receive an additional Pell grant amount.

Ohio College Opportunity Grant (OCOG)—If EFC is $0 (with a family income level of $75,000/yr.), OCOG is$1,008/yr. at a public college or university$2,256/yr. at a private, non-profit college or university$0/yr. at a private, for profit (proprietary) institution

But, if EFC is $2,191, OCOG is $0.Therefore, if EFC is 0, $5,350 Pell Grant + $1,008 OCOG = $6,358/yr.

2. Federal Work Study—In exchange for work in a campus job, a student gets paid, up to approximately $2,500/yr.

3. Federal LoansFederal Stafford Loan—subsidized (current fixed interest rate is 5.6%, cut by CCRAA on 7/1/08 and, eventually, to 3.4% in July 2011) or unsubsidized (6.8%)

Federal Perkins Loan (current fixed interest rate is 5.0%)

Federal PLUS Loan (Parent Loans for Undergraduate Students)—Parents who qualify can borrow up to the total annual cost minus other aid received, with 10 yrs. to repay; current fixed interest rate is 7.9% (+ fee of up to 4% of loan)

Private Loans—at a higher (9.0+%), often variable, rate of interest http://mvcap.blogspot.com/2009/11/15-need-based-aid.html

How much will a particular college or university cost me? Remember the airplane-flight analogy: on average, 60 different fares per flight!

Each college or university sets its “sticker price.”

Like buying a new car, you may or may not have to pay the “sticker price.”

Determining your Cost at a particular College or University

1. Total Cost of Attendance (C of A)—Which may include the following:

· Tuition and fees—rising by 3-10%/yr.

· Books/Supplies—average $100 per course/yr. (5 courses in Sem. I + 5 courses in Sem. II = 10 courses x $100 = $1,000/yr.)

· Transportation—driving/flying to and from campus; gasoline; parking fees; fares

· Room and Board—vary by college; estimate an additional $7,000/yr.

· Student Health Insurance

· Other Expenses— food & drink; entertainment (games, movies, concerts, cable TV, music downloads, etc.); laundry/dry cleaning; toiletries; internet access; credit-card interest; cell phone (estimate $50/mo. = $600/yr.); decorating dorm room (average $1,200/yr.)

2. Minus Expected Family Contribution (EFC)—Based on your FAFSA responses and the federal methodology

· What was your adjusted gross income for 200_?

· As of today, what is your total current balance of cash, savings, and checking accounts?

· As of today, what is the net worth of your investments, including real estate (not your home)?

· As of today, what is the net worth of your current businesses and/or investment farms? Do not include a farm that you live on and operate.

3. Equals Financial Need (= Aid Eligibility)

4. Minus Federal Pell Grant— to qualify, your EFC must be < $4,000 ($5,350/yr. max)

5. Minus Academic Competitiveness Grant—$750/$1,300/yr.

6. Minus Ohio College Opportunity Grant—up to $1,008/$2,256; to qualify, your EFC must be < $2,200

7. Minus Federal Work Study—generally, up to $2,500/yr. for working up to 20 hrs/wk

8. Minus Merit Aid—any institutional scholarships or discounts

9. Minus Federal Stafford Loan—subsidized/unsubsidized ($5,500/$6,500/$7,500/yr.)

10. Plus Expected Family Contribution (EFC)—Based on FAFSA responses and federal methodology

11. Equals “Out-of-Pocket” Amount—The check you must write--often indicating a “financial-need gap” (unmet need), which may have to be met by a Federal PLUS loan or private loans

12. Calculate “Loan-Debt”—For student and parent(s) Student (Stafford @ fixed 5.6%/yr.; max: $5,500+$6,500+$7,500+$7,500=$27,000; Perkins @ fixed 5%/yr.) Parent (PLUS @ fixed 7.9%/yr.; max: C of A – other aid) http://mvcap.blogspot.com/2009/11/16-how-much-will-college-cost-me.html