Can someone please walk me through how financial aid works in the USA

[lewelma]

Ok, lots of questions, I know. 😀

 

I thought you just filled in he FAFSA and the CSS and then colleges gave you money or not. Is there more to it that that?. If I make appointments with financial aid offices at the schools we will be touring, what other stuff would they be telling me?

 

Thanks

 

Ruth in NZ

[regentrude]

I thought you just filled in he FAFSA and the CSS and then colleges gave you money or not. Is there more to it that that?. 

 

That's basically the gist.

The college will send a financial aid offer where it lists how much coast of attendance is, how much they think the parents should pay, and the financial aid.

Fin aid comes in various forms: grant and scholarships from the college, and Federal aid: subsidized and unsubsidized Stafford loans, and Federal grants. Subsidized laons have no interest while student is in college, unsubsidized charge interest as soon as money is disbursed.

Some schools give merit scholarships. Many of the top schools don't, because everybody who gets in has high merit; but many of them give generous need based aid.

 

Oh, and work study is another form of Federal aid; these are publicly subsidized student jobs for low income students.

 

Here is a useful link: https://studentaid.ed.gov/sa/types

 

 

I don't actually know what to ask the fin aid office; I highly doubt they would calculate your fin aid on the spot

Edited July 14, 2017 by regentrude

[lewelma]

Being dual citizens but residents of NZ is going to make any calculation tricky, so I agree that they are not going to just give us the number on the spot. The calculators available on the websites don't seem to understand our situation, so DH are assuming the worst and making plans accordingly.  

 

So what is the timeline?  DH tried to fill in one of the forms and it seemed to be for this year rather than next year.  

 

And will we have all the financial aid offers in before ds has to make a choice on schools?  We hear April 1 and have to decide by May 1.  When do scholarships and financial aid info come in?

 

 

[regentrude]

Being dual citizens but residents of NZ is going to make any calculation tricky, so I agree that they are not going to just give us the number on the spot. The calculators available on the websites don't seem to understand our situation, so DH are assuming the worst and making plans accordingly.  

 

So what is the timeline?  DH tried to fill in one of the forms and it seemed to be for this year rather than next year.  

 

And will we have all the financial aid offers in before ds has to make a choice on schools?  We hear April 1 and have to decide by May 1.  When do scholarships and financial aid info come in?

 

You could discuss the dual citizen situation with the fin aid office. Make sure you get an expert in the matter and not just some assistant who can only handle standard situations.

 

Timeline: student applies. After the student has been accepted, school sends financial aid offer, usually early in April. (It does not come together with the acceptance letter.) You compare financial aid offers before deciding which school to attend.

Edited July 14, 2017 by regentrude

[8filltheheart]

FA is based on prior-prior.  So, your 2016 tax return will determine freshman FA for 2018-2019 school yr,  2017 for soph, etc.

 

Some schools send FA packages with acceptances.  Some send them later.  Some notify semi-finalists for scholarships early in the yr (some require Oct/early Nov applications) and require students to attend an interview on-campus event in the spring.

 

Basically, there is no single answer, but students do not have to accept any offers until May 1st and normally have all the necessary info by that time.

[lewelma]

OK. So dual citizen stuff.  Does this matter?  Or is that what I am asking?  DS is applying as a US citizen from NZ.  All of our earnings in NZ dollars must be reported to the IRS on a standard 1040 form, and converted to USA dollars on the day they were earned.  So I kind of assumed they would just use our 1040.  But perhaps they also consider the fact that ds lives in NZ, so we have added costs for travel and health insurance etc, and give us a better package for tuition?  I have no idea.  Perhaps the main question would be 'is there any additional material besides the fafsa and css that you need from overseas applicants?" If so, can't I just call?

[lewelma]

8, thanks for reminding me to check on applying early to schools he is looking for merit aid.  I had forgotten that some of their dates can be early. DS has finished his common app essay and SATs and subject tests, so he can apply early if need be.

 

My dh thought since the 2016 1040s are done that he could fill in the form now, but the form still seems to be set for this year's students.  Guess we just wait a bit.

 

 

[regentrude]

OK. So dual citizen stuff.  Does this matter?  Or is that what I am asking?  DS is applying as a US citizen from NZ.  All of our earnings in NZ dollars must be reported to the IRS on a standard 1040 form, and converted to USA dollars on the day they were earned.  So I kind of assumed they would just use our 1040.  But perhaps they also consider the fact that ds lives in NZ, so we have added costs for travel and health insurance etc, and give us a better package for tuition?  I have no idea.  Perhaps the main question would be 'is there any additional material besides the fafsa and css that you need from overseas applicants?" If so, can't I just call?

 

I think that's a good question. Sure, you can call.

 

I am not sure why the health insurance would be more. Most schools have a health insurance plan and require students to be on that plan unless parent plan has required level of coverage. That he is from NZ would be irrelevant for the cost of the school plan. Parents not having health insurance coverage does probably not give more fin aid; school won't have the info about insurance coverage until the fall, after fin aid is said and done.

 

Added travel cost, perhaps. Ask.

[lewelma]

I'd rather call than have a sit down when we are there as we have a ton of meetings set up with all sorts of people.  But if there was a reason to sit down with someone, then I would make some time.

 

Health insurance -- haha.  So hard to track the American's health care situation! :001_huh:  In NZ you just have health care because you are a citizen, so I was aware that we would have to buy it in the USA, but did not know that the american students would have to buy it too.  I assumed that they would be on the parents insurance or something.  

 

So would I get better info face to face than with a phone call?  Regardless, you are saying I need to make sure to ask for someone who deals with dual citizens who live overseas.  Can do.

[Julie of KY]

Ok, lots of questions, I know. 😀

 

I thought you just filled in he FAFSA and the CSS and then colleges gave you money or not. Is there more to it that that?. If I make appointments with financial aid offices at the schools we will be touring, what other stuff would they be telling me?

 

Thanks

 

Ruth in NZ

 

Basically your right in that you fill out your forms and wait to see what they offer.

 

If you make appointments with financial aid they might be able to give you a ballpark estimate if you can provide numbers. Most people that I know who set up appointments with financial aid go in with a list of questions that I can get answered off their website.

 

In general, I think you are well-informed and a basic financial aid session won't give you any more info. I'd call the financial aid offices and ask if it would be helpful for you to meet with them in person or over the phone.

 

FAFSA for 2018-19 schoolyear will open on October 1st.

[8filltheheart]

OK. So dual citizen stuff.  Does this matter?  Or is that what I am asking?  DS is applying as a US citizen from NZ.  All of our earnings in NZ dollars must be reported to the IRS on a standard 1040 form, and converted to USA dollars on the day they were earned.  So I kind of assumed they would just use our 1040.  But perhaps they also consider the fact that ds lives in NZ, so we have added costs for travel and health insurance etc, and give us a better package for tuition?  I have no idea.  Perhaps the main question would be 'is there any additional material besides the fafsa and css that you need from overseas applicants?" If so, can't I just call?

 

I would post your questions on College Confidential's FA forum.  My understanding is that unless you are low income you won't get a better deal for travel and health insurance.   I would put your income and assets in the NPC in terms of USD and see what it says.  I think the numbers should reflect what you can expect in terms of aid.  

 

FWIW, I think you will get knowledgeable answers on CC vs. guesses.

[8filltheheart]

dp 

 

Edited July 14, 2017 by 8FillTheHeart

[regentrude]

Health insurance -- haha.  So hard to track the American's health care situation! :001_huh:  In NZ you just have health care because you are a citizen, so I was aware that we would have to buy it in the USA, but did not know that the american students would have to buy it too.  I assumed that they would be on the parents insurance or something.  

 

 

Many American students are on their parents' insurance - IF the parent have insurance. However, the insurance may not cover care at the studnet's college location: it may only cover in state, or there may be no network providers in the college area.

Health insurance in the US is a disgraceful mess. Don't get me started.

 

 

So would I get better info face to face than with a phone call?  Regardless, you are saying I need to make sure to ask for someone who deals with dual citizens who live overseas.  Can do.

 

You can always call first and see if you get good info. In fact, I would rather email, because then you'd have a written record of what they want. It may also be easier forthe respondent to link information and forms, rather than telling you on the phone.

Then I woudl ask in person if I still ahd questions afterwards.

Edited July 14, 2017 by regentrude

[lewelma]

Ok, I'll try College Confidential, although I do find them scary over there!

 

I'll also call to get the appropriate person to e-mail. 

 

I'm on it!  Thanks guys!

[TravelingChris]

Does your New Zealand insurance cover you outside of New Zealand like if you travel in the US?  Does it only cover emergencies?  Colleges don't want to have students without insurance so they generally have an insurance plan available for the student's who don't have one with their parents.  I think most foreign students have to get one because most insurances don't cover other countries.

[Hoggirl]

You can always call first and see if you get good info. In fact, I would rather email, because then you'd have a written record of what they want. It may also be easier forthe respondent to link information and forms, rather than telling you on the phone.

Then I woudl ask in person if I still ahd questions afterwards.

I agree. I was planning to comment that I would e-mail. Gives you written documentation and allows for forwarding to someone who can hopefully provide correct answers. That seems more likely to occur (and less frustrating) than your phone call being bounced around while you are on hold.

[Crimson Wife]

Not all schools require the CSS. Some schools will require you to fill out a FAFSA before you can apply for merit-based scholarships even all you'll qualify for is loans that you plan to decline (my 2nd bachelor's program was like this).

 

Merit scholarships often require separate applications above and beyond what is required for admission to the overall program. Make sure you keep on top of those deadlines.

[lisabees]

Basically your right in that you fill out your forms and wait to see what they offer.

 

If you make appointments with financial aid they might be able to give you a ballpark estimate if you can provide numbers. Most people that I know who set up appointments with financial aid go in with a list of questions that I can get answered off their website.

 

In general, I think you are well-informed and a basic financial aid session won't give you any more info. I'd call the financial aid offices and ask if it would be helpful for you to meet with them in person or over the phone.

 

FAFSA for 2018-19 schoolyear will open on October 1st.

 

 

I would post your questions on College Confidential's FA forum.  My understanding is that unless you are low income you won't get a better deal for travel and health insurance.   I would put your income and assets in the NPC in terms of USD and see what it says.  I think the numbers should reflect what you can expect in terms of aid.  

 

FWIW, I think you will get knowledgeable answers on CC vs. guesses.

 

Usually financial aid depts are happy to answer questions; I haven't contacted them much, because usually the process is pretty cut and dry.  Fill out forms and wait (never heard of health insurance and travel costs being covered).  I have appealed to two schools with change in circumstances.  One gave a few thousand more; one gave nothing.   Remember that what they think you need has nothing to do with what you think you need.  And understand that each school usually covers a certain percentage of need.  Ivies cover 100% of need; others can be 85%-95%.  You can find that out online (your BFF - College Confidential).

 

I used to say that if your family make over $150,000 with basic assets, you ain't gettin' nothin.  Not sure if that is true anymore.  Does anyone use some basic parameters when trying to tell new college parents the reality of the situation?  Just curious what others say!

 

Oh and never believe what the FAFSA or a school's NPC churns out for you.  They can be off - way off - by thousands and thousands of dollars.

 

My advice is always to cast a wide net if you need financial aid or merit aid.  You will be surprised by what you get from some schools and what you don't get from others.

 

I haven't been following your posts, Ruth, so I am not sure if this has all been covered.  Be realistic.  Understand your bottom line and don't even bother looking at schools that aren't aren't going to meet it.  Otherwise, hearts will be broken.

 

Oh one more thing.  Many times colleges will not allow you to stack financial aid and merit aid.  Am I saying that right, experts out there? That's another factor to consider.

Edited July 21, 2017 by lisabees

[Lanny]

We will be in your shoes, 2 years down the road, so I am reading your thread with interest.  My understanding is that there are many more opportunities for Financial Aid for U.S. Citizens, so I probably would not apply as an International Student, although your DS is coming from New Zealand, and my DD will be coming from Colombia.

 

In our case, we have contacts in one university and received a "heads up", about what might be possible for DD,  one year ago, in a Skype Video call, with some people there.    If my DD decides on that university (depending upon her choice of Major, etc.), she will probably be able to work for the university, 20 hours a week.  

 

With regard to Scholarships in general, there was a thread, probably 2 or 3 months ago, that I wish I had "bookmarked", but I haven't bookmarked pages in my web browser for years.  I remember one knowledgeable person who replied in that thread was LoriD.   Possibly you can Search for the posts by LoriD and find that thread.

 

It seems, from what little I know now, that it is better to get the most Financial Aid you can from the university and not bother with smaller outside scholarships, which might eat into what you get from the university (they might deduct the amount from the outside source from their aid package) and also the aid from the university is more apt to be recurring, in contrast to an outside scholarship that may or may not be renewable.

 

One thing that your DS will bring to the university he goes to is  Diversity and that is something probably all of the schools he applies to will look at.  He is a U.S. Citizen, but grew up in New Zealand, which makes him a Diversity student.

 

Good luck on your trip to the USA and your tours of the various campuses and talks with the people you meet with while you are on campus!

[Lanny]

Many American students are on their parents' insurance - IF the parent have insurance. However, the insurance may not cover care at the studnet's college location: it may only cover in state, or there may be no network providers in the college area.

Health insurance in the US is a disgraceful mess. Don't get me started.

 

You can always call first and see if you get good info. In fact, I would rather email, because then you'd have a written record of what they want. It may also be easier forthe respondent to link information and forms, rather than telling you on the phone.

Then I woudl ask in person if I still ahd questions afterwards.

 

This.  I was going to suggest sending questions via Email, or, sending Free Faxes via FaxZero.com or GotFreeFax.com

 

AVOID ANYTHING VERBAL WHENEVER POSSIBLE. GET IT IN WRITING, IN BLACK & WHITE...

[Lanny]

I think I am correct, about not applying as an International Student, but not at all sure about this, because I believe applying as an International Student involves jumping through more hoops: Explaining that you do not need a Student Visa for the USA, explaining that U.S. English is your Native language (if that is the case for your DS), so he does not need to take the English language proficiency examinations, etc.  My belief, at this time, is that the International Admissions people handling a U.S. Citizen would make it a harder process and possibly less Financial Aid would be available to the student. Not at all sure about this, as I write this, but this is something for the OP and me to look into for our DC...  Possibly it is better to apply as an International Student, even if one is a U.S. Citizen?   What are the pros and cons?

[JanetC]

For merit aid, verify that the school offers it and in what amount with admissions, not financial aid. Merit aid is a recruitment thing so it usually falls under admissions.

 

Start your forms promptly in October. It's easier to get questions answered when they are not busy.

 

@Lanny - it is almost never better to apply as international if you are a US citizen. Generally speaking, admissions are tougher and financial aid is worse.

[Lanny]

@JanetC Thanks for confirming what I thought was the case for a U.S. Citizen who lives overseas!

 

Sent from my SM-G355M using Tapatalk

[GoodGrief]

If Princeton is on his list, they have their own financial aid form. This is filed in addition to FAFSA, but they do not use the CSS.

[Hoggirl]

Some (even elite) schools are need-blind for US citizens, but need-aware for internationals.