Sample Book June 2020

COLLEGE FUNDING PLANNING REPORT TABLE OF CONTENTS I. COLLEGE TRACKING LIST & CALENDAR II. STUDENT POSITIONING MATERIALS III. ELIGIBLE FOR FINANCIAL AID? IV. APPLYING FOR AID V. FEDERAL & STATE FINANCIAL AID PROGRAMS VI. TAXPAYER RELIEF ACT OF 1997 VII. FAMILY CONTRIBUTION ANALYSIS VIII. PARENT STATEMENT OF INCOME AND ASSETS IX. STUDENT STATEMENT OF INCOME AND ASSETS X. FAMILY CONTRIBUTION ANALYSIS (EFC) XI. COLLEGE COST AND AID INFORMATION XII. APPENDICES A-D Appendix A – SAT/ACT Information Appendix B – Scholarship Searches Appendix C – Admissions Overview Appendix D – Glossary

COLLEGE CALENDAR This chapter presents a calendar of activities that all high school students should follow, at a minimum. Use it as a starting point for your family. FRESHMAN & SOPHOMORE PLAN Freshman Plan  Develop a recommended class schedule of college preparatory courses according to your planned college major. Contact your guidance counselor for assistance.  Once enrolled in these courses, remember that your first few years of high school heavily influence mathematically where you will graduate in your class. Please try your best to earn top scores. View this as a challenge, not a mandate. Develop interests, explore and do your best in class.  Establish strong study habits and commit to a consistent study routine. Form social groups centered around study.  Work on effective time management techniques. Learn to budget time and resources.  Become involved in a community service project if you feel led to do so. You may feel led to do “pro-bono” work at a local business that specializes in an area that may one day be a major in college and career afterwards.  Work to enhance your vocabulary skills and your writing abilities.  Learn to use the library effectively, including computer research. Learn to use the web to conduct research, and learn proper documentation of research.  Investigate possible extracurricular activities for your Resume of Outstanding Achievement.  Begin to plan for your sophomore class schedule. Sophomore Plan  Continue to keep your grades up.  Continue to be involved in a community service project or other activities noted above.  Sign up for extracurricular activities – stretch yourself-learn to accept leadership and administrative responsibility.  Take the PSAT for the first time.  Plan your junior class schedule.  Begin to look for a summer job to help pay for college.  Improve your reading skills over the summer – include newspapers and magazines.

JUNIOR YEAR PLAN September through December  Review your cumulative grade point average. Stretch yourself-if not already taking demanding college-prep courses (ie. AP, IB, or community college dual credits) please consider the merits of doing so. College becomes much easier to conquer (especially in competitive environments) when you’ve already seen the material once. You might even end up with a higher class rank or college credits.  Take the PSAT for the second time. The junior year PSAT is considered for the National Merit Scholarship competition. This is usually a student’s first shot at a merit scholarship.  Continue to be involved in a community service project, or other meaningful extracurricular activity. How much time do you spend in this activity? Make sure that you can quantify the interest that you have in this activity.  Attend a Local College Fair.  Review the Career Search Navigator.  Discuss possible career interests with parents.  Register the ACT/SAT Achievement Tests.  Review the ACT/SAT Test Prep Navigator.  Take the ACT/SAT Achievement Tests.  Write for catalogs and admissions/financial aid information. January through May  Review your Financial Aid Planning to initiate timely strategies.  Review the College Selection Navigator.  Develop a list of colleges and begin your college selection process.  Review the College Visitation Navigator.  Plan and execute your college visits. Request interviews with admissions officers, professors, and students at a minimum. Consider staying overnight if offered this opportunity. Tour the campus and surrounding town.  Begin your career interest analysis, research and expert interviews.

SENIOR YEAR PLAN November through December  Apply for admissions to at least six colleges to increase your admissions and financial aid opportunities.  Complete admissions paperwork or web applications  Complete essays  Send official transcripts  Release SAT/ACT test results  Complete resume, if required  Complete admissions or alumni interviews if required or offered.  Schedule and complete auditions if necessary for your major.  Complete and submit portfolios if necessary for your major.  Send/submit applications prior to due date. Call the admissions office 2 weeks after submission to ensure that all required admissions material has been received, and that the application is complete.  Review your financial situation with your college advisor to ensure all appropriate asset and income strategies have been implemented.  Demonstrate interest in the colleges to which you’ve applied. FOLLOW UP! Interview! Call, email, etc. Ask about special programs, etc. Establish good communications with assistant-directors of admission – level personnel at the admissions office.  Write Thank You notes to your recommenders. January through May  Review the Student Aid Report (SAR) and make note of your EFC.  If the SAR is incorrect, return to Processor with corrections.  If the SAR is correct, hold for your records, as no further action is required.  Send the Verification and IRS forms to each college requesting verification.  Review all financial aid packages sent from the colleges.  Consider whether you should appeal or negotiate for a better financial aid package.  If a housing deposit is NOT mandatory, request an extension until final decision is made.  If a housing deposit is mandatory, be sure to send in a request for a refund within the deadline.  Review final financial aid award offers and make your final decision.  Send in the signed financial aid award offer to your final college choice.  Send in the deposit and have your high school administrator send your final grade transcript to your final college choice.  Send in all pertinent loan applications to your final college choice.

III. Is Your Student Eligible for Financial Aid? Eligibility for most of the Federal Student Aid Programs is based on financial need. However, in addition to demonstrating financial need, the Federal Student Aid Programs require that a student recipient: • Be a U.S. citizen or eligible non-citizen. • Have a valid Social Security Number. • Register with the selective service, if your child is male. • Have a high school diploma or a General Education Development (GED) Certificate or pass an exam approved by the US Department of Education. • Be enrolled or accepted for enrollment as a regular student working toward a degree or certificate in an eligible program at a school that participates in the federal student aid programs. • Not have a drug conviction or an offense that occurred while you were receiving federal student aid (such as grants, loans, or work-study) • Must not owe a refund on a federal grant or be in default on a federal student loan. • Must demonstrate financial need (except for unsubsidized Stafford Loans). In order to qualify for Federal Financial Aid the above criteria must be met. The college of your choice may have other specific requirements for determining eligibility for institutional aid. Be sure to ask the financial aid officer at each school about any additional requirements. What is Federal Student Aid? Federal student aid is financial assistance through the U.S. Department of Education available to eligible students enrolled in eligible programs as regular student at schools participating in our federal student aid programs. Federal student aid covers school expenses such as tuition and fees, room and board, books and supplies and transportation. This aid can also help you pay for a computer and dependent child-care expenses. What is Financial Need? The Higher Education Act of 1965, which is the law that governs student aid, states that it is the parents’ responsibility to educate their children beyond the 12th grade. However, the law also states that if a family can demonstrate “need” the government will assist in paying for the child’s education. The term “need” is not to be confused with “needy”. Many people think they have to be “needy” in order to qualify for federal, state and college financial aid. It is very important that you know the basic formula for demonstrating “need” and understand how the formula affects you. It is the central framework for determining how much need-based aid you receive at a given college. NEED = COST OF ATTENDANCE - FAMILY CONTRIBUTION Cost of Attendance (COA) The financial aid administrator at each college develops an average Cost of Attendance for different categories of students. Some programs of study may have lab fees or higher charges for books and supplies than other programs. Students living off-campus may have higher costs for room and board and transportation expenses compared with students living on campus. Students commuting to school will have a lower cost.

For Federal Student Aid Programs, the financial aid administrator must use the definition of Cost of Attendance given in the financial aid law. The law specifies that the Cost of Attendance must include tuition and fees plus an allowance for living expenses such as room and board, books, supplies and transportation costs. The law also provides limited allowances for computer expenses, dependent care and expenses for handicapped students. COA = TUITION / FEES + ROOM/BOARD + BOOKS + TRANSPORTATION + MISC. EXPENSES Bear in mind, the Cost of Attendance can vary for each student at the same school. Students in the same situation, however, must have the same Cost of Attendance. The costs will vary from school to school, but the EFC remains constant. Thus, financial need will vary from school to school. Family Contribution The next part of the formula is the Family Contribution. It is determined by using the need analysis methodology prescribed by law for calculating a student’s Expected Family Contribution (EFC). The Family Contribution is the amount you will be expected to contribute toward your child’s educational expenses during the academic year. It must be recalculated every year. The Free Application for Federal Student Aid (FAFSA) is used to gather the personal and financial information necessary to calculate your Expected Family Contribution. For dependent students, your family contribution is the sum of four separate calculations: the contribution from parent income, the contribution from parent assets, the contribution from student income and the contribution from student assets. Working with a professional who understands how Family Contribution is calculated is the key to lowering your out-of-pocket costs. Need Your eligibility for aid depends on your Expected Family Contribution (EFC), your year in school, your enrollment status and the cost of attendance at the school you will be attending. Your school’s financial aid office will tell you how much you can receive. A college is not obligated to cover a student’s financial need. Due to insufficient resources, there are a growing number of colleges that cover only a portion of each student’s demonstrated need. For example, at a school that provides 70% of need, a student who demonstrates 15,000 in need may only receive $10,500 in financial aid. It is vital that you learn how the financial aid process works and how to improve your situation by applying to colleges where you will be offered the most aid. A student’s academic stats (GPA and standardized test scores) will have a significant impact on how much institutional aid (scholarships/grants) a student will be awarded. True Budget TRUE BUDGET = EFC + UNMET NEED

IV. Applying For Aid Since a family's financial situation can change from year to year, financial aid must be applied for annually. To be considered for aid, you should contact the financial aid office of the college you plan to attend as early as the fall term prior to the year you want to receive aid. High school students should contact financial aid offices by the time they begin their senior year in high school. General Rules You should always keep copies of all forms you submit as part of the financial aid process. This will make it easy for you to resubmit the required information if a form is lost. You should keep in touch with the financial aid office where you are applying for aid. It is better to call a school a few times too often rather than to not call at all and miss their deadline. Also, monitor college websites regularly for financial aid information, deadlines and updates. The Process • There are about 300 colleges/universities which require The Profile. This is the first financial aid form that will be submitted. Profile deadlines will vary depending on the specific college/university. It is critical for you to respond in a timely manner to our requests for additional information in order for deadlines to be met. • The federal application (FAFSA) cannot be filed before October 1 of the student’s senior year. Your FAFSA will be filed with income estimates, and then updated after you have filed your tax return. • Once an analysis of your financial information is completed by a FAFSA processor, the information will be made available to the colleges you have selected in the form of a Student Aid Report (SAR). This analysis usually takes 3-5 days. • After the college reviews your SAR, the Financial Aid Office will compile a preliminary financial aid package. This information will usually be placed in your online file with the specific school which can be accessed using the student ID number provided in your acceptance letter. • Complete your tax returns early (by end of February if possible)! Mail or fax your completed tax return to your Service Center Consultant so they can make the necessary updates to your FAFSA. (Send the first two pages of your 1040, W-2’s, Schedule A, Schedule C(s), and Schedule E(s).) • Send financial aid award letters to your Service Center Consultant for evaluation. If an appeal is appropriate, we will write the appeal letter and email it to you for your approval, signature and mailing. • Appeals can be submitted for under awarding, extenuating financial circumstances and also for award matching for truly competing schools. ������ If accepting an aid offer you must sign the award letter, return it to the college and keep a copy. If declining an offer, let the school know immediately so the financial aid can be offered to other applicants. Awards may be revised once the college(s) receives updated tax information. Awards can also be revised once the appeals process is finalized. • The school may require additional forms in order to process your request for financial aid. Be sure to check the student’s online file on a regular basis for preliminary financial aid awards and requests for additional information. If a file is marked incomplete due to non-receipt of requested information, a preliminary financial aid award will be delayed. • If your family’s financial situation changes during the year and additional financial aid is needed, inform your College Funding Advisor and your Service Center Consultant as soon as possible. You will need to provide the school with documentation regarding your change in circumstances in order to request additional aid. If the college has funds available they may be able to provide additional financial assistance.

V. Federal and State Financial Aid Programs Federal Pell Grant A Federal Pell Grant, unlike a loan, does not have to be repaid. Pell Grants are awarded to undergraduate students who have not earned a bachelor’s or a professional degree. Pell Grants are considered a foundation of federal financial aid. It is a need-based grant ranging up to $5,550 for the 2020-2021 school year. Eligibility will be determined by the Expected Family Contribution determined by the FAFSA. If the student’s Family Contribution exceeds $5,550 in 2020-2021, the student will not receive a Federal Pell Grant award. The Federal Pell Grant is an entitlement, and therefore, everyone who qualifies will receive the grant. The amount you get will depend not only on your financial need, but also on the costs to attend school, your status as a full-time or part-time student, and your plans to attend school for a full academic year or less. Your school can apply Pell Grant funds to your schools costs, pay you directly or combine these methods. Academic Competitiveness Grant (ACG) The Academic Competitiveness Grant (ACG) is an award in addition to the student’s Pell Grant award. This grant builds upon the Pell Grant program to provide an additional $750 for first year students and $1300 for second year students. A student must first qualify for the Pell Grant and also successfully complete a rigorous high school program as determined by the state or local education agency and recognized by the Secretary of Education. Second year students must maintain a cumulative grade point average of at least 3.0. The academic requirement questions that determine qualification appear on the 2020-2021 FAFSA. The amount of the AC Grant when combined with a Pell Grant may not exceed the student’s cost of attendance. Federal Supplemental Education Opportunity Grant (SEOG) The Federal Supplemental Education Opportunity Grant program is for undergraduates with exceptional financial need as determined by the school. Students may receive between $100 and $4000 a year. There is no aggregate limit on the amount of FSEOG that can be received. Pell Grant recipients with the lowest expected family contributions will be considered first for a FSEOG. Institutional Grants Colleges provide institutional grants to help make up the difference between college costs and what a family can be expected to contribute through income, savings, loans, and student earnings. Other institutional grants, known as merit awards or merit scholarships are awarded on the basis of academic achievement. Merit awards may be based on financial need; others are awarded strictly on academic achievement without regard to family finances. For graduate students, there is a Need Access financial aid application offered by Access Group that gathers information from students to determine their eligibility for institutional financial aid. Check the Need Access list of participating schools and programs at https://lending.accessgroup.org/ or ask your financial aid administrator to confirm your school’s participation in this service. Federal Work-Study (FWS) Federal Work-Study provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses. The program encourages community service work and work related to the recipient’s course of study. Wages for the program must equal at least the current federal minimum wage but might be higher depending on type of work and skills required. The amount you earn can’t exceed your total FWS award. Your school must pay your directly and at least monthly.

If you work on campus, you will usually work for your school. If you work off campus, your employer will usually be a private nonprofit organization or a public agency, and the work performed must be in the public interest. Your school might have agreements with private for- profit employers for Federal Work-Study jobs. This type of job must be relevant to your course of study. Federal Perkins Loan A Federal Perkins Loan is a low interest (5%) loan for undergraduate and graduate students with exceptional need. The amount students may borrow depends on need and the institution they attend. At institutions with low default rates (below 15%) and approval of the Secretary of Education, students may borrow more than at other institutions. Lender is the school. Awarding for undergraduates is up to $5,500 annually with a $27,500 maximum; for graduate students, up to $8,000 annually with a $60,000 maximum. The Federal government pays the interest on the loan while students have at least half-time status and for nine months after graduation or nine months after dropping below half-time status. If students enter their grace period and then re-enter school before the grace period expires, they receive a new complete grace period when they again enter less than half time status. Students have up to ten years to repay the loan. Federal Subsidized Stafford Loan This is a low interest loan available to students attending accredited schools at least half-time. The federal government pays the interest on the loan until the loan enters its repayment phase. Federal Stafford Loans are made by the US Department of Education by way of the individual colleges. The Federal Stafford Loan is an entitlement and therefore anyone and everyone who qualifies will receive it. The current rate for the Stafford Loans (after 7/1/2020) is 2.75%. REPAYMENT OPTIONS: Students have a six-month grace period after graduation or after dropping below half-time status to begin repayment of the loan. The Federal Stafford Loan provides graduated, extended and income sensitive repayment options up to 25 years that the borrowers have to be offered six months prior to the beginning of repayment. The borrower may prepay all or part of a loan at anytime without penalty. The Federal Stafford Loan limit for first year students is $5,500 (Only $3,500 may be subsidized) and second year students will receive $6,500 (Only $4,500 may be subsidized. Third and fourth year students will receive $7,500 (Only $5,500 may be subsidized). Independent first-year students can receive up to $9,500; however, only $3,500 may be subsidized. Second year independent students can receive up to $10,500 with only $4,500 subsidized. Third and fourth year independent students can receive up to $12,500 with only $5,500 subsidized. Graduate students can borrow up to $20,500 annually but amount subsidized is limited to $8,500.

Federal Unsubsidized Stafford Loan A Federal Stafford Loan is “unsubsidized” when the student is responsible for the interest that accumulates while enrolled in school. The Unsubsidized Federal Stafford Loan has the same loan limits as the need-based Subsidized Federal Stafford Loans but the interest is not paid by the government while borrowers are in college. The current interest rate on unsubsidized Stafford Loans is 2.75%.You will pay a fee of up to 3 percent of the loan, deducted proportionately from each loan disbursement. Because of this deduction, you will receive slightly less than the amount you are borrowing. A student may receive an Unsubsidized Federal Stafford Loan even if he or she does not demonstrate financial need. The unsubsidized loan cannot exceed the student’s Cost of Attendance minus other aid. Thus, the Unsubsidized Federal Stafford Loan is essentially allowed to cover a student’s Expected Family Contribution and Unmet Need. It is possible for a student to qualify for a combination of subsidized and unsubsidized loans. In this case, the maximum loan amount applies to the total of the two loans. For example, a first year student receiving a $1,500 need-based Federal Stafford Loan could also receive a $2,000 unsubsidized loan. Interest can be paid while you are in school or capitalized (added to your principal loan balance, thus increasing the amount you will repay). Federal Unsubsidized Parent Plus Loans Parents of dependent students and students pursuing a graduate or professional degree can borrow from the PLUS Loan program. The terms and conditions applicable to parent PLUS Loans include a requirement that the applicant not have any adverse credit history, a repayment period that begins on the date of the last disbursement of the loan and a fixed rate of 5.3% for Direct PLUS Loans. Eligible graduate and professional degree students may borrow under the PLUS program up to their cost of attendance minus other financial aid received. Applicants must be United States citizens or eligible noncitizens, not be in default on a federal student loan and not owe a refund on a federal education grant.

CALIFORNIA STATE FINANCIAL AID TYPES OF AID Cal Grant A Cal Grant B Cal Grant C Cal Grant B California residents California residents WHO MAY APPLY California residents All full and half-time All full and half-time All full and half-time undergraduate students undergraduate students undergraduate students in in a degree program. in a degree program. a degree program. 3.0 GPA 2.0 GPA 2.0 GPA HOW TO Cannot have completed a Cannot have completed a Cannot have completed a APPLY prior baccalaureate prior baccalaureate prior baccalaureate degree. degree. degree. File the Free Application for Federal Student Aid File the Free Application File the Free Application or Renewal FAFSA. Send for Federal Student Aid for Federal Student Aid or GPA Verification to or Renewal FAFSA. Send Renewal FAFSA. Send CSAC (new grant GPA Verification to CSAC GPA Verification to applicants only). (new grant applicants CSAC (new grant only). applicants only) AWARD Awards are tuition/fee Awards provide low- Awards up to $576 for RANGES only grants. In 2009- income students with a tools, books and 2010, awards are living allowance and equipment. You may also HOW approximately $9,708 for assistance with tuition receive up to an additional AWARDS independent colleges and and fees. Most first-year $2,592 for tuition at a ARE universities, $10,302 at students receive an school other than a DETERMINED the UC schools and allowance of up to California Community $4,026 at CSU schools. $1,551 for books and College. To qualify, you living expenses. After the must enroll in a vocational Cal Grant A is based on freshman year, Cal Grant program that is at least financial need and GPA. B also helps pay tuition four months long at a and fees in the same California Community amount as Cal Grant A. College, private college, or For a Cal Grant B, your a vocational school. coursework must be for Funding is available for up at least one academic to two years, depending on year. the length of your program. Cal Grant B is based on financial need (low Cal Grant C is based on income financial need. A student disadvantaged must be enrolled in a background) vocational program for at and GPA. least four months.

TYPES OF AID Cal Grant A Cal Grant B Cal Grant C Cal Grant B ELIGIBILITY Income Income Income PRIORITY Dependent students and Dependent students and Dependent students and FILING independent students independent students independent students DEADLINE with dependents other with dependents other with dependents other than a spouse. than a spouse. than a spouse. Family Size Family Size Family Size Six or more Six or more Five $90,300 Six or more $49,600 Five $90,300 Four $83,800 Four $83,800 Three $78,100 Five $46,000 Three $78,100 Two $71,900 Two $71,900 $70,200 Four $41,100 $70,200 Three $36,900 Two $32,800 Independent students Independent students Independent students Single, no dependents: Single, no dependents: Single, no dependents: $29,400 $29,400 $29,400 Married, no other Married, no other Married, no other children: children: children: $33,600 $33,600 $33,600 Assets Assets Assets Dependent Students: Dependent Students: Dependent Students: $60,500 $60,500 $60,500 Independent Students: Independent Students: Independent Students: $28,800 $28,800 $28,800 FAFSA/GPA FAFSA/GPA FAFSA/GPA Verification must be Verification must be Verification must be filed by March 2 (prior filed by March 2 (prior filed by March 2 (prior to the academic year). to the academic year). to the academic year). CALIFORNIA RESIDENCY Any student who has not been a legal California resident for one year and one day prior to beginning of the term shall be considered an out-of-state resident and will be subject to out- of-state tuition in addition to the enrollment fee of $11.00 per unit. In order to receive State grants such as EOPS, Cal Grant, and Board of Governor's Grant, students must be declared California residents (see paragraph above). Students must also be U.S. Citizens or eligible non-citizens. This means that student must have his/her green card or I-94 form. In order for parents to qualify for parent plus loans, parent must have his/her green card or I-94 form. In addition, if parents live in another state or country, residency is decided by the parents residency for students under the age of 18. Residency is decided by the students residency when students are 18 years of age and old. In order to qualify for the Cal Grant, students must be California residents. If parents are not residents of California, student must be 18 years of age by the time he/she submits the FAFSA and Cal Grant GPA Verification in order to qualify for state funding.

CALIFORNIA STUDENT AID COMMISSION FOR NEW CAL GRANT APPLICANTS and RENEWING CAL GRANT RECIPIENTS 2020-21 CAL GRANT PROGRAM INCOME CEILINGS Cal Grant Cal Grant A and C B Dependent students and Independent students with dependents other than a spouse Family size: Six or more $123,100 $67,600 Five $114,100 $62,600 Four $106,500 $56,000 Three $98,000 $50,300 Two $95,700 $44,700 Independent students Single, no dependents $39,000 $39,000 $44,700 Married, no other dependents $44,700 2020-21 CAL GRANT PROGRAM ASSET CEILINGS Dependent students 1 $82,400 Independent students $39,200 1 This ceiling also applies to independent students with dependents other than a spouse. NOTE: Per California Education Code section 69432.7(k), the Cal Grant program income and asset ceilings for new applicants and renewing recipients are to be adjusted annually using the change in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIII B of the California Constitution: SEC. 8. (e) (1) “Change in the cost of living” for the State, a school district, or a community college district means the percentage change in California per capita personal income from the preceding year. 08/01/2019

VI. Overview of the Seven Educational Tax Breaks Under the 1997 Tax Law The Taxpayer Relief Act of 1997 introduced four new education related programs. The act created the Education IRA (replaced by the Coverdell Savings Account (ESA), the Hope Scholarship tax credit, the Lifetime Learning tax credit and a deduction for interest on qualified education loans. Each program has a large number of rules and guidelines, many of which conflict and cause problems with receiving the tax benefit from the others. Following is a brief overview of each program. Coverdell Education Savings Account (ESA) The Coverdell Education Savings Account (ESA) is a vehicle which parents can use to save money for a child's education. Although the ESA sounds as if it will reduce the overall cost of sending a student to college, for many families it will greatly increase the amount they pay for college. Unlike other IRAs, the ESA will be considered a student asset on financial aid applications. Also, any distributions from the ESA will count as income for the student on financial aid forms. This will greatly increase the amount your family will be expected to pay. Families can contribute up to $2000 a year per student under the age of 18 to a Coverdell Education Savings Account (ESA). Contributions are not tax deductible but withdrawals and earnings are tax-free as long as the money goes toward college expenses. The funds must be used by the time the student turns 30; otherwise, the account owner will receive a 10% penalty and must pay taxes on the earnings. Modified adjusted gross income must be less than $110,000 ($220,000 if filing a joint return) in order to qualify. Hope Scholarship Tax Credit The Hope Scholarship tax credit applies to qualified higher education expenses paid after December 31, 1997. The exact amount of the Hope credit depends on a family's income, the amount of qualified tuition and fees paid, and the amount of certain scholarships and allowances subtracted from tuition. The total credit is also based on how many eligible dependents are in the family, rather than a maximum dollar amount for the family as with the Lifetime Learning tax credit. 1. The credit is equal to 100% of the first $2,500 of qualified higher education expenses and 50% of the second $2,500 of qualified higher education expenses. 2. The credit is only limited for the first four years of post-secondary education. 3. The student must be enrolled at least half-time for at least one semester that begins during the tax year. 4. A family may claim multiple Hope Scholarships in the same year if the family has multiple students who meet the guidelines. 5. Taxpayers cannot claim a Hope credit if their Modified Adjusted Gross Income (MAGI) is $90,000 or more for a single taxpayer, or $180,000 or more for married taxpayers filing a joint return.

Lifetime Learning Tax Credit The Lifetime Learning Credit applies to qualified higher education expenses paid after June 30, 1998. The actual amount of the credit depends on a family's income, the amount of qualified tuition and fees paid, and the amount of certain scholarships and allowances subtracted from tuition. This credit is family-based rather than based on the number of dependents in a family as with the Hope credit. 1. The Lifetime Learning Credit is currently equal to 20% of the first $10,000 of qualified higher education expenses paid by the taxpayer for all eligible students. The maximum credit is $2000. 2. The credit is available for all years of postsecondary education and for courses to acquire or improve job skills. 3. One student cannot be used as the basis for claiming both Lifetime and Hope Credit in the same year. 4. Students do not need to be half-time to qualify for credit. Students could be working toward degree, or acquiring or improving job skills at the institution. 5. You cannot claim a Lifetime Learning credit if your Modified Adjusted Gross Income (MAGI) is $60,000 or more (if single), or $120,000 or more (for married taxpayers filing a joint return). Deduction for Interest on Student Loans The Taxpayer Relief Act of 1997 restored a deduction for interest paid on qualified education loans. This is a special deduction allowed for paying interest on a student loan used for higher education. The deduction is equal to the interest paid during the tax year on any qualified education loan up to an annual maximum. The deduction applies to interest paid after December 31, 1997. Currently, the most you can deduct is $2500 in interest. The deduction is phased out when your Modified Adjusted Income reaches $70,000 - ($145,000 for married filing jointly). Penalty-Free IRA Withdrawals Parents can now take penalty-free distributions from IRA’s (Individual Retirement Accounts) to cover education related expenses without having to pay the 10% additional tax. You may owe income tax on part of the amount distributed, but you may not have to pay the 10% additional tax. The part not subject to the additional tax is generally the amount of the distribution that is not more than the adjusted qualified education expenses for the year. Qualified higher education expenses include tuition, fees, books, supplies and equipment, as well as room and board if the student is enrolled at least half time in a degree program. They also include special needs services incurred by special needs students. Qualified Tuition Programs (QTP) or 529 Plans States may establish and maintain programs that allow you to either prepay or contribute to an account for paying a student's qualified education expenses. Eligible educational institutions may establish and maintain programs that allow you to prepay a student's qualified education expenses. If you prepay tuition, the student (designated beneficiary) will be entitled to a waiver or a payment of qualified education expenses. You cannot deduct either payments or contributions to a QTP. Qualified education expenses include tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. They also include the reasonable costs of room and board for a designated beneficiary who is at least a half-time student.

VII. Understanding Your Family Contribution Analysis 1) Where do I find my EFC (Expected Family Contribution)? On the Family Contribution Analysis page, which is included later in this booklet, your EFC has been calculated using the Federal Methodology (FAFSA schools) and the Institutional Methodology (Profile schools). There are three columns of numbers listed: Initial, Calculated and Change. The first column shows your Initial EFC if you completed all the forms accurately and on time using the information you provided us. The second column shows your Calculated EFC. If the Calculated EFC is lower than your Initial EFC, your College Funding Advisor will discuss your options for reaching this Calculated EFC figure. 2) How do I determine whether a school is a FAFSA or Profile college? On the first page of each enclosed College Report there is a place for a FAFSA Code and Profile Code. All schools will list a FAFSA Code. If an ‘N/A’ is listed next to ‘Profile Code’ then that school is not a Profile school. If there is a number next to ‘Profile Code’ then that school is a Profile school. 3) What is included in the Cost of Attendance? Cost of attendance includes tuition, books, room and board, transportation and other fees and miscellaneous expenses. 4) Where do I find the financial aid breakdown for my specific circumstances? This information can be found on the second page of each College Report. Under the appropriate section (FAFSA or Profile) you will see your Estimated Family Contribution and your Financial Need using the Calculated EFC number. The left column shows in-state school figures, while the right column shows out-of-state data. 5) How do I determine my Estimated Aid Award for each college? This information is also found on the second page of each College Report. The Average Percentage of Need Met, Percent of Grants and Scholarships, and Percent of Loans and Work-Study are listed for each school, (unless this information has not been published). This data is based on the school’s historical statistics for awarding financial aid. Make sure you are using the appropriate section for each college (FAFSA or Profile). If these percentages are greater than zero then the next five lines will show Estimated Need Met, Estimated Unmet Need, EFC+Estimated Unmet Need, Estimated Scholarships & Grants, and Estimated Loans & Work-Study. The EFC+Estimated Unmet Need figure is your Estimated out-of-pocket cost per year based on your current financial data. Parent Plus Loans or private student Signature Loans are available to cover these costs as long as student/parent passes a credit check. Remember, these are estimated numbers based on the financial information we currently have in our data base for your family. Refer to the Statement(s) of Income and Assets to review the financial data used for this report. Also, schools have the final say as to the amount of financial aid they offer a student. This amount will vary based on the academic desirability of a given student plus a variety of additional factors. That is why it is vitally important that the student is applying to colleges where he/she is in the top 25% of incoming students.

APPENDIX A SAT/ACT INFORMATION Check with your high school counselor or the schools you are interested in attending to find out what test or tests they require. Prep courses in preparation for standardized tests are highly recommended. SAT: The SAT is one of two standardized tests used by colleges as part of their admissions criteria. The SAT I is a three-hour exam that measures verbal, math reasoning and writing skills. Scores on each section range from 200-800 points. The SAT II consists of more than 20 subject areas designed to measure subject-related knowledge. Science and Math II carry additional weight with most colleges/universities. Additional information can be obtained from the SAT web site at www.sat.org. Contact your high school counselor for test dates, locations, and study guides. Register for the SAT at www.collegeboard.com. ACT: This standardized test is designed to assess high school students' general educational development and their ability to complete college-level work. It is often used for college admission decisions, and virtually all U.S. colleges and universities accept ACT results as long as testing includes the optional writing requirement. The ACT consists of four multiple-choice tests in English, Mathematics, Reading, and Science, as well as an optional writing test. Scores for each test are averaged to create a composite score. A perfect score on the ACT is 36. Contact your high school counselor for test dates, locations, and study materials to familiarize yourself with test content and questions, or call the ACT information line at (319) 337-1000. Additional information can also be obtained at www.actstudent.org. ANY STUDENT CAN MAXIMIZE THEIR ACT/SAT SCORES USING PROPER TEST PREPARATION METHODS AND GUIDANCE. 1) There are six essential steps your child can take to properly prepare for both the ACT and SAT tests. Following is a list of ways to improve your SAT/ACT test scores: A. Get a real ACT/SAT test from your high school guidance office and become familiar with the test and the procedures. B. Take the practice ACT/SAT test using official timing procedures to achieve an accurate result. C. Diagnose your weakest skills. • Pinpoint problem areas • analyze weakest areas of knowledge. D. Review your weak math skills. • complete additional problems in your weak math areas E. Review your weak verbal skills. • complete additional problems in your weak verbal areas F. Review weak writing skills on essay. • review sample essays and scoring assigned to samples G. Rework the wrong answers on your original sample test. • recognize the original errors and understand why they were made • remedy the errors with improved skills

2) Following these practice steps, prepare to take both the ACT and SAT tests no more than twice – once as a high school junior, and again as a high school senior. This will ensure you earn the highest possible score. Some schools have chosen to average scores if test is taken more than twice. NOTE: Many schools will take the highest score for each section; however, the California UC’s are now taking the highest test score at an individual sitting. Some schools have now chosen to average scores for tests taken more than two times. University of California schools take the highest score in one sitting. 3) Few high schools provide advance ACT/SAT preparation classes. The alternative is to hire a private test preparation company or purchase a prep course. The INTERNET also provides access to many ACT/SAT test prep services. ➢ E-Prep Online Course for the SAT and ACT-Contact your College Funding Rep ➢ Princeton Review: www.review.com/college/ ➢ WebWare for the SAT: www.testprep.com ➢ Kaplan’s Test Prep: http://www.kaptest.com/ ➢ ACT’s Web Site: www.act.org PSAT The PSAT (Preliminary SAT) is a two-part, exam that is very similar to the SAT. The PSAT consists of two 25-minute verbal sections, two 25-minute math sections, and one 30- minute writing skills section. Most people take the PSAT in the fall of their junior year in high school. Some students choose to take it during their sophomore year. Scores on the PSAT are used to determine National Merit Scholars, students who qualify for merit-based scholarships distributed throughout the United States. Talk to your high school counselor for more information.

2020-2021 SAT Test Registration Deadlines Test Date Normal Late Late Registration Registration Registration/Changes Aug 29, 2020 Jul 31, 2020 (via Mail) (online/phone) Sept 26, 2020 Aug 26, 2020 Aug 18, 2020 Oct 3, 2020 Sep 4, 2020 Aug 11 2020 Sept 15, 2020 Nov 7, 2020 Oct 7, 2020 Sept 15, 2020 Sept 22, 2020 Dec 5, 2020 Nov 5, 2020 Sep 22, 2020 Oct 27, 2020 Mar 13, 2021 Feb 12, 2021 Oct 20, 2020 Nov 24, 2020 May 8, 2021 Apr 8, 2021 Nov 17, 2020 Mar 2, 2021 Jun 5, 2021 May 6, 2021 Feb 23, 2021 Apr 27, 2021 Apr 20, 2021 May 26, 2021 May 18, 2021 Subject Test Dates These dates are posted on the College Board website, but they’re still subject to change! Note that not every test is offered on every date; for example, the language with listening tests are only offered in November. Test Subject Aug 29, Oct 3, Nov 7, Dec 5, May 8, June 5, 2021 2021 2020 2020 2020 2020 Literature X X X X X X US History X X X X X X World History X XX Math Level 1 X X X X X X Math Level 2 X X X X X X Biology E/M X X X X X X Chemistry X X X X X X Physics X X X X X X French X X XXX German X Spanish X X XXX Modern Hebrew X Italian X Latin XX French with Listening XX German with Listening XX Spanish with Listening XX Chinese with Listening XX Japanese with Listening XX Korean with Listening XX

Important Information U.S. deadlines apply to students testing in the United States and U.S. territories. • U.S. registration materials that are mailed must be postmarked by the U.S. deadlines. The deadlines expire at 11:59 p.m. Eastern Time, U.S. • Additional fees apply if you register late, change your test center, change your test date, or switch from taking the SAT to taking a Subject Test after registering. Find out how to make registration changes and get deadlines. • Sunday administrations usually occur the day after each Saturday test date for students who can't test on Saturday due to religious observance. Please note this exception: Sunday testing for the October 3, 2020, SAT will be held October 18, 2020. • If you miss the late registration deadline, you may be able to get on the waitlist. • Your registration options will be limited if you aren't taking the SAT for one of its main purposes. Important Information: SAT Subject Test Policies • You can take up to 3 SAT Subject Tests on a single test date. • You can't take the SAT Subject Tests and the SAT on the same test date. • When you register, you must tell us which SAT Subject Test(s) you plan to take. You can change your mind on test day, with limits. Learn more. • You can take only one Biology Subject Test per test date. After the first 60 questions, you have to choose either Biology Ecological or Biology Molecular; you can't take both. • You can use calculators only on the Mathematics Level 1 and Level 2 Subject Tests. • The Language with Listening tests are offered in November, 2020 and May, 2021. • The Language with Listening tests are always given in the first hour of testing. You can take only one Language with Listening test per test date. 2020-2021 ACT Dates Test Date Registration Deadline (Late Fee Required) September 12, 2020 August 14, 2020 August 15-28, 2020 October, 24, 2020 September 18, 2020 Sept 19-Oct 2, 2020 December 12, 2020 November 6, 2020 November 7-20, 2020 February 6, 2021 January 8, 2021 January 9-15, 2021 April 17, 2021 March 12, 2021 March 13-26, 2021 June 12, 2021 May 7, 2021 May 8-21, 2021 July 17, 2021* June 18, 2021 June 19-25, 2021 *No test centers are scheduled in New York for the July test date

APPENDIX B SCHOLARSHIP SEARCHES Scholarships Undergraduate scholarships and graduate fellowships are forms of aid that help students pay for their education. Unlike loans, they do not have to be repaid. Hundreds of thousands of scholarships and fellowships from several thousand sponsors are awarded each year. Generally, scholarships and fellowships are reserved for students with special qualifications, such as academic, athletic or artistic talent. Awards are also available for students who are interested in particular fields of study, who are members of under-represented groups, who live in certain areas of the country or who demonstrate financial need. Scholarship Search Research Local Scholarships First - In general, the smaller the geographical area a scholarship covers, the better your chances of winning. Begin with your high school guidance office. Counselors will know about scholarships for students graduating from your high school. They may also be aware of scholarships for residents of your town, county, and state. Your next stop should be the college aid section of your public library. Most libraries will have a number of books about financial aid, including scholarship guides such as the College Board's Scholarship Handbook. They also may have information on local scholarships posted on their bulletin boards. Check Membership Organizations and Employers - Organizations of all types and sizes sponsor scholarships. Explore categories you might not have considered such as religious, community service, fraternal, military, union, and professional organizations.Check with the human resources department at your parents’ employer(s). Several large companies offer scholarships or tuition programs for children of employees. Employers like fast food chains, department stores, and supermarkets often give scholarships. Awards related to student employment can come from unexpected sources. For example, there are a number of scholarships for golf caddies. Research Institutional Scholarships - Since the vast majority of all scholarship money is disbursed by colleges, spend time researching what kinds of scholarships are available at the schools that interest you. Check out college websites, catalogs, and financial aid offices for this information. Some colleges offer more scholarship awards than others. If you meet the eligibility criteria, you may automatically be considered for some of these awards simply by completing the college’s admissions application form. However, check college websites for available scholarships, complete required forms and be sure to submit required documentation before deadlines. Eligibility for scholarships can be based on merit, financial need, intended major, ethnicity, or a variety of other factors. Here are some questions you might want to ask about these awards: • Are scholarships awarded automatically if a student matches certain criteria (such as GPA or SAT® score)? • What is the application procedure? What materials are required? • Is the award renewable? What are the requirements to maintain the award?

Web Searches - The best way to search for scholarships and fellowships on-line is to use a personalized search that compares your background with a database of awards. Only those awards that fit your profile are identified as matches. There are several free scholarship databases available online. FastWeb is one of the largest, most accurate and most frequently updated scholarship database. If you supply an email address*, they will notify you when new awards that match your profile are added to the database. You can even submit an electronic application to some of the scholarships listed on FastWeb, saving you time and money. FastWeb also includes a college search and numerous other student resources. In addition to searching the FastWeb database, you may want to search at least one of the other large scholarship databases. (See a list of suggested sites below.) You will notice a significant amount of overlap among the databases - they all use similar methods to compile their listings - but each database includes a few awards not listed in others. You should never have to pay for scholarship information. If you're asked to pay a fee for \"exclusive\" scholarship leads, there's a good chance your scholarship service is really a scholarship scam. Scholarships that sound too good to be true usually are. Learn how to recognize and protect yourself from the most common scholarship scams. Go to http://www.finaid.org/scholarships/scams.phtml for further information. *Note Regarding Email Addresses: To avoid the possibility of being inundated with junk email at your current email address, you may want to create a separate email account for use during your scholarship search process. One we have used is Aemail4u.com. Simply click on SIGN-UP and follow the instructions. You do not need to enter accurate name and address information. For example, you could sign up as Joe Search at 1234 Any Street. We do recommend entering your actual city, state and birth date since this information may impact your scholarship eligibility. CONDUCTING YOUR OWN SCHOLARSHIP SEARCH 1. Create a new Email address, if desired. (See above note regarding email addresses.) 2. Conduct an Internet search using one or more of the suggested web sites. Start early! Some scholarships will require essays or letters of recommendation. Deadlines vary but some will occurduring the junior year or fall of the senior year. SUGGESTED INTERNET SEARCHES: (NOTE: Web site addresses do change quite often so some of these sites may no longer be available.) ❍ FastWeb Scholarship Search at http://fastweb.com ❍ College Board’s Scholarship Search at: https://bigfuture.collegeboard.org/scholarship-search ❍ Your college's website (or contact the college’s Financial Aid Office) ❍ For a specific major or course of study try the FinAid web site at http://finaid.org/otheraid/majors.phtml

ADDITIONAL SUGGESTED WEBSITES: ❍ Broke Scholar: http://scholarships.brokescholar.com/ ❍ College Answers (by SallieMae): https://www.salliemae.com/college-planning/ ❍ CollegeNET: https://www.collegenet.com/mach25/app ❍ FastAID: fastaid.com ❍ FinAid!: finaid.org/ ❍ Orange County Community Foundation: https://www.oc-cf.org/grants- scholarships-overview/ ❍ Princeton Review: http://princetonreview.com/college/finance/ ❍ Scholarship.com, LLC: http://scholarships.com …When determining the amount of time and effort you are going to put into your scholarship search remember that any scholarships awarded must be reported to your university. The university may reduce the amount of your financial award by the scholarship amount. In some cases, they may reduce the amount of loans, which still makes the scholarship valuable. However, if they reduce the amount of grants (free money) it greatly reduces the value of the scholarship. Therefore, outside scholarships are most valuable for those students who are anticipating very little need based financial aid.

APPENDIX C ADMISSIONS OVERVIEW Except for a handful of very selective schools, colleges today admit a much higher ratio of applicants. Even the most prestigious colleges are spending huge sums to market themselves to prospective students. Use this section as a guide to help you attain the ultimate goal of being accepted to the college of your choice. 1) Types of Admission Plans a) Early Entrance – A student can be accepted, admitted and enrolled prior to high school graduation. Some colleges use this guarantee to attract better students. b) Early Decision – A student can apply to a college by an early deadline to guarantee early notification of acceptance but is obligated to attend that college under a binding contract regardless of the financial aid package offered. c) Early Action – A student can apply to a college by an early deadline to guarantee early notification of acceptance without obligation to attend that college. However, the college may ask for a commitment prior to student receiving all preliminary financial aid awards. d) Regular Admissions – A student applies for admissions under regular deadlines. e) Rolling Admissions – A student can apply for admissions at various times during the year and is under no deadlines. f) Deferred Admissions – A student with financial, personal, or work-related concerns can defer or postpone their enrollment for up to one year. 2) Admission Strategies Be sure that each college you apply to: • Has a reputation for quality education • Fits your child’s personality and needs • Is matched with a competing college of equal quality • Will meet a high percentage of your financial NEED • Will meet your NEED with a high percentage of Gift-Aid 3) For successful Admissions Applications and Campaigns • Obtain up-to-date admissions applications online. • Start early – do not wait until the last minute. • Get organized – use a separate file folder for each college application. • Be sure to read the application thoroughly and answer each question as asked. • Type or print each application (preferably in black ink). Many schools have applications that may be completed and submitted online. • Proofread each application. Spelling and/or grammatical errors are unacceptable. • Be sure to include ONLY those extracurricular activities that are impressive to the college. They should demonstrate qualities of leadership and commitment, as well as reinforce the academic and career goals mentioned in your application. • Make copies of each completed application.

• Allow your teachers at least three weeks to write recommendations for you. • Request letters of recommendation first week of senior year. • Choose teachers that know you best. • Provide deadlines and proper forms, including a self-addressed, stamped envelope. • Send each teacher a thank-you note and keep them informed of your admissions results. • Be sure to make arrangements with your high school guidance department to send your transcript to your colleges. 4) A Resume highlights your child’s background, abilities and accomplishments, and should communicate that your child: • Is a well-rounded individual • Has leadership capabilities • Is organized • Is confident and mature • Has the capability of assuming additional responsibilities • Has a game plan and is motivated to achieve a goal • Has the qualities the school is looking for 5) For successful Admissions Essays • List the initial thoughts you would like to emphasize about yourself. • Focus on the topics you feel would reflect what you want to say. • Write a tentative statement that would reflect what you want to say. • Write a list of details that could be used to support your statement. You may wish to • e your resume as a guide. • Arrange this list of details into an outline. • Demonstrate your intellectual curiosity, dedication, commitment to goals, ability to complete tasks, leadership and self-control. • Write a first draft of your admissions essay. Revise your first draft, paying special attention to your introductory and concluding paragraphs, as well as to transitions between your paragraphs. • Proofread your revised essay at least twice: once for spelling, punctuation usage, and then read your essay a second time for meaning and overall effectiveness. ������ Ask someone else to proofread your essay and make suggestions for improvement. • Be open to feedback. • Be sure the essay is within the recommended length. • Use words and phrases that are common to you.Do not overuse adjectives or adverbs. 6) For successful Admissions Interviews: • Practice for your interview. Be prepared to answer obvious questions. Consult your guidance department for these standard questions and review them with your counselor or parents. • Practice makes perfect. Arrange your first interviews at the colleges in which you are least interested in attending. • Relax and be yourself. • Be alert and to the point. Make the interview easy for the interviewer.

• Be sure you are neat and presentable. • Provide the interviewer with a copy of your resume. • Showcase your abilities and talents. Stay positive. • Don’t dwell on a particular question. Show consideration for their time. • Don’t make lofty statements about yourself. Be humble. • Avoid negatives about yourself or making excuses for any sub-par performance. • Be prepared to answer the following questions: Describe your ideal college? Which other colleges are you considering? Which college is your top choice? • Send a thank-you note to each interviewer within 3 days of the interview. 7) For Additional Info & Assistance with admissions, interviews, and essays: • http://ptersons.com/ugrad/application.html • http://admissionessays.com • For information on The College Essay Clinic, please log on to http://kettermancollegefunding.com and scroll over to Student Resources and Admissions Guides and lick on College Essay Service. • Contact our main office at 310.563.2109 for a list of referral companies.

APPENDIX D GLOSSARY (ACT) American College Testing: A need analysis service which is located in Iowa is responsible for processing the Free Application for Federal Student Aid form, commonly known as the FAFSA. ACT is also responsible for administering the ACT scholastic exam. Academic Year (AY): Officially, an academic year runs from July 1 through June 30 and usually consists of either semesters or quarters. Accrued Interest: Interest that accumulates on loans and must be paid back at a later date. Specifically relates to Federal PLUS loans and Federal Unsubsidized loans. ADC or AFDC: Aid to Dependent Children or Aid to Families with Dependent Children. Government benefit programs, similar to welfare programs. Adjusted Gross Income (AGI): The income figure taken from the IRS income tax forms and required on the various financial aid applications. Advanced Placement (AP): Credit and/or advanced standing in certain course sequences that postsecondary institutions may offer to high school students who have taken high-level courses and passed certain examinations. Allocation: The amount of money given to an institution by the Department of Education for the purpose of funding a campus-based program administered by that institution. Asset Protection Allowance: An asset allowance used in the calculation of the Expected Family Contribution. Award Letter: The college’s official means of notifying financial aid applicants of the assistance being offered. The award letter shows the types and amounts of aid offered as well as specific program information, student responsibilities, and the conditions that govern the award. It also provides students with the opportunity to accept or decline the aid offered. Awards are usually posted on the college website. Access this information by entering the student ID number provided on the college acceptance letter. Award Year: The student receives aid from July 1 through June 30 of the following year. Base Year: The base year is the yearly income upon which the financial aid award is based. Effective 2016-17 applicants are required to use prior-prior year (PPY) tax information when reporting personal and family income. College Scholarship Service (CSS) College Board: Need analysis service, located in Princeton, NJ, which distributes the financial aid PROFILE form, a financial aid form used mostly by selective private colleges. CSS also administers the SAT scholastic exam.

College Work-Study (CWS): The Federal Work-Study Program provides jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses. The program encourages community service work and work related to each student’s course of study. Custodial Parent: The parent with whom the dependent student lives, and whose financial information is used in the need analysis when parents are divorced or separated. Default: When a borrower fails to make payments on a loan or has failed to comply with other terms of the loan agreement. Deferred Admissions: A student with financial, personal or work-related concerns can defer or postpone their enrollment for up to one year. Dependent Student: A student under the age of 24 who is at least partially dependent on his parents to provide support. The parents’ income and assets are assessed in determining the Expected Family Contribution. Some colleges/universities will consider a student dependent until the age 26. Deferred: Contractually suspending the payment of a loan until a later time. However, the interest will accrue and be added to the total repayment. Dislocated Worker: A person who has been laid off from work, or who was self-employed (such as a farmer) but is now unemployed because of poor economic conditions in the community or because of a natural disaster. The dislocated worker status is determined at the discretion of the financial aid officer. Early Action: The student can apply to a college by an early deadline to guarantee early notification of acceptance without obligating themselves to attend that college. Early Decision: The student can apply to a college by an early deadline to guarantee early notification of acceptance but is obligated to attend that college under a binding contract regardless of the financial aid package student is awarded. Early Entrance: The student can be accepted, admitted and enrolled prior to high school graduation. Many colleges use this guarantee to attract better students. Estimated Family Contribution (EFC): Amount of money a student (and spouse) or a family is expected to pay toward college education expenses. Commonly referred to as the family’s “ability to pay”. Federal Direct Loan: Federal college loan program in which the lender is the federal government. The college administers the loans directly to the family. Federal Family Educational Loan Program: Federal college loan program in which the lender and the administrator are a bank, credit union or other private lender. Federal Housing Index Calculator: This calculator uses the Federal Housing Index Multiplier from the Bureau of Economic Analysis at the US Department of Commerce to compute the minimum derived value of your home, based on

the purchase price of your home and the year of purchase. This will produce a very conservative figure for the value of your home in the current real estate market. Federal Methodology: Formula developed by Congress and defined by statute used to asses both the parents’ and student’s income and assets to determine the Expected Family Contribution. Does not consider the home, the family farm, or a business with less than 100 employees as an asset. Financial Aid Budget: The Financial Aid Budget is a breakdown of how the college determines the total cost of attendance. Financial Aid Profile (PROFILE): A financial aid form distributed by CSS. Some colleges may require the PROFILE in addition to the FAFSA to help them determine a student’s financial aid package. Financial Aid Form Acknowledgement (FAFACK): An email/letter sent to the student notifying them that CSS has processed their PROFILE. The acknowledgement lists the colleges to which the Profile was sent and also indicates which colleges require additional information, such as tax returns, Noncustodial Profile form, Business/Farm Supplement, etc. Financial Aid Form Need Analysis Report (FAFNAR): A report transferred electronically from CSS directly to the college. It contains information from the PROFILE. Financial Aid Officer (FAO): The chief financial administrator at each college responsible for determining financial aid packages. Financial Aid Package: The total amount and type of aid that a student will receive from one school. It can consist of a variety of programs including federal and state-funded grants and loans, college based programs and any additional aid programs the college may make available to the student. Financial Aid Transcript: A form used by post-secondary institutions to collect data about a student’s prior attendance at other post-secondary institutions, financial aid awards that the student received at the institution providing the transcript, and the status of certain eligibility criteria involving default and repayments owed. All transfer students applying for aid must have this form submitted by the school they attended. Free Application for Federal Student Aid (FAFSA): The financial aid form used to calculate the Expected Family Contribution (EFC), which is used to determine the amount of federal and state funds the student is eligible to receive. Full-Time: A student who is enrolled for at least 12 credit hours during a quarter or semester. GPA: Grade Point Average. Guaranteed Student Loan (GSL): Now known as the Stafford Loan. Gift Aid: Financial aid that does not require repayment or work to be performed (i.e. grants & scholarships).

Grace Period: The period of time that begins when a loan recipient graduates or ceases to be enrolled at least halftime and ends when the repayment period starts; or, in some loan programs, the period of time when a deferment ends and loan payment is scheduled to resume. Loan principal need not be paid and interest does not accrue during this period. Graduate and Professional School Financial Aid Service (GAPSFAS): A need analysis service dealing strictly with the graduate or professional student. Guaranty Agency: A state or private institution or organization which administers student loan, insurance or governmental guarantor programs for the federal government. Half-Time: A student who is enrolled for at least 6 credit hours during a quarter or semester. Independent Student: A student NOT dependent upon his parents for support who fits one of the following profiles exactly: 1) Is at least 24 years of age by December 31st of their upcoming college academic year. Some colleges/universities have raised the age to 26. 2) Has a legal dependent other than a spouse. 3) Is a ward of the court or both parents are deceased. 4) Is a veteran of the U.S. Armed Forces? 5) Is married. 6) Is a graduate or professional student (some colleges/universities still require dependent status until age 26). 7) Is judged independent by the Financial Aid Officer due to unusual circumstances. Institutional Documentation Service (IDOC) Through the Institutional Documentation Service (IDOC), the CSS College Board collects families' federal tax returns and other documents on behalf of participating colleges and programs. The College Board will notify students to submit the required documents requested by the participating institutions. Institutional Methodology: An alternative method of need analysis used mostly by private colleges which takes a more detailed look at the family’s income and assets prior to disbursing their own grants and scholarships. Considers your home, business(es) and family farm as assets. Merit-based Aid: Student assistance awarded because of a student’s achievement or talent in a particular area, such as academics, athletics, music, etc. May or may not be need-based. Modified Adjusted Gross Income (MAGI): Your AGI from your tax form plus any untaxed income and benefits. Some colleges/universities will include business depreciation and business use of the home. Need: The difference between the Total Cost of Attendance and the family’s Expected Family Contribution. Needs Analysis Form: Form completed by an applicant and family for a needs analysis service. The form collects data for the needs analysis computations. The most common forms are the FAFSA and the PROFILE. Need-based Aid: Financial aid that is awarded solely on the financial need of the student and his family.

Off-Campus Student: Student who lives in a house or apartment during the academic year, as opposed to living on campus. Used as a budget classification. On-Campus Student: Student who lives in institutional housing during the academic year. Used as a budget classification. Origination Fee: A processing fee charged to the student and deducted from the loan proceeds prior to disbursing the balance to the college. Parent Contribution (PC): Based on the parents’ income and assets, this is one of two factors used to determine the Expected Family Contribution or EFC (PC + SC = EFC). The PC is calculated from information on the FAFSA. Pell Grant: Grant program funded by the federal government. The maximum award is set annually. Limits change from year to year. The Pell Grant Award is calculated by subtracting the Expected Family Contribution from the maximum Pell Grant award. Perkins Loan: A need-based, 5% loan subsidized by the federal government. Repayment starts six months after the student graduates or leaves school. PLUS Loan: This parent loan is not a subsidized loan. The principal and interest must be repaid immediately or can be deferred (but will accrue interest) until graduation when full payments must begin. Professional Judgment: A rule that allows the Financial Aid Officer to make a personal decision to adjust the Expected Family Contribution based upon unique or special circumstances to allow a more accurate assessment of the family’s financial condition. Regular Admissions: The student applies for admissions under normal deadlines. Rolling Admissions: The student can apply for admissions at various times during the year and is under no deadlines. Satisfactory Academic Progress: Progress required of a financial aid recipient in acceptable studies or other activities to fulfill a specified educational objective. (SAT) Scholastic Achievement Test: SATI is a reasoning test widely-used for college admission tests. It measures your verbal reasoning, critical reading and math problem solving skills. As of March 2005 this test also includes an essay. Scoring has changed from a maximum of 1600 to a maximum of 2400. SATII subject tests show colleges your mastery of specific subjects. Self-help: Aid that must be repaid either through financial obligation or service to the university or the state (i.e. loans, work-study.

Simplified Need Test: A formula that is an exception to the Federal Methodology. Parents and students that earn under $100,000 of Adjusted Gross Income per year, do not itemize deductions, do not receive income from his/her own business/farm, do not receive alimony, are not required to file Schedule D for capital gains and can file a 1040EZ or 1040A tax form except for the Hope and Life Learning Credits can use the Simplified Need Test. This test does not include the parents’ or the student’s assets when determining the EFC. Student Aid Report (SAR): The official results from processing the student’s Free Application for Federal Student Aid (FAFSA). The report shows the official Expected Family Contribution (EFC). It must be submitted to the financial aid office at the institution the student chooses to attend in order for the student to receive payment under the Pell Program or other types of need-based aid. Student Contribution (SC): Based on the student’s income and assets this is one of two factors that determines the Expected Family Contribution or EFC (PC + SC = EFC). The SC is calculated from information on the FAFSA. Subsidized Stafford Loan: A need-based, low-interest loan that is subsidized by the federal government. Interest and payments on the loan do not begin until after the student graduates, attends less than half-time or leaves school. Supplemental Educational Opportunity Grant (SEOG): A grant for extra needy undergraduate students. SEOG's are granted in the $100 to $4000 range. The college determines how these funds are distributed. Supplemental Loan for Independent Students (SLS): A loan available to both graduate and undergraduate, independent students to help finance college costs. includes the total amount that a student will need to spend to attend a college for one year. It includes tuition, room and board, transportation and commuting costs, books and supplies, and miscellaneous personal expenses. Unmet Need: The difference between the student’s total financial aid award and the student’s calculated financial need. Unsubsidized Stafford Loan: A loan available to students regardless of need. The interest will not be subsidized by the government and begins to accrue immediately. Verification: The process of checking the accuracy of the information supplied by students when they apply for federal student aid. Colleges are required by the federal government to verify 30% of their aid applications.