Question about Financial Aid

Colleges and Universities A-Z Emory University
1

<p>From Emory's Financial Aid Website...</p>

<p>"Under Emory's new Loan Replacement Grant, students whose families' assessed income is $50,000 or less will graduate with no need-based loans from their four undergraduate years. Emory's new Loan Cap Program will assist students from families with assessed income between $50,001- $100,000 by capping their total need-based loan amount over four years at $15,000."</p>

<p>I don't much about financial lingo so here's my question:</p>

<p>Is this number the adjusted gross income (AGI) or the normal income? (the former being line 7 on your 1040 and the latter being line 37)</p>

<p>Because for me, my family's AGI is ~44k but the normal income is ~52k.</p>

<p>And if is talking about the latter (aww :()... will loans automatically be 15,000 for the 4 years? Or will the Financial Aid department be like "well, since this family's 52k is pretty close to 50k, we'll make the loans capped at 5 or 10k, instead of 15k, for the 4 years"?</p>

2

<p>Hmm. I think they go by AGI for that...have you talked to a financial aid officer about your concerns?</p>

<p>But if they don't go by AGI...the Loan Cap program isn't a big help really..at least not the way i see it..
It only applies to loans through the school ...& there is a cap on every year so that you won't actually accumulate 15k debt through their loans by your 4th year, anyways. </p>

<p>I have yet to have this explained to me in a way that makes sense.
& when I asked how I would pay for the ~40k in tuition that isn't covering by scholarships/grants ... I was told by my FA officer @ Emory...to get an outside loan...</p>

<p>So, yeah.</p>

3

<p>Hilsa (and Paradycia too),</p>

<p>I don't expect that as students you will fully understand the complexities of financial aid for college (and make no mistake about it, it is very complex), but I would urge you to do everything you can for you (and your parents/family) to understand as much as you can ... and then to look for those things are are truly RELEVANT for you and your financial circumstances.</p>

<p>As a start, here are some links:</p>

<p>College Confidential: Financial Aid: Paying for College: Financial</a> Aid - Paying for College</p>

<p>FinAid: FinAid</a>! Financial Aid, College Scholarships and Student Loans</p>

<p>Student Aid on the Web (Federal student aid): Student</a> Aid on the Web</p>

<p>I assume that you are familiar with FAFSA ( FAFSA</a> - Free Application for Federal Student Aid ) and CSS PROFILE ( <a href="https://profileonline.collegeboard.com/prf/index.jsp%5B/url%5D"&gt;https://profileonline.collegeboard.com/prf/index.jsp&lt;/a> . If you are NOT, you must do so ASAP.</p>

<p>Emory will request financial aid information about you and your family. They will do so by asking you to submit FAFSA and CSS PROFILE information (in which you first apply to EACH of the two online financial aid services, then designating Emory's school code in order to have each service forward your (and your parents) financial information to Emory's Office of Financial Aid). Fretting about the definition of "income" or "adjusted gross income" is wasting energy. In each of the FAFSA and CSS PROFILE online applications, the appropriate information will be asked for. Financial assets (such as savings, property, etc.) are stated in FAFSA and CSS PROFILE. The application to FAFSA will provide you with something known as "Expected Family Contribution" or EFC, the amount of money you and your family are expected to provide toward the cost of your college attendance.</p>

<p>As well, Emory will also ask you to submit copies of your and your parents' (including Custodial and Non-Custodial parents if applicable) Form 1040 (U.S. Income Tax Return) and Form(s) W-2 (the form that an Employer sends to an employee, designating income earned). Copies of these documents will further confirm/validate the financial numbers stated on your FAFSA and CSS PROFILE applications.</p>

<p>Based on all relevant information, the Office of Financial Aid will put together a financial aid package that MAY include the following aid components: Merit scholarship (ESP); Federal Grant (Pell); institutional grant (provided by Emory University); Federal Loans (Perkins and/or Stafford; which may or may NOT be "subsidized" for loan interest); Federal Work-Study Program (usually $1,000 per semester, earned income via work done on-campus, based approximately on about 10 hrs/week). </p>

<p>Because EACH student's financial circumstances are DIFFERENT, it is your responsibility to become knowledgeable on financial aid and to understand what applies (or doesn't apply) to YOU. I know that slogging through the myriad of financial terms and bureaucratic processes is no fun, but it's what you're up against, and so you MUST deal with it in order to maximize the financial aid available to you.</p>

<p>NOW ... this is not a one time process. For each year of attendance, you must re-apply for financial aid (because you and your family's financial circumstances may change -- perhaps for the better and perhaps for the worse). Because of this, keep careful track of all your application information, PIN's, etc. The good news is the the re-application process is much easier than the initial process. ;-)</p>

<p>If you have any questions, do not hesitate to speak with your assigned Financial Aid officer. If you do not understand something (and granted, sometimes you may not KNOW what you do NOT understand yet ... or know what questions to even ask), ask and ask again. Always ask for the same FA officer, and develop a more personal relationship if you can. The Emory Advantage program is incredibly generous for those who have demonstrated strong academic potential but may not otherwise be able to afford the cost of attending Emory. Its intent is to serve those with "demonstrated financial need". Whether you qualify for the "Loan Replacement Grant" or not, you should know that Emory's "Loan Cap Program" to cap accrued loans (over a 4-year period) to $15,000 is incredibly generous for those students/families whose annual income falls between $50,000 to $100,000. </p>

<p>There are very few universities in the country who are able to provide this level of generosity, especially in the current down economy. For truly promising students of demonstrated academic caliber and quality, Emory seeks to give opportunity for a world-class education -- at the cost (or less) or a state school. Make no mistake about this -- it's a great deal.</p>

4

<p>Maybe I'm misunderstanding something, somewhere, but I really don't see the "Loan Cap Program" as that great of a help..</p>

5

<p>Paradycia,</p>

<p>I don't know your own particular financial circumstances, so my response is generalized.</p>

<p>The "Loan Cap Program" is applicable to those students (beginning with the Freshman Class of 2009-2010) whose family's income is between $50K - $100K. Participation in the program is automatic, as long as the necessary FAFSA, CSS PROFILE, and other financial documents (e.g., U.S. Tax Returns and Form(s) W-2) are submitted as part of one's financial aid application.</p>

<p>In essence, the "Loan Cap Program" may not be fully appreciated until a student has been in attendance at Emory for a few years. However, what it does is to cap at a maximum of $15K total your need-based loan debt over a four-year attendance period. The program specifies that once the need-based loan debt is at $15K, Emory henceforth would cover erstwhile loan options by providing a combination of work-study and grant aid, in lieu of additional loans (and subsequent debt).</p>

<p>Again this may or may not apply to you. In general, it would not apply to students who will consistently be at a family income level of LESS than $50K annually, as these students will be eligible for the "Loan Replacement Program". On the other end of the spectrum, it would not apply to students whose family income is MORE than $100K annually, who would not be eligible based on lack of demonstrated financial need.</p>

<p>Presently, when students graduate from college after 4 years, the average loan debt for private colleges is $22,000 or more. This holds true for Emory University graduates as well. Further, the trend is that students coming from households of modest income (say, $50K-100K annual income range) tend to borrow MORE in order to pay for cost of attending college. Therefore that average of $22K is actually higher for students from families of modest income. (Depending on the source, some put AVERAGE accumulated debt figures at upwards of $29K after 4 years -- and this average debt is only escalating. There are horror stories of students graduating with debt levels of $80-100K after 4 years of undergraduate studies.)</p>

<p>Emory's "Loan Cap Program" puts a limit to this incurred debt (which usually has payments commencing after graduation) at $15K. That's a difference of $7K of unburdened debt (plus interest) that the student will not need to take on, based on average debt of Emory students who took on student loans. For students of modest income, that $7K amount may be even higher.</p>

<p>If this still does not make sense to you, and you are not seeing the potential benefit, I would suggest meeting with a Financial Aid officer soon after you have enrolled at Emory to better make sense of the financial implications. As I said, you may not fully realize the impact until your junior/senior years at Emory, if indeed this is relevant to your financial circumstances. As well, because the program is being launched for next Fall's incoming Freshman Class, there are undoubtedly nuances and particulars that may be tweaked when the program is actually implemented.</p>

<p>In general, to find out more about student financial aid and student loan debts following graduation, you may want to do a search on "college debt". The following are also some interesting links:</p>

<p>College Board: Trends in Student Aid: Trends</a> in Student Aid</p>

<p>Project on Student Debt (Quick Facts): <a href="http://projectonstudentdebt.org/files/File/Debt_Facts_and_Sources.pdf%5B/url%5D"&gt;http://projectonstudentdebt.org/files/File/Debt_Facts_and_Sources.pdf&lt;/a&gt;&lt;/p>

<p>College Scholarships: Average Student Loan Debt: Looking</a> Over the Average Education Loan Debt Carried by College Graduates and Drop Outs</p>

6

<p>NorCalDad, you get brownie points for being awesome.</p>

<p>But I guess I knew about financial stuff than I thought. My family already did CSS and FAFSA. I guess we're poor, since our EFC is under 3000. And I work, too so I know what W-2s are.</p>

<p>It's just important to know if I qualify for Loan Cap or Loan Replacement. But I hope you see my point that a family making 99,999 could better pay for college than the family that makes 50,001... though it seems they're both automatically given 15 k worth of loans despite that difference. But that's the question I originally posed. I e-mailed my financial aid officer to get this question answered, but she hasn't responded yet.</p>

<p>I definitely can see the benefit to both programs, though.</p>

7

<p>Hilsa,</p>

<p>I don't doubt that any student/family exploring financial aid options for college will have acquired a lot of information, and yes, much more than they ever thought.</p>

<p>My point with you was to have you not get bogged down between definitions of terms such as AGI and what you refer to as "normal income"... as you know, in the course of filling out your FAFSA and PROFILE applications, these numbers will take care of themselves in the process of completing the applications. Also, the U.S. tax returns and forms W-2 will validate the numbers you do state. I elongated my response, partly because there are others that view the posts who may have similar questions/concerns, and so I tried to be further comprehensive in responding.</p>

<p>As far as the Loan Cap Program and a family's income, I think the $15K loan cap over 4 years is generous on the part of Emory. Could it be more generous? Perhaps, but few schools in the country are in a position of providing more support, especially given the size of Emory's undergraduate student population. Also, you will find that very few schools, especially in the current economy, are even in a position of providing any provision for either no loans/limited loans. </p>

<p>As far as the difference between a family making $50,001 vs. $99,999, while the loan cap number is still the same ($15K), the EFC and the consequential amounts to be paid by higher-income families will be more. For instance, if say your EFC is $3K, your annual contribution is much less than say a family whose EFC might be closer to $20-25K each year. The cumulative difference between a family at $50K vs. $99K at Emory may be upwards of $50-60K. </p>

<p>The reason for Emory's generosity is also one that is at the heart of their need-based financial aid philosophy. That is their desire to create a world-class university of diversity and well-rounded make-up, including inclusion of ethnic and socio-economic diversity.</p>

<p>Here's a quote by James Wagner, President of Emory, who says it best:</p>

<p>"These new programs will make it possible for any qualified student to obtain the advantages of an Emory education regardless of family background or circumstance," says Emory President James W. Wagner. "We are especially concerned to address the particular needs of many middle-income families, who ironically make too much money to qualify for many types of financial aid, but who find themselves unable to afford four years of college education without incurring substantial levels of debt." </p>

<p>Good luck to you at Emory!</p>

8

<p>According to financial aid office the loan cap program is based on Total income not adjusted gross income and not taxable income.</p>

9

<p>QUESTION AGAIN:</p>

<p>Now that I have done my FAFSA/CSS and it has been received... do I fax them copies of my W2s/tax returns/etc now?</p>

10

<p>Hilsa,</p>

<p>You can do as you wish; HOWEVER, I would suggest sending your financial documents via USPS Priority Mail, addressed to your assigned Financial Advisor, with CONFIRMATION of DELIVERY so that you can track online that it was delivered. I would not FAX, as it's too easy to get lost. Also, include either your SSN or Student ID# (if you have one) on ALL documentation.</p>

<p>Be sure to include any Schedules and/or attachments to the Tax Returns.</p>

<p>Also, before you send your Tax Returns and W-2 Forms (yours and your custodial parents; non-custodial parents, if applicable, need to send directly to Office of Financial Aid), make copies of everything. Also, you may want to include a cover letter with bullet points of specific documents being sent.</p>

<p>Typically, most parents are not able to put together tax returns until after Jan. 31, since that is the deadline for most employers and financial institutions to send out forms W-2, 1098, etc., if you and your parents have already completed your U.S. Tax Returns, you are likely ahead of the curve.</p>

11

<p>I guess I'm ahead of the curve as my family completed tax returns on Jan 30th or 31st so we could have CSS and FAFSA completed by Feb 1st.</p>

<p>Ok, I'll have the documents in the mail soon. Thanks for the help!</p>

12

<p>Just a data point, but I have always faxed the tax returns to Emory (put my D's name and student ID on every page) and her information has always been marked received within two days. I work with some one who also has a D at Emory, she mailed hers in for the first two years until she noticed that it was taking weeks before her information was marked as received.</p>

13

<p>ThatMom,</p>

<p>As they say, whatever works! ;-)</p>

<p>My own practice was suggested by a the Financial Aid officer that I have dealt with. I do tend to follow up by e-mail, after I have confirmed delivery (via USPS online tracking), just to be sure that the right person has his/her hands on the information. This is a once a year event, so I just go with what has worked.</p>

<p>Frankly, given the sheer volume of applications, renewals, and the number of faxed pages involved, I have been nervous with the FAX approach. I like the idea of one packet going to a designated person. Then again, that's why follow-up to confirm delivery is important, and why keeping copies of what is sent is important. As parents, ThatMom, I think we probably understand the value of "Plan B" type contingencies, perhaps more than our kids may appreciate. In fact, I wonder if my daughter knows what "Murphy's Law" is?? ;-)</p>

14

<p>Can someone tell me the deadline for returning students to send in fafsa and CSS profile. Waiting on statements before we can do taxes.</p>

<p>thanks</p>

15

<p>Here's the link for Returning Students: Financial</a> Aid - Emory College - How to Apply</p>

16

<p>09-10 verification statement shows up on my to do list as initiated. Am I correct in ignoring this since Emory has only the 2008-2009 form on their web site and am I correct in understanding this is only used if your application is selected for review?
NorCalDad, you seem to be the man on this info, your feedback would be appreciated. This fin aid stuff is a huge task, particularly if parental help is limited - thanks for all the advice, wish I found it a couple weeks ago.</p>

17

<p>GoodL</p>

<p>Emory does have the '09 Student Verification form online. Is that the form that is on your To-Do list, or is it Parental verification?</p>

<p>Financial</a> Aid - Emory College - Download Forms</p>

18

<p>It just reads 09-10 Verification Statement and it is on my To Do List. Don't know why I was getting last years form - I'll play it safe and use your link and send it in.<br>
Thanks for the help.</p>