Financial Aid
Overview and Definitions
Post-secondary institutions offer two main classifications of aid: merit-based aid, and need-based aid.
Merit-based aid is frequently based upon the high school transcript and test scores, but may also incorporate things like extra-curricular participation, community service and leadership. Merit based aid is determined by each individual institution.
Need-based aid is based on family financial information that is provided on a financial application. Some of this aid will be constant across schools, but some may differ. The amount of total aid awarded is generally based on two factors: how much your family is expected to be able to pay and how much the school costs per year.
It is important to have open and honest family conversations about financial realities and expectations early in the college search process. This will allow you to build a solid list of realistic options that can meet your financial needs.
Hillsborough High School offers two financial aid nights annually. Click here to access the most recent Financial Aid Night presentation. This provides an excellent overview of the workings of financial aid. The College & Career Counselor can also assist with exploring colleges that meet your family financial requirements, learning about types of aid, and deciphering financial aid packages.
How to get started
Complete the College Board’s EFC Calculator (https://bigfuture.collegeboard.org/pay-for-college/tools-calculators) to get an early estimate of what the federal government expects your family to contribute each year, per child.
Explore the Net Price and Custom Financial Calculators in your Parent SCOIR account
Complete the Net Price Calculator on individual college websites. This can give you an estimated financial package based on your family situation, and typically takes into account expected merit awards.
Don’t limit yourself to public institutions, expecting to get huge aid packages. Public institutions have limited funds available, and typically award a limited number of relatively small merit scholarships that are paired with need-based aid (loans, grants, work study).
If you are eligible for NJ state aid (NJ TAG, EOF, NJ SEOG), you will only receive that aid at an in-state school.
Some out-of-state public institutions are currently awarding special grants or scholarships to students from certain geographic areas to make the price more competitive with our in-state schools. University of Maine and Kutztown are two such examples.
Do not rule out private schools. While their “sticker price” may be higher, merit aid is typically generous.
If your family is eligible for Free or Reduced lunch, make sure you speak to Mrs. Thomson during the junior year about programs such as EOF and fee waiver.
Financial Aid Applications
The official Financial Aid application process begins in the senior year. Students and parents should check carefully to see which applications are required by each school. Students/parents of the Class of 2023 will file the 2023-2024 forms, available beginning October 1, 2022.
FAFSA - required to be considered for need-based aid (for students who are US citizens, permanent residents, and eligible non-citizens - not H1B dependents). Only custodial parent information is reported.
CSS Profile - required by some schools (click here to see which schools require the CSS). Some schools will use this form for those classified as international students. Many schools require that non-custodial parent info also be included on the CSS
School-specific application - Some schools (e.g. Princeton) have their own aid applications as well.
The application process begins in October of the senior year, and is completed independently of the college application process - it doesn’t matter which one is completed first. Students should be sure to adhere carefully to financial aid deadlines, and note that financial aid deadlines may be earlier for students who apply Early Decision or Early Action.
If your family does not consist of two, married biological parents, along with the children, it is important to understand early on whose income and assets will be considered as part of the financial aid process at each school. There is an excellent infographic available that clearly depicts who the parent is on the FAFSA (https://studentaid.ed.gov/sa/sites/default/files/who-is-my-parent.png). Schools who require the CSS Profile, though, may also require non-custodial parent information.
Students who do not reside with their parents can talk to the College and Career Counselor to get a better understanding of whose information will be needed on the forms, and whether we will need to assist in providing documentation to try to be considered without parental information.
Visa Holders
Students who are in the United States on a visa (e.g. an H4 visa) are considered international students in terms of financial aid. Students on a visa are not eligible to file the FAFSA form, or receive federal, or state, financial aid. The only form of aid would come from the institution itself. Policies vary widely - some schools offer merit aid to international students, some do not. Some offer need-based aid, some do not. It is important to ask questions to determine which schools might offer a visa-holder any aid. You should consult with your immigration advisor to determine if you/your child can study at the college level on their current visa, or if they will need to change to a student (F-1) visa.
Students who are in the US on a visa should review the latest guidelines to determine if they will qualify for in-state tuition in NJ. It depends upon visa type, and how long you have been in NJ.
Undocumented Students
Students who are undocumented can not file the FAFSA, and are not eligible for financial aid. Some undocumented students are eligible for in-state tuition rates, depending upon how long they have lived in New Jersey. Some students may also be eligible for state financial aid by filing the NJ Alternative Financial Aid Application. Please see the College & Career Counselor for assistance and guidance.
Understanding Your Financial Aid Package
By February-March, you should be starting to receive financial aid packages - either in the mail or online.
Finances are undoubtedly part of the conversation for most of you. You should be sure that you have ironed out all of the financial details BEFORE you deposit to a school.
Things to look at:
What is the cost of attendance?
How much money will I have to pay back?
What is my family expected to pay out of pocket at each school?
Remember that what you are looking at now is only for Year 1. Tuition and related expenses will increase for Years 2-4. Will you still have the same amount in cash to pay for Years 2-4? Note that the "multi-child discount" on the FAFSA will go away two years from now (it's a federal law change), so you should look ahead to that if this affects your family. You want to have a four-year plan for paying for college.
If you have questions, do not hesitate to contact their financial aid office - it is their job to help you (and service now will be indicative of their service when you are a current student). You can also contact me, and I can try to help direct you.
Breaking Down a Financial Award Letter (video)
Aid Offer Comparison Worksheet
Direct Costs: Costs charged by the school
Indirect Costs: Other expenses you should budget for, but won't see on the bill
Outside Scholarship Information
Click here for scholarship listings
Financial Aid Appeals
Five Things to Know About Financial Aid Appeals - This is an excellent video with solid advice.
How to Appeal a Financial Aid Award Letter podcast
This looks long, but only the first 30 minutes or so are about appeals, when, and how to make them. Go here and scroll down to see the notes of what happens when - you can skip ahead to the parts you want. Or you can listen to the whole thing if you can spare 30 minutes. It’s a really insightful podcast with a former financial aid officer from Occidental and Pitzer, who currently works in the field of college financial planning.
How to Write a Financial Aid Appeal Letter (with Examples)
Special circumstances appeal - this is for families who have a special circumstance that is not taken into account on the FAFSA or CSS. This includes: change in income since 2019 info used on FAFSA, loss of family member, loss of job, parent/guardian becoming disabled, exceptional amount of medical expenses, etc. Each college has its own process for this appeal. Start at each college’s financial aid web page and look for information about the appeal process for special circumstances. This appeal is almost always going to go to the Financial Aid Office, not Admissions.
Have at the ready:
All documents: tax returns, documentation of special circumstances (new W-2s, medical documentation, etc).
Straight Appeal - the package just isn’t what you expected and isn’t affordable. Some schools will have funding to give, and some will not. In general your chances are best:
1) with private institutions
2) with schools where the student is at the high end of the academic profile.
In general, you should not expect very large changes for this type of award, but you may get a few thousand dollars more.
Your efforts to leverage other awards will be most successful if the school is a competitor, or at the least, similar in terms of cost of attendance and selectivity for admission. You need to compare apples to apples, not apples to ice cream cones.
NJ Colleges - HESAA
Did you get an email from HESAA - the Higher Education Student Assistance Authority? This is a legit email...not spam! If this email is asking for you to complete questions or tasks, make sure you do it, so that you can be considered for NJ state aid. This is especially important for lower-income families.
Loans
If you have decided to attend a school, and there is still a gap, you may be looking at loans. While many students do take some amount of money in loans, it is important that you be very careful about just how much you take, what the terms of repayment are, and who is responsible for each loan. I encourage all families to talk about these details together.
When taking loans, consider what your repayment will look like after college.
Student loan payment calculator
Consider all of your loan options: (usually apply June - August; you don't want it to disburse until August):
Direct Subsidized Loan (Federal loan) - interest does not accrue while you are a full- time student - so if you borrow $10,000, you owe $10,000 when you graduate. Low interest rates. Only some students qualify - based on need. Maximum $3500 for freshmen. No co-signer required.
Direct Unsubsidized Loan (Federal loan) - interest starts accruing right away, so you already owe more than you borrowed by October of freshman year. Everyone who files the FAFSA is eligible to take an Unsubsidized loan. Low interest rates. Maximum of $5500 for freshmen year in combination with Direct Subsidized Loan, in most cases. No co-signer required.
NJ CLASS Loans - offered by the Higher Ed. Student Assistance Authority of NJ (HESAA). Can be used at both in-state and out-of-state colleges. Interest rates depend upon the repayment period. Usually need a cosigner (someone who agrees to pay back if the student defaults. Must be a US citizen or eligible non-citizen).
Direct Plus Loans - parents can apply for these loans to cover additional costs. Loan is in the name of the parent, not the student. Interest rates are generally around 7%. If parents are deemed ineligible, student may qualify for additional Unsubsidized Loans of up to $4000 per year.
Loans from the state where you will attend college (e.g. MEFA for students attending college in Massachusetts). Need a cosigner. Private loans (loan companies, financial institutions, etc.).
Most colleges have a list of acceptable private loan companies, with whom they've had successful relationships, on their website. These loans almost always need a cosigner. Some well-known companies include:
Ascent
Citizen's Bank
College Ave
Discover
Sallie Mae
SoFi
Wells Fargo