AW2016 Finances and Your Stanford Education

Good morning everybody! How are you?
Everybody’s bright-eyed. You’ve just carried the suitcases in and this is your very
first stop. Congratulations! I’m Karen Cooper from the Financial Aid Office and
with me today is TJ Fletcher who is from Student Financial Services, and
between the two of us we’re going to cover everything you need to know about
money and Stanford. Sound good? So I always like to joke that this group who
shows up first thing Thursday morning, you are the ones who need to understand
how all of this works before you can enjoy the rest of the weekend. Is that right?
As opposed to the crowd who shows up on Saturday morning — I worry about them a
little bit. But you’ll see in the schedule, we repeat this every day — there’s
no need to come again. We cover the same information. unless we really
confuse you. And also I want to mention the Financial
Aid Office is open throughout the Weekend. So if you’ve got individual
Issues, questions about your, you know, your treatment in the financial aid
process you are more than welcome to stop by the office and we can sit down
with you with your information in front of us. So, with that said, welcome! Really
happy to have you here this morning. Congratulations! Lots of hard work went
into your admission at Stanford (to the students’ admission, not mom and dad) and we’re
really happy to have you here. So this morning, one more, one more housekeeping
thing: we are actually being videotaped this morning for those who weren’t able
to make the trip to this weekend so unless I am really confusing you I’m
gonna ask you to hold your questions to the end and we’re gonna save time to do
a question-and-answer session. So… sound good? all right let’s go ahead and get going.
What we’d like to talk about this morning is Stanford’s financial aid
program. I’ll give you some background and talk about where we are and how
things work into the future. We’ll talk about financing options, ways to
pay for that expected contribution that
you might have seen on your award letter and we’ll talk about billing and paying
and how all of that works at Stanford to give you a little bit of a head start in
understanding how all of this works so I hope that meets your needs this morning.
So let’s start with the Financial Aid Office. We are over in Montag Hall,
directly across the street from the Alumni Center where you registered this
morning, so, easy to find, and we handle lots of things in the Financial Aid
Office: counseling, talking to students about money matters, their financial aid awarding goes on
there in the Financial Aid Office. So all of Stanford’s undergraduate financial
aid gets funneled through the Financial Aid Office. There’s no secret pots of
money anywhere else. We also handle outside scholarships there in the
Financial Aid Office. So, many of our undergraduates are bringing outside
scholarships to us from other foundations and organizations, so I’ll
talk about that a little bit, how that integrates with a need-based financial
aid package. But know that even if you’re not receiving need-based aid, outside
scholarships, the Financial Aid Office will help you manage those. And we also
have a Federal Work-Study program where we help students with employment issues.
All of that happens in the Financial Aid Office. So you’re here this morning
probably because you have completed the financial aid process. At this point most
people have. A complete financial aid application consists of the Profile, IDOC
(and what that is a way we collect tax returns from our families) and the
FAFSA (Free Application for Federal Student Aid). So those three pieces make
up a complete application, and hopefully you’ve received an award letter from us. The
point I want to make here is: that very first one, we print it out on pretty
paper and mail it to you, so Mom and Dad definitely get to see it. We want to make
sure everybody can put their hands on it. But from now on, when we make any new
awards or any adjustments to existing awards, what happens is: we sent an email
to the student and instruct them to log in to Axess, our student system,
which is also where you go to accept your offer of admission. And later in the
process, that’s where students will enroll in classes, it’s where they’ll see
their bill information. There’s lots of good information in Axess. And that is where
they’ll always be able to see a PDF copy of award letters. So, students, you often
need to share that PDF of your award letter with mom and dad. We’re not
communicating directly with the parents at that point, it’s with the student. So
hopefully you are here today because you’re making decisions about how you’re
going to handle that net cost that showed up on the award letter and
probably scared some of you a little bit. OK, so let’s get into it. So probably one
of your first questions was how did the Financial Aid Office come up with that?
What were they thinking? Right. Well, this is what we were thinking.
This is the formula that we used to decide how much scholarship aid to give
students: Cost of Attendance minus an expected Parent Contribution minus the
Student Responsibility. And I’ll talk a little bit more about that. The remainder,
what’s left at that point, is what we award in scholarships and grants. That’s
how we decide how much scholarship to award, and that’s why, if you come in to
talk to the Financial Aid Office, and want to have a conversation about, “we
need more financial aid,” we will sort of shift that conversation to, “why is the expected parent contribution too
high for you?” If we can reduce that expected parent contribution, if there
are reasons for that, then we can increase the scholarship. So this formula
is important to us. There’s another formula: Cost of
Attendance minus Scholarships and Grants equals Net Cost ,that i think is
important for all of you as you’re comparing financial aid offers from
school to school, that’s how you understand, you know, there may be
resources available to help you manage that net cost. But in the, end even if its
loans (student loans, parent loans), in the end that is the money that you’re going
to have to pay one way or another, that net cost. So that’s important when you’re
comparing school to school, and I’ll talk about each of those aspects. And it just
so happens that our award letter (I know you can’t read all the little numbers,
but) our award letter is laid out in that format. We’ve got the cost of
attendance at the top, scholarships and grants, and that results in a net cost. And
all those areas at the bottom are really suggestions for you about how you meet
that net cost, right? And they’re just suggestions. There’s not a point where we ask
you to write us a check for that amount, right? These are our, this is what we’re
thinking when we’re putting together the financial aid package and how we came up
with the amount of scholarship that we Did. So let’s talk about each one of
those components. So on Leland’s award letter here, here is the
Cost of Attendance, and the point to make here (and I’m sure you’ve heard this as
you sat through, you know, financial aid presentations during high school), financial aid offices use this concept
of the full cost of attendance. It includes both the direct costs (the things
that we actually bill you for: tuition, room and board, campus health service fee, there’s some fees that you face, one-time
fees that you face as new students) all of those are in the cost of attendance. But in addition
we recognize that to be a full participating member of the Stanford
community you’re gonna need some money for personal expenses, right? We want you
to do laundry; we want you to be able to have a cell phone; you know, the basics of
being a student. And we want you to be able to buy books — that’s really
important to be a student. So there is an allowance in our cost of attendance for
the cost of books. And you also need to get here, so, travel. The travel amount in the
financial aid cost of attendance is meant to cover two round-trips from home
to campus, and it’s based on the state that you’re from. So those last three items
(the personal expenses, books, and travel) are estimates of what the costs are
going to be. The personal expenses and the books are actually based on surveys of
current students. So we ask students: what do you typically spend a month in food
outside of your meal plan, or in entertainment, or in sporting events on
campus, you know, those kinds of personal expenses? We throw out the ones that are
spending, you know, they’re going to Tahoe every weekend, and we throw out the
ones who tell us that they don’t spend any money, and take an average of what’s
what’s left in the middle, and that’s what that number is. Even for students
who are not receiving financial aid, parents, that’s a helpful thing to know,
that that’s what a typical Stanford student is spending. So if your student
is asking you for a thousand dollars a month to cover their personal expenses,
they might be little extravagant compared to some, most of our students on
campus, OK? So that’s what that cost of
Attendance is. And the aid that’s being offered is against that full cost of
attendance, so it’s not just the bill, it’s the full cost of attendance that
we’re worried about. So what comes in next are the scholarships and grants. In this
example the only resource that’s available is scholarship from Stanford, and that
results in a net cost to the family of 19,700, so that’s what needs to be paid
toward the cost of attendance after scholarships and grants are applied. So
this is the heart of it, right, the parent contribution. ‘Cause this really drives, to
a large extent, and for most families, the amount of scholarship that is available
for students. And of course we use a formula to calculate an expected parent
contribution. You know, you filled out all those forms. We asked for all kinds of
information, right, lots of detailed information about your family income
your assets, the number of family members, how many kids are going to be in college,
do you have other expenses, do you have kids in private school? All of
that information goes into a formula that calculates an expected parent
contribution. And we do that because we’re trying to be consistent in how we
deal with our families. We want to be fair and equitable in how we are
treating people. Our philosophy is that people with similar financial situations
should have a similar expectation, right? So all of that sounds good, but the
reality of life is that, you know, no two families are exactly the same. It’s, we
often feel like we’re trying to fit square pegs into round holes. So the more
you can tell us about what makes your family unique, what is individual about
your family, we can take that information into account. Because this is a
relatively complex formula behind the scenes, it’s hard for families to know in
advance what they’re going to qualify for at Stanford. And they see that
sticker price, that great big number I had in the cost of attendance, I don’t even
like to talk about that great big number, and they are afraid to even apply to
Stanford. So I’m so glad that your kids overcame that and decided to apply. And
we’ve done a couple of things to help make that easier to understand. Back in 2008 we started this treatment
where we have said families, right now it’s families with income less than
$65,000 a year who have typical assets for that income level, those parents are
not gonna be expected to contribute towards educational costs, so, towards
that cost of attendance. And for families with income less than a hundred and
twenty-five thousand, and I’m talking about total income here, both taxed and
untaxed income, for those families. typically the parent contribution is not
gonna be more than about 14,700. If you look at our, that formula that I showed
you first, if the parents’ contribution is that amount, then the amount of
scholarship that you’re gonna receive will cover the tuition at Stanford. So
the media love that they get to say, “free tuition at Stanford if you make less
than 125,” right, so that’s how that works. And the reason why we have that caveat,
“typical assets for that income level,” because all of you are gonna say to me, “Well
I’m just gonna quit my job, and not work anymore, so my kid can go to Stanford for free.” I know,
you all know that’s not realistic, right? Your family would not function that way.
And these policies are really meant to reach out to families who are low-income
families, true low-income families. So somebody who is recently retired but
living in a multi-million dollar home and sitting on millions dollars in
retirement assets but maybe doesn’t have a whole lot of actual income in the
previous year would not qualify for that zero parents contribution. And I
think you all can understand why we would do that. So one of the things that
has concerned me a lot about this policy Is, the media grabs onto those two messages,
0 parent contribution at 65, tuition covered at 125, and people think we don’t
give aid to people with higher incomes, and that’s not true. So there’s
lots of families who receive financial aid with higher incomes. We’re talking
about almost $70,000 a year that needs to be covered, so it takes a lot of
income to be able to cover that kind of expense. So families at higher income
levels absolutely still qualify for financial aid. And you’ll press me and ask,
“What’s the upper limit?” And at that upper income level families’ income
situations are often more complex than they are at the lower income levels, so
it’s hard for me to give an exact cut off cuz it depends on the family
situation. You know, a family that has two or three or I’ve seen as many as four
kids in school at the same time, even if they have a very healthy income, is gonna
have a hard time paying for Stanford, right? So all of those factors get taken
into account. And what we’ve done is, we have a calculator on our website for
prospective students. I hope many of you used that when you were in the process to
help understand what kinds of financial aid might be available. That calculator
takes a conservative approach, right, it’s not taking into account any of the
special circumstances that you might share with us, and the staff can take
into account when we’re doing our analysis. So that’s just the basics of
how we manage that parent contribution, and I think it’s important for you to
understand that, because, as situations arise, you know, over the next four
years, if income changes, if, if heaven forbid somebody loses a job, there’s an
illness in the family, those kinds of issues that drain your
finances, you really have no choice about them, we want to know about that in the
Financial Aid Office, because we can take that into account in our formula and
perhaps qualify you for more scholarship funds when those situations come up. All right, student
responsibility! So, how many of you parents saw that net price number and
thought, “Well, I have to pay this whole thing”? Students! We want students to take some
responsibility for some of these expenses. And they can do it quite easily.
actually. So a typical award letter would show that $2,800 in academic year
earnings and a student contribution, or work over the summer, of $2,200. We expect
our students across all four years, and we’ve had this $5,000 minimum in place
for several years now, we don’t increase it as they get higher in their academic
career, so $5,000 a year is the minimum of what we expect of students. If they have
assets in their own name, that expectation might be a little bit higher.
We expect that students are able to contribute 5% of the assets they have in
their own name each year. So we never expect the whole thing; it’s five percent
of what’s left every year. And that job earnings of $2,800 during the academic
year: when you understand that our minimum wage on campus for students averages about $14 an hour right now and
you’ve all heard the California Legislature talking about $15 an hour so
it’s, it’s on its way up, students can easily do that level of
work in eight to 10 hours a week of work. Those earnings that students receive go
directly to them, so remember, these go against the total cost of attendance. So
expecting a student to earn enough to cover their own personal expenses, maybe
use their summer earnings to help cover their books, and maybe even buy one of
their plane tickets to get here, is a perfectly reasonable expectation. And our
experience is that our students are able to do that. And I know as parents we
worry about expecting our children to work, right, they’ve worked so hard to get
here, we want them to focus on their academics and do well while they’re here. Research shows that students who are
working at this level, eight to 10 hours a week, actually do better academically
than their peers who are not working, because it plugs them into the community,
with, especially if they’re working on Campus, they might work with someone like
me who understands the academic schedule and knows when they need to take some
extra time off to study, but work enough hours to have some spending money in
their pocket, absolutely is a workable solution. Stanford is a unique campus, I
think, in that students don’t have to be eligible for Federal Work-Study, which is
a federal program meant to go to low-income students, Pell Grant
recipients, which absolutely helps them to find jobs because then the department
that’s hiring them doesn’t have to pay their salary, right, that money is coming
from the federal program, but all students are able to find work on
Stanford’s campus. There are lots of opportunities for students to work
either here on campus or in the local community, which is not true, has not been
true everywhere, depending on the economy in that area. So
Stanford is a really welcoming place for students to work. They may not be able to
work in a Nobel prize-winning lab as a freshman, but as long as they’re willing to
be flexible. So let’s talk a little bit about outside scholarships. That is
another way that students can handle that student responsibility. So we
allow students to use any outside scholarships that they have won, you know
I’m talking about the Rotary Club scholarships, the school PTA scholarships,
that, all that kind of money they can use those to meet their student
responsibility. So what we do with those outside scholarships as they come
in is, first they will replace that academic year earnings. Next they will replace the student
contribution, unless you tell us you’d like it to be otherwise, right? We, we are
not tracking the number of our students are working; we’re not paying attention
closely to that. So if you’d prefer that it replace summer earnings, that’s OK.
Either way. But if your outside scholarships are more than the amount of
the student responsibility that’s in the student’s financial aid package, and they
are receiving need-based aid, scholarship from Stanford, that additional amount of
outside scholarships will reduce Stanford scholarships offer. Why do we do
that? Because our financial aid program is need-based, and if students have other
resources to meet their need, then we want to use our resources to meet the
other students’ needs. That makes sense? So in that way that’s our partnership with
you to make our financial aid program affordable for Stanford. Now, we do work
with students. A lot of times students, their first year have lots of outside
scholarships that are non-renewable and may not carry forward to future years. So
if students want to work with their agencies to spread some of that money
out over four years, you know, they go back to the Rotary Club and say, “Don’t
send that until my sophomore year,” that’s OK — they don’t have to use it all in
their first year. The one caveat with that is we can’t hold that money for
them. So if money is sent to us by an outside agency we need to apply it in
the year that that we receive it. Students who are seeing their
scholarship reduced because of outside awards, if they have an expense for a
laptop, you know, they need to buy a new computer, many students do their freshman
year, we would add that expense to the cost of
attendance and allow them to use some of that scholarship money for that outside
scholarship expense. So that’s another way that students can use their outside
scholarships and still keep the full value of Stanford scholarships. So we’re
willing to be flexible and work with students on those outside scholarships
to a point, however, so, know that up front. And we ask students to report those
outside scholarships starting in May. They’ll do that through Axess to let us
know about those scholarships. So just to make this point perfectly clear here is
Leland’s award letter with an outside scholarship added in. You can see right
there outside scholarship and grant has been
added, so that has reduced the net cost by two thousand dollars, and the student’s
job has been reduced by two thousand dollars, so that’s how, for we visual people, that’s
how it works when outside scholarships come in. All right let’s talk about
financing options. Down at the bottom of the award letter is a section for
student loans. And for most of our students who are receiving scholarship
funds from Stanford, that was blank, because we don’t expect students to
borrow to meet their student responsibility. But that option is
available. I see a lot upper-class Students, juniors and seniors, who have
fabulous opportunities for internships over the summer, for example, wonderful
opportunities, but they’re unpaid; it makes perfect sense to use a $2,000 student
loan to cover that part of their student responsibility in that year that they’re
not able to do their summer earnings. That’s OK. Totally up to you to use that resource.
And for students who applied for aid but we determined the parent contribution was high enough that we would not offer
scholarship funds, we sent you an award letter showing the amount of federal
student loans that you’re eligible for. So first-year students can borrow $5,500 in
the Direct Loan, the Federal Direct Loan Program. Anybody else who would like to
borrow to replace some of that student Responsibility, or even to help parents
with the expected parent contribution, let us know in the Financial Aid Office,
and we will offered to you the best student loan debt that we have available.
A little more information about the Federal Direct student loan: there are
both subsidized and unsubsidized loans available. What I mean by that: a
subsidized loan is based on federal need, so the, the FAFSA calculation
is important here, so if you’ve demonstrated federal need that we
haven’t met already with scholarship funds, there may be some subsidized loan
available and that means the interest is not accruing during the time you’re
enrolled in school. Interest will start accruing six months
after you leave school. And when you’re making payments. For everybody who
qualifies for federal student aid, regardless of their need, they can borrow
an unsubsidized student loan. The interest on those loans start accruing at the time
the loan is disbursed. You’re not required to make payments while you’re in school but
that interest is accruing during that period of time. These loans are fixed
interest rate, so, the year that you take out your loan determines the amount
of the interest rate for the life of the loan. The rates are set on July 1
every year for the coming year. They’re based on the ten-year T-bill plus 2.05%,
for those of you who know what the ten-year T-bill is. The current interest
rate for students this year is 4.29%, so, not horrible. It does have an origination fee
just over 1%, so the government keeps that percentage right
off the top. So these loans are called Direct Loans because you are borrowing
directly from the US Treasury via Stanford. So all of the paperwork, you sign
promissory notes, everything is done online, and Stanford disburses those
funds to our students at the start of each quarter. The limits for the direct
loans are $5,500 total as freshmen, 3,500 of it can be subsidized if there’s
eligibility, and the remaining two thousand is always Unsubsidized. 6,500 is the limit for
sophomores with two thousand unsubsidized, and 7,500 year for juniors
and seniors with 2000 unsubsidized. So you can see if students stick to the Federal
Direct Loan Program, I know you have all seen the media coverage of people who
are deeply in debt, can’t start their futures because you know, such a horrible
situation, those individuals that they pick out for
those stories are not the norm. So nationally students who finish
bachelor’s degrees are borrowing about $30,000. At Stanford last year 22 percent of our graduating class had
Borrowed. The other 78% graduated debt-free. The 22 percent who had
borrowed, the median indebtedness for that group was just over 16,000, ok, so
our students are borrowing responsibly for the kinds of reasons that I’ve
talked about and are making those payments. We have a less than one percent
default rate three years after students enter repayment, so, and it’s nothing we
do in the Financial Aid Office, it’s because our students are working, managing their, their financial lives, so
it’s a good thing. So those are the student loan programs. There is a federal
parent loan program that’s available, so parents, if
you’re looking for a way to finance the expected parent contribution, parents can
actually borrow up to the full amount of the cost of attendance that’s not
covered by other forms of aid. We do suggest taking out the student direct
loan first because it has a little bit lower interest rate. It’s the same deal with the federal PLUS
loan where the rates are set once a year. The current rate is six point eight four
percent. The thing I like least about the federal PLUS loans is there is over a
four percent origination fee that they keep right off the top, so that’s a
little expensive. There’s a ten-year repayment period. If you’re interested in
the PLUS loans that is also just a totally electronic process, and you would
start that process from the Financial Aid website after July 1 so no need to
rush into it. The, the only people they disqualify for the PLUS loans are,
there is a credit check involved. What they’re looking for is the absence of
negative credit. So if you’ve had a bankruptcy recently you might be denied
for the PLUS loan, but they’re not doing other kinds of typical credit checks.
There are other parent loan options Available, and we do have some
information on our website about things to think about when you’re comparing.
You’re probably already getting mail at Home, somehow they know you have a senior
in the house, right, from banks marketing directly to you. There are some new
private parent loans that are just coming out this month. Sallie Mae
announced one a few weeks ago actually. So depending on your credit situation it
may be possible to get either a private student loan or a private parent loan at
better interest rates frankly then the federal student loans. So if you’re
thinking about borrowing it might be worth your time to look into a situation
like that. Student loans: know that typically,
private student loans require a cosigner so that that is not something they can
get on their own. The federal student loans do not need a cosigner; we are, the
students have that debt in their name, and it’s actually an excellent way for
them to establish credit on the road, but a private student loan would require a
cosigner, typically a parent, so just know what you’re getting into when you’re
looking at those loans. Most of our families, on average, that expected parent
contribution, are handling about a third of it from their current income, a third
of it from savings or past income, and a third of it from debt or future income,
so they’re just spreading that out. TJ will also talk about a installment
payment plan that allows you to spread the payments out in one year. So if you’re
just looking for short-term solutions we’ve got those too. So, things to look at. Alright, so your questions now are, “So I
think I’m ok with this year, but what happens year after year after year, right?
You’ve just given me an award letter for one year.” So we do ask you to fill out
those forms again. We do have a later Deadline, so we hope it is not so
onerous on you. And there are some changes coming at the federal level next
year that is going to make the FAFSA available a little bit earlier, and we’re
shifting the year that we’re focusing all our questions about back a year. So the
2015 calendar year that you filled out your Profile and FAFSA for this year,
and you had to estimate information cuz we ask you for it in February, and you
hadn’t done your taxes yet, now you have to go back and correct the FAFSA, all that
complicated gobbledygook. Next year’s freshmen won’t have to deal with that
because they will be using their calendar year 2015 income as the basis
for their application, and so that will affect our continuing students as well.
We hope that will simplify things. We are not changing our deadlines, however, so
continuing students don’t have to turn in their financial
aid applications until April 30, the end of the month. So think about what
we’re doing in the Financial Aid Office this month, we’re dealing with all of you,
so happy to have you, and then we will turn to dealing with our continuing
students as soon as we’ve got the freshman class in place. So we ask them for April
30th to turn in the forms, and it’s the FAFSA and the Profile. We typically
don’t ask for the full tax return again, unless you’re self employed or have
something complicated going on. What we ask parents to do is give us a copy of
their W-2’s. And for next year it’ll be 2015 again so you’ve already got them. So
hold onto your W-2’s. And what we’re looking for in those applications
are really any changes to your financial Situation. If things remain the same from
year to year then you can expect a very similar financial aid package. As a
matter of fact, typically our costs do go up every year. I will admit to that. The last
several years, tuition has gone up by three, three and a half percent and
room and board as well. And as those expenses get higher, if the parent contribution
remains the same, what’s gonna get bigger? Scholarship from Stanford, right? So I’m the, the one person on
campus when the Trustees are having that conversation about where to set tuition
for the next year they said, “Yeah, yeah, Karen, I remember, I know we have to increase the financial
aid budget every year,” so as tuition goes up, financial aid goes up as well.
You can think of that application process as our annual check in with you,
right? We’re just checking in to make sure you’re still doing ok, that nothing’s
changed in your financial situation. The things that can make a big difference
are things like changes in your family situation. Another sibling going to college, I will
warn you now, is a big change. So what happens when there are two family
members in college, we still calculate that expected parent contribution, and then we divide it among the children
who are in college. So that means you’re gonna qualify for more scholarship funds
during those years when you’ve got two in School. If you have two now and will be
going to one in a couple of years, think about what that’s going to mean, and
remember that I’m warning you now, ok, so you, you’ve heard that message, right? And if
your situation changes during the year, we do want you to let us know about that.
You don’t have to wait for the application process to come up for the
following year. Those financial aid packages that we’ve offered now are not
carved in stone. We can make changes when family situations warrant a change, so we
want to know about that. My joke is, if you win the lotto, you don’t have to run
in and tell us. We will figure that out in the next application process, right?
But if things get worse, if you run into some difficult family situation, somebody
changes jobs, etc., come talk to us about that, and we’ll tell you what your
options are. Fair deal? OK. So I’m gonna turn it over to TJ at
this point to talk about what happens next, and then I will be back to answer
questions. And I don’t know why the slide’s not advancing, TJ. Hello! It’s very great to see you today. This is one, this
is probably my favorite week of the year other than, maybe Orientation is a good
week too, when the students are, are actually here. So before I jump in and
tell you all about the billing, I just want to do a very quick check of who’s
in the audience today. So how many of you are California natives, just came from the
state of California? A large population! OK, the rest of you: either
domestic, or what about international, International? Couple of you, great! How
many folks in the audience are alum of Stanford? Welcome back to the Farm! It’s always
great to have alum come visit. So do I have any incoming freshmen, potential
freshmen in the, in the… well, welcome! it’s always good to see that. You know
this, this particular session is designed toward parents but it’s always nice to
see our incoming students here as well. So, so welcome, each of you, it’s very nice to
see you. My name, as Karen said is, I have to look at the piece of paper, is TJ
Fletcher, and I am the Director of Student Financial Services. I’m the bill
Collector. So you see why I enjoy this so much! It gives me a chance to get out
of the office, and it’s not often that bill collectors get audiences like this.
So, thank you. So, a little bit about all of the great financial information that
you just heard from Karen, that’s the good news. What I’m going to share with you is more
good news, actually. I don’t want to call it bad news. But the, the, the way that
Stanford operates is that we, we gather all of the expenses that are related to
Stanford that we can put onto one kind of billing, a “one account” for, for our
students, we gather everything, not only tuition, but we gather the room and the
board, and that’s the Stanford-generated costs so that we don’t have to pay
individually. So we gather all of those costs and then we put them all on what
we call the student account, and then once we gather them all, all of the
financial aid that you just heard about, you’re not gonna see much of it because
it’s, it’s all going to be, it’s all gonna come
to me. It’s all been applied to the, to the bill. Now, any excess that might be
awarded to you for the non-billable items such as the travel, the personal
expenses may come in the way of a refund to the student, but we’ll get to that in
a little bit. So, so my office is basically billing and collections, and I
know that that is, is something that is extremely dr,y but still one that we just
want to make you aware of. I do have a bit of good news, and that is that while
Stanford prepares the award letters based on the family and the financial
contribution of the family, the person that’s ultimately responsible for the
payment of any excess amount due is not the parent. Isn’t that great news? We hold, it does have to be paid, we hold
the student responsible because they’re getting the benefit from the education.
So my office deals primarily with students in trying to get them to
understand. See, they don’t, they know they don’t have to pay, so they’re leaving. [laughter]
Alright very quickly before I jump into the guts, and my part will be brief but I
do just want to give you a little factoid, a little trivia question for you.
We are celebrating, you may have noticed, one hundred and twenty-five years at Stanford, and that would be 1891. Isn’t
that great? Yay! Sometimes I feel like I’ve been here for all 125 of them. But, but I’ll tell you that
that would be 1891 was the first, was the first class if I’m counting correctly. So
in 1891 does anybody know what the tuition cost was? [Audience: “Free!”] Free! Exactly. My, how things change, right?
It was, it was absolutely free back in, in, in the day. Alrighty so let me just jump in. Here is
an example of what we will do once we gather all the expenses ,and I don’t
expect you to see this other than to just to read it, other than to recognize
this thing as a bill. I’m going to highlight some areas that I do want to
bring to your attention. First highlight: right hand corner, payment due date and
total amount due. If you see nothing else on the bill, that’s, that’s the one thing
that we will need to be taken into consideration. The next really important
thing about the bill is a term summary. If you’re a little bit more curious as
to wonder what that total amount includes, we’ll tell you each term by term him what might be, if there’s any amount
left or what the total amount is, and the credits that have come in. The third item
on the bill, and this is one that you should be very paying close attention to,
is what we call our anticipated aid. So if the billing occurs, the actual amount
of the financial aid award has probably will not have disbursed, this is going to
tell you how much is coming. So in this particular case you wouldn’t pay the
total amount due. You would just know that you’re getting anticipated aid. You
would only look at the difference. I say that because looking at a total amount
without the aid attached to it is a very large number and we don’t, we don’t want
you to do that. We only want you to pay the difference, because once it is
anticipated, that means that financial aid has already sent me the amount that
they’re going to cover on the student’s behalf. Next item I want to share with you is what to pay. Any balance that’s due after aid applies.
In some cases it may be zero; in others it may be, it may be small amounts. Some
of the items that might show up on the bill, example, would include what we call
monthly incidental charges. Stanford Card Plan. Stanford Card Plan is
a program where the student can charge items using their University ID card in
local Stanford, Stanford-sponsored places, for example the University
Bookstore here on campus. If the student needs to buy something and doesn’t have
the immediate funds they can use their Stanford Card Plan to go into
the bookstore and buy it. This would of course then land on the bill and be due
in the next billing cycle, but it does give a little bit of relief for those
students that might need to buy something the first day they, they get
here, whether it be a book or supply that just simply don’t have the funds.
So the Stanford Card Plan is an option to do that. There is a limit, however, to
the, to the total amount. Each term (three terms in an academic year) they can they
can charge up to $1,000 per term. So they, they, they can use up to $1,000 in
incidentals. Other places that take the Stanford Card Plan include some of the
eateries that are not part of the dining plan, at Starbucks or some of the other
eateries around campus. Other items that may show up on the bill is if
your son or daughter take in-room HD and cabling, that they would charge that
separate as well. And Cardinal Dollars. Cardinal Dollars are part of the dining
plan that gives you extra dollars to use for primarily in the dining halls in the
non, in the non-board-type of purchases, to purchase late-night meals, etc. So those are an example of things that
might in addition to the, what you would think is your normal tuition and fees,
might land on the bill. Next I want to say something about this, the Stanford health insurance. So at
Stanford we require all students have health insurance. Many of our incoming freshmen, especially
under-, undergraduate students, will be on their parentss insurance plans. If that is
true and if you do not want to be billed for this, it’s very important that the
student waive this insurance. Stanford’s health insurance plan is called Cardinal
Care. You may have heard about it. You may have already signed up for it. It’s a very good program,
it’s a very good insurance program, and I am going to bill it unless it is waived,
and I can tell you that the annual fee is 4,968 this year. That’s a pretty big
pretty big chunk of change if you don’t need it. So I bring this up in this
session not to, not to push the insurance or not but to say that if your son
or daughter is covered already, this is an expense that you don’t want to
have to worry about. So there is a waive deadline, and it’s September 15. There
will be many opportunities for your son or daughter to go out to the site and
actually waive this fee, and i just want to remind you, this is one of the
takeaways I want you to leave today with, and that is, make sure it’s waived if you
don’t need it, because unfortunately once Stanford, once, after September 15,
Stanford’s going to pay for you or your son or daughter to have that insurance
and once it’s paid there’s really no way to waive it at that, at that point. So
please, please make sure that the health insurance waiver if you already have
coverage is, is done, and that can be done online in Axess prior to September 15.
I’m also going to charge a Campus Health Services Fee. That is not the same as
insurance. Campus Health Services Fee is to support our Vaden Health Center on
campus for basic health and welfare services. You can read more about what
that fee does. It’s substantially less than the health insurance cost, and it will be billed on a quarterly
basis. Again, more information from Vaden Health Center if you’ve not visited, I
think it’s probably a part of your program. They’re available, and the
site’s very, very helpful in giving you the, exactly what the plans cover, and if,
if you want to cover them or if you would actually want to make sure you do
the waiver. OK I wanna talk to you now, I’ve kind of been telling you everything that
I’m gonna throw on the bill and, and charge. I wanna, I wanna tell you as
parents, and the few of the students in the room, here are things you can avoid,
and it’s very important to look at these. So Stanford has something called Late
study list. Late study list is, it is what we call our enrollment. So students
are required to be enrolled the first day of class. If they are not enrolled
the first day of class they are subject to a Late study list fee, and the fee is
$200, so that if you, if you’re late three terms, that’s $600 of really unnecessary
costs. So, so the way to avoid this is simply enroll. Make sure you
enroll by the first day of class. The second item I want to tell you about
is a late payment fee. So when I bill you, and I’ll show you the dates a little later,
when I bill you, and it has a due date, if you, if you don’t make your payment on
time or if the student doesn’t, you know, if there’s any balance, if there’s any
balance remaining and the payment’s not made on time, there is a one percent late
payment fee. And of course the way to avoid that is, is to pay, is to pay the bill. The next item is lost ID card. So if
students lose their ID card and they need to get another one, and you, your ID card is
your, you know, is the way that you get around campus, it’s how you get in your dorm, it’s how you
get, go to events, it’s how you get into the dining hall and everything,
if you lose that there’s a $20 fee. So to avoid that,
make sure that you hang on to your ID card. The last one that I’ve mentioned here is
just a heads up: housing damage fees start at $50. And all of you that are
homeowners, you know what I’m talking about. It ain’t cheap to fix something that
goes wrong in the house. So, damage fees for anything in the, in the residence
hall start at $50, and I’ve, I’ve seen them as high as $500 that, you know, for damage.
Clearly, you know, just don’t damage the room, and you avoid that cost altogether.
These items can appear on the bill, but these items I don’t want to
appear on the bill Alrighty, when to pay. Here we go. We actually
do billing every month. The big bills which have the quarterly tuition fees will be coming
out (we call them the big bill) August, November and February. The August bill
which will come out on the, around the 20th, will be due the 15th of the
following month. Every bill comes out on the 20th and isn’t due, and is due
the 15th of next month. So in August, on or around August the twentieth you
and the student will see the first bill that will contain charges that have been
gathered from Stanford. The second and third bill we call that they’re not,
they’re not big bills because they’re just the, if, they’re the non or the discretionary funds
that have been, that have been used to purchase items there, the smaller items
that could appear on the bill. And in November we’re going to bill, bill again
for the winter term, and then in February we will be billing for the spring term
all again 2015. And I saw some of you taking
pictures of this. It’s on the website and I also think this presentation will be
made available on the Financial Aid website as well, so, know that. Alright, so, how to pay. I think some of
you that were here earlier, I was talking about how, how some of, some of
the Millennials and Generation Y’s and the Generation Z’s and, and people
become less and less dependent on paper and more and more electronic so, so we do
everything in, in our office electronically. We actually bill
electronically, and we, most of our students pay electronically so we have
something called Stanford ePay, it’s through Axess, again, the portal that the
students use, and it will, it will handle our online billing and payment. Now some
of you are probably saying, “Well, I really want to pay even, even though I know my
son or daughter’s responsible, I want, I want to be the one to actually see the
bill, see the bill and pay.” Good news is, that’s great, you can. The student will
need to go in and actually set you up as a authorized payer. What that means is
that, is that the student’s giving me permission to send you notification that
this bill is ready. It gives me an opportunity to send it to you and then
it gives you the, you know, the great opportunity to pay that on behalf of
your son or daughter, which we really appreciate. So, so once you get that,
you’ll be notified that the bill is ready, you go to the site, you pay
electronically and, and it’s done. Karen mentioned earlier that there are
sometimes folks that that are intimidated or simply, in my particular
case it would be hard for me to come up with that large chunk, you know, one time
and I would kind of like to spread it out over, over nine months so, the
academic year being nine months, we have three terms with, with big, big bills but
if you want to spread that over nine Months, those big bills over nine months
and pay, this is what we have available for you. It’s on, it’s on our website. It’s
called the installment payment plan. It acts like a budget opportunity for you
if you want to just say I, I wanna pay this 3,000 that’s my portion and I want to do it in the form of 1, 1,
1000, 1000, 1000 you can. The sign-up dates are listed here, and as you can see, basically
rather than paying the September December and March you’re paid a
little, one third, all of the nine months of the term. For the families that take this,
they really like it. It allows them to do the budgeting that, that that, they
want to do. A couple of things about this: I’ll just say that we, we don’t
charge any setup fee for this, so there’s no, there’s no disadvantage in doing it.
If you want to do it it’s there. We charge no setup fee, there’s no penalties if you, if you don’t
make your agreed-upon installment plan, as long as the final payment’s due by the
by the big bill due day, like for example Autumn would be September, and the
payments are all online, and as a courtesy you would be notified that you
signed up for it and the payment is due. What about overpayment? So from time to
time the student’s account may result in a credit balance. Perhaps you may say, how
could that possibly happen? It could be that the scholarship that’s aided is, is
more than what’s on the bill, meaning that Karen has given you more money than
that I’m actually billing for. In some cases students may waive a fee. For
example if you, if you, if you pay, went ahead and paid for the insurance and
then waived it by the, by the due day that would show up as a credit on the account
as an overpayment, and there are other options that might occur, but those are
the two typical ones. Now, what happens in those cases is that we will refund,
refund the student for any overpayment of aid. We process those three times a
week. So if the student is getting aid or excess loan funds, etc. those will all be processed in a very
timely manner, and we really recommend students sign up for direct deposit in
order to get the money the most, you know, the most efficiently and quickly you
know years ago this was a difficult, more difficult discussion than it is these
days because I don’t know anybody that uses paper checks or gets mail anymore, I
mean, you know, most, most, most everybody does
everything electronically, I mean, does anybody pay their bills with a check?
One? Not all of them, but you know it’s, it’s very, very rare, so we’re kind of the
same way, we don’t, we don’t really want to write a check to a student, especially
because it can get, they can get like 24 turnaround of funds if they sign up for
direct deposit. We encourage you, if your son or daughter doesn’t already have a
banking relationship, there are several on campus that that they should feel
comfortable with, Wells Fargo, Bank of America is at the mall, and we have the
Stanford Credit Union on campus as well. All are institutions that they can sign
up for, they get student discounts as far as fees are related, so it’s a great
opportunity, and then that’s how they would get their refunds for any excess.
If by chance there are excess in cash payments, it does happen sometimes, the
bills get crossed in the mail and maybe the parent’ll pay the $100 cable fee, and the
student pays it, and it shows up, we will hang on to that credit balance from cash
overpayments and use it to pay the incidental charges that come up over the
next months. If at the end of the academic year there’s still a credit
balance of overpayment there, we’ll refund it to the student. Alright, one other, and
we’re getting near our end of a time, but I do want to say, you know, one of the
things that,that we’re most proud of with our students is, as Karen mentioned
earlier, you know, those that take out loans aren’t, you know, anywhere near the
national average of what, you know, what the debt is. Most of our students leave
debt-free. A lot of this is, is because not only of their upbringing and how
they have been raised by, by you, but also we try to, to try and give them
opportunity to learn about cash. We may not be teachers in the classroom, but
we, we do try to help them with real-life issues like paying your bills, what’s it
mean when I sign a loan, what does it mean, in my loan, I don’t
have to go in to repay until after I leave school, all of these sorts of
things, so I don’t want to overwhelm anybody but we do have a very nice
online tool available for students that helps them with this what we call
financial literacy type stuff and it’s called CashCourse. You can, you can
link to it from either the financial aid website or the student financial website,
and this CashCourse is just a way to help your son or daughter, maybe even
budgeting, it’s very simple, just how, to how to budget my expenses so that I don’t go
out all in the first week and, and spend everything, and understand how to, you
know, money, money matters, so this is a very nice way to do
that. It’s kind of fun, and it’s, it’s, it’s easy to do, and we really want you to
know that it’s available there so you don’t have to feel like you’re, you’re
responsible for, for all the training in that area. I think I’m almost done, and
we’ll get into questions and answers. So, a couple of takeaways, if you get if you get nothing else, let’s,
let’s make sure we got these. It’s very important that you know what your
financial aid will and will not pay, alright? It’s also very important that
the bill is the student’s responsibility; you can be an authorized payer, but the
bill is the student’s responsibility. Third item: please, please, please, if the
student has, has, in your opinion, adequate health care, please make sure that they
waive health care by September 15. Students, set up direct deposit for credit
balances. This will get their money quicker, and it’s something that we want them
all to do, and I think that, I think five is my last takeaway, and that is,
please notify our Financial Aid Office if anything in your family situation
changes that could impact your financial aid award. So here’s how you get answers. This
is all available to you online. Financial Aid Office, you probably know where it is, they have a link. Student Financial
Services, we’re available, and at this time I’m gonna open it up for some questions.
We’ve got about 15 minutes, and we can start taking some questions now, and let
me say while you gather your thoughts, one of my colleagues from the Financial
Aid Office, Ron Diaz, is in the very back corner of the room. So we will answer
your questions now for the good of the Group, but if you have an individual
question we’ll hang out after that, after we close, and, and also because we are
streaming this we will repeat your Questions; it’s not that we didn’t
understand what you said, we’re repeating it for the video. I saw a hand right here. Yes ma’am. Correct. $203 per term so it’s time, times
three for the whole year. And the Campus Health Service Fee is included in the
cost of attendance for financial aid recipients automatically, already there
for everybody, that is a fee that’s not waivable. The health insurance we don’t
automatically include for everybody because as TJ said, most families have
coverage already, and health care expenses is something that we have
considered when we have calculated that expected parent contribution. But for our
low-income families especially, if you need Cardinal Care, if you want to take
Cardinal Care, you have to have health insurance, and we want you to have health
insurance too, and financial aid will cover those costs for especially for our zero
parent contribution families. Yes ma’am. OK, the question is what kind of jobs can
students do on campus? All kinds of things. Come work for me. Yeah, exactly. TJ hires students to work
in their office. We’ve got a crew of students who are working on that Mind
Over Money project, financial literacy Issues. A lot of administrative
departments and academic departments hire students for all kinds of things:
receptionist, basic coverage of things, so there’s, there’s the glamorous working in
a lab doing something exciting with a faculty member; there, there are paid
positions for doing things like that too. That might not happen till you’re a
junior and senior. And then there’s the good old, you know, working in the café,
in the bookstore, or you know, all kinds of jobs like that, so there are lots of
different opportunities. I would just add to that: we have in my office, we hire
students for the Mind Over Money initiative, the financial literacy
initiative, and it’s you know, the, the further my, well I’ll take it to further
my age gets from the students the less I really understand what’s going on,
right, you know, and I’m just being very frank with you so, so I rely on the
students to actually keep me, you know, informed so the students then are
actually mentoring the other students on, on things like, oh here’s how I did a
budget or here’s how I did a, and it’s a really great growth opportunity for our
students, and those are, those are the types of jobs, I mean, still it’s 10 hours a week, and we
understand when students need to be in class when there’s finals week and they
can’t work, so it’s, it’s a, it’s a very good opportunity there. One additional
thing out I’ll say about jobs is, you can’t look for one this weekend. Wait until September. A lot of departments
don’t even post their jobs until the first week of classes anyway so we’re
not ready for you yet; you’re not missing an opportunity by not looking early.
And online. The Career Education Center has a website where they post all that
information. OK yes sir, ok, ok, yes sir. I understand the question. Sure, sure. So the question is: Does Stanford, I’ll boil it down to, does Stanford offer any merit aid? And the answer is No. The only area where we offer aid that’s
not based on need are athletic scholarships, and as part of our
participation in the, in the Division One athletic program. So all of the aid that Stanford
awards is based on financial need and goes through the Financial Aid Office. And I
know that puts some of the, you know, our students are fabulous, all of them are
fabulous, and many of them are offered merit awards at other institutions, and
that puts you in a really difficult Position, and I’m sorry we can’t compete
with that kind of situation. Yes, yes sir OK, so the question is how, you know, if you choose to
live off campus or waive the health insurance how does that affect your
financial aid eligibility? So for most students we haven’t included health
insurance in your cost of attendance in the first place cuz we can expect you to
waive it. All of our students, first-year Students, are required to live in the
residence halls, and 98% of our students live in the residence halls all four
years, so it’s a rare situation actually when our undergraduates are living off
campus. But we find that this is not an inexpensive area in which to live, and so
actually students who are living off campus or on campus, their cost of attendance stays the same,
and if you don’t have charges on the account then those funds are released to
you at the start of each quarter to budget to meet your living expenses. Yes ma’am. The question is health insurance: do you have
to waive it every year? I don’t know the answer to that. The answer is yes. So at the time you waive it, you provide information about what
coverage you do have, so the Vaden Health Center is making sure you, that all of our
students have adequate coverage, so again it’s checking in with you every year to
make sure that’s still true. And adding onto that you do, you, you don’t have to
waive it every term of a given year, just one, so once you waive it, you’re out of it
for that entire year. There’s lots of reminders about it. So the question is
does, does, do they, I guess that would be Vaden, send emails to you to remind you to
waive, yes, there will be opportunities. I saw a hand here. Yes ma’am. So we’re not experts in health care, but I can tell you that there’s, Kaiser is local, yeah, there’s one in
Redwood City, there’s one, so not on campus. So your Campus Health Service Fee
that $200 a quarter that, that everybody pays allows you to go to Vaden when
you have a sore throat or just need to see a doctor, right? But if you need to
see a specialist, that’s when you need your insurance, and Kaiser, that means a
bus up to Redwood City or down to Santa Clara but it works. Way in the back, yes ma’am. Stanford President’s Scholars program. We haven’t had a President’s
Scholars Program for about 15 years. Yes sir. Does he have a choice to pay the full amount at the start of the year? So if he wants to pay all three quarters at once. That’s an interesting question. You, you can do that, but we do not discount, so it doesn’t, it
doesn’t really, it doesn’t, it doesn’t buy you anything to do that, but yes, so you
can, you can do that at my office. We would be more than happy to take that,
absolutely. Yes ma’am. Yes, let’s talk about Study Abroad for a second. So the question was, will financial aid help cover study abroad
opportunities? And yes, so Stanford has, and I hope you get a chance to visit
during this weekend the Bing Overseas Studies Program, and Stanford has
I think it’s thirteen centers around the world where our
students are studying abroad, and if you’re doing one of those Stanford
programs you pay your tuition to Stanford and your financial aid doesn’t
change, and as a matter fact we increase it a little bit to recognize that you’re
studying abroad and have travel expenses and those kinds of things, so absolutely
we encourage students to study abroad, this is a wonderful opportunity to do it. OK we have time for one more question.
Yes ma’am. So, the question is, for parents who are divorced, how do we look at that expected parent
contribution, what are we looking at? It’s actually very similar to what we’re
doing for, you know, two-parent households, single-parent households, we are looking at each parent’s
household separately and doing a very similar calculation to calculate an
expected contribution from each parent. So you know the federal financial aid
formula when you’re filling out the FAFSA doesn’t ask for information about
a non-custodial parent but when you complete the Profile for Stanford it
follows up and asks for that non-custodial parent information because
we believe very strongly that both parents should be involved in a child’s
education and are willing to take that responsibility. But when there are
situations where that’s not possible or something’s going on, we have those
individual conversations with families, but that calculation itself is actually
very similar forward for each family. OK we’ve come to the end of our time. We do
have, as Karen said, Ron Diaz back in the corner and Karen here if you want to ask
specific questions, we’ll hang around for just a few moments but thank you guys so

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