1	FINANCIAL AID: Demystifying The Process Presentation Prepared By:
2	Goals of Financial Aid Primary goal is to assist students in paying for college & is achieved by: Evaluating family’s ability to pay educational costs Distributing limited resources in an equitable manner Providing balance of gift aid and Self-help aid
3	Financial Aid Financial Aid = Assistance for students to fund their education in the form of: Grants – money that does not have to be repaid Scholarships – money that does not have to be repaid Loans – money that does need to be repaid Employment – on or off campus job
4	Before you begin…. Don’t assume that more expensive schools will necessarily cost you more! Financial aid may allow you to afford a school you previously did not consider Involve your child in the process Discuss your ability to pay for college with your child before the admission deposit deadline
5	Merit-Based Aid vs. Need-Based Aid Merit-Based Aid = aid given to students strictly on the basis of merit. May be based on: Academic record Special characteristics Skills or talents Involvement in school or community - Does not have to be repaid; usually renewable from year to year. Need-Based Aid = aid awarded to students on the basis of financial need. Re-evaluated each year as financial situations of a family may change.
6	Filing for Aid Some forms you may might be asked to complete Free Application For Federal Student Aid (FAFSA) Institutional Application for Aid U.S. or Puerto Rico Tax Return W-2 forms College Board Profile Non-custodial parent information Business or Farm Supplement Other forms as required by the school
7	What Is The FAFSA? FAFSA = Free Application For Federal Student Aid Application for federal and state aid (may be application for college aid as well, depending upon the school) File one FAFSA per year per student (not one per college) List up to six colleges (four if filing on paper)--Title IV Code or school name; schools receive info. Electronically Need to file a FAFSA each year you want to receive aid
8	Whose Information is on the FAFSA? Dependent: parental & student financial data required Independent: student & spouse financial data required Student must meet one of following criteria to be considered independent: 24 years of age Veteran of the U.S. Armed Forces Enrolled in a graduate or professional program Married Orphan or ward of the court until age 18 Have legal dependents that student provides at least 50% support for
9	Whose Information is on the FAFSA? If the parents are divorced or separated…. When filing FAFSA, financial information of parent that student resides with for more than half of the year (if equal time, information of the parent that provides the most financial support) should be provided If the custodial parent is remarried… The financial data of new spouse must be included
10	How/When to File the FAFSA? How To Complete the FAFSA: On-line at www.fafsa.ed.gov Complete as soon as possible after January 1, or file electronically at www.fafsa.ed.gov beginning January 2 prior to the fall for which student seeks aid. USE THE “FAFSA ON THE WEB WORKSHEET” to assist in the completion of the on-line FAFSA
11	FAFSA On The Web If filing over the Internet, 2 choices: Parent and student mail signature page in or The Parent and student both need to apply for PIN # at www.pin.ed.gov PIN serves as e-signature PIN will be mailed or e-mailed to person who requested the PIN Use PIN to submit info. and make corrections over Internet at www.pin.ed.gov Can request a PIN at any time – SUGGEST YOU DO SO NOW!
12	Filing The FAFSA Don’t wait to be accepted to the school to complete the FAFSA Based on prior calendar year tax information May use estimated income and taxes PA residents will use the FAFSA for state grant consideration; state will follow up with an additional form once FAFSA is complete MAKE COPIES OR PRINT OUTS OF EVERY FORM!
13	Financial Need Cost of Attendance -Expected Family Contribution (EFC) Financial Need
14	Financial Need Cost of Attendance includes: Tuition and Fees Room & board Books & supplies Personal expenses Transportation allowance
15	What Is The EFC? Basis of financial aid package EFC is determined by a federal formula that calculates need via the FAFSA EFC & Financial Need are guidelines used by schools to determine aid package EFC not necessarily = to out-of-pocket cost of family
16	How Is The EFC Calculated? Primary Factors Looked At: Taxable Income: AGI (wages earned+interest dividends+other taxable income) Untaxed income & benefits Number in family Number of dependent children in college Assets
17	Learn more about the EFC
18	Institutional Methodology Some schools may require CSS Profile Form Primarily private schools Collects supplemental data (i.e.-home equity, financial data of non-custodial parent, value of retirement plans, etc.) Calculates IM (Institutional Methodology) Basis for awarding institutional need-based aid only Register to complete form at www.collegeboard.com Fee $25 for application and 1^st school report; $16 for each additional school
19	Help! Sources of Aid Federal State The College/University Outside Organizations Civic organizations (ex.-local Rotary Club), parent’s employer, high school
20	Federal Aid Must: Be a U.S. citizen or eligible non-citizen Have h.s. diploma or equivalent Be matriculating in a degree/certificate program at accredited Title IV school Be registered with Selective Service if a male between ages of 18 and 25 Free of drug possession or sale conviction
21	Federal Aid Pell Grant (need-based): $4,310 max/year for 2007-2008 year Pell Grant recipients who are U.S. citizens might also be eligible for: Academic Competitiveness Grant (ACG) $750 1^st year; $1,300 2^nd year for students who took rigorous HS curriculum National Science and Mathematics Access to Retain Talent Grant (SMART) $4,000 for 3^rd and 4^th year students in physical, life or computer sciences, math, technology, engineering or critical foreign languages
22	Federal Campus-Based Aid SEOG Grant-exceptional need - $100 - $4,000/year (typically have to receive Pell) Perkins Loan-exceptional need - $100-4,000/year; 5% interest rate Federal Work Study Colleges have set allocations - (student may receive award from one school & not another!)
23	Federal Stafford Loan In student’s name/no credit check Available to all students, regardless of need Repayment begins 6 months following graduation or withdrawal Competitive interest rate 6.8% Interest rate reset each July 1^st Amount varies by class $3,500 for freshman - NEW for 2007-08 $4,500 for second year students - NEW for 2007-08 $5,500 for third year and beyond (undergrads)
24	Federal Plus Loan (Parent Loan for Undergraduate Students) Loan in parent’s name 8.5% Interest Rate Repayment begins 60 days after 2^nd disbursement Credit check involved Borrow up to cost of attendance minus other financial aid student is receiving Add’l. unsub available to students whose parent(s) are denied on PLUS Loan due to poor credit
25	State Pennsylvania State Grant (for PA Residents): $4,700 max/year for 2007-08 for students attending a PA school Eligibility based on need and family’s unique circumstances Max PHEAA Grant that can transfer out-of-state, $600, to: CT, DE, MA, ME, OH, RI, VT, DC, WV $400 maximum transfers to other states, except NJ, MD and NY--$0 transfers there (some exceptions) Student must file FAFSA by May 1 for upcoming fall term PHEAA sends student status notice beginning mid-May; student must complete and return to PHEAA Check www.pheaa.org for other grant programs
26	College/University Colleges may offer significant amount of funds to assist students Factors that may influence institutional aid, particularly merit-based aid: Academics Athletic Ability* SAT’s Geographic Diversity AP Courses Legacy (child of Activities alumni) Academic Track Talent H.S. Attended Class Rank *Athletic awards only offered by NCAA Division I and Division II schools only.
27	College/University Investigate Sources of Aid Determine deadlines and criteria for eligibility for each school Complete college/university application for aid Private schools may require CSS Profile (fee charged-$25 to register & provide data to first school; $16 for each additional college or program); register at www.collegeboard.com
28	Outside Sources Private sources of scholarship funds include: Service/Fraternal Organizations Employers/Business Churches/Religious Groups Sources of Information Internet: see www.pasfaa.org for helpful websites Books: Peterson’s Guide, Barron’s Guide to Colleges, “Don’t Miss Out” (Octameron Assoc.) Guidance Office Computer Programs
29	Comparing Aid Offers School A School B School C Cost $7,000 $15,800 $35,000 EFC $3,000 $3,000 $3,000 Need $4,000 $12,800 $32,000 Pkg. #1: $4,000 Grants $6,000 Grants $26,000 Grants $6,800 Loans $4,000 Loans $2,000 Work Pkg. #2 $2,000 Grants $5,500 Grants $17,000 Grants $2,000 Loans $5,000 Loans $ 8,000 Loans $1,000 Work $ 1,500 Work Pkg. #3 $1,000 Grants $4,000 Grants $11,000 Grants $1,500 Loans $4,000 Loans $ 9,000 Loans $ 500 Work $ 1,500 Work
30	Comparing Aid Offers Will package change if outside scholarships are received? What factors can cause changes to my eligibility? (i.e.-number in college, income increase) Is there room for movement in my financial aid award? Ask the F.A. Office Look at the Bottom line for each school carefully comparing grants, loans and work opportunities Consider possible changes in your family situation over the next four years & consider how that can affect your ability to pay
31	Don’t Forget! Research Outside Scholarships (see www.pasfaa.org for websites) Complete the FAFSA form as soon as possible after January 1 of senior year. Remember to keep copies of every financial aid form that you complete! Check with each college/university to see what additional forms they require. Don’t be afraid to call the financial aid office at the school(s) you are interested in!