Transcript Early Awareness for Financial Aid Workshop

Financial Aid 101
Presented by Palisades High
School Counseling Office
Projected College Cost
Projected Average Costs for four years of tuition, room, board, and fees
at Public Universities
Source: Wells Fargo
Calculating College Costs
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Tuition
Fees (health, activity, lab, computer access)
Room
Board
Books
Supplies
Personal expenses
Transportation
Examples of College Costs
BCCC
Bloomsburg
Lehigh
Tuition & fees
$ 4,004
$ 7,456
$ 39,780
Room & board*
$ 1,500
$ 6,890
$ 10,520
Books & supplies*
$ 1,350
$ 1,200
$ 2,010
Personal Expenses
$ 1,350
$ 3,000
$ 2,500
Transportation
$ 2,600
$ 1,602
$
Total Costs
$10,804
$ 20,148
$ 55,310
500
Paying for Higher Education
Where the money comes from
 Family
 Student
 Federal government
 State government (PHEAA)
 Institutional Aid (college)
 Private sources (employer, fraternal
organizations)
The Trends
4%
4%
11%
Federal Loans
6%
19%
Institutional &
Other Grants
Federal Pell
Grants
State Grants
6%
50%
Federal CampusBased
Other Federal
Programs
Non Federal
Loans
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The trend in
financial aid has
been a growing
reliance on
borrowing for
college.
During the last 25
years, financial aid
has changed from
grant-based to
loan-based.
How to Calculate
Financial Need
Cost of school – EFC =
Financial Need
Demonstration of
financial need does
not guarantee that
all of the need will
be met through
financial aid.
EFC
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EFC is determined through a federal formula
It does not take into account credit card debt,
mortgage, car loans, disposable income
Considered as a reasonable expectation of what a
family should pay toward a child’s educational
expenses
An online tool is available to help you estimate
the EFC
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FAFSA4caster available at
www.FederalStudentAid.ed.gov
Types of Financial Aid
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Gift Aid (does not have to be paid back)
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Scholarships
Grants
Self – Help
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Loans
Work Study
A Financial Aid Package may include both types
Scholarships
Contact Colleges
Check parent & student clubs,
organizations, unions, employers
Check our website
Check other internet sites:
www.fastweb.com
www.collegeboard.com
www.finaid.org
Need Based vs. Merit Based Aid
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NEED BASED AID
Eligibility is determined
by evaluation of
family’s finances
Done by application
(FAFSA)
May require additional
forms (CSS profile)
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MERIT BASED AID
Awarded by colleges
and private sources
Include academic,
leadership, artistic,
music, single parent
and returning adult
student awards
Gift-aid vs. Self-help
Self-help
Gift Aid
100
80
90
59
63
98
76
67
20
0
51
60
60
40
24
33
49
40
10
2
41
37
Bucks Bucks ESU
ESU
PSU
PSU Lehigh Lehigh
(need- (non- (need- (non- (need (non- (need (nonbased) need based) need based) need based) need
based)
based)
based)
based)
General Eligibility
Requirements for Federal Aid
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Submit a FAFSA form by deadline
Have a high school diploma
Be enrolled as a regular student in an eligible degree
program at an eligible institution at least half-time
US Citizen
Valid Social Security number
Make satisfactory academic progress
Sign a certifying statement that funds will be used
appropriately
Not be in default of any previous educational loan
Be registered with the Selective Service
Federal Grants
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Federal
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Pell Grant
Academic Competitiveness Grant (ACG) or
SMART Grant
Teach Grant
GI Bill for post 9/11
Yellow Ribbon Program
American Opportunity Tax Credit
Loan Forgiveness Program
State & Institutional Grants
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State
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PHEAA Grant
PHEAA Summer State Grant
New Economy Technology Scholarship (NETS)
Educational Assistance Program (Nat’l Guard)
Robert C. Byrd Honors Scholarship
Post-secondary Education Gratuity Program
Private
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Institutional Grants
Work Study
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Employment on or off-campus
Rate of pay determined by College’s
Financial Aid Office
Student gets a paycheck. Student must
decide whether to put toward tuition or
spend
This amount is not calculated as
student income in next year’s FAFSA
Student Loans
Federal Direct Stafford Loans
Subsidized
Unsubsidized
State
Alternative
Direct PLUS
Home Equity
Examples of Financial Aid
Example #1
School A
School B
School C
School D
Cost
$8,500
$18,000
$23,000
$34,000
-EFC
2,000
2,000
2,000
2,000
--------------------------------------------------------------------------------------------------------------= Need
$6,500
$16,000
$21,000
$32,000
Pell Grant
$2,360
$ 2,360
$ 2,360
$ 2,360
PHEAA Grant
$1,300
$ 4,000
$ 4,300
$ 4,700
SEOG Grant
-0-0-0$ 2,000
Scholarships
-0$ 500
$ 2,000
$17,950
Perkins Loan
-0$ 1,300
$ 2,000
-0Stafford Loan – Sub
$2,240
$ 3,500
$ 3,500
$ 2,990
Stafford Loan - Unsub
$1,260
-0-0$ 510
Work Study
-0$ 1,200
$ 1,500
$ 2,000
--------------------------------------------------------------------------------------------------------------Total Aid
$7,760
$12,860
$15,660
$32,510
Remaining Need (Unmet need + EFC)
$ 740
$ 5,140
$ 7,340
$ 1,490
Applying for Financial Aid
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Institutional Applications
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CSS Profile www.collegeboard.com
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Check institution’s publications/website
Some deadlines will be different than FAFSA
Only available online
$9 application fee, $16 for each college
Only send to schools that require it
FAFSA
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Online application is preferred
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Must get a pin for student and parents
www.pin.ed.gov
Paper will be available in limited quantities
Can not file until after Jan 1
Deadline is May 1, but recommend filing by February 15
FAFSA – After you apply
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PHEAA Status Notice
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Sent to all first time applicants
Student/parent completes only the items
requested – mandatory
SAR (Student Aid Report)
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If done by paper, will be via paper; if done
via web, will be sent via e-mail
Review for accuracy
Summary
Ability to pay vs. willingness to pay