Transcript Document

To be courteous to others, we ask
that you silence or shut off your
phones.
Your consideration is appreciated.
Kim McCurdy
Higher Education Access Partner
724-734-8550
800-692-7392
[email protected]
Objectives…
• To know what types and sources of financial
aid are available
• To know how you could qualify
• To know what steps you need to take to
apply
• To know what other help is out there
• In short, to know how the process works,
where to find help, and what decisions you
may have to make.
Know the facts…
• Avoid financial aid scams.
• Seek FREE professional help – Financial Aid
Officer, PHEAA, High School Counselor,
Department of Education
• Understand the role of the financial aid office.
• There are many educational options from
which to choose.
Where does the $$$ come from?
Federal Government
State Government
School/Colleges
Private Scholarship
Sources:
HS Counselors
Clubs and organizations
Employers
Internet scholarship searches
Use FAFSA (and other
form(s) if needed)
Basis for awarding aid…
• Merit – scholarships usually based on:
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Academic or athletic ability
Special talent or achievement
Program of study
Family or ethnic background
• Need-based grants, loans, and employment
usually based on:
» Income
» Assets
» Other factors
Free Application for Federal
Student Aid (FAFSA)…
• Options for completing FAFSA
» Online at www.fafsa.gov
• FAFSA on the Web (FOTW) worksheet:
» Handy way to organize your information before doing
FAFSA online
» Only includes basic questions due to “skip logic”
• NOTE: If completing FAFSA online, print Confirmation Page
once FAFSA is submitted. It is proof when you submitted it.
Deadlines?
• Federal deadline – end of school year
• PA State Grant deadlines – May 1 & August 1
• School deadlines – vary by school. Some are
early. (Meet the earliest deadline!)
• NOTE: It is your responsibility to know your
deadlines and submit FAFSA on time. Don’t be
late. Better yet, be early!
And then?
• Schools/colleges receive financial aid
information and calculate financial need.
» School cost……………………. $26,000
» EFC…………………………….. - 3,000
» Financial need………………… $23,000
• FAO “packages” student based on financial
need and available funding (varies from
school to school)
• Financial aid award letter sent to student
How is EFC calculated?
• Parent contribution + student contribution = EFC
• Bulk of EFC comes from income
• Home, personal property, qualified retirement funds, and
value of life insurance excluded from assets
• Asset protection allowance (based on age of older parent,
or the parent if single parent household
• Parent asset contribution usually = roughly 6%
• Student income contribution = 50% of amount over $4,500
• Student asset contribution = 20% of assets
• Parent contribution divided by number of children in
college at the same time
Basic principles…
• Joint responsibility of the student and
parent(s) to pay, to the extent possible
• Need-based financial aid subjected to
federal formula to determine financial need
• Not all families qualify for need-based aid.
There is no guarantee that you will get any
need-based financial aid to pay for college.
Signing FAFSA online…
• Student and parent sign electronically with
PIN. Apply for PIN at www.pin.ed.gov (You may
choose your own or have it assigned)
• Or, you may apply for PIN while completing
the FAFSA
• Do NOT lose it. Write it down and store in a
safe place. Do NOT share it with anyone.
• Can request a duplicate PIN, if necessary.
FAFSA tips…
• Don’t mix answers for student and parent information
• Gender question is optional – answer it!
• Have federal income tax and other related information as references.
• If you have yet to file your federal income taxes, you can estimate
income information and update/correct later.
What happens next?
• Student Aid Report or Acknowledgment sent
to student electronically (review and make
necessary corrections)
• Information also sent to schools/colleges
listed, and to PHEAA.
• Student must complete State Grant Form
(SGF).
• Online at time of application or via Account
Access (must print and send signature page.
Account access…
Financial aid award letter…
• Is official notification from school about
financial aid, terms, and conditions.
• May be a paper letter or delivered through
college’s online system.
• Describes what must be done to accept or
reject any award.
• Discloses students rights, responsibilities,
and academic requirements.
What’s Next?
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Student submitted FAFSA on time.
Student received award letter with estimated aid.
What do you actually owe the school?
The direct costs to attend the school (usually
billed by term. i.e. semester, quarter, etc.)
- Grants, loans, scholarships
= What you owe the school (Actual Family Contribution)
What school costs are considered?
• Direct Costs:
» Tuition and fees
» Room and board
» Books and supplies
• Indirect Costs:
» Transportation
» Child care, if necessary
» Miscellaneous living expenses
Federal programs…
• Pell Grant (2010-11)*….must have high need ($5550)
• Campus-based aid**
FSEOG…………………
Perkins loan….………..
School determines
Federal work-study……
For most programs, student must be enrolled at least half-time.
* Goes to most financially needy students
** Usually goes to Pell eligible students
Teach Grant…
• Math, Science, Foreign Language, Bilingual
Education, Special Education, Reading Specialist,
Other field designated as high need.
• Teach 4 yrs. FT, within 8 yrs. of graduation.
• Teach in a low income high need area.
• $4,000/yr. to a max. of $16K, 3.25 GPA.
• Becomes an unsub. loan if obligations not met.
• Some schools do not participate or have own
methodologies for awarding (ex: to jrs/srs only)
Federal/State programs…
Robert Byrd Scholarship – up to $1,500/yr.
Student must:
Be in top 5% of class
Have 3.5 or higher GPA
1150 SAT or 25 ACT
File application.
Chafee Education and Training Grant – up to $4,000/yr.
Student must:
Be identified by DPW (is/was in foster
care or adopted out after age 16).
Be a PA resident attending an eligible
institution.
File a FAFSA and Chafee application.
State programs…
• PA State Grant* (full-time, in PA)…...….up to $3,541
• Out of state….. Up to $600 in CT, DE, MA, ME, OH,
RI, VT, WV, and DC
• All other states….up to $400 (NJ, NY, and MD = $0)
* Must be at least half-time to be eligible
State programs…
State Work-Study Program…go to www.pheaa.org
New Economy Technology Scholarship Program
(NETS)
Sci-Tech…up to $3,000/yr., 4yr. Program
Technology…up to $1,000/yr in shorter
program.
Federal Direct Stafford Loans…
• Stafford Student Loans:
» Subsidized = no interest in school or grace period
» Interest rate 7/1/11 – 6/30/12 = 3.4%
» Unsubsidized = interest accrues in school and grace
» Interest rate = 6.8%
» 6 mo. grace period and 10 year repayment
» Fees – 1.5% minus rebate of 1% = 0.5%
» Application process = FAFSA
» Master Promissory Note (MPN) – must be completed and
signed.
» Entrance Counseling
Federal Direct Student Loan Program…
Base Stafford
Loan Amount
Subsidized/
Unsubsidized
Additional
Unsubsidized Stafford
Loan Amount
Freshmen
$3,500
$2,000
Sophomores
$4,500
$2,000
Juniors, Seniors
$5,500
$2,000
Graduate or Professional
$8,500
$12,000
Dependent Students
(excluding students whose
parents cannot borrow PLUS)
Federal Direct PLUS loan…
• For parents or graduate level students
• May borrow up to full cost of education minus other financial
aid
• Credit check required
• Interest rate 7.9%
• Fees – 4% minus rebate of 1.5% = 2.5%
• Payments are generally $50 for every $1000 that you borrow
• Principal payment can be deferred while student is in school
(interest will continue to accrue)
• Apply at StudentLoans.gov or contact the school
Additional eligibility?
Independent Students
AND students whose
parents cannot borrow PLUS.
Base Stafford Loan
Amount Subsidized/
Unsubsidized
Additional
Unsubsidized Stafford
Loan Amount
Freshmen
$3,500
$6,000
Sophomores
$4,500
$6,000
Juniors, Seniors
$5,500
$7000
Graduate or Professional
$8,500
$12,000
Private Education Loans…
• Non-federal education loans should be explored only after
students have utilized their maximum federal education loan
eligibility. Federal educational loans which include Stafford
and PLUS Loans may have more favorable terms and
conditions than non-federal private educational loans.
Private Education Loans…
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Student borrows in his or her own name
Based on credit scoring and debt-to-income ratio
Repayment may be deferred until education completed
Fees, interest rates, loan amounts, and repayment
provisions vary by lender and are generally higher than
federal student loans.
• Co-signers usually required
• Compare loans before making choice and read the fine
print!
Think about…
• Keep borrowing in line with future earning power (estimate
loan payments at pheaa.org or youcandealwithit.com)
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Clearly determine who will pay for what.
How much debt can the family take on?
Give yourself a low-cost alternative.
Keep copies of all forms, including tax returns.
Reapply for financial aid every year – on time!
Institutional and Private Sources…
• Grants, Scholarships, Loans, Work, Discounts
• Merit/Need Based
• Separate Application
• Contact Admissions or Financial Aid Office
• Guidance Office
• Church Religious Affiliation
• Service/Fraternal Organizations
• Labor Unions/Trade Associations
• Retailers/Restaurants
• Websites
Decision Time
• Make some tough decisions:
» Choose a less expensive school, if necessary. The
important thing is the education received, not the school
attended.
» Live at home and commute
» Buy a less expensive meal plan
» Start at a community college
» Take advantage of dual enrollment courses in High
School
» GRADUATE ON TIME, OR SOONER!
Other financial resources…
• Institutional and/or private payment plans (check with college
as some of these plans start even before bills go out in July)
• Family resources (income, cash, savings, investments)
• Home equity loans (be careful, lien against your home!)
• Insurance policies, retirement funds, cash advances – not!
PHEAA Internet Resources…
Internet resources…
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Pheaa.org
Youcandealwithit.com
Myfedloan.org
Fastweb.com
Federalstudentaid.ed.gov
StudentLoans.gov
Fafsa4caster.ed.gov
Fafsa.gov (not FAFSA.com)
Federal Student Aid
Information Center:
(1-800-433-3243)
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Goarmy.com
Goarmy.com/reserve
1-800-go-guard.com
Navy.com
Airforce.com
Marines.com
Gocoastguard.com
Militaryscholar.com
Special circumstances…
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Divorced or separated parents
Stepparents
Adoptive parents
Foster parents
Legal guardians
Living with others
Recent death or disability
Reduced income
A word about
Independent students…
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Born before January 1, 1988?
Veteran (includes active duty personnel)?
Working on graduate level degree?
Emancipated minor in legal guardianship as determined by court?
Orphan, in foster care, or ward of the court at any time when student is
age 13 or older.
• Have legal dependents other than spouse?
• Student deemed homeless by proper authority?
Important reminders…
• Know what financial aid forms each school
requires.
» FAFSA required by all schools, PHEAA, and some
scholarship
» organizations
» SGF (State Grant Form) required for first year students (and
» may be requested for subsequent years)
» CSS Profile required by some postsecondary schools and
» scholarship organizations
• Know deadlines – this is critical
Please complete the survey card!