Transcript Training

FINANCIAL AID:
Demystifying The Process
Presentation Prepared By:
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 Selfhelp aid
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
Merit-Based Aid
vs. Need-Based Aid
 Merit-Based Aid = aid given to students strictly
on the basis of merit. May be based on:
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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.
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
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
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
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:
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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
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
How/When to
File the FAFSA?
 Ways To Complete the FAFSA:
 On-line at www.fafsa.ed.gov OR
 Paper - available from guidance offices
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.
HIGHLY RECOMMEND FILING ON-LINE
 USE THE “FAFSA ON THE WEB
WORKSHEET” to assist in the completion
of the on-line FAFSA
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!
Filing The FAFSA
 Based on prior calendar year tax
information
 May use estimated income and taxes
 Don’t wait to be accepted to college to
complete
 PA residents must file by May 1 for
state grant consideration for following
fall term; state will follow up with
student
 MAKE COPIES OR PRINT OUTS OF
EVERY FORM!
Financial Need
Cost of Attendance
-Expected Family Contribution (EFC)
Financial Need
Financial Need
Cost of Attendance includes:
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Tuition and Fees
Room & board
Books & supplies
Personal expenses
Transportation allowance
What Is The EFC?

Basis of financial aid package
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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
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
Learn more about the EFC
•Utilize a Financial Aid Calculator to
familiarize yourself with more details and to
get an early estimate of your EFC
•Go to www.collegeboard.com and click on
tab “For Parents” and select Financial Aid
Calculator from the options on the left, then
select EFC Calculator and insert your
personal information
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 needbased aid only
 Register to complete form at
www.collegeboard.com
 Fee $5 plus $18 per school
Help! Sources of Aid

Federal
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State
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The College/University
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Outside Organizations
 Civic organizations (ex.-local Rotary Club),
parent’s employer, high school
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
Federal Aid
 Pell Grant (need-based):
 $4,050 max/year for 2006-2007 year
Pell Grant recipients who are U.S. citizens
might also be eligible for:
 Academic Competitiveness Grant (ACG)
$750 1st year; $1,300 2nd year for
students who took rigorous HS
curriculum
 National Science and Mathematics
Access to Retain Talent Grant (SMART)
$4,000 for 3rd and 4th year students in
physical, life or computer sciences,
math, technology, engineering or critical
foreign languages
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!)
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 1st
 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)
Federal
Plus Loan (Parent Loan for
Undergraduate Students)
 Loan in parent’s name
 8.5% Interest Rate
 Repayment begins 60 days after 2nd
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
State
 Pennsylvania State Grant (for PA Residents):
$4,500 max/year for 2006-07 for students
attending a PA school
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 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 midMay; student must complete and return to PHEAA
Check www.pheaa.org for other grant programs
College/University
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Colleges may offer significant amount of funds
to assist students
Factors that may influence institutional aid,
particularly merit-based aid:
Academics
SAT’s
AP Courses
Activities
Academic Track
H.S. Attended
Athletic Ability*
Geographic Diversity
Legacy (child of
alumni)
Talent
Class Rank
*Athletic awards only offered by NCAA Division I and
Division II schools only.
College/University
Investigate Sources of Aid
 Determine deadlines and criteria
 Complete college/university application for aid
 Private schools may require CSS Profile
(fee charged-$5 to register; $18 per school
report); register at www.collegeboard.com
Outside Sources

Private sources of scholarship funds
include:
 Service/Fraternal Organizations
 Employers/Business
 Churches/Religious Groups
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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
Comparing Aid Offers
School A
Cost
$7,000
EFC
$3,000
Need
$4,000
School B
$15,800
$3,000
$12,800
School C
$35,000
$3,000
$32,000
Pkg. #1: $4,000 Grants
$6,000 Grants
$6,800 Loans
$26,000 Grants
$4,000 Loans
$2,000 Work
Pkg. #2
$2,000 Grants
$2,000 Loans
$5,500 Grants
$5,000 Loans
$1,000 Work
$17,000 Grants
$ 8,000 Loans
$ 1,500 Work
Pkg. #3
$1,000 Grants
$1,500 Loans
$ 500 Work
$4,000 Grants
$4,000 Loans
$11,000 Grants
$ 9,000 Loans
$ 1,500 Work
Comparing Aid Offers
 Will package change if outside scholarships
are received?
 What factors will cause change? (i.e.number in college, income increase)
 Is there room for movement? Ask the F.A.
Office
 Look at the Bottom line for each school
carefully comparing grants, loans and work
opportunities
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 add’l.
forms they require.
 Don’t be afraid to call the financial aid office at the
school(s) you are interested in!