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: 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: 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: Tuition and Fees Room & board Books & supplies Personal expenses Transportation allowance 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 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 State The College/University 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 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 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 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!