Transcript Financial Aid Presentation - Ramapo Indian Hills Regional

FAFSA Presentation
2012-2013
Academic Year
Goals of Financial Aid
• Access to Post-Secondary Education
• Choice among Post-Secondary Institutions
Principles of Financial Aid
• Student and parent have the primary
responsibility for funding post-secondary
education to the extent they are able.
• Families will be treated equitably and
consistently by the needs-analysis formula.
General Eligibility
Requirements
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U.S. citizen or an eligible non-citizen
High school diploma or equivalent
Certificate, diploma, or degree program.
Maintain satisfactory academic progress.
Not be in default or owe refund
Registered with the Selective Service.
Applying for Aid
• Applications & Deadline dates
• DO NOT WAIT to be accepted for
admission.
• Respond quickly to additional requests.
• Explore ALL funding resources.
Application Hints
• Read all instructions carefully
• Assemble all needed materials
• Name must Match
Social Security Card
• Complete every question
• Obtain all signatures or PIN #’s
Free Application for Federal
Student Aid (FAFSA)
• File on line www.fafsa.ed.gov
• Request PIN www.pin.ed.gov
• Title IV College Code
– Penn State 003329
FAFSA on the Web’s Homepage
Family Educational Rights and
Privacy Act (FERPA)
• Financial information submitted is
protected.
• Data is treated as confidential.
• Authorization for release to a third party.
How is Aid Awarded?
• Need-Based
– Financial Need
• Grants
• Merit-Based
– Academic Ability
– Program of Study
– Special Talent/Achievement
• Scholarships
What is “Financial Need”?
• Cost of Attendance
• - Expected Family Contribution
• = Financial Need
Cost of Attendance
Tuition and Fees
Room and Board
Books and Supplies
Transportation
Personal Expenses
Expected Family contribution
(EFC)
• The EFC is a measure of how much the
student and his or her family can be
expected to contribute to the cost of the
student’s education. The EFC is calculated
according to a formula specified in the law.
Federal Expected Family
Contribution
• Total taxed & untaxed income of family.
• Assets, savings, investments, business or farm
investment, but not home equity
• Parents contribution is approx.- 12%
• Students contribution is approx.- 20%
• Number of children or other dependents enrolled
on at least a half time basis. Excludes parent.
Types of Aid
Gift Aid:
Scholarship
Grants
Self-Help Aid:
Loans
Employment
Sources of Aid
• Federal
– Pell, SEOG, Perkins, Work-Study and Stafford
Loans
• State
• Institutional
– Internal scholarships
• Private
– Local & Civic organizations
Federal Pell Grant
• EFC determines eligibility (0-5273)
• Award amount based upon enrollment & school
costs; range $555-$5550
• Verification - maybe selected by Federal
Government
• Reply promptly w/additional documents
• Special Circumstances
Institutional Aid
• Grants, scholarships, loans, employment or
discounts
• Institutional application
• Know deadline date
• Contact Financial Aid Office for details
Campus-Based Aid
• Federal Work Study (FWS)
• Federal Perkins Loan
• Federal Supplemental Educational
Opportunity Grant (SEOG)
Federal Work Study (FWS)
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Eligibility: Undergraduates & Graduates
Check “Yes” on FAFSA
Hourly rate and bi-weekly payment
Average award $3000
Federal Perkins Loan
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Eligibility: Undergraduates & Graduates
Interest Rate: 5%
Nine month grace period
Deferments & Cancellation Provisions
Average award $2200
Federal Supplemental
Educational Opportunity
Grant (SEOG)
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Eligibility: Students with exceptional need
Priority to Pell Grant Recipients
Undergraduates only
Average award $800
Federal Student Loan Program
• Subsidized
– Federal government pays interest
– Fixed Interest rate @ 3.4%
• Unsubsidized
– Student pays interest or has capitalized
– Fixed Interest rate @ 6.8%
Federal Loans Con’t
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Freshmen
$3500/2000
Sophomore
$4500/2000
Junior/Senior
$5500/2000
Graduates
$8500/12,000
Disbursed ½ fall and ½ spring
Master Promissory Note
(MPN)
• Sign MPN with PIN
• The MPN is good for 10 years
• Complete current FAFSA
Electronic Fund Transfer
(EFT)
• Eliminates paper checks
• Funds direct deposit
Federal PLUS Loan
• Parents of dependent students
• Interest Rate capped @ 8.5%
– Repayment 60 days after disbursement
– Sign Parent Plus MPN
– Apply within 60 days of school
start date
• www.psu.edu/studentaid
Alternative Loans
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The student is the borrower
Various Lenders
Interest rates vary
Contact school for preferred lenders
Private Sources
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Service/Fraternal
Employers/Business
Churches/Religious
Source Books
– Outstanding Students of America
– Financial Aid for Higher Ed
– Octameron Associates
• Internet – Fastweb & PHEAAMentor
Private Sources con’t
• United States Armed Forces
– United States Army Reserve
– Veterans or ROTC
– Money For College
• Montgomery GI Bill
– Student Loan Repayment
• Contact local recruiter for specific details
Be Scholarship Search Savy
• No Credit Card #’s
• No Fees
• No 900 #’s
Questions, Comments,
Concerns