FINANCIAL AID: The Essentials and then some….. Financial Aid Financial Aid = Assistance for...
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Transcript of FINANCIAL AID: The Essentials and then some….. Financial Aid Financial Aid = Assistance for...
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
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
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
Look at this as a long term investment and not
just a one year expense
Merit-Based Aid vs. Need-Based Aid
Merit-Based Aid = aid given to students strictly on the basis of merit. Does not have to be repaid, usually renewable from year to year.May be based on: Academic record Special characteristics Skills or talents Involvement in school or community
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.
Filing for AidSome forms you may 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
(For certain Profile schools you may be requested to submit tax or other institutional forms through IDOC)
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
Conditions to determine independency 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 At age 13 or older were both parents deceased, was
the student in foster care or a dependent/ward of the court
Emancipated Minor as determined by a court Determination that student was homeless by a
recognized authority
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 should be provided (if equal time, information of the parent that provides the most financial support)
If the custodial parent is remarried… The financial data of new spouse must be
included on the FAFSA
How/When to File the FAFSA?
How To Complete the FAFSA:
On-line at www.fafsa.ed.govComplete as soon as possible after January 1, or file electronically at www.fafsa.ed.gov beginning January 1 prior to the fall for which student seeks aid
USE THE “FAFSA ON THE WEB WORKSHEET” to assist in the completion of the on-line FAFSA
FAFSA is free – do not use any site that charges a fee to complete the 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 information and make
corrections over Internet at www.pin.ed.gov Can request a PIN at any time – SUGGEST YOU
DO SO NOW! If you have a PIN from before you may use that
PIN
Filing The FAFSA Do not wait to be accepted to the school to
complete the FAFSA Based on prior calendar year tax
information May use estimated income and taxes PA residents will use the FAFSA for state
grant consideration; state will follow up with an additional form once FAFSA is complete
MAKE COPIES OR PRINT OUTS OF EVERY FORM!
Financial Need
Cost of Attendance includes:
Tuition & 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 (FAFSA does not ask for home value or value of retirement
funds but school or Profile may ask for this information)
Learn more about how the EFC is calculated
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
or• Go to www.finaid.org and click on Calculators and select Needs Analysis
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 need-based aid
only Register to complete form at www.collegeboard.
com Fee $25 for application and 1st school report; $16
for each additional 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 HS 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):
$4,731 max/year for 2008-2009 yearPell Grant recipients 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 - 5,500/year; 5% interest rate
Federal Work Study
Colleges have set allocations for campus based
funds
(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 6.0% currently; 5.6% effective July 1, 2009 for subsidized;
6.8% for unsubsidized
Interest rate reset each July 1st
Amount varies by class
$3,500 for freshman
$4,500 for second year students
$5,500 for third year and beyond (undergrads)
Additional $2,000 unsubsidized in addition to the above amount is effective May,
2008
Federal
PLUS Loan Loan in parent’s name 8.5% Interest Rate Repayment begins 60 days after 2nd
disbursement; deferments are now available 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): $4,700
max/year for 2008-09 for students attending a PA school; however funding did not allow a max grant of $4,700 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 mid-May;
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 Athletic Ability*SAT’s Geographic DiversityAP Courses Legacy (child of alumniActivities Academic TrackTalent H.S. Attended
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 for eligibility
for each school
College may be the largest funding source
Complete college/university application for aid Private schools may require CSS Profile (fee charged-
$25 to register & provide data to first school; $16 for
each additional college or program); 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: www.pasfaa.org, www.Nasfaa.org,
www.finaid.org Books: Peterson’s Guide, Barron’s Guide to
Colleges, “Don’t Miss Out” (Octameron Assoc.) Guidance Office Computer Programs
Comparing Aid OffersSchool A School B School C School D
COST $8500 $18000 $23000 $45000
EFC $2000 $2000 $2000 $2000
NEED $6500 $16000 $21000 $43000
PELL Grant $2360 $2360 $2360 $2360
SEOG Grant $0 $0 $2000 $3000
PA State Grant $1900 $4000 $4700 $4700
Perkins Loan $0 $2000 $2000 $3000
Work Study $0 $1000 $1500 $2500
Stafford Loan - Subsidized
$2240 $3500 $3500 $3500
Institutional Grant $0 $0 $4500 $20000
Unmet Need $0 $3140 $440 $3940
Comparing Aid OffersSchool A School B School C School D
COST $8500 $18000 $23000 $45000
EFC $12000 $12000 $12000 $12000
NEED $0 $6000 $11000 $33000
PELL Grant $0 $0 $0 $0
SEOG Grant $0 $0 $0 $0
PA State Grant $0 $600 $1100 $1400
Perkins Loan $0 $0 $2000 $2000
Work Study $0 $0 $1500 $2500
Stafford Loan - Subsidized
$0 $3500 $3500 $3500
Institutional Grant $0 $1900 $2000 $21000
Unmet Need $0 $0 $900 $2600
Comparing Aid Offers Will the aid package change if outside scholarships are
received?
What factors can cause changes to my eligibility in the future?
(i.e.- how will my package change if there is a change in the
number in college, what if my income increases)
Is there room for movement in my financial aid award?
Look at the Bottom line for each school carefully comparing
grants, loans and work opportunities as well as merit versus
need based programs
Consider possible changes in your family situation over the next
four years & consider how that can affect your ability to pay not
only in the next four years but over the years all your children
are in college
Don’t Forget! Research Outside Scholarships
(see www.pasfaa.org or finaid.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 additional forms they
require
Don’t be afraid to call the financial aid office at the school(s) you are
interested in!
GOOD LUCK!