Financing a College Education
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Transcript of Financing a College Education
Financing a College Financing a College EducationEducation
Financial AidFinancial Aid The most important decision to make The most important decision to make
about college attendance is finding about college attendance is finding the right school that will provide the the right school that will provide the educational program most suited to educational program most suited to the student’s needs.the student’s needs.
How to finance that education is the How to finance that education is the next issue. next issue.
Financial AidFinancial Aid Financial aid is funding provided to the Financial aid is funding provided to the
student to assist with educational student to assist with educational expenses.expenses.
The family is considered to be the first The family is considered to be the first source of financial support.source of financial support.
The other major sources of financial aid The other major sources of financial aid are the federal government, state are the federal government, state government, colleges, and private government, colleges, and private foundations, organizations and agencies.foundations, organizations and agencies.
Financial Aid SourcesFinancial Aid Sources
Cost of EducationCost of Education What does is really cost to attend What does is really cost to attend
college?college?
Expenses include:Expenses include:– TuitionTuition -Fees -Fees– RoomRoom -Board -Board– Books Books -Supplies -Supplies– Transportation -Personal ExpensesTransportation -Personal Expenses
Cost of AttendanceCost of Attendance
Cost of EducationCost of Education Cost of education may vary by school Cost of education may vary by school
type, academic program, academic level, type, academic program, academic level, state residency, and program of study.state residency, and program of study.
Be very careful when comparing college Be very careful when comparing college costs! Hard Costs (tuition, fees, room and costs! Hard Costs (tuition, fees, room and board) versus Total Costs (also includes board) versus Total Costs (also includes books, personal expenses, and books, personal expenses, and transportation).transportation).
Cost of EducationCost of Education Private College or UniversityPrivate College or University
– $20,000 to $40,000$20,000 to $40,000 PA State Related UniversityPA State Related University
– $17,000 to $20,000$17,000 to $20,000 PA State Owned UniversityPA State Owned University
– $13,000 to $14,500$13,000 to $14,500 PA Community CollegePA Community College
– $1,400 to $2,500 (Tuition Only)$1,400 to $2,500 (Tuition Only)
Cost of EducationCost of Education
Cost of EducationCost of Education Don’t get sticker shock!Don’t get sticker shock!
High cost schools often have High cost schools often have substantial amounts of institutional substantial amounts of institutional aid that can provide adequate aid that can provide adequate financial support.financial support.
Application ProcessApplication Process Find out from each institution what Find out from each institution what
financial aid application(s) are required financial aid application(s) are required and the deadline date for filing them.and the deadline date for filing them.
Do not wait until you are admitted to file Do not wait until you are admitted to file for financial aid.for financial aid.
Everyone Everyone mustmust complete the 2004-2005 complete the 2004-2005 Free Application for Federal Student AidFree Application for Federal Student Aid (FAFSA).(FAFSA).
FAFSAFAFSA
FAFSA on the WebFAFSA on the Web
Application ProcessApplication Process Other financial aid forms may include Other financial aid forms may include
a CSS a CSS ProfileProfile or an institutional or an institutional application. application.
More information on scholarship More information on scholarship applications will be presented at a applications will be presented at a later point.later point.
Application ProcessApplication Process Keep copies of all forms that you file.Keep copies of all forms that you file. Keep copies of all documents used to Keep copies of all documents used to
complete the applications.complete the applications. Don’t miss any deadline dates.Don’t miss any deadline dates. Apply for US Department of Apply for US Department of
Education PIN numbers for both the Education PIN numbers for both the student and one of the parents student and one of the parents before you start.before you start.
Completing the FAFSACompleting the FAFSA Can complete the form using Can complete the form using
estimated data if you have not yet estimated data if you have not yet filed your 2003 federal income tax filed your 2003 federal income tax returns.returns.
Pink sections are for the student and Pink sections are for the student and purple sections are for the parents.purple sections are for the parents.
Follow instructions carefully!Follow instructions carefully!
Expected Family ContributionExpected Family Contribution The FAFSA data is used to calculate The FAFSA data is used to calculate
an Expected Family Contribution an Expected Family Contribution (EFC) which measures the financial (EFC) which measures the financial ability of the family to contribute to ability of the family to contribute to educational expenses.educational expenses.
The major determinants of EFC are The major determinants of EFC are income, assets, household size, and income, assets, household size, and number in college.number in college.
Financial NeedFinancial Need Financial need is determined by Financial need is determined by
subtracting the EFC from the cost of subtracting the EFC from the cost of education.education.
Cost of EducationCost of Education - Expected Family Contribution - Expected Family Contribution Financial NeedFinancial Need
Financial NeedFinancial Need College A College B College CCollege A College B College C
40,00040,000 19,000 19,000 14,000 14,000 5,0005,000 5,0005,000 5,0005,000 35,000 14,000 9,00035,000 14,000 9,000
Colleges try to meet the financial Colleges try to meet the financial need of the student.need of the student.
Financial Aid ProgramsFinancial Aid Programs Financial aid comes in three major Financial aid comes in three major
types:types:
– Grants and ScholarshipsGrants and Scholarships– Student EmploymentStudent Employment– Educational LoansEducational Loans
Financial Aid ProgramsFinancial Aid Programs Grants are based on financial need. Grants are based on financial need.
Major grant programs include:Major grant programs include:
– Federal Pell GrantFederal Pell Grant– Pennsylvania State GrantPennsylvania State Grant– Federal Supplemental Educational Federal Supplemental Educational
Opportunity GrantOpportunity Grant
Financial Aid ProgramsFinancial Aid Programs Student employment offers the Student employment offers the
opportunity to work and earn money opportunity to work and earn money while also gaining on-the-job while also gaining on-the-job experience.experience.
Positions available both on and off Positions available both on and off campus.campus.
Educational LoansEducational Loans Educational loans are funds that are Educational loans are funds that are
borrowed now to be repaid in the borrowed now to be repaid in the future. These programs represent future. These programs represent the largest available source for the largest available source for student aidstudent aid
Terms and conditions vary among Terms and conditions vary among the various loan programs.the various loan programs.
Educational LoansEducational Loans Federal LoansFederal Loans
– Federal Stafford Loan (Ford Direct Loan)Federal Stafford Loan (Ford Direct Loan)SubsidizedSubsidizedUnsubsidizedUnsubsidized
– Federal Perkins LoanFederal Perkins Loan– Federal PLUS LoanFederal PLUS Loan– Health Professions LoansHealth Professions Loans
Privately Financed Alternative LoansPrivately Financed Alternative Loans– Multiple ProvidersMultiple Providers
ScholarshipsScholarships
ScholarshipsScholarships Scholarships are based on special Scholarships are based on special
talent, affiliations, or merit.talent, affiliations, or merit. Check with any organization, Check with any organization,
association, business, religious association, business, religious group, or other entity that the group, or other entity that the student or parents have an affiliation.student or parents have an affiliation.
Do web searches for scholarships by Do web searches for scholarships by going online.going online.
ScholarshipsScholarships www.fastweb.orgwww.fastweb.org
ScholarshipsScholarships Scholarships require more effort to Scholarships require more effort to
locate and apply for since there is locate and apply for since there is not a centralized application process.not a centralized application process.
Some applications may require Some applications may require written essays or letters of written essays or letters of recommendation.recommendation.
Financial Aid PackageFinancial Aid Package After the Financial Aid Office has all After the Financial Aid Office has all
of your information, a “financial aid of your information, a “financial aid package” will be sent to you outlining package” will be sent to you outlining the types and amounts of aid that the types and amounts of aid that you are being offered.you are being offered.
You can compare the various offers You can compare the various offers that you receive in order to make an that you receive in order to make an informed decision about your college informed decision about your college choice.choice.
Financial Aid PackageFinancial Aid Package Is the package sufficient to enable Is the package sufficient to enable
your child to attend?your child to attend? If not, where or how will you obtain If not, where or how will you obtain
the needed funding?the needed funding? What will be the debt load for the What will be the debt load for the
student and for the parents after four student and for the parents after four years of study?years of study?
Is working truly an option?Is working truly an option?
Decision TimeDecision Time After you have decided upon a After you have decided upon a
college, pay the advance deposit fee college, pay the advance deposit fee by May 1 to ensure your admission. by May 1 to ensure your admission. Contact the Financial Aid Office to Contact the Financial Aid Office to accept your financial aid package.accept your financial aid package.
Notify the schools that you are not Notify the schools that you are not going to attend of your decision to going to attend of your decision to enroll elsewhere.enroll elsewhere.
Keeping Your AidKeeping Your Aid The financial aid applications must The financial aid applications must
be filed out each year in order to be filed out each year in order to continue to receive financial aid.continue to receive financial aid.
Students must be maintaining Students must be maintaining satisfactory academic progress in satisfactory academic progress in order to continue to be eligible for order to continue to be eligible for aid.aid.
Good Luck!Good Luck!