2014-15 Financial Aid High School Night

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Dictionary.com(noun) money to support a worthy person or cause [syn: aid]

College definition: Grants, Scholarships, Loans, Student Employment, or other funds used to pay for higher education.

Definition of Financial Aid

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Financial Aid Acronyms

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FAFSAPHEAA

MPN PLUS

PHEAA USDE ISIR

PIN FAO

DRN

EFC

Cost of Attendance

Less Expected Family Contribution

Equals NEED

CALCULATING FINANCIAL NEED

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Direct Costs- Tuition, Fees, Room and Board

Indirect Costs- Books, transportation, parking,

laundry, personal

Cost of Attendance

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Expected Family Contribution (EFC)

Federal Methodology is the formula created by Congress to determine EFC. Information supplied on the FAFSA is used to generate the EFC.

Debt does not improve your chances of receiving need based aid

Don’t buy a new house Don’t finance a luxurious vacation

Current income is the major factor in determining need based eligibility

Debt is not considered

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Need ComparisonHigh Cost Institution

Low Cost Institution

Cost of Attendance $30,000 $8,000

Minus Family Contribution

$7,000 $7,000

EqualsNEED $23,000 $1,000

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* *

* The Expected Family Contribution is the same at each institution!

Gift Aid• Scholarships (merit based)•Grants (need based)

Self-Help• Loans• Employment

Types Of Aid

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Merit based aid• Academic ability• Special talent/achievement• Program of study• Family background

Need based aid• Financial need as determined by a formula

created by USDE, Institution, Foundation

How Gift Aid Is Defined

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Sources Of Aid

Federal

State

Institutional

Private

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Largest federal grant

FASFA required

EFC determines eligibility

Award amount based upon enrollment status and cost of attendance

Federal Pell Grant

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Federal Direct Student Loan

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FAFSA form requiredLoan is in the student’s name

No credit check or cosigner required

No principal payments while enrolled

Repayment begins 6 months after student is out of school

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Loan eligibility (Dependent, UG)

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Grade Level

Base Amount

Additional Amount

Total YEARLY

Amount

Freshmen $3,500 $2,000 $5,500

Sophomore

$4,500 $2,000 $6,500

Jr., Sr., or5th year $5,500 $2,000 $7,500

Aggregate loan limit of $31,000 Base Amount: Subsidized or Unsubsidized Additional Amount: Always Unsubsidized

Fixed interest rate of 3.4% (AY 2013-14)

Loan fees based on principal amount of each loan:• Direct Loan Program charges a net 1.05%

origination fee at disbursement

Check with your school for application instructions

Cost of Borrowing Federal Direct Student Loan

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Loan program for parents of dependent undergraduate students

Loan limits• Annual limit: cost of attendance less other aid• No Aggregate limit

Fixed interest rate• Direct PLUS: 6.4% plus a net 4.204% origination fee at

disbursement

Additional Unsubsidized for PLUS denials

Federal Direct Parent PLUS Loan

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Federal Supplemental Educational Opportunity Grant (FSEOG)

Federal Perkins Loan

Nursing Loan

Federal Work Study Program

Other Federal Aid

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Pennsylvania Higher Education Assistance Agency (PHEAA)

PA Grants up to $4,348 for Pennsylvania schools, reduced to $600 for reciprocating states

State Aid

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Merit Awards

Need-based Awards• Institutional Applications

• CSS/PROFILE Application

• Free Application for Federal Student Aid (FAFSA)

Institutional Aid

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Scholarships or grants for outside sources such as:Service/Fraternal OrganizationsEmployers/BusinessesChurches/Religious GroupsH.S. Guidance CounselorsCredit Unions & BanksCivic Organizations Internet

Private Aid

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No Adjustment

Dollar for dollar adjustment to institutional grant/scholarship

Dollar for dollar adjustment to self help aid

Percentage reduction in grant/scholarship and/or self help

Private Aid Policies

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You have to pay a fee

Money-Back Guarantee

Credit Card/Bank Account info required

A high pressure, sales pitch

Scam Warning Signs

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You do:

Apply early and by the deadlines

Complete all school financial aid documents that are available

How do I receive Financial Aid?

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You don’t:

Remember: most aid is on “first-come, first-serve” basis

Do not wait to be accepted for admissions before applying for aid

Respond quickly to requests for additional information

Keep copies of everything for your records

How do I receive Financial Aid?

(continued)

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Free Application for Federal Student Aid (FAFSA)

Collects family’s personal & financial information to calculate a student’s EFC

May file FAFSA in one of two ways:• Paper FAFSA

• FAFSA on the Web

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FAFSA on the Web (FOTW)

Web site: www.fafsa.gov Available on or after January 1, 2014Requires 2013 Federal Tax

Information (or estimates)FAFSA on the Web Worksheet:

• Questions follow order of FAFSA on the Web

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CAUTION!Avoid being charged a fee to file the Free

Application for Federal Student Aid

The FAFSA process is FREE• Go to FAFSA on the Web (FOTW) at:

www.fafsa.ed.gov orwww.fafsa.gov

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PIN RegistrationWeb site:

www.pin.ed.gov

Required by students and parents throughout aid process, including subsequent school years

NEW: option that allows applicants to retrieve income tax information from the IRS database

Data will not available to access if:◦ Taxes not filed◦ Taxes were recently mailed (within last 3-4 weeks)◦ Taxes were recently e-filed (within last 7-10 days)◦ Married filed separately◦ Identity theft◦ Amended tax return

FOTW and IRS Data Retrieval

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The FAFSA confirmation page has a link to transfer FOTW data to the PHEAA state grant application Pennsylvania residents – Complete the State Grant

application

Pennsylvania residents – Complete the State Grant application

Click here if you want to apply for the Pennsylvania State Grant.

Click here if you want to apply for the Pennsylvania State Grant.

State Grant Form / Account Access

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FAFSA Processing ResultsCPS notifies student of FAFSA processing

results by:• E-mail notification containing a direct link to

student’s on-line SAR if student’s e-mail was provided on the FAFSA

• Paper Student Aid Report (SAR) through U.S. Mail

Student with PIN can view SAR online at www.fafsa.gov.

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CorrectionsCorrections to FAFSA data may be made: • On paper SAR; • At: www.fafsa.gov using student & parent PIN• At the student’s Financial Aid Office

If estimated tax info was used or IRS info not available, FAFSA can be updated by using the IRS Data Retrieval process.

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VerificationUSDE has established edits to review the FAFSA information for accuracy

Common documents requested include:• 2013 U.S. Tax Return Transcript• W-2 Forms• Verification Worksheets

• SNAP documentation• Child support paid out• HS diploma

Review performed by the Financial Aid Administrator

FAA Professional Judgment

Dependency Status

Reduction in Income

Unusual Expenses (Medical,

etc.)

Other Unusual Circumstances

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The Financial Aid Letter, or “Package,” is the written notification from the school of its offer of financial aid.

The Award Letter should include:• COA Information• Description of aid and conditions for

maintaining/renewing aid• Process of how to accept or decline the aid

Financial Aid Package

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The individual school’s COA

—The aid available from that school

The amount left over is the student/family responsibility

Compare Packages

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Higher Education and Opportunity Act (HEOA) requires all schools to disclose a net price to consumers.

Net price calculators will enable first year, full time students to determine an estimated Cost of Attendance (COA)

COA includes direct and indirect costs

Many calculators may also provide an estimate of financial assistance that may be available

Net Price Calculator

QUESTIONS???

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Good Luck!