Community Financial Aid Night

January 28, 2015

Sharon E. Platt, Director of Financial Aid

Topics We Will Discuss Tonight What is Financial Aid? Types Of Financial Aid How To Apply For Financial Aid Cost of Attendance (COA) Expected Family Contribution (EFC) Financial Need What Happens Next? FAFSA On-The-Web Demo

What is Financial Aid?

Financial Aid is funds provided to students and their families to help pay for postsecondary educational expenses in the form of:

GrantsScholarshipsLoansEmployment

Gift Aid vs. Self-Help Aid

Grants/Scholarships - Gift money that does not have to be paid back

Loans - Borrowed money that has to be paid back over a period of time, often after the student completes their degree

Work-study - money students earn by working at a part-time job

GIFT AID SELF-HELP AID

Categories of Financial Aid

Aid given to students strictly on the basis of merit.

May be based on: Academic record Special characteristics Skills or talents Involvement

Does not have to be repaid Usually renewable from

year to year

Aid awarded to students on the basis of financial need.

Re-evaluated each year as financial situations may change.

Merit-Based Aid Need-Based Aid

Sources of Aid

Federal government

State

The College/University

Outside Organizations/Employers

Federal Aid

Largest source of financial aidAid awarded primarily on the basis of

financial needMust apply each year using the Free

Application for Federal Student Aid (FAFSA)

Common Federal Aid Programs

Federal Pell Grant Federal

Supplemental Educational Opportunity Grant (SEOG)

Teacher Education Assistance for College and Higher Education Grant (TEACH)

Federal Perkins Loan

Federal Work-Study

Federal Subsidized and Unsubsidized Loans

Federal PLUS Loans

State Aid

Residency requirements Use information from the FAFSA Deadlines vary by state PHEAA Deadline is May 1

College/University Aid

Factors that may influence institutional aid: Academics Athletic Ability* SAT’s/ACT’s AP Courses Legacy (child of alumni) Activities Talent Gender/Ethnicity Class Rank Financial Need*Athletic awards offered by NCAA Division I and Division II schools only.

Outside Organizations

Foundations, businesses, charitable organizations

Deadlines and application procedures vary Begin researching private aid sources early To what organizations and churches does

student and family belong? Application process usually spring of senior

year Small scholarships add up! Check company where parent is employed

HOW TO APPLY FOR APPLYING FOR AID

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 ten colleges - Title IV Code or school name; schools receive information electronically

How/When to File the FAFSA?FAFSA’s are completed online:

www.fafsa.gov Register for a PIN #: www.pin.ed.govComplete as soon as possible after

January 1 and before the school’s deadline

PA residents must file by May 1 for state grant consideration for following fall term

May use estimated income and taxes or prior year tax forms

Don’t wait to be accepted to college to complete

Cost of Attendance

Tuition Fees Room Board

Books and Supplies

Transportation Personal Living Expenses Child care and

special equipment purchases may be considered

Direct Costs Indirect Costs

Expected Family Contribution (EFC)

Number used to determine student’s eligibility for financial aid

EFC is the amount the family can expect to pay toward college expenses each year

It is rarely the amount the family actually pays Number is a result of federal formula based upon

information supplied on FAFSA Income (taxable & nontaxable) Taxes paid Assets Household size Number in college

What is financial need?

Cost of Attendance

- Expected Family Contribution __________________________________

= Financial Need

School 1 School 2 School 3$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

COSTNEEDEFC

Examples of Financial Need

Net Price Calculator

Every school is required to have one on their website

CAUTION: Some are better than others

Get estimated EFC at: www.fafsa.gov and use FAFSA4caster

FAFSA on the Web’s Homepage

What happens after FAFSA is filed?

Verification

35% of all students are randomly selected for verification

The school will notify you to submit additional documentation

School may give you an ESTIMATED award letter

YOU MUST SUBMIT ALL REQUESTED INFORMATION BEFORE FINAL AWARDS ARE GIVEN

What Happens Next?

Aid eligibility is determined by school

Receive financial aid award letter from

each college/university

Deposit at college of choice (non-

refundable usually)

Comparing Aid Offers

• Don’t assume that more expensive schools will

necessarily cost you more!

• Look at same “bottom line” for each school.

Compare “apples” to “apples.”• What is amount of loan in package vs. amount of grant?

• What is amount of work study?

• Are grants/scholarships automatically renewable?

• Is there room for movement?• Check with the Financial Aid Office—there might be but it’s not “Let’s Make

A Deal!”

Need More Financial Assistance?

Payment Plan

Parent PLUS Loan

Alternative Loans

FAFSA On-the Web Demo

What You Need Before Filing FAFSA

Student’s and parents’ social security number or alien registration or permanent resident card (if not a U.S. Citizen)

Student & Parent 2014 W-2 forms and other records of money earned

Student & Parent 2014 Federal Income Tax Return (1040, 1040A or 1040EZ)

Student & Parent 2014 untaxed income records (veterans benefits, child support received, workers compensation)

Student & Parent current bank statements Student & Parent current business and investment mortgage

information, business and farm records, stock, bond, and other investment records

Student drivers license Depending on parent’s marital status, date of parent’s

marriage/separation/remarriage

Special Circumstances

Experience significant decrease in current calendar year income 2015-16 FAFSA based on 2014 income

Cannot report on FAFSA Change in employment status Medical expenses not covered by insurance Change in parent marital status Unusual dependent care expenses

Contact Financial Aid Office at each college

Don’t Forget!

Research Outside Scholarships (www.fastweb.com)

Complete the FAFSA form as soon as possible after January

1 of senior year

Keep copies and sign 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 schools

you are interested in and ask questions if you don’t

understand

Remember deadlines – APPLY EARLY!

Any Questions?

Thank you for coming!