FINANCIAL AID:

The Essentials and then some….

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 application

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 (if equal time, information of the parent that provides the most financial support) should be provided

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-Expected Family Contribution (EFC)

Financial Need

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% 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 Offers

School 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

Stafford Loan - Unsubsidized $0 $2000 $2000 $2000

Institutional Grant $0 $0 $4500 $20000

Unmet Need (excluding Unsub Stafford)

$0 $3140 $440 $3940

Unmet Cost (Cost – aid) $0 $3140 $440 $3940

Comparing Aid Offers

School 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

Stafford Loan - Unsubsidized $2000 $2000 $2000 $2000

Institutional Grant $0 $1900 $2000 $21000

Unmet Need (excluding Unsub Stafford)

$0 $0 $900 $2600

Unmet Cost (Cost – aid) $6500 $10000 $10000 $12600

Comparing Aid Offers Will 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!