Please Silence Your Cell Phones!

1. Please Silence Your Cell Phones! Thank you for being considerate to the people around you.

2. Financial Aid 101 Paying for Postsecondary Education

3. Presenter JayeannHarr Higher Education 412-904-8545 Access Partnerjharr@pheaa.org Southwest Region (Fayette, Greene, Washington & Westmoreland)

4. Do these Headlines keep you up at Night?? Is College Worth the Money? Student Loan Burden Continues to Grow U.S. Student-Loan Balances Increase 55% Since 2005 Paying For College - Are You and Your Student on the Road to Going Broke Or Into a Lot of Debt? More Kids are Moving Back Home!

5. Education pays in Higher Earnings and Lower Unemployment Source: Bureau of Labor Statistics 2011

6. College Majors • The field of bachelor’s degree (major) makes a considerable difference in a college graduate’s annual earnings, according to 2011 American Community Survey (ACS) data released by the U.S. Census Bureau. These differences add up over the span of one’s work-life. www.census.gov/newsroom What was the highest paying college major for 2011-12?

7. College Expenses

8. The Consumer Approach – Making College Affordable Do your Research… • Approach it as though you are buying an education, not a school • What is the Net Price that you will pay? Use the Net Price Calculator available on each school’s website. • What is the graduation rate? • What is the average debt of graduates? • What is the repayment rate and default rate of the school’s borrowers? • What was the employment outcome for recent graduates?

9. Reduce the Need for Financial Aid • Graduate on Time • Research and find the right school and major • Minimize transfer and change of major • Earn college credits while in high school • AP courses, Vo-Tech, and dual enrollment • Consider options for cutting costs • Commute, take summer classes, rent or buy used books, make smart meal plan choices • 2 + 2 Strategy • (2 years at a Community College then transfer credits to a 4 year school)

10. Transferring Colleges • Review the college’s website • Meet with an advisor at both schools • Know what is expected of you

11. 3 Things to Take Away… • Be Informed Consumers – ask questions! • File the FAFSA on time • Stay Organized & Follow Up

12. What is Financial Aid? Financial Aid- Money provided to students and families to help pay for postsecondary educational expenses

13. Types of Financial Aid • Gift Aid – FREE MONEY • Grants and Scholarships • Self Help Aid • Loans and Work Programs • Merit-Based Aid:academic ability, special talent or achievement, program of study, family or ethnic background • Need-Based Aid:grants, loans, and employment usually based on - income, assets, other factors

14. Basic Principles

15. Where does the money come from? • Federal Government • State Government • School/Colleges • Private Scholarship Sources: • HS Counselors • Clubs and organizations • Employers • Internet scholarship searches

16. Scholarship Opportunities for Everyone • Scholarships for Average Students • Video contests • Creativity • Unusual scholarships • Based on Last Name – Van Valkenburg? • Grandparents Gone Wired Scholarship • Patrick Kerr Skateboard Scholarship • Common Knowledge Scholarship

17. Scholarship Search Tips! • Start Searching Early • Use FREE Scholarship Search sites • Don’t ignore scholarships with smaller award amounts • Don’t miss deadlines • Search for Scholarships every year • Never pay a fee for a scholarship! • Avoid unsolicited scholarships • Avoid scholarships that use the word “Guarantee” • If it sounds too good to be true, it probably is.

18. Online Sources www.fastweb.com www.bigfuture.collegeboard.org www.studentscholarships.org www.scholarshipexperts.com www.zinch.com/scholarships www.collegeprowler.com/scholarships www.google.com

19. The Free Application for Federal Student Aid (FAFSA) • The FAFSA (Free Application for Federal Student Aid)is a federal form used to determine student eligibility for the following: • Federal programs, such as Pell Grants, work-study, and student loans • State programs, such as Pennsylvania State Grant, and other special programs • School programs, such as need-based grants and scholarships

20. www.fafsa.gov NOT FAFSA.com

21. Who is independent for Federal Programs? • 24 or older on Jan 1st of award year (January 1, 1990) • Veteran (includes active duty personnel) • Working on graduate level degree • Emancipated minor in legal guardianship • Orphan, in foster care, or ward of the court at anytime when student was age 13 or older • Have legal dependents other than spouse • Student deemed homeless by proper authority

22. Whose information goes on the FAFSA • Parents & Student Information • Divorced or separated parents • Parent that the child lived with most in the last 12 months. • If parental custody is equal, then the parent that provides more than 50% of student’s support. • Stepparents - yes • Adoptive parents - yes • Foster parents - no • Legal guardians - no • Anyone else the student is living with - no

23. Special Circumstances • Recent death or disability • Reduced income • Recent Separation or Divorce • Contact the school and ask for a special consideration AND Contact State Grant Division at PHEAA in writing.

24. FAFSA Completion Tips

25. FAFSA - Assets

26. IRS DATA Retrieval Tool Allows students and parents to access IRS tax return information needed to complete the FAFSA. Students and parents may transfer the data directly into their FAFSA. • IRS Data is available: • After 2 weeks of electronically filing federal tax return • After 8 weeks of filing a paper federal tax return If use estimated income to complete FAFSA, can go back once taxes are filed and use IRS Data Retrieval Tool.

27. IRS Data Retrieval • Married, Filing Separately • Filing Head of Household • Filing an amended return • Filing a Puerto Rican or foreign tax return • Recently filed taxes • None of the above

28. Signing FAFSA Online • Student and parent sign electronically with a PIN. • Apply for a PIN at www.pin.ed.gov or while completing the online FAFSA • PIN (Personal Identification Number) • Select your number • Parents can use for other children & PLUS • Students will need for many uses • Can request a duplicate PIN, if necessary. • If you write it down, store it in a safe place

29. Apply for PA State Grant from FAFSA Confirmation Page

30. On-Line State Grant Application • Additional questions needed to determine State Grant eligibility which includes items such as enrollment status, value of PA 529 College Savings Program, program of study, and employment status. • Printing , signing, and mailing in the State Grant confirmation page is the last step in the process. PHEAA is working on an electronic signature capability but that is not available at this time. • Students will be able to view their status on Account Access available at pheaa.org about three days after completing the FOTW.

31. Other Applications? • Know what financial aid forms are required: • FAFSA(Free Application for Federal Student Aid) – federal aid, PA State Grant, college aid, and private scholarships • State Grant Form (SGF) required for first year students (and may be requested for subsequent years) • CSS Profile required by some postsecondary schools and scholarship organizations • Institutional financial aid forms

32. Know Your Deadlines!!!!! • Federal Deadline - end of the award year - for 2013-2014, this would be June 30, 2014 • PA State Grant deadlines – • May 1, 2013 - First Time and Renewal Applicants that plan to enroll in a degree program or a college transferable program at a junior college or other college or university • August 1, 2013- First Time applicants that plan to enroll in a community college; a business, trade, or technical school; a hospital school of nursing; or a 2-year program that is not transferable to another institution Know School Deadlines & meet the earliest one!

33. FAFSA Completion Sessions • Laurel Highlands High School • FAFSA Completion Sessions • February 28, 2013 – 6:00 PM • Rsvpby February 26, 2013 • March 21, 2013 – 6:00 PM • Rsvp by March 19, 2013 • Rsvp to Mrs. Barchetti

34. Documents Needed • Social Security Numbers • Drivers license (student only; this information is optional) • Federal income tax returns (1040, 1040A or 1040EZ) • W-2 forms from all employers • Current bank statements (checking and savings) • Current business and farm records • Records of any stocks, bonds and other investments, including 529 accounts • Additional untaxed income tax records may be needed such as: Veteran’s non educational benefits, child support paid/received and workers compensation. • Alien registration or permanent resident card (if not a US citizen)

35. What happens next? • Student Aid Report or Acknowledgment sent to student (review and make necessary corrections) • Information is sent to PHEAA. Student must complete State Grant Form (SGF). Can link to this directly from the FAFSA. • Account Access (PHEAA) - create an account at www.pheaa.org to view PA State Grant • Information is sent to schools/colleges. Send to all schools being considered.

36. Determining need-based eligibility • Family undergoes need analysis • Expected Family Contribution (EFC) is determined

37. Expected Family Contribution (EFC) • The EFC is a number derived from a federal formula which considers certain factors. - Parent income and (possibly) assets - Student income and assets - Family size - Number of children in college - Age of the older parent • It is an index number used to determine how much financial aid you will receive • In reality, it is not necessarily the amount a family is required to pay.

38. How is the EFC calculated? Parent Contribution + Student Contribution = EFC

39. Calculating Financial Need Financial Aid Office (FAO) “packages” student based on financial need and available funding (varies from school to school). Financial aid award letter sent to student.

40. Financial Aid Award Letter • Is official notification from school about financial aid, terms, and conditions. • Lists the type and amount of each award to be received • Describes what must be done to accept or reject any award. • Discloses students rights, responsibilities, and academic requirements.

41. Reviewing the Financial Aid Package After reviewing their packages, students should be sure they know and understand the following: • How much of the financial aid is free money? • Which awards are based on need and which are based on merit? • Are there any academic requirements to maintain to keep their award? • Will awards change from year to year? • Will institutional awards increase as tuition increases? • How are institutional awards affected by scholarships • Will loans be needed?

42. Financial Aid 101 Federal, State and College Financial Aid Programs

43. Federal Programs Pell Grant (2012-13 award $5550) *….must have high need Campus-based aid – amounts determined by FAO • FSEOG………………… up to $4000 • Perkins loan….……….. up to $5500 • Federal work-study…… FAO determines For most programs, student must be enrolled at least half-time. * Goes to most financially needy students

44. PA State Grant Program • PA State Grant* • Full-time, in PA…...….up to $4,348 • Part time, in PA………up to $2,174 • Out of state….. Up to $600 in CT, DE, MA, ME, OH, RI, VT, WV, and DC • All other states….up to $400 (NJ, NY, and MD = $0) • Amount determined in part by the cost of the school * Must be at least half-time to be eligible

45. State Grant Formula • Cost of School (Tuition + Allowable Fees – provided by the school) Add Educational Expense Allowance ($4,000) and Book Allowance ($1,000) • Subtract 100% Pell Grant and EFC = Unmet Need • Multiply Unmet Need by a percentage based on the EFC and by an Award Adjustment Factor (based on funding)

46. State Grant Cost Tiers Minimum Award Maximum Award Cap college costs at $32,000

47. Other State Programs • State Work-Study - job related to major • Educational Assistance Grant (EAP) – National Guard • Chafee Education and Training Grant – Foster care or discharged or adopted out after age of 16 • Blind or Deaf Beneficiary Grant (PA and other states) • Postsecondary Educational Gratuity Program (PEGP) – Children of parents who died in the line of duty • Partnerships for Access to Higher Education (PATH) • Pennsylvania Targeted Industry Program (PA –TIP) For details, see the PA Guide to Student Aid, or visit www.pheaa.org

48. Federal Student Loans • All federal student loans are now made directly through the U.S. Department of Education. • Students and parents may apply for Direct Stafford and Direct PLUS loans through their post-secondary school’s website or at www.studentloans.gov

49. Borrowing for Higher Education • Always consider federal loans first. • Borrow in the following order: • Perkins Loan (5% fixed) – student • Stafford Loan (max of 6.8% fixed) – student • PLUS Loan (7.9% fixed) – parent and graduate student • Alternative Loan (variable rates) – last resort

50. Federal Direct Loan Program Stafford student loan: • Subsidized = no interest in school • July 1, 2012 – June 30, 2014 – If the loan is first disbursed during this period, interest will be charged during the grace period, • 3.4% fixed rate beginning 7/1/12 • Unsubsidized = interest accrues in school and grace • Interest rate = 6.8% • Any interest unpaid during grace will be capitalized at repayment