WELCOME TO

1. WELCOME TO INDIANA HIGH SCHOOL FINANCIAL AID NIGHT January 10, 2013

2. What is Financial Aid? • Grants • Loans • Employment Opportunities • Scholarships

3. Sources of Financial Aid • Federal • State • Institutional Funds • Private

4. Federal Pell Grant Program • Awarded to eligible undergraduates pursuing first baccalaureate degree and certain students enrolled in post-baccalaureate teacher certification or licensing programs • Portable • Annual award amounts (for 2012-13) • $555 minimum • $5,550 maximum • Deadline – June 30, 2014

5. Federal Supplemental Educational Opportunity Grant (FSEOG) • Eligible students • Undergraduates pursuing first baccalaureate degree • Awarded first to students with exceptional financial need (i.e., students with the lowest EFCs at that school) • Priority to Federal Pell Grant recipients • Annual award amounts • $100 minimum • $4,000 maximum • Deadline established by school

6. Teacher Education Assistance for College and Higher Education (TEACH) Grant • 3.25 GPA or qualifying score on admissions test • Agree to teach full time for at least 4 years within 8 years of graduation at a school serving a high percentage of lower income students (Title I schools) in specific subjects • $4,000 annual maximum, up to a $16,000 undergraduate aggregate • Will convert to unsubsidized Direct Stafford Loan if teaching requirements not fulfilled

7. Pennsylvania State Grant • Administered by Pennsylvania Higher Education Assistance Agency (PHEAA) 1-800-692-7392 • PHEAA-approved program must be at least two academic years in length • Maximum award for 2012-13 • $4,348- based on institution’s total allowable education costs • For undergraduates only • Non-portable with MD, NJ, NY

8. Federal Work-Study • Based on financial need • Employment may be on or off campus • Deadline established by school • Paid @ least once a month -@ least min. wage • Eligible employers • School • Federal, state, or local public agency • Private non-profit organization • For-profit organization

9. Federal Perkins Loan • Eligible students • Undergraduate or graduate students • Priority to exceptional need • Maximum loan limits • $4,000 undergraduate students per year • Cumulative limit of $20,000 • Interest rate: 5%

10. Federal Perkins Loan (continued) • Deadline established by school • Nine-month grace period • Repayment period may be up to 10 years • Deferment and cancellation provisions available

11. William D. Ford Federal Direct Stafford Loan Program • Funds provided directly by the Federal Government to the school to administer • Contact school for specific procedures • Application process • Master Promissory Note • Entrance Counseling

12. Federal Direct Stafford Loan (Subsidized and Unsubsidized) • Subsidized Stafford: Must demonstrate “need” • Unsubsidized Stafford: Not based on “need” • Base annual loan limits • 1st year - $5,500 (maximum $3,500 subsidized) • 2nd year - $6,500 (maximum $4,500 subsidized) • 3rd year - $7,500 (maximum $5,500 subsidized) and beyond

13. Additional Eligibility for Unsubsidized Federal Direct Stafford Loan Additional unsubsidized loan eligibility for independent undergraduates, graduate students, and dependent students whose parents are unable to borrow under the PLUS Program: • $4,000 per year for first and second years of undergraduate study • $5,000 per year for remaining years of undergraduate study

14. Independent Student Definition • Born before January 1, 1990 • Student is married • Working on Master’s or Doctorate Program • Veteran of the U.S. Armed Forces or currently serving on active duty (not reserves) • Student has children or dependents (other than a spouse) that receive more than half of their financial support from student

15. Independent Student Definition • At any time since age 13: • Both parents are deceased • Was in foster care or dependent/ward of court • Emancipated minor before 18th birthday • In legal guardianship before 18th birthday • Determined to be an unaccompanied youth who was homeless • Determined to be independent by the financial aid administrator

16. Costs of Borrowing Federal Stafford Loan • Interest rates • 6.8% for 2013-14 (Subsidized and Unsubsidized) • Loan fees – up to 4% of principal • Grace period and deferment provisions

17. Federal PLUS and Federal Direct PLUS • Borrowers are parents of dependent undergraduate students • Annual loan limit: cost of attendance minus other aid • Interest rate – 7.9% • Loan fees - up to 4% of principal

18. Federal PLUS and Federal Direct PLUS (continued) • Repayment begins 60 days after loan is fully disbursed for that term • Deferment provisions; only principal is deferred, but interest may be capitalized

19. Alternative Loans • Educational loans through private lending institutions • Loan is generally in student’s name and requires a credit-worthy cosigner • Many lenders use credit scoring to determine eligibility • Repayment can be deferred until education is completed

20. Private Scholarship Search • Local library resources • Local businesses and civic organizations • Parents’ places of employment

21. Private Scholarship Search • Internet: • College Board’s Scholarship Search www.collegeboard.com • FastWeb Scholarship Search www.fastweb.com • Education Planner www.educationplanner.org

22. The FTC cautions students to look for tell tale lines: ●“The scholarship is guaranteed or your money back.” ● “You can’t get this information anywhere else.” ● “I just need your credit card or bank account number to hold this scholarship.” ● “We’ll do all the work.” ● “The scholarship will cost some money.” ● “You’ve been selected by a ‘national foundation’ to receive a scholarship” or “You’re a finalist” in a contest you never entered. www.ftc.gov

23. Definition of Need Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need

24. COSTS • Tuition and fees • Room and board • Books and supplies • Transportation • Personal expenses • Childcare (for students with dependents) • Special expenses for handicapped students

25. FAMILY CONTRIBUTION MAIN FACTORS • Parental Income • Parental Assets (excluding primary home) • Student Income • Student Assets • Family Size / Number in College • Age of the Older Parent

26. Financial Aid Packages • Schools may or may not be able to meet 100% of need • Packages may be comprised of various types of aid (grants, loans, employment, etc.) • Packages can be very different from one school to another

27. FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA) FILING OPTIONS File on-line at www.fafsa.gov or Mail a paper FAFSA

28. PAPER FAFSA Go to www.fafsa.gov and click on FAFSA Filing Options to print a copy of the FAFSA; or Call Federal Student Aid at1-800-433-3243 for one to be mailed to you; or Obtain one from the Guidance Office or a Financial Aid Office Click on FAFSA Filing Options

29. WWW.FAFSA.GOV • Pre-Application Worksheet & built-in edits to help prevent costly errors • Speeds up FAFSA processing • Apply for PINs at www.pin.ed.gov

30. FAFSA on the Web Worksheet

31. Application Tips • Contact school for required forms and deadlines • Do NOT wait to be admitted before filing for aid • Respond quickly to requests • Keep copies of all applications/documents • FAFSA and other applications must be completed each year • Contact school and PHEAA if family has any special circumstances, such as loss of employment

32. Frequent FAFSA Errors • Social Security Number • Divorced/remarried parent information • Income earned by parents/stepparents • Untaxed income • U.S. income taxes paid • Household size • Number in postsecondary education • Real estate and investment net worth • Signatures

33. What Paperwork/Emails to Expect? • Student Aid Report • PHEAA Grant notification of aid • School notification of aid • Loan disclosure statement • Verification Forms • Special Consideration

34. Contact Information • Federal Student Aid Information • 1-800-433-3243 • PHEAA Grant Division • 1-800-692-7392 • Important websites • www.finaid.org • www.pheaa.org or www.aessuccess.org • www.fafsa.gov • www.pin.ed.gov • Specific school’s Admissions and Financial Aid websites

35. Good Luck! Better yet, call your Financial Aid Administrator (that’s better than luck!)