Financial Aid Presentation2017-18 Academic Year Presented by: Carolyn A. Julian Student Aid Adviser & VA Coordinator Penn State University - Harrisburg
Principles of Financial Aid • Student and parent have the primary responsibility for funding post-secondary education to the extent they are able. • Financial Aid is a tool to assist with these expenses. Not all families will qualify for financial aid nor is there a guarantee. Purpose of student financial aid is: * to ensure everyone has equal access to postsecondary education. * promoting fairness and equity for all students with a particular emphasis on low-income, underrepresented and underserved students.
Goals of Financial Aid • The primary goal of the financial aid professional is to help students achieve their educational potential by providing appropriate financial resources. • Access to Post-Secondary Education • Parents, students & universities partnership • Choice among Post-Secondary Institutions • College choice includes dollars and sense
General Eligibility Requirements • U.S. citizen or an eligible non-citizen • High school diploma or equivalent • Degree Seeking & enrolled at least 6 crs. • Maintain satisfactory academic progress once in school. • Male students must be registered with the Selective Service upon reaching their 18th birthday.
Family Educational Rights and Privacy Act (FERPA) • Financial information submitted is protected. • Data is confidential. • Authorization required for release to a third party.
Applying for Aid • Visit or call the Financial Aid Office • Ask what applications are required? • Know the deadline dates! • Complete 30 days prior to deadline date. • NEED NOT BE accepted for admission. • Respond quickly to additional requests. • Explore ALL funding resources.
Application Hints • Read all instructions carefully • Name must match SS Card • Student & Parent • High School Grad • Divorced Families • Parents/Stepparents • 2015 Taxes Completed* • Form 1040, 1040A or EZ • 2015 Taxes PAID* • Form 1040, 1040A or EZ • DO NOT USE AMOUNT ON W-2’s *IRS Data Retrieval Tool
CSS Financial Aid PROFILE • Used at Private Colleges & Universities along with the 2017-18 FAFSA. • https://profileonline.collegeboard.org • $25 fee for initial application & 1 college • $16 for each school • Payment online. • Ask for list of PA Schools
PPY – Prior Prior Year October 1, 2016
Free Application for Federal Student Aid (FAFSA)** • Federal Student Aid ID (FSA ID) • One for student and parent • Different emails • Name & password • Keep in a secure place • Start a Financial Aid folder • File 2017-18 online @ www.fafsa.ed.gov • Preferred Method • Available on October 1, 2016 and filed preferably by University deadline date – typically February 1st • Title IV College Code • **DO NOT PAY TO HAVE THIS COMPLETED!
FAFSA Completion • Starting October 3, 2016 • Held at local high schools, colleges or other educational institutions. • Sponsored by PHEAA & PASFAA. • Check PHEAA’s website at www.pheaa.org for locations nearest you.
Expected Family contribution (EFC) • The EFC is a measure of how much the student and his or her family can be expected to contribute to the cost of the student’s education. The EFC is calculated according to a formula specified in the federal regulations.
Federal Expected Family Contribution • Total taxed & untaxed income of family. • Assets, savings, investments, business* or farm investment, but not home equity. • Number of children or other dependents enrolled on at least a half time (6 credits.) basis. Excludes parent. • *Excludes the value of a small business that family owns with less than 100 FT employees.
Cost of AttendanceAcademic year (2 semesters) Direct Costs (Bill): Tuition and Fees Room and Board Indirect Costs: Books and Supplies Transportation Personal Expenses
What is “Financial Need”? • Cost of Education (COE) • - Expected Family Contribution (EFC) • = Financial Need • Pell Grant • PHEAA Grant • SEOG Grant • Outside scholarships/grants • Direct Stafford Student Loan • Parent Plus Loan Balance +/-
How is Aid Awarded? • Need-Based (FAFSA) • Grants • Loans • Workstudy • Merit-Based • Academic Ability • Program of Study • Family Background • Special Talent/Achievement • Scholarships
Types of Aid Gift Aid Scholarships Grants Self-Help Aid Loans Employment
Sources of Aid • Federal • Pell, Supplemental Educational Opportunity Grant (SEOG), Work-Study and Direct Stafford Loans • State • PHEAA (PA Higher Ed Assistance Agency) • Institutional • Internal scholarships • Private • Local & Civic organizations
Federal Pell Grant • EFC determines eligibility (0-5198*) • Award amount based upon enrollment & school costs • $5,775-$626 ( Max of 12 semesters) • *Verification • SS# • Selective Service • Citizenship • Reply promptly w/additional documents • Special Circumstances • (unemployment (10 weeks), death, loss of untaxed income, divorce/separation)
Campus-Based Aid • Federal Work Study (FWS) • Eligibility: Undergraduates & Graduates • Answer question on FAFSA • Hourly rate and bi-weekly payment • At least minimum wage • Average award $3,000 • Must work & earn funds, not deducted from bill. • Federal Supplemental Educational Opportunity Grant (SEOG) • Eligibility: Students with exceptional need • Priority to Pell Grant Recipients • Undergraduates only • Awards vary between $100-$4,000
Institutional Aid • University Scholarships • Discounts (employee/multiple children) • Institutional application may be required • Know deadline dates • Contact Financial Aid Office for details
TEACH Grant • Complete FAFSA • No demonstrated financial need • US Citizen/Eligible Noncitizen • Undergrad, post baccalaureate or grad student at a participating university • Enroll in appropriate course work • Maintain minimum GPA of 3.25 • Sign TEACH Grant Agreement to Serve • Not fullfilled, unsub loan w/interest from initial award
Direct Stafford Student Loans • Freshmen $5500 • Sophomore $6500 • Junior/Senior $7500 • Graduates $20,500 • Independent students $4000/$5000 • Disbursed ½ Fall and ½ Spring • Fees = 1.068%
Direct Student Loans con’t • Subsidized • Federal government pays interest • Unsubsidized • Student pays on a quarterly basis OR • Capitalized • Interest Rate 2016-17 • 3.76% capped @ 8.25% • Six month grace period before repayment
Direct Student Loans Con’t. • Complete FAFSA for intended academic year • Sign Master Promissory Note at www.StudentLoans.gov • Loan Entrance Counseling • www.StudentLoans.gov • Good for 10 years
Federal PLUS Loan • Must file current FAFSA • Parents of dependent students • Credit check required • Interest Rate 2016-17 • 6.31% capped @ 10.50% • Fees • 4.288% • Repayment 60 days after second disbursement (January/Spring) • Contact your institution for specific application procedures
Private/Alternative Education Loans • Nonfederal loans, made by a lender such as a bank, credit union, state agency or a school. • Student is the borrower w/credit worthy co-signer if applicable. • Based on credit check • Deferrable while in school • Fees, interest rates, loan amounts vary by lender. • Read the fine print and borrow wisely!
PA State Programs • Presented by: • Tiffanie DeVan • Higher Education Access Partner • PHEAA • firstname.lastname@example.org
PHEAA State Grant 1-800-692-7392 or pheaa.org Full-time, in PA…...….up to $4,378 (16/17 AY) • Part time, in PA……… up to half of the full time award • Out of state….. Up to $559 inDE, MA, OH, VT, WV, and DC Veterans: up to $745 • All other states….= $0 • Must be a resident of PA, attend at least half-time in a minimum 2 year program and meet satisfactory academic progress – see pheaa.org or the PA Student Guide • Eligibility determined by FAFSA & PA Grant Form • Amounts determined by Need Analysis & Cost of School • Maximum eligibility of eight semesters • Income validation • Separate application for summer
PHEAA State GrantDeadlines PA State Grant Deadlines May 1, 2017 – First-time and renewal students attending colleges, universities & college transferrable programs (excluding community colleges) August 1, 2017 – First-time students attending community college; a business, trade or technical schools, hospital school of nursing; Open Admissions Institutions or a 2-year non-transferrable degree program at a Jr or 4-year college. File the FAFSA & PA Grant by the earliest school deadline
FAFSA Completion Page • Apply for your State Grant from the FAFSA Completion/Con-firmation page • Transfers FOTW data to the State Grant Application Start your state application to apply for Pennsylvania state based financial aid
PA State Grant Application Missed the link on FAFSA? • Link in an email sent to student/parent from PHEAA, OR • Go to PHEAA.org; State Grant Program; and complete the form Additional questions needed to determine PA State Grant eligibility: • Enrollment status (full-time/part-time) • Value of PA 529 College Savings Program • Program of study for students in vocational programs • Employment status • Print and mail the signature page
Special State Aid Program • State Work-Study - job related to major • Blind or Deaf Beneficiary Grant • Educational Assistance Grant (EAP) – National Guard • Chafee Education and Training Grant – co-administered with the PA Department of Human Services • Postsecondary Educational Gratuity Program (PEGP) • Partnerships for Access to Higher Education (PATH) • Pennsylvania Targeted Industry Program (PA –TIP) • Ready to Succeed Scholarship (RTSS) • For details, see the PA Student Aid Guide, or visit PHEAA.org.
PHEAA Partnerships for ACCESS to Higher Education (PATH) Program • PHEAA partners with community-based organization in PA that offer scholarships to eligible PA students. • PHEAA PATH grant matches dollar for dollar up to $2,500. • Eligible Students: • Must be nominated by PATH partner • Demonstrate financial need • Must be enrolled at least ½ time in a PHEAA-approved postsecondary school • Must have received a PA State Grant for the semester/quarter for which they are nominated to receive a PATH Grant • Apply: • Complete FAFSA and PA State Grant Application • Contact participating PATH partner in your area A complete list of PATH partners can be found at PHEAA.org
Ready to Succeed Successfully (RTSS) • Provides income-based scholarships to high-achieving students whose family income does not exceed $110,000 • Awarded in combination with the PA State Grant, up to $2,000 for full-time students and up to $1,000 for part-time students • Eligible Students: • Must have completed freshman year (24 semester credits) • Must maintain 3.25 GPA (focus on good grades your freshman year) • Must be nominated by post-secondary school • Apply: • Complete FAFSA and PA State Grant Application • Contact financial aid office for complete eligibility requirements A complete list of participating schools can be found at PHEAA.org
Postsecondary Educational Gratuity Program (PEGP) • Program is for children of PA: • Police officers • Firefighters • Rescue & ambulance squad members • Correction officers • National Guard members • Died in the line of duty since January 1, 1976 • November 30, 2004 amendment for: • Sheriffs & deputy sheriffs • National Guard members • Certain other individuals on federal or state active military duty • Died in the line of duty beginning September 11, 2001
PEGP Con’t Eligibilty: • Student must be 25 years of age or younger at the time of application. • enrolled FT in associates or baccalaureate degree. Will receive: • Tuition, fees, room & board waivers. • Minus any grant or scholarship received. • FAFSA must be filed. • At any PA community college, state university or state-related institution. Applications are available at www.pheaa.org .
Educational Assistance Program (EAP) • State funded • PHEAA & the PA Dept., of Military & Veterans Affairs (DMVA) • Provides tuition assistance for students who enter the PA National Guard for a period of six years. • Students apply through local Nat’l Guard units. • PA Residents • Degree seeking • Max award is up to FT, in-state tuition at PA state owned university • $6,820.00 . NOTE: Guard member must fulfill enlistment commitment or reverts to loan plus interest
Office of Vocational Rehabilitation (OVR) • State Agency provides services for individuals with physical disabilities, mental/nervous disorders, drug & alcohol rehabilitation and learning disabilities. • Services include financial support (gift-aid) for higher education. • Must complete current FAFSA to determine state & federal aid.
PHEAA Online Resources • PHEAA.org • EducationPlanner.org • MyNextMove.org • MySmartBorrowing.org • YouCanDealWithIt.com • Facebook.com/pheaa.aid • MyFedLoan.org
Other Alternative Sources • Institutional/Private Payment plans • Staff Discount • Deferred payment plans • Home Equity Loans - Parent • Existing family resources • Savings, 529 plans, Educational IRAs • Employers & churches • Libraries – Scholarship Books • Internet – • www.FastWeb.com • www.EducationPlanner.org • Other FREE scholarship search sites • www.HBCUmentor.org
Be Scholarship Search Savvy • No Credit Card #’s, bank or savings account information • No Fees • Application, disbursement, redemption & processing fees • No PO Box addresses • No Guarantees • Walk away • Avoid unsolicited scholarship requests • Ask how did you get my name? • Free scholarship or “financial planning” seminars • Sales pitch, act now or lose opportunity • Be leery of official sounding names • National, education, or federal
Free Scholarship Searches • Bigfuture.collegeboard.org • Blackexcel.org/100minority.htm • Collegenet.com/mach25 • Fastweb.com • Collegetreasure.com/scholarengine.html • Financialaidfinder.com • Hsf.net (hispanic)
Internet Resources • FSAID.ed.gov • FAFSA4caster.ed.gov • Studentaid.ed.gov • Collegescorecard.ed.gov
Other Military Educational Benefits Reserve Officer Training Corp ROTC Veterans Educational Benefits Chapter 35 For dependent of Veteran who is totally & permanently disabled
Tips for a Smooth Transition • Empower the student: • Graduation money • Applying for scholarships • Balance school & working • Encourage the student to form relationship with FAO • Balance Dreams with Opportunities: • University a good fit for student • Cost • Career trajectory & salary • Support the loan payments • Parents Role: • Plus loan • Co-signer on alt loan • Home equity loan • Other students in college • What can you afford
Smooth Transition Con’t • Exhaust free money first • Grants, scholarships, employee discounts • Choose the right student loan • Stafford, plus or alternative loan • Seek consultation: • Admissions • Stats, Career, Job placement rate, etc. • Financial Aid • Ask questions often
Parting Words • Live like a student not a rock star. • Borrow only what is necessary. • Excessive borrowing will result in a longer repayment period that is costly. • Do you want to be repaying your students loan when your children enroll in college? • And/or moving back home.