Financing a College Education

1. Financing a College Education

2. Financial Aid • The most important decision to make about college attendance is finding the right school that will provide the educational program most suited to the student’s needs. • How to finance that education is the next issue.

3. Financial Aid • Financial aid is funding provided to the student to assist with educational expenses. • The family is considered to be the first source of financial support. • The other major sources of financial aid are the federal government, state government, colleges, and private foundations, organizations and agencies.

4. Financial Aid Sources

5. Cost of Education • What does is really cost to attend college? • Expenses include: • Tuition -Fees • Room -Board • Books -Supplies • Transportation -Personal Expenses

6. Cost of Attendance

7. Cost of education may vary by school type, academic program, academic level, state residency, and program of study. Be very careful when comparing college costs! Hard Costs (tuition, fees, room and board) versus Total Costs (also includes books, personal expenses, and transportation). Cost of Education

8. Cost of Education • Private College or University • $20,000 to $40,000 • PA State Related University • $17,000 to $20,000 • PA State Owned University • $13,000 to $14,500 • PA Community College • $1,400 to $2,500 (Tuition Only)

9. Cost of Education

10. Cost of Education • Don’t get sticker shock! • High cost schools often have substantial amounts of institutional aid that can provide adequate financial support.

11. Application Process • Find out from each institution what financial aid application(s) are required and the deadline date for filing them. • Do not wait until you are admitted to file for financial aid. • Everyone must complete the 2004-2005 Free Application for Federal Student Aid (FAFSA).

12. FAFSA

13. FAFSA on the Web

14. Application Process • Other financial aid forms may include a CSS Profile or an institutional application. • More information on scholarship applications will be presented at a later point.

15. Application Process • Keep copies of all forms that you file. • Keep copies of all documents used to complete the applications. • Don’t miss any deadline dates. • Apply for US Department of Education PIN numbers for both the student and one of the parents before you start.

16. Completing the FAFSA • Can complete the form using estimated data if you have not yet filed your 2003 federal income tax returns. • Pink sections are for the student and purple sections are for the parents. • Follow instructions carefully!

17. Expected Family Contribution • The FAFSA data is used to calculate an Expected Family Contribution (EFC) which measures the financial ability of the family to contribute to educational expenses. • The major determinants of EFC are income, assets, household size, and number in college.

18. Financial Need • Financial need is determined by subtracting the EFC from the cost of education. • Cost of Education • - Expected Family Contribution Financial Need

19. Financial Need • College A College B College C • 40,000 19,000 14,000 • 5,0005,0005,000 • 35,000 14,000 9,000 • Colleges try to meet the financial need of the student.

20. Financial Aid Programs • Financial aid comes in three major types: • Grants and Scholarships • Student Employment • Educational Loans

21. Financial Aid Programs • Grants are based on financial need. Major grant programs include: • Federal Pell Grant • Pennsylvania State Grant • Federal Supplemental Educational Opportunity Grant

22. Financial Aid Programs • Student employment offers the opportunity to work and earn money while also gaining on-the-job experience. • Positions available both on and off campus.

23. Educational Loans • Educational loans are funds that are borrowed now to be repaid in the future. These programs represent the largest available source for student aid • Terms and conditions vary among the various loan programs.

24. Educational Loans • Federal Loans • Federal Stafford Loan (Ford Direct Loan) • Subsidized • Unsubsidized • Federal Perkins Loan • Federal PLUS Loan • Health Professions Loans • Privately Financed Alternative Loans • Multiple Providers

25. Scholarships

26. Scholarships • Scholarships are based on special talent, affiliations, or merit. • Check with any organization, association, business, religious group, or other entity that the student or parents have an affiliation. • Do web searches for scholarships by going online.

27. Scholarships • www.fastweb.org

28. Scholarships • Scholarships require more effort to locate and apply for since there is not a centralized application process. • Some applications may require written essays or letters of recommendation.

29. Financial Aid Package • After the Financial Aid Office has all of your information, a “financial aid package” will be sent to you outlining the types and amounts of aid that you are being offered. • You can compare the various offers that you receive in order to make an informed decision about your college choice.

30. Financial Aid Package • Is the package sufficient to enable your child to attend? • If not, where or how will you obtain the needed funding? • What will be the debt load for the student and for the parents after four years of study? • Is working truly an option?

31. Decision Time • After you have decided upon a college, pay the advance deposit fee by May 1 to ensure your admission. Contact the Financial Aid Office to accept your financial aid package. • Notify the schools that you are not going to attend of your decision to enroll elsewhere.

32. Keeping Your Aid • The financial aid applications must be filed out each year in order to continue to receive financial aid. • Students must be maintaining satisfactory academic progress in order to continue to be eligible for aid.

33. Good Luck!