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Paying for College and Understanding Financial Aid

Paying for College and Understanding Financial Aid. Jessica Petrie Financial Aid Coordinator Penn State York. A Recent Survey Says…. Financial aid is “quite important” in the college search process BUT there is a great deal of confusion about processes, award amounts, and timing.

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Paying for College and Understanding Financial Aid

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  1. Paying for College and Understanding Financial Aid Jessica Petrie Financial Aid Coordinator Penn State York

  2. A Recent Survey Says….. • Financial aid is “quite important” in the college search process BUT there is a great deal of confusion about processes, award amounts, and timing. “2014 Rising Seniors’ Perceptions on Financial Aid,” produced by Ruffalocody Enrollment Management, in conjunction with Scannell & Kurz

  3. What is Financial Aid? • Financial Aid consists of funds provided to students and families to help pay for postsecondary educational expenses • Students and parents have the primary responsibility for funding post secondary education to the extent they are able • Financial aid helps make up the difference

  4. Cost of Attendance • Average cost to attend for one academic year • Includes • Tuition and Fees • Room and Board • Books and Supplies • Transportation • Personal Expenses

  5. THE FAFSA

  6. Free Application for Federal Student Aid • A standard form that collects demographic and financial information about the student and family • Electronic application • Available in English and Spanish

  7. THE FAFSA

  8. FAFSA • Application opens October 1st • Use Prior Prior Year tax data • 2017-18 – use 2015 tax data • 2018-19 – use 2016 tax data

  9. FAFSA • Benefits of filing earlier • The financial aid process is more aligned with college application process • No need to estimate income • More time to explore student aid options

  10. FAFSA • IRS Data Retrieval Tool • Ability to import tax data from IRS website directly into the FAFSA • Verification • Second look at the application

  11. FAFSA • Colleges may set FAFSA filing deadlines • Penn State filing deadline – February 15 • Each state may set FAFSA filing deadline • Pennsylvania filing deadline – May 1

  12. FAFSA • You can send FAFSA info to 10 different schools • Results sent to schools listed • Results emailed to student email address provided • Review your results for accuracy

  13. FAFSA • Penn State – 003329 • Same school code for all campuses • EFC – Expected Family Contribution • Standard measure of family financial strength • Formula is law • Schools use EFC to determine federal aid eligibility

  14. FAFSA • www.fafsa.ed.gov • FAFSA is FREE!

  15. FAFSA • Sign FAFSA with an FSA ID • Gives students access to Federal Student Aid online systems • Keep FSA ID secure • Does not expire • www.fsaid.ed.gov

  16. Frequent FAFSA Errors • Social Security Numbers • Divorced/remarried parental information • Untaxed income • U.S. Income tax paid • Household size/ number in college • Real estate and investment net worth

  17. Special Circumstances • Change in employment status • Medical expenses not covered by insurance • Change in parent marital status • Unusual dependent care expenses • Student can not obtain parent information • Contact your financial aid office

  18. Award Letters • Lists the sources of aid you are eligible to receive based on the info from the FAFSA • Estimated award amounts and non-negotiable • Sent via email

  19. Grants • Money that does not have to be paid back • Usually awarded on the basis of financial need

  20. Grants • Federal PELL Grant • Federal Supplemental Educational Opportunity Grant (FSEOG) • Teacher Education Assistance for College and Higher Education Grant (TEACH) • PA State Grant

  21. PA State Programs • State Grant • Status notice • Account Access • CHAFEE Education and Training Grant Program

  22. Scholarships • Money that does not have to be paid back • Awarded on the basis of merit, skill or unique characteristic

  23. Scholarships • Foundations, businesses, charitable organizations • Deadlines and application procedures vary widely • Begin researching early and research what is available in the community

  24. Scholarships • Penn State scholarships are awarded to exemplary students and are highly competitive due to limited funding.  • No additional scholarship application • York awarded $366,850 in 14-15 and the University awarded $53,567,174

  25. Scholarship Resources • www.fastweb.com • www.Studentaid.psu.edu • www.collegeboard.com • www.careeronestop.org • High school guidance office

  26. Myth: Searching and Applying for Scholarships is Too Much Work • Searching for scholarships is the easy part • It gets much easier after your first few applications, since you can reuse and adapt your previous application essays • Some students don’t like essay contests and small scholarships, making them easier to win

  27. Work Study • Get a job on campus or in the community • Hourly rate must be at least minimum wage • Can be Federal, State or sponsored by Veterans Affairs

  28. Loans • Money students and parents borrow to help pay college expenses • Repayment usually begins after education is finished • Only borrow what is really needed • Look at loans as an investment in the future

  29. Loans • Federal Stafford Loans • Available to students • Borrowed from the government • Offer low fixed interest rates • Offer different repayment plans including deferment and forbearance • Repayment does not begin until after a student leaves school • Guaranteed loans for students

  30. Loans • PLUS Loan • Parent is the borrower • Offer delayed repayment option • Credit check required • Federally insured against death of student or parent • Opportunities for consolidation

  31. Loans • Federal Direct Stafford Loan and Parent PLUS Loan • Must complete Master Promissory Note • Must complete Entrance Counseling • www.studentloans.gov

  32. Loans • Private loans • Available to students • Borrowed from a bank • Interest rates may be fixed or variable • Credit based loans, most students require a cosigner

  33. Loans • Subsidizedand Unsubsidized • Interest 3.76% • Eligible for both • PLUS Loan • Interest 6.31% • Private Alternative Loans • Based on credit of applicant and cosigner

  34. Student Loan Debt • Know what you are getting into • Do your research • Understand the types of student loans • Do not borrow more than you need • Make a plan for repayment • Consider paying interest while in school • Don’t get yourself into further debt

  35. Paying your bill • Filling the gap that financial aid does not cover • Parent PLUS Loan • Private Loan • Cash payments

  36. Making Payments • Financial Aid – payments from outside sources • Bursar’s Office • Payments out of pocket • PA 529 plans • Deferred payment plans

  37. Helpful Websites • www.yk.psu.edu • www.studentaid.psu.edu • www.bursar.psu.edu • www.fastweb.com • www.studentaid.ed.gov • www.finaid.org • www.pasfaa.org

  38. Questions, Comments, Concerns

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