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Pequea Valley High School Financial Aid Night

Pequea Valley High School Financial Aid Night. ACCESS to postsecondary education. Goals of Financial Aid. CHOICE among postsecondary institutions. Principles of Financial Aid.

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Pequea Valley High School Financial Aid Night

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  1. Pequea ValleyHigh SchoolFinancial Aid Night

  2. ACCESS to postsecondary education Goals of Financial Aid • CHOICE among postsecondary institutions

  3. Principles of Financial Aid • Student and parent have primary responsibility for funding postsecondary education to the extent they are able. • Families will be treated equitably and consistently by the need-analysis formula.

  4. Determine final eligibility for need-based aid • Package aid • Send award letter which details: • Types and amounts of aid • Disbursement procedure • Conditions of awards Role of the Financial Aid Office

  5. Need-based Financial need Largest source of gift aid funds Merit-Based Academic Ability Special Talent/Achievement Program of Study Family Background How Aid is Awarded

  6. Gift Aid Scholarships Grants Self-Help Loans Employment Types of Aid

  7. Sources of Aid • Federal • State • Institutional • Private

  8. Federal Financial Aid Programs • Pell Grant • Foundation for federal financial aid • Must submit FAFSA • EFC and COAdetermine eligibility • $5,550 maximum 2012-13

  9. Federal Financial Aid Programs • Campus Based Aid • SEOG • Priority to Pell Grant recipients • Grant maximum = $4,000/yr • At MU – maximum is $800/yr • At F&M – maximum is $1000/yr • Work study • Job on campus or in community • Minimum wage or higher • Perkins loan • Loan maximum = $5,500/yr • At MU – maximum is $3000/yr • At F&M – maximum is $1000/yr • Interest rate = 5% • 9 month grace period before interest begins accruing and repayment begins

  10. Federal Direct Student Loans Lender is the Department of Education • Subsidized - 3.4% • Unsubsidized – 6.8%

  11. Federal Stafford Loan Limits Requirements to receive the additional loan: 1. Must be an Independent Student (and request the additional amount by contacting the Office of Financial Aid) or be a Dependent Student whose Parents were denied the PLUS Loan 2. Student must request the additional amount by contacting the Office of Financial Aid

  12. State Financial Aid • PA State Grant • Must be HS grad or have GED • Must be a PA resident • $4,000 maximum in PA (12-13) • $3,375 maximum at Millersville • $600 maximum • CT, DE, MA, ME, RI, VT, WV, DC • $400 maximum all other states • except NY, NJ, MD

  13. Institutional Aid • May be grants, scholarships, loans, employment or discounts • May require institutional application and/or other supplemental financial aid forms • Deadline dates are very important • Each institution varies in resources available for awards, percentage of need met, & what formula they use • Contact the Admissions or Financial Aid Office at each institution being considered

  14. How to Apply • FAFSA on the Web (Online application) www.fafsa.ed.gov • FAFSA PIN Number (Online request for parents & students)www.pin.ed.gov- can be done now • List email address on FAFSA • Free Application for Federal Student Aid (Paper application)- NO LONGER AVAILABLE IN HIGH SCHOOLSOR IN COLLEGE FINANCIAL AID OFFICESIF YOU WISH TO HAVE A PAPER COPY, CONTACT FEDERAL STUDENT AID AT 1-800-433-3243

  15. Applying For Aid • Complete the Free Application for Federal Student Aid (FAFSA) • Find out what other applications are required and the deadlines • Complete all applications before the deadline and early if possible

  16. Additional Forms • Non-Custodial Parent Statement • Business and Farm Supplement • Institutional Aid Application • CSS/Financial Aid Profile

  17. Applying for Aid (Cont.) • Do not wait to be accepted for admissions before filing for aid • Respond quickly to requests for additional information • Explore every funding resource available to you • Keep copies of all applications for your records

  18. Family Educational Rights and Privacy Act (FERPA) • All financial information submitted is protected. • Data is treated as confidential. • Release to a third party only with signed authorization. Students receiving financial aid may be required to complete a “Authorization to Release Information Form” permitting a school to be able to speak to anyone other than the student once s/he has enrolled (has begun classes).

  19. Special Circumstances • Divorce or separation • Must list custodial parent and his/her spouse • Custodial parent is the parent with whom you reside more than 50% of the time • If you live with each parent exactly equally, you must choose which parent to use on the FAFSA • If you live with neither parent and on your own, you must still provide parental information (unless you qualify as an independent student based on the dependency status questions) – use parent with whom you most recently resided (& his/her spouse) • Dependency Override • Living with relatives who are not considered “legal guardians” – i.e. no court order or court order refers to “custody” (does not use the word “guardian” in the paperwork) • Parents incarcerated or in other institutions • Unable to locate parents

  20. Professional Judgment • Reduction in income • Extraordinary medical or dental expenses • Unreimbursed child care expenses • Disability expenses • Tuition for elementary or secondary school Documentation/Forms are likely to be required – please contact the Financial Aid Office of the school you choose to attend for more information about what is needed for these items.

  21. INDEPENDENT STATUSThe following questions must be answered to determine student’s status – if student can answer “yes” to any of the following questions, s/he is independent • Born before January 1, 1990 • As of date FAFSA is completed, student is married • At the beginning of 2013-2014 school year, working on master’s or doctorate degree • Currently serving on active duty • Veteran of U.S. Armed forces • Have children or other dependents who receive more than 50% of their support from them (means that student must support him/herself 100% and the child > 50% – living at home at low cost or free of charge does NOT constitute supporting child > 50%

  22. INDEPENDENT STATUS • When you were age 13 or older, were both of your parents deceased, were you in foster care, or were you a dependent/ward of the court • Answer “yes” if • You had no living parent (biological or adoptive) when you were age 13 or older, even if you are now adopted • You were in foster care when you were age 13 or older, even if you are no longer in foster care as of today • You were a dependent/ward of the court when you were age 13 or older, even if you are no longer a dependent/ward of the court as of today PROOF OF DECEASED PARENTS, FOSTER CARE, OR DEPENDENT / WARD OF COURT MAY BE REQUIRED BY FINANCIAL AID OFFICE

  23. INDEPENDENT STATUS • As of today, are you an emancipated minor or in legal guardianship as determined by a court in your state of legal residence? • Answer “yes” if you can provide a copy of a court’s decision that you are an emancipated minor or are in legal guardianship (court documents must use the word “guardian.”) The court must be located in your state of legal residence. If the court order is no longer in effect, answer “no.” PROOF OF COURT DECISION MAY BE REQUIRED BY FINANCIAL AID OFFICE

  24. INDEPENDENT STATUS • At any time on or after July 1, 2012, did: • Your high school or school district homeless liaison determine that you were an unaccompanied youth who was homeless? • The director of an emergency shelter program funded by the U.S. Department of Housing and Urban Development determine that you were an unaccompanied youth who was homeless? • The director of a runaway or homeless youth basic center or transitional living program determine that you were an unaccompanied youth who was homeless or were self-supporting and at risk of being homeless?

  25. TIPS on Completing FAFSA • Be sure FAFSA is signed with PIN or using Signature Page • If you receive a box that indicates you may skip Asset information – do NOT skip it – provide the information – many times a question is answered incorrectly which gives you this box and the asset information is actually necessary to complete the application • Meet the earliest deadline of your school –(the FAFSA cannot be completed prior to January 1). • Please check our website for information regarding more tips on completing the FAFSA.

  26. Notification Process • Student Aid Report (SAR or eSAR) • Correction Process • PHEAA Status Notice • All first time applicants are required to provide additional information to PHEAA regarding someitems not listed on the FAFSA,such as high school and graduation date, among others. • Schools typically begin sending out financial aid statements to admitted freshman students usually around mid-March.

  27. Verification • What is it? • A review process where the accuracy of the data reported on the FAFSA is checked against the source documents. • What forms do I need to send? • Common documents requested include: • 2012 U.S. Tax Transcripts • Verification Worksheets • W-2 Forms • Who reviews the information? • Review performed by the Financial Aid Administrator

  28. Expected Family Contribution Student Contribution (SC) + Parent Contribution (PC) = E F C One common misconception people have about the EFC is that it is the amount of the outstanding balance to be paid to the university for the year. The EFC is actually a number determined by a formula using the information supplied on the FAFSA. It is used by financial aid professionals to determine amounts of eligibility for need-based financial aid programs.

  29. Direct Costs (billable) Tuition Fees Room Board Indirect Costs (non-billable) Personal Expenses Transportation Books and Supplies Cost of Attendance

  30. Millersville University Cost of Education(per year 20012-2013)

  31. Calculating Financial Need Cost of Attendance $21,442 Less EFC(3,174)(determined from information provided on the FAFSA) Equals NEED $18,268 *Please note, the EFC listed here is for sample purposes only

  32. Financial need $18,268 Minus any aid (8,588)(in the form of grants, scholarships, work-study, subsidized loans) Equals remaining need $ 9,680 Will All My Need Be Met? *Please note, the aid amount listed here is for sample purposes only

  33. Comparing Aid Packages Schools will have varying amounts of money available to be awarded in scholarships. Federal grants and federal loans will most often be the same at each school. The EFC will be the same for each school.

  34. College Expenses The actual outstanding balance and the EFC may not match. You will be responsible for paying the outstanding balance of the bill. To calculate how much you will owe: School charges (tuition, fees, room, board) - Financial Aid (grants, loans, waivers) Outstanding Balance It is a good idea to begin planning early for how much you will owe – do not wait until you receive the bill – many times that does not allow the Financial Aid Office enough time to process any additional aid. Most schools will have estimated or actual costs available as early as February

  35. Satisfactory Academic Progress (SAP) In order to maintain financial aid eligibility, a student must make Satisfactory Academic Progress (SAP) • Federal (also known as Title IV) Aid, includes: Check with the Office of Financial Aid for their policy on SAP for Federal Aid. • State Aid – includes PA State Grant • A full-time student (12+ cr per semester) must pass 24 new credits • A part-time student (6-11 cr per semester) must pass 12 new credits • Pell Grant • SEOG • Work-study • Stafford Loan • Perkins Loan • PLUS Loan • Academic Competitiveness Grant • National SMART Grant • Graduate PLUS Loan

  36. Alternatives for Meeting Need • Family Savings • Institution or private payment plans – • Federal Direct Parent PLUS loans • Loan in parent’s name (biological, adoptive, or step-parent) • Based on credit • Fixed Interest rate = 7.9% • Loans processed after 7/1/08 will automatically be deferred – only the interest will need to be paid until 6 months after student graduates or drops below half-time status. You can choose to make payments on principle amount by contacting the lender. • Denial of the PLUS loan based on a credit check means the student can have additional Federal StaffordLoans

  37. Alternatives for Meeting Need, continued • Alternative loans • Loans in student’s name, but usually requires a credible co-signer • Money from private banks • Variable interest rates and terms • Check with aid office for a listing • Payments for principle are deferred generally until 6 months after student graduates or drops below half-time status (continue to pay interest on loan) • Home equity loans

  38. Information on the Internet SEE YELLOW WEB HANDOUT ASSISTANCE AND ADVICE • Federal Student Aid-U.S. Dept of Ed.’s comprehensive website http://www.studentaidontheweb.gov • Interactive calculators: EFC Estimator, College Cost Estimator, Loan Payment Calculator, and Savings Plan Designer. • http://www.finaid.org/calculators • Ask the Aid Advisor – Over 100 Financial Aid Administrators available to answer your questions • http://www.finaid.org/questions/askadvisor.phtml

  39. On-Line Services www.educationplanner.com www.ed.gov/finaid.html www.aessuccess.org www.students.gov www.pin.ed.gov www.fafsa.ed.gov

  40. Hope Scholarship Lifetime Learning Credit Student loan interest deductibility Tuition and Fees Deduction Coverdell Education Savings Accounts (ESA), previously referred to as Education IRAs 529 Plans Higher Education Tax Benefits

  41. Scholarship Scams An FTC pamphlet warns be wary of companies that: • Have FL or CA addresses, residential offices or PO boxes without Street information • Have names that sound like federal agencies • Make overblown claims such as “Everybody’s eligible!” and “Guaranteed success!” • Charge to complete the FAFSA and request bank account or credit card information

  42. Scholarship Scams (Cont.) What should you do if you suspect a scam? • Consult a H.S. counselor or Financial Aid Office • Save all forms and details about the company and services including names of individuals • Report suspected scammer to any of the following: • National Fraud Information Center • www.fraud.org • Better Business Bureau • www.bbb.org

  43. Timeline For Making College Happen -- Financially! FALL SENIOR YEAR • Continue looking for outside scholarships • Talk to the financial aid administrators at the colleges being considered WINTER SENIOR YEAR • Parents and students complete federal tax returns ASAP after January 1st • Complete the FAFSA anytime after January 1st – be sure to meet the earliest deadline of the schools being considered • Submit all financial aid applications and required documentation to each college

  44. SPRING SENIOR YEAR Timeline (cont.) • Begin receiving financial aid packages • Review and Compare packages • Inform financial aid offices of any unusual circumstances which may have arisen in your family • Develop a plan for how to pay the “bottom line” (costs that are not covered by financial aid) SUMMER BEFORE COLLEGE • Inquire about on and off campus jobs • Complete loan applications and promissory notes • Apply for PLUS/Alternative Loans if you plan to use either to help cover your outstanding balance • Keep working and saving (especially for 1st semester books) • Find out what your roommate is bringing for the room so you don’t “double buy”

  45. Financial Aid Tips • Students: Be involvedin the financial aid process – this is your education! • Every student should file a FAFSA for his/her freshman year. • Meet all deadlines and respond promptly to requests for additional information. • Stay organized. • Take the time to explore and apply for outside scholarships and other funding sources.

  46. Financial Aid Tips (cont.) • See the financial aid office with any unusual financial circumstances. • Don’t forget that you will need to complete new aid applications for each academic year. (Every time you file taxes, file your FAFSA) • Make sure you know how you’re going to pay for your out-of-pocket expenses (costs not covered by aid). • Above all – ASK QUESTIONS!!! This process can seem confusing and overwhelming. Anytime you are uncertain about anything – ASK!!!

  47. Thank You for Coming Best wishes for a successful academic career!

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