Financial Aid Presentation 2016-17 Academic Year

1. Financial Aid Presentation2016-17 Academic Year Presented by: Carolyn A. Julian Student Aid Adviser & VA Coordinator Penn State University - Harrisburg

2. 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. • We believe that the purpose of student financial aid is to ensure everyone has equal access to postsecondary education. Promoting fairness and equity for students across all sectors of postsecondary education, with a particular emphasis on low-income, underrepresented and underserved students. 

3. 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. We take great pride in our essential task of helping our students and families determine the best ways to meet their educational expenses. • Access to Post-Secondary Education • Parents, students & universities partnership • Choice among Post-Secondary Institutions • College choice includes dollars and sense

4. 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

5. 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

6. 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.

7. Family Educational Rights and Privacy Act (FERPA) • Financial information submitted is protected. • Data is confidential. • Authorization required for release to a third party.

8. 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.

9. 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

10. CSS Financial Aid PROFILE • Used at Private Colleges & Universities along with the 2016-17 FAFSA. • https://profileonline.collegeboard.org • $25 fee for initial application & 1 college • $16 for each school • Payment online. • Ask for list of PA Schools

11. Free Application for Federal Student Aid (FAFSA)** • File 2016-17 online @ www.fafsa.ed.gov • Preferred Method • By University deadline date – February 15th or March 1, 2016 • 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 • Title IV College Code • **DO NOT PAY TO HAVE THIS COMPLETED!

13. FAFSA Completion • January – April throughout PA. • 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.

14. 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.

15. 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.

16. Cost of AttendanceAcademic year (2 semesters) Direct Costs (Bill): Tuition and Fees Room and Board Indirect Costs: Books and Supplies Transportation Personal Expenses

17. What is “Financial Need”? • Cost of Education (COE) • - Expected Family Contribution (EFC) • = Financial Need • Pell Grant • PHEAA Grant • SEOG Grant • Outside scholarships/grants • Perkins Loan • Direct Stafford Student Loan • Parent Plus Loan Balance +/-

18. How is Aid Awarded? • Need-Based (FAFSA) • Grants • Loans • Workstudy • Merit-Based • Academic Ability • Program of Study • Family Background • Special Talent/Achievement • Scholarships

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

20. 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

21. Federal Pell Grant • EFC determines eligibility (0-5157*) • Award amount based upon enrollment & school costs • $5,730-$602 ( 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)

22. 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 • Federal Supplemental Educational Opportunity Grant (SEOG) • Eligibility: Students with exceptional need • Priority to Pell Grant Recipients • Undergraduates only • Awards vary between $100-$4,000

23. Institutional Aid • University Scholarships • Discounts (employee/multiple children) • Institutional application may be required • Know deadline dates • Contact Financial Aid Office for details

24. 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

25. 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%

26. Direct Student Loans con’t • Subsidized • Federal government pays interest • Unsubsidized • Student pays on a quarterly basis OR • Capitalized • Interest Rate 2015-16 • 4.29% capped @ 8.25% • Six month grace period before repayment

27. 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

28. Federal PLUS Loan • Must file current FAFSA • Parents of dependent students • Credit check required • Interest Rate 2015-16 • 6.84% capped @ 10.50% • Fees • 4.288% • Repayment 60 days after second disbursement (January/Spring) • Contact your institution for specific application procedures

29. 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!

30. PA State Programs

31. PHEAA State Grant PA resident Full-time (12 or more credits) or Part-time (11-6 credits) $4,011.00* * (max for 2014-15) Degree seeking Eligibility of eight semesters Academic progress

32. PHEAA Con’t1-800-692-7392 • Deadline May 1 • Separate Award Notification • After May 15th • Limited Out-of-State • Reciprocal states: Delaware, Massachusetts, Ohio, Rhode Island, VermonT, DC and West Virginia. • Reduced Grant - $500 • No NY, NJ or MD unless approved unique program of study. • Income Validation

33. FAFSA Completion Page Apply for your State Grant From the FAFSA Completion/Confirmation Page Start your state application to apply for Pennsylvania state based financial aid

34. Completion Page con’t Must be completed by first-time applicants in addition to the FAFSA. Can be submitted in one of three ways: 1. Online upon completion of the FAFSA (Preferred); this is done via a link on the confirmation page; this option is available only once. 2. Through Account Access at PHEAA.org 24-48 hours after completing the FAFSA or.     3. By completing a paper Status Notice if the student did not use the link above or provide a valid email address. All three options require submission of a paper signature page!

35. 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

36. 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 .

37. PHEAA Partnerships for ACCESS to Higher Education (PATH) Program The PATH Program partners with: Nonprofit organization that provide scholarships to eligible needy students. PHEAA potentially matches dollar for dollar up to $2,500. Apply: Current FAFSA Contact participating PATH organization in your area A complete list can be found at PHEAA.org

38. Special State Aid Program • PHEAA administers a number of financial aid programs, some in partnership with other state agencies, which can assist the families with meeting college costs. • For a full listing and application requirements visit PHEAA.org or review booklet PHEAA PA Student Aid Guide.

39. 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.

40. 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

41. 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

42. Free Scholarship Searches • Bigfuture.collegeboard.org • Blackexcel.org/100minority.htm • Collegenet.com/mach25 • Fastweb.com • Collegetreasure.com/scholarengine.html • Financialaidfinder.com • Hsf.net (hispanic)

43. Internet Resources • EducationPlanner.org • YouCanDealWithit.com • MySmartBorrowing.com • FAFSA4caster.ed.gov • Studentaid.ed.gov

44. 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 (2014-15). NOTE: Guard member must fulfill enlistment commitment or reverts to loan plus interest

45. Other Military Educational Benefits Reserve Officer Training Corp ROTC Veterans Educational Benefits Chapter 35 For dependent of Veteran who is totally & permanently disabled

46. 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.

47. Questions, Comments, Concerns