What is Financial Aid?

1. What is Financial Aid? • Scholarships • Grants • Loans • Employment opportunities

2. Federal Pell Grants • Awarded to eligible undergraduates pursuing first undergraduate degree • Actual award amount based on COA, EFC, and enrollment status • Maximum award for 2006-07 = $4,050

3. Federal Supplemental Educational Opportunity Grants (FSEOG) • Eligible students: • Undergraduates pursuing first baccalaureate • Awarded first to students with “exceptional financial need” • Priority to Federal Pell Grant recipients • Annual award amounts: • $100 minimum • $4,000 maximum

4. Federal Work-Study (FWS) Earnings • Eligible students: Undergraduate, graduate, and professional students • Employment may be on or off campus • Work Between Classes • Spending Money

5. PA State Grant Award • May 1st Deadline • Max Award $3500 • Min Award $400 • 8 Semesters

6. Federal Perkins Loans • Eligible students: • Undergraduate, graduate, and professional students • Priority to students who show “exceptional need,” as defined by school • Loan amount varies • Maximum annual loan amounts: • $4,000—undergraduate students • $6,000—graduate and professional students

7. Federal Perkins Loans • Interest rate: 5% • 9-month grace period • Repayment period may be up to10 years • Deferment and cancellation provisions available

8. Stafford Loans • Student loans available under: • Federal Family Education Loan (FFEL) (banks and credit unions) • Federal Direct Student Loan (Direct Loan) Program (participating schools) • Flat interest rate, 6.8% • Fees: up to 3% origination; • up to 1% insurance

9. Stafford Loans • Annual loan limits • $3,500 (1st year undergraduates) • $4,500 (2nd year undergraduates) • $5,500 (each remaining year of undergraduate study) • $8,500 (each year of graduate/professional study) • Subsidized Stafford: Must demonstrate “need” • Unsubsidized Stafford: Need is not a consideration Subsidized: demonstrate “need” • Unsubsidized: Not based on “need”

10. PLUS • Parent loan program for parents of dependent undergraduate students • Annual loan limit: COA minus other aid • Variable interest rate Fixed at 8.5%

11. Cost of Attendance • Tuition and fees • Room and board • Books and supplies • Transportation • Miscellaneous personal expenses.

12. Definition of Need Cost of attendance (COA) – Expected family contribution (EFC) = Need

13. Applications FAFSA Profile Stafford PLUS Scholarships

14. Application Process • Submit FAFSA by school’s deadline • Check information from each school to determine: • Required application materials • Application deadlines

15. Independent Student Definition • At least 24 years old by December 31 of award year covered by the FAFSA; • Graduate or professional student; • Married • Has children or dependents (other than a spouse) • Orphan or ward/dependent of the court; • Veteran of U.S. Armed Forces; or • “Independent” based on unusual circumstances

16. FAFSA on the Web • PIN Numbers • Web site: www.fafsa.ed.gov • 2007-08 FAFSA on the Web available on or after January 1, 2007 • Pre-Application Worksheet:

17. Paper FAFSA 2007-08 FAFSA—8-page booklet containing: • Instructions • 103 questions in 7 steps • Worksheets A, B, and C • Pre-addressed envelope to mail completed form and return-receipt postcard

18. FASA Information • Parent and student Social Security Numbers • Divorced/remarried parental information • Income tax information • Household size, number in college • Real estate and investment net worth • Business/Farm net worth

19. FAFSA Processing Results • Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s e-mail address was not provided • E-mail notification containing a direct link to student’s on-line SAR if student’s e-mail was provided on paper or electronic FAFSA

20. Private Scholarship Search Free Internet scholarship search engines: • FastWeb: www.fastweb.monster.com • Scholarship Resource Network Express: www.srnexpress.com

21. Good Luck!