Paying for college

1. Paying for college Jeff Lambert Computer Trainer Free Library of Philadelphia Hot Spot Room D-136

2. College can be expensive! • Cost of Attendance (COA) • Direct + Indirect Costs • Expected Family Contribution (EFC) • What parents and student can reasonably be expected to contribute • Income-based figure generated by FAFSA • COA — EFC = Financial Need

3. What is financial aid? • Financial aid is funds provided to students and families to help pay for college expenses • Need-based and Merit-based • Types of Financial Aid: • Scholarships • Grants • Loans (federal and private) • Work Study

4. Scholarships • Doesn’t have to be paid back • Awarded on the basis of merit, skill, or unique characteristic • Where to look for scholarships: • Philadelphia School District Scholarship Clearinghouse http://philasd.org/offices/scholarships • Philly Goes to College http://phillygoes2college.com

5. Work study grants • Doesn’t have to be paid back • Awarded based on financial need by your college • Based on FAFSA and application information • Allows student to earn money to help pay educational costs • A paycheck; or non-monetary compensation, such as room and board

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

7. Where does financial aid come from? • Federal government • States • Private sources • Civic organizations and churches • Employers

8. What is fafsa? • Free Application for Federal Student Aid • A standard form that collects demographic and financial information about the student and family • Available in English and Spanish, paper or electronic • Information used to calculate the Expected Family Contribution or EFC • Colleges use EFC figure to award student aid • Filing opens January 1, 2012 for 2012-13 academic year • Federal Aid deadline is June 30, 2012 • http://fafsa.gov

9. Why file electronically? • Built-in edits to prevent costly errors • Skip logic allows student and/or parent to skip unnecessary questions • More timely submission of original application and any necessary corrections • More detailed instructions and “help” for common questions • Ability to check application status on-line • Simplified application process in the future

10. FILING: your fafsa pin (personal identification number) • Website: www.pin.ed.gov • Sign FAFSA electronically • Not required, but speeds processing • May be used by students and parents throughout aid process, including subsequent school years • To apply for a pin, visit http://pin.ed.gov

11. FILING: Dependent or independent? NO TO ALL QUESTIONS: Dependent YES TO ANY QUESTIONS: Independent • Were you born before January 1, 1988? • As of today are you married? • At the beginning of the 2011-2012 school year, will you be working on a master's or doctorate program (such as an MA, MBA, MD, JD, PhD, EdD, or graduate certificate, etc.)? • Are you currently serving on active duty in the U.S. Armed Forces for purposes other than training? • Are you a veteran of the U.S. Armed Forces? • Do you have children who will receive more than half of their support from you between July 1, 2011 and June 30, 2012? • Do you have dependents (other than your children or spouse) who live with you and who receive more than half of their support from you, now and through June 30, 2012? • At any time since you turned age 13, were both your parents deceased, were you in foster care or were you a dependent or ward of the court? • As determined by a court in your state of legal residence, are you or were you an emancipated minor? • As determined by a court in your state of legal residence, are you or were you in legal guardianship? • At any time on or after July 1, 2010, did your high school or school district homeless liaison determine that you were an unaccompanied youth who was homeless? • At any time on or after July 1, 2010, did the director of an emergency shelter or transitional housing program funded by the U.S. Department of Housing and Urban Development determine that you were an unaccompanied youth who was homeless? • At any time on or after July 1, 2010, did 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?

12. FILING: What documents do you need? • Social Security Card • Driver’s license (if any) • Your 2010 W-2 forms and other records of money earned • Your (and your spouse’s, if you are married) 2010 Federal Income Tax Return • Your Parents’ 2010 Federal Income Tax Return (if you are a dependent student) • Your 2010 untaxed income records • Your current bank statements • Your current business and investment mortgage information, business and farm records, stock, bond and other investment records • Your alien registration or permanent resident card (if you are not a U.S. citizen)

13. FILING: Signatures • Required • Student • One parent (dependent students) • Format • Electronic using PIN • Signature page • Paper FAFSA

14. What comes next? • STUDENT AID REPORT • Update actual figures when available • Review for accuracy • THEN WHAT • When FAFSA is processed, • E-mail notification containing a direct link to student’s electronic SAR if student’s e-mail was provided on paper or electronic FAFSA • Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA submitted

15. Come visit the hot spot for help! Monday thru Friday, 2-6 pm D-136