2014-15 Financial Aid High School Night Brought to you by

1. 2014-15 Financial Aid High School Night Brought to you by

3. Definition of Financial Aid • Dictionary.com(noun) money to support a worthy person or cause [syn: aid] • College definition: Grants, Scholarships, Loans, Student Employment, or other funds used to pay for higher education.

4. Financial Aid Acronyms FAFSA PHEAA MPN PLUS PHEAA USDE ISIR PIN FAO DRN EFC

5. CALCULATING FINANCIAL NEED Cost of Attendance LessExpected Family Contribution EqualsNEED

6. Cost of Attendance Direct Costs - Tuition, Fees, Room and Board Indirect Costs - Books, transportation, parking, laundry, personal

7. Expected Family Contribution (EFC) Federal Methodology is the formula created by Congress to determine EFC. Information supplied on the FAFSA is used to generate the EFC.

8. Debt is not considered • Debt does not improve your chances of receiving need based aid • Don’t buy a new house • Don’t finance a luxurious vacation • Current income is the major factor in determining need based eligibility

9. Need Comparison * * * The Expected Family Contribution is the same at each institution!

10. Types Of Aid • Gift Aid • Scholarships (merit based) • Grants (need based) • Self-Help • Loans • Employment

11. How Gift Aid Is Defined • Merit based aid • Academic ability • Special talent/achievement • Program of study • Family background • Need based aid • Financial need as determined by a formula created by USDE, Institution, Foundation

12. Sources Of Aid • Federal • State • Institutional • Private

13. Federal Pell Grant • Largest federal grant • FASFA required • EFC determines eligibility • Award amount based upon enrollment status and cost of attendance

14. Federal Direct Student Loan • FAFSA form required • Loan is in the student’sname • No credit check or cosigner required • No principal payments while enrolled • Repayment begins 6 months after student is out of school

15. Loan eligibility (Dependent, UG) Aggregate loan limit of $31,000 Base Amount: Subsidized or Unsubsidized Additional Amount: Always Unsubsidized

16. Cost of Borrowing Federal Direct Student Loan • Fixed interest rate of 3.4% (AY 2013-14) • Loan fees based on principal amount of each loan: • Direct Loan Program charges a net 1.05% origination fee at disbursement • Check with your school for application instructions

17. Federal Direct Parent PLUS Loan • Loan program for parents of dependent undergraduate students • Loan limits • Annual limit: cost of attendance less other aid • No Aggregate limit • Fixed interest rate • Direct PLUS: 6.4% plus a net 4.204% origination fee at disbursement • Additional Unsubsidized for PLUS denials

18. Other Federal Aid • Federal Supplemental Educational Opportunity Grant (FSEOG) • Federal Perkins Loan • Nursing Loan • Federal Work Study Program

19. State Aid • Pennsylvania Higher Education Assistance Agency (PHEAA) • PA Grants up to $4,348 for Pennsylvania schools, reduced to $600 for reciprocating states

20. Institutional Aid • Merit Awards • Need-based Awards • Institutional Applications • CSS/PROFILE Application • Free Application for Federal Student Aid (FAFSA)

21. Private Aid Scholarships or grants for outside sources such as: • Service/Fraternal Organizations • Employers/Businesses • Churches/Religious Groups • H.S. Guidance Counselors • Credit Unions & Banks • Civic Organizations • Internet

22. Private Aid Policies • No Adjustment • Dollar for dollar adjustment to institutional grant/scholarship • Dollar for dollar adjustment to self help aid • Percentage reduction in grant/scholarship and/or self help

23. Scam Warning Signs • You have to pay a fee • Money-Back Guarantee • Credit Card/Bank Account info required • A high pressure, sales pitch

24. How do I receive Financial Aid? You don’t: You do: • Apply early and by the deadlines • Complete all school financial aid documents that are available

25. How do I receive Financial Aid?(continued) • Remember: most aid is on “first-come, first-serve” basis • Do not wait to be accepted for admissions before applying for aid • Respond quickly to requests for additional information • Keep copies of everything for your records

26. Free Application for Federal Student Aid (FAFSA) • Collects family’s personal & financial information to calculate a student’s EFC • May file FAFSA in one of two ways: • Paper FAFSA • FAFSA on the Web

27. FAFSA on the Web (FOTW) • Web site: www.fafsa.gov • Available on or after January 1, 2014 • Requires 2013 Federal Tax Information (or estimates) • FAFSA on the Web Worksheet: • Questions follow order of FAFSA on the Web

28. CAUTION! • Avoid being charged a fee to file the Free Application for Federal Student Aid • The FAFSA process is FREE • Go to FAFSA on the Web (FOTW) at: www.fafsa.ed.gov or www.fafsa.gov

29. PIN Registration • Web site: www.pin.ed.gov • Required by students and parents throughout aid process, including subsequent school years

30. FOTW and IRS Data Retrieval • NEW: option that allows applicants to retrieve income tax information from the IRS database • Data will not available to access if: • Taxes not filed • Taxes were recently mailed (within last 3-4 weeks) • Taxes were recently e-filed (within last 7-10 days) • Married filed separately • Identity theft • Amended tax return

31. State Grant Form / Account Access The FAFSA confirmation page has a link to transfer FOTW data to the PHEAA state grant application Pennsylvania residents – Complete the State Grant application Click here if you want to apply for the Pennsylvania State Grant. Pennsylvania residents – Complete the State Grant application Click here if you want to apply for the Pennsylvania State Grant.

32. FAFSA Processing Results • CPS notifies student of FAFSA processing results by: • E-mail notification containing a direct link to student’s on-line SAR if student’s e-mail was provided on the FAFSA • Paper Student Aid Report (SAR) through U.S. Mail • Student with PIN can view SAR online at www.fafsa.gov.

33. Corrections • Corrections to FAFSA data may be made: • On paper SAR; • At: www.fafsa.gov using student & parent PIN • At the student’s Financial Aid Office • If estimated tax info was used or IRS info not available, FAFSA can be updated by using the IRS Data Retrieval process.

34. Verification • USDE has established edits to review the FAFSA information for accuracy • Common documents requested include: • 2013 U.S. Tax ReturnTranscript • W-2 Forms • Verification Worksheets • SNAP documentation • Child support paid out • HS diploma • Review performed by the Financial Aid Administrator

35. FAA Professional Judgment • Dependency Status • Reduction in Income • Unusual Expenses (Medical, etc.) • Other Unusual Circumstances

36. Financial Aid Package • The Financial Aid Letter, or “Package,” is the written notification from the school of its offer of financial aid. • The Award Letter should include: • COA Information • Description of aid and conditions for maintaining/renewing aid • Process of how to accept or decline the aid

37. Compare Packages The individual school’s COA —The aid available from that school The amount left over is the student/family responsibility

38. Net Price Calculator • Higher Education and Opportunity Act (HEOA) requires all schools to disclose a net price to consumers. • Net price calculators will enable first year, full time students to determine an estimated Cost of Attendance (COA) • COA includes direct and indirect costs • Many calculators may also provide an estimate of financial assistance that may be available

39. QUESTIONS???

40. Good Luck!