Financial Aid

1. Financial Aid Accepted Student Day April 10, 2010

2. Agenda • Frequently Asked Questions • General Financial Aid • Federal Student Employment • Federal Pell Grant/SEOG • State Grants • Stafford Loans • PLUS (Parent Loan for Undergraduate Students) • Perkins Loan • Alternative Loans

3. How do I apply for financial aid? • Complete 2010-11 FAFSA • Apply on-line at www.fafsa.ed.gov • Student and parent both need a PIN to sign FAFSA electronically (www.pin.ed.gov) • If estimates are used parents must correct once taxes are filed • Corrections may change the aid award

4. What is a pin number? • Used to sign FAFSA electronically • PIN Site: www.pin.ed.gov • Results much faster • Real-Time PIN • Parents must also apply for a PIN • Secured link is only valid for 14 days

5. What is a Student Aid Report? • Summary of information reported on the FAFSA • Should be reviewed for any errors or necessary corrections • Will be sent via e-mail if a valid e-mail address is provided on the FAFSA

6. What is an EFC? • Expected Family Contribution • Methodology developed by Congress • Formula = Parent contribution from income and assets + Student contribution from available income and assets.

7. Why does the financial aid office need tax information? • 33% of all students who complete a FAFSA are selected for Verification by the Federal Processor • Required to verify the tax information with the FAFSA information • If there are discrepancies the student will then be selected

8. What is meant by Cost of Attendance? • Tuition and fees • Room and board • Books and supplies, equipment, transportation, and miscellaneous personal expenses • Loan fees • Health Insurance • HP Tablets

9. Federal Student Employment • Employment may be on or off campus • Eligible employers • School • Federal, state, or local public agency • Private nonprofit organization • For-profit organization

10. Federal Student employment • Have to work to receive the money • Students have the option to sign their employment checks over to Chatham • They should not subtract their award from their balance, if they are not going to sign their checks over • On campus positions are also available for students who are not eligible for federal work study

11. Federal Pell Grant • Students with EFC’s ranging from 0 to 5273 are eligible (2010-11) • Awards range from $976 to $5550 • Awarded to eligible undergraduates pursuing first bachelor’s or professional degree and • Actual award amount based on Cost of Attendance, Expected Family Contribution (EFC), and enrollment status

12. ACG – Academic Competitiveness Grants • Awarded to students who have completed a rigorous high school curriculum • Must be Pell eligible • FY student – eligible for $750 per year • Need a 3.0 cumulative GPA for the grant to be renewed for their second year • Need final high school transcript to determine requirements have been met

13. Supplemental Educational Opportunity Grant (SEOG) • Eligible students • Undergraduates pursuing first bachelor’s or professional degree • Awarded first to students with exceptional financial need (i.e., students with the lowest EFCs at that school) • Priority to Federal Pell Grant recipients • Chatham’s maximum is $1500 per year (based on approved funding)

14. State Grants • Pennsylvania State Grant (PHEAA) – current maximum award is $4120 • Deadline is May 1, 2010 • Eligibility criteria established by PHEAA • In most cases – FAFSA is the only form that students’ from other states need to complete, unless there is an exception by that state. • If student is from out of state and is told that we do not participate in their state grant program – we can complete the necessary paperwork to comply

15. Federal DIRECT Loan Program • Subsidized Stafford: Must demonstrate “need” • Unsubsidized Stafford: Need is not a consideration • Base annual loan limits (combined subsidized and unsubsidized) • $3,500 for 1st year undergraduates • $4,500 for 2nd year undergraduates • $5,500 for each remaining undergraduate year • $8,500 for each year of graduate/professional study

16. DIRECT Loan Program • Additional unsubsidized loan eligibility for independent undergraduates, graduate students, and dependent students whose parents are unable to borrow under the PLUS Program: • $4,000 per year for first and second years of undergraduate study • $5,000 per year for remaining years of undergraduate study • All undergraduate students who complete the FAFSA are now eligible for $2000 in an Unsubsidized Stafford loan

17. Cumulative DIRECT Loan Limits. • Undergraduate • Dependent—$23,000 between subsidized and unsubsidized Stafford loans • Independent—$57,500 (up to $23,000 may be in subsidized Stafford loans)

18. Costs of borrowing DIRECT Loans • Fixed interest rate – 6.8% - Unsubsidized Loan • Fixed interest rate – 4.5% - Subsidized Loan • Loan fees based on principal amount of each loan: • After rebate are .5%

19. Repayment of DIRECT Loans • Six-month grace period • Maximum repayment period between 10 and 20 years depending on repayment plan chosen • Deferment and cancellation provisions available

20. How do I apply for a DIRECT loan? • Student completes a Master Promissory Note (MPN) once when they first borrow • Complete on-line at www.studentloans.gov

21. Federal PLUS Loan for Undergraduate Students • Borrowers are parents of dependent undergraduate students • Must be credit-approved • Annual loan limit: cost of attendance minus other aid • Fixed interest rate: 7.9% • Loan fees based on principal amount of each loan: • 2.5% in fees – after rebate

22. When does the PLUS go into repayment? • Repayment begins 60 days after loan is fully disbursed • Deferment provisions available – parents must complete paperwork on an annual basis

23. Perkins Loan Program • Eligible students • Undergraduate students • Priority to students who show exceptional need • Loan amount varies • Maximum annual loan • $5,500 undergraduate students – our maximum is $2200

24. Perkins Loan Program • Interest rate: 5% • Nine-month grace period • Repayment period may be up to10 years • Deferment and cancellation provisions available • Perkins MPN – administered through Student Accounts

25. What is an Alternative/Private Loan? • Loan used to cover educational expenses • Student can borrow up to the cost of attendance – minus other aid • Dependent students must have a co-signer because they do not have an established credit history • Loan is deferred until six months after graduation • Loan accrues interest while they are in school – interest rate changes quarterly • Student may make interest only payment while they are in school

26. Chatham Payment Plan • 4 monthly payments each term • No enrollment fees • Late fees will be applied monthly if payment missed

27. Electronic Awards • Student will receive award letter with secured e-mail link • Award will be sent to e-mail address listed on Admissions application • Can make changes on the website and they will be sent to our office automatically • Students will be able to complete the entire financial aid process on-line

28. Plus/Alternative Loan • Listed on all dependent student award letters • Amount listed is up to cost (this is what the student/parent can borrow) • Student and parent must choose to borrow PLUS or alternative loan • PLUS is more of a cost-savings if parent does not mind that the loan is in their name • This is not an actual loan until it has been approved

29. Importance of good credit • Review credit report at least once per year • www.annualcreditreport.com • Free of charge – once every 12 months • FICO score available for a nominal fee • 80% of credit scores contain an error

30. Importance of good credit • Payment History • Pay on time • Amounts Owed • Installment better than revolving • Length of Credit History • Keep oldest account open • New Credit • Ok to check credit • Types of Credit • Apply only for what you need

31. Chatham scholarships • Students are required to maintain a 2.0 cumulative grade point average in order for scholarships to be renewed • Scholarships are available for right terms of full-time study • Students are reviewed once they have been here for two terms of full time study • After two terms if they do not have a 2.0 cumulative GPA, then they will have one probationary term in which they will still receive the award

32. Satisfactory academic progress • Full-time students are required to complete at least 12 new credits each term and maintain a 2.0 cumulative grade point average • If a student does not make progress they will be on financial aid probation • Students may be on financial aid probation for up to two terms and still receive financial • After two terms of probation if a student does not make up the deficiencies they will be on financial aid suspension

33. Financial aid contact information • Hours: Monday through Friday: 8 to 5 • E-mail: financialaid@chatham.edu • Phone: 412-365-2781 • Fax: 412-365-1643 • Address: • Woodland Road; Braun Hall; Pittsburgh, PA 15232

34. Link for financial aid presentation • http://www.chatham.edu/admissions/aid/undergraduate/types.cfm