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Need help with funding your education?

Need help with funding your education?. We’re here to help. Financial Aid. Ben Rosenberger Director of Financial Aid/Registrar. We. We’re here to help!. Paying for College Can Be Stressful…. The Primary Responsibility Belongs to the Family. Student and Parents.

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Need help with funding your education?

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  1. Need help with funding your education? We’re here to help.

  2. Financial Aid Ben Rosenberger Director of Financial Aid/Registrar

  3. We We’re here to help!

  4. Paying for CollegeCan BeStressful…

  5. The Primary Responsibility Belongs to the Family Student and Parents

  6. Reduce the Need for Financial Aid and Loans • Graduate on Time • 4 year for Bachelors Degree / 2 year Associates Degree • Research and find the right school and major • Minimize transfer and change of major • Earn college credits while in high school through AP courses, Vo-Tech, and dual enrollment • Consider options for cutting costs (commute, take summer classes, buy used books, make smart meal plan choices) • 2 + 2 Strategy (2 years at a Community College then transfer credits to a 4 year school) • 3 + 2 (Master’s Degree)

  7. Processesof Financial Aid *Identification *Application *Determination *Notification

  8. Identification Types Free Aid Low Cost Loans Education Tax Cuts Alternative Personal

  9. Sources of Financial Aid Federal State Private Institutional

  10. Federal Grants & Work Programs Federal Pell Grant $605 - $5,645 - 18 semesters (2013) Federal SEOG Grant $100 - $4,000 (college choice) Teach $4,000 annual ($16,000 total) Federal College Work-Study Minimum Wage or Higher!

  11. Stafford Borrowing Limits

  12. Interest Rates – Student Loans Undergraduate – Subsidized and Unsubsidized: • 3.86% for 2013-14 • Capped at 8.25% Graduate – Unsubsidized: • 5.41 for 2013-14 • Capped 9.50%

  13. Federal Direct PLUS Loan Repayment begins immediately - can defer repayment until 6 months after student graduates or drops below half-time enrollment. • If defer payment – encouraged to make interest payments • All loans must be repaid within 10 years

  14. Parent Loan for Undergraduate Students (PLUS) PLUS Loans – Parent & Graduate • 6.41% for 2013-14 • Capped at 10.50% • Up-front fee of 4.204% deducted at disbursement • May borrow up to full cost of education minus financial aid • Credit check is required on this loan

  15. Federal Student Loans • Effective July 1, 2013, Federal Direct Loans now carry variable/fixed rates • “variable/fixed” means that the interest rate for new loans will be set annually, but the rate at the time of disbursement will remain fixed for the life of the loan • Rates on new loans reset on July 1st of each year

  16. Federal Loans Independent 3.86% (Repayment) 3.86% Stafford Subsidized Unsubsidized $3,500 $6,000 $4,500 $6,000 $5,500 $7,000 $5,500 $7,000 $23,000 Total Limit $57,500

  17. Alternative/Private Education Loans • Nonfederal loans, made by a lender such as a bank, credit union, state agency, or a school. • Student borrows in his or her own name • Based on credit scoring and debt-to-income ratio • Repayment may be deferred until education completed • Fees, interest rates, loan amounts, and repayment provisions vary by lender and are generally higher than federal student loans • Co-signers usually required. Some loan products have a co-signer release option • Compare loans before making choice and read the fine print!

  18. TEACH Grant • $4,000 per year in exchange for teaching students from low-income families • Must agree to work as a full-time teacher in a high need field for at least 4 academic years within 8 calendar years from the date you complete the program of study for which you received the TEACH Grant • Failure to complete the service results in the Grant becoming a Direct Unsubsidized Loan that must be repaid.

  19. Veteran’s Benefits Post 9/11 Active Duty Reserves EAP (National Guard) DEAP Disabled Veterans VA Work-Study ROTC

  20. American Opportunity Credit (AOC) 100% credit per student – 1st $2,000 25% credit – 2nd $2,000 Only first 2 years of education except for 2009 - 12 Expenses for self, spouse and dependents Must attend half-time or more Subject to phase-out for taxpayers with modified AGI above $80,000 ($160,000 MFJ) * Use IRS Form 8863

  21. Lifetime Learning Credit ∙ Up to $2,000 credit per tax return ∙ Unlike AOC, per household-not student ∙ Unlimited number of years ∙ Cannot take with AOC for same student ∙ Same phase-out as AOC

  22. Pennsylvania Grants PHEAA State Grant • May 1st Deadline! • Available for both full-time and part-time students • Must be PA resident • Must make satisfactory academic progress (as defined by PHEAA) $500 Minimum $4,210 Maximum

  23. Postsecondary Education Gratuity Program Assists birth or adoptive children of PA police officers, firefighters, rescue and ambulance squad members corrections employees and National Guard Members. Program covers all institutional charges.

  24. PHEAA State Work-Study • Work up to 25 hours per week during academic year • Work up to 40 hours per week during summer • Must be at least a half-time student and work in major field

  25. PA Chafee Education & Training Grant Program ● Designed for youth identified through the PA DPW Foster Care Independence Program ● Complete Chafee application at pheaa.org ● Complete FAFSA ● PA Resident ● Have unmet need determined by post-secondary school ● Enrolled at least half-time ● Maximum awards are determined every year; $3,000 during 2012-2013

  26. Rebate Program Upromise (www.upromise.com)

  27. Institutional Resources Athletic Scholarships Academic Scholarships Foundation Awards Tuition Discounts Institutional Work-Study

  28. Private Resources High School Counselor Library Employer Local Community Groups Internet http://www.fastweb.com

  29. Federal Trade Commission Six Signs That a Scholarship May Be a Scam! “Guaranteed scholarship” Scholarship service will do all the work Cost for service (e.g. charge a fee) The scholarship is “Just for You” You have been “selected” for or are a “finalist” in a competition you never entered The scholarship services asks you for a credit card or up-front fees

  30. The Free Application for Federal Student Aid (FAFSA) Used to determine student eligibility for: • Federal programs • State programs • School programs

  31. Applications Free Application for Federal Student Aid (FAFSA) & State Aid – www.fafsa.gov CSS/Financial Aid Application –www.collegeboard.com Stafford Loan/Master Promissory Note (MPN) –www.studentloans.gov College Website - (ie. www.racc.edu)

  32. www.FAFSA.gov

  33. Deadlines Federal Grants State Grants Private Scholarships Institutional Funds Bottom Line: Use the earliest deadline of all the schools you are considering! Don’t be

  34. FAFSA • The FAFSA may be filed beginning on January 1 of the senior year of high school. • Complete the FAFSA as soon as possible after January • For the 2014-15 academic year, the FAFSA may be filed beginning January 1, 2014 • The FAFSA must be completed every year!

  35. Whose Information Goes on the FAFSA? ● Divorced or separated parents - yes ● Stepparents - yes ● Adoptive parents - yes ● Foster parents - no ● Legal guardians - no ● Anyone else the student is living with - no

  36. Student Dependency Status FAFSA asks questions to determine status: • If all “No” responses, student is dependent • If “Yes” to any question, student is independent • PA State Grant status can be different

  37. IRS Data Retrieval Tool Some will be unable to use IRS DRT Examples include: • Filed an amended tax return • No SSN was entered • Student or parent married but filed separately

  38. 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

  39. Eligibility The student’s need for financial aid is different at each college! Costs Other Aid EFC _____________________ = Need

  40. College Costs (2013) 4 yr public $8,102 - $17,668 Tuition and Fees 4 yr private $12,960 - $45,378 Tuition and Fees Community $3,210 - $4,420 Tuition and Fees College Nursing $4,389 - $20,249 Tuition and Fees Business/Trade $3,500 - $21,338 Tuition and Fees Two yr $7,030 - $30,850 Tuition and Fees private

  41. Room & Board (2013) On-Campus $9,590 - $10,939 Off-Campus $8,801 – 10,108

  42. Expected ParentalContribution Parental Income Parental Assets (excludes primary residence) 12% Age of Older Parent Family Size/Number in College (excludes parents in college)

  43. Qualified Education Benefits Coverdell Education Savings accounts Prepaid tuition plans offered by a State Qualified tuition programs (529 prepaid tuition plans and 529 savings plans)

  44. Education Savings and Asset Protection Allowance

  45. Parent’s Income Calculation Parent’s combined earned income including some untaxed income and benefits. Allowances deducted from income for: Federal, state & social security taxes Then: Income Protection Allowance: FM Number of College Students 1 2 3 4 5 2 17,440 14,460 3 21,720 18,750 15,770 4 26,830 23,840 20,870 17,890 5 31,650 28,670 25,700 22,710 19,750

  46. Small Business Asset Allowance Excludes from assets the net value of a family-owned business with no more than 100 full-time employees *FAFSA Questions #42 and #90

  47. Expected Student Contribution Income Protection Allowance for the 1st $5,250. 50% after that… Contribute 20% of Savings/Investments

  48. Award Comparison Private State Community $20,000 $13,000 $6,000 EFC - 4,000 - 4,000 - 4,000 PELL $400 $400 $400 State $3,770 $3507 $2192 Stafford $3,500 (s) $3,500(s) 0 $2,000 (u) $2,000(u) $3,408(u) PLUS $10,330 $ 3,593 $0

  49. Notification ● Student Aid Report (EFC) ● State Grant Notice ● College Award Letter ● Student Loan Application ● Verification Notice

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