Countdown to College Student Financial Aid

First Step

Scholarship Web Site www.ufo.psu.edu

Great Tips

Good Site - College Board Private Scholarships Be prepared. Start early. Don't pay. Be persistent. Good Site - College Board http://www.psu.edu/studentaid/scholarships/priv_searches.shtml?reload

Begin To Gather Income Data Copy of Parent & Student 2010 Federal Tax Return Investment Information All Untaxed Income Documents Find Social Security Cards

Scholarship Information Session Wednesday November 7th from 6:00 p.m. to 7:30 p.m. at the Penn State Greater Allegheny campus. All are welcome. Learn how to write scholarship essays & conduct internet searches for private scholarships.

Begin To Gather Income Data Copy of Parent & Student 2011 Federal Tax Return Investment Information All Untaxed Income Documents Find Social Security Cards

Begin To Gather Income Data Remember that the FAFSA will eventually need to be updated with the latest tax return - 2012 For academic year 2013-14 the base tax year is 2012

Free Application For Federal Student Aid Main Document FAFSA Free Application For Federal Student Aid www.FAFSA.gov

What Does The FAFSA Do Application For All Federal & State Aid Determines Expected Family Contribution (EFC) Uses Federal Formula

What Does The FAFSA Do Stays The Same Regardless Of College Two Components Parent Contribution Student Contribution Establishes “Financial Need”

What Makes COA? Tuition $12,242 (Billable) Fees $860 (Billable) Room & Board $9,100 (Billable) Books $1,920 (Non-Billable) Transportation $828 (Non-Billable) Miscellaneous $3,222 (Non-Billable) _____________________________________ Total $28,172 / year

What Is Financial Need? Cost of Attendance (Varies College to College) – Expected Family Contribution (EFC) _______________________________________________________________________ = Financial Need

What Is Financial Need? COA ($28,172) – EFC ($3,000) = Need ($25,172) _______________________________________________________________________ = Need ($25,172)

What Is Financial Need? COA ($9,000) – EFC ($3,000) = Need ($6,000) _______________________________________________________________________ = Need ($6,000)

Categories Of Financial Aid Need Based Aid Federal Pell Grant PHEAA State Grant Supplemental Educational Opportunity Grant (SEOG) College Work Study Perkins Loan Stafford Subsidized Loan (Student Fr max = $3500)

Categories Of Financial Aid Non-Need Based Aid Stafford Un-Subsidized Loan (Student Fr. Max = $2000) PLUS Loan (Parent)

Stafford Loans Stafford Subsidized Loan Borrower Is The Student Max Loan Is $3500/year Principal & Interest Deferred – Until Graduation Interest Rate is 3.4%

Stafford Loans Stafford Un-Subsidized Loan Borrower Is The Student Max Loan Is $2000/year Principal Deferred – Until Graduation Interest Paid While In School Can Be Deferred (Interest Added To Principal) Interest Rate is 6.8%

Stafford Loans Total Sub & Un-sub Never Be Greater Than $5500/year. Stafford Sub Not Awarded Can Become Un-Sub Loan Examples Of Awards Per Year $3500 Sub / $2000 Un-sub $0 Sub / $5500 Un-sub $1000 Sub / $4500 Un-Sub

Financial Aid Packaging Fall Spring Total Pell Grant $1300 $1300 $2600 PHEAA Grant $1989 $1989 $3978 SEOG $600 $600 $1200 Outside Scholarship $1000 $1000 $2000 Stafford Subsidized $1750 $1750 $3500 Stafford Un-Subsidized $1000 $1000 $2000 _________________________________________________ Total Aid = $7639 $7639 $15,278

Your Bill (Charges) Tuition $6,121 (Billable) Fees $430 (Billable) Room & Board $4,550 (Billable) _____________________________________ Total $11,101 / semester

What You Owe Total Billable Cost = $11,101/year Total Aid = $7,639/year _______________________________ What You Owe = $3,462 / semester

Next - PLUS Loan Parent Is Borrower Fixed Rate Of 7.9% Parent May Borrow Up To Cost Of Education Loan Forgiven In Case Of Death Or Disability Of Parent Or Student Awards If Approved Or Rejected Delayed Repayment Options Offered

PLUS Loan Credit Criteria Bankruptcy (Chapters 7,11 or 12 Within Past 5 Years) Policy Does Not Consider Chapter 13 Adverse Voluntary Surrender Within last 5 Years Repossession Within Last 5 Years Foreclosure Proceedings Started or Within Last 5 Years Deed In Lieu of Foreclosure

PLUS Loan Credit Criteria Accounts Currently 90 Days or More Delinquent (Accounts Reported as 90 Days Delinquent Which Are Over 5 Years Old Since Last Reported Are Not Considered Adverse) Wage Garnishment Within Last 5 Years Defaulted Loan That Has been Claimed Paid Lease or Contract on Secured Real Estate County/State/Federal Tax Lien Within Past 5 Years

If PLUS Is Rejected School Automatically Awards $4000 Stafford Unsubsidized Loan ($2000/semester) If You Need More Than $4000 File PLUS With An Endorser (www.studentloans.gov) Remember if your PLUS is approved with the endorser, the added $4000 Stafford unsubsidized will be removed.

Personal Identification Number (PIN) Must Be Used By Student & Parents Throughout Aid Process (Entire College Career) Used To Sign FAFSA, MPN & Access Federal Sites Can Request PIN Now Name & SSN Must Match Social Security Card EXACTLY Web: www.pin.ed.gov

Personal Identification Number (PIN) Must Be Used By Student & Parents Throughout Aid Process (Entire College Career) Used To Sign FAFSA, MPN & Access Federal Sites Can Request PIN Now Web: www.pin.ed.gov

FAFSA Overview Available January 1, 2013 Web: www.FAFSA.gov Colleges May Set Filing Deadlines Application For Pennsylvania State Grant (PHEAA) Can Make Changes/Corrections Any Time Don’t Be Late Add Parent Email Address To FAFSA

Common FAFSA Errors SSN & Name Do Not Match Social Security Card Missing Student Or Parent Signature (PIN) Incorrect School Code Drug Question Left Blank Checking Legal Guardian Missing Parent Data “Do You Have A Degree?” ….No

PLUS Loan Credit Criteria Accounts Currently 90 Days or More Delinquent (Accounts Reported as 90 Days Delinquent Which Are Over 5 Years Old Since Last Reported Are Not Considered Adverse) Wage Garnishment Within Last 5 Years Defaulted Loan That Has been Claimed Paid Lease or Contract on Secured Real Estate County/State/Federal Tax Lien Within Past 5 Years

PLUS Loan Credit Criteria Accounts Currently 90 Days or More Delinquent (Accounts Reported as 90 Days Delinquent Which Are Over 5 Years Old Since Last Reported Are Not Considered Adverse) Wage Garnishment Within Last 5 Years Defaulted Loan That Has been Claimed Paid Lease or Contract on Secured Real Estate County/State/Federal Tax Lien Within Past 5 Years

Once FAFSA Is Processed School Will Contact Student Showing Aid Package Or Instruction For Accessing Information Remember You Can Not Compare Packages Complete All School Requests ASAP

Additional Details Total COA = $14,086 $14,086 $28,172 Total EFC = $1500 $1500 $3000 Need = $12,586 $12586 $15,278 Total Aid = $7639 $7639 $15,278 Un-Meet Need = $4947 $4947 $9894 EFC + Aid + Un-Meet Need = COA $1500 + 7639 + 4947 = $14,086

Financial Aid Overview Using Billable Cost Fall Spring Total Billable Cost = $11,101 $11,101 $22,202 Total Aid = $7639 $7639 $15,278 Un-Meet Billable = $3462 $3462 $6924

Bob Heyl Student Aid Officer Penn State Greater Allegheny rwh23@psu.edu