Paying for Postsecondary Education

Your Presenter Insert Your: Name Region Phone (no dashes) Email Also move the star to your region Marykay Klara Senior Associate Director of Financial Assistance Villanova University April 4, 2017

What Is Financial Aid? Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses. Grants/Scholarships (free money) Self-Help (work, savings, etc.) Loans

Starting the Financial Aid Process Page 10 PA Student Aid Guide Starting the Financial Aid Process Know what financial aid forms each school requires ALL Schools Require: FAFSA (Free Application for Federal Student Aid) after October 1 in Senior Year Required by all schools, PHEAA, and some scholarship organizations STATE GRANT FORM (SGF) through PHEAA Required for first-year students (and may be requested for subsequent years) = after FAFSA is completed SOME Schools Require: CSS Profile required by some postsecondary schools and scholarship organizations Institutional financial aid forms Internal school forms The CSS PROFILE is a form from College Scholarship Services. It must be submitted in addition to the FAFSA, but ONLY if a school (typically private colleges) or a scholarship organization requires it. The CSS PROFILE gathers supplemental financial and family information and is available online at www.CollegeBoard.com under students, then Pay for College. There is a $9 registration fee, plus a fee of $16 for EACH SCHOOL or scholarship organization listed on the form. A limited number of fee waivers are granted automatically to first-year, first-time citizen — or eligible non-citizen applicants — from low-income families, based on the financial information provided on the PROFILE. Contact the schools you are applying to, to see if this form is required! Some schools have their own institutional financial aid application that must be submitted in addition to the FAFSA. Information is usually available online, at a school’s web site, explaining what financial aid applications are needed to be completed by the applicant. It is the responsibility of the student to complete all required applications and return them to the school in a timely manner. Please note that often schools require separate applications for non-need based financial aid. For example, many schools have a separate application process and deadline for academic scholarships.

Know When to Apply for FAFSA & Your Deadlines! Page 5 PA Student Aid Guide Know When to Apply for FAFSA & Your Deadlines! Federal Deadlines - Apply anytime after October 1st of your senior year to the end of the academic year (July 1st through June 30th) FAFSA available 10/1/17 for the 2018-2019 academic year School Deadlines – some WILL be earlier PA State Grant Deadlines for FAFSA May 1, 2018 – First-time and renewal students attending colleges, universities & college transferrable programs (excluding community colleges) August 1, 2018 – First-time students attending community college; a business, trade or technical schools, hospital school of nursing; Open Admissions Institutions or a 2-year non-transferrable degree program at a Jr or 4-year college. Must have a FAFSA on file to be considered for a PA Grant but you also must complete the Grant form… so consider May1 your deadline

IRS Data Retrieval Tool (DRT) The IRS Data Retrieval Tool allows students and parents to access IRS tax return information needed to complete the FAFSA. Students and parents may transfer the data directly into their FAFSA. IRS Data is available: After 2 weeks of electronically filing federal tax return After 8 weeks of filing a paper federal tax return If student used estimated income to complete FAFSA, can go back once taxes are filed and use IRS Data Retrieval Tool.

Federal Programs Pell Grant (2017-2018 max award $5,920)* Campus-based aid – amounts determined by FAO FSEOG………………… up to $4,000* Federal Work-Study…… FAO determines For most programs, student must be enrolled at least half-time. * Goes to most financially needy students

Federal Direct Loan Program Based on FAFSA, students have a combination of: Subsidized = govt pays interest in school and grace status Unsubsidized = interest accrues in school and grace Available to ALL students REGARDLESS of need Additional unsubsidized funds available for Independent & Parent PLUS denials 3.76% variable/fixed interest rate (AY 16/17), 1.068% fee Rates set every July 1st for the life of that year’s loan; fees are deducted from disbursement AWARDED to every eligible undergraduate student In student’s name, no collateral or credit check, must sign MPN Available loan amounts increase in subsequent years There are four loan programs available through the Federal Direct Loan Program. In the case of Direct Stafford subsidized loans and unsubsidized loans, the loans are made only in the name of the student. There is no credit check no cosigner requirements. Students make no principal payments while in school. In general, Repayment begins six months after the student leaves school. The interest rate is fixed on these loans. Subsidized means that the borrower has demonstrated financial need and that the federal government will not charge the student interest on the loan while they are in school. Unsubsidized means that the borrower is responsible for the interest at all times. It can be paid quarterly or capitalized and added to the total loan amount. Direct PLUS is a loan that parents borrow on behalf of the student. A credit check is required. This is a fixed rate loan. Graduate PLUS loan is a loan for students enrolled in graduate school. Student loan interest rates will rise to 6.8% in 2012 if the current rate provision expires. There is also origination fees association with these loans - Those fees will be deducted from the loan disbursements, but you are responsible for the entire loan balance. So, when figuring out your bill – you will be responsible for the balance caused by the fee deductions. StudentLoans.gov & school’s website!

Federal Direct PLUS Loan For parents of dependent undergrad or graduate level students MUST apply each year loan is taken No Debt-to-Income test, only lenient credit check Direct Parent PLUS Loan - in parent’s name for student costs Can have an endorser (co-signer) 6.31 % variable/fixed interest rate; 4.272% fees (AY 16/17) Principal payment can be deferred while student is in school Rates set every July 1st for the life of that year’s loan; fees are deducted from disbursement Interest will continue to accrue IF denied - student is eligible for an additional $4,000 unsubsidized loan Can borrow up to the Cost of Attendance Must complete a FAFSA IN PARENTS NAME – FOR THE STUDENT The overall dollar amount that can be borrowed from a PLUS loan is based simply on the cost of education as determined by the financial aid office. Thus, if your school determines that your cost of education is $23,000 and you have $10,000 in financial aid in the form of grants, scholarships and loans, then the school will indicate that the maximum amount of PLUS you can apply for is the remaining $13,000. You can borrow less than the maximum. Applicants must apply for a new loan each year. These loans are available to the biological or adoptive parents of dependent students. In some cases, a stepparent may be eligible to borrow. Either parent (or both parents) may borrow on behalf of the student. There is no provision for any other person, such as a relative, to receive a PLUS loan. Credit check & endorser alternative To be eligible for a PLUS Loan, you must not have an adverse credit history, which the Department will check for when you apply for the loan. If you are found to have an adverse credit history, you may still borrow a PLUS Loan if you get an endorser who does not have such a history. An endorser is someone who agrees to repay the loan if you do not. The endorser may not be the student on whose behalf a parent obtains a PLUS Loan. Fees - In addition to interest, you pay a loan origination fee (4%) that is a percentage of the principal amount of each Direct PLUS Loan that you receive. This fee helps reduce the cost of making these low-interest loans. The fee of 4% is assessed and will be deducted from each disbursement, so the loan amount you actually receive will be less than the amount you have to repay. Repayment begins once the loan is fully disbursed. However, the parent borrower may request forbearance and make payments on the interest only during the time the student is enrolled. Beginning in 2011-2012, parents will be required to file the FAFSA in order to borrow through the PLUS Loan program.

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 TRANSFERS FOTW data to the State Grant Application

Pennsylvania State Grant* In-state (PA) - Full-time up to $4,378 In-state (PA) – Part-time 1/2 of the FT award Out-of-state - Up to $600 in DC, DE, MA, OH, VT, WV Amount determined in part by the cost of the school * Must be at least half-time to be eligible

Scholarship Search Tips Start searching early Use FREE scholarship search sites Don’t ignore scholarships with smaller award amounts Don’t miss deadlines Search for scholarships every year Check corporate websites such as fastweb.com, Target, Walmart, Kentucky Fried Chicken: All have scholarship programs and you don't have to work there to get them

What School Costs are Considered? School costs include: Tuition and fees Room and board Books and supplies Transportation Miscellaneous living expenses Child care, if necessary You can receive financial aid up to the total of the school regardless of your EFC!

Calculating Financial Need School cost $26,000 EFC – $3,000 Financial Need $23,000 Schools/colleges receive financial aid information and calculate financial need Financial Aid Office (FAO) “packages” student based on financial need and available funding (varies from school to school) Financial aid award letter sent to student

Special Circumstances Recent death or disability Reduced income Recent separation or divorce Contact the school and ask for a special consideration AND contact State Grant Division at PHEAA

Questions?