A Map of Student Financial Aid Gail E. Gray Student Aid Penn State Beaver 9/21/2018

Basic Rules of the Road Financial aid is money supplied by some source outside the family to help pay the cost of a student’s post-secondary education. There are two basic categories: need-based and non-need-based. There are three types: grants/scholarships, loans, and employment. Sources of aid are: federal and state governments, institutions, and private. 9/21/2018

FAFSA: The Passport to Student Aid The Free Application for Federal Student Aid (FAFSA). The best and most efficient way to submit the FAFSA is on-line at www.fafsa.gov. First year undergraduates for Fall 2018 should complete as soon as October 1. It is recommended that the FAFSA should be filed no later than February 15. The PHEAA PA State Grant deadline is May 1. Both the student and the parent completing the FAFSA need to create a Federal Student Aid (FSA) ID prior to completing the FAFSA. You will use the FSA ID to sign the FAFSA and complete other federal aid paperwork. Filing the FAFSA electronically is the best way to apply. Benefits include: online help, built-in edits, built-in skip logic, the IRS Data Retrieval Tool and a link to the PHEAA PA State Grant form. Awarding typically begins in February or March. Schools may have their own application. Penn State has no school-specific application. Applications will also be needed for PLUS or alternative loans and scholarships. 9/21/2018

IRS Data Retrieval Tool The IRS Data Retrieval Tool (DRT) 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 from the IRS database. IRS Data is available: Because the “prior-prior year” (PPY) process means that the FAFSA can be filed earlier because it will use income from two years prior to the academic year the student will be attending. The vast majority of students and parents will have already filed taxes for that year. Some families will not have filed taxes, but can still use estimated income. If estimated income is used to complete the FAFSA, students/parents can go back once taxes are filed and use the IRS DRT. 9/21/2018

EFC: The Gateway to Financial Aid The Need Equation : Cost of Attendance - Expected Family Contribution Need Cost of Attendance – educational budget determined by school and, therefore, variable. Expected Family Contribution – amount family can be reasonably expected to contribute to education. This number is not variable. 9/21/2018

Highways and Byways Freeways: - Pell Grant: Max. $5920 for 2017-18. Lifetime limit of 12 semesters. - Federal Supplemental Educational Opportunity Grant (FSEOG): Range from $200 to $4000. Ex: Penn State’s maximum per year is $1200. - PHEAA State Grant: Max. $4318 in 2017-18 for in-state. The grant amount is determined by cost of attendance. Community college attendees can receive up to $2297, state university attendees up to $3675, state-related university attendees up to $3950, and private college attendees up to $4318. ($551 in states with reciprocal agreements: DE, MA, OH, VT, WV, DC; $500 in other states; $0 in NY, NJ, and MD). 9/21/2018

Highways, cont. Toll Roads: Federal Direct Loan (subsidized): need-based * Fixed interest rate, adjusted annually for new loans based on final auction of 10-yr. T-bills plus a certain percentage (2017-18 4.45%). Interest rates are capped at 8.25%. * Origination fee of 1.066% for 2017-18. * 6 month grace period (including interest) before repayment after graduation or the student stops attending. * Max. $3500 for freshmen. Federal Direct Loan (unsubsidized): non-need-based * Fixed interest rate (2017-18 4.45%), adjusted annually for new loans based on T-bills plus a certain percentage and capped at 8.25%. * Max. $3500 for students not qualified for subsidized plus $2000 for all students (unless PLUS denied, then $4000 additional as an extended loan). * Principal deferred until six months after graduation or student stops attending, interest paid during enrollment/grace or capitalized. 9/21/2018

Highways, cont. Federal PLUS Loan: non-need-based parent loan *Fixed interest (2017-18 7%), adjusted annually for new loans based on T-bills plus a certain percentage and capped at 10.5%. * 4.264 % origination fee. * Loans are available to biological or adoptive parents. * Credit check is required. The credit check does not include a debt-to-income ratio. If loan is denied, borrower has option to use an endorser or claim extenuating circumstance. * No annual or aggregate limit to amount borrowed. The limiting factor is cost of attendance minus financial aid received. * Repayment typically begins when the entire loan is fully disbursed. Parents do have the option to defer payment on the principal while the student is in school (and for a six-month grace period after graduation). 9/21/2018

Alternative Routes Federal Work Study - Awards earned by working on campus or community service. - Need-based. - Penn State max. $3500. - Not counted toward tuition/fee charges. - Hourly wages at least minimum wage. - Wages do not count as income on the FAFSA. 9/21/2018

Alternative Routes Scholarships - Funded by private donors and colleges/universities. - Merit- and need-based. - Eligibility varies with criteria. - Application may be required. - FAFSA usually required. - Amounts vary. - Awarded annually with possibility of renewal. 9/21/2018

Alternative Routes Private Alternative Loans - Private alternative loans are managed through private lenders, issued in the student’s name, and require a co-signer. Eligibility, rates, terms, and conditions vary. Approval and interest rates are based on the borrower’s and co-signer’s credit ratings. Alternative loans are agreements between the borrower, co-signer, and the lender. Post-9/11 GI Bill Benefits – Applies to honorably discharged veterans with at least 90 days of aggregate active duty service after September 10, 2001. Benefits include tuition and fees, a monthly housing allowance, a stipend for books and supplies and the option to transfer benefits to family members. 529 Plans - Most states have a College Savings Plan, such as the PA 529 College Savings Plan, that will send funds to the school after you provide them a copy of your tuition bill. Contact your plan administrator to find out how to request your funds. 9/21/2018

Alternative Routes American Opportunity Tax Credit – A credit for qualified education expenses paid for a student for the first 4 years of higher education. Currently a maximum annual credit of $2,500 per student is available. There are income limits in place with regard to eligibility for this tax credit. Lifetime Learning Credit –A credit for qualified tuition and related expenses paid for students enrolled in an eligible educational institution. There is no limit on the number of years you can claim the credit. It is worth up to $2,000 per tax return. There are no income limits in place with regard to eligibility for this credit. Additional information about these credits can be found at irs.gov/uac/Tax-Benefits-for-Education:-Information-Center and within the IRS Publication 970 at irs.gov. 9/21/2018

How Much Does This Trip Cost? Total expenses per academic year at Penn State Beaver = $31,648 (resident student) or $21,438 (commuter) : - Tuition and fees $13,694 - Estimated room and meal expenses $1,800 -$11,230 - Estimated books and supply expenses $1,840 - Estimated expenses for travel and personal expenses (vary for each student: approx. $4,104 -$4,884 on average) 9/21/2018 *costs based on University estimates for academic year 2017-18

The Last Few Miles Student Aid Report (SAR) – federal response to the FAFSA which reports EFC. Max. EFC for Pell eligibility is currently 5234. Student Financial Aid Award Notification – summary of award package. PSU notifies via e-mail on FAFSA or admissions application and student accesses through their LionPATH account. Student Financial Aid Planning Tools - Penn State provides planning tools on our Office of Student Aid website at www.studentaid.psu.edu. Other schools will have similar publications or webpages. PLUS and alternative loan applications, Stafford Loan Master Promissory Note and loan entrance counseling will all need to be completed to finalize payment of bill. 9/21/2018

Maintaining the Roadways Satisfactory Academic Progress - USDE and PHEAA have separate academic progress standards and reviews. - Both require a student to be enrolled in a degree-seeking program and USDE requires a student to maintain a 2.0 GPA. - USDE requires the successful completion at least 67% of all credits a student begins. PHEAA requires successful completion of all credits begun. - USDE requires that students must complete their degree or certificate within a maximum time frame measured by attempted credits equal to 150 percent of the number of credits required for their primary degree program (EX: degree requires 120 credits. Student can take up to 180 credits.). Maximum semesters allowed for the PHEAA State Grant is 8 semesters. Renew FAFSA for 2018-19 starting October 1, 2017 and using 2016 tax information. 9/21/2018