Reviewing Award Letters Show me the money !

Higher Education Access Partner / PHEAA Your presenter: Diona Brown dbrown1@pheaa.org 717-678-9681 Higher Education Access Partner / PHEAA

The process …. Apply to post secondary schools Complete the FAFSA, State Grant and School Financial Aid forms You receive an Acceptance Letter Financial Aid Award Packages are sent to Accepted Students You compare and make Smart Decisions

What is a Financial Aid Award Package What is a Financial Aid Award Package? The process of combining different types of Aid from various sources after the student’s eligibility is established by the Financial Aid Office, called Packaging. An official notification from schools about financial aid, terms, and conditions Lists the type and amount of each award to be received in that Academic Year from that school Based on FAFSA and other Financial Aid form calculations, called Need Analysis Describes what must be done to accept or reject any award Discloses students rights, responsibilities, and academic requirements May arrive via postal mail or email After the school

What’s on the Award Letter … The Cost of Attendance based on your Need Analysis Direct College Costs Internal School Scholarships Eligible Federal Grants Federal Student Loans Work Study Awards Balances of costs to attend Let’s talk about these….

Direct College Costs The school determines standard student aid budgets and the appropriate budget is selected for a particular student based on the FAFSA calculations and other financial information to determine Cost of Attendance (COA) for that Academic Year (AY) Tuition for that AY year Required Fees Room Meals (Board) Books and Supplies NOT Indirect Costs

Grants and Scholarships (free money) Gift Aid for the Academic Year Based on FAFSA EFC and Costs of School Federal Grants - Based on Need Pell Grants, FSEOG Internal School Scholarships Based on Need and/or Merit PA State Grant - Based on Need & COA Not always listed - see pheaa.org

Internal School Scholarships/Aid Based on Need and Merit - School Determines Amounts FAFSA ; CSS Profile (if requested); Internal School Aid Forms MERIT: Determined by the School Grades; Activities; Clubs Community Involvement; Choice of Major Combination of Need & Merit Varies …. Check Financial Aid and Admission Websites

Grant Amounts Need: FAFSA and Aid forms School: Cost of Attendance CURRENT Grant Programs, based on NEED and School: Federal Pell Grant ----- ----up to $6195. (19/20AY) Federal SEOG Grant ----- up to $4000. PA State Grants - up to $4,123 In State, out of state - up to $512 in DE, MA, OH, RI, VT, WV and DC All other states - $ -0- Other Federal & State Grants based on specific situations ref: www.pheaa.org and www.studentaid.ed.gov

Federal Programs Student Loans and Work Study Self Help Aid for the AY Federal Direct Loans MUST BE REPAID; NOT based on need Subsidized / Unsubsidized per FAFSA Federal Work Study - based on need REIMBURSED Money earned with a job on campus

Federal Loan & Work Study Work Study - work a job on campus* School determines participation and amounts earned NOT money upfront - MUST work a job on campus first and receive a paycheck Federal Direct Loan Program: Federal Direct Loans - in student’s name $5,500 1st year, increases as student progresses in next AY’s Payments begin 6 months after leaving school or graduating No Credit or Debt requirements - all students are awarded Other Federal Loan Program* PLUS Loans - in Parent(s) name only Up to the Cost of Attendance (COA) Only based on credit rating - no debt to income If denied - student receives an additional $4,000 unsubsidized loan *Caution: May be included on Award Package - but NOT provided until criteria is met

Compare Balances Special Circumstances Compare Apples to Apples Type of School: private, public, state, community, proprietary Special Circumstances To discuss extenuating issues that affect FAFSA/Aid reporting Understand the REAL Cost of Attendance One Year’s costs, Struggling now could lead to losing $ later Use tools to make sense of decisions: My Smart Borrowing.org Have a PLAN B Acceptance letters often arrive before the Aid Package

Reviewing the Award Letter It’s the school’s Marketing Tool, read carefully No current regulations on letter format Some schools will use the suggested Financial Aid Shopping Sheet Will the Merit Gift Aid continue, or is it just for THIS AY Do Institutional Awards increase as tuition increases Will you need to ‘do something’ to keep the Aid GPA, Join a club, community involvement, athletics, keep your major Is Work Study factored into the Award Listed due to being a federal program - money received AFTER working a job Add amounts back into your balance Are PLUS loans factored into the Award Must apply and be approved first How are OUTSIDE SCHOLARSHIPS handled Some schools will reduce balances, others replace internal Gift Aid

Reviewing the Award Letter …continued You may choose to decline all or part of a loan, based on your resources This won’t affect loan availability in upcoming AYs Payment Plans may be available directly through the school Are the balances affordable for the family Are there Special Circumstances to discuss with FA Offices Will additional loans be needed Private Education Loans - from financial institutions Equity Loans or other sources Understand the repayment criteria Note DEADLINES to respond Funds may be withdrawn if you miss Deadlines IF you are not sure about something - ASK!

Financial Aid Shopping Sheet General info suggested, not required Elements of cost of attendance appropriate for the specific student  Grant aid (free money)  Net price after grants  Work Study options  Federal Direct Loans  General listing of other types of funding that can be used to meet net costs  (including family contribution)

Compare costs but don’t forget the bottom line Gift Aid - not repaid Self Help Aid - meet the requirements and Loans are repaid Cost - Total Aid = GAP (out of pocket balance) The GAP is not the Actual Cost

Actual Cont. = (Cost – Free $) Comparing Packages Cost $20,000 $30,000 $50,000 EFC $ 3,000 Need $17,000 $27,000 $47,000 Free Money $ 6,000 $ 8,000 $18,000 Loans $ 5,500 $ 7,000 Work-Study $ 0 $ 2,000 TOTAL AID $11,500 $29,000 Gap = (Cost – Aid) $ 8,500 $13,000 $21,000 Actual Cont. = (Cost – Free $) $14,000 $22,000 $32,000

Page 9 PA Student Aid Guide Net Price Calculators The Higher Education and Opportunity Act (HEOA) of October 2011 requires schools to offer a Net Price Calculator on their websites Enables current and prospective students, families and consumers to determine an estimate of an individual net price at a particular institution. ESTIMATED data must be provided by each institution: Total price of attendance Tuition, Fees, Room and Board Expenses (i.e., personal, transportation) Estimated total merit and need-based grant aid Estimated net price (attendance minus grant aid) May not include scholarships

How Much Should I Borrow? Estimate your full cost of school Borrow only what you need Research your earning potential Don’t borrow more to get your education than you believe you can earn your first year in the workforce Think long-term Keep a healthy mindset about debt

How to Cover Unmet Financial Need Savings – Family 529 Plans – Family Scholarships – Various Sources Grants – Federal and State Tuition Payment Plans – School Federal Student Loans – Department of Education Institutional Loans – School Private Education Loans – Bank Home Equity Loans – Bank

Scholarship search: Don’t miss out on FREE Money Start early – and KEEP LOOKING Note requirements and Deadlines Only provide what is asked for Recycle Essays - but answer the questions Outside scholarships - look everywhere Google Interests, products, companies Don’t PAY for information If you’re asked to pay, it’s not free money - (scam..) School Scholarships Check Fin Aid and Admission websites Community Scholarships Check at HS Guidance office - there’s many! Create a profile for more matching opportunities What’s not on the HS transcript Small Scholarships ADD UP Don’t disqualify yourself until IT disqualified YOU Don’t forget to continue studies! www.fastweb.com www.educationplanner.org www.fastaid.com www.finaid.org www.scholarshipexperts.com www.scholarships.com www.scholarship-page.com www.zinch.com www.dosomething.org www.collegeprowler.com www.studentscholarships.org www.collegeboard.com www.collegeanswer.com www.collegenet.com MORE….

Making Decisions When cost is part of the decision factor Buy the EDUCATION, not the SCHOOL Attend where you can Afford There are many paths to the same career Review what’s required for your major Match your abilities to the career Research your Career Outlook www.EducationPlanner.org Be a Smart Borrower www.SmartBorrower.org

Begin with the End in Mind RESEARCH the EXPECTED SALARY in your FUTURE CAREER, find an affordable school, and borrow realistically Research every option, including community colleges and commuting Only borrow what you absolutely need to attend Approach education from a Consumer Standpoint Is there a CAREER SERVICES Dept Much depends on You and Your Choices

MySmartBorrowing.com

What can I afford to borrow? An interactive tool for making smart decisions about career choices and paying for College What can I afford to borrow?

Reduce the Dependency on Financial Aid 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 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

Wrap-Up Narrow down career choices Work hard on scholarship search Compare estimated financial aid award letters Be a smart consumer Make the tough choices Think of the future Finish on time

Resources & Questions Pheaa.org EducationPlanner.org & MySmartBorrowing.org Youcandealwithit.com Myfedloan.org PHEAA toll free: 1-800-692-7392 Federal Student Aid Info Center – 1-800-433-3243 www.fafsa.gov www.studentaid.gov – general financial aid info www.studentloans.gov – information on federal loans www.finaid.org