1. Financial Aid

2. Tonight’s Agenda: Introduction of our Guest Presenters
Scholarships: Free Money
CASD Foundation Angela Lynch
Applying for Federal & State Aid
Penn State Mont Alto, Antonia Spedden
Shippensburg University, Rachel Richards
Wilson College, Chris Knouse
What Happens Next?
SAR & EFC
Financial Need and Packaging
Comparing schools/financial award packages

3. SCHOLARSHIPS: CASD Foundation
The BEST money students can use to help pay for college is FREE money!
SCHOLARSHIPS: CASD Foundation

4. The Purpose of the FAFSA®
The FAFSA® (Free Application for Federal Student Aid) is a federal form used to determine student eligibility for the following:
Federal programs Pell Grants, campus-based aid and student loans
State programs Pennsylvania State Grant, State Work-Study and other special programs
School programs Need-based grants and scholarships

5. FAFSA.gov Create your FSA ID prior to completing your FAFSA
*Students and parents need a
FSA ID.
**File the FAFSA every year the student will be enrolled in postsecondary education.

6. Federal Student Aid ID (FSA ID)
Replaces the PIN
Allows students and parents to sign the FAFSA electronically
Student needs a FSA ID
One parent of a dependent student needs a FSA ID
Student and parent must have a unique address
Only the owner of the FSA ID should create the account

7. Where Can I Use My FSA ID? Electronically sign your FAFSA
Import tax information from the IRS
Access renewal FAFSA
Make online corrections to FAFSA
View or print a copy of the SAR
View history of federal student aid received
Complete entrance or exit counseling
Electronically sign a Master Promissory Note
Complete a PLUS Loan request
Estimate student loan repayments using the Repayment Estimator
Apply for Income-Driven Repayment plan and loan consolidation
Sign agreement to serve for TEACH Grant

8. Benefits to Applying Online
Filing the FAFSA electronically is the best way to apply.
There are many benefits for online filers:
Online help
Built-in edits
Built-in “skip logic”
IRS Data Retrieval Tool (DRT)
Link to the State Grant Form (SGF)

9. Getting Started on your FAFSA
Getting Started on your FAFSA

10. When to Apply
Students should apply beginning January 1 of their senior year.
Deadlines vary from school to school; many are earlier than the May 1 deadline for the PA State Grant.
Students must determine the earliest applicable deadline.
Students need not be accepted for admission.
Students may list up to 10 schools on the initial online FAFSA and add or delete schools later. Postsecondary schools will not see other schools listed, just their own.
Families can file estimated income information and update it later using the IRS Data Retrieval Tool (DRT).

11. Documents Needed
Applicants may need the following items to file the FAFSA:
Social Security Number
Driver’s license (student only; this information is optional)
Federal income tax returns (1040, 1040A or 1040EZ)
W-2 forms from all employers
Current bank statements (checking and savings)
Current business and farm records
Records of any stocks, bonds & other investments, including 529 accounts
Additional untaxed income tax records may be needed such as: Veterans non-education benefits, child support paid/received and workers’ compensation.
Alien registration or permanent resident card (if not a U.S. citizen)

12. IRS Data Retrieval Tool (DRT)
The IRS 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.
IRS data is available for families to use:
After 2 weeks of electronically filing federal tax return
After 8 weeks of filing a paper federal tax return
If estimated income is used to complete the FAFSA, students/parents can go back once taxes are filed and use the IRS DRT.

13. IRS Data Retrieval Tool

14. Verification
The most common items are AGI, taxes paid, untaxed income, household size, and the number in college.
Families that are not using the IRS DRT have a greater chance of being selected for verification.
If selected, an IRS tax transcript may be required. A copy of an IRS Federal Tax return will not be acceptable.
A transcript can be obtained by mail using IRS Form t (Request for Transcript of Tax Return).

15. Who’s my parent when I fill out the FAFSA. Visit studentaid. ed
Who’s my parent when I fill out the FAFSA? Visit studentaid.ed.gov/sa/resources
These people are not your parents unless they have legally adopted you.

16. Parental Income and Assets
Allowances are made for federal, state, local, and social security taxes, working parent households, and a standard living allowance based on family size.
An asset protection allowance, based on the age of the older parent, is applied against the net worth of reported parental assets.
Value of primary residence, qualified retirement accounts and life insurance policies are NOT reported.
No provisions for personal debt

17. Student Income and Assets
Allowances are made for federal, state, local, and social security taxes.
Income protection allowance of $6,400 for 2016 –17 is applied and the remaining amount is assessed at 50%.
Dependent students must report assets in their name.
Student assets are assessed at 20%.

18. Overview of the FAFSA Use correct Social Security Numbers
NEVER pay to complete your FAFSA!
Select correct year’s FAFSA:
Use correct Social Security Numbers
Use previous year’s income: 2015
Be consistent with information
Parents and students each have their own section

19. Income Questions Tips

20. Asset Question Tips
Assets are reported as of the date the application is filed.
Some families do not have their assets included in the EFC.
529 Plans are reported as parental assets.
Do not report the value of retirement funds, life insurance policy or the home in which you live.
Do not report the value of a family business, if it employs less than 100 full-time employees.
Do not report the value of a family farm, if the family lives on the farm.
Asset Value = Current Market Value – Current Debt

21. Other Ways to Sign the FAFSA
FAFSA On the Web (FOTW)
If a student or parent chooses not to sign with their FSA ID, they should print, sign and mail the signature page, as instructed.
Paper FAFSA or PDF
The document must be signed and mailed (a copy should be kept).
Unable to get a parent signature – school counselor or FAO may sign in place of the parent(s)
Parent(s) are determined physically or mentally incapable of signing
Parents are not currently in the U.S. and cannot be contacted by normal means
Current address of the parent(s) is unknown

22. Student Aid Report (SAR)
Applicants will receive a SAR after the FAFSA is processed:
If a completed online or paper application and a valid address is provided, student receives an notification to retrieve
Without a valid address, notification is received by regular mail
REMEMBER: This is the document you may be required to submit with scholarship applications!

23. Expected Family Contribution (EFC)
A number calculated based on a federal formula
Remains the same no matter which school the student attends
Primarily income-driven
Major factors for dependent student:
Parental income & assets
Student income & assets
Family size and number of family members in college
Age of older parent

24. Subsidized Student Loans
Funded by US Department of Education
Based on “need”
Accrues NO INTEREST while in school
Payment plan begins 6 months after graduation (or dropping below half time or not returning)

25. Unsubsidized Student Loans
Funded by US Department of Education
NOT based on “need” – any student may qualify
Interest accrues for life of loan from first disbursement
Current Interest Rate: 4.29%
Payment begins 6 months after graduation (or dropping below half time or not returning)

26. Undergraduate Loan Limits
Undergraduate Loan Limits for Dependent Students:
Aggregate borrowing limit is $31,000.
Dependent students (excluding students whose parents cannot borrow PLUS
Base student loan amount (subsidized unsubsidized)
Additional unsubsidized student loan amount
Freshmen
$3,500
$2,000
Sophomores
$4,500
Juniors, Seniors
$5,500

27. Independent Loan Limits
Independent students & dependent students whose parents cannot borrow a PLUS Loan:
Aggregate borrowing limit is $57,500 for undergraduates.
Aggregate borrowing limit is $138,500 for graduates.
Independent student AND students whose parents cannot borrow PLUS
Base student loan amount (subsidized unsubsidized)
Additional unsubsidized student loan amounts
Freshmen
$3,500
$6,000
Sophomores
$4,500
Juniors, Seniors
$5,500
$7,000
Graduate or Professional $0
$20,500

28. Direct PLUS Loan
Loans available to biological or adoptive parents of dependent students
Credit check required, however, no debt-to-income check. If credit check passes, loan is approved.
No annual or aggregate limit to the amount a parent may borrow. The limiting factor is cost minus financial aid received equals the amount that can be borrowed.
Repayment begins once loan is fully disbursed.
Parents do have the option to defer payments.

29. StudentLoans.gov

30. FAFSA Confirmation Page

31. PA State Grant Form (SGF)
In addition to the FAFSA, first-time applicants must also complete the SGF.
Three ways to access SGF:
The link from FAFSA confirmation page
Through Account Access at PHEAA.org (24-48 hours after completing the FAFSA)
Complete a paper Status Notice if the student did not use the link on the confirmation page or provide a valid address
All three options require submission of a paper signature page.

32. SGF Through Account Access
Create a student account in Account Access.

33. State Programs

34. State Grant Eligibility Requirements
Domicile
High School Graduation
Academic Progress
Enrollment
Maximum Number of Grants
Program of Study
Undergraduate Enrollment
Satisfactory Character
Loan Default

35. 2016-17 Filing Deadlines May 1, 2016 August 1, 2016
All renewal applicants
New applicants who plan to enroll in a degree program
New applicants enrolling in a college transferable programs
August 1, 2016
Non-renewal applicants enrolling in:
Business, Trade or Technical school
Hospital School of Nursing
Community College
Open Admission Colleges
2-year programs that are not transferable

36. PHEAA State Grant Form
Complete the questions on each page of the PHEAA site
MUST PRINT THE FORM WHEN COMPLETE
BOTH Student and Parents must SIGN and MAIL the form back to PHEAA
If you do this in year one and the FAFSA continues to be filed with the same parent each year, you will NOT need to complete the State Grant Form again.

37. Pennsylvania PHEAA-Approved Schools
State Grant Awards
Pennsylvania PHEAA-Approved Schools
Costs
Maximum Awards
Minimum Awards
$0 - $12,000
$2,308
$500
$12,001 - $19,000
$3,692
$19,001 - $29,000
$3,970
$29,001 - $32,000
$4,340

38. 2015-16 Out-of-State Awards Reciprocal States Type of State
Minimum Awards
Maximum Awards
Non-Veteran
Veteran
Reciprocal States
$500
$554
$739
Unique Programs of Study
Reciprocal States
Delaware Ohio West Virginia
District of Columbia Massachusetts Vermont
Special approval has been granted to a limited number of institutions or programs on the basis that they offer education and training in a unique field not offered in PA or a reciprocal state

39. Financial Need and Award Packaging

40. COA – EFC = Financial Need
Need Analysis
Need Analysis has two components:
Cost of Attendance (COA)
Expected Family Contribution (EFC)
COA – EFC = Financial Need

41. Cost of Attendance Cost of Attendance (COA) includes the following:
Tuition and fees
Room and board
Books and supplies
Transportation expenses
Miscellaneous personal expenses

42. Cost of Attendance
The school has the discretion to add other expenses:
Child care
Special equipment purchase
Adjust other costs on a case-by-case basis
Costs vary greatly
Compare the same costs at all schools
Distinguish between:
Direct costs
Indirect costs

43. Packaging
The process by which schools make financial aid awards and meet financial need
Schools can set their own parameters, application processes and application deadline
Can calculate their own EFC for institutional aid
Types of aid in the award package:
Federal and state grants
Employment (Federal Work-Study and institutional employment)
Institutional grants and scholarships (need and merit-based)
Student loans
PLUS Loans

44. Financial Aid Award Letter
Presented by the school and typically includes:
Cost of Attendance (COA)
Types and amounts of financial aid offered
Conditions that are placed on the awards
Steps the student must take to accept the package
Student’s rights and responsibilities
Renewal, revision and appeal processes
Policy on Satisfactory Academic Progress

45. School A School B School C Cost of Attendance $15,000 $25,000 $35,000
- Federal EFC
$ 2,000
= Financial Need
$13,000
$23,000
$33,000
Federal Pell Grant
$ 3,825
PA State Grant
$ 3,414
$ 3,670
$ 4,011
Federal SEOG $ $
$ 1,500
Institutional Grant
$ 2,500
$ 8,000
Private Scholarship
Federal Work-Study
$ 3,000
Direct Sub Loan
$ 3,500
Direct Unsub Loan
Total Aid
$14,739
$19,495
$ 26,336
GAP (Cost – Aid) $
$ 5,505
$ 8,664
GAP (Cost – Aid)

46. Cost – Free Money = Actual Contribution
School A
School B
School C
Cost
$15,000
$25,000
$35,000
Pell Grant
$ 3,825
State Grant
$ 3,414
$ 3,670
$ 4,011
Institutional Aid $
$ 2,500
$ 8,000
FSEOG $
$ 1,500
Private Scholarship
Total Free Money
$ 7,739
$ 10,995
$ 17,836
Actual Contribution
$ 7,261
$ 14,005
$ 17,164

47. Reviewing the Financial Aid Package
How much of the financial aid is gift aid, and how much is not?
Which awards are based on need, and which are based on merit?
Are there any conditions on the gift aid; in particular, is there a GPA requirement?
Can the student expect their awards to change from year to year?
Will institutional awards increase as tuition increases?
Will free money convert to borrowed money as borrowing capacity increases?
How many years can the funds be received?

48. Reviewing the Financial Aid Package
What happens to their award package if the student changes their major?
How many hours per week must the student work to earn their work-study award?
What is the hiring process at the school for the work-study award?
How much is the family expected to borrow?
How will outside scholarships affect the award package?
If loans are listed in the award, which amounts are subsidized or unsubsidized?

49. How do I pay for college? FEDERAL & STATE MONEY FREE MONEY
This is MONEY you MAY or MAY NOT have to pay back!
GRANTS = FREE MONEY
LOANS = PAY BACK
Complete the FAFSA
Federal PELL Grant
Federal Supplemental Educational Opportunity Grant
Federal Work Study Positions
Subsidized & Unsubsidized Loans
Parent PLUS Loans
Complete the State Grant Form
PHEAA State Grant
Other funding available based on qualifying need
FREE MONEY
This is MONEY you DON’T have to pay back!
Scholarships
Grants
PRIVATE SOURCES
This is MONEY you WILL have to pay back with interest!
Banks
Credit Unions

50. Need HELP??? FAFSA Completion Events: Wilson College
Tuesday January 19th 2016
Tuesday March 15th 2016
Individual Appointments with Ellen Petley, CASHS College Advisor
Sign-up available in the CASHS lobby TONIGHT following the presentation
Contact your FAO
Financial aid offices are willing to help! Call to request an appointment at your school of choice.

51. Thank-you for coming! Our Financial Aid Experts, Private Loan Representatives, & Scholarship Guests will be available in the lobby to answer questions.