1. Welcome

2. Topics Financial Aid Basics Federal & State Aid Forms
Financial Aid Award Letter
Student Loans
Scholarships
Tips and Strategies

3. Financial Aid Basics
Financial Aid: financial assistance for eligible students to help pay the cost of an education at an eligible post-secondary school.
Need-Based Aid (must demonstrate a financial need as determined by a federal formula)
Merit-Based Aid (based on unique characteristics or skills, not financial need)
Must apply every year to be considered
Males must register for Selective Service
Students should play an active role in the process
Talk with parents about your goals/plans
Get to know your high school guidance counselors

4. Financial Aid Basics: Terms
FAFSA (Free Application for Federal Student Aid) is the primary application used to apply for financial aid.
Required by all schools, PHEAA, and some scholarship organizations
Helps school determine your financial aid award
Cost of Attendance(COA): costs that the student can expect to incur during the school year (direct + indirect costs)
Direct costs: billed by the school
Indirect costs: not included in bill
Expected Family Contribution (EFC): A measure of how much the student & family are expected to contribute to the cost of the student’s education. The EFC is calculated from a federal formula
(EFC remains the same, regardless of the school)
Financial Need = COA - EFC
Schools will determine after reviewing your financial aid applications

5. Page 14; PA Student Aid Guide
Types of Financial Aid
GIFT AID: Free Money
Scholarships: financial aid based on merit, unique characteristics and/or need, that generally does not have to be repaid
Grants: financial aid, usually based on need, that generally does not have to be repaid
SELF HELP AID: Loans, Work Programs, Savings
Work Study: Wages earned by students working in jobs, coordinated through the campus and/or State
Loans: Borrowed money that must be repaid
Federal Government,
Banks, Schools/Colleges
==================================================================================================================================================
Need-Based Aid- based on financial need, which is determined by a federal formula (ex: grants, subsidized loans)
Merit-Based Aid – based on unique characteristics such as scholastic & academic ability, grade point average, etc. (ex: scholarships)
Basically these 4 types: Loans w/schools: Perkins Loan – federal program administered by the school
Background/grants – police, military,

6. Funding Sources Federal Government (Studentaid.ed.gov or 800-433-3243)
Grants (PELL, TEACH, etc.)
Federal student loans (Direct, PLUS & GRAD PLUS student loans)
State Government (pheaa.org or )
Grants (PA state grant)
Special state-aid programs (PATH, PA-Tip, etc.)
Schools/Colleges
Institutional grants
Scholarships
Work study
Private/Public/ Civic Organizations, etc.
Private student loans

7. Federal Grant Programs
Pell Grant ( max award $5,920)*
Campus-based aid – amounts determined by FAO
FSEOG………………up to $4,000
Federal Work-Study…FAO determines
Student must be enrolled at least half-time and meet satisfactory academic progress
Eligibility determined by FAFSA (forms)
Amounts determined by Need Analysis & Cost of School
* Goes to most financially needy students

8. Pennsylvania State Grant*
Full-time, in PA…...….up to $4,378 (16/17 AY)
Part time, in PA……… up to half of the full time award
Out of state….. Up to $554. in DE, MA, OH, VT, WV, and DC
Veterans: up to $745
All other states…. = $0
*Must be a resident of PA, attend at least half-time in a minimum 2 year program and meet satisfactory academic progress – see pheaa.org or the PA Student Guide
Eligibility determined by FAFSA & PA Grant Form
Amounts determined by Need Analysis & Cost of School
* Must be at least half-time to be eligible

9. File the FAFSA by the earliest deadline
Know When to Apply!
FAFSA - Apply as early as October 1st of the year prior to when you will attend college
School Deadlines – check out your college(s) websites to see if they list a priority filing deadline.
PA State Grant Deadlines
May 1, 2017 – First-time and renewal students attending colleges, universities & college transferrable programs (excluding community colleges)
August 1, 2017 – 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.
File the FAFSA by the earliest deadline

10. Federal Aid: FAFSA
Who needs to apply? All students who wish to be considered for financial aid and plan to attend a post-secondary education school.
Why is the info needed? All data is used to calculated the student’s EFC, which is the primary resource used to assist schools with awarding financial aid
When should the form get completed? On or after October 1, using the Federal tax returns from the Prior-Prior Year (PPY) and before deadlines
Where is the form located: online at
Enrollment Dates
(year student will attend college)
When can students submit the FAFSA
Tax Return Information
July 1, 2018-June 30, 2019
October 1, 2017 – June 30, 2019
2016
July 1, 2019-June 30, 2020
October 1, 2018 – June 30, 2020
2017

11. FORMS

12. FAFSA.gov Click here for initial FAFSA
Click here for saved application, corrections, or renewal FAFSA
Must file every year
File online – Fast, Secure, SKIP LOGIC and Built-in Edits
Want practice? Visit FAFSA4CASTER

13. What Information is Required
The FAFSA is broken down into seven sections that asks for specific information needed to determine the family’s EFC.
What information is required? Personal demographic information about student and custodial parent(s), financial information for the household & names of the schools the student is interested in attending.
Student Demographics (legal name, SS#, alien registration or permanent resident card)
School Selection (may select up to 10 schools at a time)
Dependency Status (dependent students need parent(s) information)
Parent Demographics (legal name, SS#, alien registration or permanent resident card)
Financial Information (tax returns, current bank statements, net amount of assets, etc.)
Sign & Submit (register for a federal student aid ID at
Confirmation

14. Whose information goes on the FAFSA?
Dependent Student and Parent(s)
Independent student – student’s information & spouse (if married)
Divorced or Separated Parents -> Custodial Parent: the parent that you lived with most during the last 12 months, if equal: the parent that provided the most financial support
Divorced/Separated parents who live in the same household
Same Sex Parents
Stepparents
Adoptive parents
Foster parents - No
Legal guardians - No
Anyone else the student is living with - No

15. Who Is Independent? 24 or older on Jan 1st of award year Married
Veteran (includes active duty personnel)
Working on graduate level degree
Emancipated minor in legal guardianship
Orphan, in foster care or ward of the court at anytime when student was age 13 or older
Have legal dependents other than spouse
Student deemed homeless by proper authority

16. IRS Data Retrieval Tool
Currently
Unavailable
After taxes are filed:
Automatically pulls in IRS Tax info and places data into the FAFSA, or overrides estimates
REQUIRED!
ALSO in Student Section, if student is filing taxes
Do we need an updated screen shot?

17. FAFSA Completion Tips

18. THE FSA ID & PASSWORD NEW - Replaced the “PIN” as of 5/10/15
Student and one parent will sign the FAFSA electronically - each needs a SEPARATE address and ID/password
A verification process delays use – Get your ID/password early
A FAFSA IS NOT COMPLETE UNTIL SIGNED!
You’ll use it again for:
Renewal FAFSA
FAFSA status and corrections
Signing a Direct Loan Master Promissory Note (MPN)
Complete required entrance and exit loan counseling
Review loan history at NSLDS.ed.gov

19. FAFSA Completion Page
Apply for your State Grant from the FAFSA Completion/Confirmat ion page
Start your state application to apply for Pennsylvania state based financial aid
TRANSFERS FOTW data to the State Grant Application

20. PA State Grant Application (www.pheaa.org)
Link off the FAFSA Application Confirmation Page
Missed the link or it wasn’t available?
Link in an sent to student/parent from PHEAA, OR
Go to PHEAA.org; State Grant Program; and complete the form
Additional questions needed to determine PA State Grant eligibility:
Enrollment status (full-time/part-time)
Value of PA 529 College Savings Program
Program of study for students in vocational programs
Employment status
Print and mail the signature page
Help screens are available for all questions

21. Special Circumstances-contact Schools & PHEAA
If things change…
Divorce or separation
Recent death or disability
Reduced income/Unemployment
Relocation(military or emergency)
Only a school can change a FAFSA based on your circumstances

22. Forms are Filed-What Happens Next?
Expected Family Contribution (EFC) is determined based on:
Parent income and assets
Assets: approximately 6 %
Income: age & size of household
Student income and assets
Income: 50% of amounts over $6,420
Family size
Number of children in college
Age of the older parent
Financial Aid Award letters are sent to the students
Student reviews letters & researches options
Cost of Attendance
EFC
COA – EFC = Financial Need

23. Financial Aid Award Letter
An official notification from the School about financial aid, terms, and conditions
Lists the type and amount of each award to be received
Describes what must be done to accept or reject any award
Sign and return
Complete MPN’s for loans; Entrance Counseling
Verification: IF you are flagged and need official tax transcripts, request online at or by calling (800)
Please note that tax transcripts are not the same as copies of tax returns
REVIEW and ASK QUESTIONS
Is there criteria on the Gift Aid - GPA, Participation, Membership, Major ?
Will funds change if tuition changes; Will Gift Aid continue in subsequent years
Is PLUS and Workstudy packaged?
How are Outside Scholarships Handled?
What is the overall debt?

24. student LOANS

25. When to Consider Student Loans
Exhaust all free financial aid options before borrowing student loans
Student loan debt makes up the 2nd largest type of consumer debt (over $1.1 trillion) Consumer Financial Protection Bureau
If not paid, student loans can adversely affect the borrower’s credit & future purchasing power
If you must borrow, only borrow what you need
Don’t borrow more to get your education than you can reasonably expect to make during your very first year in the workforce.

26. Federal Subsidized & Unsubsidized Loans
Loan is in the student’s name
Payments begin 6 months after leaving school or dropping below h/t
Deferred payments
Origination fee of 1.069% of the amount requested
Must complete entrance counseling
Complete FAFSA every year
Direct Subsidized Loan: government pays the interest while the student is enrolled at least h/t, during the grace period and while on deferment (awarded based on financial need))
Direct Unsubsidized Loan: borrower is responsible for the interest that accrues on the loan at all times

27. Federal Direct PLUS Loan
For parents of dependent undergrad or graduate level students
Direct Parent PLUS Loan - in parent’s name for student costs
6.31 % variable/fixed interest rate; 4.276% fees (AY 16/17)
Rates set every July 1st for the life of that year’s loan; fees are deducted from disbursement
Can borrow up to the Cost of Attendance
MUST apply each year loan is taken
No Debt-to-Income test, only lenient credit check
Can have an endorser (co- signer)
Principal payment can be deferred while student is in school
Interest will continue to accrue
IF denied - student is eligible for an additional $4,000 unsubsidized loan
Must complete a FAFSA to determine any additional aid

28. Scholarship Search Don’t miss out on FREE money!
Start early – and KEEP LOOKING
Create an academic resume`
Don’t forget to continue studies!
GOOGLE your interests
Don’t PAY for information
Criteria varies by school
If you’re asked to pay, it’s not free money
Don’t disqualify yourself until IT disqualifies YOU
Don’t fear ESSAYS
Provide what is asked
Small scholarships ADD UP
Activities, Athletics, Family, Hobbies, Participation, Attributes – DO YOUR RESEARCH
Don’t miss DEADLINES
Write it down!
FastWeb.com
EducationPlanner.org
Chegg.com
FinAid.org
ScholarshipExperts.com
Scholarships.com
Scholarship-Page.com
DoSomething.org/Scholarshi ps
Colleges.Niche.com
StudentScholarships.org
BigFuture.Collegeboard.org
CollegeAnswer.com
CollegeNet.com
MeritAid.com
MORE….

29. FINAL THOUGHTS/WRAP-UP

30. Reduce the Need for Financial Aid
Research and find the right school and major
Minimize transfer and change of major
Earn college credits while in high school through AP courses, vo-tech and dual enrollment
Consider options for cutting costs (commute, take summer classes, buy used books, make smart meal plan choices) Graduate on Time
4 year for bachelor’s degree
2 year for associate’s degree
2 + 2 Strategy (2 years at a community college then transfer credits to a 4-year school)
3 + 2 (master’s degree)

31. PHEAA ONLINE RESOURCES
PHEAA.org
EducationPlanner.org
MyNextMove.org
MySmartBorrowing.org
YouCanDealWithIt.com
Facebook.com/pheaa.aid
MyFedLoan.org

32. QUESTIONS