1. 2014-15 Financial Aid High School Night Brought to you by

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3.  Dictionary.com (noun) money to support a worthy person or cause [syn: aid]aid  College definition: Grants, Scholarships, Loans, Student Employment, or other funds used to pay for higher education. Definition of Financial Aid 3

4. 4 FAFSA PHEAA MPN PLUS PHEAA USDE ISIR PIN FAO DRN EFC

5. Cost of Attendance Less Expected Family Contribution Equals NEED 5

6. Direct Costs - Tuition, Fees, Room and Board Indirect Costs - Books, transportation, parking, laundry, personal 6

7. 7 Federal Methodology is the formula created by Congress to determine EFC. Information supplied on the FAFSA is used to generate the EFC.

8.  Debt does not improve your chances of receiving need based aid  Don’t buy a new house  Don’t finance a luxurious vacation  Current income is the major factor in determining need based eligibility 8

9. High Cost Institution Low Cost Institution Cost of Attendance $30,000$8,000 Minus Family Contribution $7,000 Equals NEED$23,000$1,000 9 * * The Expected Family Contribution is the same at each institution!

10.  Gift Aid Scholarships (merit based) Grants (need based)  Self-Help Loans Employment 10

11.  Merit based aid Academic ability Special talent/achievement Program of study Family background  Need based aid Financial need as determined by a formula created by USDE, Institution, Foundation 11

12.  Federal  State  Institutional  Private 12

13.  Largest federal grant  FASFA required  EFC determines eligibility  Award amount based upon enrollment status and cost of attendance Federal Pell Grant 13

14. 14  FAFSA form required  Loan is in the student’s name  No credit check or cosigner required  No principal payments while enrolled  Repayment begins 6 months after student is out of school

15. 15 Grade Level Base Amount Additional Amount Total YEARLY Amount Freshmen$3,500$2,000$5,500 Sophomore$4,500$2,000$6,500 Jr., Sr., or 5 th year $5,500$2,000$7,500 Aggregate loan limit of $31,000 Base Amount: Subsidized or Unsubsidized Additional Amount: Always Unsubsidized

16. 16 Subsidized – Need based Interest is subsidized by the federal government during in-school period and the 6 month grace period. Unsubsidized – Need is not considered Interest is charged to the borrower during the in-school and grace periods. Accrued interest can be paid quarterly or it will be added to the principal.

17.  Fixed interest rate of 3.4% (AY 2013-14)  Loan fees based on principal amount of each loan: Direct Loan Program charges a net 1.05% origination fee at disbursement  Check with your school for application instructions Cost of Borrowing Federal Direct Student Loan 17

18.  Loan program for parents of dependent undergraduate students  Loan limits Annual limit: cost of attendance less other aid No Aggregate limit  Fixed interest rate Direct PLUS: 6.4% plus a net 4.204% origination fee at disbursement  Additional Unsubsidized for PLUS denials Federal Direct Parent PLUS Loan 18

19.  Federal Supplemental Educational Opportunity Grant (FSEOG)  Federal Perkins Loan  Nursing Loan  Federal Work Study Program Other Federal Aid 19

20.  Pennsylvania Higher Education Assistance Agency (PHEAA)  PA Grants up to $4,348 for Pennsylvania schools, reduced to $600 for reciprocating states State Aid 20

21.  Merit Awards  Need-based Awards Institutional Applications CSS/PROFILE Application Free Application for Federal Student Aid (FAFSA) Institutional Aid 21

22. Scholarships or grants for outside sources such as:  Service/Fraternal Organizations  Employers/Businesses  Churches/Religious Groups  H.S. Guidance Counselors  Credit Unions & Banks  Civic Organizations  Internet Private Aid 22

23.  No Adjustment  Dollar for dollar adjustment to institutional grant/scholarship  Dollar for dollar adjustment to self help aid  Percentage reduction in grant/scholarship and/or self help Private Aid Policies 23

24.  You have to pay a fee  Money-Back Guarantee  Credit Card/Bank Account info required  A high pressure, sales pitch Scam Warning Signs 24

25. You do:  Apply early and by the deadlines  Complete all school financial aid documents that are available How do I receive Financial Aid? 25 You don’t:

26.  Remember: most aid is on “first- come, first-serve” basis  Do not wait to be accepted for admissions before applying for aid  Respond quickly to requests for additional information  Keep copies of everything for your records How do I receive Financial Aid? (continued) 26

27. 27  Collects family’s personal & financial information to calculate a student’s EFC  May file FAFSA in one of two ways: Paper FAFSA FAFSA on the Web

28. 28 2013-14 FAFSA 10-page booklet containing: Instructions 108 questions in 7 steps

29. 29  Web site: www.fafsa.gov www.fafsa.gov  Available on or after January 1, 2014  Requires 2013 Federal Tax Information (or estimates)  FAFSA on the Web Worksheet: Questions follow order of FAFSA on the Web

30. 30  Avoid being charged a fee to file the Free Application for Federal Student Aid  The FAFSA process is FREE Go to FAFSA on the Web (FOTW) at: www.fafsa.ed.govwww.fafsa.ed.gov or www.fafsa.gov

31. 31  Web site: www.pin.ed.gov www.pin.ed.gov  Required by students and parents throughout aid process, including subsequent school years

32.  NEW: option that allows applicants to retrieve income tax information from the IRS database  Data will not available to access if: ◦ Taxes not filed ◦ Taxes were recently mailed (within last 3-4 weeks) ◦ Taxes were recently e-filed (within last 7-10 days) ◦ Married filed separately ◦ Identity theft ◦ Amended tax return 32

33. The FAFSA confirmation page has a link to transfer FOTW data to the PHEAA state grant application Pennsylvania residents – Complete the State Grant application Click here if you want to apply for the Pennsylvania State Grant. State Grant Form / Account Access

34. 34  CPS notifies student of FAFSA processing results by: E-mail notification containing a direct link to student’s on-line SAR if student’s e-mail was provided on the FAFSA Paper Student Aid Report (SAR) through U.S. Mail  Student with PIN can view SAR online at www.fafsa.gov. www.fafsa.gov

35. 35  Corrections to FAFSA data may be made: On paper SAR; At: www.fafsa.gov using student & parent PINwww.fafsa.gov At the student’s Financial Aid Office  If estimated tax info was used or IRS info not available, FAFSA can be updated by using the IRS Data Retrieval process.

36. 36  USDE has established edits to review the FAFSA information for accuracy  Common documents requested include: 2013 U.S. Tax Return Transcript W-2 Forms Verification Worksheets SNAP documentation Child support paid out HS diploma  Review performed by the Financial Aid Administrator

37.  Dependency Status  Reduction in Income  Unusual Expenses (Medical, etc.)  Other Unusual Circumstances 37

38.  The Financial Aid Letter, or “Package,” is the written notification from the school of its offer of financial aid.  The Award Letter should include: COA Information Description of aid and conditions for maintaining/renewing aid Process of how to accept or decline the aid Financial Aid Package 38

39. The individual school’s COA —The aid available from that school The amount left over is the student/family responsibility Compare Packages 39

40.  Higher Education and Opportunity Act (HEOA) requires all schools to disclose a net price to consumers.  Net price calculators will enable first year, full time students to determine an estimated Cost of Attendance (COA)  COA includes direct and indirect costs  Many calculators may also provide an estimate of financial assistance that may be available

41. QUESTIONS??? 41

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