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Financial Aid Presentation 2010-2011 Academic Year
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Goals of Financial Aid Access to Post-Secondary Education Choice among Post-Secondary Institutions
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Principles of Financial Aid Student and parent have the primary responsibility for funding post-secondary education to the extent they are able. Families will be treated equitably and consistently by the needs-analysis formula.
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General Eligibility Requirements U.S. citizen or an eligible non-citizen High school diploma or equivalent Certificate, diploma, or degree program. Maintain satisfactory academic progress. Not be in default or owe refund Registered with the Selective Service.
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Applying for Aid Applications & Deadline dates DO NOT WAIT to be accepted for admission. Respond quickly to additional requests. Explore ALL funding resources.
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Application Hints Read all instructions carefully Assemble all needed materials Name must Match Social Security Card Complete every question Print clearly Obtain all signatures or PIN #’s
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Free Application for Federal Student Aid (FAFSA) Green & Purple File on line www.fafsa.ed.govwww.fafsa.ed.gov Request PIN www.pin.ed.gov Title IV College Code –Penn State 003329
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FAFSA on the Web’s Homepage
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Family Educational Rights and Privacy Act (FERPA) Financial information submitted is protected. Data is treated as confidential. Authorization for release to a third party.
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How is Aid Awarded? Need-Based –Financial Need Grants Merit-Based –Academic Ability –Program of Study –Special Talent/Achievement Scholarships
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What is “Financial Need”? Cost of Attendance - Expected Family Contribution = Financial Need
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Cost of Attendance Tuition and Fees Room and Board Books and Supplies Transportation Personal Expenses
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Expected Family contribution (EFC) The EFC is a measure of how much the student and his or her family can be expected to contribute to the cost of the student’s education. The EFC is calculated according to a formula specified in the law.
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Federal Expected Family Contribution Total taxed & untaxed income of family. Assets, savings, investments, business or farm investment, but not home equity Parents contribution is approx.- 12% Students contribution is approx.- 20% Number of children or other dependents enrolled on at least a half time basis. Excludes parent.
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Types of Aid Gift Aid: Scholarship Grants Self-Help Aid: Loans Employment
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Sources of Aid Federal –Pell, SEOG, Perkins, Work-Study and Stafford Loans Institutional –Internal scholarships Private –Local & Civic organizations
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Federal Pell Grant EFC determines eligibility (0-4617) Award amount based upon enrollment & school costs; range $488-$5350 Verification - maybe selected by Federal Government Reply promptly w/additional documents Special Circumstances
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Institutional Aid Grants, scholarships, loans, employment or discounts Institutional application Know deadline date Contact Financial Aid Office for details
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Campus-Based Aid Federal Work Study (FWS) Federal Perkins Loan Federal Supplemental Educational Opportunity Grant (SEOG)
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Federal Work Study (FWS) Eligibility: Undergraduates & Graduates Check “Yes” on FAFSA Hourly rate and bi-weekly payment Average award $3000
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Federal Perkins Loan Eligibility: Undergraduates & Graduates Interest Rate: 5% Nine month grace period Deferments & Cancellation Provisions Average award $2200
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Federal Supplemental Educational Opportunity Grant (SEOG) Eligibility: Students with exceptional need Priority to Pell Grant Recipients Undergraduates only Average award $800
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Federal Student Loan Program Subsidized –Federal government pays interest –Fixed Interest rate @ 4.5% Unsubsidized –Student pays interest or has capitalized –Fixed Interest rate @ 6.8%
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Federal Loans Con’t Freshmen$3500/2000 Sophomore$4500/2000 Junior/Senior$5500/2000 Graduates $8500/12,000 1-800-433-3243 Disbursed ½ fall and ½ spring
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Master Promissory Note (MPN) Sign MPN with PIN The MPN is good for 10 years Complete current FAFSA
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Electronic Fund Transfer (EFT) Eliminates paper checks Funds direct deposit
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Federal PLUS Loan Parents of dependent students Interest Rate capped @ 8.5% –Repayment 60 days after disbursement –Sign Parent Plus MPN –Apply within 60 days of school start date 1-800-433-3243 www.psu.edu/studentaid
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Alternative Loans The student is the borrower Various Lenders Interest rates vary Contact school for preferred lenders
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Private Sources Service/Fraternal Employers/Business Churches/Religious Source Books –Outstanding Students of America –Financial Aid for Higher Ed –Octameron Associates Internet – Fastweb & PHEAAMentor
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Private Sources con’t United States Armed Forces –United States Army Reserve –Veterans or ROTC –Money For College Montgomery GI Bill –Student Loan Repayment Contact local recruiter for specific details
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Be Scholarship Search Savy No Credit Card #’s No Fees No 900 #’s
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Questions, Comments, Concerns
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