Financial Aid 101

Presented by Palisades High School Counseling Office

Projected College CostProjected Average Costs for four years of tuition, room, board, and fees at Public Universities

Source: Wells Fargo

Calculating College Costs Tuition Fees (health, activity, lab, computer

access) Room Board Books Supplies Personal expenses Transportation

Examples of College Costs

BCCC Bloomsburg Lehigh

Tuition & fees

Room & board*

Books & supplies*

Personal Expenses

Transportation

Total Costs

$ 1,350 $ 1,200 $ 2,010

$ 4,004 $ 7,456 $ 39,780

$ 1,500 $ 10,520$ 6,890

$ 1,350 $ 3,000 $ 2,500

$ 2,600 $ 500$ 1,602

$10,804 $ 55,310$ 20,148

Paying for Higher EducationWhere the money comes from Family Student Federal government State government (PHEAA) Institutional Aid (college) Private sources (employer, fraternal

organizations)

The Trends

6%

4%4%

6%11%

19% 50%

Federal Loans

Institutional &Other GrantsFederal PellGrants

State Grants

Federal Campus-Based

Other FederalProgramsNon FederalLoans

The trend in financial aid has been a growing reliance on borrowing for college.

During the last 25 years, financial aid has changed from grant-based to loan-based.

How to Calculate Financial Need

Cost of school – EFC = Financial Need

Demonstration of financial need does not guarantee that all of the need will be met through financial aid.

EFC EFC is determined through a federal formula It does not take into account credit card debt,

mortgage, car loans, disposable income Considered as a reasonable expectation of

what a family should pay toward a child’s educational expenses

An online tool is available to help you estimate the EFC FAFSA4caster available at

www.FederalStudentAid.ed.gov

Types of Financial Aid Gift Aid (does not have to be paid

back) Scholarships Grants

Self – Help Loans Work Study

A Financial Aid Package may include both types

Scholarships Contact Colleges Check parent & student clubs,

organizations, unions, employers Check our website Check other internet sites:

www.fastweb.com www.collegeboard.com www.finaid.org

Need Based vs. Merit Based Aid

NEED BASED AID Eligibility is

determined by evaluation of family’s finances

Done by application (FAFSA)

May require additional forms (CSS profile)

MERIT BASED AID Awarded by

colleges and private sources

Include academic, leadership, artistic, music, single parent and returning adult student awards

Gift-aid vs. Self-help

67

33

10

90

40

60

2

98

49

51

41

59

76

24

37

63

0

20

40

60

80

100

Bucks(need-based)

Bucks(non-need

based)

ESU(need-based)

ESU(non-need

based)

PSU(needbased)

PSU(non-need

based)

Lehigh(needbased)

Lehigh(non-need

based)

Self-help

Gift Aid

General Eligibility Requirements for Federal Aid

Submit a FAFSA form by deadline Have a high school diploma Be enrolled as a regular student in an eligible

degree program at an eligible institution at least half-time

US Citizen Valid Social Security number Make satisfactory academic progress Sign a certifying statement that funds will be

used appropriately Not be in default of any previous educational

loan Be registered with the Selective Service

Federal Grants Federal

Pell Grant Academic Competitiveness Grant (ACG)

or SMART Grant Teach Grant GI Bill for post 9/11 Yellow Ribbon Program American Opportunity Tax Credit Loan Forgiveness Program

State & Institutional Grants

State PHEAA Grant PHEAA Summer State Grant New Economy Technology Scholarship (NETS) Educational Assistance Program (Nat’l Guard) Robert C. Byrd Honors Scholarship Post-secondary Education Gratuity Program

Private Institutional Grants

Work Study Employment on or off-campus Rate of pay determined by

College’s Financial Aid Office Student gets a paycheck. Student

must decide whether to put toward tuition or spend

This amount is not calculated as student income in next year’s FAFSA

Student Loans Federal Direct Stafford Loans

Subsidized Unsubsidized

State Alternative

Direct PLUS Home Equity

Examples of Financial AidExample #1 School A School B School CSchool DCost $8,500 $18,000 $23,000$34,000-EFC 2,000 2,000 2,000 2,000---------------------------------------------------------------------------------------------------------------= Need $6,500 $16,000 $21,000$32,000

Pell Grant $2,360 $ 2,360 $ 2,360$ 2,360

PHEAA Grant $1,300 $ 4,000 $ 4,300$ 4,700SEOG Grant -0- -0- -0- $ 2,000 Scholarships -0- $ 500 $ 2,000$17,950Perkins Loan -0- $ 1,300 $ 2,000 -0-Stafford Loan – Sub $2,240 $ 3,500 $ 3,500 $ 2,990Stafford Loan - Unsub $1,260 -0- -0- $ 510Work Study -0- $ 1,200 $ 1,500$ 2,000---------------------------------------------------------------------------------------------------------------Total Aid $7,760 $12,860 $15,660 $32,510

Remaining Need - $ 740 $ 5,140 $ 7,340$ 1,490(Unmet need + EFC)

Applying for Financial Aid Institutional Applications

Check institution’s publications/website Some deadlines will be different than FAFSA

CSS Profile www.collegeboard.com Only available online $9 application fee, $16 for each college Only send to schools that require it

FAFSA Online application is preferred

Must get a pin for student and parents www.pin.ed.gov

Paper will be available in limited quantities Can not file until after Jan 1 Deadline is May 1, but recommend filing by February 15

FAFSA – After you apply PHEAA Status Notice

Sent to all first time applicants Student/parent completes only the

items requested – mandatory SAR (Student Aid Report)

If done by paper, will be via paper; if done via web, will be sent via e-mail

Review for accuracy

Summary

The cost of higher education is primarily

the responsibility of th

e student and

family

Financial Aid supplements the

Expected Family Contribution – It does

not provide it.

Ability to pay vs. willingness to pay

Lifestyle vs.

Affordability