Financial AidFinancial Aid2014-20152014-2015

Goals of Financial Aid

• Access to Post-Secondary Education

• Choice among Post-Secondary Institutions

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.

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.

Applying for Aid

• Applications & Deadline dates

• DO NOT WAIT to be accepted for admission.

• Respond quickly to additional requests.

• Explore ALL funding resources.

Application Hints

• Read all instructions carefully

• Assemble all needed materials

• Name must Match

Social Security Card

• Complete every question

• Obtain PIN #’s

Free Application for Federal Student Aid (FAFSA)

• File on line www.fafsa.ed.gov

• Request PIN www.pin.ed.gov

• Title IV College Code – Penn State 003329

FAFSA on the Web’s Homepage

Simplified options

Updated graphics

An updateable announcement section

Access to FAFSA PDF and paper FAFSA information

TAXES

Financial Information

The IRS Data Retrieval

Electronically filed tax return information will be available from the IRS in 1-2 weeks

data from paper tax returns will be available in 6-8 weeks.

Confirmation Page

Confirmation NumberData Release Number

(DRN)EFC estimatePell Grant and Direct Loan

estimatesOption for parents to

transfer info to an application for a sibling

Option to transfer info to a state application

Family Educational Rights and Privacy Act (FERPA)

• Financial information submitted is protected.

• Data is treated as confidential.

• Authorization for release to a third party.

How is Aid Awarded?

• Need-Based– Financial Need

• Grants

• Merit-Based– Academic Ability– Program of Study– Special Talent/Achievement

• Scholarships

What is “Financial Need”?

• Cost of Attendance

• - Expected Family contribution

__________________________________

• = Financial Need

Cost of Attendance

Tuition and Fees

Room and Board

Books and Supplies

Transportation

Personal Expenses

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.

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.

Types of Aid

Gift Aid Scholarships

Grants

Self-Help Aid

Loans Employment

Sources of Aid

• Federal– Pell, SEOG, Perkins, Work-Study and Stafford

Loans

• Institutional– Internal scholarships

• Private– Local & Civic organizations

Federal Pell Grant

• EFC determines eligibility (0-5081)

• Award amount based upon enrollment & school costs– $605-$5645

• Verification - maybe selected by Federal Government

• Reply promptly w/additional documents

• Special Circumstances

Federal Supplemental Educational Opportunity

Grant (SEOG)

• Eligibility: Students with exceptional need

• Priority to Pell Grant Recipients

• Undergraduates only

• Average award $1200

Federal Work Study (FWS)

• Eligibility: Undergraduates & Graduates

• Check “Yes” on FAFSA

• Hourly rate and bi-weekly payment

• Average award $3000

Federal Perkins Loan

• Eligibility: Undergraduates & Graduates

• Interest Rate: 5%

• Nine month grace period

• Deferments & Cancellation Provisions

• Average award $2500

Federal Student Loan Program

• Subsidized– Federal government pays interest – Fixed Interest rate @ 3.4%

• Unsubsidized– Student pays interest or has capitalized– Fixed Interest rate @ 3.4%

Federal Loans Con’t

• Freshmen $3500/2000

• Sophomore $4500/2000

• Junior/Senior $5500/2000

• Graduates $8500/12,000

Disbursed ½ fall and 1/2 spring

Master Promissory Note (MPN)

• Sign MPN

•The MPN is good for 10 years

Institutional Aid

• Grants, scholarships, loans, employment or discounts

• Institutional application

• Know deadline date

• Contact Financial Aid Office for details

Federal PLUS Loan

• Parents of dependent students

• Interest Rate capped @ 6.41%– Repayment 60 days

• Sign Parent Plus MPN

• www.psu.edu/studentaid

Alternative Loans

• The student is the borrower

• Various Lenders

• Interest rates vary

• Contact school for alternative lenders

Electronic Fund Transfer (EFT)

• Eliminates paper checks

• Funds direct deposit

Private Sources

• Service/Fraternal • Employers/Business• Churches/Religious• Source Books

– Financial Aid for Higher Ed– Octameron Associates

• Internet – Fastweb & PHEAAMentor

Private Sources con’t

• United States Armed Forces– United States Army Reserve– Veterans or ROTC– Money For College– Student Loan Repayment

• Contact local recruiter for specific details

Be Scholarship Search Savy

• No Credit Card #’s

• No Fees

• No 900 #’s

Questions, Comments, Concerns