Plan to Go to College

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2 Plan to Go to College There are lots of things to think about and many questions you need to ask. How much will it cost? Can I afford college? What is financial aid? What is a FAFSA? When and how do I apply? Where can I get help? Ask questions 2

3 Ways to Finance College 529 Direct Savings Plans Tax benefits Employer Tuition Benefits Tuition Payment Plans Reduce your costs by: Taking college courses in high school Live at home Apply for Financial Aid Know your options 3

4 What is financial aid? Financial aid can make college affordable for you. Financial aid refers to specific borrowed, given, or earned money that can be obtained from various sources to help pay for college. It is intended to make up the difference between what your family can afford to pay and what college costs. If you think you cannot afford college, think again. There is lots of aid out there. 4

5 Types of Financial Aid There are two types of financial aid. Gift Aid Grants Scholarships Self-help Aid Work-Study Loans These funds may be merit-based, need-based, or non need-based. 5

6 Sources of Financial Aid Financial aid comes from a variety of sources. Federal Government State Government College (Institutional Aid) Outside/ Private Sources 6

7 U. S. Department of Education Federal Grant Programs Program Acronym Type of Aid Award Federal Pell Grant Grant; Need-based up to $5,775 Iraq and Afghanistan Service Grant Grant up to $5,353* *Estimated maximum dependent upon sequestration Campus-Based Programs Program Acronym Type of Aid Award Federal Supplemental Education Opportunity Grant FSEOG Grant Exceptional Need Federal Work-Study FWS Need-based Employment $100-$4,000 no annual minimum or maximum amounts; at least minimum wage Perkins Loans Need-based Loan up to $5,500 for undergraduates and up to $8,000 for graduate students 7

8 U. S. Department of Education Federal Loan Programs, Type Rate Amount Grace Perkins Subsidized 5% Fixed $5,500 annual limit 9 Months Stafford Subsidized Unsubsidized 4.66% Fixed (On or after 7/1/14 and before 7/1/15) $3,500 annual limit for freshman $2,000 annual limit for dependents, $6,000 annual limit for independent freshman 6 Months 6 Months PLUS (Parent Loan) Credit-based Unsubsidized 6.21% Fixed (On or after 7/1/14 and before 7/1/15) Depends on cost of attendance and other financial aid Within first 60 days (can be deferred) 8

9 Subsidized vs. Unsubsidized To understand the difference between the two, consider this: When will interest begin to accrue? Type Need Based Interest Subsidized Stafford Loan Unsubsidized Stafford Loan Yes: Based on financial need No: Financial need NOT a factor Interest is paid by the federal government while a student is in school at least ½ time and during authorized periods of deferment A student is always responsible for paying interest 9

10 Federal Stafford Loans All students attending ½ time (at least 6 credit hours) are offered loans Student responsibility and debt Borrowing from the U.S. Department of Education Requires completion of Loan Entrance Counseling and a Master Promissory Note (one time only)

11 Stafford Loan Limits Aggregate Loan Limits - Stafford Loan Combined Base Limit for Subsidized and Unsubsidized Loans Additional Limit for Unsubsidized Loans Total Limit for Unsubsidized Loans (minus subsidized amounts) Dependent Undergraduate Students $23,000 $8,000 $31,000 Independent Undergraduate Students (and dependent students whose parents were denied a PLUS loan) $23,000 $34,500 $57,500 11

12 Federal Parent (PLUS) Loan Borrow from U.S. Department of Education 6.21% fixed interest rate for Parent applies at If parent is denied PLUS eligibility, student is eligible for additional Federal Direct Unsubsidized Stafford Loan Requires completion of a Master Promissory Note (one- time only) Consider an installment (payment) plan rather than a Parent (PLUS) Loan 12

13 Federal Work-Study A need-based employment program that provides on- and off-campus jobs to students. A completed FAFSA is required It is a campus-based financial aid program; funds are limited and available only at participating postsecondary institutions Priority deadlines may apply Compensation is at least the current federal minimum wage A student must earn these funds 13

14 State of Indiana Grant Programs Frank O Bannon Award Higher Education Award Freedom of Choice Award 21 st Century Scholar Other grants may be available: Some are by application See Indiana Commission for Higher Education - Division of Student Financial Aid website at 14

15 State of Indiana Grant Programs Cont. Students first entering college in Fall of 2013 or after must: Frank O Bannon recipients must complete 30 credit hours their first year, 60 credit hours their second year and 90 credit hours their third year to receive a maximum award. Students not completing the 30, 60, or 90 credit hours may receive a smaller award. They must complete 24, 48, or 72 credit hours to receive the reduced award. Freshman year incentives are available for students who earned an academic/technical honors diploma. Students must still qualify for O Bannon to receive these awards. Accelerated track incentive for students who complete 39 credit hours after the first year and 78 credit hours after their second year. Students must still qualify for O Bannon to receive these awards. 15

16 21 st Century Scholars New Requirements 21st Century Scholars first entering college in Fall of 2013 or after must: Complete 30 credit hours in their first year, 60 credit hours by the end of their second year and 90 by the end of their third year Students not meeting these milestones will lose their scholarship for the following year. They may be eligible for a reduced Frank O Bannon Grant, if they qualify. They may regain their scholarships if they meet the credit hour completion requirement in the future.

17 Maintaining Financial Aid Eligibility Commit to complete classes that you start Rate required is determined by each school Succeed by passing the classes you take Acceptable GPA is determined by each school Finish your degree within 180 credit hours Most programs of study require 120 credit hours to complete a degree and graduate 17

18 How to Apply To be considered for student aid, a student must complete all forms required by a college. Free Application for Federal Student Aid (FAFSA) Institutional Forms Other as required Note: Communicate with each college to find out what is 18 required for a complete application.

19 Free Application for Federal Student Aid (FAFSA) What is a FAFSA? It is the first step in the financial aid process. A FAFSA is used to apply for state and federal financial aid programs. In addition, some colleges use it to award institutional aid. The application is available at no fee. Three Ways to Access a FAFSA Paper FAFSA FAFSA on the Web.pdf FAFSA FED-AID

20 When to Apply for the Academic Year Important Dates FAFSA January 1, 2015 (First date to submit FAFSA) College Dates vary by college (Check with each college) State Grants Filing deadline: March 10, 2015 Correction deadline: May 15,

21 Personal Identification Number (PIN) A PIN, along with other identifiers, gives Internet access to information on the Federal Student Aid systems. Serves as an electronic signature and provides access to personal records Go to Option 1: Create a four-digit PIN Option 2: Have the site create PIN PIN is conditional until relevant information is verified with the Social Security Administration (1-3 days) PIN will not expire at the end of the year PIN Checklist Social Security Number Last Name First Name Middle Initial Date of Birth Street Address address (optional) Parents and students need a pin to use the FAFSA on the Web. 21

22 Completing the FAFSA What information is needed? Social Security Number. Be sure that it is correct. Records of income, such as income earned from work and business, child support paid or received, and any other untaxed income. If available, refer to the W-2 Forms and the Federal Income Tax Return IRS 1040, 1040A, or 1040EZ. Information about assets, such as savings, certificates of deposit, stock options, bonds, 529 plans and other college savings programs, and investment real estate, business, and farm. Driver s license number, if the student has one. Alien Registration Number, if not a U.S. citizen. NOTES: Parental information is required unless a student is at least 24 years of age or meets the criteria for filing as an independent student as described on the Free Application for Federal Student Aid. Refer to A student must report his or her income and assets and those of the parents (if a dependent student) or spouse (if married). Use income records for the year prior to the academic year for which a student is applying: for instance, if filling the FAFSA, refer to 2012 tax information. 22

23 Steps 1 and 2 (In Order of the Online of the FAFSA) Student Demographics Enter your name exactly as shown on your social security card Address The state will only communicate by this address School Selection Add the school codes of ALL the schools you are interested in attending The State of IN will calculate your state grant eligibility only for the FIRST eligible Indiana college you list on your FAFSA 23

24 Dependency Status Steps 3 and 4 Most of these questions will prompt your school to request documentation if you answer yes. Parent Demographics You will need to answer these if all the answers to the dependency questions are no. Whose Information to Report Usually the parents you physically live with, including stepparents Check with your school if you have questions. 24

25 Step 5 Financial Information Parent and Student AGI and Wages Taxes paid NOT taxes withheld Savings, Investments, Assets Other income and benefits Some of these questions actually protect your money from being counted against you. Be honest! 25

26 IRS Data Retrieval Tool How it Works 26

27 Sign and Submit Make sure your parent signs if you are dependent The parent who signs should be the parent whose household is reported Be sure your parent s name and pin match (do not put your mom s name but use your dad s pin number) Step 6 27

28 Other Things to Know Apply early Information reported on the FAFSA is confidential and is used ONLY to determine financial aid eligibility You may be asked to submit documentation to the financial aid office for verification purposes Supplemental applications or forms may be required Keep track of application DEADLINES! Keep a copy of everything you submit You must reapply every year 28

29 Avoid Scholarship Scams View with caution any service that requires you to pay! While most scholarship services are legitimate, some may be fraudulent and could charge a lot of money for little information. Report Scams Better Business Bureau High School Counselor Financial Aid Office Friends Federal Trade Commission 29

30 Trusted Web Sites Get your hands on up-to-date, accurate and trusted sources of information to learn what you need to know. In.gov/ssaci FederalStudentAid.ed.gov FAFSA.gov PIN.ed.gov Nslds.ed.gov 30

31 Contact Information Visit Tech 157 Hours Monday Thursday 8 am 6 pm Friday 8 am 4:30 pm Summer (June and July) 8 am 4:30 pm finaid@pnc.edu Phone (219)

32 Need Help? FAFSA PNC 9 am to 4 pm Saturday, February 21, 2015 Technology Building, Room 265 College Goal Sunday 2 pm to 4 pm Sunday, February 22, 2015 Technology Building, Room 265 Call (219) or finaid@pnc.edu for more information 32

33 Questions? 33