Office of Admissions and Financial Aid. Financial Aid: Your Keys to Success

Transcription

1 Financial Aid: Your Keys to Success Spring 2010

2 Financial Aid Saving and draining: be aware What is financial aid? Types and sources of financial aid Completing the FAFSA Calculating financial aid eligibility Financial aid award notifications Other important terms Things to think about Questions

3 Be smart and save Don t spend all of your graduation money Put aside money for planned and unplanned expenses $20 per week x 52 weeks = $1,040 Work over the summer and save your earnings

4 Don t throw money down the drain 1. Coffee 5 coffees x $5 each x 52 weeks = $1,300 per year 2. Weekday lunches out $6 lunch x 260 work days per year = $1560 per year 3. Bottled water 1 bottle per day x $1.50 each x 365 days = $ per year 4. Vending machine snacks 1 candy bar x $1 each x 5 days a week x 52 weeks = $260 per year

5 What is Financial Aid? Funds provided to students and families to help pay for higher education expenses Scholarships, grants, gifts from family & friends, employers, loans, 529 plans, home equity loans, etc. Financial aid is more than just free money.

6 Types of Financial Aid Gift Aid Grants Scholarships Self-Help Aid Student Employment Loans

7 Gift Aid: Grants Typically need-based Federal Grants Pell Federal SEOG Grant (exceptional need) State Grants PHEAA in Pennsylvania Reciprocal States DE, DC, MA, OH, VT, WV

8 Gift Aid: Scholarships Typically merit-based University of Pittsburgh (Admissions) Automatic consideration (apply by December 15 th ) Departmental Scholarships External Scholarships

9 Self-Help Aid Student Employment Federal Work-Study Student Employment Education Loans Federal Direct Student Loan (Subsidized/Unsubsidized) Federal Direct Parent PLUS Loan Private Education Loans

10 Additional Resources 529 Savings Plans Gifts from family Home equity line of credit Savings plans - Upromise Payment plans offered by the schools

11 Federal Student Aid ID (FSA ID) Sign FAFSA electronically at fsaid.ed.gov May be used by students and parents throughout aid process, including subsequent school year Only the owner should create a FSA ID

12 Completing the FAFSA FAFSA = FREE Application for Federal Student Aid Complete online at fafsa.gov School Code: NEW! Begin filing October 1, 2016 Use 2015 tax data Pitt s Priority Filing Date: March 1

13 Completing the FAFSA Using the IRS Data Retrieval Tool (DRT) While completing the FAFSA, applicant may submit real-time request to IRS for tax data IRS will authenticate taxpayer s identity If match found, IRS sends real-time results to applicant in new browser window Reduces documents requested by Financial Aid

14 Expected Family Contribution (EFC) Generated as part of completing the Free Application for Federal Student Aid (FAFSA) A calculated estimate that a family can contribute to the student s education in a given year. Formula created by the U.S. Department of Education Used to determine financial aid eligibility Types of information used to calculate EFC: income, assets, # in college, # in household, etc. *EFC the same regardless of college attended*

15 Financial Aid Cost of Attendance (COA) Direct Costs Tuition and Fees Room and Board (dorm, off-campus, commuter) Indirect Costs Books and Supplies Transportation Allowance Living Allowance (if staying off campus) *Varies widely from college to college*

16 Financial Need (Federal Formula) Cost of Attendance (COA) Expected Family Contribution (EFC) = Financial Need

17 Financial Need (Federal Formula) State School (PA Resident) University of Pittsburgh (PA Resident) Private College Cost of Attendance $24,500 $33,000 $48,000 EFC $4,000 $4,000 $4,000 Financial Need $20,500 $29,000 $44,000

18 Financial Aid Award Notification State School (PA Resident) University of Pittsburgh (PA Resident) Private College Cost of Attendance $24,500 $33,000 $48,000 Aid Offered $10,395 $18,295 $25,295 Remaining Costs $14,105 $14,705 $22,705

19 Financial Aid Award Notification my.pitt.edu Primary means of communication with students Paper Award Notification (freshman year only) Electronic Award Notification

20 Other Important Terms Verification Satisfactory Academic Progress (SAP)

21 Things to Think About Budget borrow only what you need! Pay the interest on Unsubsidized Loans while in college Never give out your SSN Memorize your Student ID Get your parents involved tag team effort Don t apply for credit cards for the free gift Due dates and deadlines

22 Financial Aid Websites FAFSA FSA ID PHEAA IRS LOANS fafsa.gov fsaid.ed.gov pheaa.org irs.gov studentloans.gov

23 Questions?