Academic Year Jessica Petrie Financial Aid Coordinator Penn State York

Transcription

1 Academic Year Jessica Petrie Financial Aid Coordinator Penn State York

2 Financial Aid consists of funds provided to students and families to help pay for postsecondary educational expenses Students and parents have the primary responsibility for funding post secondary education to the extent they are able

3 Federal Government 10% State Government - 34% Family 50% Justin Draeger, NASFAA, 2013

4 Direct Costs Indirect Costs Direct and indirect costs = Cost of Attendance

5 Dear Mom and Dad, $chool i$ really great. I am making lot$ of friend$ and $tudying very hard. With all my $tuff, I $imply can t think of anything I need, $o if you would like, you can ju$t $end me a card, a$ I would love to hear from you. Love, Your $on

6 Dear Son, We know that astronomy, economics, and oceanography are enough to keep even an honor student busy. Do NOt forget that the pursuit of knowledge is NOble task, and you can never study enough. Love, Mom and Dad

7 Financial Aid Timeline

8 Money that does not have to be paid back Awarded on the basis of merit, skill or unique characteristic Small scholarships add up!

9 Foundations, businesses, charitable organizations Begin researching early and research what is available in the community Pay attention to deadlines and application procedures

10 Companies may have scholarships available to children of employees Companies may have educational benefits for their employees

11 One fourth of scholarship donors look up an applicants online presence Google Facebook You Tube Twitter One Third of donors denied application based on an applicants online presence! FastWeb.com

12 Financial Aid Timeline

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14 A standard form that collects demographic and financial information about the student and family Available in English and Spanish FAFSA Forecaster

15 Amount family can reasonably be expected to contribute Stays the same regardless of college Calculated from data provided on FAFSA Colleges use EFC to award financial aid

16 Penn State filing deadline MARCH 1 Pennsylvania filing deadline MAY 1

17 FAFSA is FREE!

18 Sign FAFSA with a Federal PIN number PIN number stays the same PIN also used to sign Stafford and PLUS loans

19 What if I m not sure I ll attend college? Will I need to complete my tax return before completing the FAFSA? What if I don t have a Social Security number or don t want to report it on the FAFSA? What is the IRS Data match?

20 While completing FOTW, 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 Applicant chooses whether or not to transfer data to FOTW

21 Social Security Numbers Divorced/remarried parental information Who provides more than ½ support Untaxed income U.S. Income tax paid Household size/ number in college Real estate and investment net worth

22 Results sent to schools listed Results ed to student if address provided SAR Acknowledgement Review your results for accuracy Update estimated information Schools may require additional documentation *Penn State School Code

23 Change in employment status Medical expenses not covered by insurance Change in parent marital status Unusual dependent care expenses Student can not obtain parent information Contact your financial aid office

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25 Lists the sources of aid you are eligible to receive based on the info from the FAFSA Estimated award amounts and nonnegotiable

26 Scholarships Grants Loans Employment

27 Money that does not have to be paid back Usually awarded on the basis of financial need

28 Federal PELL Grant Federal Supplemental Educational Opportunity Grant (FSEOG) Teacher Education Assistance for College and Higher Education Grant (TEACH) Iraq and Afghanistan Service Grant (IASG) PA State Grant

29 State Grant Status notice Account Access CHAFEE Education and Training Grant Program

30 Get a job on campus or in the community Hourly rate must be at least minimum wage Can be Federal, State or sponsored by Veterans Affairs

31 Money students and parents borrow to help pay college expenses Repayment usually begins after education is finished Only borrow what is really needed Look at loans as an investment in the future

32 The median four-year college graduate who enrolls at age 18 and graduates in four years can expect to earn enough by age 36 to compensate for being out of the labor force for four years and for borrowing the full tuition and fee amount without any grant aid Education Pays,

33 Federal Loans Available to students Borrowed from the government Offer low fixed interest rates Offer different repayment plans including deferment and forbearance Repayment does not begin until after a student leaves school Guaranteed loans for students

34 Subsidized vs. Unsubsidized 3.86% Bipartisan Student Loan Certainty Act of 2013 Rate is based on the US Treasury bill Most students are eligible for both

35 Parent PLUS loan 6.41% Credit based

36 Private loans Available to students Borrowed from a bank Interest rates are variable Credit based loans, most students require a cosigner

37 Know what you are getting into Do your research Understand the types of student loans Do not borrow more than you need Make a plan for repayment Consider paying interest while in school Don t get yourself into further debt

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39 Federal Direct Stafford Loan and Parent PLUS Loan Must complete Master Promissory Note Must complete Entrance Counseling Students only

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41 Filling the gap that financial aid does not cover Parent PLUS Loan Private Loan Cash payments (including 529 Plans)

42 Financial Aid payments from outside sources Bursar s Office Payments out of pocket PA 529 plans Deferred payment plans

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