Student Financial Aid David P. Pearlman D. Ed Director of Student Aid @ Penn State Altoona Shannon Hawkins Assistant Director of Student Aid @ Penn State Altoona
What will you consider when looking at a college?
College Selection Process Size Location Reputation Academic Programs Extracurricular Activities Cost
collegecost.ed.gov Net Price Calculator Center Shopping Sheet College Scorecard
Why is your student going to college?
Meet friends Participate in co-curricular activities To learn To get a job
Student Financial Aid An Investment in education!!
Sources of Financial Aid Federal Government Lenders (Banks) State Government Outside Agencies The Institution
How do you apply for financial aid? FAFSA CSS profile Scholarship Applications Any additional forms at the college
The Purpose of the FAFSA The FAFSA (Free Application for Federal Student Aid) is a federal form used to determine student eligibility for the following: Federal programs - Pell Grants, campus based aid and student loans State programs - Pennsylvania State Grant, State Work-Study, and other special programs School programs - need-based grants and scholarships
fafsa.gov Request FSA ID prior to completing the FAFSA (for BOTH Student AND Parent) Complete FAFSA on-line
Benefits to Applying Online Filing the FAFSA electronically is the best way to apply. There are many benefits for online filers: Faster turnaround Online help Built-in edits Built-in skip logic Simplified renewal IRS Data Retrieval Tool Link to the State Grant Form
When to Apply Beginning January 1 of their senior year for 2016-17. Deadlines vary from school to school; Many are earlier than the May 1 deadline for the PA State Grant. Students must determine the earliest applicable deadline. Students need not be accepted for admission. Students may list up to 10 schools on the initial online FAFSA and add or delete schools later. Postsecondary schools will not see other schools listed, just their own. Families can file estimated income information and update it later using the IRS Data Retrieval Tool (DRT).
IRS Data Retrieval Tool (DRT) Allows transfer of federal tax data directly into their FAFSA. 2 weeks after electronically filing federal tax return 8 weeks after filing a paper federal tax return If estimated income is used to complete the FAFSA, students/parents can go back once taxes are filed and use the IRS DRT.
State Grant Form/Account Access
PHEAA Account Access
Student Aid Summary Total Aid Estimated Direct Bill Expenses Estimated Non- Billable Expenses Total Estimated Cost
Types of Financial Aid Gift Aid Grants Scholarships Self-Help Aid Federal Work-Study Loans
PA State Grant Awards 2015-16 College Cost tiers and Full-Time Awards: $0 to $12,000=$2,308 $12,001 to $19,000= $3,692 $19,001 to $29,000= $3,970 $29,001 to $32,000= $4,340 Half-Time Awards: Maximum half time award is one half of the full time award.
Federal Pell Grant Maximum award for 2015-2016 is $5,775; maximum EFC for eligibility is 5198 Students can monitor through NSLDS at nslds.ed.gov
Campus Based Federal Programs SEOG- Supplemental Educational Opportunity Grant Federal Perkins Loan Expired September 30, 2015 No new awards Federal Work Study
Scholarships Financial Aid Office Academic Departments Outside Agencies www.fastweb.com www.collegeboard.com Community Businesses and Organizations
Federal Work-Study FAFSA required On-campus Off-campus America Reads Not deducted from semester bill Funds earned as a paycheck throughout the semester
Loans Stafford Loan Subsidized Unsubsidized Parent PLUS Loan May be able to defer while student is enrolled Alternative Loans FAFSA NOT required Credit check required Co-signer may be required May be able to defer while student is enrolled Be careful of interest rates!!!
Undergraduate Loan Limits Grade Level Base Amount Add l Unsub Total Loan 1st Year $ 3,500 $ 2,000 $ 5,500 2 nd Year $ 4,500 $ 2,000 $ 6,500 3 rd & 4 th Year $ 5,500 $ 2,000 $ 7,500
Undergraduate Loan Interest Rates Interest Rates for 2015-16 Stafford Undergraduate 4.29% (subsidized and unsubsidized) PLUS Loans 6.84% (for parents)
Managing Loan Debt Only borrow what you NEED! Cut costs where you can If you need to borrow Stafford and Perkins/University Loans first PLUS is better than alternative loans Alternative Loans can be dangerous!
MySmartBorrowing.org Interactive online tool to assist students with making informed choices about post secondary education
Repayment OPTIONS Always work with your lender if you have difficulty paying on your loans! Deferment when your loan payments are suspended, usually without interest building Forbearance- temporary suspension of loan payments while interest builds
Renewal Process Maintain academic progress Submit FAFSA every year
What you should know about your student s financial aid What type(s) of financial aid do they have? Do these aid types have specific requirements such as GPA or employment applications? What type of aid has to be repaid? When does repayment begin? What is the renewal process for these aid types?
Strategies for Financing a College Education Careful Budgeting Savings Employment Payment Plans
PHEAA Online Resources PHEAA.org EducationPlanner.org MySmartBorrowing.org YouCanDealWithIt.com Facebook.com/pheaa.aid
Changes for 2017-18 FAFSA Two major changes to the FAFSA will take effect for the 2017-18 school year: The FAFSA will be available earlier. Students will be able to file a 2017-18 FAFSA as early as October 1, 2016, rather than beginning on January 1, 2017. The FAFSA will collect income information from the earlier tax year Prior Prior Year (PPY) income. Families will file the 2017-18 FAFSA using 2015 tax information.
When do you file the FAFSA and which tax documents do you use? When a Student is Attending College (School Year) When a Student Can Submit a FAFSA Which Tax Information is Required July 1, 2015 June 30, 2016 After January 1, 2015 2014 July 1, 2016 June 30, 2017 After January 1, 2016 2015 July 1, 2017 June 30, 2018 After October 1, 2016 2015 July 1, 2018 June 30, 2019 After October 1, 2017 2016 July 1, 2019 June 30, 2020 After October 1, 2018 2017
Questions??
Contact Info School Specific Contact your school Financial Aid Office PHEAA State Grant 1-800-233-0557 Federal Direct Student Loans 1-800-557-7394