A standard form that collects demographic and financial information about the student and family Information used to calculate the Expected Family Contribution or EFC - The amount of money a student and his or her family may reasonably be expected to contribute towards the cost of the student’s education for an academic year
Know your deadlines - Since the FAFSA is used to apply for federal, state, and school funds, it must be submitted by earliest of all applicable deadlines. Many schools set application deadline dates which are earlier than federal or state deadlines Students may list up to ten schools on their online FAFSA, and need not be accepted for admission at the time of FAFSA submission. Applicants may delete and add schools by making a correction to the FAFSA. Often, a school deadline for receipt of the FAFSA occurs prior to an applicant completing their tax returns. Applicants and their families may choose to use estimated information on their FAFSA if the appropriate tax return data is not yet available. However, if an applicant chooses to use estimated data, they should correct the FAFSA, using the FAFSA-IRS Data Retrieval process, after completing their actual tax return
The FAFSA is used to determine student eligibility for many need based programs. Federal programs such as Pell Grants, work study and student loans. State Programs such as the Pennsylvania State Grant , state work study and other special programs. School Programs such as need based grants and scholarships. The FAFSA must be filed beginning on January 1 of the upcoming award year. For the 2012-2013 school year, this would be January 1, 2012. Students may list up to ten schools on their online FAFSA and need not be accepted for admission at the time of FAFSA submission. You should check with each school that you apply to and see what is their deadline date that they need you to complete the FAFSA. FAFSA on the web is the preferred and most popular method for submitting the FAFSA. Online applications are processed faster, are more accurate and are easier to correct. Only incudes basic questions due to “Skip Logic” The application is available in English and Spanish. A paper FAFSA is available in both English and Spanish. The paper process takes longer and is used by very few applicants. The FAFSA on the web worksheet can be used to gather certain pieces of information before going online to complete the actual form. This worksheet is optional and you are not required to complete it. The Free Application for Federal Student Aid on the Web (FOTW) is now completed by 99% of students applying for financial aid. Paper FAFSAs are virtually obsolete.
The web site to apply on line is www.fafsa.gov. This will default to fafsa.ed.gov. Applicants begin by click on Start Here. Be cautious, there are websites that charge students to complete the Free Application for Federal Student Aid. Fore example, www.fafsa.com. DO NOT pay any fees to file the FAFSA. Two items on the site are helpful to applicants as they prepare to file the FAFSA. The FAFSA on the web worksheet can be used to gather certain pieces of information before going online to complete the actual form. This worksheet is optional and you are not required to complete it. Applicants can also view a listing of documents needed to complete the FAFSA to ensure that you have everything that you need before starting the on-line process. Keep in mind, that on average, it takes about an hour and 15 min. to complete the on-line FAFSA.
A pin is used to electronically sign the FAFSA when filing on-line. The PIN enables an applicant to sign their application on FOTW, provides access to check on their FAFSA status, and is used to sign corrections made on FOTW. Also, the PIN is used to sign the master promissory note (MPN) for student loans and is used by students to review their federal student aid history within the National Student Loan Data System at www.nslds.ed.gov. A pin is used to electronically sign the FAFSA when filing on-line. The student needs his/her own PIN and uses the same PIN as long as they are attending school. One parent of a dependent student needs a PIN and uses the same PIN for all children attending any post secondary institution. The student and parent should go to www.pin.ed.gov to choose a pin or they may have one assigned to them. Students and parents may apply for a pin any time during the student’s senior year of high school. They may also apply for a PIN at the time of completing the FAFSA. The parent PIN allows a parent of a dependent student to sign the FAFSA electronically. It also is used by parent borrowers to sign the Direct PLUS Loan MPN. Without a pin, an applicant must print off a signature page, sign it, and mail it to the federal processor, which delays the processing by several weeks.
The CSS PROFILE is a form from College Scholarship Services. It must be submitted in addition to the FAFSA, but ONLY if a school (typically private colleges) or a scholarship organization requires it. The CSS PROFILE gathers supplemental financial and family information and is available online at www.CollegeBoard.com under students, then Pay for College. There is a $9 registration fee, plus a fee of $16 for EACH SCHOOL or scholarship organization listed on the form. A limited number of fee waivers are granted automatically to first-year, first-time citizen — or eligible non-citizen applicants — from low-income families, based on the financial information provided on the PROFILE. Contact the schools you are applying to, to see if this form is required! Some schools have their own institutional financial aid application that must be submitted in addition to the FAFSA. Information is usually available online, at a school’s web site, explaining what financial aid applications are needed to be completed by the applicant. It is the responsibility of the student to complete all required applications and return them to the school in a timely manner. Please note that often schools require separate applications for non-need based financial aid. For example, many schools have a separate application process and deadline for academic scholarships.
During the confirmation process when students complete their FAFSA online, they will be offered a link to the PA State Grant Form. PHEAA needs some additional information to confirm eligibility for a Pennsylvania State Grant and determine financial need. Students can provide PHEAA with this information by completing the PA State Grant Form online. To complete the PA State Grant Form online, students need to: Sign in or create an account with PHEAA at www.pheaa.org. (Note: this will default to www.aessuccess.org, the website for American Education Services). Provide PHEAA with additional information needed to process the PA State Grant application for consideration. Print, sign, and mail the PA State Grant Certification form to PHEAA to complete the process. If Applicants do not use the link off of the FAFSA or file using a paper FAFSA and provide a valid email address, an email will be sent from aessuccess.org. Instructions tell the student how to complete the process along with a link to the website. Students need to set up an account, complete and print the State Grant Form and mail it to PHEAA. If provided parent’s email address on the FAFSA, the parent will be copied in the email. If the student does not respond to the email by setting up an account, PHEAA will mail the State Grant Form to the student to be completed, signed and mailed back. All students should be advised to watch for messages from PHEAA/AES regarding their state grant status and encouraged to respond to any messages as soon as possible. The record must be complete before any state grant funds will be disbursed to students.
School financial aid offices typically have the earliest deadlines by which you must apply for aid. Know all of your state and school/college deadlines and file the FAFSA by the earliest deadline
the FAFSA is required in order to apply for federal student aid. The Federal Pell Grant is available to financially needy students and eligibility is based directly on the EFC. The maximum amount for 2011-12 is $5,550 per year. There are three federal programs that are called the campus based aid programs. Participating schools receive allocations of these funds to award to students with financial need. Award amounts may vary by school. The Federal Supplemental Opportunity Grant is for exceptionally need students and typically is given to students who qualify for Pell Grants. The Federal Perkins Loan Program provides loans at a fixed rate of 5 percent to students. The Federal Work Study Program provides part-time employment, usually on campus, to students with financial need.
The Teacher Education Assistance for College and Higher Ed Grant is available to students who plan to enroll in coursework required to become a teacher. In general, Participating students must annually sign an agreement to teach full-time in a high need field in a public or private elementary or secondary school that serves low-income students. - Grant is $4,000 per year but must be repaid as a loan if student fails to meet the requirements. Iraq and Afghanistan Service Grant - A student whose parent or guardian was a member of the U.S. Armed Forces and died as a result of service performed in Iraq or Afghanistan after September 11, 2001 may be eligible to receive the Iraq and Afghanistan Service Grant. Additional Student Eligibility Requirements - Must be ineligible for a Federal Pell Grant due only to having less financial need than is required to receive Pell funds, and - Be under 24 years old, or - Enrolled in college at least part-time at the time of the parent’s or guardian’s death. The grant award is equal to the amount of a maximum Pell Grant for the award year – not to exceed the cost of attendance for that award year Americorps is an opportunity for students to work and thus, earn educational awards to pay for school or to repay students loans.
The Pennsylvania State Grant program is administered by PHEAA. It provides grant funds to students with financial need. Funding is dependent upon the budget allocation from the state. A student may receive a maximum of four years of full-time state grant awards. The amount of the grant is determined, in part, by the cost of attendance at the school. Therefore, a student considering four different types of schools would be eligible for a different maximum award at each school. In general, the award maximums for different institutional types are as follows o Community College - $2,313 o State University - $3,700 o State Related - $3,978 o Private Institution - $4,348 Awards are reduced for out of state attendance.
State Work Study provides employment opportunities to students. You must be state grant eligible to participate in the program. The application and list of participating employers can be found on www.pheaa.org. SWSP was created to help the local economy while offering Pennsylvania employers a chance to assist in training future Pennsylvania employees and provide on-the-job experiences to Pennsylvania students. Students may work for a non-profit or a for-profit employer in Pennsylvania. The job will be related to a student’s major or minor field of study. Employers are reimbursed a portion of the wages paid to student employees thus encouraging their hiring. EAP -This is a state-funded program which PHEAA co-administers with the Department of Military and Veterans Affairs. It provides financial assistance for students who join the PA National Guard and commit to a six year enlistment. If the enlistment commitment is not fulfilled, the grant funds they received convert to a loan with interest. Students apply through local National Guard units and sign a Master Promissory Note (MPN). The National Guard then forwards approved applications to PHEAA for processing. Chafee Education and Training Grant Program : This is a federally funded program administered by PHEAA for the PA Department of Public Welfare (DPW). It targets children who are in foster care or who were adopted out of or discharged from foster care after the age of 16. DPW identifies eligible students – New applicants must file both the FAFSA and Chafee Education Training Grant applications. Renewal students are only required to file the FAFSA. The deadline date is June 30 of the academic year in which Chafee funds would be received. Applications are available on pheaa.org. Maximum award for 2012-13 is $2500 Blind and Deaf Beneficiary Grant - Provides awards of up to $500 per year to assist with postsecondary school expenses for blind or deaf students. Applications available on pheaa.org. The Postsecondary Educational Gratuity Program - This program is for children of PA police officers, firefighters, rescue and ambulance squad members, corrections officers and National Guard members who died in the line of duty since January 1, 1976. In addition, on November 30, 2004, an amendment was signed into law which included sheriffs and deputy sheriffs, National Guard members and certain other individuals on federal or state active military duty who died in the line of duty beginning September 11, 2001. waiver of institutional tuition, fees, room and board (minus any grant or scholarship aid received) at any PA community college, state university, or state-related institution. Students must file a FAFSA each year. For additional information and to complete an application go to pheaa.org Partnerships for Access to Higher Education (PATH): PHEAA partners with community-based PA organizations that offer grants or scholarships to eligible PA residents. A PHEAA PATH grant may match a community organization grant, thereby doubling grant aid to needy students enrolled at least half-time in a PHEAA approved postsecondary institution. The maximum award is $2,500 per year. Additional details are available at www.pheaa.org.
There are four loan programs available through the Federal Direct Loan Program. In the case of Direct Stafford subsidized loans and unsubsidized loans, the loans are made only in the name of the student. There is no credit check no cosigner requirements. Students make no principal payments while in school. In general, Repayment begins six months after the student leaves school. The interest rate is fixed on these loans. Subsidized means that the borrower has demonstrated financial need and that the federal government will not charge the student interest on the loan while they are in school. Unsubsidized means that the borrower is responsible for the interest at all times. It can be paid quarterly or capitalized and added to the total loan amount. Direct PLUS is a loan that parents borrow on behalf of the student. A credit check is required. This is a fixed rate loan. Graduate PLUS loan is a loan for students enrolled in graduate school. Student loan interest rates will rise to 6.8% in 2012 if the current rate provision expires.
This table illustrates the maximum amounts that a dependent student could borrow through the subsidized and unsubsidized direct loan program based on if they are a freshman, sophomore, junior or senior. You will note that they can borrow the least amount of money in their freshman year.
Independent students are eligible to borrow more money. As are dependent students whose parent has been denied a PLUS loan due to the credit check process.
The overall dollar amount that can be borrowed from a PLUS loan is based simply on the cost of education as determined by the financial aid office. Thus, if your school determines that your cost of education is $23,000 and you have $10,000 in financial aid in the form of grants, scholarships and loans, then the school will indicate that the maximum amount of PLUS you can apply for is the remaining $13,000. You can borrow less than the maximum. Applicants must apply for a new loan each year. These loans are available to the biological or adoptive parents of dependent students. In some cases, a stepparent may be eligible to borrow. Either parent (or both parents) may borrow on behalf of the student. There is no provision for any other person, such as a relative, to receive a PLUS loan. Credit check & endorser alternative To be eligible for a PLUS Loan, you must not have an adverse credit history, which the Department will check for when you apply for the loan. If you are found to have an adverse credit history, you may still borrow a PLUS Loan if you get an endorser who does not have such a history. An endorser is someone who agrees to repay the loan if you do not. The endorser may not be the student on whose behalf a parent obtains a PLUS Loan. Fees - In addition to interest, you pay a loan origination fee (4%) that is a percentage of the principal amount of each Direct PLUS Loan that you receive. This fee helps reduce the cost of making these low-interest loans. The fee of 4% is assessed and will be deducted from each disbursement, so the loan amount you actually receive will be less than the amount you have to repay. Repayment begins once the loan is fully disbursed. However, the parent borrower may request forbearance and make payments on the interest only during the time the student is enrolled. Beginning in 2011-2012, parents will be required to file the FAFSA in order to borrow through the PLUS Loan program.
After the FAFSA is processed, the applicant will receive a Student Aid Report (SAR). How they receive a SAR depends on whether they provided a valid email address when they submitted the FAFSA (either online/FOTW or by paper). If they completed the FAFSA online but did not provide an email address or provided an invalid email address, they will receive a SAR acknowledgment in the U.S. Mail. The applicant will need to follow the directions in the SAR acknowledgment in order to see SAR results or make corrections. If they completed a paper FAFSA and did not provide an email address or provided an invalid email address, they will receive the SAR results by U.S. Mail. To make any changes or updates, the applicant can submit corrections on the paper document. If they completed the FAFSA online or by paper and provided a valid email address, they will receive email notification that the SAR results are available online. Applicants can go online to review SAR results and make changes or updates. Applicants should carefully review their SAR, follow any directions included on it and make any necessary corrections to items on the SAR. The first page will tell the student if they are eligible for a Pell Grant and provide information concerning Direct Loans. The State grant form is an needed to complete the State grant application process. On the confirmation page of the FAFSA online is a link to complete the SGF. Additional information not collected on the FAFSA is needed to determine student’s state grant eligibility.
The EFC is a number derived from the federal formula which considers a family’s income, assets, and other factors. Because this is a federally calculated number, the EFC is the same no matter which school the student attends. The EFC formula is very much income driven. While assets must be reported in many cases, they often have little impact on the EFC.
In general, the school financial aid office calculates the students costs, subtracts the EFC and arrives at what the overall financial need is for the student. The term “financial need” means different things to different people: To the Financial Aid Office, need is defined as the cost of education minus the EFC. The resulting figure – the student’s financial need – is the student’s eligibility for need-based financial aid (grants, work study, subsidized student loans). To the family, need is sometimes defined as the cost of attendance minus all financial aid they will receive, including student loans. The resulting figure – their “gap” – is the amount they must still cover through savings, income, or additional borrowing. The family can also define need as the cost of attendance minus gift aid – the free money. This can more accurately be referred to as their ACTUAL Family Contribution, as this is the amount they ultimately must cover through savings, income, and borrowing.
The student will receive a financial aid award letter from all the schools that you made application to for financial aid and admission. Read this information very carefully. If you do not understand the information, contact the financial aid office at your school with your questions.
Since the FAFSA is a federal form used by millions of students nationwide, it is not feasible for the FAFSA process to take unusual circumstances into account. Therefore, schools have “Professional Judgment” which enables them, on a case by case basis, to make changes to the student’s FAFSA record and financial aid eligibility. This authority rests with each school; decisions made by one school do not apply to another. In addition, the Financial Aid Officer’s professional judgment applies to federal aid only. For consideration of special circumstances for PA State Grant, students must contact PHEAA directly and complete the appropriate review process At the time of filing the FAFSA, if the parents are divorced or separated, the parent is considered to be the one which the student lived with more (51% of the time or more) in the past 12 months. If parent’s divorce after the FAFSA is filed, the student needs to contact their financial aid office at their college to see how this will impact their financial aid. Reduced Income: Many families experience a change in their income, either before or after the FAFSA has been filed. It is important that they file the FAFSA based on actual data and then contact their Financial Aid Office to discuss what has changed. Likewise, anything that occurs after the FAFSA is actually filed, such as a loss of a parent’s job, death of family member, or other circumstance that impacts the family financially, should be reported to the financial aid office at the college that the student will attend. The financial aid staff may advise the student to report this change in circumstances to PHEAA’s state grant division as well.
Nov. 10, 2011 Wissahickon HS Financial Aid Night
Financial Aid 101 Paying for Postsecondary Education
3 things to take away… <ul><li>File the FAFSA </li></ul><ul><li>On Time </li></ul><ul><li>Follow up </li></ul>
What is Financial Aid? <ul><li>Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses </li></ul>
Where does the money come from? <ul><li>Federal Government </li></ul><ul><li>State Government </li></ul><ul><li>School/Colleges </li></ul><ul><li>Private Scholarship Sources: </li></ul><ul><ul><li>HS Counselors </li></ul></ul><ul><ul><li>Clubs and organizations </li></ul></ul><ul><ul><li>Employers </li></ul></ul><ul><ul><li>Internet scholarship searches </li></ul></ul>
Basis for awarding aid… <ul><li>Merit – scholarships usually based on: </li></ul><ul><ul><li>Academic or athletic ability </li></ul></ul><ul><ul><li>Special talent or achievement </li></ul></ul><ul><ul><li>Program of study </li></ul></ul><ul><li>Need-based grants, loans, and employment usually based on: </li></ul><ul><ul><li>Income </li></ul></ul><ul><ul><li>Assets </li></ul></ul><ul><ul><li>Other factors </li></ul></ul>
Purpose of the Free Application for Federal Student Aid (FAFSA) <ul><li>The FAFSA (Free Application for Federal Student Aid) is a federal form used to determine student eligibility for the following: </li></ul><ul><ul><li>Federal programs, such as Pell Grants, work-study, and student loans </li></ul></ul><ul><ul><li>State programs, such as Pennsylvania State Grant, state work-study, and other special programs </li></ul></ul><ul><ul><li>School programs, such as need-based grants and scholarships. </li></ul></ul>
When to Apply <ul><li>The FAFSA may be filed beginning on January 1 of the upcoming award year. For the 2012-13 award year this would be January 1, 2012. </li></ul><ul><li>Note that if a paper FAFSA is submitted prior to January 1 for an award year it will not be accepted. </li></ul>
Ways to apply <ul><li>Complete the FAFSA as soon as possible after January 1 of the year for which the student is seeking financial aid </li></ul><ul><ul><li>Online at www.fafsa.gov </li></ul></ul><ul><ul><ul><li>safe, secure, fast, skip logic, built in edits </li></ul></ul></ul><ul><ul><ul><li>complete FAFSA on the Web Worksheet </li></ul></ul></ul><ul><ul><ul><li>print the confirmation page when complete </li></ul></ul></ul><ul><ul><li>Paper FAFSA </li></ul></ul><ul><ul><ul><li>call 1-800-433-3243 </li></ul></ul></ul><ul><ul><ul><li>download PDF at www.fafsa.gov </li></ul></ul></ul>
Personal Identification Number (PIN) <ul><li>Website: www.pin.ed.gov </li></ul><ul><li>Sign FAFSA electronically </li></ul><ul><ul><li>Not required, but speeds processing </li></ul></ul><ul><li>Student and parent sign electronically with PIN </li></ul><ul><li>Do NOT lose it. Write it down and store in a safe place </li></ul><ul><li>Do NOT share it with anyone </li></ul>
Applying for Financial Aid <ul><li>Know what financial aid forms each school requires: </li></ul><ul><ul><li>FAFSA required by all schools, PHEAA, and some scholarship organizations </li></ul></ul><ul><ul><li>SGF (State Grant Form) required for first year students (and may be requested for subsequent years) </li></ul></ul><ul><ul><li>CSS Profile required by some postsecondary schools and scholarship organizations </li></ul></ul><ul><ul><li>Institutional financial aid forms </li></ul></ul><ul><li>Know deadlines – this is critical! </li></ul>
Online State Grant Application <ul><li>Additional questions needed to determine PA State </li></ul><ul><li>Grant eligibility </li></ul><ul><ul><li>enrollment status </li></ul></ul><ul><ul><li>value of PA 529 College Savings Program </li></ul></ul><ul><ul><li>program of study for students in vocational programs </li></ul></ul><ul><ul><li>employment status </li></ul></ul><ul><li>Link off the FAFSA Application CONFIRMATION Page! </li></ul><ul><li>Link in an email sent to student/parent from PHEAA </li></ul><ul><li>Help screens are available for all questions </li></ul>
Know your Deadlines! <ul><li>The federal deadline is the end of the award year - for 2012-2013, this would be June 30, 2013 </li></ul><ul><li>PA State Grant deadlines – </li></ul><ul><ul><li>May 1, 2012 </li></ul></ul><ul><ul><ul><li>First Time and Renewal Applicants that plan to enroll in a degree program or a college transferable program at a junior college or other college or university </li></ul></ul></ul><ul><ul><li>August 1, 2012 </li></ul></ul><ul><ul><ul><li>First Time applicants that plan to enroll in a community college; a business, trade, or technical school; a hospital school of nursing; or a 2-year program that is not transferable to another institution </li></ul></ul></ul>
Financial Aid 101 Federal, state, and school/college financial aid programs See PA Guide to Student Aid for more details
Federal Programs <ul><li>Pell Grant (2011-12 award $5500) *….must have high need </li></ul><ul><li>Campus-based aid – amounts determined by FAO </li></ul><ul><li>FSEOG………………… up to $4000 </li></ul><ul><li>Perkins loan….……….. up to $5500 </li></ul><ul><li>Federal work-study…… FAO determines </li></ul><ul><li>For most programs, student must be enrolled at least half-time. </li></ul><ul><li>* Goes to most financially needy students </li></ul>
Federal Programs <ul><li>TEACH (must meet teaching commitment) </li></ul><ul><li>Iraq and Afghanistan Service Grant </li></ul><ul><li>Americorps (for details, go to www.americorps.gov) </li></ul>
PA State Grant Program <ul><li>PA State Grant* </li></ul><ul><ul><li>Full-time, in PA…...….up to $4,348 </li></ul></ul><ul><ul><li>Part time, in PA………up to $2,174 </li></ul></ul><ul><li>Out of state….. Up to $600 in CT, DE, MA, ME, OH, RI, VT, WV, and DC </li></ul><ul><li>All other states….up to $400 (NJ, NY, and MD = $0) </li></ul><ul><li>Amount determined in part by the cost of the school </li></ul><ul><li>* Must be at least half-time to be eligible </li></ul>
Other State Programs <ul><li>State Work-Study - job related to major </li></ul><ul><li>Educational Assistance Grant (EAP) – National Guard </li></ul><ul><li>Chafee Education and Training Grant – administered by the Department of Public Welfare </li></ul><ul><li>Blind and Deaf Beneficiary Grant </li></ul><ul><li>Postsecondary Educational Gratuity Program (PEGP) </li></ul><ul><li>Partnerships for Access to Higher Education (PATH): </li></ul><ul><li>For details, see the PA Guide to Student Aid, or visit www.pheaa.org </li></ul>
Federal Direct Loan Program <ul><li>Stafford student loan: </li></ul><ul><ul><li>Subsidized = no interest in school or grace period </li></ul></ul><ul><ul><ul><li>Interest rate 7/1/11 – 6/30/12 = 3.4% </li></ul></ul></ul><ul><ul><ul><li>6.8% fixed rate beginning 7/1/12 if this rate provision expires </li></ul></ul></ul><ul><li>Unsubsidized = interest accrues in school and grace </li></ul><ul><ul><ul><li>Interest rate = 6.8% </li></ul></ul></ul><ul><li>Parent PLUS loan </li></ul><ul><ul><ul><li>Principal payment may be deferred </li></ul></ul></ul><ul><ul><ul><li>Interest rate = 7.9% </li></ul></ul></ul><ul><li>Graduate PLUS loan </li></ul><ul><ul><ul><li>Interest rate = 7.9% </li></ul></ul></ul>
Federal Direct Stafford Loan Program Borrowing Limits Dependent Students (excluding students whose parents cannot borrow PLUS) Base Stafford Loan Amount Subsidized/ Unsubsidized Additional Unsubsidized Stafford Loan Amount Freshmen $3,500 $2,000 Sophomores $4,500 $2,000 Juniors, Seniors $5,500 $2,000 Graduate or Professional $8,500 $12,000
Additional eligibility Independent Students AND students whose parents cannot borrow PLUS. Base Stafford Loan Amount Subsidized/ Unsubsidized Additional Unsubsidized Stafford Loan Amount Freshmen $3,500 $6,000 Sophomores $4,500 $6,000 Juniors, Seniors $5,500 $7000 Graduate or Professional $8,500 $12,000
Federal Direct PLUS Loan <ul><li>For parents or graduate level students </li></ul><ul><li>There is no borrowing limit on the Parent PLUS Loan </li></ul><ul><li>Education Cost minus Financial Aid equals the amount of which you can borrow </li></ul><ul><li>Credit check is required on this loan, but no debt-to-income test </li></ul><ul><li>Fees will be deducted from disbursements </li></ul><ul><li>Principal payment can be deferred while student is in school (interest will continue to accrue). </li></ul><ul><li>All loans must be repaid within 10 years </li></ul>
Financial Aid 101 Financial Aid Forms are Filed - What’s Next?
After the FAFSA <ul><li>Student Aid Report or Acknowledgment (review and make necessary corrections) </li></ul><ul><li>Information is sent to schools/colleges listed on the FAFSA, and to PHEAA </li></ul><ul><li>Complete the PA State Grant Form (SGF) </li></ul><ul><li>Family undergoes need analysis </li></ul><ul><li>Expected Family Contribution (EFC) is determined </li></ul><ul><li>Schools listed on FAFSA will send financial aid award letters upon acceptance </li></ul><ul><li>Compare award letters </li></ul><ul><li>Determine true cost of school </li></ul>
What is Need Analysis? <ul><li>A student’s financial need is determined through a process called “need analysis”. Need analysis has two components – the student’s cost of attendance at the institution attended and the student’s Expected Family Contribution (EFC). </li></ul>
Expected Family Contribution (EFC) <ul><li>The EFC is a number derived from a federal formula which considers a family’s income, assets, and other factors </li></ul><ul><li>In theory, the EFC is the amount a family can reasonably be expected to pay toward college expenses each year </li></ul><ul><li>In reality, it is not the amount a family is required to pay and it rarely is the amount a family actually pays. </li></ul>
Calculating Financial Need <ul><li>Schools/colleges receive financial aid information and calculate financial need. </li></ul><ul><li>School cost……………………. $26,000 </li></ul><ul><li>EFC…………………………….. - 3,000 </li></ul><ul><li>Financial need………………… $23,000 </li></ul><ul><li>FAO “packages” student based on financial need and available funding (varies from school to school). </li></ul><ul><li>Financial aid award letter sent to student. </li></ul>
Financial Aid Award Letter <ul><li>Is official notification from school about financial aid, terms, and conditions. </li></ul><ul><li>Lists the type and amount of each award to be received </li></ul><ul><li>Describes what must be done to accept or reject any award. </li></ul><ul><li>Discloses students rights, responsibilities, and academic requirements. </li></ul>
Special Circumstances <ul><li>Divorced or separated parents </li></ul><ul><li>Stepparents </li></ul><ul><li>Adoptive parents </li></ul><ul><li>Foster parents </li></ul><ul><li>Legal guardians </li></ul><ul><li>Living with others </li></ul><ul><li>Recent death or disability </li></ul><ul><li>Reduced income </li></ul>
Resources <ul><li>pheaa.org </li></ul><ul><li>EducationPlanner.org </li></ul><ul><li>Youcandealwithit.com </li></ul><ul><li>Myfedloan.org </li></ul><ul><li>PHEAA toll free: 1-800-692-7392 </li></ul><ul><li>Federal Student Aid Info Center – 1-800-433-3243 </li></ul><ul><li>www.fafsa.gov </li></ul><ul><li>www.federalstudentaid.ed.gov – general financial aid info </li></ul><ul><li>www.direct.ed.gov – information on federal loans </li></ul>
Contact Information <ul><li>Fran C. McKeown </li></ul><ul><li>Higher Education Access Partner – Southeast PA. </li></ul><ul><li>[email_address] </li></ul>