2. Topics We Will Discuss
What is financial aid
Cost of attendance (COA)
Expected Family Contribution (EFC)
What is financial need
Categories, types, and sources of financial
aid
3. What is Financial Aid
Financial aid is funds provided to
students and families to help pay for
postsecondary educational expenses.
4. What is Cost of Attendance (COA)
• Direct costs
– (Tuition, Fees, Room & Board)
• Indirect costs
– (Books, Transportation, Supplies)
• Varies widely from college to college
5. What is the Expected Family Contribution
(EFC)
Is the number that is used to determine your
eligibility for federal student financial aid.
(Amount family can reasonably be expected to contribute>)
Calculated using data from the Free
Application for Federal Student Aid (FAFSA)
and a federal formula
Two components
– Parent contribution
– Student contribution
Stays the same regardless of college
6. What is Financial Need?
Cost of Attendance (COA)
– Expected Family Contribution (EFC)
= Financial Need
Example:
$20,000 (COA)
2,000 (EFC)
$18,000 (Financial Need)
7. Categories of Financial Aid
Need-based
Non-need-based
Types of Financial Aid
Scholarships
Grants
Loans
Employment
8. Scholarships
Money that does not have to be paid back
Awarded on the basis of merit, skill, or unique
characteristic
Grants
Money that does not have to be paid back
Usually awarded on the basis of financial need
9. Loans
Money students and parents borrow to help pay college
expenses
Repayment usually begins after education is finished
Only borrow what is really needed
Employment
Allows student to earn money to help pay educational costs
A paycheck; or
Non-monetary compensation, such as room and board
10. Sources of Financial Aid
• Federal Government
• Private Sources
• Civic/Social Organizations and Churches
• Employers
11. Federal Government
• Largest source of financial aid
• Aid awarded primarily on the basis of
financial need
• Must apply every year using the Free
Application for Federal Student Aid (FAFSA)
12. Common Federal Aid Programs
Federal Pell Grant Federal Perkins Loan
Teacher Education Federal Work-Study
Assistance for College
and Higher Education Stafford Loans
Grant (TEACH Grant)
Plus Loans
Federal Supplemental
Educational
Opportunity Grant
(FSEOG)
13. Common Federal Aid Programs
Example: first-year student in 2011-12 (Maximum amounts allowed)
Federal Pell Grant: $5,500
Academic Competitiveness Grant: $750
TEACH Grant: $4,000
Federal Stafford Loan: $5,500
Federal Perkins Loan: $5,500
Federal Supplemental Educational Opportunity Grant: (FSEOG) $4,000
Federal Work-Study: depends on funds available at school
Federal PLUS Loan (for parents): COA minus other aid received
14. Pennsylvania Higher Education
Assistance Agency (PHEAA)
Requires Pennsylvania Residency
Award aid on the basis of both financial need and
merit
Use information from the FAFSA
Deadline for PA State Grant Application is May 1st for
State Grant recipients and all non 2011-12 grant
recipients in degree programs. All other applicants
August 1st.
15. Private Sources
Foundations, businesses, charitable organizations
Civic/Social Organizations and Churches
Employers
o Deadlines and application procedures will vary
o Begin researching private aid sources early
o Research what is available in the community
o Companies may have scholarships available to the
children of employees
16. Web Resources
Federal Programs
o www.studentaid.ed.gov
o www.fafsa.gov
o www.fafsa4caster.ed.gov
PA State Programs
o www.pheaa.org
o www.educationplanner.org
Private
o www.mystudentedge.com
o www.blackexcel.org/100minority.htm
After completing a scholarship search, students are presented with the results, where they can view scholarship profiles and add scholarships of interest to a saved list. Students may also further refine their results based on a variety of factors: Keyword Requirements Deadline Minimum number awarded Minimum award amount
A page in the career assessment, which matches students with career types based on their interests
A page in the career assessment, which matches students with career types based on their interests