This document provides an overview of financial aid, including the different types (grants, scholarships, loans, employment), how to apply and qualify for aid, and factors considered in determining eligibility. It explains that financial aid aims to help students pay for college by evaluating family ability to pay and distributing limited funds equitably. The key application is the Free Application for Federal Student Aid (FAFSA), which is used to calculate the expected family contribution (EFC) and determine need-based aid eligibility. Sources of aid include federal programs like Pell Grants and Stafford Loans, state grants, and institutional grants and scholarships. Comparing complete financial aid packages from multiple schools is important for finding the most affordable option.

1. FINANCIAL AID:
The Essentials and
then some….

2. Financial Aid
 Financial Aid = Assistance for
students to fund their education in
the form of:
Grants – money that does not have to be repaid
Scholarships – money that does not have to
be repaid
Loans – money that does need to be repaid
Employment – on or off campus job

3. Goals of Financial Aid
 Primary goal is to assist students
in paying for college & is achieved
by:
Evaluating family’s ability to
pay educational costs
Distributing limited resources
in an equitable manner

4. Before you begin….
 Don’t assume that more expensive schools will
necessarily cost you more! Financial aid may
allow you to afford a school you previously did
not consider
 Involve your child in the process
 Discuss your ability to pay for college with your
child before the admission deposit deadline
 Look at this as a long term investment and not
just a one year expense

5. Merit-Based Aid
vs. Need-Based Aid
 Merit-Based Aid = aid given to students strictly on
the basis of merit. Does not have to be repaid,
usually renewable from year to year.
May be based on:
 Academic record
 Special characteristics
 Skills or talents
 Involvement in school or community
 Need-Based Aid = aid awarded to students on the
basis of financial need. Re-evaluated each year as
financial situations of a family may change.

6. Filing for Aid
Some forms you may be asked to complete:
 Free Application For Federal Student Aid (FAFSA)
 Institutional Application for Aid
 U.S. or Puerto Rico Tax Return
 W-2 forms
 College Board Profile*
 Non-custodial parent information
 Business or Farm Supplement
 Other forms as required by the school
(For certain Profile schools you may be requested to submit tax
or other institutional forms through IDOC)

7. What Is The FAFSA?
 FAFSA = Free Application For Federal Student Aid
 Application for federal and state aid
(may be application for college aid as well,
depending upon the school)
 File one FAFSA per year per student (not one
per college)
 List up to six colleges (four if filing on
paper)--Title IV Code or school name;
schools receive info. electronically
 Need to file a FAFSA each year you want to
receive aid

8. Whose Information
is on the FAFSA?
Dependent:
parental & student financial data
required
Independent:
student & spouse financial data
required

9. Conditions to determine independency
 Student must meet one of following criteria to be
considered independent:
 24 years of age
 Veteran of the U.S. Armed Forces
 Enrolled in a graduate or professional program
 Married
 Orphan or ward of the court until age 18
 Have legal dependents that student provides at least
50% support for
 At age 13 or older were both parents deceased, was
the student in foster care or a dependent/ward of the
court
 Emancipated Minor as determined by a court
 Determination that student was homeless by a
recognized authority

10. Whose Information
is on the FAFSA?
If the parents are divorced or separated….
 When filing FAFSA, financial information of
parent that student resides with for more
than half of the year should be provided
(if equal time, information of the parent
that provides the most financial support)
If the custodial parent is remarried…
 The financial data of new spouse must be
included on the FAFSA

11. How/When to
File the FAFSA?
How To Complete the FAFSA:
On-line at www.fafsa.ed.gov
Complete as soon as possible after January 1, or
file electronically at www.fafsa.ed.gov beginning
January 1 prior to the fall for which student
seeks aid
 USE THE “FAFSA ON THE WEB WORKSHEET” to
assist in the completion of the on-line FAFSA
 FAFSA is free – do not use any site that charges
a fee to complete the FAFSA

12. FAFSA On The Web
 If filing over the Internet, 2 choices:
 Parent and student mail signature page in or
 The Parent and Student both need to apply for PIN #
at www.pin.ed.gov
 PIN serves as e-signature
 PIN will be mailed or e-mailed to person who
requested the PIN
 Use PIN to submit information and make
corrections over Internet at www.pin.ed.gov
 Can request a PIN at any time – SUGGEST YOU
DO SO NOW!
 If you have a PIN from before you may use that
PIN

13. Filing The FAFSA
 Do not wait to be accepted to the school to
complete the FAFSA
 Based on prior calendar year tax
information
 May use estimated income and taxes
 PA residents will use the FAFSA for state
grant consideration; state will follow up
with an additional form once FAFSA is
complete
 MAKE COPIES OR PRINT OUTS OF EVERY
FORM!

14. Financial Need
Cost of Attendance
-Expected Family Contribution (EFC)
Financial Need

15. Financial Need
Cost of Attendance includes:
 Tuition & Fees
 Room & board
 Books & supplies
 Personal expenses
 Transportation allowance

16. What Is The EFC?
 Basis of financial aid package
 EFC is determined by a federal formula
that calculates need via the FAFSA
 EFC & Financial Need are guidelines used
by schools to determine aid package
 EFC not necessarily = to out-of-pocket
cost of family

17. How Is The EFC Calculated?
Primary Factors Looked At:
 Taxable Income: AGI (wages
earned+interest dividends+other taxable
income)
 Untaxed income & benefits
 Number in family
 Number of dependent children in college
 Assets
(FAFSA does not ask for home value or value of retirement
funds but school or Profile may ask for this information)

18. Learn more about how the EFC is
calculated
Utilize a Financial Aid Calculator to familiarize
yourself with more details and to get an early
estimate of your EFC
• Go to www.collegeboard.com and click on tab “For
Parents” and select Financial Aid Calculator from the
options on the left, then select EFC Calculator and
insert your personal information
or
• Go to www.finaid.org and click on Calculators and
select Needs Analysis

19. Institutional Methodology
Some schools may require CSS Profile Form
 Primarily private schools
 Collects supplemental data (i.e.-home equity,
financial data of non-custodial parent, value of
retirement plans, etc.)
 Calculates IM (Institutional Methodology)
 Basis for awarding institutional need-based aid
only
 Register to complete form at www.collegeboard.
com
 Fee $25 for application and 1st
school report; $16
for each additional school

20. Help! Sources of Aid
 Federal
 State
 The College/University
 Outside Organizations
 Civic organizations (ex.-local Rotary
Club), parent’s employer, high school

21. Federal Aid
 Must:
 Be a U.S. citizen or eligible non-citizen
 Have HS diploma or equivalent
 Be matriculating in a degree/certificate
program at accredited Title IV school
 Be registered with Selective Service if
a male between ages of 18 and 25
 Free of drug possession or sale
conviction

22. Federal Aid
 Pell Grant (need-based):
 $4,731 max/year for 2008-2009 year
Pell Grant recipients might also be eligible for:
 Academic Competitiveness Grant (ACG)
$750 1st
year; $1,300 2nd
year for students
who took rigorous HS curriculum
 National Science and Mathematics Access to
Retain Talent Grant (SMART)
$4,000 for 3rd
and 4th
year students in
physical, life or computer sciences, math,
technology, engineering or critical foreign
languages

23. Federal Campus-Based Aid
 SEOG Grant-exceptional need -
$100 - $4,000/year (typically have to receive Pell)
 Perkins Loan-exceptional need -
$100 - 5,500/year; 5% interest rate
 Federal Work Study
Colleges have set allocations for campus based
funds
(student may receive award from one school & not
another!)

24. Federal Stafford Loan
 In student’s name/no credit check
 Available to all students, regardless of need
 Repayment begins 6 months following graduation or withdrawal
 Competitive interest rate
 6.0% currently; 5.6% effective July 1, 2009 for subsidized;
6.8% for unsubsidized
 Interest rate reset each July 1st
 Amount varies by class
$3,500 for freshman
$4,500 for second year students
$5,500 for third year and beyond (undergrads)
Additional $2,000 unsubsidized in addition to the above amount is
effective May, 2008

25. Federal
PLUS Loan
 Loan in parent’s name
 8.5% Interest Rate
 Repayment begins 60 days after 2nd
disbursement; deferments are now available
 Credit check involved
 Borrow up to cost of attendance minus other
financial aid student is receiving
 Add’l. unsub available to students whose
parent(s) are denied on PLUS Loan due to
poor credit

26. State
 Pennsylvania State Grant (for PA Residents):
$4,700 max/year for 2008-09 for students
attending a PA school; however funding did not
allow a max grant of $4,700
 Eligibility based on need and family’s unique circumstances
 Max PHEAA Grant that can transfer out-of-state, $600, to:
CT, DE, MA, ME, OH, RI, VT, DC, WV
 $400 maximum transfers to other states, except NJ, MD
and NY--$0 transfers there (some exceptions)
 Student must file FAFSA by May 1 for upcoming fall term
 PHEAA sends student status notice beginning mid-May;
student must complete and return to PHEAA
 Check www.pheaa.org for other grant programs

27. College/University
 Colleges may offer significant amount of funds to
assist students
 Factors that may influence institutional aid,
particularly merit-based aid:
Academics Athletic Ability*
SAT’s Geographic Diversity
AP Courses Legacy (child of alumni
Activities Academic Track
Talent H.S. Attended
Class Rank
*Athletic awards only offered by NCAA Division I and Division II
schools only.

28. College/University
Investigate Sources of Aid
 Determine deadlines and criteria for eligibility
for each school
 College may be the largest funding source
 Complete college/university application for aid
 Private schools may require CSS Profile (fee charged-
$25 to register & provide data to first school; $16 for
each additional college or program); register at
www.collegeboard.com

29. Outside Sources
 Private sources of scholarship funds include:
 Service/Fraternal Organizations
 Employers/Business
 Churches/Religious Groups
 Sources of Information
 Internet: www.pasfaa.org, www.Nasfaa.org,
www.finaid.org
 Books: Peterson’s Guide, Barron’s Guide to
Colleges, “Don’t Miss Out” (Octameron Assoc.)
 Guidance Office Computer Programs

30. Comparing Aid Offers
School A School B School C School D
COST $8500 $18000 $23000 $45000
EFC $2000 $2000 $2000 $2000
NEED $6500 $16000 $21000 $43000
PELL Grant $2360 $2360 $2360 $2360
SEOG Grant $0 $0 $2000 $3000
PA State Grant $1900 $4000 $4700 $4700
Perkins Loan $0 $2000 $2000 $3000
Work Study $0 $1000 $1500 $2500
Stafford Loan -
Subsidized
$2240 $3500 $3500 $3500
Institutional Grant $0 $0 $4500 $20000
Unmet Need $0 $3140 $440 $3940

31. Comparing Aid Offers
School A School B School C School D
COST $8500 $18000 $23000 $45000
EFC $12000 $12000 $12000 $12000
NEED $0 $6000 $11000 $33000
PELL Grant $0 $0 $0 $0
SEOG Grant $0 $0 $0 $0
PA State Grant $0 $600 $1100 $1400
Perkins Loan $0 $0 $2000 $2000
Work Study $0 $0 $1500 $2500
Stafford Loan -
Subsidized
$0 $3500 $3500 $3500
Institutional Grant $0 $1900 $2000 $21000
Unmet Need $0 $0 $900 $2600

32. Comparing Aid Offers
 Will the aid package change if outside scholarships are
received?
 What factors can cause changes to my eligibility in the future?
(i.e.- how will my package change if there is a change in the
number in college, what if my income increases)
 Is there room for movement in my financial aid award?
 Look at the Bottom line for each school carefully comparing
grants, loans and work opportunities as well as merit versus
need based programs
 Consider possible changes in your family situation over the next
four years & consider how that can affect your ability to pay not
only in the next four years but over the years all your children
are in college

33. Don’t Forget!
 Research Outside Scholarships
(see www.pasfaa.org or finaid.org for websites)
 Complete the FAFSA form as soon as possible after January 1
of senior year
 Remember to keep copies of every financial aid form that you
complete!
 Check with each college/university to see what additional
forms they require
 Don’t be afraid to call the financial aid office at the school(s)
you are interested in!
GOOD LUCK!