This document provides an overview of financial aid for postsecondary education. It defines key terms like financial aid, cost of attendance, expected family contribution, and financial need. It outlines the main categories and types of financial aid including scholarships, grants, loans, and employment. It discusses the major sources of financial aid like the federal government, state agencies, private organizations, and employers. It provides examples of common federal and state financial aid programs and recommends resources for researching financial aid options.

1. The Road Map To Higher
Learning

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

17. Thank you !
Anthony R. Johnson, M.S.