countdown to college student financial aid

Countdown to CollegeStudent Financial Aid

First Step

Scholarship Web Site

www.ufo.psu.edu

GreatTips

Private Scholarships Be prepared.

Start early.

Don't pay.

Be persistent.

Good Site

- College

Boardhttp://www.psu.edu/studentaid/scholarships/priv_searches.shtml?

reload

Begin To Gather Income Data •Copy of Parent & Student 2010 Federal Tax Return •Investment Information•All Untaxed Income

Documents•Find Social Security Cards

Scholarship Information Session

Wednesday November 7th from 6:00 p.m. to 7:30 p.m. at the Penn State Greater Allegheny campus. All are welcome.

Learn how to write scholarship essays & conduct internet searches for private scholarships.

Begin To Gather Income Data •Copy of Parent & Student 2011 Federal Tax Return •Investment Information•All Untaxed Income

Documents•Find Social Security Cards

Begin To Gather Income Data •Remember that the FAFSA will eventually need to be updated with the latest tax return - 2012

•For academic year 2013-14 the base tax year is 2012

Main Document FAFSA

Free Application For Federal Student Aid

www.FAFSA.gov

What Does The FAFSA Do•Application For All Federal & State Aid •Determines Expected Family Contribution (EFC)•Uses Federal Formula

What Does The FAFSA Do•Stays The Same Regardless Of College •Two Components• Parent Contribution•Student Contribution•Establishes “Financial Need”

What Makes COA?•Tuition $12,242 (Billable)•Fees $860 (Billable)•Room & Board $9,100 (Billable)•Books $1,920 (Non-Billable)•Transportation $828 (Non-Billable)•Miscellaneous $3,222 (Non-Billable)•_____________________________________•Total $28,172 / year

What Is Financial Need?

Cost of Attendance (Varies College to College)

– Expected Family Contribution (EFC)

_______________________________________________________________________

= Financial Need

What Is Financial Need?

COA ($28,172)

– EFC ($3,000)_______________________________________________________________________

= Need ($25,172)

What Is Financial Need?

COA ($9,000)

– EFC ($3,000)_______________________________________________________________________

= Need ($6,000)

Categories Of Financial Aid •Need Based Aid• Federal Pell Grant• PHEAA State Grant• Supplemental Educational Opportunity Grant

(SEOG)• College Work Study• Perkins Loan• Stafford Subsidized Loan (Student Fr max =

$3500)

Categories Of Financial Aid •Non-Need Based Aid• Stafford Un-Subsidized Loan (Student Fr. Max =

$2000)• PLUS Loan (Parent)

Stafford Loans•Stafford Subsidized Loan • Borrower Is The Student • Max Loan Is $3500/year• Principal & Interest Deferred – Until Graduation• Interest Rate is 3.4%

Stafford Loans•Stafford Un-Subsidized Loan • Borrower Is The Student • Max Loan Is $2000/year• Principal Deferred – Until Graduation• Interest Paid While In School• Can Be Deferred (Interest Added To Principal)• Interest Rate is 6.8%

Stafford Loans•Total Sub & Un-sub Never Be Greater Than $5500/year.•Stafford Sub Not Awarded Can Become Un-Sub Loan

•Examples Of Awards Per Year• $3500 Sub / $2000 Un-sub• $0 Sub / $5500 Un-sub• $1000 Sub / $4500 Un-Sub

Financial Aid PackagingFall SpringTotal

•Pell Grant $1300 $1300$2600

•PHEAA Grant $1989 $1989$3978

•SEOG $600 $600 $1200

•Outside Scholarship $1000 $1000$2000

•Stafford Subsidized $1750 $1750$3500

•Stafford Un-Subsidized $1000 $1000$2000

_________________________________________________•Total Aid = $7639 $7639

$15,278

Your Bill (Charges) •Tuition $6,121 (Billable)•Fees $430 (Billable)•Room & Board $4,550 (Billable)_____________________________________•Total $11,101 / semester

What You OweTotal

•Billable Cost = $11,101/year•Total Aid = $7,639/year_______________________________•What You Owe = $3,462 / semester

Next - PLUS Loan

•Parent Is Borrower•Fixed Rate Of 7.9%•Parent May Borrow Up To Cost Of Education•Loan Forgiven In Case Of Death Or Disability Of Parent Or Student•Awards If Approved Or Rejected•Delayed Repayment Options Offered

PLUS Loan Credit Criteria•Bankruptcy (Chapters 7,11 or 12 Within Past 5 Years) Policy Does Not Consider Chapter 13 Adverse•Voluntary Surrender Within last 5 Years•Repossession Within Last 5 Years•Foreclosure Proceedings Started or Within Last 5 Years•Deed In Lieu of Foreclosure

PLUS Loan Credit Criteria•Accounts Currently 90 Days or More Delinquent (Accounts Reported as 90 Days Delinquent Which Are Over 5 Years Old Since Last Reported Are Not Considered Adverse)•Wage Garnishment Within Last 5 Years•Defaulted Loan That Has been Claimed Paid•Lease or Contract on Secured Real Estate•County/State/Federal Tax Lien Within Past 5 Years

If PLUS Is Rejected•School Automatically Awards $4000 Stafford

Unsubsidized Loan ($2000/semester)•If You Need More Than $4000•File PLUS With An Endorser (www.studentloans.gov)

•Remember if your PLUS is approved with the endorser, the added $4000 Stafford unsubsidized will be removed.

Personal Identification Number (PIN)

•Must Be Used By Student & Parents Throughout Aid Process (Entire College Career) •Used To Sign FAFSA, MPN & Access Federal Sites•Can Request PIN Now•Name & SSN Must Match Social Security Card

EXACTLY•Web: www.pin.ed.gov

Personal Identification Number (PIN)

•Must Be Used By Student & Parents Throughout Aid Process (Entire College Career) •Used To Sign FAFSA, MPN & Access Federal Sites•Can Request PIN Now•Web: www.pin.ed.gov

FAFSA Overview•Available January 1, 2013 •Web: www.FAFSA.gov•Colleges May Set Filing Deadlines•Application For Pennsylvania State Grant (PHEAA) •Can Make Changes/Corrections Any Time •Don’t Be Late •Add Parent Email Address To FAFSA

Common FAFSA Errors•SSN & Name Do Not Match Social Security Card•Missing Student Or Parent Signature (PIN)•Incorrect School Code•Drug Question Left Blank•Checking Legal Guardian•Missing Parent Data•“Do You Have A Degree?” ….No

PLUS Loan Credit Criteria•Accounts Currently 90 Days or More Delinquent (Accounts Reported as 90 Days Delinquent Which Are Over 5 Years Old Since Last Reported Are Not Considered Adverse)•Wage Garnishment Within Last 5 Years•Defaulted Loan That Has been Claimed Paid•Lease or Contract on Secured Real Estate•County/State/Federal Tax Lien Within Past 5 Years

PLUS Loan Credit Criteria•Accounts Currently 90 Days or More Delinquent (Accounts Reported as 90 Days Delinquent Which Are Over 5 Years Old Since Last Reported Are Not Considered Adverse)•Wage Garnishment Within Last 5 Years•Defaulted Loan That Has been Claimed Paid•Lease or Contract on Secured Real Estate•County/State/Federal Tax Lien Within Past 5 Years

Once FAFSA Is Processed•School Will Contact Student Showing Aid Package Or Instruction For Accessing Information•Remember You Can Not Compare Packages•Complete All School Requests ASAP

Additional Details•Total COA = $14,086 $14,086$28,172•Total EFC = $1500 $1500

$3000•Need = $12,586 $12586$15,278•Total Aid = $7639 $7639

$15,278•Un-Meet Need = $4947 $4947

$9894

•EFC + Aid + Un-Meet Need = COA•$1500 + 7639 + 4947 = $14,086

Financial Aid OverviewUsing Billable Cost

Fall SpringTotal

•Billable Cost = $11,101 $11,101$22,202•Total Aid = $7639 $7639

$15,278•Un-Meet Billable = $3462 $3462

$6924

Bob Heyl

Student Aid OfficerPenn State Greater Alleghenyrwh23@psu.edu