Financial Aid Financial Aid PresentationPresentation

2010-2011

Academic Year

Goals of Financial Aid

• Access to Post-Secondary Education

• Choice among Post-Secondary Institutions

Principles of Financial Aid

• Student and parent have the primary responsibility for funding post-secondary education to the extent they are able.

• Families will be treated equitably and consistently by the needs-analysis formula.

General Eligibility Requirements

• U.S. citizen or an eligible non-citizen

• High school diploma or equivalent

• Certificate, diploma, or degree program.

• Maintain satisfactory academic progress.

• Not be in default or owe refund

• Registered with the Selective Service.

Applying for Aid

• Applications & Deadline dates

• DO NOT WAIT to be accepted for admission.

• Respond quickly to additional requests.

• Explore ALL funding resources.

Application Hints

• Read all instructions carefully

• Assemble all needed materials

• Name must Match

Social Security Card

• Complete every question

• Print clearly

• Obtain all signatures or PIN #’s

Free Application for Federal Student Aid (FAFSA)

• Green & Purple

• File on line www.fafsa.ed.gov

• Request PIN www.pin.ed.gov

• Title IV College Code – Penn State 003329

FAFSA on the Web’s Homepage

Family Educational Rights and Privacy Act (FERPA)

• Financial information submitted is protected.

• Data is treated as confidential.

• Authorization for release to a third party.

How is Aid Awarded?

• Need-Based– Financial Need

• Grants

• Merit-Based– Academic Ability– Program of Study– Special Talent/Achievement

• Scholarships

What is “Financial Need”?

• Cost of Attendance

• - Expected Family Contribution

• = Financial Need

Cost of Attendance

Tuition and Fees

Room and Board

Books and Supplies

Transportation

Personal Expenses

Expected Family contribution (EFC)

• The EFC is a measure of how much the student and his or her family can be expected to contribute to the cost of the student’s education. The EFC is calculated according to a formula specified in the law.

Federal Expected Family Contribution

• Total taxed & untaxed income of family.

• Assets, savings, investments, business or farm investment, but not home equity

• Parents contribution is approx.- 12%• Students contribution is approx.- 20%

• Number of children or other dependents enrolled on at least a half time basis. Excludes parent.

Types of Aid

Gift Aid: Scholarship

Grants

Self-Help Aid:

Loans Employment

Sources of Aid• Federal

– Pell, SEOG, Perkins, Work-Study and Stafford Loans

• Institutional– Internal scholarships

• Private– Local & Civic organizations

Federal Pell Grant

• EFC determines eligibility (0-4617)• Award amount based upon enrollment & school

costs; range $488-$5350

• Verification - maybe selected by Federal Government

• Reply promptly w/additional documents

• Special Circumstances

Institutional Aid

• Grants, scholarships, loans, employment or discounts

• Institutional application

• Know deadline date

• Contact Financial Aid Office for details

Campus-Based Aid

• Federal Work Study (FWS)

• Federal Perkins Loan

• Federal Supplemental Educational Opportunity Grant (SEOG)

Federal Work Study (FWS)

• Eligibility: Undergraduates & Graduates

• Check “Yes” on FAFSA

• Hourly rate and bi-weekly payment

• Average award $3000

Federal Perkins Loan

• Eligibility: Undergraduates & Graduates

• Interest Rate: 5%

• Nine month grace period

• Deferments & Cancellation Provisions

• Average award $2200

Federal Supplemental Educational Opportunity

Grant (SEOG)

• Eligibility: Students with exceptional need

• Priority to Pell Grant Recipients

• Undergraduates only

• Average award $800

Federal Student Loan Program

• Subsidized– Federal government pays interest – Fixed Interest rate @ 4.5%

• Unsubsidized– Student pays interest or has capitalized– Fixed Interest rate @ 6.8%

Federal Loans Con’t

• Freshmen $3500/2000

• Sophomore $4500/2000

• Junior/Senior $5500/2000

• Graduates $8500/12,000

• 1-800-433-3243

• Disbursed ½ fall and ½ spring

Master Promissory Note (MPN)

• Sign MPN with PIN

• The MPN is good for 10 years

• Complete current FAFSA

Electronic Fund Transfer (EFT)

• Eliminates paper checks

• Funds direct deposit

Federal PLUS Loan

• Parents of dependent students• Interest Rate capped @ 8.5%

– Repayment 60 days after disbursement– Sign Parent Plus MPN– Apply within 60 days of school

start date

• 1-800-433-3243• www.psu.edu/studentaid

Alternative Loans

• The student is the borrower

• Various Lenders

• Interest rates vary

• Contact school for preferred lenders

Private Sources

• Service/Fraternal • Employers/Business• Churches/Religious• Source Books

– Outstanding Students of America– Financial Aid for Higher Ed– Octameron Associates

• Internet – Fastweb & PHEAAMentor

Private Sources con’t

• United States Armed Forces– United States Army Reserve– Veterans or ROTC– Money For College

• Montgomery GI Bill

– Student Loan Repayment

• Contact local recruiter for specific details

Be Scholarship Search Savy

• No Credit Card #’s

• No Fees

• No 900 #’s

Questions, Comments, Concerns