WELCOME TO

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WELCOME TO

• INDIANA HIGH SCHOOL
• FINANCIAL AID NIGHT
• January 10, 2013

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What is Financial Aid?

• Grants
• Loans
• Employment Opportunities
• Scholarships

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Sources of Financial Aid

• Federal
• State
• Institutional Funds
• Private

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Federal Pell Grant Program

• Awarded to eligible undergraduates pursuing first
  baccalaureate degree and certain students
  enrolled in post-baccalaureate teacher
  certification or licensing programs
• Portable
• Annual award amounts (for 2012-13)
• 555 minimum
• 5,550 maximum
• Deadline June 30, 2014

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Federal Supplemental Educational Opportunity
Grant (FSEOG)

• Eligible students
• Undergraduates pursuing first baccalaureate
  degree
• Awarded first to students with exceptional
  financial need (i.e., students with the lowest
  EFCs at that school)
• Priority to Federal Pell Grant recipients
• Annual award amounts
• 100 minimum
• 4,000 maximum
• Deadline established by school

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Teacher Education Assistance for College and
Higher Education (TEACH) Grant

• 3.25 GPA or qualifying score on admissions test
• Agree to teach full time for at least 4 years
  within 8 years of graduation at a school serving
  a high percentage of lower income students (Title
  I schools) in specific subjects
• 4,000 annual maximum, up to a 16,000
  undergraduate aggregate
• Will convert to unsubsidized Direct Stafford Loan
  if teaching requirements not fulfilled

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Pennsylvania State Grant

• Administered by Pennsylvania Higher Education
  Assistance Agency (PHEAA)
• 1-800-692-7392
• PHEAA-approved program must be at least two
  academic years in length
• Maximum award for 2012-13
• 4,348 - based on institutions total allowable
  education costs
• For undergraduates only
• Non-portable with MD, NJ, NY

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Federal Work-Study

• Based on financial need
• Employment may be on or off campus
• Deadline established by school
• Paid _at_ least once a month -_at_ least min. wage
• Eligible employers
• School
• Federal, state, or local public agency
• Private non-profit organization
• For-profit organization

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Federal Perkins Loan

• Eligible students
• Undergraduate or graduate students
• Priority to exceptional need
• Maximum loan limits
• 4,000 undergraduate students per year
• Cumulative limit of 20,000
• Interest rate 5

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Federal Perkins Loan (continued)

• Deadline established by school
• Nine-month grace period
• Repayment period may be up to 10 years
• Deferment and cancellation provisions available

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William D. Ford Federal Direct Stafford Loan
Program

• Funds provided directly by the Federal Government
  to the school to administer
• Contact school for specific procedures
• Application process
• Master Promissory Note
• Entrance Counseling

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Federal Direct Stafford Loan (Subsidized and
Unsubsidized)

• Subsidized Stafford Must demonstrate need
• Unsubsidized Stafford Not based on need
• Base annual loan limits
• 1st year - 5,500 (maximum 3,500 subsidized)
• 2nd year - 6,500 (maximum 4,500 subsidized)
• 3rd year - 7,500 (maximum 5,500 subsidized)
• and beyond

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Additional Eligibility for Unsubsidized Federal
Direct Stafford Loan

• Additional unsubsidized loan eligibility for
  independent undergraduates, graduate students,
  and dependent students whose parents are unable
  to borrow under the PLUS Program
• 4,000 per year for first and second years of
  undergraduate study
• 5,000 per year for remaining years of
  undergraduate study

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Independent Student Definition

• Born before January 1, 1990
• Student is married
• Working on Masters or Doctorate Program
• Veteran of the U.S. Armed Forces or currently
  serving on active duty (not reserves)
• Student has children or dependents (other than a
  spouse) that receive more than half of their
  financial support from student

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Independent Student Definition

• At any time since age 13
• Both parents are deceased
• Was in foster care or dependent/ward of court
• Emancipated minor before 18th birthday
• In legal guardianship before 18th birthday
• Determined to be an unaccompanied youth who was
  homeless
• Determined to be independent by the financial aid
  administrator

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Costs of Borrowing Federal Stafford Loan

• Interest rates
• 6.8 for 2013-14 (Subsidized and Unsubsidized)
• Loan fees up to 4 of principal
• Grace period and deferment provisions

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Federal PLUS and Federal Direct PLUS

• Borrowers are parents of dependent undergraduate
  students
• Annual loan limit cost of attendance minus other
  aid
• Interest rate 7.9
• Loan fees - up to 4 of principal

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Federal PLUS and Federal Direct PLUS (continued)

• Repayment begins 60 days after loan is fully
  disbursed for that term
• Deferment provisions only principal is deferred,
  but interest may be capitalized

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Alternative Loans

• Educational loans through private lending
  institutions
• Loan is generally in students name and requires
  a credit-worthy cosigner
• Many lenders use credit scoring to determine
  eligibility
• Repayment can be deferred until education is
  completed

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Private Scholarship Search

• Local library resources
• Local businesses and civic organizations
• Parents places of employment

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Private Scholarship Search

• Internet
• College Boards Scholarship Search
• www.collegeboard.com
• FastWeb Scholarship Search
• www.fastweb.com
• Education Planner
• www.educationplanner.org

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• The FTC cautions students to look for tell tale
  lines
• ? The scholarship is guaranteed or your money
  back.
• ? You cant get this information anywhere
  else.
• ? I just need your credit card or bank account
  
• number to hold this scholarship.
• ? Well do all the work.
• ? The scholarship will cost some money.
• ? Youve been selected by a national
  foundation to receive a scholarship or Youre
  a finalist in a contest you never entered.
• www.ftc.gov

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Definition of Need

• Cost of Attendance (COA)
• Expected Family Contribution (EFC)
• Financial Need

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COSTS

• Tuition and fees
• Room and board
• Books and supplies
• Transportation
• Personal expenses
• Childcare (for students with dependents)
• Special expenses for handicapped students

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FAMILY CONTRIBUTION MAIN FACTORS

• Parental Income
• Parental Assets (excluding primary home)
• Student Income
• Student Assets
• Family Size / Number in College
• Age of the Older Parent

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Financial Aid Packages

• Schools may or may not be able to meet 100 of
  need
• Packages may be comprised of various types of aid
  (grants, loans, employment, etc.)
• Packages can be very different from one school to
  another

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FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA)

• FILING OPTIONS
• File on-line at www.fafsa.gov
• or
• Mail a paper FAFSA

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PAPER FAFSA

• Go to www.fafsa.gov and click on FAFSA Filing
  Options to print a copy of the FAFSA or
• Call Federal Student Aid at1-800-433-3243 for one
  to be mailed to you or
• Obtain one from the Guidance Office or a
  Financial Aid Office

Click on FAFSA Filing Options
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WWW.FAFSA.GOV

• Pre-Application Worksheet built-in edits to
  help prevent costly errors
• Speeds up FAFSA processing
• Apply for PINs at www.pin.ed.gov

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FAFSA on the Web Worksheet
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Application Tips

• Contact school for required forms and deadlines
• Do NOT wait to be admitted before filing for aid
• Respond quickly to requests
• Keep copies of all applications/documents
• FAFSA and other applications must be completed
  each year
• Contact school and PHEAA if family has any
  special circumstances, such as loss of employment

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Frequent FAFSA Errors

• Social Security Number
• Divorced/remarried parent information
• Income earned by parents/stepparents
• Untaxed income
• U.S. income taxes paid
• Household size
• Number in postsecondary education
• Real estate and investment net worth
• Signatures

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What Paperwork/Emails to Expect?

• Student Aid Report
• PHEAA Grant notification of aid
• School notification of aid
• Loan disclosure statement
• Verification Forms
• Special Consideration

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Contact Information

• Federal Student Aid Information
• 1-800-433-3243
• PHEAA Grant Division
• 1-800-692-7392
• Important websites
• www.finaid.org
• www.pheaa.org or www.aessuccess.org
• www.fafsa.gov
• www.pin.ed.gov
• Specific schools Admissions and Financial Aid
  websites

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Good Luck!

• Better yet,
• call your Financial
• Aid Administrator
• (thats better than luck!)