Pequea Valley High School Financial Aid Night

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Pequea ValleyHigh SchoolFinancial Aid Night
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Goals of Financial Aid

• ACCESS to
• postsecondary education

• CHOICE among
• postsecondary institutions

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Principles of Financial Aid

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

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

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Role of the Financial Aid Office

• Determine final eligibility for need-based aid
• Package aid
• Send award letter which details
• Types and amounts of aid
• Disbursement procedure
• Conditions of awards

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How Aid is Awarded

• Need-based
• Financial need
• Largest source of gift aid funds

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

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Types of Aid

• Gift Aid
• Scholarships
• Grants

• Self-Help
• Loans
• Employment

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Sources of Aid

• Federal

• State

• Institutional

• Private

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Federal Financial Aid Programs

• Pell Grant
• Foundation for federal financial aid
• Must submit FAFSA
• EFC and COAdetermine eligibility
• 5,550 maximum 2012-13

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Federal Financial Aid Programs

• Campus Based Aid
• SEOG
• Priority to Pell Grant recipients
• Grant maximum 4,000/yr
• At MU maximum is 800/yr
• At FM maximum is 1000/yr
• Work study
• Job on campus or in community
• Minimum wage or higher
• Perkins loan
• Loan maximum 5,500/yr
• At MU maximum is 3000/yr
• At FM maximum is 1000/yr
• Interest rate 5
• 9 month grace period before interest begins
  accruing and repayment begins

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Federal Direct Student Loans

• Lender is the Department of Education
• Subsidized - 3.4
• Unsubsidized 6.8

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Federal Stafford Loan Limits
Year in College Base Limit Subsidized or Unsubsidized Loan Extra Unsubsidized Federal Stafford Loan Total Guaranteed and Awarded Amount for Academic Year Additional UnsubsidizedLoan Total Potential Academic Year Limit
1st year 3,500 2,000 5,500 4,0001 9,500
2nd year 4,500 2,000 6,500 4,0001 10,500
3rd year 5,500 2,000 7,500 5,0001 12,500
4th year 5,500 2,000 7,500 5,0001 12,500
Certification 5,500 0 5,500 7,0002 12,500
Graduate 8,500 0 8,500 12,0002 20,500
Requirements to receive the additional loan 1.
Must be an Independent Student (and request the
additional amount by contacting the Office of
Financial Aid) or be a Dependent Student whose
Parents were denied the PLUS Loan 2. Student
must request the additional amount by contacting
the Office of Financial Aid
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Federal Stafford Loan Aggregate Limits Federal Stafford Loan Aggregate Limits
Undergraduate Education (Dependent Student) 31,000 (23,000 maximum Subsidized Loan)
Undergraduate Education (Independent Student OR Dependent Students whose Parents were denied PLUS Loan) 57,500(23,000 maximum Subsidized Loan)
Graduate / Professional Education 138,500
Year in College Year in College
1st year 0 29.9
2nd year 30 59.9
3rd year 60 89.9
4th year 90
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How Much Debt?

• Pennsylvania Public 4-Year and Private
  Non-Profit 4-year
• Average Debt 25,219
• Ranking for PA 6 (1 being the highest)

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State Financial Aid

• PA State Grant
• Must be HS grad or have GED
• Must be a PA resident
• 4,000 maximum in PA (12-13)
• 3,375 maximum at Millersville
• 600 maximum
• CT, DE, MA, ME, RI, VT, WV, DC
• 400 maximum all other states
• except NY, NJ, MD

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Institutional Aid

• May be grants, scholarships, loans, employment
  or discounts

• May require institutional application and/or
  other supplemental financial aid forms

• Deadline dates are very important

• Each institution varies in resources available
  for awards, percentage of need met, what
  formula they use

• Contact the Admissions or Financial Aid Office
  at each institution being considered

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How to Apply

• FAFSA on the Web
• (Online application)
• www.fafsa.ed.gov
• FAFSA PIN Number (Online request for parents
  students)www.pin.ed.gov- can be done now
• List email address on FAFSA
• Free Application for Federal Student Aid (Paper
  application)- NO LONGER AVAILABLE IN HIGH
  SCHOOLSOR IN COLLEGE FINANCIAL AID OFFICESIF
  YOU WISH TO HAVE A PAPER COPY, CONTACT FEDERAL
  STUDENT AID AT 1-800-433-3243

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Applying For Aid

• Complete the Free Application for Federal Student
  Aid (FAFSA)
• Find out what other
• applications are required
• and the deadlines
• Complete all applications before the deadline and
  early if possible

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Additional Forms

• Non-Custodial Parent Statement
• Business and Farm Supplement
• Institutional Aid Application
• CSS/Financial Aid Profile

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Applying for Aid (Cont.)

• Do not wait to be accepted for admissions before
  filing for aid
• Respond quickly to requests for additional
  information
• Explore every funding resource available to you
• Keep copies of all applications
• for your records

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Family Educational Rights and Privacy Act (FERPA)

• All financial information submitted is
• protected.

• Data is treated as confidential.

• Release to a third party only with signed
  authorization.
• Students receiving financial aid may be required
  to complete a Authorization to Release
  Information Form permitting a school to be able
  to speak to anyone other than the student once
  s/he has enrolled (has begun classes).

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Special Circumstances

• Divorce or separation
• Must list custodial parent and his/her spouse
• Custodial parent is the parent with whom you
  reside more than 50 of the time
• If you live with each parent exactly equally, you
  must choose which parent to use on the FAFSA
• If you live with neither parent and on your own,
  you must still provide parental information
  (unless you qualify as an independent student
  based on the dependency status questions) use
  parent with whom you most recently resided (
  his/her spouse)

• Dependency Override
• Living with relatives who are not considered
  legal guardians i.e. no court order or court
  order refers to custody (does not use the word
  guardian in the paperwork)
• Parents incarcerated or in other institutions
• Unable to locate parents

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Professional Judgment

• Reduction in income
• Extraordinary medical or dental expenses
• Unreimbursed child care expenses
• Disability expenses
• Tuition for elementary or secondary school
• Documentation/Forms are likely to be required
  please contact the Financial Aid Office of the
  school you choose to attend for more information
  about what is needed for these items.

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INDEPENDENT STATUSThe following questions must
be answered to determine students status if
student can answer yes to any of the following
questions, s/he is independent

• Born before January 1, 1990
• As of date FAFSA is completed, student is married
• At the beginning of 2013-2014 school year,
  working on masters or doctorate degree
• Currently serving on active duty
• Veteran of U.S. Armed forces
• Have children or other dependents who receive
  more than 50 of their support from them (means
  that student must support him/herself 100 and
  the child gt 50 living at home at low cost or
  free of charge does NOT constitute supporting
  child gt 50

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INDEPENDENT STATUS

• When you were age 13 or older, were both of your
  parents deceased, were you in foster care, or
  were you a dependent/ward of the court
• Answer yes if
• You had no living parent (biological or adoptive)
  when you were age 13 or older, even if you are
  now adopted
• You were in foster care when you were age 13 or
  older, even if you are no longer in foster care
  as of today
• You were a dependent/ward of the court when you
  were age 13 or older, even if you are no longer a
  dependent/ward of the court as of today

• PROOF OF DECEASED PARENTS, FOSTER CARE, OR
  DEPENDENT / WARD OF COURT MAY BE REQUIRED BY
  FINANCIAL AID OFFICE

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INDEPENDENT STATUS

• As of today, are you an emancipated minor or in
  legal guardianship as determined by a court in
  your state of legal residence?
• Answer yes if you can provide a copy of a
  courts decision that you are an emancipated
  minor or are in legal guardianship (court
  documents must use the word guardian.) The
  court must be located in your state of legal
  residence. If the court order is no longer in
  effect, answer no.

• PROOF OF COURT DECISION MAY BE REQUIRED BY
  FINANCIAL AID OFFICE

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INDEPENDENT STATUS

• At any time on or after July 1, 2012, did
• Your high school or school district homeless
  liaison determine that you were an unaccompanied
  youth who was homeless?
• The director of an emergency shelter program
  funded by the U.S. Department of Housing and
  Urban Development determine that you were an
  unaccompanied youth who was homeless?
• The director of a runaway or homeless youth basic
  center or transitional living program determine
  that you were an unaccompanied youth who was
  homeless or were self-supporting and at risk of
  being homeless?

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• Answer YES if you received a determination at
  any time on or after July 1, 2009, that you were
  an unaccompanied youth who was homeless or at
  risk of being homeless
• Homeless means lacking fixed, regular and
  adequate housing, which includes living in
  shelters, motels or cars, or temporarily living
  with other people because you had nowhere else to
  go.
• Unaccompanied means you are not living in the
  physical custody of your parent or guardian.
• Youth means you are 21 years of age or younger
  or you are still enrolled in high school as of
  the day you sign this application.
• Answer NO if you are not homeless, at risk of
  being homeless or if you do not have a
  determination.
• You should contact your financial aid office for
  assistance if you do not have a determination but
  believe you are an unaccompanied youth who is
  homeless or are an unaccompanied youth providing
  for your own living expenses who is at risk of
  being homeless.

• PROOF OF DETERMINATION MAY BE REQUIRED BY
  FINANCIAL AID OFFICE

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TIPS on Completing FAFSA

• Be sure FAFSA is signed with PIN or using
  Signature Page
• If you receive a box that indicates you may skip
  Asset information do NOT skip it provide the
  information many times a question is answered
  incorrectly which gives you this box and the
  asset information is actually necessary to
  complete the application
• Meet the earliest deadline of your school (the
  FAFSA cannot be completed prior to January 1).
• Please check our website for information
  regarding more tips on completing the FAFSA.

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Notification Process

• Student Aid Report (SAR or eSAR)
• Correction Process
• PHEAA Status Notice
• All first time applicants are required to
  provide additional information to PHEAA
  regarding someitems not listed on the
  FAFSA,such as high school and graduation date,
  among others.
• Schools typically begin sending out financial aid
  statements to admitted freshman students usually
  around mid-March.

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Verification

• What is it?
• A review process where the accuracy of the data
  reported on the FAFSA is checked against the
  source documents.

• What forms do I need to send?
• Common documents requested include
• 2012 U.S. Tax Transcripts
• Verification Worksheets
• W-2 Forms

• Who reviews the information?
• Review performed by the Financial Aid
  Administrator

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Expected Family Contribution

Student Contribution (SC)

Parent Contribution (PC)

E F C
One common misconception people have about the
EFC is that it is the amount of the outstanding
balance to be paid to the university for the
year. The EFC is actually a number determined by
a formula using the information supplied on the
FAFSA. It is used by financial aid professionals
to determine amounts of eligibility for
need-based financial aid programs.
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Cost of Attendance

• Direct Costs (billable)
• Tuition
• Fees
• Room
• Board

• Indirect Costs
• (non-billable)
• Personal Expenses
• Transportation
• Books and Supplies

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Millersville University Cost of Education (per
year 20012-2013)
Educational Expense Items PA Resident Students Non-PA Resident Students
Tuition Fees 8,242 17,884
Room 5,378 5,378
Board (meal plan) 3,856 3,856
Tuition Tech Fee 358 542
TOTAL BILLABLE CHARGES 17,834 27,660
Books Supplies 1,000 1,000
Personal Expenses 1,808 1,896
Transportation 800 800
TOTAL COSTS 21,442 31,356
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Calculating Financial Need
Cost of Attendance 21,442 Less EFC
(3,174)(determined from information provided on
the FAFSA) Equals NEED 18,268
Please note, the EFC listed here is for sample
purposes only
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Will All My Need Be Met?

• Financial need 18,268
• Minus any aid (8,588)(in the form of
  grants, scholarships, work-study, subsidized
  loans)
• Equals remaining need 9,680

Please note, the aid amount listed here is for
sample purposes only
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Comparing Aid Packages
School A School B School C
Cost 12,500 18,500 42,500
EFC 3000 3000 3000
Need 9,500 15,500 35,500
Package 1 7,000 grants 5,500 loans Total 12,500 9,100 grants 9,400 loans Total 18,500 4,500 grants 26,500 scholarships 9,500 loans 2,000 work study Total 35,500
Package 3 1,000 grants 3,500 loans 1,000 work study Total 5,500 6,000 grants 4,000 loans Total 10,000 11,200 grants 9,000 loans 1,500 work study Total 21,700
Schools will have varying amounts of money
available to be awarded in scholarships. Federal
grants and federal loans will most often be the
same at each school. The EFC will be the same
for each school.
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College Expenses

• The actual outstanding balance and the EFC may
  not match. You will be responsible for paying
  the outstanding balance of the bill. To
  calculate how much you will owe

School charges (tuition, fees, room, board) -
Financial Aid (grants, loans, waivers) Outstandin
g Balance
It is a good idea to begin planning early for how
much you will owe do not wait until you receive
the bill many times that does not allow the
Financial Aid Office enough time to process any
additional aid. Most schools will have estimated
or actual costs available as early as February
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Satisfactory Academic Progress (SAP)

• In order to maintain financial aid eligibility, a
  student must make Satisfactory Academic Progress
  (SAP)
• Federal (also known as Title IV) Aid, includes
• Check with the Office of Financial Aid for their
  policy on SAP
• for Federal Aid.
• State Aid includes PA State Grant
• A full-time student (12 cr per semester) must
  pass 24 new credits
• A part-time student (6-11 cr per semester) must
  pass 12 new credits

• Stafford Loan
• Perkins Loan
• PLUS Loan

• Pell Grant
• SEOG
• Work-study

• Academic Competitiveness Grant
• National SMART Grant
• Graduate PLUS Loan

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Alternatives for Meeting Need

• Family Savings
• Institution or private payment plans
• Federal Direct Parent PLUS loans
• Loan in parents name (biological, adoptive, or
  step-parent)
• Based on credit
• Fixed Interest rate 7.9
• Loans processed after 7/1/08 will automatically
  be deferred only the interest will need to be
  paid until 6 months after student graduates or
  drops below half-time status. You can choose to
  make payments on principle amount by contacting
  the lender.
• Denial of the PLUS loan based on a credit check
  means the student can have additional Federal
  Stafford Loans

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Alternatives for Meeting Need, continued

• Alternative loans
• Loans in students name, but usually requires a
  credible co-signer
• Money from private banks
• Variable interest rates and terms
• Check with aid office for a listing
• Payments for principle are deferred generally
  until 6 months after student graduates or drops
  below half-time status (continue to pay interest
  on loan)
• Home equity loans

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Information on the Internet

• SEE YELLOW WEB HANDOUT
• ASSISTANCE AND ADVICE
• Federal Student Aid-U.S. Dept of Ed.s
  comprehensive website
• http//www.studentaidontheweb.gov
• Interactive calculators EFC Estimator,
• College Cost Estimator, Loan Payment
  Calculator, and Savings Plan Designer.
• http//www.finaid.org/calculators
• Ask the Aid Advisor Over 100 Financial Aid
  Administrators available to answer your
  questions
• http//www.finaid.org/questions/askadvisor.phtml

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On-Line Services
www.educationplanner.com www.ed.gov/finaid.html
www.aessuccess.org www.students.gov
www.pin.ed.gov www.fafsa.ed.gov
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Higher Education Tax Benefits

• Hope Scholarship
• Lifetime Learning Credit
• Student loan interest deductibility
• Tuition and Fees Deduction

• Coverdell Education Savings Accounts (ESA),
  previously referred to as Education IRAs
• 529 Plans

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Scholarship Scams

• An FTC pamphlet warns be wary of companies that
• Have FL or CA addresses, residential offices or
  PO boxes without Street information
• Have names that sound like federal agencies
• Make overblown claims such as Everybodys
  eligible! and Guaranteed success!
• Charge to complete the FAFSA and request bank
  account or credit card information

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Scholarship Scams (Cont.)

• What should you do if you suspect a scam?
• Consult a H.S. counselor or Financial Aid Office
• Save all forms and details about the company and
  services including names of individuals
• Report suspected scammer to any of the following
• National Fraud Information Center
• www.fraud.org
• Better Business Bureau
• www.bbb.org

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Timeline For Making College Happen --
Financially!
FALL SENIOR YEAR

• Continue looking for outside scholarships
• Talk to the financial aid administrators at the
  colleges being considered

WINTER SENIOR YEAR

• Parents and students complete federal tax
  returns ASAP after January 1st
• Complete the FAFSA anytime after January 1st be
  sure to meet the earliest deadline of the
  schools being considered
• Submit all financial aid applications and
  required documentation to each college

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Timeline (cont.)
SPRING SENIOR YEAR

• Begin receiving financial aid packages
• Review and Compare packages
• Inform financial aid offices of any unusual
  circumstances which may have arisen in your
  family
• Develop a plan for how to pay the bottom line
  (costs that are not covered by financial aid)

SUMMER BEFORE COLLEGE

• Inquire about on and off campus jobs
• Complete loan applications and promissory notes
• Apply for PLUS/Alternative Loans if you plan to
  use either to help cover your outstanding
  balance
• Keep working and saving (especially for 1st
  semester books)
• Find out what your roommate is bringing for the
  room so you dont double buy

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Financial Aid Tips

• Students Be involved in the financial aid
  process this is your education!
• Every student should file a FAFSA for his/her
  freshman year.
• Meet all deadlines and respond promptly to
  requests for additional information.
• Stay organized.
• Take the time to explore and apply for outside
  scholarships and other funding sources.

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Financial Aid Tips (cont.)

• See the financial aid office with any unusual
  financial circumstances.
• Dont forget that you will need to complete new
  aid applications for each academic year.
• (Every time you file taxes, file your FAFSA)
• Make sure you know how youre going to pay for
  your out-of-pocket expenses (costs not covered by
  aid).
• Above all ASK QUESTIONS!!! This process can
  seem confusing and overwhelming. Anytime you are
  uncertain about anything ASK!!!

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Thank You for Coming

• Best wishes for a successful academic career!

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Questions for Our Presenters

• Dwight G. Horsey
• Millersville University
• 717.872.3026
• www.millersville.edu/finaid
• Dwight.Horsey_at_millersville.edu