Financial Aid 101

1. Financial Aid 101 Presented by Palisades High School Counseling Office

2. Projected College Cost Projected Average Costs for four years of tuition, room, board, and fees at Public Universities Source: Wells Fargo

3. Calculating College Costs • Tuition • Fees (health, activity, lab, computer access) • Room • Board • Books • Supplies • Personal expenses • Transportation

4. BCCC Bloomsburg Lehigh $ 4,004 $ 7,456 $ 39,780 $ 1,500 $ 6,890 $ 10,520 $ 1,350 $ 1,200 $ 2,010 $ 1,350 $ 3,000 $ 2,500 $ 2,600 $ 1,602 $ 500 $10,804 $ 20,148 $ 55,310 Examples of College Costs Tuition & fees Room & board* Books & supplies* Personal Expenses Transportation Total Costs

5. Paying for Higher Education Where the money comes from • Family • Student • Federal government • State government (PHEAA) • Institutional Aid (college) • Private sources (employer, fraternal organizations)

6. The Trends • The trend in financial aid has been a growing reliance on borrowing for college. • During the last 25 years, financial aid has changed from grant-based to loan-based.

7. Cost of school – EFC = Financial Need Demonstration of financial need does not guarantee that all of the need will be met through financial aid. How to Calculate Financial Need

8. EFC • EFC is determined through a federal formula • It does not take into account credit card debt, mortgage, car loans, disposable income • Considered as a reasonable expectation of what a family should pay toward a child’s educational expenses • An online tool is available to help you estimate the EFC • FAFSA4caster available at www.FederalStudentAid.ed.gov

9. Types of Financial Aid • Gift Aid (does not have to be paid back) • Scholarships • Grants • Self – Help • Loans • Work Study A Financial Aid Package may include both types

10. Scholarships • Contact Colleges • Check parent & student clubs, organizations, unions, employers • Check our website • Check other internet sites: • www.fastweb.com • www.collegeboard.com • www.finaid.org

11. NEED BASED AID Eligibility is determined by evaluation of family’s finances Done by application (FAFSA) May require additional forms (CSS profile) MERIT BASED AID Awarded by colleges and private sources Include academic, leadership, artistic, music, single parent and returning adult student awards Need Based vs. Merit Based Aid

12. Gift-aid vs. Self-help

13. General Eligibility Requirements for Federal Aid • Submit a FAFSA form by deadline • Have a high school diploma • Be enrolled as a regular student in an eligible degree program at an eligible institution at least half-time • US Citizen • Valid Social Security number • Make satisfactory academic progress • Sign a certifying statement that funds will be used appropriately • Not be in default of any previous educational loan • Be registered with the Selective Service

14. Federal Grants • Federal • Pell Grant • Academic Competitiveness Grant (ACG) or SMART Grant • Teach Grant • GI Bill for post 9/11 • Yellow Ribbon Program • American Opportunity Tax Credit • Loan Forgiveness Program

15. State & Institutional Grants • State • PHEAA Grant • PHEAA Summer State Grant • New Economy Technology Scholarship (NETS) • Educational Assistance Program (Nat’l Guard) • Robert C. Byrd Honors Scholarship • Post-secondary Education Gratuity Program • Private • Institutional Grants

16. Work Study • Employment on or off-campus • Rate of pay determined by College’s Financial Aid Office • Student gets a paycheck. Student must decide whether to put toward tuition or spend • This amount is not calculated as student income in next year’s FAFSA

17. Student Loans • Federal Direct Stafford Loans • Subsidized • Unsubsidized • State • Alternative • Direct PLUS • Home Equity

18. Examples of Financial Aid Example #1 School ASchool BSchool CSchool D Cost $8,500 $18,000 $23,000 $34,000 -EFC 2,000 2,000 2,000 2,000 --------------------------------------------------------------------------------------------------------------- = Need $6,500 $16,000 $21,000 $32,000 Pell Grant $2,360 $ 2,360 $ 2,360 $ 2,360 PHEAA Grant $1,300 $ 4,000 $ 4,300 $ 4,700 SEOG Grant -0- -0- -0- $ 2,000 Scholarships -0- $ 500 $ 2,000 $17,950 Perkins Loan -0- $ 1,300 $ 2,000 -0- Stafford Loan – Sub $2,240 $ 3,500 $ 3,500 $ 2,990 Stafford Loan - Unsub $1,260 -0- -0- $ 510 Work Study -0- $ 1,200 $ 1,500 $ 2,000 --------------------------------------------------------------------------------------------------------------- Total Aid $7,760 $12,860 $15,660 $32,510 Remaining Need - $ 740 $ 5,140 $ 7,340 $ 1,490 (Unmet need + EFC)

19. Applying for Financial Aid • Institutional Applications • Check institution’s publications/website • Some deadlines will be different than FAFSA • CSS Profile www.collegeboard.com • Only available online • $9 application fee, $16 for each college • Only send to schools that require it • FAFSA • Online application is preferred • Must get a pin for student and parents • www.pin.ed.gov • Paper will be available in limited quantities • Can not file until after Jan 1 • Deadline is May 1, but recommend filing by February 15

20. FAFSA – After you apply • PHEAA Status Notice • Sent to all first time applicants • Student/parent completes only the items requested – mandatory • SAR(Student Aid Report) • If done by paper, will be via paper; if done via web, will be sent via e-mail • Review for accuracy

21. Summary The cost of higher education is primarily the responsibility of the student and family Lifestyle vs. Affordability Ability to pay vs. willingness to pay Financial Aid supplements the Expected Family Contribution – It does not provide it.