What You Need to Know about Financial Aid

Report
2014-2015 Academic Year
Jessica Petrie
Financial Aid Coordinator
Penn State York


Financial Aid consists of funds provided to
students and families to help pay for
postsecondary educational expenses
Students and parents have the primary
responsibility for funding post secondary
education to the extent they are able

Direct Costs

Indirect Costs

Direct and indirect costs = Cost of
Attendance
Dear Mom and Dad,
$chool i$ really great. I am making lot$ of
friend$ and $tudying very hard. With all my
$tuff, I $imply can’t think of anything I need,
$o if you would like, you can ju$t $end me a
card, a$ I would love to hear from you.
Love,
Your $on
Dear Son,
We kNOw that astroNOmy, ecoNOmics, and
oceaNOgraphy are eNOugh to keep even an
hoNOr student busy. Do NOt forget that the
pursuit of kNOwledge is NOble task, and you
can never study eNOugh.
Love,
Mom and Dad

Financial Aid Timeline



Money that does not have to be paid back
Awarded on the basis of merit, skill or unique
characteristic
Small scholarships add up!



Foundations, businesses, charitable
organizations
Begin researching early and research what is
available in the community
Pay attention to deadlines and application
procedures


Companies may have scholarships available
to children of employees
Companies may have educational benefits for
their employees

One fourth of scholarship donors look up an
applicants online presence
◦
◦
◦
◦

Google
Facebook
You Tube
Twitter
One Third of donors denied application based
on an applicants online presence!
FastWeb.com

Financial Aid Timeline

A standard form that collects demographic
and financial information about the student
and family

Available in English and Spanish

FAFSA Forecaster

Amount family can reasonably be expected to
contribute

Stays the same regardless of college

Calculated from data provided on FAFSA

Colleges use EFC to award financial aid

Penn State filing deadline – MARCH 1

Pennsylvania filing deadline – MAY 1

www.fafsa.ed.gov

FAFSA is FREE!




Sign FAFSA with a Federal PIN number
www.pin.ed.gov
PIN number stays the same
PIN also used to sign Stafford and PLUS loans




What if I’m not sure I’ll attend college?
Will I need to complete my tax return before
completing the FAFSA?
What if I don’t have a Social Security number
or don’t want to report it on the FAFSA?
What is the IRS Data match?




While completing FOTW, applicant may
submit real-time request to IRS for tax data
IRS will authenticate taxpayer’s identity
If match found, IRS sends real-time results to
applicant in new browser window
Applicant chooses whether or not to transfer
data to FOTW


Social Security Numbers
Divorced/remarried parental information
◦ Who provides more than ½ support




Untaxed income
U.S. Income tax paid
Household size/ number in college
Real estate and investment net worth


Results sent to schools listed
Results emailed to student if email address
provided – SAR Acknowledgement
◦ Review your results for accuracy
◦ Update estimated information

Schools may require additional
documentation
*Penn State School Code - 003329






Change in employment status
Medical expenses not covered by insurance
Change in parent marital status
Unusual dependent care expenses
Student can not obtain parent information
Contact your financial aid office


Lists the sources of aid you are eligible to
receive based on the info from the FAFSA
Estimated award amounts and nonnegotiable




Scholarships
Grants
Loans
Employment


Money that does not have to be paid back
Usually awarded on the basis of financial
need





Federal PELL Grant
Federal Supplemental Educational
Opportunity Grant (FSEOG)
Teacher Education Assistance for College and
Higher Education Grant (TEACH)
Iraq and Afghanistan Service Grant (IASG)
PA State Grant

State Grant
◦ Status notice
◦ Account Access

CHAFEE Education and Training Grant
Program



Get a job on campus or in the community
Hourly rate must be at least minimum wage
Can be Federal, State or sponsored by
Veterans Affairs




Money students and parents borrow to help
pay college expenses
Repayment usually begins after education is
finished
Only borrow what is really needed
Look at loans as an investment in the future

The median four-year college graduate who
enrolls at age 18 and graduates in four years
can expect to earn enough by age 36 to
compensate for being out of the labor force
for four years and for borrowing the full
tuition and fee amount without any grant aid
Education Pays,
www.collegeboard.org, 2013

Federal Loans
Available to students
Borrowed from the government
Offer low fixed interest rates
Offer different repayment plans including
deferment and forbearance
◦ Repayment does not begin until after a student
leaves school
◦ Guaranteed loans for students
◦
◦
◦
◦

Subsidized vs. Unsubsidized
◦
◦
◦
◦
3.86%
Bipartisan Student Loan Certainty Act of 2013
Rate is based on the US Treasury bill
Most students are eligible for both



Parent PLUS loan
6.41%
Credit based

Private loans
◦
◦
◦
◦
Available to students
Borrowed from a bank
Interest rates are variable
Credit based loans, most students require a
cosigner

Know what you are getting into
◦ Do your research

Understand the types of student loans
◦ Do not borrow more than you need

Make a plan for repayment
◦ Consider paying interest while in school

Don’t get yourself into further debt

Federal Direct Stafford Loan and Parent PLUS
Loan
◦ Must complete Master Promissory Note
◦ Must complete Entrance Counseling
 Students only
◦ www.studentloans.gov

Filling the gap that financial aid does not
cover
◦ Parent PLUS Loan
◦ Private Loan
◦ Cash payments (including 529 Plans)


Financial Aid – payments from outside
sources
Bursar’s Office
◦ Payments out of pocket
◦ PA 529 plans
◦ Deferred payment plans







www.yk.psu.edu
www.studentaid.psu.edu
www.bursar.psu.edu
www.fastweb.com
www.studentaid.ed.gov
www.finaid.org
www.pasfaa.org

similar documents