financial aid presentation 2010-2011 academic year
TRANSCRIPT
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