Financial Aid 101
Your Presenter Tiffanie DeVan Higher Education Access Partner PA Higher Education Assistance Agency (PHEAA) 717-884-2200 tdevan@pheaa.org
Financial Aid Basics Financial Aid: financial assistance to help students pay the cost of an education at a post-secondary school. • Paying is the joint responsibility of the student and parent(s), to the extent possible • Eligibility criteria may apply in order to receive/maintain financial aid, such as: » Males 18-25 yrs. of age, must register with Selective Service » Students must maintain satisfactory academic progress » Additional criteria may be required based on the type and source of aid • Some students may not qualify for all forms of aid • Must apply every year to be considered • Students should play an active role in the process » Talk with children about goals/plans (review educationplanner.org & mysmartborrowing.org) » Take advantage of college fairs & school visits (ask about cost and available aid)
Necessary Things to Consider Students - Return On Investment Your Academic Major Choice, Academic Demands What will be your Expected Salary? Versus the Cost of the Education? What are the Employment Demands? Now/Future? Where are your best Employment Options? Big city? Rural location? Cost of Living where you work?
Financial Aid Basics Cost of Attendance(COA): Expected Family Contribution (EFC) Costs that the student can expect to incur during the school year (direct + A measure of how much the student indirect costs) & family are expected to contribute to the cost of the student’s education. • Direct costs: billed by the school The EFC is calculated from a federal • Indirect costs: not included in bill formula using info collected from the but may be incurred FAFSA School costs include: Financial Need = COA - EFC Tuition and fees • Schools will determine need after Room and board reviewing financial aid applications Books and supplies • Schools will create an award package Transportation based on need and available funding at Miscellaneous living their schools expenses
Types of Financial Aid GIFT AID: (Free Money) Grants: based on financial need and generally does not have to be repaid Student must complete financial aid paperwork to determine eligibility Looks at COA & EFC Scholarships: aid, usually based on merit, that generally does not have to be repaid. Most students must meet certain qualifications to receive and maintain scholarships. Academic & athletic Talent (music, art, etc.) Grades, religious, ethnic or cultural background Select criteria determined by scholarship organization(s)
Scholarships National: offered by organizations with national exposure (ex: Gate’s Millennium, McDonalds, etc.) Earlier due dates (Fall) More competition Local & Regional: public, private, civic organizations, etc. Due dates vary (many due in the Spring) Less Competition and smaller award amounts Post-Secondary: offered by post-secondary institutions often using endowments/donations from alumni, trusts, corporate and community organizations Check the school’s financial aid page on website Stop in at the financial aid department on campus
Scholarship Tips Students should: • Start Early and Search Often - never too early Create an Academic Resume that highlights activities such as : • Academic success - awards, national honors society, etc. Extra Curricular Activities – sports, clubs, employment, etc. Community Involvement/Volunteerism – track with whom and hours • Create an Essay(s )- Write an essay, free from errors, that can be tweaked based on individual scholarships (be creative) • Secure Letter of Recommendations early • Pay attention to deadlines and understand the terms
Types of Financial Aid SELF HELP AID: Work Study: Student obtains job, often coordinated through the campus and/or State. Wages earned help cover the cost of attendance Not offered at all schools Student Loans: Borrowed money that must be repaid (with interest) Federal Direct Loans - Student’s Name Federal PLUS Loans - Parent’s Name Private/Alternative Student Loans – Varies amongst lender
Federal Direct Loans (Student Aid Guide- pg.30) Undergraduate Students Graduate Students Independent or dependent students Graduate or Annual Limits Dependent Students whose parents are unable to borrow a Professional Studies PLUS Loan $5,500 Total $9,500 Total 1 st Year No more than $3,500 No more than $3,500 may may be subsidized be subsidized $20,500 each academic year $6,500 Total $10,500 Total Graduate / Professional 2 nd Year No more than $4,500 No more than $4,500 may students are no longer eligible may be subsidized be subsidized for subsidized loans $7,500 Total $12,500 Total 3 rd Year No more than $5,500 No more than $5,500 may and beyond may be subsidized be subsidized
Federal Direct Loan: Aggregate Limits $31,000 Undergraduate Education (Dependent Student) ($23,000 maximum Subsidized Loan) Undergraduate Education $57,500 (Dependent Student OR Dependent Students whose Parents were denied PLUS Loan) ($23,000 maximum Subsidized Loan) $138,500 Graduate / Professional Education
Funding Sources Federal Government (Federal Department of Education) Grants (PELL, TEACH, etc.) Federal student loans (Direct & PLUS student loans) studentaid.ed.gov or 800-433-3243 & studentloans.gov State Government (PHEAA) Grants (PA State grant) Special state-aid programs (PATH, PA-Tip, etc.) PA Forward www.pheaa.org or 800-692-7392 Schools/Colleges Institutional grants & scholarships Work study Private/Public/ Civic Organizations, etc. Scholarships & Private student loans
Federal Need-Based Grant Programs • Pell Grant (2019-20 max award $6,195) » Max eligible EFC: $5,576 • Campus-based aid – amounts determined by FAO » FSEOG ………………up to $4,000 » Federal Work-Study …FAO determines Students must be enrolled at least half-time and meet satisfactory academic progress Must complete the FAFSA Additional details: PA Student Aid Guide, p 28 Visit StudentAid.ed.gov to see all federal aid sources.
Pennsylvania State Grant PA State Grant: max award $4,123 Awarded to eligible PA residents who demonstrate financial need Must attend an approved post-secondary school Out of State schools in DE, MA, OH, WV & DC: max $526 Veterans: up to $702 Cost Tier Final Maximum Final DE Award Award $0 - $12,000 $2,193 $1,645 $12,001 - $19,000 $3,509 $2,631 $19,001 - $29,000 $3,772 $2,829 $29,001 - $32,000 $4,123 $3,092
PA State Administered Programs • State Work-Study - job related to major • Blind or Deaf Beneficiary Grant • Educational Assistance Grant (EAP) – National Guard • Chafee Education and Training Grant – co-administered with the PA Department of Human Services • Postsecondary Educational Gratuity Program (PEGP) • Partnerships for Access to Higher Education (PATH) • Pennsylvania Targeted Industry Program (PA – TIP) • Ready to Succeed Scholarship (RTSS) • For details, see the PA Student Aid Guide, page 26 or visit PHEAA.org .
Partnerships for Access to Higher Education (PATH) Current PATH partners- PHEAA.org/PATH • PHEAA PATH Grant match – up to $2,500 • The student must be enrolled at least half-time in a PHEAA-approved postsecondary institution • Student must have received a PA State Grant for the semester or quarter for which they are nominated to receive a PATH Grant
PA Targeted Industry Program (PA-TIP) Targeted industries at approved schools: » Energy » Advanced Materials and Diversified Manufacturing » Agriculture and Food Production • Need-based awards up to the maximum State Grant award • Many requirements of State Grant, except: » Program must be at least 10 weeks but less than 2 years • Must file a FAFSA & PA - TIP application
Financial Aid 101 Forms
Financial Aid Forms Know which financial aid forms each school requires All Schools Require: Free Application for Federal Student Aid ( FAFSA) Required by PHEAA, and some scholarship organizations as well FAFSA.ED.GOV or FAFSA.GOV State Grant Form ( SGF) through PHEAA Required for first -year students (addl. information may be required in subsequent years) Can link to the State Grant application from FOTWs confirmation page or may access at www.pheaa.org Some Schools Require: CSS Profile (College Scholarship Service) required by some postsecondary schools and scholarship organizations https://student.collegeboard.org/css-financial-aid-profile Institutional Financial Aid Forms Internal forms specific to each school Required by some schools
FAFSA - Free Application for Federal Student Aid (FAFSA.GOV) The FAFSA is a federal form used to determine student eligibility for the following: • Federal programs, such as Pell Grants, work-study, and student loans • State programs, such as Pennsylvania State Grant, and other special programs • School programs, such as need-based grants and scholarships
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