Paying for Postsecondary Education
PHEAA – PA School Services William Lindsey Manager MARIAN HARGRAVE AMY SLOAN MARLA KANE LINDA PACEWICZ Northwest Region Northwest Region North Central Region Northeast Region MICHAEL BURKE FRANCES MCKEOWN KIMBERLY MCCURDY RON FELDER WENDY DUNLAP Southeast Region Southeast Region Allegheny County Philadelphia Southwest Region JAYEANN HARR JULIE FONTANA DAN WRAY SONYA MANN-MCFARLANE TIFFANIE DEVAN Southwest Region South Central Region South Central Region Cumberland Valley Cumberland Valley Region Region
WHAT WE’LL COVER
Today’s Agenda Applying for Financial Aid What happens next What aid sources are available Making smart decisions
FINANCIAL AID BASICS
What Is Financial Aid? • Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses. • Grants/Scholarships (free money) • Self-Help (work, savings, etc.) • Loans
Basic Principles • Paying is the joint responsibility of the student and parent(s), to the extent possible. • Need-based financial aid is subject to federal formula to determine financial need. • Not all families qualify for need-based aid. There is no guarantee that you will get any free money to pay for higher education.
Funding Sources • Federal Government • State Government • School/Colleges • Private Scholarship Sources: » HS counselors » Clubs and organizations » Employers » Internet scholarship searches
SCHOLARSHIPS
Scholarship search: • Start early – and KEEP LOOKING FastWeb.com • Don’t forget to continue studies! EducationPlanner.org • GOOGLE your interests Chegg.com • Don’t PAY for information FinAid.org • Criteria varies by school ScholarshipExperts.com If you’re asked to pay, it’s not free money - (SCAM) » Scholarships.com • Don’t disqualify yourself until IT disqualifies YOU Scholarship-Page.com • Don’t fear ESSAYS DoSomething.org/Scholars • Provide what is asked hips • Small scholarships ADD UP Colleges.Niche.com • Activities, Athletics, Family, Hobbies, Participation, StudentScholarships.org Attributes – DO YOUR RESEARCH BigFuture.Collegeboard.org • Don’t miss DEADLINES CollegeAnswer.com • Write it down! CollegeNet.com MeritAid.com Don’t miss out on FREE Money! MORE… .
fastweb.com • Excellent site to use for searching as it is a database that pulls specific scholarships for students based on their input. It also sends email alerts when a scholarship matches the student. • Largest, most accurate and most frequently updated scholarship database. • FastWeb.com
Scholarship Search Tips • Start searching early • Use FREE scholarship search sites • Don’t ignore scholarships with smaller award amounts • Don’t miss deadlines • Search for scholarships every year • Check corporate websites such as Target, Walmart, Kentucky Fried Chicken: ◦ All have scholarship programs and you don't have to work there to get them
FEDERAL AND STATE AID
Federal Programs • Pell Grant (2016 – 2017 max award $ 5,815) * • Campus-based aid – amounts determined by FAO » FSEOG………………… up to $4,000 » Perkins Loan….……….. up to $5,500 (undergraduate) » Federal Work- Study…… FAO determines • For most programs, student must be enrolled at least half-time. * Goes to most financially needy students
Federal Work-Study Students who participate in the federal work- study program are more likely to graduate and be employed 6 years after college than their similar counterparts who don’t participate in the program, according to a new study.
Other Federal Programs Please check out this website to see all federal aid sources: StudentAid.ed.gov/types
Pennsylvania State Grant* • In-state (PA) - Full-time up to $4378 • In-state (PA) – Part-time 1/2 of the FT award • Out-of-state - Up to $600 in DC, DE, MA, OH, VT, WV • Amount determined in part by the cost of the school * Must be at least half-time to be eligible
Other State Programs • State Work-Study - job related to major • Educational Assistance Grant (EAP) – National Guard • Chafee Education and Training Grant – co-administered with the PA Department of Human Services • Blind or Deaf Beneficiary Grant • 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, or visit PHEAA.org.
FEDERAL LOANS
Federal Direct Based on FAFSA, Loan Program students have a combination of: • Available to ALL students REGARDLESS of need • Additional unsubsidized funds available for • Subsidized = Independent & Parent PLUS denials govt pays interest » 3.76% variable/fixed interest rate in school and (AY 16/17), 1.069% fee Rates set every July 1st for the life of that year’s loan; » grace status fees are deducted from disbursement • AWARDED to every eligible undergraduate student • Unsubsidized = • In student’s name, no collateral or credit check, must sign MPN interest accrues in • Available loan amounts increase in subsequent school and grace years • No payments required while attending school & 6-month grace period • 150% RULE applies – New borrowers as of 7/1/13 StudentLoans.gov & school’s website!
Federal Student Loans • No credit check • Annual and aggregate borrowing limits • Fixed interest rate • Rate for new loans is reset every July 1st • Rate is based on 10-year Treasury note (+2.05%) • 6-month grace period • 10-year standard repayment • Flexible repayment options
Federal Direct Loan: Aggregate Limits
Interest Rates – Student Loans • Undergraduate – Subsidized and Unsubsidized: » 3.76% for 2016-17 » Capped at 8.25% • Graduate – Unsubsidized Only: » 5.31% for 2016-17 » Capped 9.50%
Federal Direct PLUS Loan • For parents of • MUST apply each year dependent loan is taken undergrad or graduate • Principal payment can be level students deferred while student is • Direct Parent PLUS Loan - in school in parent’s name for • IF denied - student is student costs eligible for an additional • Can borrow up to the $4,000 unsubsidized loan Cost of Attendance
PLUS and GradPLUS • Parent & GradPLUS » 6.31% for 2016-17 » Capped at 10.50 % • Repayment begins immediately - can defer repayment until 6 months after student graduates or drops below half-time enrollment » If defer payment – encouraged to make interest payments » Standard repayment is 10 years
Benefits of Paying Interest • Paying now will reduce what is capitalized! • Interest accrues on your unsubsidized student loan and Federal PLUS Loan: » Every day, from the day the loan is disbursed until you make the last payment » Even if your loan is not in repayment • Interest accrues on your subsidized student loan: » Every day, from the day the repayment period starts until you make the last payment
Private/Alternative Loans Consider these ONLY after looking into all other sources of financial aid
FORMS
Starting the Financial Aid Process Know what financial aid forms each school requires SOME Schools Require: • CSS Profile required by some postsecondary schools and scholarship organizations • Institutional financial aid forms • Internal school forms
FAFSA For 2017-18, the FAFSA requires: • Income data from tax year 2015 • Asset information as of the day you file the FAFSA
FAFSA Completion Tips • Answer all income questions • Carefully review untaxed income questions • Review asset questions before completing them • 529 Plans must be reported as parent assets • Assets do NOT include home, retirement or insurance • Do not report a business if it employs less than 100 • Do not report a farm if you live on the farm • Some people can skip asset questions • Online help available on the form
Electronic Signature: Create an FSA User ID and Password: • NEW - Replaces the “PIN” as of 5/10/15 • Student and one parent will sign the FAFSA electronically - each needs a SEPARATE email address and ID/password • A verification process delays use – Get your ID/password early • A FAFSA IS NOT COMPLETE UNTIL SIGNED! You’ll use it again for: • Renewal FAFSA • FAFSA status and corrections • Signing a Direct Loan Master Promissory Note (MPN) • Complete required entrance and exit loan counseling • Review loan history at NSLDS.ed.gov
FASFA TIPS • Don’t mix answers for • Ensure SSN accuracy student and parent • Gender question is information optional – answer it! • Have federal income tax and other related information to use as references • Don’t delay, don’t miss PARENT SECTION: deadlines Purple
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