Pequea Valley
High School
Financial Aid
Night
Goals of Financial Aid
 ACCESS
to
postsecondary
education
 CHOICE
among
postsecondary
institutions
Principles of Financial Aid
Student and parent have
primary responsibility for funding
postsecondary education to the
extent they are able.

Families will be treated
equitably and consistently by
the need-analysis formula.

Role of the Financial Aid Office
Determine
Package
Send
final eligibility for need-based aid
aid
award letter which details:
Types and amounts of aid
Disbursement procedure
Conditions of awards
How Aid is Awarded
Need-based
• Financial need
• Largest source of
gift aid funds
Merit-Based
• Academic Ability
• Special
Talent/Achievement
• Program of Study
• Family Background
Types of Aid
Gift Aid
• Scholarships
• Grants
Self-Help
• Loans
• Employment
Sources of Aid
Federal
State
Institutional
Private
Federal Financial Aid Programs
 Pell
Grant
• Foundation for federal
financial aid
• Must submit FAFSA
• EFC and COA
determine eligibility
• $5,550 maximum 2012-13
Federal Financial Aid Programs

Campus Based Aid
•
SEOG
•
•
•
•
Priority to Pell Grant recipients
Grant maximum = $4,000/yr
At MU – maximum is $800/yr
At F&M – maximum is $1000/yr
• Work study
•
•
Job on campus or in community
Minimum wage or higher
• Perkins loan
•
•
•
•
•
Loan maximum = $5,500/yr
At MU – maximum is $3000/yr
At F&M – maximum is $1000/yr
Interest rate = 5%
9 month grace period before interest begins
accruing and repayment begins
Federal Direct Student Loans
Lender is the Department of Education
• Subsidized - 3.4%
• Unsubsidized – 6.8%
Federal Stafford Loan Limits
Year in
College
Base Limit
Subsidized or
Unsubsidized
Loan
Extra
Unsubsidized
Federal
Stafford Loan
Total
Guaranteed
and Awarded
Amount for
Academic Year
Additional
Unsubsidized
Loan
Total
Potential
Academic
Year Limit
1st year
$3,500
$2,000
$5,500
$4,0001
$9,500
2nd year
$4,500
$2,000
$6,500
$4,0001
$10,500
3rd year
$5,500
$2,000
$7,500
$5,0001
$12,500
4th year
$5,500
$2,000
$7,500
$5,0001
$12,500
Certification
$5,500
$0
$5,500
$7,0002
$12,500
Graduate
$8,500
$0
$8,500
$12,0002
$20,500
Requirements to receive the additional loan:
1. Must be an Independent Student (and request the additional amount by contacting the Office of
Financial Aid) or be a Dependent Student whose Parents were denied the PLUS Loan
2. Student must request the additional amount by contacting the Office of Financial Aid
Federal Stafford Loan Aggregate Limits
Undergraduate Education
(Dependent Student)
Undergraduate Education
(Independent Student OR
Dependent Students whose
Parents were denied PLUS Loan)
Graduate / Professional
Education
$31,000
($23,000 maximum Subsidized Loan)
$57,500
($23,000 maximum Subsidized Loan)
$138,500
Year in College
1st year
2nd year
3rd year
4th year
0 – 29.9
30 – 59.9
60 – 89.9
90 +
State Financial Aid
PA State Grant
• Must be HS grad or have GED
• Must be a PA resident
• $4,000 maximum in PA (12-13)
• $3,375 maximum at Millersville
• $600 maximum
• CT, DE, MA, ME, RI, VT, WV, DC
• $400 maximum all other states
• except NY, NJ, MD
Institutional Aid
May
be grants, scholarships, loans, employment
or discounts
May require institutional application and/or other
supplemental financial aid forms
Deadline dates are very important
Each
institution varies in resources available for
awards, percentage of need met, & what
formula they use
Contact the Admissions or Financial Aid Office
at each institution being considered
How to Apply
FAFSA on the Web
(Online application)
www.fafsa.ed.gov
• FAFSA PIN Number
(Online request for parents & students)
www.pin.ed.gov
- can be done now
• List email address on FAFSA
 Free Application for Federal Student Aid
(Paper application)
- NO LONGER AVAILABLE IN HIGH SCHOOLS
OR IN COLLEGE FINANCIAL AID OFFICES
IF YOU WISH TO HAVE A PAPER COPY,
CONTACT FEDERAL STUDENT AID AT
1-800-433-3243
Applying For Aid
 Complete
the Free Application for Federal
Student Aid (FAFSA)
 Find
out what other
applications are required
and the deadlines
 Complete
all applications before the deadline
and early if possible
Additional Forms

Non-Custodial Parent Statement

Business and Farm Supplement

Institutional Aid Application

CSS/Financial Aid Profile
Applying for Aid (Cont.)
 Do
not wait to be accepted for
admissions before filing for aid
 Respond
quickly to requests for
additional information
 Explore
every funding resource
available to you
 Keep
copies of all applications
for your records
Family Educational Rights and
Privacy Act (FERPA)
All
financial information submitted is
protected.
Data is treated as confidential.
Release to a third party only with signed
authorization.
Students receiving financial aid may be required
to complete a “Authorization to Release
Information Form” permitting a school to be able
to speak to anyone other than the student once
s/he has enrolled (has begun classes).
Special Circumstances
Divorce or separation
 Must list custodial parent and his/her spouse
Custodial parent is the parent with whom you reside more than
50% of the time
If you live with each parent exactly equally, you must choose
which parent to use on the FAFSA
 If you live with neither parent and on your own, you must still
provide parental information (unless you qualify as an
independent student based on the dependency status
questions) – use parent with whom you most recently resided
(& his/her spouse)
Dependency Override
Living with relatives who are not considered “legal guardians”
– i.e. no court order or court order refers to “custody” (does not
use the word “guardian” in the paperwork)
Parents incarcerated or in other institutions
Unable to locate parents
Professional Judgment
 Reduction
in income
 Extraordinary medical or dental expenses
 Unreimbursed child care expenses
 Disability expenses
 Tuition for elementary or
secondary school
Documentation/Forms are likely to be required – please contact
the Financial Aid Office of the school you choose to attend
for more information about what is needed for these items.
INDEPENDENT STATUS
The following questions must be answered to determine
student’s status – if student can answer “yes” to any of
the following questions, s/he is independent



Born before January 1, 1990
As of date FAFSA is completed, student is married
At the beginning of 2013-2014 school year, working
on master’s or doctorate degree
 Currently serving on active duty
 Veteran of U.S. Armed forces
 Have children or other dependents who receive more
than 50% of their support from them (means that
student must support him/herself 100% and the
child > 50% – living at home at low cost or free of
charge does NOT constitute supporting child > 50%
INDEPENDENT STATUS
 When you were age 13 or older, were both of your parents
deceased, were you in foster care, or were you a
dependent/ward of the court
 Answer “yes” if
You had no living parent (biological or adoptive) when you were
age 13 or older, even if you are now adopted
You were in foster care when you were age 13 or older, even if
you are no longer in foster care as of today
You were a dependent/ward of the court when you were age 13
or older, even if you are no longer a dependent/ward of the court
as of today
PROOF OF DECEASED PARENTS, FOSTER
CARE, OR DEPENDENT / WARD OF COURT MAY
BE REQUIRED BY FINANCIAL AID OFFICE
INDEPENDENT STATUS
As of today, are you an emancipated minor or in
legal guardianship as determined by a court in your
state of legal residence?
Answer “yes” if you can provide a copy of a court’s
decision that you are an emancipated minor or are in legal
guardianship (court documents must use the word
“guardian.”) The court must be located in your state of
legal residence. If the court order is no longer in effect,
answer “no.”
PROOF OF COURT DECISION MAY BE
REQUIRED BY FINANCIAL AID OFFICE
INDEPENDENT STATUS
At any time on or after July 1, 2012, did:
Your high school or school district homeless liaison
determine that you were an unaccompanied youth who
was homeless?
The director of an emergency shelter program funded
by the U.S. Department of Housing and Urban
Development determine that you were an
unaccompanied youth who was homeless?
The director of a runaway or homeless youth basic
center or transitional living program determine that you
were an unaccompanied youth who was homeless or
were self-supporting and at risk of being homeless?
TIPS on Completing FAFSA

Be sure FAFSA is signed with PIN or using Signature
Page
 If you receive a box that indicates you may skip Asset
information – do NOT skip it – provide the information –
many times a question is answered incorrectly which
gives you this box and the asset information is actually
necessary to complete the application
 Meet the earliest deadline of your school –
(the FAFSA cannot be completed prior to January 1).
 Please check our website for information regarding more
tips on completing the FAFSA.
Notification Process

Student Aid Report (SAR or eSAR)

Correction Process

PHEAA Status Notice


All first time applicants
are required to provide
additional information to
PHEAA regarding some
items not listed on the FAFSA,
such as high school and
graduation date, among others.
Schools typically begin sending out financial aid
statements to admitted freshman students
usually around mid-March.
What
Verification
is it?
•A review process where the accuracy of the data
reported on the FAFSA is checked against the
source documents.

What forms do I need to send?
•Common documents requested include:
-2012 U.S. Tax Transcripts
-Verification Worksheets
-W-2 Forms
Who
reviews the information?
•Review performed by the Financial Aid Administrator
Expected Family Contribution
Student Contribution (SC)
+
Parent Contribution (PC)
=
EFC
One common misconception people have about the EFC is
that it is the amount of the outstanding balance to be paid
to the university for the year. The EFC is actually a
number determined by a formula using the information
supplied on the FAFSA. It is used by financial aid
professionals to determine amounts of eligibility for needbased financial aid programs.
Cost of Attendance
Direct Costs
Indirect Costs
(billable)
(non-billable)
 Tuition
 Fees
 Room
 Board
Personal Expenses
 Transportation
 Books and Supplies

Millersville University Cost of Education
(per year 20012-2013)
Educational Expense
Items
PA Resident
Students
Non-PA
Resident Students
Tuition & Fees
$ 8,242
$ 17,884
Room
$ 5,378
$ 5,378
Board (meal plan)
$ 3,856
$ 3,856
Tuition Tech Fee
$
$ 542
358
$17,834
$27,660
Books & Supplies
$ 1,000
$ 1,000
Personal Expenses
$ 1,808
$ 1,896
Transportation
$
$
TOTAL BILLABLE CHARGES
TOTAL COSTS
800
$21,442
800
$ 31,356
Calculating Financial Need
Cost of Attendance
Less
$21,442
EFC
(3,174)
NEED
$18,268
(determined from information provided on the FAFSA)
Equals
*Please note, the EFC listed here is for sample purposes only
Will All My Need Be Met?
Financial need
Minus any aid
$18,268
(8,588)
(in the form of grants, scholarships, work-study,
subsidized loans)
Equals remaining need
$ 9,680
*Please note, the aid amount listed here is for sample purposes only
Comparing Aid Packages
School A
School B
School C
Cost
EFC
$12,500
3000
$18,500
3000
$42,500
3000
Need
Package #1
$9,500
$15,500
$35,500
$7,000 grants
$5,500 loans
$9,100 grants
$9,400 loans
Total = $12,500
Total = $18,500
$4,500 grants
$26,500 scholarships
$9,500 loans
$2,000 work study
Total = $35,500
Package #3
$1,000 grants
$3,500 loans
$1,000 work study
$6,000 grants
$4,000 loans
$11,200 grants
$9,000 loans
$1,500 work study
Total = $5,500
Total = $10,000
Total = $21,700
Schools will have varying amounts of money available to be awarded in
scholarships. Federal grants and federal loans will most often be the
same at each school. The EFC will be the same for each school.
College Expenses
The actual outstanding balance and the EFC
may not match. You will be responsible for
paying the outstanding balance of the bill.
To calculate how much you will owe:
School charges (tuition, fees, room, board)
- Financial Aid (grants, loans, waivers)
Outstanding Balance
It is a good idea to begin planning early for how much you will owe – do
not wait until you receive the bill – many times that does not allow the
Financial Aid Office enough time to process any additional aid. Most
schools will have estimated or actual costs available as early as February
Satisfactory Academic Progress (SAP)
In order to maintain financial aid eligibility, a student must
make Satisfactory Academic Progress (SAP)
Federal (also known as Title IV) Aid, includes:
• Pell Grant
SEOG
• Work-study
•
•Stafford
Loan
•Perkins Loan
•PLUS Loan
•Academic
Competitiveness Grant
•National SMART Grant
•Graduate PLUS Loan
Check with the Office of Financial Aid for their policy on SAP
for Federal Aid.
State Aid – includes PA State Grant
• A full-time student (12+ cr per semester) must pass 24 new credits
• A part-time student (6-11 cr per semester) must pass 12 new credits
Alternatives for Meeting Need
Family Savings
Institution or private payment plans –
 Federal Direct Parent PLUS loans
•
•
•
•
Loan in parent’s name (biological, adoptive, or step-parent)
Based on credit
Fixed Interest rate = 7.9%
Loans processed after 7/1/08 will automatically be deferred –
only the interest will need to be paid until 6 months after
student graduates or drops below half-time status. You can
choose to make payments on principle amount by contacting
the lender.
• Denial of the PLUS loan based on a credit check means the
student can have additional Federal Stafford Loans
Alternatives for Meeting Need,
continued
Alternative loans
• Loans in student’s name, but usually requires a credible
co-signer
• Money from private banks
• Variable interest rates and terms
• Check with aid office for a listing
• Payments for principle are deferred generally until 6
months after student graduates or drops below half-time
status (continue to pay interest on loan)
Home equity loans
Information on the Internet
SEE YELLOW WEB HANDOUT
ASSISTANCE AND ADVICE



Federal Student Aid-U.S. Dept of Ed.’s
comprehensive website
http://www.studentaidontheweb.gov
Interactive calculators: EFC Estimator,
College Cost Estimator, Loan Payment
Calculator, and Savings Plan Designer.
http://www.finaid.org/calculators
Ask the Aid Advisor – Over 100 Financial Aid Administrators
available to answer your questions
http://www.finaid.org/questions/askadvisor.phtml
On-Line Services
www.educationplanner.com
www.ed.gov/finaid.html
www.aessuccess.org
www.students.gov
www.pin.ed.gov
www.fafsa.ed.gov
Higher Education Tax Benefits
 Hope
Scholarship
 Lifetime
Learning
Credit
 Student
loan
interest
deductibility
 Tuition
and Fees
Deduction
 Coverdell
Education
Savings Accounts (ESA),
previously referred to as
Education IRAs
 529
Plans
Scholarship Scams
An FTC pamphlet warns be wary of companies that:

Have FL or CA addresses, residential offices or PO boxes
without Street information

Have names that sound like federal agencies

Make overblown claims such as “Everybody’s eligible!”
and “Guaranteed success!”

Charge to complete the FAFSA and request bank account
or credit card information
Scholarship Scams (Cont.)
What should you do if you suspect a scam?

Consult a H.S. counselor or Financial Aid Office

Save all forms and details about the company and services
including names of individuals

Report suspected scammer to any of the following:
• National Fraud Information Center
•
www.fraud.org
• Better Business Bureau
•
www.bbb.org
Timeline For Making College
Happen -- Financially!
FALL SENIOR YEAR
Continue looking for outside scholarships
Talk to the financial aid administrators
at the colleges being considered

WINTER SENIOR YEAR
Parents and students complete federal
tax returns ASAP after January 1st
st
Complete the FAFSA anytime after January 1 – be sure to
meet the earliest deadline of the schools being considered
Submit all financial aid applications and required
documentation to each college

Timeline (cont.)
SPRING SENIOR YEAR
Begin receiving financial aid packages
Review and Compare packages
Inform financial aid offices of any unusual
circumstances which may have arisen in your family
Develop a plan for how to pay the “bottom line”
(costs that are not covered by financial aid)

SUMMER BEFORE COLLEGE
Inquire about on and off campus jobs
Complete loan applications and promissory notes
Apply for PLUS/Alternative Loans if you plan to
use either to help cover your outstanding balance
Keep working and saving (especially for 1st semester books)
Find out what your roommate is bringing for the room so you
don’t “double buy”

Financial Aid Tips

Students: Be involved in the financial aid process
– this is your education!

Every student should file a FAFSA for his/her
freshman year.

Meet all deadlines and respond promptly to requests
for additional information.

Stay organized.

Take the time to explore and apply for outside
scholarships and other funding sources.
Financial Aid Tips (cont.)

See the financial aid office with any unusual financial
circumstances.

Don’t forget that you will need to complete new aid
applications for each academic year.
(Every time you file taxes, file your FAFSA)

Make sure you know how you’re going to pay for your outof-pocket expenses (costs not covered by aid).
all – ASK QUESTIONS!!! This process
can seem confusing and overwhelming. Anytime
you are uncertain about anything – ASK!!!
 Above
Thank You for Coming
Best wishes for a successful
academic career!