Paying for College and Understanding Financial

Aid2015-2016 Academic Year

Jessica PetrieFinancial 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

What is Financial Aid?

Direct Costs

Indirect Costs

Direct and indirect costs = Cost of Attendance

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

Letter Home

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

The Reply

Timeline 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!

Scholarships

Foundations, businesses, charitable organizations

Begin researching early and research what is available in the community

Pay attention to deadlines and application procedures

Private Sources

Companies may have scholarships available to children of employees

Companies may have educational benefits for their employees

Employers

FastWeb.com

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!

Did you know???

Timeline Financial Aid Timeline

THE FAFSA

A standard form that collects demographic and financial information about the student and family

Available in English and Spanish

FAFSA Forecaster

Free Application for Federal Student Aid

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

EFC

Penn State filing deadline – MARCH 1

Pennsylvania filing deadline – MAY 1

FAFSA

www.fafsa.ed.gov

FAFSA is FREE!

FAFSA

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

FAFSA

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?

FAFSA FAQs

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

IRS Data Retrieval Tool

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

Frequent FAFSA Errors

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

FAFSA

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

Special Circumstances

Timeline

Lists the sources of aid you are eligible to receive based on the info from the FAFSA

Estimated award amounts and non-negotiable

Award Letters

Scholarships Grants Loans Employment

Types of Financial Aid

Money that does not have to be paid back

Usually awarded on the basis of financial need

Grants

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 Ready to Succeed Scholarship Program

(RTSS)

Grants

State Grant◦ Status notice◦ Account Access

CHAFEE Education and Training Grant Program

Ready to Succeed Scholarship Program (RTSS)

PA State Programs

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

Work Study

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

Loans

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

Loans

Subsidized vs. Unsubsidized◦ 4.66%◦ Bipartisan Student Loan Certainty Act of 2013◦ Rate is based on the US Treasury bill ◦ Most students are eligible for both

Loans

Parent PLUS loan 7.21% Credit based

Loans

Private loans◦ Available to students◦ Borrowed from a bank◦ Interest rates are variable◦ Credit based loans, most students require a

cosigner

Loans

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

Student Loan Debt

Timeline

Federal Direct Stafford Loan and Parent PLUS Loan◦ Must complete Master Promissory Note◦ Must complete Entrance Counseling

Students only◦ www.studentloans.gov

Loans

Timeline

Filling the gap that financial aid does not cover◦ Parent PLUS Loan◦ Private Loan◦ Cash payments (including 529 Plans)

Paying your bill

Financial Aid – payments from outside sources

Bursar’s Office◦ Payments out of pocket◦ PA 529 plans◦ Deferred payment plans

Making Payments

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

Helpful Websites

Questions, Comments, Concerns