2012-2013 Academic Year Jessica Petrie

Financial 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

Direct costs

Indirect costs

Direct and indirect costs combined into cost of attendance

Varies widely from college to college

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

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

Amount family can reasonably be expected to contribute

Stays the same regardless of college

Calculated using data from a federal application form and a federal formula

Cost of Attendance

– Expected Family Contribution

= Financial Need

Need Based

Non-need based

Scholarships

Grants

Loans

Employment

Money that does not have to be paid back

Awarded on the basis of merit, skill or unique characteristic

Foundations, businesses, charitable organizations

Deadlines and application procedures vary widely

Begin researching early

Research what is available in the community

Application process usually spring of senior year

Small scholarships add up!

Companies may have scholarships available to children of employees

Companies may have educational benefits for their employees

Searching for scholarships is the easy part

• www.fastweb.com

• www.yk.psu.edu

Applying for scholarships is hard, but then so is

applying for college admission

It gets much easier after your first half-dozen

applications, since you can reuse and adapt

your previous application essays

Some students don’t like essay contests and

small scholarships, making them easier to win

Money that does not have to be paid back

Usually awarded on the basis of financial need

Federal PELL Grant

Federal Supplemental Educational Opportunity Grant (FSEOG)

Teacher Education Assistance for College and Higher Education Grant (TEACH)

PA State Grant

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

Federal Direct Stafford Loan ◦ Interest rate 6.8%

◦ Subsidized (need based) and Unsubsidized (non need based) loan types available

◦ Guaranteed Loan

◦ Six month grace period before repayment begins

◦ Loan amounts determined by Federal government

Federal Direct Stafford Loan ◦ Must complete Master Promissory Note

◦ Must complete Entrance Counseling

◦ www.studentloans.gov

Federal Perkins Loan ◦ Interest rate 5%

◦ Nine month grace period

◦ Must complete Master Promissory Note

Federal PLUS Loan ◦ Parents of dependent students

◦ Credit check required

◦ Interest rate 7.9%

◦ Repayment begins 60 days after the second disbursement of the loan

◦ May have opportunity to defer payments

◦ Must complete Master Promissory Note

Alternative loans ◦ Private loans for education

◦ Credit based

◦ Most students need a cosigner

◦ Strongly recommend exhausting Federal options before going private

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

State Grant

Postsecondary Educational Gratuity Program (PEGP)

CHAFEE Education and Training Grant Program

New Economy Technology Scholarship Program (NETS) or SciTech

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

May be filed electronically or using paper form

Available in English and Spanish

May be filed at any time during an academic year, but no earlier than the January 1st prior to the academic year for which the student requests aid

For the 2012-2013 academic year, the FAFSA may be filed beginning January 1, 2012

Colleges may set FAFSA filing deadlines

Each state may set FAFSA filing deadline

Penn State filing deadline – MARCH 1

Pennsylvania filing deadline – MAY 1

www.fafsa.ed.gov

FAFSA is FREE!

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

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?

When is a student independent?

Social Security Numbers

Divorced/remarried parental information

Income earned by parents/ stepparents

Untaxed income

U.S. Income tax paid

Household size/ number in college

Real estate and investment net worth

Results sent to schools listed - ISIR

Results emailed to student if email address provided – SAR ◦ Review your results for accuracy

◦ Update estimated information

*Penn State School Code - 003329

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