The Financial Aid Process

The Financial Aid Process

Quakertown Senior High School

Guidance Department

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We will talk about:

• Federal student aid

• State student aid

• Student aid from colleges

• Scholarships from other sources

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What is Financial Aid?

• Financial aid is any assistance to help students fund their education. It can take the form of:

– Grants

– Loans

– Work-study

– Scholarships

Sources of Aid:• Federal• State• Educational Institution• Outside or Private Organizations

– Civic Organizations– Parents– Employers– Schools

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Merit versus Need-Based Aid

Merit-Based Aid = awarded to students• Strictly on the basis of merit. May be based on:

Academic Record• Skills or Talent• Involvements or Service• Does not have to be repaid, usually renewable from

year to year.

Need-Based Aid = provided on the basis of financial need. Re-evaluated each year as financial situations may change.

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Gift Aid vs. Self-Help Aid

Gift Aid: Grant/Scholarship = Aid awarded that does not have to

be repaid.

Self-Help Aid: Loans = Borrowed money that has to be repaid over a

period of time, often after the student completes their degree.

Work-Study = Money students earn by working on campus.

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The Costs of Attending College

Direct Costs: – Tuition/Room and Board

– Books/Fees

Indirect Costs:• Transportation

• Spending Money

• Childcare/other responsibilities you took care of while living at home.

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How do I apply for aid?• Federal student aid: fill out Free Application for Federal

Student Aid (FAFSA) at www.fafsa.gov All Students/Parents Must Fill Out the FAFSA!!!

• State aid: Students will be directed to the state aid questionnaire on the FAFSA confirmation page. Note: this will take to you AES (American Education Services). This is a division of PHEAA.

• School aid: contact financial aid office at schools you are considering

• Scholarships: visit scholarship Web sites (Naviance) and research private scholarships.

What does the FAFSA form do?

• The FAFSA will calculate your Expected Family Contribution (EFC) to help determine Financial Need

• How is Financial need determined?

Cost of Attendance – EFC

= Financial Need**Financial Need is the amount that the college financial

aid offices will try to assist you in meeting, not the remaining EFC

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Need Varies Based on Cost:

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• The cost of college varies greatly, but your EFC will be the same. Financial need will be different based upon school cost:

School A School B School C

Cost: 6,000 18,000 35,000

EFC 4,000 4,000 4,000

Need 2,000 14,000 31,000

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Filling out my FAFSA Form: 1st Step:

Get a PIN at www.pin.ed.gov• Your parent will need a PIN too

• Choose your own PIN or let the site choose one for you

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Filling out my FAFSA Form: 2nd Step:

Fill out your FAFSA online at www.fafsa.gov (double check address)

• Apply on or after Jan.1 but as early as possible to meet all deadlines.

• Need help? Use “Live Help” icon or call 1-800-4-FED-AID.

• Don’t forget to print confirmation page.

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Filling out my FAFSA Form: 3rd Step:

Watch for response by e-mail, from FederalStudentAidFAFSA@cpsemail.ed.gov, or by mail

• Double-check your information online at www.fafsa.gov (use your PIN to log on) or on the paper Student Aid Report mailed to you

• Correct any mistakes and update any information as necessary

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I’ve completed my FAFSA…..What now?

Watch for e-mails or letters from the schools you are considering

• Provide the schools with any additional paperwork they ask for

• Meet all deadlines or you could miss out on aid!

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What happens next?

• Each school will tell you how much aid you can get at that school (your financial aid package or award).

• Once you decide which school to attend, keep in touch with the financial aid office to find out when and how you will get your aid.

What Aid Can I Receive?

• Federal Government: – Pell Grant (gift aid)

– Stafford Loan (aka direct loan)• Must be paid back, may be subsidized

• State Government: PHEAA Grant (gift aid)

• Institutional Grants: (gift aid) Comes from the college financial aid office

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Sample Financial Aid Package  College A College B

• Tuition/Fees      5,300    21,300

• Room and Meals   8,000      8,000

• Books        900        900

• Transportation        600        600

• Miscellaneous /Personal  1,200       1,200

• Total Cost $16,000 $32,000

• Less EFC    -3,200    -3,200

• Equals Need - $12,800 $28,800    

• Financial Aid Offer (Package)

• State Grants    2,200  2,200

• Federal Grants    4,700    4,700

• Other Scholarships/Grant   1,800   14,000

• Fed. Direct Loan    2,100    3,500

• Fed. Work Study    2,000    2,000

• Total Financial Aid Package $12,800 $26,400

• Percentage Loan and Work 32% 21%

• Percentage Grant 68% 79%

• Percentage of Need Met 100% 92%  

• Add. Unsub. Direct Loan 3,400 2,00017

Other Sources of Funds

• Federal Work Study Program

• Private Business Scholarships

• Civic Organization Scholarships

• Additional college-based programs(be sure to fill out all requests for information

from your college quickly and completely)

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Where can I get more info?

• www.FederalStudentAid.ed.gov – Information about aid programs– Free scholarship search– Free college search

• 1-800-4-FED-AID– Help with the FAFSA form.

• www.Pheaa.org– Information about state aid programs

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Using Naviance to search for Scholarships

•Naviance Account: Under the “colleges tab”, scroll to “scholarships and money”. Below are a couple of resources.•Scholarship List: maintains a list of scholarships entered by the guidance office that many of our students have applied for in the past.

• National Scholarship Search: will ask you to answer some demographic questions and provide a list of national scholarships for which you may qualify.