Pequea ValleyPequea ValleyHigh SchoolHigh School

Financial Aid Financial Aid NightNight

Goals of Financial AidGoals of Financial Aid

ACCESS to

postsecondary education

CHOICE among

postsecondary institutions

Principles of Financial AidPrinciples of Financial Aid

Families will be treated equitably and consistently by the need-analysis formula.

Student and parent have primary responsibility for funding postsecondary education to the extent they are able.

Role of the Financial Aid OfficeRole of the Financial Aid Office

Determine final eligibility for need-based aid

Package aid

Send award letter which details:Types and amounts of aidDisbursement procedureConditions of awards

How Aid is AwardedHow 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 AidTypes of Aid

Gift Aid• Scholarships• Grants

Self-Help• Loans• Employment

Sources of AidSources of Aid

Federal

StateInstitutionalPrivate

Federal Financial Aid ProgramsFederal Financial Aid Programs

Pell Grant• Foundation for federal financial

aid

• Must submit FAFSA

• EFC and COAdetermine eligibility

• $5,550 maximum 2012-13

Federal Financial Aid ProgramsFederal 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 LoansFederal Direct Student Loans

Lender is the Department of Education

• Subsidized - 3.4%• Unsubsidized – 6.8%

Federal Stafford Loan LimitsFederal Stafford Loan LimitsYear 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:Requirements to receive the additional loan:

1. Must be an Independent Student (and request the additional amount by contacting the Office of 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 LoanFinancial 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 Aid2. Student must request the additional amount by contacting the Office of Financial Aid

Federal Stafford Loan Aggregate Limits

Undergraduate Education

(Dependent Student) $31,000

($23,000 maximum Subsidized Loan)

Undergraduate Education

(Independent Student OR Dependent Students whose

Parents were denied PLUS Loan)

$57,500($23,000 maximum Subsidized Loan)

Graduate / Professional Education

$138,500Year in College

1st year 0 – 29.9

2nd year 30 – 59.9

3rd year 60 – 89.9

4th year 90 +

State Financial AidState 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 AidInstitutional Aid

May be grants, scholarships, loans, employment or discountsMay require institutional application and/or other supplemental financial aid forms

Deadline dates are very importantEach institution varies in resources available for awards, percentage of need met, & what formula they useContact the Admissions or Financial Aid Office at each institution being considered

How to ApplyHow to ApplyFAFSA 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 SCHOOLSOR IN COLLEGE FINANCIAL AID OFFICES

IF YOU WISH TO HAVE A PAPER COPY, CONTACT FEDERAL STUDENT AID AT 1-800-433-3243

Applying For AidApplying 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 FormsAdditional Forms

Non-Custodial Parent Statement

Business and Farm Supplement

Institutional Aid Application

CSS/Financial Aid Profile

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

Applying for Aid Applying for Aid (Cont.)(Cont.)

Family Educational Rights and Family Educational Rights and Privacy Act (FERPA)Privacy Act (FERPA)

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).

All financial information submitted is protected.

Data is treated as confidential.

Special CircumstancesSpecial 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 OverrideLiving 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 institutionsUnable to locate parents

Professional JudgmentProfessional JudgmentReduction in incomeExtraordinary medical or dental expensesUnreimbursed child care expensesDisability expensesTuition 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 STATUSINDEPENDENT STATUSThe following questions must be answered to determine The following questions must be answered to determine studentstudent’’s status – if student can answer s status – if student can answer ““yesyes”” to any of to any of

the following questions, s/he is independentthe 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%

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

INDEPENDENT STATUSINDEPENDENT STATUS

PROOF OF DECEASED PARENTS, FOSTER CARE, OR DEPENDENT / WARD OF COURT MAY

BE REQUIRED BY FINANCIAL AID OFFICE

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.”

INDEPENDENT STATUSINDEPENDENT STATUS

PROOF OF COURT DECISION MAY BE REQUIRED BY FINANCIAL AID OFFICE

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?

INDEPENDENT STATUSINDEPENDENT STATUS

TIPS on Completing FAFSATIPS 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 ProcessNotification 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 someitems 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.

VerificationVerificationWhat 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

Student Contribution (SC) +

Parent Contribution (PC) =

E F C

EExpected xpected FFamily amily CContributionontribution

One common misconception people have about the EFC is One common misconception people have about the EFC is that it is the amount of the outstanding balance to be paid that it is the amount of the outstanding balance to be paid

to the university for the year. The EFC is actually a to the university for the year. The EFC is actually a number determined by a formula using the information number determined by a formula using the information

supplied on the FAFSA. It is used by financial aid supplied on the FAFSA. It is used by financial aid professionals to determine amounts of eligibility for need-professionals to determine amounts of eligibility for need-

based financial aid programs.based financial aid programs.

Cost of AttendanceCost of Attendance

Direct Costs (billable)

Tuition Fees Room Board

Indirect Costs (non-billable)

Personal Expenses Transportation Books and Supplies

Millersville University Cost of EducationMillersville University Cost of Education

(per year 20012-2013)(per year 20012-2013)Educational Expense

ItemsPA Resident

StudentsNon-PA

Resident StudentsTuition & Fees $ 8,242 $ 17,884

Room $ 5,378 $ 5,378

Board (meal plan) $ 3,856 $ 3,856

Tuition Tech Fee $ 358 $ 542

TOTAL BILLABLE CHARGES $17,834 $27,660Books & Supplies $ 1,000 $ 1,000

Personal Expenses $ 1,808 $ 1,896

Transportation $ 800 $ 800

TOTAL COSTS $21,442 $ 31,356

Calculating Financial NeedCalculating Financial Need

Cost of Attendance $21,442

Less EFC (3,174)(determined from information provided on the FAFSA)

Equals NEED $18,268

*Please note, the EFC listed here is for sample purposes only*Please note, the EFC listed here is for sample purposes only

Will All My Need Be Met?Will All My Need Be Met?

Financial need $18,268Minus any aid (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*Please note, the aid amount listed here is for sample purposes only

Comparing Aid PackagesComparing Aid PackagesSchool A School B School C

Cost $12,500 $18,500 $42,500

EFC 3000 3000 3000

Need $9,500 $15,500 $35,500

Package #1 $7,000 grants

$5,500 loans

Total = $12,500

$9,100 grants

$9,400 loans

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

Total = $5,500

$6,000 grants

$4,000 loans

Total = $10,000

$11,200 grants

$9,000 loans

$1,500 work study

Total = $21,700

Schools will have varying amounts of money available to be awarded in Schools will have varying amounts of money available to be awarded in scholarships. Federal grants and federal loans will most often be the scholarships. Federal grants and federal loans will most often be the same at each school. The EFC will be the same for each school.same at each school. The EFC will be the same for each school.

College ExpensesCollege ExpensesThe 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 BalanceIt is a good idea to begin planning early for how much you will owe – do 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 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 Financial Aid Office enough time to process any additional aid. Most

schools will have estimated or actual costs available as early as Februaryschools will have estimated or actual costs available as early as February

Satisfactory Academic Progress (SAP)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:

Check with the Office of Financial Aid for their policy on SAPfor 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

•Stafford Loan •Perkins Loan •PLUS Loan

• Pell Grant • SEOG • Work-study

•Academic Competitiveness Grant •National SMART Grant •Graduate PLUS Loan

Alternatives for Meeting NeedAlternatives 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, Alternatives for Meeting Need, continuedcontinued

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 InternetInformation 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 questionshttp://www.finaid.org/questions/askadvisor.phtml

On-Line ServicesOn-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 BenefitsHigher 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 ScamsScholarship ScamsAn 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.)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 Timeline For Making College Happen -- Financially!Happen -- Financially!

FALL SENIOR YEAR

Continue looking for outside scholarshipsTalk to the financial aid administrators

at the colleges being considered

WINTER SENIOR YEARParents and students complete federal

tax returns ASAP after January 1stComplete the FAFSA anytime after January 1st – be sure to meet the earliest deadline of the schools being consideredSubmit all financial aid applications and required documentation to each college

Timeline (cont.)Timeline (cont.)SPRING SENIOR YEAR

Begin receiving financial aid packages Review and Compare packagesInform financial aid offices of any unusual circumstances which may have arisen in your familyDevelop a plan for how to pay the “bottom line” (costs that are not covered by financial aid)

SUMMER BEFORE COLLEGEInquire about on and off campus jobsComplete loan applications and promissory notesApply for PLUS/Alternative Loans if you plan to use either to help cover your outstanding balanceKeep 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 TipsFinancial 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 Financial Aid Tips (cont.)(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 out-of-pocket expenses (costs not covered by aid).

Above all – ASK QUESTIONS!!! This process can seem confusing and overwhelming. Anytime you are uncertain about anything – ASK!!!

Thank You for ComingThank You for Coming

Best wishes for a successful academic career!