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What is financial aid

Cost of attendance (COA)

Expected Family Contribution (EFC)

What is financial need

Categories, types, and sources of financial aid

Topics We Will Discuss

What is Financial Aid

Financial aid is funds provided to students and families to help pay for postsecondary educational expenses.

What is Cost of Attendance (COA)

• Direct costs– (Tuition, Fees, Room & Board)

• Indirect costs – (Books, Transportation, Supplies)

• Varies widely from college to college

What is the Expected Family Contribution (EFC)

Is the number that is used to determine your eligibility for federal student financial aid. (Amount family can reasonably be expected to contribute>)

Calculated using data from the Free Application for Federal Student Aid (FAFSA) and a federal formula

Two components – Parent contribution– Student contribution

Stays the same regardless of college

What is Financial Need?

Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need

Example:

$20,000 (COA) 2,000 (EFC)$18,000 (Financial Need)

Categories of Financial Aid

Need-based Non-need-based

Types of Financial Aid

Scholarships Grants Loans Employment

Scholarships

Money that does not have to be paid back

Awarded on the basis of merit, skill, or unique characteristic

Grants

Money that does not have to be paid back

Usually awarded on the basis of financial need

Loans

Money students and parents borrow to help pay college expenses

Repayment usually begins after education is finished\ Only borrow what is really needed

Employment

Allows student to earn money to help pay educational costs

A paycheck; or Non-monetary compensation, such as room and board

Sources of Financial Aid

• Federal Government

• Private Sources

• Civic/Social Organizations and Churches

• Employers

Federal Government

• Largest source of financial aid

• Aid awarded primarily on the basis of financial need

• Must apply every year using the Free Application for Federal Student Aid (FAFSA)

Common Federal Aid Programs

Federal Pell Grant

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

Federal Supplemental Educational Opportunity Grant (FSEOG)

Federal Perkins Loan

Federal Work-Study

Stafford Loans

Plus Loans

Common Federal Aid Programs

Example: first-year student in 2011-12 (Maximum amounts allowed) Federal Pell Grant: $5,500

Academic Competitiveness Grant: $750

TEACH Grant: $4,000

Federal Stafford Loan: $5,500

Federal Perkins Loan: $5,500

Federal Supplemental Educational Opportunity Grant: (FSEOG) $4,000

Federal Work-Study: depends on funds available at school

Federal PLUS Loan (for parents): COA minus other aid received

Pennsylvania Higher Education Assistance Agency (PHEAA) Requires Pennsylvania Residency

Award aid on the basis of both financial need and merit

Use information from the FAFSA

Deadline for PA State Grant Application is May 1st for State Grant recipients and all non 2011-12 grant recipients in degree programs. All other applicants August 1st.

Private Sources

Foundations, businesses, charitable organizations

Civic/Social Organizations and Churches

Employers

o Deadlines and application procedures will varyo Begin researching private aid sources earlyo Research what is available in the communityo Companies may have scholarships available to the

children of employees

Federal Programso www.studentaid.ed.govo www.fafsa.govo www.fafsa4caster.ed.gov

PA State Programso www.pheaa.orgo www.educationplanner.org

Private o www.mystudentedge.como www.blackexcel.org/100minority.htm

Web Resources

Thank you !

Anthony R. Johnson, M.S.