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
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