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2011 Counselor Workshop
WELCOME!
Today’s Presenters:
From PASFAA:
Insert Name Here
Insert Affiliation
From PHEAA:
Insert Name Here
Insert Access Partner Title/region
About This Workshop…
• Jointly Sponsored By PHEAA & PASFAA
• ACT 48 Credits Can Be Earned
• Your Questions And Participation Are
Encouraged
• Information Provided Is As Accurate As Possible
PA School Services
Pennsylvania
School
Services is
comprised of
13 Higher
Education
Access
Partners
strategically
located
throughout
the state.
Access Partners provide services to post secondary schools, teachers,
counselors, administrators, community agencies and
students and families.
Who are
Pennsylvania Higher Education Assistance Agency
Pennsylvania Association of Student Financial Aid Administrators
Collaboration:
[kuh-lab-uh-rey-shuhn]
The act of collaboration; to work, one with
another; cooperate
PHEAA Products & Initiatives
PA Guide to Student Aid – Free, Comprehensive Student
Aid Information
Financial Aid Night and FAFSA Toolkits – Free Materials
With Strategies To Make Your Events Successful
Two Options to Order these and Other Materials:
1. www.pheaa.org
2. Contact your Higher Education Access Partner
“Before anything else, preparation is the key to success.”
Alexander Graham Bell
On Line High School Access
This feature allows high schools to electronically access:
• Certificate of Merit recipients from your school
• Students who were sent financing information
• Students who have filed a FAFSA and the State Grant Form
• Reports with names & address for mailings
• High School contact information
Real time data
No more paper!
http://www.pheaa.org/raahs/index.html
Complete & submit the
Remote Access Agreement –
requires a “wet” signature
Identify
Authoritative
Source(s) –
Guidance
Counselor(s)
recommended.
This form can
be faxed.
Emails confirm when the Remote Access Agreement is fully executed
and the Authoritative Source is approved.
A User’s Guide is also emailed.
The first BPAMS Screen –
log in here
Enter the Username
& Password
supplied by PHEAA
here
PageCenter - Locate your
school’s information &
options here
Enhanced www.educationplanner.org
PASFAA represents more than 250
Pennsylvania educational institutions,
lenders and organizations
Find more information
at www.pasfaa.org
The Application Process
• FAFSA
• Pennsylvania State Grant
Account Access
• CSS Financial Aid PROFILE
• Institutional Applications
The Application Process
The FAFSA
• The Free Application for Federal Student Aid
used to determine eligibility for:
» Federal programs (Pell Grants, work-study, and
student loans
» State programs (PA State Grant, state-work study and
other special programs
» School programs (need-based grants and
scholarships)
FAFSA – When to Apply
• The FAFSA may be filed beginning January 1 of
the upcoming award year
» Federal deadline – June 30th
» Institutional funds – individual deadlines set by
schools
» Families should be aware of various state and school
deadline
» If necessary, families may estimate based on prior
year tax forms
Documents Needed for Completion
• Social Security numbers
• Alien registration or permanent resident card
• Drivers license (optional – student only)
• Federal income tax return
• W-2 forms
• Current bank statements
• Current business and farm records
• Records of any stocks, bonds and other investments,
(529 accounts)
• Additional untaxed income tax records
Ways to Apply
• FAFSA-on-the-Web (FOTW) www.fafsa.gov
» Most preferred - available in English and Spanish
• A Paper FAFSA
» Downloading from www.federalstudentaid.ed.gov
» English and Spanish / Call 1-800-433-3243
• A Renewal FAFSA - option to pre-fill new
application with data from prior year
Ways to Sign the FAFSA
• Electronic signature
» Personal Identification Number (PIN)
» To choose a PIN – www.pin.ed.gov
» A parent PIN allows a parent of a dependent student
to sign the FAFSA
» Electronic signatures – decreases processing time
• A Paper FAFSA
» Must be signed and dated by the student and one
parent and mailed via US Postal Service
FAFSA Processing - Data Matches
• Data transmitted to Federal Student Aid’s
Central Processing System (CPS)
» Checks for missing or conflicting information
» Calculates EFC
» Performs database matches (SSA, Homeland
Security, NSLDS, SS, VA)
» Student Aid Report (electronic / paper)
Helpful Tips
• Avoid common mistakes:
» Go to the correct website
» Select the correct year’s FAFSA
» Use the correct SSN
» Use the correct PIN
• Reporting Assets
» Value reported as of the time of application
» 529 Plans reported as parental assets
FAFSA Changes for 2012-13
• At the time…..
FAFSA Resources
• FAFSA4caster – free online tool used to provide
early estimate of eligibility for federal aid
www.FederalStudentAid.gov
• FAFSA Demonstration Site – a learning tool
»Counselors can complete a FAFSA, make corrections
and submit (information not sent to CPS)
Additional Applications
• College Scholarship Service (CSS) Profile
» Submitted only if a school requires it
» Application fee required
» May be required by some scholarship organizations
◦ www.CollegeBoard.com
• Institutional Applications
» Required by some schools in addition to the FAFSA
» Institutional requirements are usually posted on their
websites
PA State Grant Form –
“Account Access”
First time State Grant applicants
must create an account & complete the SGF
1.SGF is linked from FAFSA – Form must be signed and
mailed to PHEAA
2.Complete the process at www.pheaa.org (will be taken to
AES to create account)
3.Complete a paper SGF
State Grant Form / Account Access
On the FAFSA
confirmation page,
students will find a
link from which
they will be given
the option to
transfer their FOTW
data to their state Pennsylvania residents – Complete the State Grant application
Click here if you want to apply for the Pennsylvania State Grant.
grant application.
Pennsylvania residents – Complete the State Grant application
Click here if you want to apply for the Pennsylvania State Grant.
Account Access - AES
Quiz!
The Application Process
Q1: Answer is C – The Free Application for Federal Aid
(FAFSA) is a form used to apply for financial aid.
Q2: Answer is E – All of the above.
Q3: Answer is C – Students cannot print the FAFSA
worksheet and submit it to a school.
Q4: Answer is A – There are other ways to sign the
FAFSA.
Q5: Answer is E – All of the above.
Federal Student
Aid Programs
General Eligibility Requirements
• To be eligible for federal student aid, a student must:
» Submit a FAFSA by the end of the academic year for
which funds are being requested
» Have a high school diploma, GED, pass an “ability to
benefit” test, or satisfactorily complete a homeschooled
program
» Be enrolled as a regular student in an eligible degree or
certificate program at an eligible institution
» Be enrolled on at least a half-time basis to be eligible for
Federal Direct student and parent loans
» Make satisfactory academic progress
General Eligibility Requirements
» Sign certifying statements as to the proper use of federal student
aid funds
» Have a valid Social Security number
» Be a U.S. citizen or eligible non-citizen
◦ An eligible non-citizen is someone who is a permanent
resident with an I-551 Card (green card) or an I-94 eligible for
federal financial aid
◦ Students on an F1 or F2 student visa, a J1 or J2 exchange
visitor visa, or a G series visa are NOT eligible non-citizens
and NOT eligible for federal financial aid
» Be registered with Selective Service if male age 18-25
» Not be in default or pending default on any
educational loan.
Federal Pell Grant
• Pell Grant – the foundation of student aid
» Grants go to financially needy students
» The award amount is directly tied to the Expected
Family Contribution (EFC)
» Award amounts set annually by the USDE - maximum
award for 2011-2012 is $5,550 per year
• Student must not have a prior baccalaureate degree
• Students receiving the Pell Grant after July 1, 2008
eligible for up to 18 semesters
• Students must maintain satisfactory academic
progress as determined by the school
Campus-Based Programs
• Programs are administered by the Financial Aid
Office at eligible participating schools
» Participating schools receive allocations from the
federal government
» Each school determines how it will award its funds
» Student eligibility, and award amounts will vary from
school to school
Three Campus-Based Programs
• The Federal Supplemental Educational Opportunity Grant
Program
» Awards of up to $4,000 per year for exceptionally needy
students - priority is given to Pell Grant recipients
• Federal Perkins Loan Program – need-based loans for both
undergraduate and graduate students
» Maximum annual loan amount is $5,500
» Repayment begins nine months after the student graduates or drops to less
than half-time status – 5% fixed interest rate
• The Federal Work-Study (FWS) Program
» The school determines the award amount and the wage rate, must pay
at least the federal minimum wage (not counted as income)
Federal Direct Loan Program
• Effective July 1, 2010, all federal student loans
are made directly through the U.S. Department
of Education
• Students and parents may apply for Direct
Stafford and Direct PLUS loans through their
post-secondary school’s website or at
www.studentloans.gov.
Direct Stafford Loans
• Direct Stafford Loans
» Loans are made in the name of the student
» There is no credit check and no cosigner requirement
» Student borrowers make no principal payments while
enrolled
» Repayment begins six months after the student
ceases half time enrollment
Direct Stafford Loans
• Subsidized Stafford Loan
» Interest is subsidized by the federal government
» Current interest rate for undergraduate students:
◦ 3.4% fixed rate (7/1/11 to 6/30/12)
◦ 6.8% fixed rate (7/1/12 if this rate provision expires)
• Unsubsidized Stafford Loan
» Interest is charged to the borrower
» Can be paid quarterly or added to the principal
» 6.8% fixed rate on all loans
Undergraduate Loan Limits
Grade Level Base Amount Additional Amount Total Amount
1st Year: $3,500 $2,000 $5,500
2nd Year: $4,500 $2,000 $6,500
3rd, 4th, 5th Years: $5,500 $2,000 $7,500
•The “Base” amount can be either subsidized or unsubsidized;
the “Additional” amount is unsubsidized
•Aggregate borrowing is $31,000, with a maximum of $23,000
subsidized
Note: Students borrowing the maximum loan amount each year
will only have $4,000 in eligibility left for a fifth year.
Additional Loan Funds
Additional unsubsidized loan funds are an option for
independent students, and dependent students whose
parents cannot borrow through the PLUS program
Grade Level Base Amount Additional Amount Total Amount
1st Year: $3,500 $6,000 $9,500
2nd Year: $4,500 $6,000 $10,500
3rd, 4th, 5th Years: $5,500 $7,000 $12,500
Aggregate borrowing is $57,500, with a maximum of
$23,000 subsidized
Loans for Graduate Students
Graduate students may receive Stafford Loan funds in the following
amounts:
Grade Level Base Amount Additional Amount Total Amount
Each Year $8,500 $12,000 $20,500
•Aggregate borrowing, including all undergraduate loans, is $138,500
•Effective July 1, 2012 all graduate-level Stafford loans will be
unsubsidized, and all loans have a fixed interest rate of 6.8%.
Repayment Provisions
• Students may choose one of several repayment
plans:
» Standard repayment – fixed monthly payments for up to 10
years.
» Graduated repayment – gradually increase (usually every two
years); the loan must be repaid in 10 years
» Extended repayment – graduated monthly payments over a
period of time not to exceed 25 years
*Only available to students with a Direct Loan balance
exceeding $30,000
Repayment Provisions
• Income-contingent repayment (ICR) – monthly payment
is adjusted each year based on annual income, family
size, and outstanding balance on Direct Loans
» After 25 years, any unpaid balance will be forgiven but may be
subject to federal income tax
• Income-Based Repayment (IBR) – monthly payment is
capped at a certain amount based on income and family
size
» After 25 years any remaining balance will be forgiven
» Beginning in 2014, the repayment term is shortened
to 20 years
Direct PLUS Loans
• Interest rate is fixed at 7.9% - begins to accrue when the funds are
disbursed
• Repayment begins when loan is fully disbursed
» Parent borrower may request forbearance and make payments on the
interest only during the time the student is enrolled.
» Repayment period can range from 10 to 25 years
» Three payment options – standard, graduated, or extended
• Borrowers may change plans at any time - no penalty for early payment
• Direct Loan Consolidation is available to combine all PLUS loans of one
borrower and extend the repayment term to 30 years
• Beginning in 2011-2012, parents will be required to file the FAFSA in order
to borrow through the PLUS Loan program
• A separate PLUS application must be filed for each child
Direct PLUS Loans
• Loans available to the biological or adoptive
parents of dependent students
» Either parent (or both parents) may borrow on behalf of the student.
» There is no provision for any other person, such as a relative, to receive
a PLUS loan.
» A credit check is required; however, there is no debt-to-income check or
credit scoring.
» There is no annual or aggregate limit - only limiting factor is Cost of
Attendance (COA) minus financial aid received.
» The interest rate is fixed at 7.9% (Prior FFELP PLUS loans are fixed at
8.5%). Interest begins to accrue when the funds are disbursed.
Direct GRAD PLUS Loans
• PLUS loans are available to graduate and professional
students
» A credit check is required, but a cosigner can be
added
» The loan limits, interest rates, and repayment
provisions of regular PLUS loans
» The FAFSA must be filed
» Maximum eligibility for Direct Subsidized and
Unsubsidized Stafford Loans must be determined
before a PLUS loan can be approved
Direct Consolidation Loans
• Available for students and parents to combine multiple
loans into one
» Student and parent loans must be kept separate
» Only federal education loans can be considered
• The fixed interest rate is the weighted average of all
loans
• Borrowers may take up to 30 years to repay the loan
• Borrowers should consult with school or federal officials
ADDITIONAL FEDERAL PROGRAMS
• Teacher Education Assistance for College and
Higher Ed (TEACH) Grant
» Student must be enrolled as an undergraduate, post-baccalaureate, or
graduate student in a participating postsecondary institution
» Must be enrolled or plan to enroll in coursework required to become a
teacher
» Must meet certain academic requirements
» Must annually sign agreement to teach full-time in high-need field in a
public or private elementary or secondary school that serves low-income
students
» Must teach for at least four academic years within eight calendar years
of completing (or ceasing) the program
» Grant is up to $4,000 each year
For additional information, visit
http://studentaid.ed.gov/PORTALSWebApp/students/english/TEACH.jsp
Post 9/11 GI Bill Benefits:
• Applies to veterans who served in active duty after September 11, 2001 –
benefits include:
» Full tuition and fees
» Monthly housing/living stipend,
» $1,000 allowance per year for books and supplies
» Possible relocation allowance, and option to transfer benefits to family members
• Tuition is covered for four full years at a state university - participation is
voluntary
» Veteran may attend private school but tuition will be limited to that of an in-state public
college.
• States may add additional benefits.
• Reserve and National Guard members are eligible if they were activated
after 9/11 for at least 90 days under Title 10
(by President of U.S.), but not if activated for a
state emergency.
Yellow Ribbon Program
• Meant for schools whose tuition and fees exceed the
highest in-state undergraduate public institution
» Makes these schools just as affordable as in-state public
schools.
» Schools may voluntarily participate with the Veterans
Administration (VA) and choose the amount of tuition and
fees they will contribute toward veteran’s costs
» The VA will match that amount and send a check directly to
school.
» Currently 96 colleges in PA participate
» For additional information go to
http://gibill.va.gov
Iraq and Afghanistan Service Grant
• For students whose parent or guardian was a member of
the U.S. Armed Forces and died as a result of service
performed in Iraq or Afghanistan after September 11,
2001 may be eligible to receive the Iraq and Afghanistan
Service Grant
» Must be ineligible for a Federal Pell Grant due only to having
less financial need than is required to receive Pell funds
» Under age 24, or be enrolled in college at least part-time at the
time of the parent’s or guardian’s death
» Grant award equal to the amount of a maximum Pell Grant for
the award year – not to exceed the cost of attendance
for that award year
Tax Credits
• American Opportunity Tax Credit - a refundable tax
credit that expanded the previous Hope Scholarship in
four ways:
1. Greater numbers of taxpayers are eligible
2. Additional higher education expenses can be included
3. The amount of the tax credit is greater
4. The credit can be claimed for four years rather than just two
• Currently in place for tax years 2009 through 2012
• Families needing more information on tax benefits for
education should review IRS Publication 970
at www.irs.gov.
Tax Credits
• Lifetime Learning Credit – may be claimed for
the qualified tuition and related expenses of the
students in the taxpayer’s family
• A taxpayer cannot claim both a Lifetime
Learning Credit and a Hope Credit for the same
student in the same year
• Families needing more information on tax
benefits for education should review IRS
Publication 970 at www.irs.gov.
Loan Forgiveness Programs
• Federal Teacher Loan Forgiveness Program – intended to encourage
individuals to enter and continue in the teaching profession
» Borrowers must teach for five consecutive full academic years in certain
elementary or secondary schools
» Other eligibility guidelines and parameters must be met:
www.studentaid.ed.gov.
• Public Service Loan Forgiveness Program – intended to encourage
individuals to enter and continue to work full time in public service jobs
» Borrowers must have made 120 payments under certain payment plans
while working in certain types of public service jobs
» Other eligibility guidelines and parameters must be met:
www.studentaid.ed.gov.
• Students may also qualify for employer-based loan forgiveness
as part of the hiring process or as an employee benefit
Quiz!
Federal Student Aid Programs
Q1. Answer is C – Must make satisfactory progress.
Q2. Answer is B – Expected Family Contribution
(EFC).
Q3. Answer is D – Award amounts vary by
institution.
Q4. Answer is E – All of the above.
Q5. Answer is A – Private, “alternative loans” are not
eligible for consolidation.
Pennsylvania State
Student Aid Programs
Pennsylvania State Grant
• A Pennsylvania State Grant is based on financial need
and other requirements
• The amount of the grant is determined, in part, by the
cost of attendance at the school:
Community College $2,313
State University $3,700
State Related $3,978
Private Institution $4,348
PA State Grant
• Applicants must complete the FAFSA by PA deadlines:
» May 1, 2012 (date received) for renewals and first
time applicants, except community college non
renewals
◦ And first time applicants must complete the State
Grant Form in Account Access
» August 1, 2012 (date received) for all other applicants
Other Programs Administered by PHEAA
• State Work Study Program (SWSP)
• Educational Assistance Program (EAP)
• Post Secondary Education Gratuity Program (PEGP)
• Chafee Education and Training Grant Program
• Blind and Deaf Student Scholarship
• Partnerships for Access to Higher Education
• New Economy Technology Scholarship – renewals only, future
funding has been eliminated
• Pennsylvania GEAR UP Scholarship
Additional Funding Sources
• Scholars in Service to Pennsylvania
» Americorps program, students serve and earn,
awards can be used for current or future educational
expenses or to repay student loans
• Office of Vocational Rehabilitation
» State agency, services include financial support (gift
aid) for higher education, completed FAFSA is
required for consideration
Quiz!
State Student Aid Programs
Q1. Answer is E – All of the above.
Q 2. Answer is D – A private institution.
Q 3. Answer is B – A student can be less than
full time.
Q 4. Answer is D – EAP is still funded.
Q5. Answer is E – all of the above.
Financial Need
Cost of Attendance (COA)
• Includes the following:
» Tuition and Fees
» Room and Board
» Books and Supplies
» Transportation expenses (even if student lives on campus)
» Miscellaneous Personal Expenses
» Child care and special equipment purchases – may
be considered
Families should recognize
direct vs. indirect costs
Expected Family Contribution (EFC)
• The EFC is calculated using a federal formula
» Considers a family’s income, assets, and other factors
• The EFC is the amount a family can expect to
pay toward college expenses each year
» It is rarely the amount a family actually pays
• The EFC remains constant regardless of the
school the student attends
Major EFC Factors
Factors in determining the EFC for dependent
students are:
• Parental income and assets
• Student income and assets
• Family size and number of children in college
• Age of older parent
NOTE: Debt of any kind such as mortgage payments, credit
cards, auto payments, etc., is not considered in the
calculation of the EFC.
Calculating an EFC
• The EFC is income driven – Assets have minimum affect
» Home, personal property, qualified retirement funds, and value of
life insurance excluded from assets
» Student income contribution = 50% of amount over $6,000
• Parent asset contribution approximately 6%
» Asset protection allowance (based on age of older parent,
or the parent if single parent household)
• Student asset contribution = 20% of assets
• Parent contribution divided by number of children in
college at the same time
• Parent contribution + student contribution = EFC
Special Processing Formulas
• Two other formulas eliminate all assets from the
EFC calculation:
» Simplified Formula applies when:
◦ Anyone in household receives means-tested benefits
(SSI, food stamps, free/reduced lunch, TANF, WIC)
◦ Parent filed or eligible to file a 1040A or 1040EZ
◦ Parent is a dislocated worker, and prior year income is less
than $49,999 or less
» Automatic Zero EFC – same conditions as above but
annual income 32,000 or less
SAMPLE – EFC Calculations
• This a basic and unofficial sample EFC:
» Family of four with one in college
» FAFSA4caster used
» No assets to report
Income EFC Income EFC
$25,000 $0 $50,000 $3,156
$75,000 $9,536 $100,000 $17,881
SAMPLE – EFC Calculations
• Parent or student assets and income impact
these examples with income of $50,000 or more:
Income EFC Income EFC
$25,000 $0 $50,000 $3,156
$75,000 $9,536 $100,000 $17,881
» If $100,000 in parent assets, add ~$3,000 to EFC
» If $2,500 in student assets, add ~ $500 to EFC
» If $8,000 in student income, add ~$600 to EFC
Calculating Financial Need
Schools/colleges receive financial aid information and
calculate financial need.
School cost……………………. $26,000
EFC…………………………….. - 3,000
Financial need……………….. $23,000
Financial Aid Office “packages” based on financial
need and available funding (varies from school to
school).
Financial aid award letter sent to student.
Calculation of Financial Need
• The term “financial need” means different things to different
people:
» Financial Aid Office – need is defined as COA minus EFC
» To the family, often need defined as COA minus all
financial aid they will receive
» Their “GAP” is the amount to be covered through income,
savings or additional borrowing
» A family can also define need as the cost of education
minus gift aid – reflecting the family’s actual contribution
(AFC)
Meeting Financial Need
• Packaging – process by which schools make
awards and meet need
• The following types of financial aid are used in the
“packaging” process:
» Federal and state grants
» Employment (FWS and institutional employment)
» Institutional need and merit based grants and scholarships
» Private scholarships
» Loans (Perkins Loans;
Stafford and PLUS)
Reviewing Your Financial Aid Package
• Key Points to Consider
» The EFC and Pell Grant remains the same
» The PA State Grant increases as COA increases
» Campus-Based Aid (Perkins, FSEOG, FWS) vary
» Actual Family Contribution can be met through
savings, income or additional borrowing
• Be sure you understand your aid “package”
and address all questions to the school’s
Financial Aid Office
Other Alternatives for Meeting
Need
• Private Education Loans
» Also known as “alternative loans”
» Not regulated by the federal government
• Institutional or private payment plans
» Tuition payment plans that are typically interest free
» May be an affordable means to manage college costs
• Home Equity Loans
» Comparing interest rates - these loans may be more
attractive than PLUS loans
» Explore the risks
Other Alternatives for Meeting
Need
• Existing family resources
» Savings and 529 plans
» Private scholarships
• Students should use FREE scholarship search
sites
» Beginning in the sophomore or junior year
» EdPlanner - www.edplanner.org
» Avoid scholarship scams
Putting Square Pegs in Round
Holes
• Professional Judgment (PJ)
» Schools can consider unusual circumstances not reported
on the FAFSA
• The following are some of the cases in which PJ
applies:
» Dependency override
» Reduction of Income
» Unusually high cost of attendance
» Other financial difficulties
» A parent enrolled in college
Quiz!
Financial Need & Unusual Circumstances
Q1. Answer is D – Apartment furnishings are not
included in COA.
Q2. Answer is B – Tax exemptions are not a factor for EFC.
Q3. Answer is E – All of the statements are true.
Q4. Answer is C – Off Campus, non-Federal Work Study
employment.
Q5. Answer is A – PJ does not address parents’
refusal to provide financial information.
Case Studies…
Please be on the lookout for our
survey in your email.
Your evaluation of this Workshop is
appreciated and valued!
2011 Counselor Workshop
Thank You For Attending!
