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					Financial Aid 101


     Presented by Palisades High
      School Counseling Office
      Projected College Cost
    Projected Average Costs for four years of tuition, room, board, and fees
    at Public Universities




Source: Wells Fargo
Calculating College Costs
   Tuition
   Fees (health, activity, lab, computer access)
   Room
   Board
   Books
   Supplies
   Personal expenses
   Transportation
    Examples of College Costs
                    BCCC      Bloomsburg       Lehigh

Tuition & fees      $ 4,004   $ 7,456      $ 39,780

Room & board*       $ 1,500   $ 6,890      $ 10,520

Books & supplies*   $ 1,350   $ 1,200      $ 2,010


Personal Expenses   $ 1,350   $ 3,000      $ 2,500

Transportation      $ 2,600   $ 1,602      $    500

Total Costs         $10,804   $ 20,148     $ 55,310
Paying for Higher Education
Where the money comes from
 Family

 Student

 Federal government

 State government (PHEAA)

 Institutional Aid (college)

 Private sources (employer, fraternal
  organizations)
     The Trends
                       Federal Loans        The trend in
4%         4%                                financial aid has
                       Institutional &       been a growing
                       Other Grants          reliance on
      6%    6%         Federal Pell          borrowing for
                       Grants                college.
11%
                       State Grants         During the last 25
                 50%                         years, financial aid
19%                    Federal Campus-       has changed from
                       Based
                                             grant-based to
                       Other Federal         loan-based.
                       Programs
                       Non Federal
                       Loans
            How to Calculate
             Financial Need
Cost of school – EFC =   Demonstration of
  Financial Need         financial need does
                         not guarantee that
                         all of the need will
                         be met through
                         financial aid.
        EFC
   EFC is determined through a federal formula
   It does not take into account credit card debt,
    mortgage, car loans, disposable income
   Considered as a reasonable expectation of what a
    family should pay toward a child’s educational
    expenses
   An online tool is available to help you estimate
    the EFC
       FAFSA4caster available at
        www.FederalStudentAid.ed.gov
    Types of Financial Aid
   Gift Aid (does not have to be paid back)
       Scholarships
       Grants
   Self – Help
       Loans
       Work Study


A Financial Aid Package may include both types
 Scholarships
Contact Colleges
Check parent & student clubs,
 organizations, unions, employers
Check our website
Check other internet sites:
  www.fastweb.com
  www.collegeboard.com
  www.finaid.org
    Need Based vs. Merit Based Aid
       NEED BASED AID               MERIT BASED AID
   Eligibility is determined      Awarded by colleges
    by evaluation of                and private sources
    family’s finances              Include academic,
   Done by application             leadership, artistic,
    (FAFSA)                         music, single parent
   May require additional          and returning adult
    forms (CSS profile)             student awards
Gift-aid vs. Self-help
                                                    Self-help
                                                    Gift Aid

100
                                             24
 80    33
                                51    59
                   60                              63
 60
             90           98
 40                                          76
       67
 20                40           49    41           37
             10            2
  0
      Bucks Bucks ESU      ESU   PSU   PSU Lehigh Lehigh
      (need- (non- (need- (non- (need (non- (need (non-
      based) need based) need based) need based) need
            based)       based)       based)      based)
        General Eligibility
        Requirements for Federal Aid
   Submit a FAFSA form by deadline
   Have a high school diploma
   Be enrolled as a regular student in an eligible degree
    program at an eligible institution at least half-time
   US Citizen
   Valid Social Security number
   Make satisfactory academic progress
   Sign a certifying statement that funds will be used
    appropriately
   Not be in default of any previous educational loan
   Be registered with the Selective Service
    Federal Grants
   Federal
       Pell Grant
       Academic Competitiveness Grant (ACG) or
        SMART Grant
       Teach Grant
       GI Bill for post 9/11
       Yellow Ribbon Program
       American Opportunity Tax Credit
       Loan Forgiveness Program
    State & Institutional Grants
   State
       PHEAA Grant
       PHEAA Summer State Grant
       New Economy Technology Scholarship (NETS)
       Educational Assistance Program (Nat’l Guard)
       Robert C. Byrd Honors Scholarship
       Post-secondary Education Gratuity Program
   Private
       Institutional Grants
Work Study
   Employment on or off-campus
   Rate of pay determined by College’s
    Financial Aid Office
   Student gets a paycheck. Student must
    decide whether to put toward tuition or
    spend
   This amount is not calculated as
    student income in next year’s FAFSA
Student Loans
Federal Direct Stafford Loans
  Subsidized
  Unsubsidized
State
Alternative
  Direct PLUS
  Home Equity
           Examples of Financial Aid
Example #1                           School A           School B            School C              School D
Cost                                 $8,500              $18,000            $23,000               $34,000
-EFC                                   2,000                2,000              2,000                  2,000
---------------------------------------------------------------------------------------------------------------
= Need                               $6,500             $16,000             $21,000               $32,000


Pell Grant                           $2,360              $ 2,360            $ 2,360               $ 2,360
PHEAA Grant                          $1,300              $ 4,000            $ 4,300               $ 4,700
SEOG Grant                              -0-                 -0-                 -0-               $ 2,000
Scholarships                            -0-              $ 500              $ 2,000               $17,950
Perkins Loan                            -0-              $ 1,300            $ 2,000                    -0-
Stafford Loan – Sub                  $2,240              $ 3,500            $ 3,500               $ 2,990
Stafford Loan - Unsub                $1,260                 -0-                 -0-               $ 510
Work Study                              -0-              $ 1,200            $ 1,500               $ 2,000
---------------------------------------------------------------------------------------------------------------
Total Aid                            $7,760              $12,860            $15,660               $32,510

Remaining Need -                    $ 740               $ 5,140             $ 7,340               $ 1,490
(Unmet need + EFC)
    Applying for Financial Aid
   Institutional Applications
       Check institution’s publications/website
       Some deadlines will be different than FAFSA
   CSS Profile www.collegeboard.com
       Only available online
       $9 application fee, $16 for each college
       Only send to schools that require it
   FAFSA
       Online application is preferred
            Must get a pin for student and parents
            www.pin.ed.gov
       Paper will be available in limited quantities
       Can not file until after Jan 1
       Deadline is May 1, but recommend filing by February 15
FAFSA – After you apply
   PHEAA Status Notice
       Sent to all first time applicants
       Student/parent completes only the items
        requested – mandatory
   SAR (Student Aid Report)
       If done by paper, will be via paper; if done
        via web, will be sent via e-mail
       Review for accuracy
Summary



 Ability to pay vs. willingness to pay

				
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