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The Essentials and then
     Financial Aid

   Financial Aid = Assistance for students
    to fund their education in the form of:
         Grants – money that does not have to be repaid
         Scholarships – money that does not have to be

         Loans – money that does need to be repaid
         Employment – on or off campus job
  Before you begin….
 Don’t assume that more expensive schools will
  necessarily cost you more! Financial aid may allow
  you to afford a school you previously did not consider
 Involve your child in the process
 Discuss your ability to pay for college with your child
  before the admission deposit deadline
 Look at this as a long term investment and not just a
  one year expense
        Merit-Based Aid
        vs. Need-Based Aid
 Merit-Based Aid = aid given to students strictly on
  the basis of merit. Does not have to be repaid,
  usually renewable from year to year.
  May be based on:
     Academic record
     Special characteristics
     Skills or talents
     Involvement in school or community
 Need-Based Aid = aid awarded to students on the
  basis of financial need. Re-evaluated each year
  as financial situations of a family may change.
     Filing for Aid
Some forms you may be asked to complete:
 Free Application For Federal Student Aid (FAFSA)
 Institutional Application for Aid

 U.S. or Puerto Rico Tax Return & W-2’s

 College Board PROFILE*

 Non-custodial parent information

 Business or Farm Supplement

 Other forms as required by the school
(For certain PROFILE schools you may be requested to submit
   tax or other institutional forms through IDOC)
    What Is The FAFSA?
 Free Application For Federal Student Aid (FAFSA)
 Application for federal and state aid
  (may be application for college aid as well,
  depending upon the school)
      File one FAFSA per year per student (not
       one per college)
      List up to six colleges

       Title IV Code or school name; schools
       receive info. electronically
      Need to file a FAFSA each year you want to
       receive aid
    Whose Information
    is on the FAFSA?

 Dependent:
parental & student financial data

 Independent:
student & spouse financial data
     Conditions to determine
 Student must meet one of following criteria:
   24 years of age
   Veteran of the U.S. Armed Forces

   Enrolled in a graduate or professional program

   Married

   Orphan or ward of the court until age 18

   Have legal dependents that student provides at least 50%
    support for
   At age 13 or older were both parents deceased, was the
    student in foster care or a dependent/ward of the court
   Emancipated Minor as determined by a court

   Determination that student was homeless by a recognized
        Whose Information
        is on the FAFSA?
If the parents are divorced or separated….
 When filing FAFSA, financial information of
    parent that student resides with for more than
    half of the year should be provided (if equal
    time, information of the parent that provides
    the most financial support)
    If the custodial parent is remarried…
 The financial data of new spouse must be
    included on the FAFSA
         How/When to
         File the FAFSA?
How To Complete the FAFSA:
   On-line at
        Complete as soon as possible after January 1, or file
        electronically at beginning January 1
        prior to the fall for which student seeks aid

        assist in the completion of the on-line FAFSA

       FAFSA is free – do not use any site that charges a fee
        to complete the FAFSA
FAFSA On The Web
   If filing over the Internet, 2 choices:
       Parent and student mail signature page in or
       The Parent and Student both need to apply for PIN # at
       PIN serves as e-signature
       PIN will be mailed or e-mailed to person who requested the
   Use PIN to submit information and make corrections
    over Internet at
   Can request a PIN at any time – SUGGEST YOU DO
    SO NOW!
   If you have a PIN from before you may use that PIN
Filing The FAFSA
   Do not wait to be accepted to the school
    to complete the FAFSA
   Based on prior calendar year tax
   May use estimated income and taxes
   PA residents will use the FAFSA for state
    grant consideration; state will follow up
    with an additional form once FAFSA is
 Financial Need

        Cost of Attendance
-Expected Family Contribution (EFC)
          Financial Need
Financial Need

   Cost of Attendance includes:

     Tuition & Fees
     Room & board
     Books & supplies
     Personal expenses
     Transportation allowance
    What Is The EFC?
   Basis of financial aid package
   EFC is determined by a federal formula
    that calculates need via the FAFSA
   EFC & Financial Need are guidelines used
    by schools to determine aid package
   EFC not necessarily = to out-of-pocket cost
    of family
  How Is The EFC Calculated?

Primary Factors Looked At:
        Taxable Income: AGI (wages earned+interest
         dividends+other taxable income)
        Untaxed income & benefits
        Number in family
        Number of dependent children in college
        Assets
         (FAFSA does not ask for home value or value of retirement
         funds but school or PROFILE may ask for this information)
    Learn more about how the
    EFC is calculated
Utilize a Financial Aid Calculator to familiarize
yourself with more details and to get an early
estimate of your EFC

• Go to and click on tab “For
Parents” and select Financial Aid Calculator from the
options on the left, then select EFC Calculator and
insert your personal information
• Go to and click on Calculators and
select Needs Analysis
       Institutional Methodology
Some schools may require CSS Profile Form
   Primarily private schools

   Collects supplemental data (i.e.-home equity, financial
     data of non-custodial parent, value of retirement plans,
   Calculates IM (Institutional Methodology)

   Basis for awarding institutional need-based aid only

   Register to complete form at

   Fee $25 for application and 1st school report; $16 for
     each additional school
Help! Sources of Aid
     Federal

     State

     The College/University

     Outside Organizations
         Civic organizations (ex.-local Rotary
          Club), parent’s employer, high school
  Federal Aid
 Must:
   Be a U.S. citizen or eligible non-citizen

   Have HS diploma or equivalent

   Be matriculating in a degree/certificate
    program at accredited Title IV school
   Be registered with Selective Service if
    a male between ages of 18 and 25
   Free of drug possession or sale
  Federal Aid
 Pell Grant (need-based):
   $5,310 max/year for 2009-2010 year
  Pell Grant recipients might also be eligible for:
     Academic Competitiveness Grant (ACG)
        $750 1st year; $1,300 2nd year for students
        who took rigorous HS curriculum
     National Science and Mathematics
        Access to Retain Talent Grant (SMART)
        $4,000 for 3rd and 4th year students in
        physical, life or computer sciences, math,
        technology, engineering or critical foreign
    Federal Campus-Based Aid

 SEOG Grant-exceptional need -
  $100 - $4,000/year (typically have to receive Pell)
 Perkins Loan-exceptional need -
  $100 - 5,500/year; 5% interest rate
 Federal Work Study

 Colleges have set allocations for campus based funds
  (student may receive award from one school & not
        Federal Stafford Loan
   In student’s name/no credit check
   Available to all students, regardless of need
   Repayment begins 6 months following graduation or withdrawal
   Competitive interest rate
       5.6% effective July 1, 2009 for subsidized;
        6.8% for unsubsidized
       Interest rate reset each July 1st
       Amount varies by class
        $3,500 for freshman; $4,500 for second year students
        $5,500 for third year and beyond (undergrads)
    Additional $2,000 unsubsidized in addition to the above amount is effective May,
Federal PLUS Loan

   Loan in parent’s name
   8.5% Interest Rate
   Repayment begins 60 days after 2nd
    disbursement; deferments are now available
   Credit check involved
   Borrow up to cost of attendance minus other
    financial aid student is receiving
   Add’l. unsub available to students whose
    parent(s) are denied on PLUS Loan due to poor

 Pennsylvania State Grant (for PA Residents): $4,700
  max/year for 2009-10 for students attending a PA school;
  however funding may not allow a max grant of $4,700
        Eligibility based on need and family’s unique circumstances
        Max PHEAA Grant that can transfer out-of-state, $600, to: CT, DE,
         MA, ME, OH, RI, VT, DC, WV
        $400 maximum transfers to other states, except NJ, MD and NY--
         $0 transfers there (some exceptions)
        Student must file FAFSA by May 1 for upcoming fall term
        PHEAA sends student status notice beginning mid-May; student
         must complete and return to PHEAA
   Check for other grant programs
   Colleges may offer significant amount of funds to
    assist students
   Factors that may influence institutional aid,
    particularly merit-based aid:
      Academics           Athletic Ability*
      SAT’s               Geographic Diversity
      AP Courses          Legacy (child of alumni
      Activities          Academic Track
      Talent              H.S. Attended
     Class Rank

*Athletic awards only offered by NCAA Division I and Division
   II schools only.

Investigate Sources of Aid
     Determine deadlines and criteria for eligibility
      for each school
     College may be the largest funding source
     Complete college/university application for aid
         Private schools may require CSS PROFILE
    Outside Sources
   Private sources of scholarship funds include:
     Service/Fraternal Organizations

     Employers/Business
     Churches/Religious Groups

   Sources of Information
     Internet:;;
     Books: Peterson’s Guide, Barron’s Guide to
      Colleges, “Don’t Miss Out” (Octameron
     Guidance Office Computer Programs
      Comparing Aid Offers
                      School A   School B   School C   School D

  COST                $8500      $18000     $23000     $45000
 - EFC                $2000      $2000      $2000      $2000
  NEED                $6500      $16000     $21000     $43000

PELL Grant            $2360      $2360      $2360      $2360
SEOG Grant            $0         $0         $2000      $3000
PA State Grant        $1900      $4000      $4700      $4700
Perkins Loan          $0         $2000      $2000      $3000
Work Study            $0         $1000      $1500      $2500
Stafford Loan -       $2240      $3500      $3500      $3500
Institutional Grant   $0         $0         $4500      $20000

Unmet Need            $0         $3140      $440       $3940
      Comparing Aid Offers
                      School A   School B   School C   School D
   COST               $8500      $18000     $23000     $45000
 - EFC                $12000     $12000     $12000     $12000
   NEED               $0         $6000      $11000     $33000

PELL Grant            $0         $0         $0         $0
SEOG Grant            $0         $0         $0         $0
PA State Grant        $0         $600       $1100      $1400
Perkins Loan          $0         $0         $2000      $2000
Work Study            $0         $0         $1500      $2500
Stafford Loan -       $0         $3500      $3500      $3500
Institutional Grant   $0         $1900      $2000      $21000

Unmet Need            $0         $0         $900       $2600
    Comparing Aid Offers

 Will the aid package change if outside scholarships are
 What factors can cause changes to my eligibility in the
  future? (i.e.- how will my package change if there is a
  change in the number in college, what if my income
 Is there room for movement in my financial aid award?
  Can I appeal the award?
    Comparing Aid Offers

 Look at the Bottom line for each school carefully
  comparing grants, loans and work opportunities as well
  as merit versus need based programs
 Consider possible changes in your family situation over
  the next four years & consider how that can affect your
  ability to pay not only in the next four years but over the
  years all your children are in college
     Don’t Forget!
 Research Outside Scholarships
 Complete the FAFSA form as soon as possible after January
  1 of senior year
 Remember to keep copies of every financial aid form that
  you complete!
 Check with each college/university to see what additional
  forms they require
 Don’t be afraid to call the financial aid office at the school(s)
  you are interested in!

                       GOOD LUCK!

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