Welcome to the PHEAA Financial Aid Presentation - The webinar will begin promptly at 5:30 pm
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Welcome to the PHEAA
Financial Aid
Presentation
The webinar will begin promptly at 5:30 pm
Financial Aid Presentation
Julie Fontana
PHEAA Higher Education Access Partner
Welcome Click on the Chat bubble to answer my questions I will be taking questions using the Q&A feature during and at the end of the presentation. I will also be using the Chat feature to ask questions of the participants. Creating affordable access to higher education.
Welcome
1 Tools and Resources
2 Applying for Financial Aid
3 Financial Aid Programs
What Happens after the Forms are
4 Filed
PHEAA.org/studentaidguide
5 Being a Smart Consumer
Creating affordable access to higher education.
• Access PHEAA.org
1 • Select Tools
PHEAA Online Ordering
• Select Online Ordering
2 • Select Parent
• Select FAN Toolkit
3 • Select FAFSA Toolkit
Tools and Resources
Higher Education Choices There are many different types of higher education opportunities to choose from including: • Colleges and Universities • Community Colleges • Hospital Schools of Nursing • Trade and Technical Schools
Educationplanner.org • Career Exploration • Expected Salaries by Location • Colleges & Academic Majors • Colleges Academic Standards • Self Assessments • Student & Parent Guidance • Links to My Next Move/ONet – National Database of Careers to see average wages for your career options Creating affordable access to higher education.
Affordability
Collegecost.ed.gov • Net Price Calculator Center • College Navigator • College Scorecard • College Affordability & Transparency List
MySmartBorrowing.org
• An interactive, online tool created
by PHEAA that helps students and
MySmartBorrowing.org
families:
• Estimate career salaries & college
tuition
• View the impact of savings on
overall cost
• Calculate loan repayment
• Avoid over borrowingApplying for Financial Aid
What Is Financial Aid? Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses. Types of Aid: • Merit scholarships (FREE Money) • Grants/scholarships (need-based FREE Money) • Self-help (earned through work or loans) Creating affordable access to higher education.
Funding Sources
Federal Government
State Government
School or College
ScholarshipsStart with the Forms
CSS Profile Form
FAFSA (Free Application for • Application fee
Federal Student Aid) required - $25 for
initial application and
• Required by all schools,
PHEAA, and some scholarship one school, $16 for
organizations each additional
school; fee waivers
• PA STATE GRANT FORM (SGF)
through PHEAA are available
» Required for first-year • Know what form each
students school requires and the
• Institutional Application deadlineFree Application for Federal Student Aid (FAFSA) –
StudentAid.gov
• The FAFSA is the primary
federal form for financial
assistance to attend
postsecondary school
• Must file a FAFSA each
year a student attends
school to be eligible
• File online – Fast, Secure,
SKIP LOGIC and
Built-in Edits
PDF at
StudentAid.gov myStudentAid app studentaid.gov or
1-800-433-3243.When to Apply
• October 1 of student’s Senior Year is the first
day that the FAFSA can be completed.
• Can list up to 10 schools
• Don’t have to be admitted to list the school on
the FAFSA
• Can go back and add schools
• 2021-22 FAFSA will use 2019 income and tax
information
• Families can use the IRS Data Retrieval Tool
(DRT).
The FAFSA must
be filed every
year
Creating affordable access to higher education.FAFSA – 7 Sections 1. Demographics 2. School Selection 3. Dependency Status 4. Parent Demographics 5. Financial Information 6. Sign and Submit 7. Confirmation
Create Your FSA ID Account The student applying for financial aid and one parent providing information on the FAFSA need to create an FSA ID account at StudentAid.gov/fsaid Create prior to completing the FAFSA Provides access to FAFSA and Federal Student Aid online systems Legal signature for student and parent Creating affordable access to higher education.
Does My Parent Need An FSA ID? • If you are a dependent student, then your parent will need an FSA ID in order to sign your FAFSA electronically • Not sure if you’re considered a dependent student for FAFSA, go to StudentAid.gov/dependency to find out • Your FSA ID is tied to your Social Security number. If the parent created an FSA ID for another child to sign the FAFSA they can use that IMPORTANT You and your parent must have different FSA IDs You must create your own FSA ID – it’s your electronic signature and you need to own it Your parent must create his or her own FSA ID You and your parent need to use your own email address and/or mobile number when creating an FSA ID ( you can’t use/share the same email address and mobile number) Creating affordable access to higher education.
Dependency questions • 24 or older on Jan 1st of 2021 • Married • Veteran (includes active duty personnel) • Working on graduate level degree • Emancipated minor in legal guardianship • Orphan, in foster care or ward of the court at anytime when student was age 13 or older • Have legal dependents other than spouse • Student deemed homeless by proper authority Creating affordable access to higher education.
Whose Information Goes on the FAFSA?
YES NO
• Married parents living together • Foster Parents
• Biological parents (not married) living • Legal Guardians
together • Grandparents
• Divorced or separated parents • Anyone else the student lives with
The parent the student lived with the most
over the past 12 months. If equal, then the
parent who provided more than 50% of
student’s financial support
• Stepparents – If part of student’s
household
• Adoptive parents
Creating affordable access to higher education.2021-2022 FAFSA Prep
Information Needed for FAFSA
Social Security Numbers Federal Tax Returns and 2019 Untaxed Income Checking and Savings
W-2’s (2019) Account Statement
Balances as of FAFSA Filing
Date
Investment Records Email Addresses Student & Parent
Federal Student Aid
Account (FSA ID)Confirmation Page & Link to the PA State Grant Form
Special Circumstances
If things change….contact the Financial Aid Office
• Divorced or separated parents
• Recent death or disability
• Unemployment
• Reduced income
• High Medical expenses not covered by insurance
Only a school can change a FAFSA related to special circumstances
Decisions are final and cannot be appealed to U.S. Department of
Education
Contact PHEAA for PA State Grant reconsideration 800-692-7392
Creating affordable access to higher education.Financial Aid Programs
Pennsylvania State Grant Based on Financial Need Must be enrolled in a program that is at least 2 years in length Enrolled at a PHEAA approved school Award amount determined from information on the FAFSA and in part by the cost of the school Creating affordable access to higher education.
2020-21 Out of State PA State Grant Awards
Exception – Allegany College of Maryland – PA campuses
Creating affordable access to higher education.Other State Programs
• State Work-Study
• Blind or Deaf Beneficiary Grant
• Educational Assistance Grant (EAP) – National Guard
• Chafee Education and Training Grant – co-administered with the PA
Department of Human Services
• Fostering Independence Tuition Education Waiver - NEW
• Pennsylvania National Guard Military Family Education Program
(MFEP) - NEW
• Postsecondary Educational Gratuity Program (PEGP)
• Partnerships for Access to Higher Education (PATH)
• Pennsylvania Targeted Industry Program (PA –TIP)
• Ready to Succeed Scholarship (RTSS)
For details, visit PHEAA.org.
Creating affordable access to higher education.Federal Pell Grant • Eligibility is based on financial need • Awarded to students with high financial need • Maximum award is $6,345 for 2020–21 Creating affordable access to higher education.
Federal Aid Programs
Federal Supplemental Educational Opportunity Grant
(FSEOG)
• Based on Financial Need
• $4,000 maximum
• Priority given to students receiving a Pell Grant
Federal Work Study (FWS)
• Based on financial need
• Answer “YES” to question on the FAFSA
• Earnings do not count as student income on FAFSA
• Work Study award is not deducted from the student’s bill
Creating affordable access to higher education.Scholarships
Where can I find Scholarships? College/University Scholarships Local and Regional Scholarships National Scholarships
Begin Searching Early
Fastweb.com
Collegeboard.org
Scholarshipamerica.org
Peerlift.org
Creating affordable access to higher education.Scholarships • Scholarships for Average Students • Community Service Scholarships • Video contests • Creativity • Ethnicity • Stuck at Prom – sponsored by Duct Tape • Unusual scholarships -Scholarship for students who come up with the best solution for a zombie apocalypse Creating affordable access to higher education.
Scholarship Tips Begin Searching Early – you don’t have to be a senior to search for scholarships Don’t ignore scholarships with smaller award amounts Write an essay that makes a strong impression Search for scholarships every year
Loans
Federal Direct Student Loan • Loan is in the student’s name • No credit check • No co-signer required • Fixed interest rate – 2.75% for 2020-21 • Rate for new loans reset every July 1st • 6 month grace period • 10 year standard repayment plan but other options available. Creating affordable access to higher education.
Subsidized vs. Unsubsidized Subsidized Direct Loans offered to students with financial need and the benefit is that the federal government pays the interest while the student is in school and during grace period. Unsubsidized Direct Loans offered to students who don’t have financial need; the interest accrues while student is in school. Creating affordable access to higher education.
Student Loan Borrowing Limits Creating affordable access to higher education.
Federal Direct PLUS Loan (parents & graduate students) • For parents of dependent undergraduate or graduate level students • In parent’s name for student costs • Rates set every July 1st for the life of that year’s loan; fees are deducted from disbursement • 5.30% fixed interest rate; 4.236% fees for 2020-21 • Can borrow up to the Cost of Attendance • MUST apply each year • No Debt-to-Income test, only lenient credit check • Can have an endorser (co-signer) • IF denied – FR & SO dependent student is eligible for an additional $4,000 unsubsidized loan – JR & SR are eligible for $5,000 unsubsidized loan Creating affordable access to higher education.
Federal Direct PLUS (Parent) • Repayment begins immediately - can defer repayment until 6 months after student graduates or drops below half-time enrollment • If defer payment – encouraged to make interest payments • Standard repayment is 10 years Creating affordable access to higher education.
Private / Alternative Loans
Private/Alternative Loans
• From private lenders or financial institutions
• In student’s name/co-signers usually required
• Can borrow up to the Cost of Attendance
• Based on credit scores and debt-to-income
• Fees, interest rates, loan amounts, and repayment provisions vary by
lender
• Repayment may be deferred until education completed
READ THE FINE PRINT
Creating affordable access to higher education.PHEAA.org/PAForward
PHEAA’s new PA Forward Student Loan Program is designed specifically for PA students and
families.
• In student’s name/co-signers usually required
• Can borrow up to the Cost of Attendance
• Approval based on credit scores and debt-to-income
PA Forward Student & Parent Loan:
• NO FEES, rate discounts at graduation, and ACH payment
• Lowest capped interest rates
• Refinance loan
• Multiple repayment options
• Online application
• Find more at PHEAA.org/PAForward
• Compare to find the right fitForms Are Filed – Now What?
What Happens Next?
FAFSA Schools/PHEAA Financial Aid
• Sent to Federal • Receive FAFSA Notifications
Processor results and • Schools send to
• Student Aid check for students offered
Report for eligibility for admission
student financial aid • Students compare
costs vs aidExpected Family Contribution (EFC) The EFC is a number derived from a federal formula which considers a family’s income, assets and other factors. In theory, the EFC is the amount a family can reasonably be expected to pay toward college expenses each year. In reality, it is not the amount a family is required to pay and it is rarely the amount a family actually pays.
EFC on Confirmation Page Creating affordable access to higher education. 58
Calculating Financial NEED
1. Using FAFSA calculations:
School Cost of attendance ........… $29,000
-EFC ……………………………………... - $ 4,000
FINANCIAL NEED ……………………...= $25,000
2.The school “awards” students based on financial need and available
funding (varies by school)
3. Financial Aid Notification is sent to the student
NOTE: EFC stays the same, costs vary and financial need varies by
school
Creating affordable access to higher education.Financial Aid Notification
Reviewing the Financial Aid Notification
After reviewing your notifications, students should be sure they know and understand the
following:
Which types of aid Are there any
How much of the
are based on need, conditions on the
financial aid is free
and which are free money? GPA
money?
based on merit? requirement?
Will financial aid Will eligibility
Will loans be
increase as tuition change from year
needed?
increases? to year?Cost of Attendance – FREE Money = Out of pocket costs
Ways to Pay out of Pocket Costs Scholarships – Private Savings – Family & student 529 Savings plans Tuition Payment Plan – through the school Employer Tuition Reimbursement Student earnings from work Federal Student Loans – Federal Gov’t Federal Parent Loans – Federal Gov’t Home Equity Loans Private/ Alternative Loans Creating affordable access to higher education. 63
Ways to Save
Dual Enrollment
Become a RA
Creating affordable access to higher education.
Apply for ScholarshipsReview and consider all options. Sometimes the best fit is not the first school choice.
What Can You Do Now? Creating affordable access to higher education. 66
Resources
• Studentaid.gov/fsaid – create FSA ID
• StudentAid.gov
» Questions about FAFSA or FSA ID
◦ 800.433.3243
• PHEAA.org
» Questions about the State Grant Form
◦ 800.692.7392
• Educationplanner.org
• Mysmartborrowing.org
• Collegecost.ed.govQ&A Creating affordable access to higher education.
Julie Fontana
jfontana@pheaa.org
814-322-2563
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