Goals of Financial Aid ACCESS to postsecondary education CHOICE among postsecondary institutions
Principles of Financial Aid Families will be treated equitably and consistently by the need-analysis formula. Student and parent have primary responsibility for funding postsecondary education to the extent they are able.
Role of the Financial Aid Office Determine final eligibility for need-based aid Package aid Send award letter which details: Types and amounts of aid Disbursement procedure Conditions of awards
How Aid is Awarded Need-based Financial need Largest source of gift aid funds Merit-Based Academic Ability Special Talent/Achievement Program of Study Family Background
Types of Aid Gift Aid Scholarships Grants Self-Help Loans Employment
Sources of Aid Federal State Institutional Private
Federal Financial Aid Programs Pell Grant Foundation for federal financial aid Must submit FAFSA EFC and COA determine eligibility $5,550 maximum 2012-13
Federal Financial Aid Programs Campus Based Aid SEOG Priority to Pell Grant recipients Grant maximum = $4,000/yr At MU – maximum is $800/yr At F&M – maximum is $1000/yr Work study Job on campus or in community Minimum wage or higher Perkins loan Loan maximum = $5,500/yr At MU – maximum is $3000/yr At F&M – maximum is $1000/yr Interest rate = 5% 9 month grace period before interest begins accruing and repayment begins
Federal Direct Student Loans Federal Direct Student Loans Lender is the Department of Education Subsidized - 3.4% Unsubsidized – 6.8%
Federal Stafford Loan Limits Year in College Base Limit Subsidized or Unsubsidized Loan Extra Unsubsidized Federal Stafford Loan Total Guaranteed and Awarded Amount for Academic Year Additional Unsubsidized Loan Total Potential Academic Year Limit 1 st year $3,500$2,000 $5,500 $4,000 1 $9,500 2 nd year $4,500$2,000 $6,500 $4,000 1 $10,500 3 rd year $5,500$2,000 $7,500 $5,000 1 $12,500 4 th year $5,500$2,000 $7,500 $5,000 1 $12,500 Certification $5,500$0 $5,500 $7,000 2 $12,500 Graduate $8,500$0 $8,500 $12,000 2 $20,500 Requirements to receive the additional loan: 1. Must be an Independent Student (and request the additional amount by contacting the Office of Financial Aid) or be a Dependent Student whose Parents were denied the PLUS Loan 2. Student must request the additional amount by contacting the Office of Financial Aid
Federal Stafford Loan Aggregate Limits Undergraduate Education (Dependent Student) $31,000 ($23,000 maximum Subsidized Loan) Undergraduate Education (Independent Student OR Dependent Students whose Parents were denied PLUS Loan) $57,500 ($23,000 maximum Subsidized Loan) Graduate / Professional Education $138,500 Year in College 1 st year0 – 29.9 2 nd year30 – 59.9 3 rd year60 – 89.9 4 th year90 +
Pennsylvania – Public 4-Year and Private Non-Profit 4-year – Average Debt: $25,219 – Ranking for PA: 6 (1 being the highest)
State Financial Aid PA State Grant Must be HS grad or have GED Must be a PA resident $4,000 maximum in PA (12-13) $3,375 maximum at Millersville $600 maximum CT, DE, MA, ME, RI, VT, WV, DC $400 maximum all other states except NY, NJ, MD
Institutional Aid Institutional Aid May be grants, scholarships, loans, employment or discounts May require institutional application and/or other supplemental financial aid forms Deadline dates are very important Each institution varies in resources available for awards, percentage of need met, & what formula they use Contact the Admissions or Financial Aid Office at each institution being considered
How to Apply FAFSA on the Web (Online application) www.fafsa.ed.gov FAFSA PIN Number (Online request for parents & students) www.pin.ed.gov - can be done now List email address on FAFSA Free Application for Federal Student Aid (Paper application) - NO LONGER AVAILABLE IN HIGH SCHOOLS OR IN COLLEGE FINANCIAL AID OFFICES IF YOU WISH TO HAVE A PAPER COPY, CONTACT FEDERAL STUDENT AID AT 1-800-433-3243
Applying For Aid Complete the Free Application for Federal Student Aid (FAFSA) Find out what other applications are required and the deadlines Complete all applications before the deadline and early if possible
Additional Forms Non-Custodial Parent Statement Business and Farm Supplement Institutional Aid Application CSS/Financial Aid Profile
Do not wait to be accepted for admissions before filing for aid Respond quickly to requests for additional information Explore every funding resource available to you Keep copies of all applications for your records Applying for Aid (Cont.)
Family Educational Rights and Privacy Act (FERPA) Release to a third party only with signed authorization. Students receiving financial aid may be required to complete a “Authorization to Release Information Form” permitting a school to be able to speak to anyone other than the student once s/he has enrolled (has begun classes). All financial information submitted is protected. Data is treated as confidential.
Special Circumstances Divorce or separation Must list custodial parent and his/her spouse Custodial parent is the parent with whom you reside more than 50% of the time If you live with each parent exactly equally, you must choose which parent to use on the FAFSA If you live with neither parent and on your own, you must still provide parental information (unless you qualify as an independent student based on the dependency status questions) – use parent with whom you most recently resided (& his/her spouse) Dependency Override Living with relatives who are not considered “legal guardians” – i.e. no court order or court order refers to “custody” (does not use the word “guardian” in the paperwork) Parents incarcerated or in other institutions Unable to locate parents
Professional Judgment Professional Judgment Reduction in income Extraordinary medical or dental expenses Unreimbursed child care expenses Disability expenses Tuition for elementary or secondary school Documentation/Forms are likely to be required – please contact the Financial Aid Office of the school you choose to attend for more information about what is needed for these items.
INDEPENDENT STATUS The following questions must be answered to determine student’s status – if student can answer “yes” to any of the following questions, s/he is independent Born before January 1, 1990 As of date FAFSA is completed, student is married At the beginning of 2013-2014 school year, working on master’s or doctorate degree Currently serving on active duty Veteran of U.S. Armed forces Have children or other dependents who receive more than 50% of their support from them (means that student must support him/herself 100% and the child > 50% – living at home at low cost or free of charge does NOT constitute supporting child > 50%
When you were age 13 or older, were both of your parents deceased, were you in foster care, or were you a dependent/ward of the court Answer “yes” if You had no living parent (biological or adoptive) when you were age 13 or older, even if you are now adopted You were in foster care when you were age 13 or older, even if you are no longer in foster care as of today You were a dependent/ward of the court when you were age 13 or older, even if you are no longer a dependent/ward of the court as of today INDEPENDENT STATUS PROOF OF DECEASED PARENTS, FOSTER CARE, OR DEPENDENT / WARD OF COURT MAY BE REQUIRED BY FINANCIAL AID OFFICE
As of today, are you an emancipated minor or in legal guardianship as determined by a court in your state of legal residence? Answer “yes” if you can provide a copy of a court’s decision that you are an emancipated minor or are in legal guardianship (court documents must use the word “guardian.”) The court must be located in your state of legal residence. If the court order is no longer in effect, answer “no.” INDEPENDENT STATUS PROOF OF COURT DECISION MAY BE REQUIRED BY FINANCIAL AID OFFICE
At any time on or after July 1, 2012, did: Your high school or school district homeless liaison determine that you were an unaccompanied youth who was homeless? The director of an emergency shelter program funded by the U.S. Department of Housing and Urban Development determine that you were an unaccompanied youth who was homeless? The director of a runaway or homeless youth basic center or transitional living program determine that you were an unaccompanied youth who was homeless or were self-supporting and at risk of being homeless? INDEPENDENT STATUS
Answer “YES” if you received a determination at any time on or after July 1, 2009, that you were an unaccompanied youth who was homeless or at risk of being homeless “Homeless” means lacking fixed, regular and adequate housing, which includes living in shelters, motels or cars, or temporarily living with other people because you had nowhere else to go. “Unaccompanied” means you are not living in the physical custody of your parent or guardian. “Youth” means you are 21 years of age or younger or you are still enrolled in high school as of the day you sign this application. Answer “NO” if you are not homeless, at risk of being homeless or if you do not have a determination. You should contact your financial aid office for assistance if you do not have a determination but believe you are an unaccompanied youth who is homeless or are an unaccompanied youth providing for your own living expenses who is at risk of being homeless. PROOF OF DETERMINATION MAY BE REQUIRED BY FINANCIAL AID OFFICE
TIPS on Completing FAFSA Be sure FAFSA is signed with PIN or using Signature Page If you receive a box that indicates you may skip Asset information – do NOT skip it – provide the information – many times a question is answered incorrectly which gives you this box and the asset information is actually necessary to complete the application Meet the earliest deadline of your school – (the FAFSA cannot be completed prior to January 1). Please check our website for information regarding more tips on completing the FAFSA.
Notification Process Student Aid Report (SAR or eSAR) Correction Process PHEAA Status Notice All first time applicants are required to provide additional information to PHEAA regarding some items not listed on the FAFSA, such as high school and graduation date, among others. Schools typically begin sending out financial aid statements to admitted freshman students usually around mid-March.
Verification What is it? A review process where the accuracy of the data reported on the FAFSA is checked against the source documents. What forms do I need to send? Common documents requested include: -2012 U.S. Tax Transcripts -Verification Worksheets -W-2 Forms Who reviews the information? Review performed by the Financial Aid Administrator
Student Contribution (SC) + Parent Contribution (PC) = E F C Expected Family Contribution One common misconception people have about the EFC is that it is the amount of the outstanding balance to be paid to the university for the year. The EFC is actually a number determined by a formula using the information supplied on the FAFSA. It is used by financial aid professionals to determine amounts of eligibility for need- based financial aid programs.
Cost of Attendance Direct Costs (billable) Tuition Fees Room Board Indirect Costs (non-billable) Personal Expenses Transportation Books and Supplies
Millersville University Cost of Education (per year 20012-2013) Educational Expense Items PA Resident Students Non-PA Resident Students Tuition & Fees$ 8,242$ 17,884 Room$ 5,378 Board (meal plan)$ 3,856 Tuition Tech Fee$ 358$ 542 TOTAL BILLABLE CHARGES $17,834$27,660 Books & Supplies$ 1,000 Personal Expenses$ 1,808$ 1,896 Transportation$ 800 TOTAL COSTS$21,442$ 31,356
Calculating Financial Need Cost of Attendance $21,442 Less EFC (3,174) (determined from information provided on the FAFSA) Equals NEED $18,268 *Please note, the EFC listed here is for sample purposes only
Will All My Need Be Met? Financial need $18,268 Minus any aid (8,588) (in the form of grants, scholarships, work-study, subsidized loans) Equals remaining need $ 9,680 *Please note, the aid amount listed here is for sample purposes only
Comparing Aid Packages Comparing Aid Packages School ASchool BSchool C Cost$12,500$18,500$42,500 EFC3000 Need$9,500$15,500$35,500 Package #1 $7,000 grants $5,500 loans Total = $12,500 $9,100 grants $9,400 loans Total = $18,500 $4,500 grants $26,500 scholarships $9,500 loans $2,000 work study Total = $35,500 Package #3 $1,000 grants $3,500 loans $1,000 work study Total = $5,500 $6,000 grants $4,000 loans Total = $10,000 $11,200 grants $9,000 loans $1,500 work study Total = $21,700 Schools will have varying amounts of money available to be awarded in scholarships. Federal grants and federal loans will most often be the same at each school. The EFC will be the same for each school.
College Expenses The actual outstanding balance and the EFC may not match. You will be responsible for paying the outstanding balance of the bill. To calculate how much you will owe: School charges (tuition, fees, room, board) - Financial Aid (grants, loans, waivers) Outstanding Balance It is a good idea to begin planning early for how much you will owe – do not wait until you receive the bill – many times that does not allow the Financial Aid Office enough time to process any additional aid. Most schools will have estimated or actual costs available as early as February
Satisfactory Academic Progress (SAP) Satisfactory Academic Progress (SAP) In order to maintain financial aid eligibility, a student must make Satisfactory Academic Progress (SAP) Federal (also known as Title IV) Aid, includes: Check with the Office of Financial Aid for their policy on SAP for Federal Aid. State Aid – includes PA State Grant A full-time student (12+ cr per semester) must pass 24 new credits A part-time student (6-11 cr per semester) must pass 12 new credits Stafford Loan Perkins Loan PLUS Loan Pell Grant SEOG Work-study Academic Competitiveness Grant National SMART Grant Graduate PLUS Loan
Alternatives for Meeting Need Family Savings Institution or private payment plans – Federal Direct Parent PLUS loans Loan in parent’s name (biological, adoptive, or step-parent) Based on credit Fixed Interest rate = 7.9% Loans processed after 7/1/08 will automatically be deferred – only the interest will need to be paid until 6 months after student graduates or drops below half-time status. You can choose to make payments on principle amount by contacting the lender. Denial of the PLUS loan based on a credit check means the student can have additional Federal Stafford Loans
Alternatives for Meeting Need, continued Alternative loans Loans in student’s name, but usually requires a credible co-signer Money from private banks Variable interest rates and terms Check with aid office for a listing Payments for principle are deferred generally until 6 months after student graduates or drops below half-time status (continue to pay interest on loan) Home equity loans
Information on the Internet Information on the Internet SEE YELLOW WEB HANDOUT ASSISTANCE AND ADVICE Federal Student Aid-U.S. Dept of Ed.’s comprehensive website http://www.studentaidontheweb.gov Interactive calculators: EFC Estimator, College Cost Estimator, Loan Payment Calculator, and Savings Plan Designer. http://www.finaid.org/calculators Ask the Aid Advisor – Over 100 Financial Aid Administrators available to answer your questions http://www.finaid.org/questions/askadvisor.phtml
Higher Education Tax Benefits Hope Scholarship Lifetime Learning Credit Student loan interest deductibility Tuition and Fees Deduction Coverdell Education Savings Accounts (ESA), previously referred to as Education IRAs 529 Plans
Scholarship Scams An FTC pamphlet warns be wary of companies that: Have FL or CA addresses, residential offices or PO boxes without Street information Have names that sound like federal agencies Make overblown claims such as “Everybody’s eligible!” and “Guaranteed success!” Charge to complete the FAFSA and request bank account or credit card information
Scholarship Scams (Cont.) What should you do if you suspect a scam? Consult a H.S. counselor or Financial Aid Office Save all forms and details about the company and services including names of individuals Report suspected scammer to any of the following: National Fraud Information Center www.fraud.org Better Business Bureau www.bbb.org
Timeline For Making College Happen -- Financially! FALL SENIOR YEAR Continue looking for outside scholarships Talk to the financial aid administrators at the colleges being considered WINTER SENIOR YEAR Parents and students complete federal tax returns ASAP after January 1st Complete the FAFSA anytime after January 1 st – be sure to meet the earliest deadline of the schools being considered Submit all financial aid applications and required documentation to each college
Timeline (cont.) SPRING SENIOR YEAR Begin receiving financial aid packages Review and Compare packages Inform financial aid offices of any unusual circumstances which may have arisen in your family Develop a plan for how to pay the “bottom line” (costs that are not covered by financial aid) SUMMER BEFORE COLLEGE Inquire about on and off campus jobs Complete loan applications and promissory notes Apply for PLUS/Alternative Loans if you plan to use either to help cover your outstanding balance Keep working and saving (especially for 1 st semester books) Find out what your roommate is bringing for the room so you don’t “double buy”
Financial Aid Tips Financial Aid Tips Students: Be involved in the financial aid process – this is your education! Every student should file a FAFSA for his/her freshman year. Meet all deadlines and respond promptly to requests for additional information. Stay organized. Take the time to explore and apply for outside scholarships and other funding sources.
Financial Aid Tips (cont.) Financial Aid Tips (cont.) See the financial aid office with any unusual financial circumstances. Don’t forget that you will need to complete new aid applications for each academic year. (Every time you file taxes, file your FAFSA) Make sure you know how you’re going to pay for your out- of-pocket expenses (costs not covered by aid). Above all – ASK QUESTIONS!!! This process can seem confusing and overwhelming. Anytime you are uncertain about anything – ASK!!!
Thank You for Coming Best wishes for a successful academic career!
Dwight G. Horsey Millersville University 717.872.3026 www.millersville.edu/~finaid Dwight.Horsey@millersville.edu Questions for Our Presenters