Kelly Fox Financial Planning Coordinator Central Penn College 2019-2020 FINANCIAL AID Facts Kelly Fox Financial Planning Coordinator Central Penn College

Where to begin: FSA ID and Password Student and Parent both need to have an FSA ID and Password https://fsaid.ed.gov Create a Username and Password Need an email address and preferably a cell phone number Answer 4 challenge questions FSA will both email and text you a code to ensure your information is correct It takes 1-3 business days to validate your information with the Social Security Administration

FAFSA www.fafsa.gov or Download the MyStudentAid app NEVER PAY TO COMPLETE THE FAFSA!!!!!!! Complete the 2019-2020 FAFSA to begin school after July 1, 2019

What information is on the FAFSA? The FAFSA will use the parent who the student lives with 2017 tax information If there is joint custody, the parent who supports the child more then 50% Only if the following criteria are met, can a student be independent: 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

What information goes on the FAFSA? Student demographics School selection Students can list up to 10 schools! Dependency Status Parent Demographics List who is in the household that you support more then 50% Financial information

IRS DATA RETRIEVAL TOOL Have you already completed your IRS income tax return for 2017? What is your filing status? Did you file a Puerto Rican Return for 2017? LINK TO THE IRS Students will automatically link since they logged in with their FSA ID and Password Parents will need to enter their FSA ID and Password word to use the IRS Tool

BENEFITS of the IRS TOOL If your FAFSA is one of the randomly selected 30% of applications selected for verification through the federal government, you won’t be required to submit your tax transcripts from the IRS The financial aid is able to be processed quicker since the data is automatically assumed correct since it is from the IRS and not manually entered by the family You will not need to scan your entire tax return to find all the answers!

TRICKS of the TRADE! Answer EVERY question, even if you think it is insignificant Make sure you enter your high school name, city and state – this helps PHEAA process your eligibility faster When it asks about your first bachelor degree, the student DOES NOT have it yet, please mark that NO even if they are working on a bachelor’s degree Parents don’t count in the number in college, even if they are taking full time classes Read each question, even if FAFSA pre completed the question with $0 Students do NOT need to be accepted to college to submit the FAFSA

Grant amounts, 2018-2019 PELL Amounts EFC range from $0 – $5,401 PELL Award amount between $652 - $6,095 PHEAA Amounts $3771 is maximum PHEAA determines the amounts, not the schools FSEOG Each school has their own funding amounts Must be PELL Eligible Funds are typically limited so apply early

PHEAA May 1 deadline Additional paperwork to verify Pennsylvania Residency at www.aessuccess.org Make sure you list an email on the FAFSA you will be checking as this is how they communicate with families Student must successfully complete a percentage of their courses to receive this fund each year  A student may not take more than 50% of their classes in an online format and receive the grant 

Student Loans www.studentloans.gov Student signs in with STUDENT FSA ID and PASSWORD Entrance Counseling A “test” to make sure the student understands they are borrowing money and the ramifications of not paying federal student loans back Master Promissory Note Student signs to actually borrow the money Student does not have to be 18 to sign the Master Promissory Note

Student Loans Subsidized Unsubsidized - Based on financial need - Govt. pays interest on loan while student is enrolled Unsubsidized - Available to ALL students, regardless of need - Interest paid either quarterly or capitalized upon repayment Stafford amount capped by grade level - $5,500 freshmen year / $9,500 - $6,500 sophomore year / $10,500 - $7,500 junior/senior year / $12,500

Parent Loans Direct Plus Loan (Parent Loan for Undergraduate Students) - Loan in parent’s name - Interest rate cap - Repayment begins 60 days after final disbursement - Credit check involved - Borrow up to cost of attendance minus other financial aid student is receiving - Additional unsubsidized available to students whose parent(s) are denied on PLUS Loan due to poor credit

PARENT PLUS Loans www.studentloans.gov Parent logs in with PARENT FSA ID and Password Parent submits the PLUS Application The application is where you list if you want to defer payments while student is enrolled and the amount you want to borrow If approved, the Parent then submits the PLUS Master Promissory Note Approval or Denial is IMMEDIATE

Private Loans Student can borrow with any credit worthy cosigner, does not have to be a parent Watch interest rates Check fee structure Ask the college for guidance on who they recommend Usually requires additional documentation, W2’s, driver’s license Applications are processed within 24 hours NOTIFY the school if you plan to use a private loan so they can watch for it to come through and process

Work Study Financial aid based How are students paid? Typically, minimum wage with limited hours each week Part time jobs on campus

Scholarships Check the college website for how to apply and deadlines NEVER PAY FOR A SCHOLARSHIP SEARCH Apply early! Many scholarships can be combined AND MATCHED! Check with student and parent employer, guidance office, community

Award Letters List Grants, Scholarships and Loans Make sure you understand the total cost of the school when looking at the award letter Call the school with questions Comparing award letters helps families make educated decisions

Call the financial aid office !